Quick thread on why $AYX is a triple digit market cap software company in the making:
1/ $AYX is the leader in BI/data analytics for the enterprise business unit. They are one of the few end-to-end solutions in the BI analytics space.

2/ Their target audience are business analysts, project managers, planners and other business unit function experts. This audience was previously neglected. However, their capabilities are also advanced enough for the enterprise data scientist.

The company was founded in 1997 but IPO’d about 3 years ago. The push to go public was as a result of seeing a significant strategic push towards digital transformation and ‘business intelligence’ at the enterprise and business unit level.

4/At present, the enterprise data analytics market is quite siloed: There are solutions to prep data, to blend it, to analyze and to visualize. There are also solutions designed for scientists. These make up the BI/analytics value chain. $AYX brings this all together.

5/ As companies evolve, there is a requirement to be smart, productive and efficient. The demand for ML/AI, supply chain optimization, intelligence, automation and cost cutting are all at top mind at the board level. This presents decades-long demand for $AYX solutions.

6/ The company competes with other vendors across the analytics value chain: SAP, Tableau for visuals, $MSFT for BI, Sisense to analyze or visualize, even Excel to prep. $AYX also integrates with all these platforms as end-users can use one platform for different reasons.

7/ This makes the total intelligence market large: at present over $40 billion and growing. Further, global spending on solutions that enable the digital transformation of business practices, products, and organizations is forecast to reach $1.97 trillion by 2023.

8/ The business is growing rapidly and is of high quality (40%+ rev. growth, GM near 90%, FCF positive and double digit ROIC). Recently, the company married business process management with analytics via its APA platform, thereby expanding its TAM.

9/ The company offers on-prem., cloud integration (via Azure or AWS) and hybrid solutions for its customers. The flexibility and quality of the solution is now making it the go-to solution in the self-serve analytics market.

10/ Similar to $TEAM, $CRM or $NOW, $AYX is a pioneer in its field and will look to evolve within the BPM, PM, intelligence and data science markets by acquiring and offering complimentary ‘business unit’ solutions, continuing to expand its TAM.

11/ In the short term, it is a little rich from a P/S perspective given the recent run-up from March lows, but on dips is one of the few mid-cap (soon to be large cap) fast growers that in the long run can reach the coveted mid-triple digit billion market cap valuation./