Investor News

Tableau Reports First Quarter 2018 Financial Results

05/02/2018

SEATTLE, May 2, 2018 /PRNewswire/ -- Tableau Software, Inc. (NYSE: DATA) today reported results for its first quarter ended March 31, 2018.

Tableau Software logo www.tableausoftware.com. (PRNewsFoto/Tableau Software) (PRNewsfoto/Tableau Software)

"Customers embraced our subscription licensing offerings in Q1, as demonstrated by our 59 percent ratable license bookings mix," said Adam Selipsky, President and Chief Executive Officer of Tableau. "We're just getting started on our journey to make Tableau even easier to buy and scale for our customers. Our new subscription offerings announced last week will broaden our platform and enable our customers to deploy analytics to entire workforces with solutions tailored for every employee."

Adoption of the New Revenue Recognition Standard - ASC 606

Tableau adopted the new revenue recognition accounting standard Accounting Standards Codification ("ASC") 606 effective January 1, 2018 on a modified retrospective basis. Financial results for reporting periods during 2018 are presented in compliance with the new revenue recognition standard. Historical financial results for reporting periods prior to 2018 are presented in conformity with amounts previously disclosed under the prior revenue recognition standard ASC 605. This press release includes additional information to reconcile the impacts of the adoption of the new revenue recognition standard on the Company's financial results for the quarter ended March 31, 2018. This includes the presentation of financial results during 2018 under ASC 605 for comparison to the prior year.

Financial Summary - ASC 606 (standard adopted effective January 1, 2018)

  • ASC 606 total revenue was $246.2 million.
  • Total annual recurring revenue was $641.9 million, up 46% year over year.
  • Subscription annual recurring revenue was $237.5 million, up 230% year over year.
  • ASC 606 diluted GAAP net loss per share was $0.57.
  • ASC 606 diluted non-GAAP net income per share was $0.07.

Financial Summary - ASC 605

  • ASC 605 total revenue was $224.0 million, compared to a guided range of $212.0 million to $222.0 million as provided during the Company's earnings call on February 1, 2018.
  • ASC 605 diluted GAAP net loss per share was $0.98.
  • ASC 605 diluted non-GAAP net loss per share was $0.19, compared to a guided range of $0.17 to $0.24 non-GAAP net loss per share as provided during the Company's earnings call on February 1, 2018.

Financial Results - ASC 606 (standard adopted effective January 1, 2018)

ASC 606 total revenue for the first quarter of 2018 was $246.2 million. Total annual recurring revenue increased 46% to $641.9 million, up from $439.0 million at the end of the first quarter of 2017. Subscription annual recurring revenue increased 230% to $237.5 million, up from $72.0 million at the end of the first quarter of 2017.

ASC 606 GAAP operating loss for the first quarter of 2018 was $50.4 million. ASC 606 GAAP net loss for the first quarter of 2018 was $46.5 million, or $0.57 per diluted common share.

ASC 606 non-GAAP operating income, which excludes stock-based compensation expense and expense related to amortization of acquired intangible assets, was $5.7 million for the first quarter of 2018. ASC 606 non-GAAP net income, which excludes stock-based compensation expense, expense related to amortization of acquired intangible assets and non-GAAP income tax adjustments, was $5.8 million for the first quarter of 2018, or $0.07 per diluted common share.

Financial Results - ASC 605

ASC 605 total revenue for the first quarter of 2018 was $224.0 million, up 12% from $199.9 million in the first quarter of 2017. ASC 605 GAAP operating loss for the first quarter of 2018 was $77.2 million, compared to a GAAP operating loss of $53.5 million for the first quarter of 2017. ASC 605 GAAP net loss for the first quarter of 2018 was $79.0 million, or $0.98 per diluted common share, compared to a GAAP net loss of $54.6 million, or $0.71 per diluted common share, for the first quarter of 2017.

ASC 605 non-GAAP operating loss was $21.0 million for the first quarter of 2018, compared to a non-GAAP operating loss of $4.2 million for the first quarter of 2017. ASC 605 non-GAAP net loss was $15.7 million for the first quarter of 2018, or $0.19 per diluted common share, compared to a non-GAAP net loss of $2.1 million, or $0.03 per diluted common share, for the first quarter of 2017.

Recent Business Highlights

  • Introduced new subscription offerings to help organizations scale analytics. Tableau Creator, Explorer and Viewer subscriptions each provide tailored combinations of new and existing analytical capabilities that are designed for different user needs from sophisticated analysts to casual users.
  • Expanded Tableau's platform to include Tableau Prep, a new data preparation product that integrates directly into the Tableau analytical workflow and can be shared with Tableau Server or Tableau Online. Tableau Prep is included with the new Tableau Creator subscription offering.
  • Released Tableau 2018.1, which includes new web authoring capabilities. The new web authoring capabilities are available with the Tableau Creator subscription offering.
  • The United Nations and Tableau announced an agreement establishing Tableau as a global visual analytics standard across the United Nations system.
  • Appointed Mark Nelson as Executive Vice President of Product Development effective May 21, 2018.

Stock Repurchase Program

During the first quarter ended March 31, 2018, Tableau repurchased 366,160 shares of its outstanding Class A common stock for a total of $30.0 million. As of March 31, 2018, the Company was authorized to repurchase a remaining $70.0 million of its Class A common stock under the previously authorized repurchase program.

On April 26, 2018, the Board of Directors of the Company authorized the Company to repurchase up to an additional $300 million of its Class A common stock under its previously announced stock repurchase program. The program allows the Company to repurchase its shares opportunistically from time to time when it believes that doing so would enhance long-term stockholder value. The repurchase authorization does not have a fixed expiration and may be modified, suspended or discontinued at any time. Purchases may be effected through one or more open market transactions, privately negotiated transactions, transactions structured through investment banking institutions or a combination of the foregoing. Including the additional $300 million, the Company is authorized to repurchase up to a remaining $370.0 million of the Company's Class A common stock under the existing stock repurchase program. As of March 31, 2018, the Company had repurchased and retired 2,077,105 shares of its Class A common stock, under the existing stock repurchase program, for a total purchase price of $130.0 million.

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 2018 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 (833) 241-7252 (U.S.) or (647) 689-4216 (outside the U.S.) and referencing passcode 2389159. A replay of the call can also be accessed by dialing (800) 585-8367 (U.S.) or (416) 621-4642 (outside the U.S.), and referencing passcode 2389159.

About Tableau

Tableau (NYSE: DATA) helps people see and understand data. Tableau helps anyone quickly analyze, visualize and share information. More than 74,000 customer accounts get rapid results with Tableau in the office and on-the-go. Hundreds of thousands of people have used 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 continued transition to subscription and term licensing and its expected increase in demand for its products as a result of its subscription offerings; new product launch and availability of new product capabilities; continued product adoption, including strong subscription demand and annual recurring revenue growth; demand, adoption and deployment by enterprise customers, and the Company's ability to service, execute and grow that demand in the U.S. and globally; the willingness and ability of the Company's partners to sell its subscription offerings; customers' ability to easily scale the Company's products and broaden the deployment of analytics across their entire workforces with tailored solutions for every employee; the Company's research and development investments, costs, continued innovation and ability to timely release future products and features; the Company's leadership position in the sector and ability to address market opportunities as a visual analytics platform; the Company's expectations regarding future operating results, including revenues, expenses and net income or loss, and future performance of key metrics; and the Company's stock repurchase authorization and timing and ability to repurchase shares of the Company's Class A common stock under its stock repurchase program. 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: customer demand for Tableau's products and services and customer response to its subscription offerings; 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 enterprise sales execution and expansion and further transition to subscription and term licensing; Tableau's ability to attract, integrate and retain qualified personnel; general economic and industry conditions, including expenditure trends for business analytics and productivity tools; new product introductions and Tableau's ability to develop and deliver innovative, secure and high-quality products; Tableau's ability to provide high-quality customer service and support offerings; risks associated with international expansion and operations; macroeconomic conditions; market conditions; and the possibility that the stock repurchase program may be suspended or discontinued. These and other important risk factors are described more fully in additional documents filed with the Securities and Exchange Commission, including Tableau's most recently filed Annual Report on Form 10-K, 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), non-GAAP net income (loss) per basic and diluted common share and free cash flow 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 is adjusted for a tax rate equal to Tableau's estimated tax rate on non-GAAP income over a three-year financial projection. This long-term 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 rates applied to the three months ended March 31, 2018 and 2017 were 20% and 30%, respectively. Tableau applied these same non-GAAP tax rates to its financial results presented in accordance with each of ASC 606 and ASC 605. The long-term non-GAAP tax rate applied to the three months ended March 31, 2018 and 2017 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 the long-term non-GAAP tax rate applied to the three months ended March 31, 2018 in future periods and may provide updates to this rate on an annual basis, 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.

Tableau calculates free cash flow as net cash provided by operating activities less net cash used in investing activities for purchases of property and equipment. Tableau considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by Tableau's business that can be used for strategic opportunities, including investing in Tableau's business, making strategic acquisitions, repurchasing Tableau's common stock and strengthening Tableau's balance sheet. All of Tableau's non-GAAP financial measures are important tools for financial and operational decision-making and for evaluating Tableau's 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. Because of the significant impact of the adoption of ASC 606 on the Company's results of operations, non-GAAP financial measures for the first quarter of 2018 (computed in accordance with ASC 606) are not as comparable to non-GAAP financial measures for the first quarter of 2017 (computed in accordance with ASC 605). 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 Statements of Operations

(In thousands, except per share data)

(Unaudited)



Three Months Ended March 31,


2018


2017

Revenues




  License

$

108,793



$

97,244


  Maintenance and services

137,414



102,662


  Total revenues

246,207



199,906


Cost of revenues




  License

3,954



3,267


  Maintenance and services

28,471



23,388


  Total cost of revenues (1)

32,425



26,655


Gross profit

213,782



173,251


Operating expenses




  Sales and marketing (1)

138,406



118,018


  Research and development (1)

93,505



84,302


  General and administrative (1)

32,250



24,445


  Total operating expenses

264,161



226,765


Operating loss

(50,379)



(53,514)


Other income, net

1,462



1,225


  Loss before income tax expense (benefit)

(48,917)



(52,289)


Income tax expense (benefit)

(2,445)



2,358


Net loss

$

(46,472)



$

(54,647)






Net loss per share:




  Basic

$

(0.57)



$

(0.71)


  Diluted

$

(0.57)



$

(0.71)






Weighted average shares used to compute net loss per share:




  Basic

81,039



77,416


  Diluted

81,039



77,416



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

 


Three Months Ended March 31,


2018


2017





Cost of revenues

$

2,987



$

2,577


Sales and marketing

20,015



18,092


Research and development

25,157



23,515


General and administrative

7,604



5,011


 

Tableau Software, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)



March 31, 2018


December 31, 2017

Assets




Current assets




Cash and cash equivalents

$

623,994



$

627,878


Short-term investments

241,652



226,787


Accounts receivable, net

132,611



203,366


Prepaid expenses and other current assets

98,461



30,514


Income taxes receivable

883



673


Total current assets

1,097,601



1,089,218


Long-term investments

157,497



148,364


Property and equipment, net

101,121



106,753


Goodwill

35,083



35,083


Deferred income taxes

4,215



5,287


Other long-term assets

35,139



14,090


Total assets

$

1,430,656



$

1,398,795


Liabilities and stockholders' equity




Current liabilities




Accounts payable

$

2,817



$

4,448


Accrued compensation and employee-related benefits

81,268



96,390


Other accrued liabilities

41,935



37,722


Income taxes payable

4,467



4,743


Deferred revenue

314,698



419,426


Total current liabilities

445,185



562,729


Deferred revenue

21,687



28,058


Other long-term liabilities

53,911



54,385


Total liabilities

520,783



645,172


Stockholders' equity




Common stock

8



8


Additional paid-in capital

1,205,459



1,168,563


Accumulated other comprehensive loss

(10,571)



(11,991)


Accumulated deficit

(285,023)



(402,957)


Total stockholders' equity

909,873



753,623


Total liabilities and stockholders' equity

$

1,430,656



$

1,398,795


 

Tableau Software, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)



Three Months Ended March 31,


2018


2017

Operating activities




Net loss

$

(46,472)



$

(54,647)


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




Depreciation and amortization expense

9,647



13,435


Amortization of premiums on investments, net

118




Stock-based compensation expense

55,763



49,195


Deferred income taxes

(4,226)



128


Changes in operating assets and liabilities




Accounts receivable, net

73,012



76,878


Prepaid expenses and other assets

(22,891)



11,270


Income taxes receivable

(194)



6


Deferred revenue

(7,507)



4,008


Accounts payable and accrued liabilities

(4,279)



(16,620)


Income taxes payable

(356)



842


Net cash provided by operating activities

52,615



84,495


Investing activities




Purchases of property and equipment

(5,251)



(23,238)


Purchases of investments

(102,450)




Maturities of investments

77,385




Sales of investments

99




Net cash used in investing activities

(30,217)



(23,238)


Financing activities




Proceeds from issuance of common stock

2,492



4,309


Repurchases of common stock

(30,007)



(20,008)


Net cash used in financing activities

(27,515)



(15,699)


Effect of exchange rate changes on cash and cash equivalents

1,233



374


Net increase (decrease) in cash and cash equivalents

(3,884)



45,932


Cash and cash equivalents




Beginning of period

627,878



908,717


End of period

$

623,994



$

954,649


Supplemental Information Regarding Adoption of ASC 606

Tableau Software, Inc.

Condensed Consolidated Statements of Operations

Reconciliation of the Impacts from the Adoption of the New Revenue Recognition Standard

(In thousands, except per share data)

(Unaudited)



Three Months Ended March 31,


2018


2017


As Reported
(ASC 606)


Impacts from
Adoption


Without
Adoption
(ASC 605)


As Reported
(ASC 605)

Revenues








License

$

108,793



$

(3,127)



$

105,666



$

97,244


Maintenance and services

137,414



(19,036)



118,378



102,662


Total revenues

246,207



(22,163)



224,044



199,906


Cost of revenues








License

3,954



(52)



3,902



3,267


Maintenance and services

28,471



61



28,532



23,388


Total cost of revenues

32,425



9



32,434



26,655


Gross profit

213,782



(22,172)



191,610



173,251


Operating expenses








Sales and marketing

138,406



4,607



143,013



118,018


Research and development

93,505





93,505



84,302


General and administrative

32,250





32,250



24,445


Total operating expenses

264,161



4,607



268,768



226,765


Operating loss

(50,379)



(26,779)



(77,158)



(53,514)


Other income, net

1,462



(38)



1,424



1,225


Loss before income tax expense (benefit)

(48,917)



(26,817)



(75,734)



(52,289)


Income tax expense (benefit)

(2,445)



5,737



3,292



2,358


Net loss

$

(46,472)



$

(32,554)



$

(79,026)



$

(54,647)










Net loss per share:








Basic

$

(0.57)





$

(0.98)



$

(0.71)


Diluted

$

(0.57)





$

(0.98)



$

(0.71)










Weighted average shares used to compute net loss per share:








Basic

81,039





81,039



77,416


Diluted

81,039





81,039



77,416


Supplemental Information Regarding Adoption of ASC 606

Tableau Software, Inc.

Condensed Consolidated Balance Sheets

Reconciliation of the Impacts from the Adoption of the New Revenue Recognition Standard

(In thousands)

(Unaudited)



March 31,

2018


December 31,
2017


As Reported
(ASC 606)


Impacts from
Adoption


Without
Adoption
(ASC 605)


As Reported
(ASC 605)

Assets








Current assets








Cash and cash equivalents

$

623,994



$



$

623,994



$

627,878


Short-term investments

241,652





241,652



226,787


Accounts receivable, net

132,611





132,611



203,366


Prepaid expenses and other current assets

98,461



(68,249)



30,212



30,514


Income taxes receivable

883





883



673


Total current assets

1,097,601



(68,249)



1,029,352



1,089,218


Long-term investments

157,497





157,497



148,364


Property and equipment, net

101,121





101,121



106,753


Goodwill

35,083





35,083



35,083


Deferred income taxes

4,215



1,589



5,804



5,287


Other long-term assets

35,139



(21,264)



13,875



14,090


Total assets

$

1,430,656



$

(87,924)



$

1,342,732



$

1,398,795


Liabilities and stockholders' equity








Current liabilities








Accounts payable

2,817





2,817



4,448


Accrued compensation and employee-related benefits

81,268





81,268



96,390


Other accrued liabilities

41,935





41,935



37,722


Income taxes payable

4,467



1,826



6,293



4,743


Deferred revenue

314,698



104,407



419,105



419,426


Total current liabilities

445,185



106,233



551,418



562,729


Deferred revenue

21,687



5,521



27,208



28,058


Other long-term liabilities

53,911



(746)



53,165



54,385


Total liabilities

520,783



111,008



631,791



645,172


Stockholders' equity








Common stock

8





8



8


Additional paid-in capital

1,205,459





1,205,459



1,168,563


Accumulated other comprehensive loss

(10,571)



(1,972)



(12,543)



(11,991)


Accumulated deficit

(285,023)



(196,960)



(481,983)



(402,957)


Total stockholders' equity

909,873



(198,932)



710,941



753,623


Total liabilities and stockholders' equity

$

1,430,656



$

(87,924)



$

1,342,732



$

1,398,795


Supplemental Information Regarding Adoption of ASC 606

Tableau Software, Inc.

Condensed Consolidated Statements of Cash Flows

Reconciliation of the Impacts from the Adoption of the New Revenue Recognition Standard

(In thousands)

(Unaudited)



Three Months Ended March 31,


2018


2017


As Reported
(ASC 606)


Impacts from
Adoption


Without
Adoption
(ASC 605)


As Reported
(ASC 605)

Operating activities








Net loss

$

(46,472)



$

(32,554)



$

(79,026)



$

(54,647)


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








Depreciation and amortization expense

9,647





9,647



13,435


Amortization of premiums on investments, net

118





118




Stock-based compensation expense

55,763





55,763



49,195


Deferred income taxes

(4,226)



3,869



(357)



128


Changes in operating assets and liabilities








Accounts receivable, net

73,012





73,012



76,878


Prepaid expenses and other assets

(22,891)



23,230



339



11,270


Income taxes receivable

(194)





(194)



6


Deferred revenue

(7,507)



3,521



(3,986)



4,008


Accounts payable and accrued liabilities

(4,279)





(4,279)



(16,620)


Income taxes payable

(356)



1,825



1,469



842


Net cash provided by operating activities

52,615



(109)



52,506



84,495


Investing activities








Purchases of property and equipment

(5,251)





(5,251)



(23,238)


Purchases of investments

(102,450)





(102,450)




Maturities of investments

77,385





77,385




Sales of investments

99





99




Net cash used in investing activities

(30,217)





(30,217)



(23,238)


Financing activities








Proceeds from issuance of common stock

2,492





2,492



4,309


Repurchases of common stock

(30,007)





(30,007)



(20,008)


Net cash used in financing activities

(27,515)





(27,515)



(15,699)


Effect of exchange rate changes on cash and cash equivalents

1,233



109



1,342



374


Net increase (decrease) in cash and cash equivalents

(3,884)





(3,884)



45,932


Cash and cash equivalents








Beginning of period

627,878





627,878



908,717


End of period

$

623,994



$



$

623,994



$

954,649


Non-GAAP Reconciliation Tables

Tableau Software, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures and

Reconciliation of the Impacts from the Adoption of the New Revenue Recognition Standard

(In thousands, except per share data)

(Unaudited)



Three Months Ended March 31,


2018


2017


As Reported
(ASC 606)


Impacts from
Adoption


Without
Adoption
(ASC 605)


As Reported
(ASC 605)

Reconciliation of gross profit to non-GAAP gross profit:








Gross profit

$

213,782



$

(22,172)



$

191,610



$

173,251


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

2,987





2,987



2,577


Excluding: Amortization of acquired intangible assets

349





349



95


Non-GAAP gross profit

$

217,118



$

(22,172)



$

194,946



$

175,923










Reconciliation of gross margin to non-GAAP gross margin:








Gross margin

86.8

%




85.5

%


86.7

%

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

1.2

%




1.3

%


1.3

%

Excluding: Amortization of acquired intangible assets

0.1

%




0.2

%


0.0

%

Non-GAAP gross margin

88.2

%




87.0

%


88.0

%









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








Operating loss

$

(50,379)



$

(26,779)



$

(77,158)



$

(53,514)


Excluding: Stock-based compensation expense

55,763





55,763



49,195


Excluding: Amortization of acquired intangible assets

349





349



95


Non-GAAP operating income (loss)

$

5,733



$

(26,779)



$

(21,046)



$

(4,224)










Reconciliation of operating margin to non-GAAP operating margin:








Operating margin

(20.5)

%




(34.4)

%


(26.8)

%

Excluding: Stock-based compensation expense

22.6

%




24.9

%


24.6

%

Excluding: Amortization of acquired intangible assets

0.1

%




0.2

%


0.0

%

Non-GAAP operating margin

2.3

%




(9.4)

%


(2.1)

%



Three Months Ended March 31,


2018


2017


As Reported
(ASC 606)


Impacts from
Adoption


Without
Adoption
(ASC 605)


As Reported
(ASC 605)

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








Net loss

$

(46,472)



$

(32,554)



$

(79,026)



$

(54,647)


  Excluding: Stock-based compensation expense

55,763





55,763



49,195


Excluding: Amortization of acquired intangible assets

349





349



95


Income tax adjustments

(3,884)



11,100



7,216



3,258


Non-GAAP net income (loss)

$

5,756



$

(21,454)



$

(15,698)



$

(2,099)










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

81,039





81,039



77,416


Effect of potentially dilutive shares: stock awards

4,020








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

85,059





81,039



77,416










Non-GAAP net income (loss) per share:








Basic

$

0.07





$

(0.19)



$

(0.03)


Diluted

$

0.07





$

(0.19)



$

(0.03)




Three Months Ended March 31,


2018


2017


As Reported
(ASC 606)


Impacts from
Adoption


Without
Adoption
(ASC 605)


As Reported
(ASC 605)

Reconciliation of net cash provided by operating activities to free cash flow:








Net cash provided by operating activities

$

52,615



$

(109)



$

52,506



$

84,495


Less: Purchases of property and equipment

5,251





5,251



23,238


Free cash flow

$

47,364



$

(109)



$

47,255



$

61,257


Net cash used in investing activities

$

(30,217)



$



$

(30,217)



$

(23,238)


Net cash used in financing activities

$

(27,515)



$



$

(27,515)



$

(15,699)


Effect of exchange rate changes on cash and cash equivalents

$

1,233



$

109



$

1,342



$

374


Tableau Software, Inc.
Trended Metrics

The following metrics are intended as a supplement to the financial statements found in this release and other information furnished or filed with the SEC. In the event of discrepancies between amounts in these tables and the Company's historical disclosures or financial statements, readers should rely on the Company's filings with the SEC and financial statements in the Company's most recent earnings release.

Tableau intends to periodically review and refine the definition, methodology and appropriateness of each of these supplemental metrics. As a result, metrics are subject to removal and/or change, and such changes could be material.


 Q1`17

 Q2`17

 Q3`17

 Q4`17

FY 2017

 Q1`18


(Dollars in thousands)


(Unaudited)

Customer metrics







Customer accounts (1)

57,000+


61,000+


65,000+


70,000+


70,000+


74,000+


Customer accounts added in period (1)

3,300+


4,000+


4,100+


4,700+


16,100+


3,900+


Deals greater than $100,000 (2)

294


372


337


590


1,593


301


Customer accounts that purchased greater than $1 million during the

quarter (1,2)

10


15


13


27



13









Annual recurring revenue metrics







Total annual recurring revenue (3)

$

439,001


$

483,578


$

526,211


$

596,244


$

596,244


$

641,946


Subscription annual recurring revenue (4)

$

71,950


$

103,538


$

139,210


$

195,488


$

195,488


$

237,533









Geographic revenue metrics - ASC 606







United States and Canada






$

167,799


International






$

78,408


United States and Canada as % of total revenue






68

%

International as % of total revenue






32

%








Geographic revenue metrics - ASC 605







United States and Canada

$

141,496


$

146,102


$

150,059


$

168,116


$

605,773


$

154,443


International

$

58,410


$

66,778


$

64,858


$

81,240


$

271,286


$

69,601


United States and Canada as % of total revenue

71

%

69

%

70

%

67

%

69

%

69

%

International as % of total revenue

29

%

31

%

30

%

33

%

31

%

31

%








Additional revenue metrics - ASC 606







Remaining performance obligations (5)





$

99,580


$

114,523









Additional revenue metrics - ASC 605







Ratable revenue as % of total revenue (6)

54

%

56

%

63

%

60

%

59

%

72

%

Ratable license revenue as % of total license revenue (7)

19

%

23

%

34

%

34

%

28

%

54

%

Services revenues as a % of maintenance and services revenue (8)

12

%

13

%

12

%

13

%

13

%

11

%








Bookings metrics - ASC 605







Ratable bookings as % of total bookings (2)

55

%

61

%

65

%

70

%

64

%

72

%

Ratable license bookings as % of total license bookings (2)

26

%

37

%

45

%

51

%

41

%

59

%








Other metrics







Worldwide employees

3,193


3,305


3,418


3,489


3,489


3,663



(1) Tableau defines a customer account as a single purchaser of its products. Customer accounts are typically organizations. In some cases, organizations will have multiple groups purchasing Tableau software, which count as discrete customer accounts.


(2) These operating metrics are based on Tableau's definition of bookings, which is defined as the first year of contracted revenue only and does not include additional years beyond the first year unless a customer pays for those years up front. Bookings includes both new sales and renewals. Tableau's bookings may not be comparable to similarly named measures disclosed by other companies in the software industry. Bookings is not a measure of revenue or an indication of actual revenue results. Revenues ultimately recognized could be affected by a number of factors. License bookings include sales of software licenses and subscriptions to Tableau Online. Ratable bookings are sales transactions that result in revenues, which will be amortized over a period of time.


(3) Tableau defines total annual recurring revenue ("Total ARR") as the annualized recurring value of all active contracts at the end of a reporting period. Total ARR includes subscription annual recurring revenue ("Subscription ARR") and the annualized value of all maintenance contracts related to perpetual licenses active at the end of a reporting period.


(4) Tableau defines Subscription ARR as the annualized recurring value of all active subscription contracts at the end of a reporting period. Subscription ARR includes term licenses and renewals, subscription enterprise license agreements and Tableau Online subscriptions and renewals, and excludes distribution original equipment manufacturer ("OEM") license agreements and perpetual-style enterprise license agreements.


(5) Remaining performance obligations represent amounts from contracts with customers allocated to performance obligations that will be satisfied at a later date. These amounts include additional performance obligations that are not yet recorded in the consolidated balance sheets. Remaining performance obligations presented under FY 2017 represents the balance as of January 1, 2018 upon adoption of ASC 606. These amounts do not include deferred revenue, which is already included within the consolidated balance sheets.


(6) Ratable revenues were amortized during the respective periods. For example, sales of Tableau Online, as well as maintenance and support, are recognized ratably. Excluding the impacts of adopting the new revenue recognition standard, enterprise license agreements, on-premises term licenses and OEM license arrangements are also recognized ratably.


(7) Ratable license revenues were amortized during the respective periods. For example, sales of Tableau Online are recognized ratably. Excluding the impacts of adopting the new revenue recognition standard, enterprise license agreements, on-premises term licenses and OEM license arrangements are also recognized ratably.


(8) Services revenues were recognized upon delivery of professional services and training.

 

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SOURCE Tableau Software

Investor Contact: ir@tableau.com, Press Contact: pr@tableau.com