Alteryx Is A Pure Play On The Democratization Of Analytics
In a note released on Tuesday, William Blair termed Alteryx Inc (NYSE: AYX) as a pure-play on democratization of analytics.
Given that the company's service enables more people in an organization to access information, perform analysis, and share results without assistance from technical specialists, the firm indicated Alteryx accelerates the pace of intelligent decision-making.
The company has, thus, won over 2,300 customers, driving 59.4 percent revenue growth in 2017, the firm added.
Analysts Bhavan Suri and David Griffin estimate that global data volumes will increase to 44 zettabytes in 2020 from 4.4 zettabytes in 2013. According to the analysts, the driving factors were the secular adoption of mobile devices, social media, cloud services and other technology paradigms.
The analysts' fieldwork indicated the usage of data to drive competitive advantages would translate to a healthy demand backdrop for modern analytics platforms that's likely to persist for several years.
Potential for Expanding Market
William Blair estimates the business intelligence and analytics software market to grow to $22.5 billion in 2020 from $18.1 billion in 2017, representing a 7.5 percent compound annual rate.
Accordingly, the firm sees potential for Alteryx to expand the market by leveraging its self-service design characteristics to drive adoption among the estimated 296 million information workers who rely exclusively on spreadsheet software.
"We estimate that 10% penetration of this group would expand the addressable market by $14.8 billion," the firm said of the market opportunity.
The firm believes at current levels, the shares are attractively valued.
As such, William Blair initiated coverage of Alternyx with an Outperform rating.
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Latest Ratings for AYX
Apr 2017 | Raymond James | Initiates Coverage On | Outperform | |
Apr 2017 | Cowen & Co. | Initiates Coverage On | Outperform | |
Apr 2017 | JMP Securities | Initiates Coverage On | Market Outperform |
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