Alteryx Stock Rises on Acquisition Rumors

Software companies have been sending mixed messages. The old “macroeconomic headwinds” are creating turmoil around growth numbers, yet the promise of “generative AI” means things have never looked better. The reality is that companies everywhere started looking for ways to run leaner when the bear market started in late 2021. Cost-cutting exercises can manifest themselves over years, especially for software providers who offer access through multi-year contracts. Consequently, key metrics for investors to watch include net retention rate and the foundation of all software-as-a-service businesses – annualized recurring revenues (ARR). Today, we want to check in with a company we’re holding called Alteryx (AYX), but first, let’s address the elephant in the room.

The Acquisition Rumors

“According to people familiar with the matter,” Alteryx “has been working with an investment bank to explore a potential sale after attracting takeover interest.” So sayeth Reuters, which means we have nothing more than a he-said-she-said rumor. But this one seems to have some credibility based on the rich details provided such as the following statement:

Insight Partners, an early investor in Alteryx which has retained a 1.5% stake in the company and representation on its board of directors, has recused itself from the sale deliberations because of its interest as a potential acquirer.

Credit: Reuters

Both Alteryx and Insight Partners declined to comment, and that’s standard practice for any fir