Investor News

Tableau Reports First Quarter 2016 Financial Results

05/05/2016

Tableau reports another strong quarter of customer growth

SEATTLE, May 5, 2016 /PRNewswire/ -- Tableau Software, Inc. (NYSE: DATA) today reported results for its first quarter ended March 31, 2016.

Tableau Software logo www.tableausoftware.com.
  • Total revenue grew to $171.7 million, up 32% year over year.
  • License revenue grew to $96.4 million, up 14% year over year.
  • International revenue grew to $48.1 million, up 52% year over year.
  • Added more than 3,500 new customer accounts.
  • Closed 268 transactions greater than $100,000, up 8% year over year.
  • Diluted GAAP net loss per share was $0.62; diluted non-GAAP net income per share was $0.00.

"Tableau's ability to deliver great value to customers resulted in a really strong quarter for new customer growth. In Q1, we added more than 3,500 new customer accounts, the second highest quarterly addition in our history," said Christian Chabot, Chief Executive Officer of Tableau. "Customers are turning to Tableau for fast, agile, visual analytics that provide people with the ability to ask and answer their own questions, while providing IT with the governance, performance, security and reliability they require."

Financial Results

Total revenue increased 32% to $171.7 million, up from $130.1 million in the first quarter of 2015. License revenue increased 14% to $96.4 million, up from $84.4 million in the first quarter of 2015. International revenue grew to $48.1 million, up 52% from $31.7 million in the first quarter of 2015.

GAAP operating loss for the first quarter of 2016 was $46.4 million, compared to a GAAP operating loss of $13.8 million for the first quarter of 2015. GAAP net loss for the first quarter of 2016 was $45.6 million, or $0.62 per diluted common share, compared to a GAAP net loss of $10.0 million, or $0.14 per diluted common share, for the first quarter of 2015.

Non-GAAP operating loss, which excludes stock-based compensation expense and expense related to amortization of acquired intangible assets, was $1.2 million for the first quarter of 2016, compared to a non-GAAP operating income of $8.4 million for the first quarter of 2015. Non-GAAP net income, which excludes stock-based compensation expense, expense related to amortization of acquired intangible assets and related income tax adjustments, was $0.4 million for the first quarter of 2016, or $0.00 per diluted common share, compared to a non-GAAP net income of $5.8 million, or $0.08 per diluted common share, for the first quarter of 2015. 

Highlights

During the quarter, Tableau 9.3 was launched, bringing faster data analysis, sharing and collaboration to its suite of products. New features include the new "always connected" Tableau Desktop, improved global map coverage, faster ways to prepare data for analysis, more governance features and easier administration. In addition, Tableau announced a direct, live connection to the Snowflake Elastic Data Warehouse, a cloud data warehouse.

Also during the quarter, Tableau announced the acquisition of HyPer, a high-performance main-memory database system initially developed as a research project at the Technical University of Munich (TUM). HyPer's main-memory database system is being integrated into Tableau's product lines to provider faster data analysis, enhanced data integration, transformation and data blending, richer analytics and expanded support for big data. Tableau also announced the opening of a development office in Munich to leverage the talent from TUM to drive further innovation for Tableau.

In other news:

  • Tableau announced a new technology agreement with leading electronic medical records (EMR) provider Epic to empower healthcare professionals to transform clinical data into actionable performance improvements using Tableau.
  • The Tableau Europe, Middle-East and Africa (EMEA) partner award winners were announced in recognition of excellent performance and contributions to Tableau's business growth. Awards were given to Javelin Group, Sotec Software Entwincklungs GmbH, Biztory, Accenture, System Mechanics, InterWorks Europe, SoftCat and The Information Lab

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 first quarter 2016 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 (877) 201-0168 (U.S.) or (647) 788-4901 (outside the U.S.) and referencing passcode 80061588. 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 80061588.

About Tableau

Tableau (NYSE: DATA) helps people see and understand data. Tableau helps anyone quickly analyze, visualize and share information. More than 42,000 customer accounts get rapid results with Tableau in the office and on-the-go. Over 175,000 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.tableau.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 business and customer growth and product adoption, including adoption by international customers, the Company's research and development investments, costs, efforts and future product releases, the Company's ability to address any market opportunities, 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 business and addressable market; competitive factors, including new market entrants and 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; Tableau's ability to attract, integrate and retain qualified personnel; 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 most recently filed Annual Report on Form 10-K 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 and expense related to amortization of acquired intangible assets, each to the extent attributable to the cost of revenues, from gross profit. Non-GAAP gross margin is the ratio calculated by dividing non-GAAP gross profit by total revenues. Non-GAAP operating income (loss) is calculated by excluding stock-based compensation expense and expense related to amortization of acquired intangible assets from operating income (loss). Non-GAAP operating margin is the ratio calculated by dividing non-GAAP operating income (loss) by total revenues. Non-GAAP net income (loss) is calculated by excluding stock-based compensation expense, expense related to amortization of acquired intangible assets and related income tax adjustments 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. Non-GAAP diluted weighted average shares outstanding includes the effect of dilutive shares in periods of non-GAAP net income.

In order to provide better consistency across interim reporting periods and to eliminate the effects of non-recurring and period-specific items, Tableau utilizes a fixed projected non-GAAP tax rate for each quarter in a fiscal year in our computation of non-GAAP net income (loss). To determine this long-term rate, Tableau evaluates a three-year financial projection that excludes the impact of non-cash stock-based compensation expense, expense related to amortization of acquired intangible assets and the related direct income tax benefit. The projected rate takes into account other factors including our current operating structure, our existing tax positions in various jurisdictions and key legislation in major jurisdictions where we operate. The non-GAAP tax rate applied to the three months ended March 31, 2015 was 43% and did not assume the U.S. federal R&D tax credit would be extended. In December 2015, the federal R&D tax credit was permanently extended. Accordingly, the Company revised its long-term non-GAAP tax rate to 30% and applied this rate to the three months ended March 31, 2016. The long-term non-GAAP tax rate assumes the Company's deferred income tax assets will be realized based upon projected future taxable income excluding stock-based compensation expense. The Company anticipates using this non-GAAP tax rate in future periods. The Company may provide updates to this rate on an annual basis upon the completion of each fiscal year, or more frequently if material changes occur.

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. The expense related to amortization of acquired intangible assets is dependent upon estimates and assumptions, which can vary significantly and are unique to each asset acquired; therefore, we believe non-GAAP measures that adjust for the amortization of acquired intangible assets provides investors a consistent basis for comparison across accounting periods. 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.

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)














Three Months Ended March 31,





2016


2015



Revenues









License


$

96,415


$

84,420



Maintenance and services


75,283


45,725



Total revenues


171,698


130,145



Cost of revenues








License


1,031


872



Maintenance and services


21,462


14,549



Total cost of revenues (1)


22,493


15,421



Gross profit


149,205


114,724



Operating expenses








Sales and marketing (1)


106,164


72,190



Research and development (1)


70,893


41,850



General and administrative (1)


18,532


14,495



Total operating expenses


195,589


128,535



Operating loss


(46,384)


(13,811)



Other income, net


1,663


1,810



Loss before income tax expense (benefit)


(44,721)


(12,001)



Income tax expense (benefit)


857



(1,974)



Net loss


$

(45,578)


$

(10,027)











Net loss per share:








Basic


$

(0.62)


$

(0.14)



Diluted


$

(0.62)


$

(0.14)











Weighted average shares used to compute net loss per share:








Basic


73,816


70,490



Diluted


73,816


70,490











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

 



Three Months Ended March 31,



2016


2015






Cost of revenues


$

2,804


$

1,304

Sales and marketing


16,945


8,509

Research and development


22,099


10,086

General and administrative


3,352


2,348








 

Tableau Software, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)



March 31, 2016


December 31, 2015

Assets





Current assets



Cash and cash equivalents

$

808,002


$

795,900

Accounts receivable, net

108,747


131,784

Prepaid expenses and other current assets

19,586


16,977

Income taxes receivable

124


78

Total current assets

936,459


944,739

Property and equipment, net

78,403


72,350

Goodwill

15,531


932

Deferred income taxes

1,462


1,544

Deposits and other assets

12,802



11,146

Total assets

$

1,044,657


$

1,030,711

Liabilities and stockholders' equity




Current liabilities




Accounts payable

$

4,281


$

1,152

Accrued compensation and employee related benefits

45,635


53,003

Other accrued liabilities

35,155


31,838

Income taxes payable

1,106


1,000

Deferred revenue

195,824


185,608

Total current liabilities

282,001


272,601

Deferred revenue

13,498


12,903

Other long-term liabilities

13,966


11,262

Total liabilities

309,465


296,766

Stockholders' equity



Common stock

7


7

Additional paid-in capital

854,991


805,804

Accumulated other comprehensive income (loss)

(1,719)


643

Accumulated deficit

(118,087)


(72,509)

Total stockholders' equity

735,192



733,945

Total liabilities and stockholders' equity

$

1,044,657


$

1,030,711







 


Tableau Software, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)










Three Months Ended March 31,



2016


2015

Operating activities







Net loss


$

(45,578)


$

(10,027)

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





Depreciation and amortization expense


7,607


4,799

Stock-based compensation expense


45,200


22,247

Excess tax benefit from stock-based compensation


(248)


(324)

Deferred income taxes


99


(2,571)

Changes in operating assets and liabilities






Accounts receivable, net


23,990


14,514

Prepaid expenses, deposits and other assets


(2,295)


(1,078)

Income taxes receivable


(46)


(25)

Deferred revenue


8,967


9,219

Accounts payable and accrued liabilities


(290)


(1,784)

Income taxes payable


60


34

Net cash provided by operating activities


37,466


35,004

Investing activities






Purchases of property and equipment


(13,653)


(7,620)

Business combinations


(16,399)


Net cash used in investing activities


(30,052)


(7,620)

Financing activities






Proceeds from issuance of common stock


3,992


8,348

Excess tax benefit from stock-based compensation


248


324

Net cash provided by financing activities


4,240


8,672

Effect of exchange rate changes on cash and cash equivalents


448


(1,005)

Net increase in cash and cash equivalents


12,102


35,051

Cash and cash equivalents






Beginning of period


795,900



680,613

End of period


$

808,002


$

715,664








 

Tableau Software, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands, except per share data)

(Unaudited)






Three Months Ended March 31,



2016


2015

Reconciliation of gross profit to non-GAAP gross profit:







Gross profit


$

149,205



$

114,724


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


2,804



1,304


Excluding: Amortization of acquired intangible assets


29





Non-GAAP gross profit


$

152,038



$

116,028









Reconciliation of gross margin to non-GAAP gross margin:







Gross margin


86.9

%


88.2

%

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


1.6

%


1.0

%

Excluding: Amortization of acquired intangible assets


0.0

%


%

Non-GAAP gross margin


88.5

%


89.2

%








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







Operating loss


$

(46,384)



$

(13,811)


  Excluding: Stock-based compensation expense


45,200



22,247


  Excluding: Amortization of acquired intangible assets


29




Non-GAAP operating income (loss)


$

(1,155)



$

8,436










Reconciliation of operating margin to non-GAAP operating margin:








Operating margin


(27.0)

%


(10.6)

%

Excluding: Stock-based compensation expense


26.3

%


17.1

%

Excluding: Amortization of acquired intangible assets


0.0

%


%

Non-GAAP operating margin


(0.7)

%


6.5

%








 


Three Months Ended March 31,


2016


2015

Reconciliation of net loss to non-GAAP net income:






Net loss

$

(45,578)


$

(10,027)

  Excluding: Stock-based compensation expense

45,200


22,247

Excluding: Amortization of acquired intangible assets

29


Income tax adjustments

705


(6,380)

Non-GAAP net income

$

356


$

5,840




Weighted average shares used to compute non-GAAP basic net income per share

73,816


70,490

Effect of potentially dilutive shares: stock awards

5,220


6,075

Weighted average shares used to compute non-GAAP diluted net income per share

79,036


76,565




Non-GAAP net income per share:



Basic

$

0.00


$

0.08

Diluted

$

0.00


$

0.08






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SOURCE Tableau Software

Investor Contact: Joni Davis, Tableau Investor Relations Director, 206.634.5523, jdavis@tableau.com; or Carolyn Bass, Market Street Partners, 415.445.3232 or 415.445.3235, tableau@marketstreetpartners.com; or Press Contact: Doreen Jarman, Tableau Director, Public Relations, 206.634.5648, djarman@tableau.com