When was the last time that you had pizza night?
Of course, you could grab one at the grocery store, or visit one of the local mom and pop pizza shops. Or maybe you grabbed a hot pie from Pizza Hut or the largest pizza chain by revenue – Domino’s.
No, I’m not recommending that you buy shares of Domino’s. But their shares have had a good run the past few years. The story of how Dominos used technology to transition into the future is a perfect example of how one specific company is making it mark on businesses everywhere…and in turn will make profits for investors.
What started out as a single store in Ypsilanti Michigan is now 17,600 stores in over 90 markets. That equates to more than 3 million pizzas each day all over the world. This seemingly simple pizza company ranks among the world’s top public restaurant brands.
Dennis Maloney is Domino’s chief digital officer. He’s quoted frequently for explaining that Domino’s “used to be a pizza company that sells online, and we needed to become an e-commerce company that sells pizza.”
It really has started to turn into an e-commerce company that sells pizza. The company built an app so that pizza can be tracked from order to door. And consumers have the ability to order a pizza from their smart watch, television, or social media platform.
This all came from the realization that the company was taking in data from over 85,000 structured and unstructured sources and that the internal teams were unable to get what they needed. Improvements could not be made, and goal could not be met without the proper data analytics. And the proper IT architecture wasn’t there to make it happen.
What the company really needed was a platform that would capture, standardize, and store data so it could be analyzed by any department in the company at any time. But we’re talking about a pizza company here. Not a company that has teams of coders and IT specialists just sitting around.
But why reinvent the wheel anyway?
Instead, the company wanted to find something that would work with their current ecosystem. A platform that would be able to talk to all its data sources and run in its own private cloud. It quickly found it’s solution in the data integration specialist that I want to tell you about today.
Embracing the data and implementing digital tools saved Domino’s and catapulted it into the future. And think if digital was so important to a pizza company, just think about how important they are to the companies in technology, biotech, or defense.
The company that I have for you today is not only the company behind Domino’s massive data analysis, but many other household names. And the demand for its service its products is only going to continue to increase exponentially.
For most companies there is not a thing as too much data. Marketers want to know the who, what, when, where and why of the consumers. They want to be able to quantify the data and turn it into more sales.
The management team wants to know the how much. How much does it cost to acquire every customer? How long does it take for XYZ to happen? How much money does XYZ cost to produce? They want to be able to identify any cost that can be cut and any man hour that can be saved.
As the Internet of Things continues to grow, more and more data becomes available.
According to the predictions above, we could see 75 billion consumer and business devices connected to the internet by 2025. That’s less than five year away.
When you take a look at global population projections for 2025, this means analysts are predicting an average of 9 devices per person. This is not insinuating that anyone is going to have 9 smartphones. In fact, smartphones will make up less than 25% of these devices. But they will continue to be one of the biggest gluttons of data. These devices include your Amazon Alexa, smart washing machine and refrigerator. It will include autonomous cars and factory machines.
And I personally think this is a low estimate. COVID has shown us that it doesn’t take long for a single catalyst to accelerate technology rapidly. Some companies realized overnight that they had no choice but to transfer their business into the cloud. Many switched their employees to Teams or Slack and quickly added devices to their network.
The integration of 5G is one of the ongoing key drivers for the connection of more devices. This improved network will allow for lower latency and faster download speeds, but it’s also allowing mobile data to reach communities that it hasn’t in the past.
As the network increases and expands, we continue to see more devices. As we continue to see more devices, we see more data points moving in all directions. And it’s growing exponentially.
We’re hurtling towards a global datasphere the size of 175 zettabytes. That’s the number 175 with 21 zeros after it. Or think about it as 175 trillion gigabytes. All that data comes in from many different sources over time and will be in many different forms.
Not only does data need to be gathered, but it also needs to be stripped of useless or damaged pieces. Then it will need to be put in compatible formats to be stored in a way that is easily accessible for human or artificial intelligence to analyze.
EVERY SINGLE COMPANY no matter what industry it’s in will continue to face these increases. And if they can’t keep up, the results could be devastating.
Unless a company has swarms of programmers sitting around, it’s going to look for a platform to manage its data.
DevOps is an industry that exploded during COVID. DevOps is the combination of software development and IT operations. These are the companies that work with enterprise software, hardware, and management. They allow for their clients to shorten development times.
Instead of coming up with blank code, enterprise software can be brought into the company’s existing system and be deployed almost immediately. This market is expected to reach $12.85 billion by 2025. It’s simply the way of the future.
So, let’s get right into the data integration company that’s powering some huge brands, and on track to stake its profitable claim to this market.
Having data and knowing how to use it is the truest form of competitive advantage in today’s day and age. It’s the key to improving operations, bettering the customer experience, and improving on business models.
Talend (NASDAQ: TLND) is the world’s leading data integrations and data integrity company. And it’s at the center of the cloud data integration trend. The company is poised to integrate diverse data users and adapt through this time of data explosion.
Data workers spend 67% of their time searching and preparing data rather than using it for insight. If this statistic doesn’t change that data becomes expensive and more of a liability, then an opportunity. In a single platform, Talend ensures that all enterprise data is complete, clean, compliant, and broadly available for anyone in the organization
Talend Data Fabric is the company’s unified platform for reliable accessible data.
As you can see from the graphic taken from Talend’s website, it’s a combination of data integration, data integrity and data application. Plus, the Talend Trust Score gives an at-a-glance assessment of the data’s health. It measures quality, relevance, and popularity.
Combined, this platform aims to make sure that anyone who needs access to the data can do so with the confidence that it’s accurate.
This is the platform that is behind Domino’s success. It’s also a driving force behind Lenovo, Carhart, Toyota and Loreal. AstraZeneca claims that it has used the data to save $1 billion a year by integrating this software.
In fact, over 6,000 companies in the world trust Talend with its data.
Just recently Sumitomo Life Insurance selected Talend to build its data infrastructure. Sumitomo is one of Japan’s leading life insurance companies. The insurance market has tight regulations and complex customers’ needs. Talend will make sure that all the data is compliant and save Sumitomo many manhours down the road.
The company has come a long way from its 2005 beginning in France with the simple thought to modernize data. Is has established itself firmly in the gap in the enterprise information world. And this is just the beginning.
Talend identified the need, created the product and clearly the customers are lining up at the door. But in the end, it all comes down to timing and strategy.
Another key aspect of its platform is that Talend seamlessly integrates and partners with every major cloud provider and data warehouse vendor. I’m talking about strong partnerships with AWS, Microsoft, Snowflake, Databricks and many more. This is so important because the real growth right now in enterprise software in in the transition to the cloud.
There’s no longer a need for server rooms and physical hardware in businesses. That’s been common knowledge for years. But over the last year, companies have accelerated the transition over to the cloud.
Take a look at the company’s most recent earnings numbers.
Last month, the company released the fourth quarter and full fiscal year 2020 results. For the fourth quarter, the company saw total revenue of $78.9 million. This was up 17% when compared to the same quarter 2019. Annual recurring revenue was up 19%.
Solid double-digit numbers are nothing to scoff at. But the management is instead focusing on the 101% growth in the cloud business. Total customer count crossed 6,000…and over 4,250 of them are cloud customers.
This is the hyper focus for this company. The management also pointed out the three non-financial milestones that were hit. First, Talend surpassed 1,000 joint customers with Snowflake. It achieved AWS migration competency status. And it achieved AWS outposts ready designation.
This is the third consecutive quarter that the company exceeded the expectations that were set by the management. But you wouldn’t even know that if you looked at the company’s stock chart.
Shares didn’t do anything over the course of 2020. They ended up exactly where they had started. But the last few months have been different. Investors are starting to notice Talend.
And it’s clear that the company still has plenty of room to grow…and share prices will follow.
Cloud data integration is helping drive new customers to Talend, but the team is making sure that the products keep improving. It’s not just about being the pipes that take the data from point A to point B. The company is looking at what is possible with AI and machine learning.
This will just create more opportunities for customers and enhance its already firm position in this increasing market. And right now, is a perfect time to get in before share prices take off.
As I was putting the finishing touches this issue, something happened. And because of this, you won’t be able to lock in your share of the company’s massive future profits.
Talend announced Wednesday that it had entered into an agreement to be acquired by private equity firm Thoma Bravo. Thoma Bravo has been working to acquire a sizable portfolio of technology brands and they can clearly see the future potential of Talend. This $2.4 billion deal will take the company off the public exchanges and make it a private company once again.
The deal is expected to close in the third quarter of the year contingent upon regulatory approval. And the result will be $66 for each share to current shareholders.
You can see at the time of announcement shares jumped to $65.49 and will most likely trade around that number until the deal is closed.
As disappointing as it is that we are missing out on the incredibly lucrative future of this company, this deal really is confirmation of our stock selection strategy. I noticed it was undervalued and had immense potential, but so did Thoma Bravo.
It’s not all a waste though. All the research on Talend will be useful going forward. Understanding the what’s going on the enterprise DevOps world is integral to tech investing. Data is increasing in both velocity and volume and that’s not slowing down any time soon. And more and more competitors are going to enter the market…meaning more and more investment opportunities will be coming onboard.
Don’t worry I’m always keeping an eye out.
That’s how we locked in 233% on Shopify, 233% on Roku and 164% on Trade Desk. We’ve got open position Fastly that’s up 308%. Heck, our January pick of Jumia Tech is up 48% in just two months. And I’m going to continue looking for the future of data technology which is sure to be another triple-bagger.
Luckily, you I’m not leaving you empty-handed this month despite the poor timing of our publishing schedule.
I just finished up a new report called “My No.1 Artificial Intelligence Stock for 2021”. This company operates a software platform that allows for developing, deploying and operating AI operations for its clients. And many of these clients are brands and companies you use every day.
In fact, the platform already powers 1.1 billion predictions per day through 4.8 million AI models. The company just went public a few months ago, and the stock has potential to easily triple over the next year.
All lifetime Stock Alpha Report subscribers have access to my new reports, so if you haven't become lifetime, do that today.
But I am releasing the report to everyone, you'll find it in your members area.
