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Headquarters
Cupertino, CA
CEO
Vijay Tella
Website
Home  >  Companies  >  Workato
Workato
Workato is an enterprise automations platform with low/no-code capabilities.

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

None

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.

None

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

None

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.

We're also increasingly seeing Workato and other companies like them beginning to move towards more diverse integration needs like those addressed by companies like Nango, Supaglue, Merge, Rutter, and Vessel.

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.

This research report has been prepared solely by Sacra and should not be considered a product of any person or entity that makes such report available, if any.

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.

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