The company is already in Dizraptor’s portfolio since Sep 23. New offerings are possible in the future
About the Company
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. It enables modern CI/CD workflows, their security, and confidentiality.
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 Corp. 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.
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.
As Delphix business picked up in the pandemic, the CEO of the company said SPACs began reaching out, offering to merge and go public. But Mr. Yueh said he hadn’t decided if Delphix would go public through a traditional offering or another route, such as a “direct listing” or SPAC.
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 (invested in Facebook, Dropbox, Okta), Battery Ventures (invested in Sprinklr, Fastly, JFrog), Icon Ventures (invested in FireEye, Teladoc Health, Coupa Software) and others. The Series D funding round in July 2015 valued the company at $1B and in October 2021 it has raised additional amount of money through this round.
In terms of product, Delphix can be compared to public companies Snowflake, Splunk, and private companies Rubrik and Cohesity. Delphix CFO has a long history of IPO divestment: he led ONI Systems' IPO, was the CFO of ArcSight Inc., led their successful IPO and ultimate sale to HP for $1.75B.
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. Today, companies need data for a range of digital transformation programs – data for CI/CD test environments, cloud migration trials, and AI/ML model training. In addition to the increase in data volume, the number of endpoints is growing due to the transition of many companies to a remote format of work and the development of the Internet of things. This makes companies more vulnerable and requires vendors of data management solutions to devote special attention to the safety of data.
About the company, Delphix website, December 2021
Global $208 Billion Enterprise Data Management Markets to 2028 - Increasing Need for On-Time Data Delivery with Accuracy, PR Newswire, September 2021
Delphix Appoints Proven Industry Leader as Senior Vice President of International Operations, Delphix website, June 2021
Delphix Grabs $75M at Near $1B Valuation, PitchBook, July 2015
'The Market Seems Crazy': Start-Ups Wrestle With Flood of Offers, The New York Times, March 2021