Company Quick10K Filing
Alteryx
Price118.23 EPS0
Shares64 P/E582
MCap7,563 P/FCF561
Net Debt-644 EBIT-1
TEV6,919 TEV/EBIT-7,696
TTM 2019-09-30, in MM, except price, ratios
10-Q 2021-03-31 Filed 2021-05-05
10-K 2020-12-31 Filed 2021-02-12
10-Q 2020-09-30 Filed 2020-11-06
10-Q 2020-06-30 Filed 2020-08-07
10-Q 2020-03-31 Filed 2020-05-07
10-K 2019-12-31 Filed 2020-02-14
10-Q 2019-09-30 Filed 2019-11-01
10-Q 2019-06-30 Filed 2019-08-01
10-Q 2019-03-31 Filed 2019-05-02
10-K 2018-12-31 Filed 2019-03-01
10-Q 2018-09-30 Filed 2018-11-08
10-Q 2018-06-30 Filed 2018-08-09
10-Q 2018-03-31 Filed 2018-05-10
10-K 2017-12-31 Filed 2018-03-08
10-Q 2017-09-30 Filed 2017-11-09
10-Q 2017-06-30 Filed 2017-08-03
10-Q 2017-03-31 Filed 2017-05-11
8-K 2021-02-18
8-K 2021-02-09
8-K 2020-12-29
8-K 2020-11-05
8-K 2020-10-02
8-K 2020-08-06
8-K 2020-05-20
8-K 2020-05-06
8-K 2020-05-05
8-K 2020-04-29
8-K 2020-02-13
8-K 2019-12-03
8-K 2019-10-31
8-K 2019-10-14
8-K 2019-08-07
8-K 2019-08-07
8-K 2019-08-06
8-K 2019-07-31
8-K 2019-05-22
8-K 2019-05-01
8-K 2019-04-04
8-K 2019-02-27
8-K 2019-02-05
8-K 2019-01-24
8-K 2018-11-07
8-K 2018-09-27
8-K 2018-08-08
8-K 2018-06-13
8-K 2018-05-15
8-K 2018-05-15
8-K 2018-05-14
8-K 2018-05-09
8-K 2018-02-21

AYX 10Q Quarterly Report

Part I: Financial Information
Item 1. Condensed Consolidated Financial Statements (Unaudited).
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Item 4. Controls and Procedures.
Part Ii: Other Information
Item 1. Legal Proceedings.
Item 1A. Risk Factors.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Item 6. Exhibits.
EX-31.1 ayxex311q1202110q.htm
EX-31.2 ayxex312q1202110q.htm
EX-32.1 ayxex321q1202110q.htm
EX-32.2 ayxex322q1202110q.htm

Alteryx Earnings 2021-03-31

Balance SheetIncome StatementCash Flow
1.31.00.80.50.30.02017201820192020
Assets, Equity
0.20.10.10.0-0.0-0.12017201820192020
Rev, G Profit, Net Income
0.60.40.30.1-0.0-0.22017201820192020
Ops, Inv, Fin

ayx-20210331
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
  _____________________________________________________
FORM 10-Q
 _____________________________________________________
 (Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2021
Or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
Commission file number 001-38034
  _____________________________________________________
Alteryx, Inc.
(Exact name of registrant as specified in its charter)
_____________________________________________________
Delaware90-0673106
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
3345 Michelson Drive,Suite 400,Irvine,California92612
(Address of principal executive offices)(Zip Code)
(888) 836-4274
(Registrant’s telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)

_____________________________________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Class A Common Stock, $0.0001 par value per shareAYXNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.



Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes       No  
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
On April 27, 2021, there were 59,220,728 shares of the registrant’s Class A common stock outstanding and 7,908,630 shares of the registrant’s Class B common stock outstanding.




Alteryx, Inc.
Quarterly Report on Form 10-Q
For the Quarterly Period Ended March 31, 2021
TABLE OF CONTENTS
 
  Page Number
Part I:
A.
B.
C.
D.
E.
Part II:




SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q includes “forward-looking statements” within the meaning of the federal securities laws. All statements contained in this Quarterly Report on Form 10-Q other than statements of historical fact, including statements regarding our future results of operations and financial position, our business strategy and plans, and our objectives for future operations, are forward-looking statements. In some cases, forward-looking statements can be identified by the use of terminology such as “believe,” “may,” “will,” “intend,” “expect,” “plan,” “anticipate,” “estimate,” “potential,” “continue,” “would,” “target,” or “project,” or other comparable terminology. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements about our expectations regarding:
 
the duration and impact of the novel coronavirus and the coronavirus disease, or COVID-19, pandemic;
trends in revenue, cost of revenue, and gross margin;
the successful transition and onboarding of our new chief executive officer, chief product officer and other senior management roles;
our investments in cloud infrastructure and the cost of third-party data center hosting fees;
trends in operating expenses, including research and development expense, sales and marketing expense, and general and administrative expense, and expectations regarding these expenses as a percentage of revenue;
expansion of our international operations and the impact on foreign tax expense;
maintaining a valuation allowance for net deferred tax assets to the extent they are not expected to be recoverable;
the timing and method of settlement of any series of our convertible senior notes;
the global opportunity for our analytic process automation software platform;
our investments in our marketing efforts and sales organization, including indirect sales channels and headcount, and the impact of any changes to our sales organization on revenue and growth;
the continued development and success of Alteryx Community, our online user community, distribution channels and our partner relationships, including the ability of our partners to successfully enable and deliver specialized support to our customers;
our expectations for the Alteryx APA platform, Alteryx Connect, Alteryx Promote and Alteryx Intelligence Suite and the speed of, and ability to deliver, additional product innovation;
our ability to manage our product lifecycle, including the discontinuation of any of our products and the migration of those customers to other products that we offer;
expansion of and within our customer base;
competitors and competition in our markets;
the impact of foreign currency exchange rates;
legal proceedings and the impact of such proceedings;
cash and cash equivalents and short-term investments and any positive cash flows from operations being sufficient to support our working capital and capital expenditure requirements for at least the next 12 months; and
other statements regarding our future operations, financial condition, and prospects and business strategies.
Although we believe that the expectations reflected in the forward-looking statements contained in this document are reasonable, these expectations or any of the forward-looking statements could prove to be incorrect, and actual results could differ materially from those projected or assumed in the forward-looking statements. Our 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 in this Quarterly Report on Form 10-Q under Part II, Item 1A. Risk Factors. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, the forward-looking statements made in this Quarterly Report on Form 10-Q may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.
All forward-looking statements and reasons why results may differ included in this Quarterly Report on Form 10-Q are made as of the date of the filing of this Quarterly Report on Form 10-Q, and we assume no obligation to update any such forward-looking statements or reasons why actual results may differ. The following discussion should be read in conjunction with our condensed consolidated financial statements and notes thereto appearing in Part I, Item 1 of this Quarterly Report on Form 10-Q.

1


PART I: FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements (unaudited).
Alteryx, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(in thousands, except per share data)
(unaudited)
 
 Three Months Ended March 31,
 20212020
Revenue:
Subscription-based software license$43,358 $50,744 
PCS and services75,401 58,087 
Total revenue118,759 108,831 
Cost of revenue:
Subscription-based software license1,249 1,981 
PCS and services9,592 11,066 
Total cost of revenue10,841 13,047 
Gross profit107,918 95,784 
Operating expenses:
Research and development31,322 26,181 
Sales and marketing71,907 65,165 
General and administrative33,500 24,543 
Total operating expenses136,729 115,889 
Loss from operations(28,811)(20,105)
Interest expense(9,598)(9,303)
Other expense, net(1,254)(2,462)
Loss before provision for (benefit of) income taxes(39,663)(31,870)
Provision for (benefit of) income taxes993 (16,397)
Net loss$(40,656)$(15,473)
Net loss per share attributable to common stockholders, basic$(0.61)$(0.24)
Net loss per share attributable to common stockholders, diluted$(0.61)$(0.24)
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic66,932 65,569 
Weighted-average shares used to compute net loss per share attributable to common stockholders, diluted66,932 65,569 
Other comprehensive income (loss), net of tax:
Net unrealized holding gain (loss) on investments, net of tax(598)1,243 
Foreign currency translation adjustments(662)998 
Other comprehensive income (loss), net of tax(1,260)2,241 
Total comprehensive loss$(41,916)$(13,232)
The accompanying notes are an integral part of these condensed consolidated financial statements
2


Alteryx, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except par value)
(unaudited)
 
March 31, 2021December 31, 2020
Assets
Current assets:
Cash and cash equivalents$253,760 $171,891 
Short-term investments585,737 584,445 
Accounts receivable, net 60,502 136,985 
Prepaid expenses and other current assets87,725 79,144 
Total current assets987,724 972,465 
Property and equipment, net43,914 40,645 
Operating lease right-of-use assets61,988 62,508 
Long-term investments192,330 265,800 
Goodwill37,040 37,070 
Intangible assets, net15,046 16,191 
Other assets77,705 70,616 
Total assets$1,415,747 $1,465,295 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$5,950 $5,340 
Accrued payroll and payroll related liabilities32,519 46,569 
Accrued expenses and other current liabilities31,642 34,987 
Deferred revenue95,260 108,664 
Convertible senior notes, net73,762 72,619 
Total current liabilities239,133 268,179 
Convertible senior notes, net664,350 657,501 
Deferred revenue3,354 3,806 
Operating lease liabilities52,277 53,860 
Other liabilities5,147 5,158 
Total liabilities964,261 988,504 
Stockholders’ equity:
Preferred stock, $0.0001 par value: 10,000 shares authorized as of March 31, 2021 and
    December 31, 2020, respectively; no shares issued and outstanding as of March 31,
    2021 and December 31, 2020, respectively
  
Common stock, $0.0001 par value: 500,000 Class A shares authorized, 59,067 and
     58,634 shares issued and outstanding as of March 31, 2021 and December 31, 2020,
     respectively; 500,000 Class B shares authorized, 8,004 and 8,108 shares issued
     and outstanding as of March 31, 2021 and December 31, 2020, respectively
7 7 
Additional paid-in capital505,636 489,025 
Accumulated deficit(51,404)(10,748)
Accumulated other comprehensive loss(2,753)(1,493)
Total stockholders’ equity451,486 476,791 
Total liabilities and stockholders’ equity$1,415,747 $1,465,295 
The accompanying notes are an integral part of these condensed consolidated financial statements
3


Alteryx, Inc.
Condensed Consolidated Statements of Stockholders’ Equity
(in thousands)
(unaudited)
Three Months Ended March 31, 2021
 Common StockAdditional
Paid-in
Capital
Accumulated DeficitAccumulated
Other
Comprehensive
Loss
Total
SharesAmount
Balances at December 31, 202066,742 $7 $489,025 $(10,748)$(1,493)$476,791 
Shares issued pursuant to restricted stock unit awards, net of tax withholdings related to vesting of restricted stock units204 — (13,071)— — (13,071)
Exercise of stock options and issuance of shares in connection with employee stock purchase plan125 — 5,243 — — 5,243 
Stock-based compensation— — 24,439 — — 24,439 
Cumulative translation adjustment— — — — (662)(662)
Unrealized loss on investments— — — — (598)(598)
Net loss— — — (40,656)— (40,656)
Balances at March 31, 202167,071 $7 $505,636 $(51,404)$(2,753)$451,486 
The accompanying notes are an integral part of these condensed consolidated financial statements
4


Alteryx, Inc.
Condensed Consolidated Statements of Stockholders’ Equity (continued)
(in thousands)
(unaudited)
Three Months Ended March 31, 2020
 Common StockAdditional
Paid-in
Capital
Retained Earnings (Accumulated Deficit)Accumulated
Other
Comprehensive Gain (Loss)
Total
SharesAmount
Balances at December 31, 201965,260 $7 $412,191 $14,235 $(1,526)$424,907 
Cumulative effect of adoption of ASC 326— — — (609)— (609)
Shares issued pursuant to restricted stock unit awards, net of tax withholdings related to vesting of restricted stock units143 — (9,945)— — (9,945)
Exercise of stock options and issuance of shares in connection with employee stock purchase plan482 — 11,600 — — 11,600 
Stock-based compensation— — 13,664 — — 13,664 
Cumulative translation adjustment— — — — 998 998 
Unrealized gain on investments— — — — 1,243 1,243 
Net loss— — — (15,473)— (15,473)
Balances at March 31, 202065,885 $7 $427,510 $(1,847)$715 $426,385 
The accompanying notes are an integral part of these condensed consolidated financial statements
5


Alteryx, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
 
 Three Months Ended March 31,
 20212020
Cash flows from operating activities:
Net loss$(40,656)$(15,473)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization3,683 2,760 
Non-cash operating lease cost3,022 1,757 
Stock-based compensation24,439 13,664 
Amortization (accretion) of discounts and premiums on investments, net1,324 (606)
Amortization of debt discount and issuance costs7,992 7,675 
Deferred income taxes433 (16,628)
Other non-cash operating activities, net153 7,509 
Changes in operating assets and liabilities:
Accounts receivable76,680 74,901 
Deferred commissions451 461 
Prepaid expenses, other current assets, and other assets(16,253)(20,371)
Accounts payable761 4,285 
Accrued payroll and payroll related liabilities(13,924)(29,690)
Accrued expenses, other current liabilities, operating lease liabilities, and other liabilities(8,271)(4,919)
Deferred revenue(13,866)(5,350)
Net cash provided by operating activities25,968 19,975 
Cash flows from investing activities:
Purchases of property and equipment(5,643)(4,976)
Purchases of investments(144,701)(313,611)
Sales and maturities of investments214,955 116,691 
Net cash provided by (used in) investing activities64,611 (201,896)
Cash flows from financing activities:
Proceeds from exercise of stock options5,243 11,600 
Minimum tax withholding paid on behalf of employees for restricted stock units(13,071)(9,945)
Other financing activity (433)
Net cash provided by (used in) financing activities(7,828)1,222 
Effect of exchange rate changes on cash, cash equivalents and restricted cash(207)(1,228)
Net increase (decrease) in cash, cash equivalents and restricted cash82,544 (181,927)
Cash, cash equivalents and restricted cash—beginning of period173,665 411,424 
Cash, cash equivalents and restricted cash—end of period$256,209 $229,497 
The accompanying notes are an integral part of these condensed consolidated financial statements
6


Alteryx, Inc.
Condensed Consolidated Statements of Cash Flows (continued)
(in thousands)
(unaudited)
 
 Three Months Ended March 31,
 20212020
Supplemental disclosure of cash flow information:
Cash paid for interest$3,000 $2,817 
Cash paid for income taxes$716 $529 
Cash paid for amounts included in the measurement of operating lease liabilities$3,447 $2,061 
Supplemental disclosure of noncash investing and financing activities:
Property and equipment recorded in accounts payable and accrued expenses and other current liabilities$2,664 $3,167 
Right-of-use assets obtained in exchange for new operating lease liabilities$2,624 $14,400 
The accompanying notes are an integral part of these condensed consolidated financial statements
7


Alteryx, Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
1. Business
Our Company
Alteryx, Inc. and its subsidiaries, or we, our, or us, is a leader in Analytic Process Automation, or APA. The Alteryx APA software platform unifies analytics, data science and business process automation in one self-service platform to accelerate digital transformation, deliver high-impact business outcomes, accelerate the democratization of data and rapidly upskill modern workforces. Data workers, regardless of technical acumen, are empowered to be curious and solve problems. With the Alteryx APA software platform, users can automate the full range of analytics, data science and processes, embed intelligent decision-making and actions, and empower their organization to enable top and bottom line impact, efficiency gains, and rapid upskilling.
Basis of Presentation
Our unaudited interim condensed consolidated financial statements are presented in accordance with accounting standards generally accepted in the United States of America, or U.S. GAAP, for interim financial information. Certain information and disclosures normally included in consolidated financial statements presented in accordance with U.S. GAAP have been condensed or omitted. Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes included in our Annual Report on Form 10-K for the year ended December 31, 2020 filed with the Securities and Exchange Commission, or SEC, on February 12, 2021. The unaudited interim condensed consolidated financial statements have been prepared on a basis consistent with that used to prepare the audited annual consolidated financial statements and reflect all adjustments which are, in the opinion of our management, of a normal recurring nature and necessary for a fair statement of the condensed consolidated financial statements. All intercompany accounts and transactions have been eliminated in consolidation.
The operating results for the three months ended March 31, 2021 are not necessarily indicative of the results expected for the full year ending December 31, 2021.
2. Significant Accounting Policies
There have been no changes to our accounting policies disclosed in our audited consolidated financial statements and the related notes for the year ended December 31, 2020.
Use of Estimates
The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates and assumptions.
On an ongoing basis, our management evaluates these estimates and assumptions, including those related to determination of standalone selling prices of our products and services, income tax valuations, stock-based compensation, and goodwill and intangible assets valuations and recoverability. We base our estimates on historical data and experience, as well as various other factors that our management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities.
Due to the COVID-19 pandemic, there has been continued uncertainty and disruption in the global economy and financial markets. The extent of the impact of COVID-19 on our operational and financial performance will depend on certain developments, including the duration and spread of the pandemic and the impact on our customers, prospective customers, sales cycles, and employees as well as the availability, adoption, and efficacy of available vaccines, all of which are uncertain and cannot be predicted. We are not aware of any specific event or circumstance that would require an update to our estimates or assumptions or a revision of the carrying value of our assets or liabilities as of the date of this Quarterly Report on Form 10-Q. These estimates and assumptions may change as new events occur and additional information is obtained. As a result, actual results could differ materially from these estimates and assumptions.
8


Operating Segments
Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the Chief Operating Decision Maker, or CODM, who is our chief executive officer, in deciding how to allocate resources and assess our financial and operational performance. Our CODM evaluates our financial information and resources and assesses the performance of these resources on a consolidated and aggregated basis. As a result, we have determined that our business operates in a single operating segment.
Recently Adopted Accounting Pronouncements
In December 2019, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU 2019-12 removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocations and calculating income taxes in interim periods. The standard also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill, allocating taxes to members of a consolidated group, and the recognition of deferred tax liabilities for outside basis differences. We adopted ASU 2019-12 prospectively as of the reporting period beginning January 1, 2021. Adoption of this update did not have a material impact on our condensed consolidated financial statements and related disclosures.
Recently Issued Accounting Pronouncements
In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, or ASU 2020-06, which simplifies the accounting for convertible instruments by removing certain separation models required under current U.S. GAAP, including the beneficial conversion feature and cash conversion models. ASU 2020-06 removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and it also simplifies the diluted earnings per share calculation in certain areas. This guidance will be effective for us for annual reporting periods beginning after December 15, 2021 and for interim periods within those annual periods, and can be applied utilizing either a modified or full retrospective transition method. Early adoption is permitted in the first interim period of a fiscal year. We currently account for our Notes (as defined and described in Note 7, Convertible Senior Notes) utilizing the cash conversion model. We intend to adopt this standard in the first quarter of 2022 and are currently evaluating the impact of adopting this guidance. We currently expect that the adoption will have a material impact on our condensed consolidated financial statements and related disclosures.
3. Revenue
Disaggregation of Revenue
The disaggregation of revenue by region was as follows (in thousands):
Three Months Ended March 31,
 20212020
Revenue by region:
United States$77,237 $80,535 
International41,522 28,296 
Total$118,759 $108,831 
Revenue attributable to the United Kingdom comprised 13.1% of the total revenue for the three months ended March 31, 2021. Other than the United Kingdom for the three months ended March 31, 2021, no other country outside the United States comprised more than 10% of revenue for any of the periods presented. Our operations outside the United States include sales offices in Australia, Canada, France, Germany, Japan, Singapore, the United Arab Emirates, and the United Kingdom, and a research and development center in Ukraine and the Czech Republic. Revenue by location is determined by the billing address of the customer.    
Revenue related to our subscription-based software licenses is recognized at a point in time when the platform is first made available to the customer, or the beginning of the subscription term, if later. Revenue related to post-contract support, or PCS, service, and hosted services is recognized ratably over the subscription term, with the exception of professional services related to training services. Revenue related to professional services is recognized at a point in time as the services are performed and represents less than 5% of total revenue for all periods presented.
9


Contract Assets and Contract Liabilities
Timing may differ between the satisfaction of performance obligations and the invoicing and collection of amounts related to our contracts with customers. Contract assets primarily relate to unbilled amounts for contracts with customers for which the amount of revenue recognized exceeds the amount billed to the customer. Contract assets are transferred to accounts receivable when the right to invoice becomes unconditional. Contract liabilities, or deferred revenue, are recorded for amounts that are collected in advance of the satisfaction of performance obligations. These liabilities are classified as current and non-current deferred revenue.
As of March 31, 2021, our contract assets are expected to be transferred to receivables within the next 12 to 24 months and, with respect to these contract assets, $31.0 million is included in prepaid expenses and other current assets and $43.5 million is included in other assets on our condensed consolidated balance sheet. As of December 31, 2020, we had contract assets of $25.4 million included in prepaid expenses and other current assets and $37.2 million included in other assets on our consolidated balance sheet. There were no impairments of contract assets during each of the three months ended March 31, 2021 and 2020.
During the three months ended March 31, 2021 and 2020, we recognized $51.8 million and $38.1 million, respectively, of revenue related to amounts that were included in deferred revenue as of December 31, 2020 and 2019, respectively.
Assets Recognized from the Costs to Obtain our Contracts with Customers
We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. This primarily consists of sales commissions and partner referral fees that are earned upon execution of the related contracts. We amortize these deferred commissions, which include partner referral fees, proportionate with related revenues over the benefit period. A summary of the activity impacting our deferred commissions during the three months ended March 31, 2021 and 2020 is presented below (in thousands):
Three Months Ended March 31,
20212020
Beginning balance$51,186 $43,035 
Additional deferred commissions9,101 7,899 
Amortization of deferred commissions(9,558)(8,331)
Effects of foreign currency translation(102)(747)
Ending balance$50,627 $41,856 
As of March 31, 2021 and 2020, $25.2 million and $17.9 million, respectively, of our deferred commissions were expected to be amortized within the next 12 months and therefore were included in prepaid expenses and other current assets. The remaining amount of our deferred commissions is included in other assets. There were no impairments of assets related to deferred commissions during each of the three months ended March 31, 2021 and 2020. There were no assets recognized related to the costs to fulfill contracts during each of the three months ended March 31, 2021 and 2020 as these costs were not material.
Remaining Performance Obligations
Transaction price allocated to the remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue on our condensed consolidated balance sheets and unbilled amounts that will be recognized as revenue in future periods. As of March 31, 2021, we had an aggregate transaction price of $452.6 million allocated to unsatisfied performance obligations related primarily to PCS, cloud-based offerings, and subscriptions to third-party syndicated data. We expect to recognize $412.0 million as revenue over the next 24 months, with the remaining amount recognized thereafter.
10


4. Fair Value Measurements
Instruments Measured at Fair Value on a Recurring Basis. The following tables present our cash and cash equivalents’ and investments’ costs, gross unrealized gains (losses), and fair value by major security type recorded as cash and cash equivalents or short-term or long-term investments as of March 31, 2021 and December 31, 2020 (in thousands):
 
 As of March 31, 2021
 CostNet
Unrealized
Gains (Losses)
Fair ValueCash and
Cash
Equivalents
Short-term
Investments
Long-term
Investments
Cash$97,419 $— $97,419 $97,419 $— $— 
Level 1:
Money market funds$82,249 $— $82,249 $82,249 $— $— 
Subtotal$82,249 $— $82,249 $82,249 $— $— 
Level 2:
Commercial paper$201,966 $(5)$201,961 $74,092 $127,869 $ 
Certificates of deposit5,095 1 5,096  1,595 3,501 
U.S. Treasury and agency bonds503,602 842 504,444  382,554 121,890 
Corporate bonds140,533 125 140,658  73,719 66,939 
Subtotal$851,196 $963 $852,159 $74,092 $585,737 $192,330 
Level 3:$ $ $ $ $ $ 
Total$1,030,864 $963 $1,031,827 $253,760 $585,737 $192,330 
 As of December 31, 2020
 CostNet
Unrealized
Gains (Losses)
Fair ValueCash and
Cash
Equivalents
Short-term
Investments
Long-term
Investments
Cash$88,991 $— $88,991 $88,991 $— $— 
Level 1:
Money market funds$35,010 $— $35,010 $35,010 $— $— 
Subtotal$35,010 $— $35,010 $35,010 $— $— 
Level 2:
Commercial paper$161,124 $(8)$161,116 $46,491 $114,625 $ 
Certificates of deposit2,800  2,800  2,800  
U.S. Treasury and agency bonds554,860 1,220 556,080 1,399 358,822 195,859 
Corporate bonds177,790 349 178,139  108,198 69,941 
Subtotal$896,574 $1,561 $898,135 $47,890 $584,445 $265,800 
Level 3:$ $ $ $ $ $ 
Total$1,020,575 $1,561 $1,022,136 $171,891 $584,445 $265,800 
All long-term investments had maturities of between one and two years in duration as of March 31, 2021. Cash and cash equivalents, restricted cash, and investments held domestically were approximately $1.0 billion as of each of March 31, 2021 and December 31, 2020.
As of March 31, 2021, we had gross unrealized losses of less than $0.1 million with respect to our available-for-sale securities, and we do not intend to sell, nor is it more likely than not that we will be required to sell, these investments before recovery of their amortized cost basis. These gross unrealized losses were classified in accumulated other comprehensive loss in our condensed consolidated balance sheets as of March 31, 2021.
11


Instruments Not Recorded at Fair Value on a Recurring Basis. We estimate the fair value of our Notes carried at face value, less unamortized discount and issuance costs, quarterly for disclosure purposes. The estimated fair value of our Notes is determined by Level 2 inputs and is based on observable market data including prices for similar instruments. As of March 31, 2021, the fair value of our Notes was $902.7 million. The carrying amounts of our cash, accounts receivable, prepaid expenses and other current assets, accounts payable, and accrued liabilities approximate their current fair value because of their nature and relatively short maturity dates or durations.
5. Allowance for Doubtful Accounts and Sales Reserves
The following table summarizes the changes in the allowances applied to accounts receivable and contract assets for the three months ended March 31, 2021 (in thousands):
Accounts Receivable ReserveContract Asset Reserve
Balance at December 31, 2020$3,114 $2,438 
Provision371 574 
Recoveries(359)(64)
Charge-offs(148)(8)
Balance at March 31, 2021$2,978 $2,940 
6. Goodwill and Intangible Assets
The change in carrying amount of goodwill for the three months ended March 31, 2021 was as follows (in thousands):
Goodwill as of December 31, 2020$37,070 
Effects of foreign currency translation(30)
Goodwill as of March 31, 2021$37,040 
Intangible assets consisted of the following (in thousands, except years):
 As of March 31, 2021
 Weighted-
Average Useful
Life in Years
Gross Carrying
Value
Accumulated
Amortization
Net Carrying
Value
Customer relationships7.0$1,634 $(729)$905 
Developed technology5.721,790 (7,649)14,141 
$23,424 $(8,378)$15,046 
 As of December 31, 2020
 Weighted-
Average Useful
Life in Years
Gross Carrying
Value
Accumulated
Amortization
Net Carrying
Value
Customer relationships7.0$1,652 $(678)$974 
Developed technology5.721,780 (6,563)15,217 
$23,432 $(7,241)$16,191 
12


During the three months ended March 31, 2020, we recorded an impairment charge of $2.0 million related to certain developed technology assets, due to our strategic decision to discontinue further investment and enhancements in the standalone existing technology.
We classified intangible asset amortization expense in the accompanying condensed consolidated statements of operations and comprehensive loss as follows (in thousands):
 Three Months Ended March 31,
 20212020
Cost of revenue$1,082 $1,118 
Sales and marketing58 50 
Total$1,140 $1,168 
The following table presents our estimates of remaining amortization expense for finite-lived intangible assets at March 31, 2021 (in thousands):
Remainder of 2021$3,481 
20224,620 
20232,628 
20241,952 
20251,377 
Thereafter988 
Total amortization expense$15,046 
7. Convertible Senior Notes
The following table presents details of our convertible senior notes, which are further discussed below (original principal in thousands):
Month IssuedMaturity DateOriginal Principal (including over-allotment)Coupon Interest RateEffective Interest RateConversion RateInitial Conversion Price
2023 NotesMay and June 2018June 1, 2023$230,000 0.5 %7.00 %$22.5572 $44.33 
2024 NotesAugust 2019August 1, 2024$400,000 0.5 %4.96 %$5.2809 $189.36 
2026 NotesAugust 2019August 1, 2026$400,000 1.0 %5.41 %$5.2809 $189.36 
As further defined and described below, the 2024 Notes and the 2026 Notes are together referred to as the 2024 & 2026 Notes, and the 2023 Notes and the 2024 & 2026 Notes are collectively referred to as the Notes.
In May and June 2018, we sold $230.0 million aggregate principal amount of our 0.50% Convertible Senior Notes due 2023, or the 2023 Notes, including the initial purchasers’ exercise in full of their option to purchase an additional $30.0 million of the 2023 Notes, in a private offering to qualified institutional buyers pursuant to Rule 144A promulgated under the Securities Act of 1933, as amended, or the Act. The 2023 Notes are our senior, unsecured obligations, and interest is payable semi-annually in arrears on June 1 and December 1 of each year beginning December 1, 2018.
In August 2019, we sold $400.0 million aggregate principal amount of our 0.50% Convertible Senior Notes due 2024, or the 2024 Notes, and $400.0 million aggregate principal amount of our 1.00% Convertible Senior Notes due 2026, or the 2026 Notes, including the initial purchasers’ exercise in full of their options to purchase an additional $50.0 million of the 2024 Notes and an additional $50.0 million of the 2026 Notes, in a private offering to qualified institutional buyers pursuant to Rule 144A promulgated under the Act. The 2024 & 2026 Notes are our senior, unsecured obligations, and interest is payable semi-annually in arrears on February 1 and August 1 of each year beginning February 1, 2020.
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Prior to the close of business on the business day immediately preceding March 1, 2023, or the 2023 Conversion Date, in the case of the 2023 Notes, or May 1, 2024, or the 2024 Conversion Date, in the case of the 2024 Notes, or May 1, 2026, or the 2026 Conversion Date, in the case of the 2026 Notes, the respective Notes are convertible at the option of holders only upon satisfaction of certain conditions and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the relevant maturity date. The applicable conversion rate is subject to customary adjustments for certain events as described in the applicable indenture between us and U.S. Bank National Association, as trustee, or, collectively, the Indentures. Upon conversion, the Notes may be settled in shares of our Class A common stock, cash or a combination of cash and shares of our Class A common stock, at our election. It is our current intent to settle the principal amount of the Notes with cash. During the years ended December 31, 2019 and 2020, a portion of the 2023 Notes were exchanged, as further discussed below.
Prior to the close of business on the business day immediately preceding the applicable Conversion Date, the applicable series of Notes is convertible at the option of the holders under the following circumstances:
during any calendar quarter commencing after the calendar quarter subsequent to the calendar quarter in which the applicable series of Notes was issued (and only during such calendar quarter), if the last reported sale price of our Class A common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the applicable conversion price of the applicable series of Notes on each applicable trading day;
during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the applicable series of Notes for each day of that five day consecutive trading day period was less than 98% of the product of the last reported sale price of our Class A common stock and the applicable conversion rate of the applicable series of Notes on such applicable trading day; or
upon the occurrence of specified corporate events described in the applicable Indenture.
For at least 20 trading days during the period of 30 consecutive trading days ending March 31, 2021, the last reported sale price of our Class A common stock was greater than or equal to 130% of the conversion price of the 2023 Notes on each applicable trading day. As a result, the 2023 Notes are convertible at the option of the holders during the quarter ending June 30, 2021 and were classified as current liabilities on the condensed consolidated balance sheet as of March 31, 2021. As of March 31, 2021, the if-converted value of the 2023 Notes exceeded its principal amount by $73.8 million. As of March 31, 2021, the 2024 & 2026 Notes were not currently convertible.
We may not redeem any series of Notes prior to the relevant maturity date. Holders of any series of Notes have the right to require us to repurchase for cash all or a portion of their applicable series of Notes, at 100% of its respective principal amount, plus any accrued and unpaid interest, upon the occurrence of a fundamental change as defined in the applicable Indenture for such series of Notes. We are also required to increase the conversion rate for holders who convert their Notes in connection with certain corporate events occurring prior to the relevant maturity date.
The Notes are our senior unsecured obligations and rank senior in right of payment to any of our indebtedness and other liabilities that are expressly subordinated in right of payment to the Notes, equal in right of payment among all series of Notes and to any other existing and future indebtedness and other liabilities that are not subordinated, effectively junior in right of payment to any of our secured indebtedness and other liabilities to the extent of the value of the assets securing such indebtedness and other liabilities, and structurally junior in right of payment to all of our existing and future indebtedness and other liabilities (including trade payables) of our current or future subsidiaries.
Capped Call Transactions
In connection with the pricing of the 2023 Notes, we entered into privately negotiated capped call transactions with an affiliate of one of the initial purchasers of the 2023 Notes and other financial institutions. In connection with the pricing of the 2024 & 2026 Notes, we entered into privately negotiated capped call transactions with other financial institutions. The capped call transactions are expected generally to reduce or offset potential dilution to holders of our common stock and/or offset the potential cash payments that we could be required to make in excess of the principal amount upon any conversion of the applicable series of Notes under certain circumstances, with such reduction and/or offset subject to a cap based on the cap price. Under the capped call transactions, we purchased capped call options that in the aggregate relate to the total number of shares of our Class A common stock underlying the applicable series of Notes, with an initial strike price of approximately $44.33 per share in the case of the 2023 Notes, which corresponds to the initial conversion price of the 2023 Notes, and approximately $189.36 per share in the case of the 2024 & 2026 Notes, which corresponds to the initial conversion price of each of the 2024 & 2026 Notes. Further, the capped call options are subject to anti-dilution adjustments substantially similar to those applicable to
14


the conversion rate of the applicable series of Notes, and have a cap price of $62.22 per share in the case of the 2023 Notes, and $315.60 per share in the case of the 2024 & 2026 Notes. The cost of the purchased capped calls of $19.1 million in the case of the 2023 Notes and $87.4 million in the case of the 2024 & 2026 Notes was recorded as a reduction to additional paid-in-capital.
We elected to integrate the applicable capped call options with the applicable series of Notes for federal income tax purposes pursuant to applicable U.S. Treasury Regulations. Accordingly, the $19.1 million gross cost of the purchased capped calls in the case of the 2023 Notes and the $87.4 million gross cost of the purchased capped calls in the case of the 2024 & 2026 Notes will be deductible for income tax purposes as original discount interest over the term of the 2023 Notes and the applicable series of the 2024 & 2026 Notes, respectively. We recorded deferred tax assets of $4.6 million with respect to the 2023 Notes and $20.9 million with respect to the 2024 & 2026 Notes, which represent the tax benefit of these deductions with an offsetting entry to additional paid-in capital.
In connection with the exchange agreements discussed below, we terminated a corresponding portion of the existing capped call transactions that we entered into in connection with the issuance of the 2023 Notes, which resulted in the net share settlement and our receipt and retirement of 285,466 shares of Class A common stock.
Exchange of 2023 Notes
In connection with the issuance of the 2024 & 2026 Notes discussed above, during the year ended December 31, 2019, we entered into exchange agreements with certain holders of our outstanding 2023 Notes and, using a portion of the net proceeds from the issuance of the 2024 & 2026 Notes, we exchanged $145.2 million principal amount, together with accrued and unpaid interest thereon, of the 2023 Notes for aggregate consideration of $145.4 million in cash, representing the principal and accrued interest of the exchanged 2023 Notes, and 2.2 million shares of Class A common stock. Other than this exchange, we have received immaterial requests for conversion since the 2023 Notes initially became convertible but did not receive any additional requests for conversion during the three months ended March 31, 2021.
The Notes consisted of the following (in thousands):
As of March 31, 2021As of December 31, 2020
2023 Notes2024 Notes2026 Notes2023 Notes2024 Notes2026 Notes
Liability:
Principal$84,748 $400,000 $400,000 $84,748 $400,000 $400,000 
Less: debt discount and issuance costs, net of amortization(10,986)(54,487)(81,163)(12,129)(58,148)(84,351)
Net carrying amount$73,762 $345,513 $318,837 $72,619 $341,852 $315,649 
Equity, net of issuance costs$46,473 $69,749 $93,380 $46,473 $69,749 $93,380 
The following table sets forth interest expense recognized related to the Notes (in thousands):
Three Months Ended March 31,
20212020
Contractual interest expense$1,606 $1,606 
Amortization of debt issuance costs and discount7,992 7,675 
Total$9,598 $9,281 

15


8. Equity Awards
Stock Options
Stock option activity during the three months ended March 31, 2021 consisted of the following (in thousands, except weighted-average information):
Options
Outstanding
Weighted-
Average
Exercise
Price
Options outstanding at December 31, 20202,071 $60.22 
Granted178 94.86 
Exercised(84)15.41 
Canceled/forfeited(128)97.82 
Options outstanding at March 31, 20212,037 $62.71 
As of March 31, 2021, there was $37.4 million of unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a weighted-average period of 2.2 years.
Valuation Assumptions
The following table presents the weighted-average assumptions used for stock options granted under our 2017 Equity Incentive Plan for each of the periods indicated:
Three Months Ended March 31,
20212020
Expected term (in years)5.85.8
Estimated volatility57 %43 %
Risk-free interest rate1 %1 %
Estimated dividend yield %