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Alteryx Idea Proposal (AYX)

Alteryx Idea Proposal (AYX)
 

Is the competitive risk to Alteryx growing?

Report Available: January 23, 2020

 

Blueshift’s ongoing research found AYX growing at a healthy clip as one of the leading providers of data preparation software. There are numerous competitive threats, however, including Tableau Prep – now owned by CRM – and several smaller companies with strong features and lower costs. New data warehousing platforms that separate analytics from storage functions could also throw a wrench into AYX’s growth plans.

 Observations

  1. Blueshift’s April 4 report found AYX in a great position to fend off competitors of its data preparation and analytics software. AYX customers and partners said the company’s tools make it incredibly easy for business users with no technical expertise to gather and manage data for analysis. Sources also said the number of AYX licenses is growing within their companies, and organizations that adopt AYX are extremely likely to stick with it, mainly because AYX is so good that users are loath to change. AYX provides great value despite its high price, eight sources said, and quickly pays for itself with the time it saves employees.
  2. Since that report, AYX has continued to fire on all cylinders. Its Q3 revenues shot up 65% year-to-year to $103 million, and its dollar-based net expansion rate – a measure of whether existing customers are spending more with the company – came in at an impressive 132%. Its customer count topped 5,600 at the end of Q3, a 30% increase from a year earlier. With the strong results, executives pushed their full-year revenue guidance to about $390 million, which would represent more than a 50% increase over last year. The company said it is benefiting from increased automation of data science tasks. To that end, AYX announced in October that it was acquiring Feature Labs, a data science software company launched out of MIT that automates feature engineering for machine learning and artificial intelligence applications.
  3. Even with its recent success, AYX hardly has the data wrangling market to itself. The global market for data prep software forecast to reach $11 billion by 2026, according to one report. Among the biggest names in AYX’s competitive set is Tableau Software Inc., which rolled out its Tableau Prep tool in 2018. The early iterations of Tableau Prep were considered inferior to AYX, but in June, Tableau was acquired by CRM for $15.7 billion, giving it a deep-pocketed backer. It is not clear how the acquisition will affect Tableau Prep’s evolution, but during its November user conference, Tableau unveiled several updates to its data prep tool. Multiple Blueshift sources said in April that while Tableau Prep was primitive compared to AYX’s comprehensive solution, they could envision it becoming a threat to AYX given its significantly lower price and Tableau’s broad customer base of data visualization software users.
  4. Blueshift sources also identified KNIME AG and DataRobot Inc. as among the leaders of a group of smaller key competitors to AYX. One IT partner said he recommends KNIME over AYX to certain clients because it is free and just as powerful. Others said that smaller competitors like DataRobot and Trifacta perform certain tasks better than AYX, but none offer the breadth of AYX’s platform. It is possible that data warehousing solutions, like Snowflake’s cloud-built platform, could make prep software like AYX’s less useful.

 

Are competitors closing the gap on AYX? Has Tableau Prep improved to the point of being a threat? What does AYX have to do to fend off competitors? Does AYX have pricing power? Are customers using AYX as an analytic and statistical tool? To answer these and other questions, Blueshift will gather data and issue a market research report from independent sources in the following areas: Alteryx customers, Competitor customers, Competitors, Alteryx partners, and Industry specialists.  

 

Companies: Alteryx (AYX), Salesforce.com (CRM)

 

Research Begins: January 6, 2020

 

To see other ideas Blueshift Research is currently working on, please click here.

 

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