About Delphix
Delphix speeds up the transition of companies to digital technologies. Its Data Platform helps businesses accelerate the journey to the cloud, transform customer experiences and increase the adoption of disruptive AI technologies.
Jedidiah Yueh, a Harvard graduate, founded the company in 2008 in Silicon Valley. Two years earlier he sold his first tech company to the Dell EMS empire for $165M.
Delphix has over 300 customers worldwide, including 24 companies on the Fortune 100 list. It has clients in completely different verticals such as Facebook, Fastweb, Vertex, Gain Capital, BECU, Allstate, Vodafone, etc.
Business Growth Phase
Market Opportunities
The global enterprise data management market size is expected to reach $265.68B by 2030, registering a CAGR of 14%. Key drivers of growth are the process of digitalization, accelerated by the pandemic and implementation of the Internet of Things. The company pegs its potential market at $40B. Some analysts estimate it at $60B.
In 2020, demand for Delphix solutions increased significantly as many companies migrated to the cloud and Delphix Data Platform provided them a convenient and secure remote access to their data. The Delphix Consumer Loyalty Index (NPS) was 89 out of 100 during the fiscal year ending January 2021. It is a high level that shows loyalty and support of clients.
Financials and Valuation
In February 2019, the company reported that it had reached over $100M in annual revenue. According to the 2018 Deloitte North America Technology Fast 500, the company’s revenue increased by 318% between 2014 and 2017. In 2020, thanks to a sharp increase in demand, Delphix’s revenue increased by more than 85%. In February 2021 the company reported that it has achieved profitability.
The company has raised about $120M from 11 investors, including Greylock Partners, Battery Ventures, Icon Ventures and others. The Series D funding round in July 2015 valued the company at $1B and in October 2021 it has raised an additional amount of money through this round.
Risks
The market for data management solutions is highly competitive. Delphix competes with both major tech giants such as Google, IBM, SAP, Oracle, Microsoft and private companies such as Rubrik, Cohesity, Denodo.
The main risk for these companies is cyberattacks. Enterprise data demands continue to increase, magnifying compliance and security risks. In addition to the increase in data volume, the number of endpoints is growing. This makes companies more vulnerable and requires vendors of data management solutions to devote special attention to the safety of data.
Low liquidity: investing in private companies at the pre-IPO stage is an opportunity to make money over a few years. If you exit early, the price may be significantly different from the purchase price or the selling process may take more than 1 month.