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Subject:  Re: AYX Annual Shareholder Meeting Date:  5/21/2019  6:52 PM
Author:  TMFDatabasebob Number:  55986 of 61612

Hi all. The Alteryx annual shareholder meeting is tomorrow morning and I intend to be there bright and early. It took me longer to work through my preparatory process than I thought, but I have finished. Now I want to address everyone's questions.

BobbyBe, I couldn't find any reference to CEO predictions of 16,000 customers by 2021. Therefore, I don't intend to ask about that goal. I agree with you that 16,000 by 2021 seems to be a stretch. I do have other customer-related questions I intend to ask. Hopefully they'll help you.

Dreamer, I intend to ask some questions about their penetration into IT departments. I suspect that there may be a cultural clash where IT departments view themselves as the builders of systems and protectors of data where Alteryx seeks to decentralize those functions. But we'll see how (if) my questions get answered. I hope that the intent of your question comes through in the ones I've composed.

Ethan, First, yes, the convertible senior notes are now included in the diluted share count. This seems to have started in 4Q18. Based on the "initial conversion rate" and the size of the offering, about 5.2 million shares would be created. The Indenture document speaks to customary adjustments to the initial conversion rate, and I intend to ask about those. The difference between basic and diluted, as of 1Q19, is about 5.55 million shares. Prior to 4Q18, earnings press releases referred to a single share count as "basic and diluted". I intend to ask about the capped call, but the language in the 10-K makes it sound as if it covers the vast majority, if not all, of the conversion exposure. I intend to ask if conversions have occurred, although I suspect that the interest payments make early conversion unlikely. The section of the conference call where they described ClearStory as a Silicon Valley beachhead did also indicate that they hoped their presence in the Valley would allow them to attract more talent. I feel as if that answers your fifth question, so I don't intend to raise it.

TexMex, I think you've gotten some good answers from Ethan and Dan (SettingDTone). Alteryx has stressed that they are concentrating on Global 2000 companies at this point, and that they feel as if a good portion of their Total Addressable Market resides there. I think they are nearing a 30% penetration rate in terms of getting their first sale at these companies. They've also indicated, though, that they feel as if they still have plenty of room for expansion even in many of their most deeply-penetrated customers. As I said earlier, I do intend to ask about customer count growth.

I have an original question regarding the definition of Dollar-based Net Expansion Rate, but I REALLY appreciate the questions that you've asked as they've been very helpful in formulating the questions I'll ask. I truly hope that the thrust behind your original questions isn't lost in my translation. Hopefully I'll be able to post my write-up later this week.

Fool on!
Thanks and best wishes,
TMFDatabaseBob (long: AYX)
See my holdings here:
Peace on Earth

Please note: I am not a member of any newsletter team. My opinions are my own and do not necessarily reflect those of the TMF advisers. I want to share my research with you since we’re all part of the larger TMF Community.
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