Applications & OS News
Alteryx President Hansen: Customers’ Need For Data Analytics Outweighs Economic Uncertainties
CRN speaks with Paula Hansen, president and chief revenue officer at analytics automation technology developer Alteryx, about the company’s recent financial performance, its efforts to expand channel sales, and the economic outlook. Here’s what she had to say.
What were the highlights and the key takeaways of the second quarter?
By all accounts, it was a fantastic quarter for us at Alteryx. We exceeded expectations across the board. We landed at $727 million of ARR [annual recurring revenue], which was up 33 percent year on year. And then we grew revenues 50 percent year on year and then also overachieved on the bottom line as well.
Across the board [it was a] really, really strong performance for Alteryx and we‘re feeling as though these results are a validation of both the market opportunity for the democratization of data and analytics and the role that plays in customers’ investment agenda.
And then we think it also validates our go-to-market strategy, which I‘ve personally been really focused on this last year-and-a-half, and extra quarter if you will, since I joined the company. We’re thrilled with the results and look forward to the second half.
What were the drivers behind the 50 percent year-over-year revenue increase?
There‘s a couple of things in there. We had strength in contract term for our customers. When we have contract term strength, it contributes to the ARR because we take a portion upfront.
When we do contracts with our customers, they‘re of varying term lengths, one year [and] three years are the most common terms of the contract. Right now, we see contract terms right around one and a half years across the customer base. And because our subscription business today is largely on premise – the vast majority of our software is on premise – we recognize it from a revenue perspective as we take roughly 50 percent of that contract revenue upfront and then [pro-rate] the rest of it over the remainder of the term of the contract. So if a contract term is longer than we expected or guided into, then that 50 percent upfront recognition of revenue [is] higher as well.