ASC 606OVERVIEW FOR INVESTORS

©2019 Alteryx, Inc.

ASC 606OVERVIEW FOR INVESTORS

©2019 Alteryx, Inc.

OVERVIEW

2

• As of December 31, 2018, Alteryx no longer qualified as an emerging growth company (EGC).

• Consequently, Alteryx will adopt ASC 606 upon filing of its Form 10-K for the year ended December 31, 2018. The modified retrospective method was used, meaning that our annual and quarterly results for 2018 will be recast.

• Amounts related to periods before 2018 will be reflected in beginning retained earnings as of January 1, 2018.

• Q4 and full year 2018 results are reported under both ASC 605 and ASC 606 for comparability.

©2019 Alteryx, Inc.

REVENUE ACCOUNTING STANDARD ASC 606 OVERVIEW

3

1. Identify the contract with the

customer

2. Identify the separate

performance obligations in the contract

3. Determine the transaction

price

4. Allocate the transaction price to the

separate performance obligations

5. Recognize revenue when

(or as) the entity satisfies a

performance obligation

©2019 Alteryx, Inc.

4

W H AT W O N ’ T C H A N G E :Our day-to-day operations or business practices. We will continue to invoice annually in advance. The adoption of ASC 606 will have no significant impact on cash flows or contract terms.

ASC 606 IMPACTS

W H AT W I L L C H A N G E :Going Forward:

Revenue: Subscription contracts will have multiple performance obligations, resulting in approximately 35-40% of total contract value (TCV) being recognized as revenue on the date the platform is first made available, or the beginning of subscription term (if later). The remaining 60-65% will be recognized over the remaining subscription term.

Upon Adoption: Retained earnings: A $64.2 million adjustment to retained earnings as of January 1, 2018 related to ASC 606 adjustments for periods before 2018.Deferred revenue: A $96.7 million reduction in deferred revenue as of December 31, 2018, related to upfront revenue recognition under ASC 606 for prior periods.

©2019 Alteryx, Inc.

KEY ASC 606 DIFFERENCES

5

ASC 605 ASC 606

Subscription revenue recognition Recognized ratably over the life of the contract. Approximately 35%-40% of total contract value (TCV) recognized as revenue upon contract signing (or subscription start date, if later). The remaining 60-65% of TCV is recognized over the life of the contract. Subscription terms range from one to three years, with an average duration of two years.

Services revenue recognition Recognized upon delivery of services. Recognized upon delivery of services (unchanged).

Sales commissions Capitalized and amortized over contract term. Capitalized and amortized over time. Sales commissions expense will closely track our revenue recognition model, with a portion of expensed up front and the remainder amortized over time.

Deferred revenue Represents contractual amounts invoiced but not yet recognized as revenue.

Represents contractual amounts invoiced but not yet recognized as revenue (unchanged).

Contract asset Not reported. Represents unbilled amounts for which the amount of revenue recognized exceeds the amount invoiced. Reported quarterly.

Unrecognized remaining performance obligations

Not reported. Represents the amount of contractual obligations that have not been recognized as revenue. Reported quarterly.

©2019 Alteryx, Inc.

AN EXAMPLE

Year 1 Year 2 Year 3 Year 4

Revenue Invoicing

6

Deal termsTotal contract value (TCV): $300Duration: three yearsClose date: July 1, Year 1Invoicing: annually in advanceRevenue recognition assumption: 35% upfront, 65% ratable over contract term Revenue recognition commences: July 1, Year 1

Year 1 Year 2 Year 3 Year 4

Revenue (up front) $105 $0 $0 $0

Revenue (ratable) $32.5(6 mos)

$65 $65 $32.5(6 mos)

Invoicing $100 $100 $100 $0

Deferred revenue $0 $0 $32.5 $0

Contract asset $37.5 $2.5 $0 $0

Unrecognized remaining performance obligations

$162.5 $97.5 $32.5 $0

©2019 Alteryx, Inc.

KEY METRICS ASC 605 ASC 606

Land & Expand model success Dollar based net revenue retention (GAAP revenue based).

Dollar-based net expansion (ACV based).Please refer to Appendix for definition.

Future growth Net new customers. Net new customers.

7©2019 Alteryx, Inc.

APPENDIX

9

DEFINITION: DOLLAR-BASED NET EXPANSION

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. 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 with 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.

© 2019 Alteryx, Inc.

THANK YOU