AYX: Q and A notes

Investment Analysis Clubs Saul’s Investing Discussions
1

Another Alteryx conference call review, feel free to skip.

I focus on the Q and A to see if any gems are of interest.

Alteryx is an interesting company, I consider them an example of a tech company with no technical moat (there are several of competitors doing similar stuff), but seem to have a significant executional moat. And they appear to be executing very well.

Points I noted:

  1. They’re growing up. The departure of the CTO, the re-focusing of the sales approach (making sure that top-down C-suite discussions are happening at the same time as bottom-down analyst discussions) indicate (to me) a business thats aiming to become the default in this space.

  2. People using VLOOKUP in Excel (look up a value in a big table) is their proxy for ‘Citizen Data Scientist’ which is where they got 30 million users.

  3. Cloud version of Designer. I postulated about this in my previous deep dive based on job postings, and they are working on it, but not much interest from customers.

  4. Growth in predictive versus data prep, last year 45% were using predictive (building advanced analytics models) versus 57% this year. Definitely moving more into the data science space.

  5. Haven’t seen anything about Tableau Prep in the market.

  6. Partners provide vertical solutions, and are building whole vertical solutions based on the Alteryx platform. Thinking about a marketplace where partners can sell their vertical solutions.

  7. Connect and Promote. Not much to report.

  8. Upgrading last-gen BI tools is a $20b TAM.

  9. ‘Visualytics’ - Hadn’t heard this phrase previously. They talked about embedding visualisations all through the data prep/analytics pipeline, rather than just the ‘Tableau at the end of the cliff’ approach. This makes a lot of sense to me, and looks like a improvement on Tableau’s offering. Tableau’s lack of data prep means that Tableau reps still contact Alteryx to try and get big sales.
    “The realities we’re hearing more of Tableau reps coming to us looking for additional assistance that perhaps then blocks some of their larger deals that they’re trying to get to.”

cheers
Greg

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