Revenue
$232.00M
2023
Valuation
$5.70B
2023
Funding
$415.00M
2023
Revenue
Sacra estimates that Workato’s annual recurring revenue (ARR) is at about $232M.
From 2020 to 2021, Workato’s annual recurring revenue doubled. Their number of customers went from 7,000 to 11,000, indicating healthy, growing expansion among existing customers. Additionally, their headcount doubled from roughly 325 to 650 employees.
Sacra estimates that Workato today has about 850 employees.
Product
Workato is an automation and integration platform. It provides users with the ability to connect various enterprise applications to create automated workflows, commonly referred to as "recipes" within the platform.
The platform boasts a repository of over 500,000 pre-configured solutions or "recipes". These recipes allow users to automate processes across several operational areas, including HR, marketing, sales, finance, IT, revenue operations, and product integration.
Workato is designed to integrate with a broad range of enterprise applications. Some of the notable applications it supports include Salesforce, Slack, ServiceNow, Snowflake, and Workday.
One of the differentiating aspects of Workato, as evidenced from available data, is its emphasis on a no-code or low-code experience. This implies that users, regardless of their technical proficiency, should be able to use the platform to create and manage workflows.
Business Model
Workato is a subscription SaaS company that prices based on the number of seats a customer needs, the number of apps they need to integrate with, the products in the suite that they choose to use, and the number of integrations or 'recipes' they want to run.
Like most enterprise SaaS companies in the integrations and automations space, they are likely to generate around 80% of their revenue from software subscriptions and another 20% from services—onboarding, training, support and other offerings to help companies use Workato.
Workato's focus on the enterprise—their customers include AT&T, Atlassian, Box, GitLab, Nokia, and Toast—means that top-down sales are a big part of their business model, likely targeting chief information officers (CIOs), directors of IT, heads of digital transformation, chief technology officers (CTOs), and others responsible for organization-wide purchases of tools for streamlining operations and improving connectivity between tools.
Workato's initial focus when it came to GTM, however, was on boutique consultants—early adopters of Workato's product who were able to serve as champions of the product, suggest it to their own clients, and drive expansion to what became ultimately bigger, more valuable deals. About 33% of revenue was partner-influenced through the early years—now, Workato's goal is to increase that to 50%+ and more, lessening the need for expensive top-down sales and driving a more organic sales motion.
Competition
Workato's biggest competitor in the enterprise is Salesforce's MuleSoft, which they acquired in 2018 for $6.5B—the two are regularly competing for big deals for enterprise projects around things like employee onboarding, and they're expected to compete more and more frequently now that Salesforce is looking to become the "unified platform" for enterprise work.
No-code workflow tools like Workato, Zapier, and Tray initiated the whole integrations space. They provided non-technical users the capability to transform data across internal integrations using drag-and-drop functionality. Later, they incorporated embedded authentication modals to cater to external-facing integrations.
Today, Workato finds itself in a competitive workflow automation market. Projections estimate the market's value at $18.45B by the end of 2023. Some of the companies they're competing with offer specific, verticalized solutions. For instance, AirSlate focuses on automating tasks such as e-signature collection.
Disclaimers
This report is for information purposes only and is not to be used or considered as an offer or the solicitation of an offer to sell or to buy or subscribe for securities or other financial instruments. Nothing in this report constitutes investment, legal, accounting or tax advice or a representation that any investment or strategy is suitable or appropriate to your individual circumstances or otherwise constitutes a personal trade recommendation to you.
Information and opinions presented in the sections of the report were obtained or derived from sources Sacra believes are reliable, but Sacra makes no representation as to their accuracy or completeness. Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is made regarding future performance. Information, opinions and estimates contained in this report reflect a determination at its original date of publication by Sacra and are subject to change without notice.
Sacra accepts no liability for loss arising from the use of the material presented in this report, except that this exclusion of liability does not apply to the extent that liability arises under specific statutes or regulations applicable to Sacra. Sacra may have issued, and may in the future issue, other reports that are inconsistent with, and reach different conclusions from, the information presented in this report. Those reports reflect different assumptions, views and analytical methods of the analysts who prepared them and Sacra is under no obligation to ensure that such other reports are brought to the attention of any recipient of this report.
All rights reserved. All material presented in this report, unless specifically indicated otherwise is under copyright to Sacra. Sacra reserves any and all intellectual property rights in the report. All trademarks, service marks and logos used in this report are trademarks or service marks or registered trademarks or service marks of Sacra. Any modification, copying, displaying, distributing, transmitting, publishing, licensing, creating derivative works from, or selling any report is strictly prohibited. None of the material, nor its content, nor any copy of it, may be altered in any way, transmitted to, copied or distributed to any other party, without the prior express written permission of Sacra. Any unauthorized duplication, redistribution or disclosure of this report will result in prosecution.