Investor News

Tableau Reports Second Quarter 2016 Financial Results

08/02/2016

Growth in enterprise and subscription products drives Q2 license growth

SEATTLE, Aug. 2, 2016 /PRNewswire/ -- Tableau Software, Inc. (NYSE: DATA) today reported results for its second quarter ended June 30, 2016.

Tableau Software logo www.tableausoftware.com.
  • Total revenue grew to $198.5 million, up 32% year over year.
  • License revenue grew to $116.3 million, up 20% year over year.
  • International revenue grew to $57.1 million, up 55% year over year.
  • Added more than 3,900 new customer accounts.
  • Closed 332 transactions greater than $100,000, up 42% year over year.
  • Diluted GAAP net loss per share was $0.64; diluted non-GAAP net loss per share was $0.00.

"Overall, we are pleased with our second quarter results as they demonstrate that the move to visual analytics continues to thrive. In Q2, more than 3,900 new customer accounts chose Tableau, the highest quarterly addition in our history, bringing the total to more than 46,000 worldwide," said Christian Chabot, Chief Executive Officer of Tableau. "Our results demonstrate that analytics is as important as ever to companies of all sizes, and we are extending our leadership position in the market at scale."

Financial Results
Total revenue increased 32% to $198.5 million, up from $149.9 million in the second quarter of 2015. License revenue increased 20% to $116.3 million, up from $96.7 million in the second quarter of 2015. International revenue grew to $57.1 million, up 55% from $36.7 million in the second quarter of 2015.

GAAP operating loss for the second quarter of 2016 was $46.9 million, compared to a GAAP operating loss of $18.0 million for the second quarter of 2015. GAAP net loss for the second quarter of 2016 was $47.5 million, or $0.64 per diluted common share, compared to a GAAP net loss of $19.0 million, or $0.27 per diluted common share, for the second quarter of 2015.

Non-GAAP operating loss, which excludes stock-based compensation expense and expense related to amortization of acquired intangible assets, was $1.4 million for the second quarter of 2016, compared to a non-GAAP operating income of $10.5 million for the second quarter of 2015. Non-GAAP net loss, which excludes stock-based compensation expense, expense related to amortization of acquired intangible assets and non-GAAP income tax adjustments, was $0.3 million for the second quarter of 2016, or $0.00 per diluted common share, compared to a non-GAAP net income of $5.6 million, or $0.07 per diluted common share, for the second quarter of 2015. 

Highlights

  • Announced new data analytics learning partnerships with Lynda.com, Pluralsight, Udacity and General Assembly to offer deeper training on Tableau's products.
  • Expanded relationship with Informatica to leverage Informatica solutions to easily access and integrate data across any cloud or on-premise source and quickly cleanse and prepare the data for use in Tableau.
  • Dresner Advisory Services announced Tableau as a recipient of their 2016 Industry Excellence Awards for Technology Leader and Trust Leader in business intelligence.
  • 451 Research reaffirmed Tableau as a gold standard for visual analytics, recognizing investments in self-service data prep and advanced analytics.

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 second 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 39793234. 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 39793234.

About Tableau
Tableau (NYSE: DATA) helps people see and understand data. Tableau helps anyone quickly analyze, visualize and share information. As of June 30, 2016, more than 46,000 customer accounts get rapid results with Tableau in the office and on-the-go. Over 200,000 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 market acceptance of visual analytics, the Company's business and customer growth and product adoption, including adoption by international customers, and leadership position in the market, 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; macroeconomic conditions; and market 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 Quarterly Report on Form 10-Q 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 non-GAAP 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.

Non-GAAP financial information for the quarter is adjusted for a tax rate equal to Tableau's estimated tax rate on non-GAAP income over a three-year financial projection. This rate is based on Tableau's estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating the non-GAAP financial measures. To determine this long-term non-GAAP tax rate, Tableau evaluates a three-year financial projection that excludes the impact of non-cash stock-based compensation expense and expense related to amortization of acquired intangible assets. The long-term non-GAAP tax rate takes into account other factors including Tableau's current operating structure, its existing tax positions in various jurisdictions and key legislation in major jurisdictions where Tableau operates. The long-term non-GAAP tax rate applied to the three and six months ended June 30, 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 and six months ended June 30, 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 long-term non-GAAP tax rate in future periods and 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, Tableau believes 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. 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 GAAP 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 June 30,


Six Months Ended June 30,



2016


2015


2016


2015

Revenues









  License


$

116,349



$

96,741



$

212,764



$

181,161


  Maintenance and services


82,186



53,119



157,469



98,844


  Total revenues


198,535



149,860



370,233



280,005


Cost of revenues









  License


1,602



477



2,633



1,349


  Maintenance and services


23,262



16,276



44,724



30,825


  Total cost of revenues (1)


24,864



16,753



47,357



32,174


Gross profit


173,671



133,107



322,876



247,831


Operating expenses









  Sales and marketing (1)


119,889



85,061



226,053



157,251


  Research and development (1)


77,516



47,333



148,409



89,183


  General and administrative (1)


23,141



18,674



41,673



33,169


  Total operating expenses


220,546



151,068



416,135



279,603


Operating loss


(46,875)



(17,961)



(93,259)



(31,772)


Other income (expense), net


1,019



(623)



2,682



1,187


  Loss before income tax expense (benefit)


(45,856)



(18,584)



(90,577)



(30,585)


 Income tax expense (benefit)


1,666



395



2,523



(1,579)


Net loss


$

(47,522)



$

(18,979)



$

(93,100)



$

(29,006)











Net loss per share:









  Basic


$

(0.64)



$

(0.27)



$

(1.25)



$

(0.41)


  Diluted


$

(0.64)



$

(0.27)



$

(1.25)



$

(0.41)











Weighted average shares used to compute net loss per share:









  Basic


74,756



71,426



74,286



70,961


  Diluted


74,756



71,426



74,286



70,961



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




Three Months Ended June 30,


Six Months Ended June 30,



2016


2015


2016


2015








Cost of revenues


$

2,642



$

1,644



$

5,446



$

2,948


Sales and marketing


16,605



10,790



33,550



19,299


Research and development


22,409



12,462



44,508



22,548


General and administrative


3,715



3,561



7,067



5,909


 


Tableau Software, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)




June 30, 2016


December 31, 2015

Assets




Current assets




  Cash and cash equivalents

$

834,747



$

795,900


  Accounts receivable, net

134,025



131,784


  Prepaid expenses and other current assets

17,919



16,977


  Income taxes receivable

5



78


  Total current assets

986,696



944,739


Property and equipment, net

84,662



72,350


Goodwill

15,531



932


Deferred income taxes

1,439



1,544


Deposits and other assets

12,322



11,146


  Total assets

$

1,100,650



$

1,030,711


Liabilities and stockholders' equity




Current liabilities




  Accounts payable

$

12,596



$

1,152


  Accrued compensation and employee related benefits

52,629



53,003


  Other accrued liabilities

37,522



31,838


  Income taxes payable

1,114



1,000


  Deferred revenue

213,551



185,608


  Total current liabilities

317,412



272,601


Deferred revenue

17,528



12,903


Other long-term liabilities

18,158



11,262


  Total liabilities

353,098



296,766


Stockholders' equity




  Common stock

7



7


  Additional paid-in capital

914,554



805,804


  Accumulated other comprehensive income (loss)

(1,400)



643


  Accumulated deficit

(165,609)



(72,509)


  Total stockholders' equity

747,552



733,945


  Total liabilities and stockholders' equity

$

1,100,650



$

1,030,711


 


Tableau Software, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)





Six Months Ended June 30,



2016


2015

Operating activities





Net loss


$

(93,100)



$

(29,006)


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





Depreciation and amortization expense


16,001



10,146


Stock-based compensation expense


90,571



50,704


Excess tax benefit from stock-based compensation


(552)



(633)


Deferred income taxes


239



(2,884)


Changes in operating assets and liabilities





Accounts receivable, net


(2,176)



605


Prepaid expenses, deposits and other assets


(419)



(7,173)


Income taxes receivable


72



77


Deferred revenue


31,654



22,783


Accounts payable and accrued liabilities


18,086



10,383


Income taxes payable


105



49


Net cash provided by operating activities


60,481



55,051


Investing activities





Purchases of property and equipment


(23,452)



(19,117)


Business combinations


(16,399)




Net cash used in investing activities


(39,851)



(19,117)


Financing activities





Proceeds from issuance of common stock


18,040



12,900


Excess tax benefit from stock-based compensation


552



633


Net cash provided by financing activities


18,592



13,533


Effect of exchange rate changes on cash and cash equivalents


(375)



(574)


Net increase in cash and cash equivalents


38,847



48,893


Cash and cash equivalents





Beginning of period


795,900



680,613


End of period


$

834,747



$

729,506


 


Tableau Software, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands, except per share data)

(Unaudited)




Three Months Ended June 30,


Six Months Ended June 30,


2016


2015


2016


2015

Reconciliation of gross profit to non-GAAP gross profit:








Gross profit

$

173,671



$

133,107



$

322,876



$

247,831


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

2,642



1,644



5,446



2,948


  Excluding: Amortization of acquired intangible assets

103





132




Non-GAAP gross profit

$

176,416



$

134,751



$

328,454



$

250,779










Reconciliation of gross margin to non-GAAP gross margin:








Gross margin

87.5

%


88.8

%


87.2

%


88.5

%

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

1.3

%


1.1

%


1.5

%


1.1

%

  Excluding: Amortization of acquired intangible assets

0.1

%


%


0.0

%


%

Non-GAAP gross margin

88.9

%


89.9

%


88.7

%


89.6

%









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








Operating loss

$

(46,875)



$

(17,961)



$

(93,259)



$

(31,772)


  Excluding: Stock-based compensation expense

45,371



28,457



90,571



50,704


  Excluding: Amortization of acquired intangible assets

103





132




Non-GAAP operating income (loss)

$

(1,401)



$

10,496



$

(2,556)



$

18,932










Reconciliation of operating margin to non-GAAP operating margin:








Operating margin

(23.6)%



(12.0)%



(25.2)%



(11.3)%


  Excluding: Stock-based compensation expense

22.9

%


19.0

%


24.5

%


18.1

%

  Excluding: Amortization of acquired intangible assets

0.1

%


%


0.0

%


%

Non-GAAP operating margin

(0.7)%



7.0

%


(0.7)%



6.8

%



Three Months Ended June 30,


Six Months Ended June 30,


2016


2015


2016


2015

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








Net loss

$

(47,522)



$

(18,979)



$

(93,100)



$

(29,006)


    Excluding: Stock-based compensation expense

45,371



28,457



90,571



50,704


  Excluding: Amortization of acquired intangible assets

103





132




  Income tax adjustments

1,780



(3,850)



2,485



(10,230)


Non-GAAP net income (loss)

$

(268)



$

5,628



$

88



$

11,468










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

74,756



71,426



74,286



70,961


Effect of potentially dilutive shares: stock awards



6,250



4,941



6,163


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

74,756



77,676



79,227



77,124










Non-GAAP net income (loss) per share:








Basic

$

(0.00)



$

0.08



$

0.00



$

0.16


Diluted

$

(0.00)



$

0.07



$

0.00



$

0.15


 

 

 

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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