Investor News

Tableau Reports Record Q4 and Fiscal Year 2014 Financial Results Due To Strong Enterprise Demand

02/04/2015

Record results driven by strong enterprise demand and growth in new customer accounts

SEATTLE, Feb. 4, 2015 /PRNewswire/ -- Tableau Software, Inc. (NYSE: DATA) today reported results for its fourth quarter and fiscal year ended December 31, 2014.

Tableau Software logo www.tableausoftware.com

Fourth Quarter 2014 Financial Highlights:

  • Total revenue grew to $142.9 million, up 75% year over year.
  • License revenue grew to $101.4 million, up 75% year over year.
  • International revenue grew to $32.8 million, up 86% year over year.
  • Added more than 2,600 new customer accounts.
  • Closed 304 transactions greater than $100,000, up 70% year over year.
  • Diluted GAAP earnings per share were $0.27; diluted non-GAAP earnings per share were $0.42.

Fiscal Year 2014 Financial Highlights:

  • Total revenue grew to $412.6 million, up 78% year over year.
  • License revenue grew to $279.9 million, up 75% year over year.
  • International revenue grew to $93.8 million, up 105% year over year.
  • Added more than 9,100 new customer accounts.
  • Closed 781 transactions greater than $100,000, up 72% year over year.
  • Diluted GAAP earnings per share were $0.08; diluted non-GAAP earnings per share were $0.52.

"Tableau's quarterly and fiscal 2014 results were excellent. I'm proud to say that our investments in people, product and customers paid off in 2014 with record revenue, strong customer adoption and accelerated growth in our enterprise business," said Christian Chabot , Chief Executive Officer of Tableau. "In 2014, we experienced the strongest demand we've seen in our history, as the move to agile analytics grows faster than ever."

"We will continue investing in product innovation and advancing our platform to bring even more value to our growing customer base. We are excited to announce that we expect Tableau 9.0, the next step in our journey to help people achieve more with data, to be released in the next 90 days," added Chabot.

Financial Highlights for the Fourth Quarter Ended December 31, 2014
Total revenue for the fourth quarter of 2014 was $142.9 million, representing a 75% increase from the fourth quarter of 2013. License revenue was $101.4 million, representing a 75% increase from the fourth quarter of 2013. Maintenance and services revenue was $41.5 million, representing a 77% increase from the fourth quarter of 2013.

GAAP operating income for the fourth quarter of 2014 was $16.1 million, compared to a GAAP operating income of $9.2 million for the fourth quarter of 2013. GAAP net income for the fourth quarter of 2014 was $20.7 million, or $0.27 per diluted common share, compared to GAAP net income of $11.2 million, or $0.16 per diluted common share, for the fourth quarter of 2013.

Non-GAAP operating income, which excludes stock-based compensation expense, was $31.6 million for the fourth quarter of 2014, compared to a non-GAAP operating income of $14.1 million for the fourth quarter of 2013.

Non-GAAP net income, which excludes stock-based compensation expense, net of tax, was $31.8 million for the fourth quarter of 2014, or $0.42 per diluted common share, compared to non-GAAP net income of $14.0 million, or $0.20 per diluted common share, for the fourth quarter of 2013. 

Financial Highlights for the Fiscal Year Ended December 31, 2014
Total revenue for 2014 was $412.6 million, representing a 78% increase from 2013. License revenue was $279.9 million, representing a 75% increase from 2013. Maintenance and services revenue was $132.7 million, representing an 83% increase over 2013.

GAAP operating income for 2014 was $6.3 million, compared to a GAAP operating income of $3.7 million for 2013. GAAP net income for 2014 was $5.9 million, or $0.08 per diluted common share, compared to GAAP net income of $7.1 million, or $0.12 per diluted common share, for 2013.

Non-GAAP operating income, which excludes stock-based compensation expense, was $53.3 million for 2014, compared to a non-GAAP operating income of $18.1 million for 2013. Non-GAAP net income, which excludes stock-based compensation expense, net of tax, was $38.5 million for 2014, or $0.52 per diluted common share, compared to non-GAAP net income of $18.0 million, or $0.31 per diluted common share, for 2013. 

Business Highlights

  • Partnered with global consultancy and solutions provider, Infosys, to integrate Tableau's software into the solutions it deploys to help clients unlock the power of big data.
  • KLAS Research placed Tableau among the top broad-use BI vendors in a survey. Tableau placed first in ease-of-use and noted high satisfaction with customers in the healthcare industry.
  • Released Tableau 8.3, an update that delivers support for Kerberos for Microsoft SQL Server, Microsoft SQL Server Analysis Services and Cloudera Impala. Kerberos support provides single sign-on from the desktop or browser all the way to the database.

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 fourth quarter and fiscal year 2014 financial results. 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.tableau.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: 66992370. 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: 66992370.

About Tableau
Tableau (NYSE: DATA) helps people see and understand data. Tableau helps anyone quickly analyze, visualize and share information. More than 26,000 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 November 7, 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. International revenues as described above represent revenues outside the United States and Canada.

 

Tableau Software, Inc.

Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)








Three Months Ended December 31,


Fiscal Year Ended December 31,



2014



2013



2014



2013

Revenues












License


$

101,382



$

58,035



$

279,944



$

159,930

Maintenance and services


41,541



23,424



132,672



72,510

Total revenues


142,923



81,459



412,616



232,440

Cost of revenues












License


643



217



1,211



740

Maintenance and services


10,968



5,833



35,774



17,784

Total cost of revenues (1)


11,611



6,050



36,985



18,524

Gross profit


131,312



75,409



375,631



213,916

Operating expenses












Sales and marketing (1)


68,736



40,147



216,672



123,573

Research and development (1)


33,737



18,255



110,923



60,769

General and administrative (1)


12,759



7,841



41,712



25,905

Total operating expenses


115,232



66,243



369,307



210,247

Operating income


16,080



9,166



6,324



3,669

Other income (expense), net


1,021



(454)



858



(804)

Income before income tax expense (benefit)


17,101



8,712



7,182



2,865

Income tax expense (benefit)


(3,606)



(2,533)



1,309



(4,211)

Net income


$

20,707



$

11,245



$

5,873



$

7,076













Net income per share attributable to common stockholders:












Basic


$

0.30



$

0.18



$

0.09



$

0.14

Diluted


$

0.27



$

0.16



$

0.08



$

0.12













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












Basic


69,572



60,863



67,591



50,564

Diluted


76,384



70,250



74,319



59,092













(1) Includes stock-based compensation expense as follows:




Three Months Ended December 31,


Fiscal Year Ended December 31,



2014



2013



2014



2013




(in thousands)

Cost of revenues


$

770



$

182



$

2,227



$

473


Sales and marketing


5,932



1,923



18,203



5,429


Research and development


7,023



2,047



20,794



5,832


General and administrative


1,769



772



5,794



2,723



















 

Tableau Software, Inc.

Consolidated Balance Sheets

(In thousands)

(Unaudited)






December 31, 2014


December 31, 2013

Assets





Current assets





Cash and cash equivalents

$

680,613



$

252,674

Accounts receivable, net

99,910



61,158

Prepaid expenses and other current assets

10,777



7,180

Income taxes receivable

229



2,033

Deferred income taxes

18,732



9,136

Total current assets

810,261



332,181

Property and equipment, net

45,627



21,338

Deferred income taxes

5,879



589

Deposits and other assets

3,895



819

Total assets

$

865,662



$

354,927

Liabilities and stockholders' equity





Current liabilities





Accounts payable

$

1,978



$

2,178

Accrued compensation and employee related benefits

40,164



27,187

Accrued liabilities

15,769



8,456

Income taxes payable

378



178

Deferred revenue

121,985



66,290

Total current liabilities

180,274



104,289

Deferred revenue

7,825



3,264

Other long-term liabilities

5,557



2,714

Total liabilities

193,656



110,267

Stockholders' equity





Common stock

7



7

Additional paid-in capital

660,668



239,406

Accumulated other comprehensive income (loss)

140



(71)

Retained earnings

11,191



5,318

Total stockholders' equity

672,006



244,660

Total liabilities and stockholders' equity

$

865,662



$

354,927

 

Tableau Software, Inc.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)






Fiscal Year Ended December 31,



2014



2013

Operating activities






Net income


$

5,873



$

7,076

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






Depreciation and amortization expense


13,512



6,850

Stock-based compensation expense


47,018



14,457

Excess tax benefit from stock-based compensation


(14,061)



(5,725)

Deferred income taxes


(899)



(3,052)

Changes in operating assets and liabilities






Accounts receivable, net


(41,015)



(30,001)

Prepaid expenses, deposits and other assets


(6,950)



(4,758)

Income taxes receivable


1,816



(961)

Deferred revenue


62,752



34,740

Accounts payable and accrued liabilities


21,181



19,037

Income taxes payable


224



62

Net cash provided by operating activities


89,451



37,725

Investing activities






Purchase of property and equipment


(36,748)



(17,607)

Sale of property and equipment


1,694



Net cash used in investing activities


(35,054)



(17,607)

Financing activities






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


344,077



176,974

Proceeds from exercise of stock options


16,151



10,522

Excess tax benefit from stock-based compensation


14,061



5,725

Net cash provided by financing activities


374,289



193,221

Effect of exchange rate changes on cash and cash equivalents


(747)



33

Net increase in cash and cash equivalents


427,939



213,372

Cash and cash equivalents






Beginning of period


252,674



39,302

End of period


$

680,613



$

252,674

 

Tableau Software, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands, except per share data)

(Unaudited)






Three Months Ended December 31,


Fiscal Year Ended December 31,


2014



2013



2014



2013


Reconciliation of gross profit to non-GAAP gross profit:












Gross profit

$

131,312



$

75,409



$

375,631



$

213,916


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

770



182



2,227



473


Non-GAAP gross profit

$

132,082



$

75,591



$

377,858



$

214,389














Reconciliation of gross margin to non-GAAP gross margin:












GAAP gross margin

91.9

%


92.6

%


91.0

%


92.0

%

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

0.5

%


0.2

%


0.5

%


0.2

%

Non-GAAP gross margin

92.4

%


92.8

%


91.6

%


92.2

%













Reconciliation of operating income to non-GAAP operating income:












Operating income

$

16,080



$

9,166



$

6,324



$

3,669


Excluding: Stock-based compensation expense

15,494



4,924



47,018



14,457


Non-GAAP operating income

$

31,574



$

14,090



$

53,342



$

18,126














Reconciliation of operating margin to non-GAAP operating margin:












GAAP operating margin

11.3

%


11.3

%


1.5

%


1.6

%

Excluding: Stock-based compensation expense

10.8

%


6.0

%


11.4

%


6.2

%

Non-GAAP operating margin

22.1

%


17.3

%


12.9

%


7.8

%













Reconciliation of net income to non-GAAP net income:












Net income

$

20,707



$

11,245



$

5,873



$

7,076


Excluding: Stock-based compensation expense, net of tax

11,076



2,736



32,631



10,967


Non-GAAP net income

$

31,783



$

13,981



$

38,504



$

18,043














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












Basic

$

0.46



$

0.23



$

0.57



$

0.36


Diluted

$

0.42



$

0.20



$

0.52



$

0.31














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












Basic

69,572



60,863



67,591



50,564


Diluted

76,384



70,250



74,319



59,092


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SOURCE Tableau Software

Investors: Joni Davis, Tableau Director, Investor Relations, 206.633.3400 x5523, jdavis@tableausoftware.com Or Carolyn Bass, 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