Here are some reasons I got excited, from that write-up:
Alteryx is attempting to build a new category - a platform that combines both data integration and high end analytics, targeting the emerging category of citizen data analysts.
It feels that its TAM is about $10 billion.
It is cash flow positive, and its loss level is far less than some other well-known vendors in the data analytics space.
Its valuation in comparison to other hyper-growth vendors is moderate at less than 6X EV/S.
Some notable current users include Accenture, Coca-Cola, BP, and Ford.
The dollar based net revenue retention was 134%, a very strong number compared to many other companies with similar sales strategies.
Overall, the basic strategy is land and expand. The cohort analysis suggests that it is working effectively.
Customers placed Alteryx almost at the top for overall customer satisfaction and delivery of business value according to Gartner
Alteryx was cash flow positive in both of the first two quarters of this year and it forecasts that it will be cash flow positive going forward
Bert thought it was a potentially very profitable investment with a reasonable set of risk and rewards and worth starting at least a starter position.
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Its valuation in comparison to other hyper-growth vendors is moderate at less than 6X EV/S.
Hi Saul,
Looking at MStar and Google Finance, I get an EV of $1.5bn and TTM sales of $118m for an EV/S of about 13x.
Still looks interesting though!
Best,
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I get an EV of $1.5bn and TTM sales of $118m for an EV/S of about 13x. Still looks interesting though!
Hi Najdorf,
I think Bert was thinking of forward (2018) sales.
Saul
Hi Najdorf,
I think Bert was thinking of forward (2018) sales.
Saul
Thanks, Saul.
Of course I immediately thought of that after hitting the Send button. Ah, TMF with your wacky 1999-era no-edit feature!
Less than 6x EV/Expected sales looks worth investigating in this space. Triple-digit growth is always a nice feature on a growth stock.
best,
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Of course I immediately thought of that after hitting the Send button. Ah, TMF with your wacky 1999-era no-edit feature!
Hi again
Less than 6x EV/Expected sales looks worth investigating in this space. Triple-digit growth is always a nice feature on a growth stock.
I’d guess 2017 sales will come to about $133 million at the current rate of growth. At a slightly slower rate of growth, 50% would get us to $200 million in 2018.
Saul,
please correct me if I am wrong, but have you written about any concerns you have in this company?
I read your posts first, and thought to myself that there could be a correlation to other companies we have looked into on this board. Do you see them as well? ie. Talend.
Then I read Berts article and found:
“many product analysts do compare Alteryx to Talend and that is probably a situation not lost on the people who run Talend-and all of the other ETL vendors. The potential exists for someone in the ETL space to attempt to develop the kind of high-end analytic tools and integrate those with an existing self-service ETL solution. Again, something to watch-not something that currently exists.”
Does owning both Talend and Alteryx bother you? I know Bert, and Alteryx, believe they are not related but it seems that Gartner and other emotional humans ie. analysts (and the market) might be similar.
I own both, and made the comparison in my mind fairly quickly as I read about Alteryx.
Another (maybe positive) concern about the growth rate and TAM that I have is that they might be acquired (maybe by Talend:)).
Thanks again,
Robert
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thought to myself that there could be a correlation to other companies we have looked into on this board. Do you see them as well? ie. Talend.
I know they do collaborate with Talend, and they don’t seem to be direct competitors at the moment.
Saul