New Full Position 3.

And from one of the comments to Bert’s article:

Asteryx has best in class:
gross margins,
CAC (customer acquisition cost),
LTV(long term value)/CAC,
net revenue retention and
overall revenue growth and is
less than 1% penetrated

After all that enthusiasm, here are some of the figures I got from the December Investor’s Presentation:

TTM Revenue - $118 million, up 52% from $78 million
Subscription Revenue – over 95% of total revenue
TTM Dollar Based Retention Rate133% and accelerating.
Cohort Revenue Growth: -


**2014 cohort** revenue grew to **170%** of base revenue in one year, and to **270%** of base revenue in two years.
**2015 cohort** revenue grew to **190%** of base revenue in one year. 

Adj Gross Margin86%
Total Customers – 3054 plus
Customers include Ford, GE, Microsoft, Shell Oil, HP, BBC, etc, etc

Adj Op Margin was
-36% in 2015
-23% in 2016
-9% in first 9 mo of 2017

Saul

10 Likes

Had to look up “cohort revenue” as I’ve never heard the term before. Still not very clear to me even after reading an explanation. One thing that struck me was that one needs two years of monthly data in order to collect sufficient data points to make a statistically valid statement.

As I don’t really quite grasp this concept and I am also unsure that Asteryx meets the two year criteria, would you (anyone) take a stab at elaborating on this term? If you can also show that Asteryx has, or likely has two years of data collection, that too would be helpful.

er, “Alteryx” not “asteryx”, oops

Had to look up “cohort revenue” as I’ve never heard the term before. Still not very clear to me even after reading an explanation. One thing that struck me was that one needs two years of monthly data in order to collect sufficient data points to make a statistically valid statement. As I don’t really quite grasp this concept and I am also unsure that Asteryx meets the two year criteria, would you (anyone) take a stab at elaborating on this term? If you can also show that Asteryx has, or likely has two years of data collection, that too would be helpful.

Hi Brittlerock,

This is a concept that Wix uses as well. Here’s what I wrote: 2014 cohort revenue grew to 170% of base revenue in one year, and to 270% of base revenue in two years. What I believe it means is that if you take the new customers who signed on in 2014, and take their initial monthly spend, a year later their monthly spend was 170% as big (70% larger), and two years later their monthly spend was 270% as big (170% larger).

I then said: 2015 cohort revenue grew to 190% of base revenue in one year, which meant that the 2015 new sign-ups grew from their initial spend even faster, and were spending 90% more a year later (which is all the data we have until the end of this year).

Saul

4 Likes

It’s not this, either:

http://asterix.com/

Thanks Saul,
I think I’m a little clearer on this . . .

I’ve been perusing the Alteryx website since I read your posts. Really interesting family of products. I guess they’ve partitioned their offering into a suite of products because of the need to address different user groups (some IT folks, some statisticians, some end user business groups, etc.) but in fact, you pretty much need everything they offer at once. It’s not like you can start with the Designer Product and 6 months later bring in the Server product and so forth. A company needs to buy everything all at once.

They skirt some important issues, most notably data quality, they acknowledge it, but don’t really address it. The old adage GIGO (garbage in, garbage out) remains true irrespective of how powerful one’s analytical tools may be. I won’t belabor this with examples, take my word for it, in my tenure in IT working predominantly with applications and information (very little experience with h/w and networks) data quality was a perennial problem. It’s my perception that a partnership with Varonis could be highly beneficial to both companies. I wonder if either company is aware of the other?

I was looking for a scaled down, individual user product, but they don’t have one. This could serve as a powerful analytical for individual investors, but alas, they don’t address the individual user audience. I couldn’t even access some of the demos and literature because I didn’t have a valid business email address (I probably could have used my former company email address, but thought it a bit dishonest).

Looking through their list of customers and industries I was surprised that I didn’t see any news, political, governmental, legal or police organization. Just one example: I’m familiar with some of the research problems associated with discovery during litigation. Often, teams of high-priced outside attorneys are hired to review mountains of documentation in search of admissible evidence. These days, the majority of this information is electronic. Even paper documents can be fed through high speed OCR readers and rendered electronic with very high accuracy. At first blush, this tool suite appears that it could save an enormous amount of man-hours spent on document reviews and investigations.

I don’t know if you looked at their investor presentation, but it’s pretty compelling. It can be viewed here: https://investor.alteryx.com/investor-home/default.aspx

In summary, I’m impressed with the products.

One more question. In that you are generally 100% invested, care to reveal what you sold in order to buy Alteryx?

4 Likes

I don’t know if you looked at their investor presentation, but it’s pretty compelling. It can be viewed here: https://investor.alteryx.com/investor-home/default.aspx

Heck yes! I certainly looked at the investor presentation, especially the numbers (I don’t really understand the products, but the numbers told the story!

Saul

is Alteryx a variant of Altera? any connection there?

To expand on the adj. operating margins, which Saul has pointed out, have improved from -36% to -23% to -9% thru 9 months this year.

The first 9 months this year compared to last with rev growing 50%+:

The R&D spend has been increasing about 70%. Positive in my book.

The Sales and marketing costs have only increased about 15% (might be lower than this on a non-gaap basis, I saw the Gaap numbers). Tells me they have a strong product, and can sell it without a bunch more sales people. Big Positive for me.

The G&A costs have doubled, but this is to be expected because they just became public so more costs because of public company requirements. Should be leverage to operating margin next year.

Jimbo

4 Likes

I’m not 100% sure, but I don’t think there’s any connection.