Leadership Transition and Vision
Andy MacMillan, the newly appointed CEO of Alteryx, officially assumed his role on December 4, 2023. He takes the helm at a crucial time for the data management company, which recently transitioned to private ownership after 26 years as a public entity. MacMillan, previously CEO of UserTesting and Act-On Software, sees Alteryx as uniquely positioned to meet the growing demand for AI-ready data preparation.
“The next big challenge for companies rolling out AI is getting their data ready,” MacMillan said in an interview. “Alteryx is in a pivotal position to be the platform that people use to prepare their data for AI.”
Overcoming Past Challenges
Alteryx has faced significant challenges in recent years, including delays in cloud adoption, executive turnover, and declining revenue growth. While competitors like Informatica quickly embraced cloud-native solutions, Alteryx was slower to pivot, launching its first fully cloud-native platform only in February 2023.
The company also struggled to integrate key acquisitions, such as Trifacta and Hyper Anna, which added valuable capabilities but initially made the platform more complex. Revenue growth dropped from 75% year-over-year in Q4 2021 to under 8% in Q3 2023, and its stock price fell from $178 in 2020 to under $30 in August 2023 before recovering slightly to $48 at the time of its acquisition by private equity firms.
MacMillan believes the shift to private ownership will provide the flexibility needed to stabilize and refocus. “Being private allows us to make transformational changes more easily,” he said.
Accelerating Cloud-Native Transformation
A key priority for MacMillan is strengthening Alteryx’s cloud-native capabilities. Originally designed for desktop users, the company must now adapt to a world increasingly reliant on cloud-based data solutions.
“We’ve built a lot of cloud technology in the last couple of years,” MacMillan noted. “Now, we’re seeing a big uptake as customers adopt the cloud platform first.” While Alteryx will continue supporting both desktop and cloud users, the company is making cloud adoption a top priority to attract new customers.
Restoring Growth Momentum
To reignite growth, MacMillan aims to leverage Alteryx’s core strengths while resolving past integration challenges. “We’ve made ambitious acquisitions, and while integration took longer than expected, much of that is behind us now,” he said.
The company is also enhancing usability and engaging more closely with its community of certified users. “We’ve done a good job pulling the acquisitions together more closely,” MacMillan added.
Capitalizing on the AI Boom
MacMillan sees AI as a major growth opportunity for Alteryx. He envisions the platform as the essential workspace for preparing data for AI-driven applications. “AI is going to be one of the biggest problem sets for companies,” he said. “We want to be the critical layer in the stack that helps businesses get their data ready for AI.”
Alteryx is also investing in AI-powered features within its platform, such as AI-assisted coding environments and advanced data traceability tools. “Having an AI agent that can help users pick the right model or extract insights is an exciting development,” MacMillan said.
Future Plans and Potential IPO
While MacMillan’s current focus is on stabilizing and expanding Alteryx, he hasn’t ruled out a return to the public markets. “Being public is a great way to grow a company and do acquisitions,” he said. “When the time is right, we might take Alteryx public again.”
For now, the company is prioritizing product cohesion and ensuring customers can seamlessly use Alteryx in public clouds, private data centers, or hybrid environments. “Our goal is to be the canvas where businesses solve their data problems,” MacMillan said.
Key Takeaways
- Leadership Vision: MacMillan is positioning Alteryx as the premier platform for AI-driven data preparation.
- Cloud Acceleration: Strengthening cloud-native capabilities is a top priority.
- AI-Powered Innovation: Alteryx is integrating AI tools to enhance user productivity and data management.
- Growth Strategy: The company is stabilizing post-acquisition and may consider a future IPO.