Alteryx Announces Second Quarter 2019 Financial Results $AYX
https://seekingalpha.com/pr/17589199
Thanks for the kind words! Today just released: AYX blowout…(in case your wondering, that’s a good thing!!). Stock is up 6% in the after market in spite of the Feds playing around today with the interest rates. TWLO is down slightly…anticipating their release any minute.
AYX and TWLO did not disappoint. In fact, they absolutely killed it. As you know, these are my two largest holdings and highest conviction stocks. AYX is up over 10% today. TWLO initially sold off a bit, but are now up 2% on very strong results. I dare say it would have been hard to do any better. AYX ha 59% revenue growth, 91% margins, and 34% y/y customer growth. Most of their spend is going towards S&M to lock in new recurring customers and grow their base of recurring revenue. This bodes well for future continued growth. With $427m cash in the bank, turning profitable and that kind of growth??? Well, that is the reason I bought AYX two years ago in the low $20s and have continued to add more 9 different times, including at around $75 back in March of this year. I now find myself with the challenging decision whether to trim a little bit of it as it eclipsed my self imposed limit and shot up to 18% of my portfolio today. Nice problem to have, I suppose, but always hard to sell your prize bull and I do think AYX can still continue to run…question is of course how long and will that growth slow anytime soon? For today, well, 10% growth is more than I used to hope for in a year! No complaints and I’ll raise a toast 🥂 to AYX!! 😉
And TWLO…a juggernaut! Their biggest struggle is their size as they touch over a $20 billion market cap. But they ARE the underlying tech in thousands of companies we all use everyday…yes, including Uber, Lyft, Match.com, airBnb, box, trulia, Salesforce and 150,000 others including Coca- cola and many massive household names. They connect two people to each other geographically, economically, and otherwise to bring them together and enable the digital revolution. And they still have virtually no competition. Again, my only question is how they continue to grow at this rate. A truly legendary and amazing company, and also one I’ve owned for almost 2 years and accumulated in 10 different share purchases starting in the $30’s and most recently in February at $105 per share. I like to call this one the blue chip of technology! Happy investing! SQ an TTD earnings are up next and then we have a wait until September for the rest of them.
PS- READ one of these earnings releases. Or LISTEN to it on your commute. (Yes, you can do that!!). You can hear the optimism and enthusiasm in their voices and you will learn a lot about the company, it’s challenges and it’s successes.
Square slides 8% as analysts see growth decelerating
https://seekingalpha.com/news/3486083
Rough day for SQ. I had decreased my position from about 10% earlier this year to 5% due to decelerating growth. It’s relative, of course…they are still growing incredibly, but for the past 4 quarters the y/y growth rate has been:
68%
64%
59%
46% (current release)
While by most companies standards 46% growth is phenomenal and we’d be ecstatic, when the price of the stock has already appreciated significantly (position is up 150% since I bought it) based on 68% growth, it has to adjust for the lower growth rate. This is troublesome and could portend continued slower growth going forward…and that is in fact the trend. It is why I cut my position in half earlier this year and why I will now consider reducing it again…all that said, they had a very nice beat on earnings by 0.05 cents per share, beat on revenue expectations and are by all measures a highly performing, great and growing company…but they are also over a $30b market cap now and just exceeded a $1b annual revenue run rate for the first time…the bigger you get, the harder it is to keep the revenue growth accelerating and if it’s not accelerating, one has to question if they are worth 30x their annual revenues in price… probably not. Add to that trumps trade war and other macroeconomic factors and the portfolio is down significantly today.
