COVID-19 presented a kind of global disruption that was least expected by businesses and world leaders. And the pandemic was worst hit by companies that ignored the repeated hints that nature offered to quickly digitize operations, or succumb.
Data analytics offers the corrective mechanism to companies that survive this crisis, which presents the long-term relevance of Alteryx (NYSE: AYX). In an interview with AlphaStreet, CFO Kevin Rubin explained why data analytics is critical in challenging situations like the one we are in right now.
“The coronavirus pandemic created lots of questions that needed fast answers – and Alteryx was a way for them to get those answers quickly. Our belief has long been that analytics only becomes more important in downturns because the questions don’t go away – but there are often fewer resources to provide answers.”
And that is probably why a quarter of the Annual Recurring Revenue (ARR) in the first three months of 2020 came from clients in industries that were impacted by the pandemic, including travel and hospitality, the oil and gas, as well as the healthcare sector.
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While hospitals used Alteryx solutions to analyze ICU capacity, retail companies used it for workforce planning and cash-flow management. Meanwhile, government agencies are using the platform to determine how to distribute aid appropriately, the executive said.
Customer additions
The Irvine, California-based company had added 356 net new customers in the recently ended quarter, including 12 of the Global 2000. The company currently has over 6,400 customers globally, which consists of 37% of the Global 2000.
When asked about the decline in year-over-year customer growth since fiscal 2016, The CFO stressed that the company’s focus is on adding high-quality net new logos, rather than the absolute number. Rubin said:
“Our net expansion within the G2K is quite a bit stronger than the corporate average – Q1 ’20 was 140%. We believe that there are 10-12 million data workers at G2K companies worldwide, and we have low single-digit penetration into that population, even though we count 37% of the Global 2000 as customers today.”
Events postponed
COVID-19 did strike Alteryx in a way that it’s analytics conferences that were scheduled to take place in the US and Europe this year had to be postponed to 2021. While CEO Dean Stoecker, during the post-earnings conference call, maintained that these are not lead generation resources, the events did allow Alteryx customers and prospective clients to get together and interact.
Echoing similar sentiments as Stoecker, Rubin stated that most of their customers come through word-of-the-mouth publicity and by trying out the trial versions. He said:
“While in-person events are great for existing customers to network and learn from each other, the largest gathering of Alteryx customers happens online at our community site.”
He added that Alteryx has been hosting webinars focused on specific verticals, use cases, or regions, which are open to prospective and existing customers.
On newly-launched ADAPT
Earlier this month, the company had launched Advancing Data and Analytics Potential Together (ADAPT) as part of its Alteryx for Good initiative. The program offers unemployed workers around the globe 125 hours of data analytics training via interactive lessons, videos, webinars and podcasts.
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While the CFO did not comment on its lead generation benefits, it can be safely assumed to help the firm in the long run. In the words of Rubin:
“Alteryx has long believed in doing well by doing good, as evidenced by its long-standing Alteryx For Good program which provides free software and training for students, academics, and non-profits. We are extremely fortunate to not only support the current initiatives but also expand them via the ADAPT program.”
For more insights about the firm, read Alteryx’s Q1 earnings call transcript here.