Investor News

Tableau Announces Record Revenue for Third Quarter 2014

11/05/2014

Tableau reports first-ever quarter of more than $100 million in revenue, driven by strong customer growth and product adoption

SEATTLE, Nov. 5, 2014 /PRNewswire/ -- Tableau Software (NYSE: DATA) today reported results for its third quarter ended September 30, 2014.

  • Revenue was $104.5 million, up 71% year over year.
  • License revenue was $69.8 million, up 66% year over year.
  • International revenue was up 115% year over year.
  • Added more than 2,500 new customer accounts.
  • Closed 200 sales orders greater than $100,000, up 68% year over year.
Tableau Software logo www.tableausoftware.com

"Tableau delivered excellent financial performance in the third quarter. Total revenue for the third quarter exceeded $100 million for the first time, demonstrating continued momentum in the business," said Christian Chabot , Chief Executive Officer of Tableau Software.

"We continue to invest in product innovation in support of our mission. At our annual Tableau Conference, we unveiled innovations we are working on, including some that are slated for Tableau 9.0. We plan to further develop our cloud and mobile offerings, extend our enterprise capabilities, expand our analytics functionality, and expand our support for data sources and platforms," added Chabot.

Financial Highlights

Total revenue increased 71% to $104.5 million, from $61.1 million in the third quarter 2013. License revenue was up 66% to $69.8 million, from $42.0 million in the third quarter of 2013. International revenue grew to $24.1 million, up 115% year over year. 

GAAP operating loss for the third quarter of 2014 was $3.8 million, compared to a GAAP operating income of $2.5 million for the third quarter of 2013. GAAP net loss for the third quarter of 2014 was $4.6 million, or $0.07 per diluted common share, compared to GAAP net income of $2.4 million, or $0.03 per diluted common share for the third quarter of 2013.

Non-GAAP operating income, which excludes stock-based compensation expense, was $8.7 million for the third quarter of 2014, compared to a non-GAAP operating income of $6.3 million for the third quarter of 2013. Non-GAAP net income, which excludes stock-based compensation expense, net of tax, was $3.9 million for the third quarter of 2014, or $0.06 per diluted common share, compared to non-GAAP net income of $5.6 million, or $0.08 per diluted common share for the third quarter of 2013. 

Business Highlights

Tableau held its seventh annual Tableau Customer Conference September 8-12 in Seattle, WA. The conference sold out, with more than 5,500 customers and partners in attendance. Attendees represented a broad range of industries including education, finance, software, manufacturing, electronics, healthcare, non-profit, government, biotechnology, and more, demonstrating Tableau's ability to address the needs of customers in diverse industries. More than 60 customers spoke at the conference including EMC, Capital One, Juniper Networks, Netflix, and Facebook, among others. In addition, 55 partners including Splunk, Deloitte, Teradata, IBM, Amazon Web Services, and Google, among others, participated in the expo showcase, demonstrating the breadth of Tableau's partner ecosystem.

In recent months Tableau also:

  • Announced Tableau Drive, a methodology for scaling out self-service analytics based on best practices from successful enterprise deployments. The methodology delivers an iterative, agile method that is faster and more effective than traditional long-cycle deployments.
  • Expanded support for Hadoop technologies with the launch of four new direct data connectors for IBM InfoSphere BigInsights, Amazon Elastic MapReduce, Spark SQL and MarkLogic Enterprise NoSQLDatabase.
  • Earned top ratings in the 2014 BARC¹ Business Intelligence Survey. Tableau rated first in 10 categories, including data discovery and visualization, innovation, and ease-of-use. In addition, Tableau rated #1 among large BI vendors in customer recommendations.
  • Announced seven new OEM partners to expand the reach of visual analytics to more customers worldwide.
  • Expanded the company's footprint in EMEA with the official announcement of a new office in Frankfurt, Germany and appointment of Henrik Jorgensen as country manager.

¹ Business Application Research Center (BARC)

Conference Call and Webcast Information

In conjunction with this announcement, Tableau will host a conference call at 1:30 p.m. PT (4:30 p.m. ET) today to discuss Tableau's third quarter of 2014 financial results and the outlook for the full year 2014. A live audio webcast and replay of the call, together with detailed financial information, will be available in the Investor Relations section of Tableau's website at http://investors.tableausoftware.com. The live call can be accessed by dialing (855) 592-5013 (U.S.) or (678) 224-7834 (outside the U.S.) and referencing passcode: 20155765. A replay of the call can also be accessed by dialing (855) 859-2056 (U.S.) or (404) 537-3406 (outside the U.S.), and referencing passcode: 20155765.

About Tableau

Tableau Software (NYSE: DATA) helps people see and understand data. Tableau helps anyone quickly analyze, visualize and share information. More than 23,000 customer accounts get rapid results with Tableau in the office and on-the-go. And tens of thousands of people use Tableau Public to share data in their blogs and websites. See how Tableau can help you by downloading the free trial at www.tableausoftware.com/trial.

Tableau and Tableau Software are trademarks of Tableau Software, Inc. All other company and product names may be trademarks of the respective companies with which they are associated.

Forward-Looking Statements

This press release contains, and statements made during the above referenced conference call will contain, "forward-looking" statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including regarding the company's growth momentum, product adoption, the Company's research and development efforts and future product releases, and the company's expectations regarding future revenues, expenses and net income or loss. These statements are not guarantees of future performance, but are based on management's expectations as of the date of this press release and assumptions that are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements. Important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements include the following: risks associated with anticipated growth in Tableau's addressable market; competitive factors, including changes in the competitive environment, pricing changes, sales cycle time and increased competition; Tableau's ability to build and expand its direct sales efforts and reseller distribution channels; general economic and industry conditions, including expenditure trends for business intelligence and productivity tools; new product introductions and Tableau's ability to develop and deliver innovative products; Tableau's ability to provide high-quality service and support offerings; risks associated with international operations; and macroeconomic conditions. These and other important risk factors are described more fully in documents filed with the Securities and Exchange Commission, including Tableau's Quarterly Report on Form 10-Q filed on August 8, 2014, and other reports and filings with the Securities and Exchange Commission, and could cause actual results to vary from expectations. All information provided in this release and in the conference call is as of the date hereof and Tableau undertakes no duty to update this information except as required by law.

Non-GAAP Financial Measures

Tableau believes that the use of non-GAAP gross profit and gross margin, non-GAAP operating income (loss) and operating margin, non-GAAP net income (loss) and non-GAAP net income (loss) per basic and diluted common share is helpful to its investors. These measures, which are referred to as non-GAAP financial measures, are not prepared in accordance with generally accepted accounting principles in the United States, or GAAP. Non-GAAP gross profit is calculated by excluding stock-based compensation expense attributable to cost of revenues from gross profit. Non-GAAP gross margin is the ratio calculated by dividing non-GAAP gross profit by revenues. Non-GAAP operating income (loss) is calculated by excluding stock-based compensation expense from operating income (loss). Non-GAAP operating margin is the ratio calculated by dividing non-GAAP operating income (loss) by revenues. Non-GAAP net income (loss) is calculated by excluding stock-based compensation expense, net of tax, from net income (loss). Non-GAAP net income (loss) per basic and diluted common share is calculated by dividing non-GAAP net income (loss) by the basic and diluted weighted average shares outstanding as presented in the calculation of GAAP net income (loss) per share. Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company's non-cash expenses, Tableau believes that providing non-GAAP financial measures that exclude stock-based compensation expense allow for more meaningful comparisons between its operating results from period to period. All of these non-GAAP financial measures are important tools for financial and operational decision making and for evaluating Tableau's own operating results over different periods of time.

Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in Tableau's industry, as other companies in the industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on Tableau's reported financial results. Further, stock-based compensation expense has been and will continue to be for the foreseeable future a significant recurring expense in Tableau's business and an important part of the compensation provided to its employees. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Investors should review the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures included below, and not rely on any single financial measure to evaluate Tableau's business.

 

 

Tableau Software, Inc.

Condensed Consolidated Statement of Operations

(In thousands, except per share data)

(Unaudited)




Three Months Ended
September 30,


Nine Months Ended
September 30,



2014


2013


2014


2013

Revenues



License


$

69,763


 

$

41,951


 

$

178,562


$

101,895

Maintenance and services


34,706


19,128


91,131


49,086

Total revenues


104,469


61,079


269,693


150,981

Cost of revenues



License


273


237


568


523

Maintenance and services


9,268


4,341


24,806


11,951

Total cost of revenues (1)


9,541


4,578


25,374


12,474

Gross profit


94,928


56,501


244,319


138,507

Operating expenses



Sales and marketing (1)


58,565


32,189


147,936


83,426

Research and development (1)


29,022


15,438


77,186


42,514

General and administrative (1)


11,111


6,345


28,953


18,064

Total operating expenses


98,698


53,972


254,075


144,004

Operating income (loss)


(3,770)


2,529


(9,756


(5,497)

Other income (expense), net


353


(177)


(163)


(350)

Income (loss) before income tax expense (benefit)


(3,417)


2,352


(9,919)


(5,847)

Income tax expense (benefit)


1,214


(89)


4,915


(1,678)

Net income (loss)


$

(4,631)


 

$

2,441


$

(14,834)


 

$

(4,169)




Net income (loss) per share attributable to common stockholders:



Basic


$

(0.07)


$

0.04


$

(0.22)


$

(0.09)

Diluted


$

(0.07)


$

0.03


$

(0.22)


$

(0.09)




Weighted average shares used to compute net income (loss) per share attributable to common stockholders:









Basic


68,966


59,143


66,923


47,093

Diluted


68,966


71,348


66,923


47,093

 


(1)

Includes stock-based compensation expense as follows:





Three Months Ended
September 30,


Nine Months Ended
September 30,



2014


2013


2014


2013



(in thousands)

Cost of revenues


$

614


$

113


 

$

1,457


 

$

291

Sales and marketing


4,810


1,442


12,271


3,506

Research and development


5,550


1,473


13,771


3,785

General and administrative


1,539


702


4,025


1,951

 

 


Tableau Software, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)



September 30,
2014


December 31,
2013

Assets




Current assets





Cash and cash equivalents

$

644,516


$

252,674

Accounts receivable, net

67,497


61,158

Prepaid expenses and other current assets

9,322


7,180

Income taxes receivable

2,094


2,033

Deferred income taxes

9,367


9,136

Total current assets

732,796


332,181

Property and equipment, net

38,799


21,338

Deferred income taxes

774


589

Deposits and other assets

1,526


819

Total assets

$

773,895


$

354,927

Liabilities and stockholders' equity


Current liabilities


Accounts payable

$

5,426


$

2,178

Accrued compensation and employee related benefits

27,113


27,187

Accrued liabilities

13,959


8,456

Income taxes payable

234


178

Deferred revenue

93,306


66,290

Total current liabilities

140,038


104,289

Deferred revenue

6,884


3,264

Other long-term liabilities

4,812


2,714

Total liabilities

151,734


110,267

Stockholders' equity




Common stock

7


7

Additional paid-in capital

631,521


239,406

Accumulated other comprehensive income (loss)

149


(71)

Retained earnings (accumulated deficit)

(9,516)


5,318

Total stockholders' equity

622,161


244,660

Total liabilities and stockholders' equity

$

773,895


$

354,927

 

 


Tableau Software, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)




Nine Months Ended
September 30,



2014


2013

Operating activities



Net loss


$

(14,834)


$

(4,169)

Adjustments to reconcile net loss to net cash provided by operating activities



Depreciation and amortization expense


9,473


4,580

Provision for doubtful accounts


(26


230

Stock-based compensation expense


31,524


9,533

Excess tax benefit from stock-based compensation


(3,758)


(823)

Deferred income taxes


3,532


701

Changes in operating assets and liabilities





Accounts receivable


(7,398)


(13,479)

Prepaid expenses, deposits and other assets


(2,910)


(2,812)

Income taxes receivable


(61)


(3,453)

Deferred revenue


32,232


19,527

Accounts payable and accrued liabilities


9,102


9,028

Income taxes payable


66


216

Net cash provided by operating activities


56,942


19,079

Investing activities





Purchase of property and equipment


(26,588)


(11,515)

Sale of property and equipment


1,694


Net cash used in investing activities


(24,894)


(11,515)

Financing activities





Proceeds from public offering, net of underwriters discount and offering costs


344,077


176,974

Proceeds from exercise of stock options


12,714


1,672

Excess tax benefit from stock-based compensation


3,758


823

Net cash provided by financing activities


360,549


179,469

Effect of exchange rate changes on cash and cash equivalents


(755)


2

Net increase in cash and cash equivalents


391,842


187,035

Cash and cash equivalents





Beginning of period


252,674


39,302

End of period


$

644,516


$

226,337

 

 

Tableau Software, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands, except per share data)

(Unaudited)



Three Months Ended
September 30,


Nine Months Ended
September 30,


2014


2013


2014


2013

Reconciliation of gross profit to non-GAAP gross profit:












Gross profit

$

94,928


$

56,501


 

$

244,319


$

138,507

Excluding: Stock-based compensation expense attributable to cost of revenues

614


113


1,457


291

Non-GAAP gross profit

$

95,542


$

56,614


 

$

245,776


$

138,798













Reconciliation of gross margin to non-GAAP gross margin:












GAAP gross margin

90.9%


92.5%


90.6%


91.7%

Excluding: Stock-based compensation expense

0.6%


0.2%


0.5%


0.2%

Non-GAAP gross margin

91.5%


92.7%


91.1%


91.9%













Reconciliation of operating income (loss) to non-GAAP operating income:












Operating income (loss)

$

(3,770)


$

2,529


 

$

(9,756)


$

(5,497)

Excluding: Stock-based compensation expense

12,513


3,730


31,524


9,533

Non-GAAP operating income

$

8,743


$

6,259


 

$

21,768


$

4,036













Reconciliation of operating margin to non-GAAP operating margin:












GAAP operating margin

(3.6)%


4.1%


(3.6)%


(3.6)%

Excluding: Stock-based compensation expense

12.0%


6.1%


11.7%


6.3%

Non-GAAP operating margin

8.4%


10.2%


8.1%


2.7%













Reconciliation of net income (loss) to non-GAAP net income:












Net income (loss)

$

(4,631)


$

2,441


$

(14,834)


$

(4,169)

Excluding: Stock-based compensation expense, net of tax

8,513


3,113


21,555


8,231

Non-GAAP net income

$

3,882


$

5,554


$

6,721


$

4,062












Non-GAAP net income per share attributable to common stockholders:











Basic

$

0.06


$

0.09


 

$

0.10


$

0.09

Diluted

$

0.06


$

0.08


 

$

0.10


$

0.09












Weighted average shares used to compute non-GAAP net income per share attributable to common stockholders:












Basic

68,966


59,143


66,923


47,093

Diluted

68,966


71,348


66,923


47,093

 

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SOURCE Tableau Software

Investors, Joni Davis, Tableau Director, Investor Relations, 206.633.3400 x5523, jdavis@tableausoftware.com; or Carolyn Bass or Jacob Moelter, Market Street Partners, 415.445.3232 or 415.445.3235, tableau@marketstreetpartners.com; or Press, Doreen Jarman, Tableau Senior PR Manager, 206.633.3400 x5648, djarman@tableausoftware.com