Origami has developed a machine learning-enabled data and marketing analytics platform.
INTU is focused on developing and integrating machine learning technologies into its products to improve its value-add position among its SMB customers.
Mountain View, California-based Origami Logic was founded in 2012 and enables organizations to efficiently sort and assess marketing data while gaining actionable insight.
Below is a product overview video of the company’s platforms:
Source: Origami Logic
The Origami Logic marketing analytics platforms offer marketing leadership, in-house programmatic, marketing analytics, campaign reporting, and programmatic media.
Company major customers include:
Source: Company website
Investors have invested at least $64.5 million in the company and include Accel Partners, Icon Ventures, NextWorld Capital, DAG Ventures, Marker, Saban Ventures, and Lightspeed Venture Partners. Source: Crunchbase
Market & Competition
According to a market research report by Markets and Markets, the global marketing analytics market is projected to grow at a CAGR of 14% between 2018 and 2024:
The main drivers for this expected growth are the penetration of cloud technologies and big data as well as the need to utilize marketing budgets for an effective return on investment.
The Asia-Pacific region is projected to grow at the fastest rate during the period.
Major competitive vendors that provide marketing analytics software include:
- IBM (IBM)
- Microsoft (MSFT)
- Oracle (ORCL)
- Salesforce (CRM)
- SAS Institute (SAS)
- Accenture (ACN)
- Adobe (ADBE)
- Teradata Corporation (TDC)
Acquisition Terms and Financial
INTU didn’t disclose the acquisition price or terms and didn’t file a form 8-K or provide a change in financial guidance and the deal ‘has no material impact on Intuit’s guidance for full fiscal year 2019.’
A review of the firm’s most recent 10-Q filing indicates that as of April 30, 2019, INTU had $3.3 billion in cash and investments and $2.8 billion in total liabilities, of which $572 million was deferred revenue and $400 million was long-term debt.
Free cash flow for the nine months ended April 30, 2019, was $2.3 billion.
In the past 12 months, INTU and ADBE stock prices have displayed a high degree of correlation, as the chart below indicates:
Earnings surprises have been positive over the past twelve quarters:
Source: Seeking Alpha
Analyst sentiment in recent earnings calls has been trending upward since early 2018 according to a linguistic analysis:
INTU is acquiring Origami as part of an ongoing initiative to integrate more machine learning capabilities into its products.
As Intuit stated in the deal announcement,
This transaction will support a critical component of Intuit’s goal of streamlining data structures and architecture to best unlock opportunities to power prosperity for customers.
With the deal for Origami, Intuit is gaining an advanced platform ‘capable of collecting data from a variety of sources and generating insights quickly and efficiently.
INTU management sees the need to not only provide operationality functionality, but to move up the value-add stack and provide insights derived from the data it has access to.
The deal, which won’t move the stock’s price in the short-term, makes strategic sense as Intuit seeks to retain its market position for its various SMB product offerings by providing increased value to product users.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.