Customer Retention: Alteryx’s Key to Success for Company Growth
Alteryx Inc. is a computer software development company that primarily produces data analytic tools used by its clients to blend data as well as for more advanced data analysis. These could then be used for trend recording and to forecast the markets. The company, previously known as SRC LLC, was started in 1998 by Dean Stoecker, Olivia Duane Adams, and Ned Harding. It first specialized in the development of demographic software, producing tools that could map data from different areas around the United States. The company was the inventor of Solocast, an instrument that enabled businesses to track their returns by customer location. SRC LLC released the product Altery in 2006, to provide an environment for firms to be able to build analytical processes and applications. This software was SRC’s primary product, and in 2010 SRC consequently changed the name of its business to Alteryx. The enterprise currently provides two main tools: Alteryx Designer and Alteryx Server. Further, it hosts a website known as Alteryx Analytics Gallery.
The company filed to go public on February 24th this year hoping to raise up to $75 million from its release. However, on March 23rd, the issuance of this new company exceeded expectations. Alteryx sold 9 million shares at $14 per share, thereby raising $126 million in its release. This was on the high end of its share price range, which was $12 – $14 per share. Underwriters for this company’s issuance included Goldman, Sachs & Co., JP Morgan, Securities LLC, Pacific Crest Securities, William Blair & Co., JMP Securities, Raymond James & Associates and Cowen and Co.
The success in trading for this data analytics company did not stop there. On its first day of trading under the ticker “AYX”, the firm’s stock opened trading floors at a high of $17.25 – a $3.25 increase from its issuance price. The rise translated to share value increasing by 10.7 percent. It closed the day at $15.50, still well over stock prices during its IPO.
Aleryx’s books appear to be in order as well. In 2016, the company raised a revenue of $69.76 million, up by 61 percent from the previous year. Alteryx’s CEO Dean Stoecker says that the Corporation will use the proceeds from its release for the business’s expansion. In line with the firm’s growth, the company cited that it planned to expand its current clientele. Alteryx already serves companies such as Coca-Cola and Unilever. Additionally, the firm plans to broaden its customer base across international markets. The company also planned to improve the delivery of most of its services, mainly focusing on its cloud-computing capabilities and the development of its distribution channels.
The firm’s CEO cited the reasons for the company’s success so far as the increasing use of technology in corporate areas as well as Alteryx’s high rate of customer retention. Greater technology use in businesses means that these enterprises require more information concerning the functioning of their companies. This would consequently lead to better administrative decisions and in turn, business efficiency. In its growth, however, Alteryx will face seasoned competitors such as IBM, Microsoft, and Oracle. It will have to step up its expertise so as to be able to compete with these technology giants and gain a foothold for itself in international markets. All the same, what we can say about this company is so far, so good.