Alteryx Investor Presentation | Interactive
Presentation | 43 pages
Investor Presentation Q4
Safe Harbor This presentation includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by the use of terminology such as “believe,” “may,” “will,” “intend,” “expect,” “plan,” “anticipate,” “estimate,” “potential,” or “continue,” or other comparable terminology. All statements other than statements of historical fact could be deemed forward-looking, including any projections of product availability, growth and financial metrics and any statements regarding product roadmaps, strategies, plans or use cases. Although Alteryx believes that the expectations reflected in any of these forward-looking statements are reasonable, these expectations or any of the forward-looking statements could prove to be incorrect, and actual results or outcomes could differ materially from those projected or assumed in the forward-looking statements, including, but not limited to, as a result of: the impact to the economy, our customers and our business due to the COVID-19 pandemic; our ability to manage our growth and the investments made to grow our business effectively; our ability to retain and expand our talent base, particularly our sales force and software engineers, and increase their productivity; our history of losses; our dependence on our software platform for substantially all of our revenue; our ability to attract new customers and expand sales to and retain existing customers; our ability to develop and release product and service enhancements and new products and services to respond to rapid technological change in a timely and cost-effective manner; intense and increasing competition in our market; the rate of growth in the market for analytics products and services; our ability to establish and maintain successful relationships with our channel partners; our dependence on technology and data licensed to us by third parties; risks associated with our international operations; our ability to develop, maintain, and enhance our brand and reputation cost effectively; litigation and related costs; security breaches; and other general market, political, economic and business conditions. Additionally, these forward-looking statements involve risk, uncertainties and assumptions, including those related to the impact of COVID-19 on our business and global economic conditions. Many of these assumptions relate to matters that are beyond our control and changing rapidly, including, but not limited to, the timeframes for and severity of the impact of COVID-19 on our customers’ purchasing decisions and the length of our sales cycles, particularly for customers in certain industries highly affected by COVID-19. Alteryx’s future financial condition and results of operations, as well as any forward-looking statements, are subject to risks and uncertainties, including but not limited to the factors set forth above, in Alteryx’s press releases, public statements and/or filings with the Securities and Exchange Commission, especially the “Risk Factors” section of Alteryx’s most recent Annual Report on Form 10-K. These documents and others containing important disclosures are available at www.sec.gov or in the “Investors” section of Alteryx’s website at www.alteryx.com. All forward-looking statements are made as of the date of this presentation and Alteryx assumes no obligation to update any such forward-looking statements. This presentation also contains estimates and other statistical data made by independent parties and by us relating to market size and growth and other data about our industry. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. In addition, projections, assumptions, and estimates of our future performance and the future performance of the markets in which we operate are necessarily subject to a high degree of uncertainty and risk. In addition to the financials presented in accordance with U.S. generally accepted accounting principles (GAAP), this presentation includes certain non-GAAP financial measures. The non-GAAP financial measures have limitations as analytical tools and you should not consider them in isolation or as a substitute for the most directly comparable financial measures prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. Other companies, including companies in our industry, may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. We urge you to review the reconciliation of our non-GAAP financial measures to the most directly comparable GAAP financial measures set forth in the Appendix, and not to rely on any single financial measure to evaluate our business. Any unreleased services or features referenced in this or other presentations, press releases or public statements are only intended to outline Alteryx’s general product direction. They are intended for information purposes only and may not be incorporated into any contract. This is not a commitment to deliver any material, code, or functionality (which may not be released on time or at all) and customers should not rely upon this presentation or any such statements to make purchasing decisions. The development, release, and timing of any features or functionality described for Alteryx’s products remains at the sole discretion of Alteryx. Alteryx, the Alteryx logo, Alteryx Designer, Alteryx Server, Alteryx Analytics Gallery, Alteryx Connect, Alteryx Promote, Alteryx Analytic Process Automation, Alteryx Analytics Hub, Alteryx Intelligence Suite, Feature Labs, ClearStory Data, Semanta, Yhat, Alteryx ANZ and other registered or common law trade names, trademarks, or service marks of ours appearing in this presentation are our property. The presentation contains additional trade names, trademarks, and service marks of other companies, including, but not limited to, our customers, technology partners, and competitors, that are the property of their respective owners. We do not intend our use or display of other companies' trade names, trademarks, or service marks to imply a relationship with, or endorsement or sponsorship of us by, these other companies. Confidential │ ©2021 Alteryx, Inc. 2
Alteryx Quick Facts Founded in 1997, headquartered in Irvine, California IPO 19 March 24, 2017 Offices worldwide $495M ~1,500 FY 2020 revenue Employees ~7,100 AYX Customers NYSE Ticker symbol Confidential │ ©2021 Alteryx, Inc. 3
Investment Highlights A leader in data Large and Differentiated Proven Powerful unit science/analytics expanding technology management economics market platform team underpin strong opportunity financial model Confidential │ ©2021 Alteryx, Inc. 4
Today’s Analyst Tools and Processes Are Insufficient Analysts need help with data analytics, but few are satisfied with the results 62% 69% 81% Have to depend on others Are not satisfied with the Are not satisfied with the within their organization to quality of the final output overall speed of the perform at least some steps analytic process in the analytic process Source: Harvard Business Review Analytic Services, Uncovering the Keys to Becoming Truly Analytics-Driven, May 8, 2018. Confidential │ ©2021 Alteryx, Inc. 5
Analytic Waste 6 8 26 Billion Hours Hours Hours per year spent per week wasted working per week wasted repeating working in spreadsheets in spreadsheets the same data tasks $60 Billion per year wasted on analysts doing repetitive manual work in spreadsheets Source: IDC: The State of Self-Service Data Preparation and Analysis Using Spreadsheets. Confidential │ ©2021 Alteryx, Inc. 6
The Average Analytical Process 1011001010101010110001010101001010100101010 101100101010101011000101010100101010010101001101100101010 0110110010101010101100010101010010101010010 101011000101010100101010100101001101100101010101011000101 1001101100101010101011000101010100101010100 010100101010100101001101100101010101011000101010110101010 1010011011001010101010110001010101101010101 100101001101100101010101011000101010100101010100101001101 0010100110110010101010101100010101010010101 100101010101011000101010110101010100101001101100101010101 0100101001101100101010101011000101010110101 011000101010100101010100101001101100101010101011000101010 0101001010011011001010101010110001010101001 110101010100101001101100101010101011000101010100101010100 0101010010100110110010101010101100010101011 101001101100101010101011000101010110101010100101001101100 0101010100101001101100101010101011000101010 6 Inputs 7 Outputs 101010101011000101010100101010100101001101100101010101011 1001010101001010011011001010101010110001010 000101010110101010100101001101100101010101011000101010100 1011010101010010100110110010101010101100010 101010010101001101100101010101011000101010100101010100101 average number of data sources average number target outputs 1010100101010100101001101100101010101011000 001101100101010101011000101010100101010100101001101100101 per analytics or data science activity per analytics or data science activity 1010101101010101001010011011001010101010110 01010101100010101011010101010010100110110010101 0010101010010101001010100110110010101010101 101100101010101011000101010100101010010101001101100101010 1000101010100101010100101001101100101010101 101011000101010100101010100101001101100101010101011000101 0110001010101001010101001010011011001010101 010100101010100101001101100101010101011000101010110101010 0101100010101011010101010010100110110010101 100101001101100101010101011000101010100101010100101001101 0101011000101010100101010100101001101100101 100101010101011000101010110101010100101001101100101010101 0101010110001010101101010101001010011011001 011000101010100101010100101001101100101010101011000101010 110101010100101001101100101010101011000101010100101010100 101001101100101010101011000101010110101010100101001101100 4-7 Tools 101010101011000101010100101010100101001101100101010101011 to perform data activities 000101010110101010100101001101100101010101011000101010100 101010010101001101100101010101011000101010100101010100101 Source: IDC, State of Analytics and Data Science (Commissioned by Alteryx), April 2019. 001101100101010101011000101010100101010100101001101100101 01010101100010101011010101010010100110110010101 Confidential │ ©2021 Alteryx, Inc. 7
Alteryx Introduces Analytic Process Automation Confidential │ ©2021 Alteryx, Inc. 8
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Key Tenets of a Transformative Platform Brings together data, process and people Automates data-driven business processes Engages via a human- centered experience Confidential │ ©2021 Alteryx, Inc. 9
Digital Transformation Is Underway Democratizing data and analytics Automating processes Upskilling people Confidential │ ©2021 Alteryx, Inc. 10
Alteryx: At the Center of Digital Transformation DATA PROCESS PEOPLE We facilitate disparate data We automate entire analytic We empower citizen access, analytics and data and process pipelines in the data scientists to science via a code-free and context of the desired become self-service code-friendly platform business outcome digital workers MODERN COMPUTE We embrace cloud, hybrid, on-premise and commodity compute Confidential │ ©2021 Alteryx, Inc. 11
Alteryx: Users Experiencing Limitless Outcomes Optimized staffing Sports analytics Attrition forecast Trade area performance Inventory management Accounting reconciliation Estimated time of arrival Target customer lists Quality correlations Cyber threat detection Tax calculations Route optimization Automated audit Optimal pricing Legal risk Predictive maintenance Automated reporting Call center training Financial forecasting Customer satisfaction drivers Store location analysis Patent protection Pricing optimization Net promoter analysis Fraud identification What player to draft Scheduling Optimization Supply Chain Risk Churn analytics IT use monitoring Marketing Attribution Next best offer Customer targeting Energy optimization Performance management Optimized lead management Fuel use optimization Shipping optimization Candidate screening Confidential │ ©2021 Alteryx, Inc. 12
The Alteryx Analytic Process Automation Platform Unified analytics, data science and process automation Transforming Business Outcomes Transforming Workforces Top Line Growth Bottom Line Return Efficiency Gains Perpetual Upskilling 260+ Automation Building Blocks Automating Outcomes for People & to Apps Automating Asset Inputs BI Predictive/ Predictive Explainable Data Files, Docs Applications Prescriptive AutoML AI Blending Bots RPA Data Stakeholders Process Platforms Automation Production AI Applications Data Prep Publishing & Profiling App Controls Enterprise Cloud Apps & APIs Sources Geospatial Diagnostic Code-Free Analytics Business-Ready Reporting Data Science Logic Docs, Email… Democratization of data and analytics • Intelligent automation of processes • Continuous upskilling of people Confidential │ ©2021 Alteryx, Inc. 13
APA Product Portfolio Overview Unified analytics, data science and process automation Alteryx Analytic Process Automation Platform Automating Automating Asset Inputs Outcomes Geospatial Data Prep Data Diagnostic Predictive Prescriptive Predictive Explainable No & Low code Analytics & Profiling Blending Reporting Analytics Analytics AutoML AI Data Science Alteryx Server & Designer Server Connect Promote Alteryx Analytics Hub Build Analytic Share Discover Productionize Workflows Outcomes Data Models Discover, Collaborate, Automate SUITES Intelligence Suite Insights Suite (Location/Business) (Machine Learning/NLP) Confidential │ ©2021 Alteryx, Inc. 14
What Makes Alteryx Different? Unified analytics, data science and process automation Alteryx Analytic Process Automation Platform Automating Automating Asset Inputs Outcomes Geospatial Data Prep Data Diagnostic Predictive Prescriptive Predictive Explainable No & Low code Analytics & Profiling Blending Reporting Analytics Analytics AutoML AI Data Science Repeatable Workflows Code-free & Code-friendly Analytics Deployed Automate time-consuming, manual data Intuitive drag and drop interface for While there are many modeling tools tasks into real-time, repeatable analytic both code-free analytic modeling as on the market – we do both kick-ass workflows. A few clicks to freedom. well as code-friendly advanced modeling and model deployment. modeling. Put your analytic models to work. Flexible & Diverse Wicked ROI for the LOB Scale & Governance Start with what you need and expand Alteryx’s hallmark is ease-of-use and Scaling analytics for the enterprise over time with our open platform. We this translates into unmatched time-to- translates into performance, security, support nearly every data source and decision for the line of business teams - collaboration and governance. Our end- output that your business needs. minutes not weeks. to-end platform delivers on all fronts. Confidential │ ©2021 Alteryx, Inc. 15
The network effects of a transformative platform creates a winner-takes-most opportunity. 16 Confidential │ ©2021 Alteryx, Inc.
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A $49B High Growth Market Opportunity IT Line-of-Business 1 2 $25B $24B (1) Gartner, Forecast Analysis: Enterprise Application Software, Worldwide, Analytics and Business Intelligence, January 2020. (2) Internal estimate of the spend associated with 47 million spreadsheet users worldwide that worked on advanced data preparation and analytics in 2018 as provided in the April 2019 IDC Report (State of Analytics and Data Science). 1 Gartner, Forecast Analysis: Enterprise Application Software, Worldwide, Analytics and Business Intelligence, January 2020. 2 Internal estimate of the spend associated with 47 million spreadsheet users worldwide that worked on advanced data preparation and analytics in 2018 as provided in the April 2019 IDC Report (State of Analytics and Data Science). Confidential │ ©2021 Alteryx, Inc. 17
A Global Customer Base ~7,100 customers across diverse industries Top Line Bottom Line Efficiency Risk Fast Workforce Growth Return Gains Reduction Reskilling Retail Food Services Consumer Products Telcom/Cable Media Professional Services Energy & Utilities Healthcare & Insurance Manufacturing Financial Services Travel & Hospitality Technology 38% of the Global 2000 Confidential │ ©2021 Alteryx, Inc. 18
Four Areas of ROI Alteryx customer examples Transforming Workforces Transforming Business Outcomes Efficiency Gains Perpetual Upskilling Top Line Growth Bottom Line Return $1.5B $80M 99.4% 50,000 people upskilled sales increase returned to the bottom line on-time parcel deliveries Top 5 Retailer Top 3 Passenger Airline Large National Retailer Big 4 Consulting Firm Daily merchandising Automation of parcel routing Management, tax, audit Discovery and analysis of optimization for 100% SKUs and deliveries consultants unused rewards in customer in 2000+ stores loyalty program 11% cost savings in all inbound freight costs $40M $20M 757% 2000+ revenue increase annual savings efficiency improvement people upskilled F500 Manufacturer Healthcare Provider Top 5 Organic Grocer Top 50 Global Bank Automating customer LTV Annual savings by reducing Pricing optimization, Automation across LOBs analytics and campaigns unwarranted clinical variations standardization and delivery including trading, finance, in healthcare delivery timeliness tax, client servicing Top-line revenue growth in 1 yr Confidential │ ©2021 Alteryx, Inc. 19
Proven Land and Expand Model Standardize Alteryx Platform Automation Expand • Chief Data Officer and Scale as advocate • Spend shift from IT Alteryx Server to line of business Additional Users Alteryx Connect Expand and Departments Alteryx Promote Alteryx Designer • Automation, scheduling and sharing Land • Additional users of workflows • Additional use cases • Replaces legacy tools Alteryx Designer across multiple departments • Net new spend • Replaces manual processes Confidential │ ©2021 Alteryx, Inc. 20
2020 Gartner Magic Quadrant For Data Science & Machine Learning Platforms Gartner named Alteryx a Leader positioned highest in execution. "Gartner Magic Quadrant for Data Science and Machine Learning Platforms", by Peter Krensky, Pieter den Hamer, Erick Brethenoux, Jim Hare, Carlie Idoine, Alexander Linden, Svetlana Sicular, Farhan Choudhary; February 11, 2020. GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, and is used herein with permission. All rights reserved. This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon request from Alteryx. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. Confidential │ ©2021 Alteryx, Inc. 21
Analytic Market Landscape ANALYTIC PROCESS AUTOMATION MATURITY Persona Catalog Preparation Predictive + Prescriptive Descriptive + Diagnostic Data OPEN SOURCETOOLS, LIBRARIES AND DEV LANGUAGES STAND-ALONE Scientist DATA CATALOGS /Quant DATA SCIENCE AND LIGHTWEIGHT DATA PREP ML PLATFORMS Citizen Data Scientist VISUALIZATION Knowledge Worker Confidential │ ©2021 Alteryx, Inc. 22
Growth Drivers Channel & Partner International Land & Expand EcoSystem Expansion Model Community New Products Expansion & Solutions & Extension Confidential │ ©2021 Alteryx, Inc. 23
Meet the Team Mark Anderson Chief Executive Officer Scott Davidson Olivia Duane Adams Matthew Stauble Kevin Rubin Chief Operating Officer Chief Advocacy Officer Chief Customer Officer Chief Financial Officer Co-Founder Chris Lal Alan Jacobson Sharmila Mulligan Suresh Vittal Chief Legal Officer Chief Data + Analytics Officer Chief Strategy + Marketing Officer Chief Product Officer BOARD OF Dean Stoecker Kimberly Alexy John Bellizzi Mark Anderson Executive Chairman Alexy Capital Management Thomson Reuters (Retired) Alteryx DIRECTORS Co-Founder of Alteryx FireEye (Board Member) Chuck Cory Anjali Joshi Timothy I. Maudlin Eileen Schloss Jeff Horing Morgan Stanley (Retired) Google (Retired) Medical Innovation Partners (Retired) Medidata Solutions (Retired) Insight Venture Partners Iteris (Board Member) PluralSight (Board Member) Confidential │ ©2021 Alteryx, Inc. 24
Financial Overview Confidential │ ©2021 Alteryx, Inc. 25
Financial Highlights FYE December 31 | $ in millions 1 QUARTERLY REVENUE ANNUAL REVENUE $161 $156 $495 $418 $130 $109 $103 $96 $82 $254 $76 $132 2017 2018 2019 2020 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 32% 19% 93% 16% 122% FY2020 annual recurring FY2020 FY2020 non-GAAP FY2020 non-GAAP Dollar-based net 2 2 3 3 4 revenue growth revenue growth gross margin operating margin expansion rate 1 Alteryx adopted the new revenue recognition accounting standard Accounting Standards Codification (“ASC”) 606 effective January 1, 2018 on a modified retrospective basis. Financial results for the reporting periods during 2018 are presented in accordance with the new revenue recognition standard. Historical financial results for the reporting periods prior to 2018 are presented in conformity with amounts previously disclosed under the prior revenue recognition standard ASC 605. 2 Revenue and annual recurring revenue growth represents FY 2020 Y/Y growth. 3 See the Appendix for a reconciliation between GAAP and non-GAAP financial measures. 4 Represents dollar-based net expansion rate for the three months ended December 31, 2020. See the Appendix for more information. Confidential │ ©2021 Alteryx, Inc. 26
Annual Recurring Revenue (ARR) +32% year-over-year $493 $450 $432 $405 $373 $326 $307 $282 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Note: Please refer to the Appendix of this presentation for definition of ARR. Confidential │ ©2021 Alteryx, Inc. 27
Margin Profile Three months Three months Non-GAAP FY FY FY FY ended ended 1 2 2 2 % of revenue 2017 2018 2019 2020 Dec 31, Dec 31, 2020 2019 Gross Margin 85% 92% 92% 93% 94% 93% Research and Development 21% 16% 15% 17% 13% 11% Sales and Marketing 49% 41% 43% 45% 38% 37% General and Administrative 20% 16% 16% 15% 13% 12% Operating Margin (5%) 19% 18% 16% 31% 33% 1 See the Appendix for a reconciliation of GAAP to non-GAAP financial measures. 2 Alteryx adopted the new revenue recognition accounting standard Accounting Standards Codification (“ASC”) 606 effective January 1, 2018 on a modified retrospective basis. Financial results for the reporting periods during 2018 and 2019 are presented in accordance with the new revenue recognition standard. Historical financial results for the reporting periods prior to 2018 are presented in conformity with amounts previously disclosed under the prior revenue recognition standard ASC 605. Confidential │ ©2021 Alteryx, Inc. 28
Strong Unit Economics Underpin Powerful Financial Model Target Operating Margin Non-GAAP 1 2 2 2 % of revenue 2017 2018 2019 2020 Drivers Long Term Target Gross Margin 85% 92% 92% 93% Sustained levels 90%-92% Research and Development 21% 16% 15% 17% Continued innovation 15%-17% Sales and Marketing 49% 41% 43% 45% Balanced growth 28%-30% General and Administrative 20% 16% 16% 15% Economies of scale 9%-11% Operating Margin (5%) 19% 18% 16% Scale and efficiency 35%-40% Free Cash Flow Margin 12% 8% 5% 10% Economies of scale 30%-35% 1 See the Appendix for a reconciliation of GAAP to non-GAAP financial measures. 2 Alteryx adopted the new revenue recognition accounting standard Accounting Standards Codification (“ASC”) 606 effective January 1, 2018 on a modified retrospective basis. Financial results for the reporting periods during 2018 and 2019 are presented in accordance with the new revenue recognition standard. Historical financial results for the reporting periods prior to 2018 are presented in conformity with amounts previously disclosed under the prior revenue recognition standard ASC 605. Confidential │ ©2021 Alteryx, Inc. 29
Appendix Confidential │ ©2021 Alteryx, Inc. 30
Definitions Annual Recurring Revenue (ARR): ARR represents the annualized recurring value of all active subscription contracts at the end of a reporting period and excludes the value of non-recurring revenue streams, such as professional services. Both multi-year contracts and contracts with terms less than one year are annualized by dividing the total committed contract value by the number of months in the subscription term and then multiplying by twelve. Dollar-Based Net Expansion Rate: Our dollar-based net expansion rate is a trailing four-quarter average of the annual contract value, or ACV, which is defined as the subscription revenue that we would contractually expect to recognize over the term of the contract divided by the term of the contract, in years, from a cohort of customers in a quarter as compared to the same quarter in the prior year. A dollar- based net expansion rate equal to 100% would generally imply that we received the same amount of ACV from our cohort of customers in the current quarter as we did in the same quarter of the prior year. A dollar-based net expansion rate less than 100% would generally imply that we received less ACV from our cohort of customers in the current quarter than we did in the same quarter of the prior year. A dollar- based net expansion rate greater than 100% would generally imply that we received more ACV from our cohort of customers in the current quarter than we did in the same quarter of the prior year. To calculate our dollar-based net expansion rate, we first identify a cohort of customers, or the Base Customers, in a particular quarter, or the Base Quarter. A customer will not be considered a Base Customer unless such customer has an active subscription on the last day of the Base Quarter. We then divide the ACV in the same quarter of the subsequent year attributable to the Base Customers, or the Comparison Quarter, including Base Customers from which we no longer derive ACV in the Comparison Quarter, by the ACV attributable to those Base Customers in the Base Quarter. Our dollar-based net expansion rate in a particular quarter is then obtained by averaging the result from that particular quarter by the corresponding result from each of the prior three quarters. The dollar-based net expansion rate excludes contract value relating to professional services from that cohort. Customer: A customer at the end of any particular period is defined as an entity with a subscription agreement that runs through the current or future period as of the measurement date. A single organization with separate subsidiaries, segments, or divisions that use our platform may represent multiple customers, as we treat each entity that is invoiced separately as a single customer. Confidential │ ©2021 Alteryx, Inc. 31
ASC 606 – Revenue Mechanics for AYX • Financial results starting in 2018 are presented in accordance with the revenue recognition standard ASC 606. Historical financial results for the reporting periods prior to 2018 are presented in conformity with amounts previously disclosed under the prior revenue recognition standard ASC 605. • Prior to the adoption of ASC 606 effective January 1, 2018, revenue was generally recognized ratably over the life of the contract. Under ASC 606, typically 35% to 40% of Total Contract Value (TCV) is recognized up front and the remainder is recognized ratably over the remainder of the contract life. • The majority of Alteryx’s product offerings are on-premise software solutions and our contracts typically contain multiple performance obligations. As a result, a portion of revenue is recognized up front and a portion is recognized over the life of the contract. • Our contracts typically range from one to three years and are billed annually in advance. Dollar-weighted contract duration is approximately 2 years. Confidential │ ©2021 Alteryx, Inc. 32
Definitions Recognized at the beginning of the subscription term or when the platform is made Subscription-based software license available to the customer (whichever is later). This is approximately 35%-40% of TCV. revenue Represents the portion of revenue that is recognized ratably over the life of the contract. Post-contract support (PCS) This is the remaining 60% to 65% of TCV. revenue Services revenue Recognized at a point in time as the services are performed and represents 5% or less of total revenue for all periods presented. ARR represents the annualized recurring value of all active subscription contracts at the Annual recurring revenue (ARR) end of a reporting period and excludes the value of non-recurring revenue streams, such as professional services. Both multi-year contracts and contracts with terms less than one year are annualized by dividing the total committed contract value by the number of months in the subscription term and then multiplying by twelve. Represents contractual amounts invoiced but not yet recognized as revenue. Deferred revenue Represents unbilled amounts for which the amount of revenue recognized exceeds the Contract asset amount invoiced. Represents the amount of contractual obligations that have not been recognized as Remaining performance obligations revenue. (RPO) Confidential │ ©2021 Alteryx, Inc. 33
An Example Deal terms Year 1 Year 2 Year 3 Year 4 • Total contract value (TCV): $300 Subscription-based $105 $0 $0 $0 software license revenue • Duration: 3 years • Start date: July 1, Year 1 Post-contract support $32.5 $65 $65 $32.5 (PCS) revenue (6 mos) (6 mos) • Invoicing: annually in advance • Revenue recognition assumption: 35% upfront, Invoicing $100 $100 $100 $0 65% ratable over contract term • Revenue recognition commences: July 1, Year 1 Deferred revenue $0 $0 $32.5 $0 Contract asset $37.5 $2.5 $0 $0 Revenue Invoicing Remaining performance $162.5 $97.5 $32.5 $0 obligations ARR at end of year $100 $100 $100 $0 Year 1 Year 2 Year 3 Year 4 Note: This example assumes there is no renewal at the end of the contract term Confidential │ ©2021 Alteryx, Inc. 34
GAAP to Non-GAAP Reconciliations $ in thousands Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 GAAP income (loss) from operations $2,683 $(3,425) $9,394 $21,118 $(4,402) $(8,288) $11,936 $38,735 $(20,105) $(17,794) $9,633 $24,359 Stock-based compensation 3,789 3,894 4,382 4,582 5,335 8,024 8,836 10,930 13,664 16,923 20,697 23,632 Amortization of intangible assets 477 517 518 517 505 1,152 1,181 1,184 1,168 812 829 1,161 Change in fair value of contingent 293 162 - 169 - (75) - 175 - - - - consideration Intangible asset impairment - - - - - - - - 2,025 - - - Non-GAAP income (loss) from $7,242 $1,148 $14,294 $26,386 $1,438 $813 $21,953 $51,024 $(3,248) $(59) $31,159 $49,152 operations As margin % Total revenue $50,329 $51,502 $62,589 $89,150 $76,020 $82,043 $103,397 $156,450 $108,831 $96,233 $129,717 $160,527 GAAP operating margin 5% (7%) 15% 24% (6%) (10%) 12% 25% (18%) (18%) 7% 15% Non-GAAP operating margin 14% 2% 23% 30% 2% 1% 21% 33% (3%) (0%) 24% 31% Confidential │ ©2021 Alteryx, Inc. 35
GAAP to Non-GAAP Reconciliations $ in thousands Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 GAAP gross profit $45,325 $46,233 $56,779 $82,433 $68,020 $72,748 $93,752 $144,239 $95,784 $86,598 $119,303 $149,784 Stock-based compensation 139 206 226 226 307 410 431 486 436 597 714 803 Amortization of intangible assets 446 451 456 456 446 1,096 1,128 1,131 1,118 762 773 1,105 Impairment of intangible assets - - - - - - - - 2,025 - - - Non-GAAP gross profit $45,910 $46,890 $57,461 $83,115 $68,773 $74,254 $95,311 $145,856 $99,363 $87,957 $120,790 $151,692 As margin % Total revenue $50,329 $51,502 $62,589 $89,150 $76,020 $82,043 $103,397 $156,450 $108,831 $96,233 $129,717 $160,527 GAAP gross margin 90% 90% 91% 92% 89% 89% 91% 92% 88% 90% 92% 93% Non-GAAP gross margin 91% 91% 92% 93% 90% 91% 92% 93% 91% 91% 93% 94% Confidential │ ©2021 Alteryx, Inc. 36
GAAP to Non-GAAP Reconciliations FYE December 31 | $ in thousands ASC 606 ASC 605 1 1 1 2017 2018 2019 2020 GAAP income (loss) from operations $(18,199) $29,770 $37,981 $(3,907) Stock-based compensation 8,941 16,647 33,125 74,916 Amortization of intangible assets 1,225 2,030 4,022 3,970 Follow-on public offering costs 676 - - - Change in fair value of contingent consideration 190 624 100 - Impairment of intangible assets 2,025 Non-GAAP income(loss) from operations $(7,167) $49,071 $75,228 $77,004 As margin % Total revenue $131,607 $253,570 $417,910 $495,308 GAAP operating margin (14%) 12% 9% (1%) Non-GAAP operating margin (5%) 19% 18% 16% 1 Alteryx adopted the new revenue recognition accounting standard Accounting Standards Codification (“ASC”) 606 effective January 1, 2018 on a modified retrospective basis. Financial results for the 2018 and 2019 reporting periods are presented in accordance with the new revenue recognition standard. Historical financial results for the reporting periods prior to 2018 are presented in conformity with amounts previously disclosed under the prior revenue recognition standard ASC 605. Confidential │ ©2021 Alteryx, Inc. 37
GAAP to Non-GAAP Reconciliations FYE December 31 | $ in thousands ASC 606 ASC 605 1 1 1 2017 2018 2019 2020 GAAP gross profit $109,804 $230,770 $378,759 $451,469 Stock-based compensation 485 797 1,634 2,550 Amortization of intangible assets 1,213 1,809 3,801 3,758 Impairment of intangible assets 2,025 Non-GAAP gross profit $111,502 $233,376 $384,194 $459,802 As margin % Total revenue $131,607 $253,570 $417,910 $495,308 GAAP gross margin 83% 91% 91% 91% Non-GAAP gross margin 85% 92% 92% 93% 1 Alteryx adopted the new revenue recognition accounting standard Accounting Standards Codification (“ASC”) 606 effective January 1, 2018 on a modified retrospective basis. Financial results for the 2018 and 2019 reporting periods are presented in accordance with the new revenue recognition standard. Historical financial results for the reporting periods prior to 2018 are presented in conformity with amounts previously disclosed under the prior revenue recognition standard ASC 605. Confidential │ ©2021 Alteryx, Inc. 38
GAAP to Non-GAAP Reconciliations FYE December 31 | $ in thousands Three months Three months ASC 605 ASC 606 ended Dec 31, ended Dec 31, 1 1 1 1 1 2020 2019 2017 2018 2019 2020 GAAP research & development expense $29,342 $43,449 $69,100 $101,117 $26,448 $20,892 Stock-based compensation (1,635) (3,699) (6,954) $(18,388) (5,973) (2,940) Non-GAAP research & development $27,707 $39,750 $62,146 $82,729 $20,475 $17,952 expense As margin % Total revenue $131,607 $253,570 $417,910 $495,308 $160,527 $156,450 GAAP research & development 22% 17% 17% 20% 16% 13% Non-GAAP research & development 21% 16% 15% 17% 13% 11% 1 Alteryx adopted the new revenue recognition accounting standard Accounting Standards Codification (“ASC”) 606 effective January 1, 2018 on a modified retrospective basis. Financial results for the 2018 and 2019 reporting periods are presented in accordance with the new revenue recognition standard. Historical financial results for the reporting periods prior to 2018 are presented in conformity with amounts previously disclosed under the prior revenue recognition standard ASC 605. Confidential │ ©2021 Alteryx, Inc. 39
GAAP to Non-GAAP Reconciliations FYE December 31 | $ in thousands Three months Three months ASC 605 ASC 606 ended Dec 31, ended Dec 31, 1 1 1 1 1 2020 2019 2017 2018 2019 2020 GAAP sales & marketing expense $66,420 $109,284 $191,735 $252,820 $68,794 $61,321 Stock-based compensation (2,302) (6,153) (12,659) (28,463) (8,030) (3,837) Amortization of intangible assets (12) (221) (221) (211) (55) (53) Non-GAAP sales & marketing expense $64,106 $102,910 $178,855 $224,146 $60,709 $57,431 As margin % Total revenue $131,607 $253,570 $417,910 $495,308 $160,527 $156,450 GAAP sales & marketing expense 50% 43% 46% 51% 43% 39% Non-GAAP sales & marketing expense 49% 41% 43% 45% 38% 37% 1 Alteryx adopted the new revenue recognition accounting standard Accounting Standards Codification (“ASC”) 606 effective January 1, 2018 on a modified retrospective basis. Financial results for the 2018 and 2019 reporting periods are presented in accordance with the new revenue recognition standard. Historical financial results for the reporting periods prior to 2018 are presented in conformity with amounts previously disclosed under the prior revenue recognition standard ASC 605. Confidential │ ©2021 Alteryx, Inc. 40
GAAP to Non-GAAP Reconciliations FYE December 31 | $ in thousands Three months Three months ASC 605 ASC 606 ended Dec 31, ended Dec 31, 1 1 1 1 1 2020 2019 2017 2018 2019 2020 GAAP general & administrative expense $32,241 $48,267 $79,943 $101,439 $30,183 $23,291 Stock-based compensation (4,519) (5,998) (11,878) (25,515) (8,826) (3,667) Follow-on-public offering costs (676) - - - - - Change in fair value of contingent (190) (624) (100) - - (175) consideration Non-GAAP general & administrative $26,856 $41,645 $67,965 $75,924 $21,537 $19,449 expense As margin % Total revenue $131,607 $253,570 $417,910 $495,308 $160,527 $156,450 GAAP general & administrative 24% 19% 19% 20% 19% 15% Non-GAAP general & administrative 20% 16% 16% 15% 13% 12% 1 Alteryx adopted the new revenue recognition accounting standard Accounting Standards Codification (“ASC”) 606 effective January 1, 2018 on a modified retrospective basis. Financial results for the 2018 and 2019 reporting periods are presented in accordance with the new revenue recognition standard. Historical financial results for the reporting periods prior to 2018 are presented in conformity with amounts previously disclosed under the prior revenue recognition standard ASC 605. Confidential │ ©2021 Alteryx, Inc. 41
GAAP to Non-GAAP Reconciliations FYE December 31 | $ in thousands ASC 606 ASC 605 1 1 1 2017 2018 2019 2020 GAAP cash flow from operations $18,943 $26,089 $34,192 $74,782 Less: purchases of property and equipment $(3,669) $(6,728) $(11,453) $(26,358) Free cash flow $15,274 $19,361 $22,739 $48,424 As margin % Total revenue $131,607 $253,570 $417,910 $495,308 GAAP cash flow from operations 14% 10% 8% 15% Free cash flow 12% 8% 5% 10% 1 Alteryx adopted the new revenue recognition accounting standard Accounting Standards Codification (“ASC”) 606 effective January 1, 2018 on a modified retrospective basis. Financial results for the 2018 and 2019 reporting periods are presented in accordance with the new revenue recognition standard. Historical financial results for the reporting periods prior to 2018 are presented in conformity with amounts previously disclosed under the prior revenue recognition standard ASC 605. Confidential │ ©2021 Alteryx, Inc. 42
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