ThoughtSpot to Acquire Mode Analytics, Expanding AI-Powered Analytics Platform
ThoughtSpot, an AI-powered analytics platform last valued at $4.5 billion, today announced that it’s entered into a definitive agreement to acquire Mode Analytics, a business intelligence startup, for $200 million in cash and stock.
The acquisition of Mode Analytics will make it a wholly-owned subsidiary of ThoughtSpot once the deal closes later this year. The acquisition is subject to customary closing conditions and the approval of Mode’s shareholders, marking ThoughtSpot’s third-ever acquisition.
ThoughtSpot’s Growth Strategy
This acquisition follows ThoughtSpot’s previous purchases of SQL-based analytics firm SeekWell in March 2021 and data integration company Diyotta in May of the same year. The acquisition is fueled by ThoughtSpot’s substantial funding, which amounted to over $663 million as of August 2019.
ThoughtSpot CEO Sudheesh Nair believes that the acquisition will strengthen the company’s generative AI apps, double its customer base, and expand its annual recurring revenue to over $150 million.
“With this acquisition, we’re giving both data teams and business users the tools they need to efficiently and quickly turn data into insights and those insights into actions,” Nair said in a press release.
About Mode Analytics
Mode Analytics, based in San Francisco, was founded in 2013 by Derek Steer, Benn Stancil, and Josh Ferguson. The three co-founders previously worked at Yammer, where they built custom data analytics tools for the Yammer platform. Mode Analytics saw the opportunity to provide business intelligence and big data analytics capabilities to help data scientists enhance decision-making.
The company raised $81 million in venture capital and built a customer base that covered over 50% of the Forbes 500, including brands like Anheuser-Busch, Zillow, Lyft, Bloomberg, Capital One, VMware, and Conde Nast.
“At Mode, we’ve always focused on helping data analysts and worked hard to remove the frustrations that interfered with their day-to-day workflows,” said Benn Stancil, Mode’s CTO. “By providing data teams with an integrated, code-first experience, we’ve enabled our customers to move far more quickly and find much more value in their data than they previously could.”
Enhancing ThoughtSpot’s Platform
ThoughtSpot, based in Mountain View, California, was founded in 2012 by a team of engineers with backgrounds in companies like Google and Oracle. The company’s platform allows non-technical users to conduct data analyses using tools that monitor information for changing patterns and trends.
The acquisition of Mode Analytics brings a complementary product set to ThoughtSpot. It enables new ways for ThoughtSpot customers to provide value to data teams, such as creating analytics applications and visualized data in Mode that can be accessed through ThoughtSpot’s dashboards.
ThoughtSpot’s CEO, Sudheesh Nair, envisions rethinking business intelligence to maximize value from investments in the modern data stack. The acquisition aims to revolutionize the data visualization tools market, which has been dominated by solutions like Tableau, by providing code-free options for business users and code-first capabilities for analytics engineers.
Consolidation in the Big Data Analytics Sector
ThoughtSpot’s acquisition of Mode Analytics is part of a broader trend of consolidation in the big data analytics sector. This follows Databricks’ acquisition of MosaicML for $1.3 billion and Snowflake’s acquisition of Neeva, a firm focused on AI-powered search.
These acquisitions suggest that the sector is preparing for tough macroeconomic conditions and seeking to strengthen their offerings through strategic partnerships and acquisitions.
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