| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Alteryx, Inc. is a leading provider of analytic process automation (APA) solutions, empowering organizations to transform data into actionable insights. Headquartered in Irvine, California, Alteryx serves a global clientele across industries such as retail, financial services, healthcare, and the public sector. The company’s flagship platform integrates data preparation, blending, advanced analytics, and machine learning into a unified workflow, enabling business analysts, data scientists, and engineers to enhance productivity and decision-making. Key products include Alteryx Designer, Alteryx Server, and cloud-native solutions like Alteryx Designer Cloud and Alteryx Machine Learning. With a strong focus on democratizing data analytics, Alteryx bridges the gap between technical and non-technical users, fostering collaboration and automation. Despite operating in the competitive Software-as-a-Service (SaaS) sector, Alteryx differentiates itself through its end-to-end analytics capabilities and strong enterprise adoption. The company’s 2023 revenue approached $970 million, reflecting its growing market presence, though profitability remains a challenge with a net loss of $179 million. As businesses increasingly prioritize data-driven strategies, Alteryx is well-positioned to capitalize on the expanding demand for scalable, user-friendly analytics solutions.
Alteryx presents a compelling investment case due to its strong market position in analytic process automation and a growing demand for data analytics tools. The company’s revenue of $970 million in 2023 underscores its traction, though investors should note its net loss of $179 million and high total debt of $1.3 billion. With a low beta of 0.485, Alteryx exhibits lower volatility compared to the broader market, which may appeal to risk-averse investors. The lack of dividends suggests a reinvestment strategy focused on growth. Key risks include intense competition from larger SaaS players and the need to achieve sustained profitability. However, its robust cash position ($530 million) provides liquidity for innovation and acquisitions. The stock’s appeal hinges on Alteryx’s ability to scale its cloud offerings and improve margins in the coming years.
Alteryx competes in the crowded analytics and data science platform market, where differentiation is critical. Its primary competitive advantage lies in its end-to-end APA platform, which combines data preparation, advanced analytics, and machine learning in a single environment. This integration appeals to enterprises seeking to streamline workflows and reduce reliance on multiple tools. However, Alteryx faces stiff competition from larger, more diversified SaaS providers like Salesforce and Microsoft, which offer embedded analytics within broader ecosystems. While Alteryx excels in usability for non-technical users, competitors like Databricks dominate in scalable, engineering-heavy data processing. The company’s cloud transition (e.g., Designer Cloud) is a strategic response to market shifts but lags behind native cloud players. Pricing is another challenge, as Alteryx’s premium positioning may limit SMB adoption. Strengths include a loyal enterprise customer base and strong vertical-specific solutions, but weaknesses include slower cloud adoption rates compared to peers and reliance on perpetual licenses. To maintain its edge, Alteryx must accelerate cloud innovation, expand partnerships, and demonstrate clearer ROI for cost-conscious buyers.