Alteryx (NYSE:AYX) shares traded 22% down in pre-open Tuesday after the company offered a softer-than-expected outlook for the third quarter and full year.
Alteryx reported an adjusted loss per share of $0.37 on revenue of $188 million, beating the consensus for a loss per share of $0.67 on revenue of $182.1M.
"Customers are demonstrating a strong commitment to Alteryx as they face an increasingly dynamic macro environment, as evidenced by robust and consistent gross retention and renewal rates in Q2," said Mark Anderson, CEO of Alteryx. "As we look to the second half of 2023, we are reinforcing our commitment to improving profitability, while also sustaining a high pace of platform innovation with Alteryx AiDIN, our generative AI and machine learning technologies, as well as cloud-connected technologies."
However, the company sees Q3 revenue at $210M, widely missing the analyst target of $233.1M. Similarly, full-year guidance is based on EPS of $0.67 on revenue of $935M, worse than the consensus for earnings of $0.68 per share on revenue of $984M.
In response to the guidance, Piper Sandler analysts cut the rating to Neutral from Overweight with a price target slashed by more than 50% to $30 per share.
“We are moving to the sidelines until there is increased visibility into a growth reacceleration,” the analysts said.
Loop Capital analysts also downgraded the stock. Wedbush analysts cut the price target by $15 to $45 per share.
“The company is taking a more cautious stance this quarter and is cutting the FY23E ARR guide, and also guiding below the Street for Q3’23E ARR,” they said.