The Ai chip boom is only the first chapter in the Ai story. Chapter two involves the companies that are utilizing cutting edge Ai tech to enhance and grow their business.
Besides the obvious choices: Apple, MS, Meta, Google Nvidia etc, here is a list of Midcaps that are growing business, customers and profits by utilizing cutting edge Ai in their everyday business! It is, by no means, a comprehensive list!
C3.ai
Description: C3.ai is an enterprise AI software provider offering a suite of AI applications for various industries such as energy, healthcare, and manufacturing. Their platform enables organizations to develop, deploy, and operate large-scale AI, predictive analytics, and IoT applications. By harnessing AI, C3.ai helps companies improve operational efficiency, reduce costs, and uncover new revenue opportunities.
UiPath
Description: UiPath specializes in robotic process automation (RPA) and integrates AI to automate repetitive tasks and complex business processes. Their AI-powered software robots can understand and process natural language, images, and unstructured data, enhancing productivity and accuracy. This automation allows businesses to save time and resources, leading to increased efficiency and revenue growth.
Alteryx
Description: Alteryx provides a self-service data analytics platform that utilizes AI and machine learning to empower data analysts and scientists. Their tools simplify data preparation, blending, and advanced analytics, enabling users to derive insights quickly. By making data analytics more accessible, Alteryx helps organizations make data-driven decisions that boost performance and profitability.
BlackBerry Limited
Description: Transitioning from its smartphone legacy, BlackBerry now focuses on cybersecurity and IoT solutions, incorporating AI into its offerings. Their AI-driven cybersecurity platform, BlackBerry Cylance, uses machine learning to proactively predict and prevent cyber threats. By providing advanced security solutions, BlackBerry helps enterprises protect their assets, ensuring business continuity and customer trust, which supports revenue growth.
Veritone
Veritone offers an AI operating system called aiWARE, which orchestrates a diverse ecosystem of machine learning models to transform audio, video, and other data sources into actionable intelligence. Their solutions are used across media, legal, and government sectors to automate workflows and gain insights from unstructured data. By leveraging AI, Veritone enhances operational efficiency and creates new revenue streams for its clients.
Axon Enterprise, Inc. Axon provides public safety technology solutions, including conducted electrical weapons (like TASER devices), body cameras, and digital evidence management systems. They integrate AI into their Axon Evidence platform, which helps law enforcement agencies manage and analyze vast amounts of data collected from body cameras and other devices. - AI Utilization: Axon's AI capabilities include automatic transcription of audio and video recordings, facial recognition for suspect identification, and automated redaction tools to protect privacy in video footage. By leveraging AI, Axon enhances the efficiency and effectiveness of law enforcement operations, leading to increased adoption of their products and services.
Upstart Holdings, Inc. - Upstart is a cloud-based artificial intelligence lending platform that partners with banks and credit unions to provide personal loans. The company uses AI and machine learning algorithms to assess creditworthiness more accurately than traditional credit-score methods. - AI Utilization: Upstart's platform analyzes a wide range of variables, including education, employment history, and income, to predict loan default risk. This allows for more inclusive lending by approving borrowers who might be overlooked by traditional models, while also reducing the risk for lenders. The efficiency and accuracy of their AI models have contributed to Upstart's rapid growth in the financial services sector.
Monday.com Ltd. - Monday.com offers a cloud-based Work Operating System (Work OS) that enables teams to build custom workflow apps for project management, CRM, marketing, and other operational needs. - AI Utilization: The platform incorporates AI features that automate routine tasks, provide predictive analytics, and enhance decision-making processes. For example, AI can help predict project timelines, automate data entry, and offer insights into team productivity. By integrating AI, Monday.com improves user experience and operational efficiency, making their platform more attractive to businesses and driving revenue growth.
These companies are excellent examples of mid-cap enterprises that are successfully implementing AI to innovate and expand their market presence. Their utilization of AI not only enhances their product and service offerings but also provides them with a competitive edge in their respective industries.
Let's explore the growth of Axon, Upstart, and Monday.com, focusing on how their utilization of artificial intelligence (AI) has contributed to their business expansion, including financial highlights
1. Axon Enterprise, Inc.
Overview:
- Industry: Public Safety Technology
- Founded: 1993 (as TASER International)
- Headquarters: Scottsdale, Arizona, USA
AI Utilization and Growth:
Axon specializes in developing technology and weapons products for law enforcement agencies, including conducted electrical weapons (like TASER devices), body-worn cameras, and digital evidence management solutions. The integration of AI into their products has been pivotal for their growth.
Axon Evidence (formerly Evidence.com): A cloud-based digital evidence management platform that uses AI for:
- Automatic Transcription: Converts audio and video evidence into searchable text, saving time on manual transcription.
- Facial Recognition: Assists in identifying suspects from video footage.
- Automated Redaction: Uses AI to blur faces and sensitive information in videos, ensuring privacy compliance.
Efficiency Gains: AI features streamline workflows for law enforcement, making Axon's products more attractive to agencies seeking efficiency and compliance with legal standards.
Financial Highlights:
Revenue Growth:
- 2019: Approximately $531 million
- 2020: Approximately $681 million (∼28% increase from 2019)
- 2021: Approximately $863 million (∼27% increase from 2020)
- 2022: Approximately $1.19 billion (∼38% increase from 2021)
Recurring Revenue: A significant portion comes from subscription-based services (software and cloud offerings), providing steady and predictable income.
Stock Performance: Axon's stock price has generally trended upward, reflecting investor confidence in their growth strategy and AI integration.
Drivers of Growth:
- Increased Adoption: Growing demand for body-worn cameras and digital evidence management due to heightened focus on police accountability and transparency.
- International Expansion: Penetration into new markets outside the United States.
- Product Innovation: Continuous investment in R&D, particularly in AI capabilities, keeping Axon at the forefront of law enforcement technology.
2. Upstart Holdings, Inc.
Overview:
- Industry: Financial Technology (FinTech)
- Founded: 2012
- Headquarters: San Mateo, California, USA
AI Utilization and Growth:
Upstart operates an AI-driven lending platform that aims to improve access to affordable credit while reducing the risk for lending partners.
AI-Powered Credit Modeling:
- Alternative Data Points: Uses over 1,600 variables, including education, employment history, and transaction patterns, beyond traditional credit scores.
- Machine Learning Models: Continuously learn and adapt to predict creditworthiness more accurately.
Benefits:
- For Borrowers: More individuals qualify for loans, often at lower interest rates.
- For Lenders: Reduced default rates and increased approval rates.
Financial Highlights:
Revenue Growth:
- 2019: Approximately $164 million
- 2020: Approximately $233 million (∼42% increase from 2019)
- 2021: Approximately $849 million (∼264% increase from 2020)
- First Half of 2022: Revenue faced headwinds due to macroeconomic factors like rising interest rates and inflation, affecting loan volumes.
Profitability:
- 2021: Upstart reported its first full year of profitability.
- 2022: Profitability was challenged due to economic conditions impacting the lending market.
Drivers of Growth:
- Market Expansion: Entered into auto loan refinancing, applying AI models to a new lending vertical.
- Bank Partnerships: Increased the number of bank and credit union partners utilizing their platform.
- Regulatory Environment: Supportive of innovative credit assessment methods to promote financial inclusion.
Challenges:
- Economic Sensitivity: Loan volumes are sensitive to interest rates and economic cycles.
- Regulatory Scrutiny: AI models in lending are subject to regulations to prevent discrimination, requiring transparency and fairness.
3. Monday.com Ltd.
Overview:
- Industry: Software as a Service (SaaS)
- Founded: 2012
- Headquarters: Tel Aviv, Israel
AI Utilization and Growth:
Monday.com provides a cloud-based Work Operating System (Work OS) that allows organizations to create customized workflow apps.
AI Features:
- Automation: Automates repetitive tasks, such as status updates and data entry.
- Predictive Analytics: Offers insights into project timelines, potential delays, and resource allocation.
- Natural Language Processing: Enhances communication features within the platform.
User Experience: The integration of AI simplifies complex processes, making the platform user-friendly and increasing adoption rates.
Financial Highlights:
Revenue Growth:
- 2019: Approximately $120 million
- 2020: Approximately $161 million (∼34% increase from 2019)
- 2021: Approximately $308 million (∼91% increase from 2020)
- 2022: Approximately $519 million (∼68% increase from 2021)
Customer Base:
- Growing Accounts: Significant increase in the number of paying customers, particularly larger accounts contributing over $50,000 annually.
- Global Reach: Expanded presence in multiple countries, diversifying revenue sources.
Investment in R&D:
- Continual investment in AI and machine learning to enhance product offerings.
- R&D expenses increased year-over-year, reflecting a commitment to innovation.
Drivers of Growth:
- Shift to Remote Work: The COVID-19 pandemic accelerated the need for collaborative online tools.
- Scalability: The platform is scalable for businesses of all sizes, from small teams to large enterprises.
- Integration Capabilities: Seamless integration with other tools and platforms enhances its utility.
Conclusion
Axon, Upstart, and Monday.com have each leveraged AI to drive significant growth in their respective industries:
Axon has enhanced public safety technology with AI, leading to increased adoption and revenue growth, especially through recurring subscription models.
Upstart revolutionized lending with AI-driven credit assessments, resulting in rapid revenue growth, although subject to economic fluctuations.
Monday.com utilized AI to improve workflow management, leading to substantial revenue increases and an expanding global customer base.
Financial Health Indicators:
All three companies have shown strong revenue growth figures over multiple years, indicating successful business models.
Investments in AI and technology are common among them, suggesting a focus on long-term innovation over short-term profitability in some cases.
Note: All financial figures are approximate and based on the latest available data up to my knowledge cutoff in October 2023. For the most current and detailed financial information, please refer to the companies' official financial statements or investor relations websites.
By embracing AI, these companies have not only improved their product and service offerings but have also positioned themselves for sustained growth and competitive advantage in their industries.
