Tableau Reports Third Quarter 2015 Financial Results

05 Nov, 2015, 16:01 ET from Tableau Software

SEATTLE, Nov. 5, 2015 /PRNewswire/ -- Tableau Software (NYSE: DATA) today reported results for its third quarter ended September 30, 2015.

  • Total revenue grew to $170.8 million, up 64% year over year.
  • License revenue grew to $109.5 million, up 57% year over year.
  • International revenue grew to $42.2 million, up 75% year over year.
  • Added more than 3,100 new customer accounts.
  • Closed 296 transactions greater than $100,000.
  • Diluted GAAP loss per share was $0.19; diluted non-GAAP earnings per share were $0.14.

"I am very pleased with Tableau's performance this quarter. We continue to demonstrate solid business growth as more customers embrace the Tableau way of analytics with great enthusiasm and success," said Christian Chabot, Chief Executive Officer of Tableau Software. "As a result, we had another record quarter of new customer wins. More than 3,100 new customer accounts were added in Q3, bringing the total to more than 35,000 worldwide."

"We remain focused on product innovation and advancing our platform to bring even more value to our growing customer base," continued Chabot. "At the Tableau Customer Conference last month, we demonstrated some of our newest innovations in visual analytics, data integration, data preparation, server administration, cloud and mobile, some of which are slated for Tableau 10 next year."

Financial Highlights

Total revenue increased 64% to $170.8 million, up from $104.5 million in the third quarter of 2014. License revenue increased 57% to $109.5 million, up from $69.8 million in the third quarter of 2014. International revenue grew to $42.2 million, up 75%, from $24.1 million in the third quarter of 2014.

GAAP operating loss for the third quarter of 2015 was $13.2 million, compared to a GAAP operating loss of $3.8 million for the third quarter of 2014. GAAP net loss for the third quarter of 2015 was $13.4 million, or $0.19 per diluted common share, compared to a GAAP net loss of $4.6 million, or $0.07 per diluted common share, for the third quarter of 2014.

Non-GAAP operating income, which excludes stock-based compensation expense, was $18.4 million for the third quarter of 2015, compared to a non-GAAP operating income of $8.7 million for the third quarter of 2014. Non-GAAP net income, which excludes stock-based compensation expense and related income tax adjustments, was $10.6 million for the third quarter of 2015, or $0.14 per diluted common share, compared to a non-GAAP net income of $3.9 million, or $0.05 per diluted common share, for the third quarter of 2014. 

Recent Business Highlights

Tableau held its eighth annual Tableau Customer Conference October 19-23 in Las Vegas. The conference sold out again this year, with more than 10,000 customers and partners in attendance. More than 100 customers spoke at the conference including Cisco, Credit Suisse, Comcast, Target and PepsiCo, among others. In addition, 70 partners including InfoSys, Deloitte, HP, Cloudera, Amazon Web Services, Informatica, Splunk, Alteryx, and Accenture, among others, participated in the expo showcase, demonstrating the breadth of Tableau's partner ecosystem.

In recent months Tableau also:

  • Released Tableau 9.1, giving users more ways to answer questions with data, an entirely new mobile experience, new options for connecting to data and easier security and authentication for the enterprise.
  • Signed an alliance with Deloitte Consulting LLP to enhance Deloitte's ability to deliver self-service analytics to enterprise customers.
  • Announced new integrations with Amazon Web Services (AWS), including a connector for Amazon Aurora as well as the launch of Tableau Server listings in AWS Marketplace.
  • Launched the Tableau for Non-Profits free software program to enable small non-profits to benefit from using Tableau.
  • Named as a Gold Medalist in Puget Sound Business Journal's 2015 Washington's Best Workplaces.
  • Announced expansion into China with the launch of an office in Shanghai.

Conference Call and Webcast Information

In conjunction with this announcement, Tableau will host a conference call at 1:30pm PT (4:30pm ET) today to discuss Tableau's third quarter 2015 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 53730820. 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: 53730820.

About Tableau

Tableau (NYSE: DATA) helps people see and understand data. Tableau helps anyone quickly analyze, visualize and share information. More than 35,000 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.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, the Company's research and development investments, costs, 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 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; 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, 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 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 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. 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.

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2015

2014

2015

2014

Revenues

License

$

109,468

$

69,763

$

290,629

$

178,562

Maintenance and services

61,364

34,706

160,208

91,131

Total revenues

170,832

104,469

450,837

269,693

Cost of revenues

License

988

273

2,337

568

Maintenance and services

18,888

9,268

49,713

24,806

Total cost of revenues (1)

19,876

9,541

52,050

25,374

Gross profit

150,956

94,928

398,787

244,319

Operating expenses

Sales and marketing (1)

91,589

58,565

248,840

147,936

Research and development (1)

54,960

29,022

144,143

77,186

General and administrative (1)

17,584

11,111

50,753

28,953

Total operating expenses

164,133

98,698

443,736

254,075

Operating loss

(13,177)

(3,770)

(44,949)

(9,756)

Other income (expense), net

217

353

1,404

(163)

Loss before income tax expense (benefit)

(12,960)

(3,417)

(43,545)

(9,919)

Income tax expense (benefit)

413

1,214

(1,166)

4,915

Net loss

$

(13,373)

$

(4,631)

$

(42,379)

$

(14,834)

Net loss per share:

  Basic

$

(0.19)

$

(0.07)

$

(0.59)

$

(0.22)

  Diluted

$

(0.19)

$

(0.07)

$

(0.59)

$

(0.22)

Weighted average shares used to compute net loss per share:

  Basic

72,089

68,966

71,341

66,923

  Diluted

72,089

68,966

71,341

66,923

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

Three Months Ended September 30,

Nine Months Ended September 30,

2015

2014

2015

2014

Cost of revenues

$

1,856

$

614

$

4,804

$

1,457

Sales and marketing

11,966

4,810

31,265

12,271

Research and development

14,826

5,550

37,374

13,771

General and administrative

2,925

1,539

8,834

4,025

 

Tableau Software, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

September 30, 2015

December 31, 2014

Assets

Current assets

Cash and cash equivalents

$

750,191

$

680,613

Accounts receivable, net

114,826

99,910

Prepaid expenses and other current assets

18,755

10,777

Income taxes receivable

207

229

Deferred income taxes

26,458

18,732

Total current assets

910,437

810,261

Property and equipment, net

66,587

45,627

Deferred income taxes

6,001

5,879

Deposits and other assets

9,756

3,895

Total assets

$

992,781

$

865,662

Liabilities and stockholders' equity

Current liabilities

Accounts payable

$

5,710

$

1,978

Accrued compensation and employee related benefits

41,268

40,164

Other accrued liabilities

37,302

15,769

Income taxes payable

505

378

Deferred revenue

153,962

121,985

Total current liabilities

238,747

180,274

Deferred revenue

11,978

7,825

Other long-term liabilities

9,614

5,557

Total liabilities

260,339

193,656

Stockholders' equity

Common stock

7

7

Additional paid-in capital

763,742

660,668

Accumulated other comprehensive income (loss)

(119)

140

Retained earnings (accumulated deficit)

(31,188)

11,191

Total stockholders' equity

732,442

672,006

Total liabilities and stockholders' equity

$

992,781

$

865,662

 

Tableau Software, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Nine Months Ended September 30,

2015

2014

Operating activities

Net loss

$

(42,379)

$

(14,834)

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

Depreciation and amortization expense

16,221

9,473

Stock-based compensation expense

82,277

31,524

Excess tax benefit from stock-based compensation

(4,688)

(3,758)

Deferred income taxes

(3,132)

3,532

Changes in operating assets and liabilities

Accounts receivable, net

(16,509)

(7,424)

Prepaid expenses, deposits and other assets

(13,166)

(2,910)

Income taxes receivable

21

(61)

Deferred revenue

37,807

32,232

Accounts payable and accrued liabilities

26,612

9,102

Income taxes payable

157

66

Net cash provided by operating activities

83,221

56,942

Investing activities

Purchases of property and equipment

(32,792)

(26,588)

Sale of property and equipment

1,694

Other investing activities

(1,000)

Net cash used in investing activities

(33,792)

(24,894)

Financing activities

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

344,077

Proceeds from exercise of stock options

16,110

12,714

Excess tax benefit from stock-based compensation

4,688

3,758

Net cash provided by financing activities

20,798

360,549

Effect of exchange rate changes on cash and cash equivalents

(649)

(755)

Net increase in cash and cash equivalents

69,578

391,842

Cash and cash equivalents

Beginning of period

680,613

252,674

End of period

$

750,191

$

644,516

 

Tableau Software, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands, except per share data)

(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2015

2014

2015

2014

Reconciliation of gross profit to non-GAAP gross profit:

Gross profit

$

150,956

$

94,928

$

398,787

$

244,319

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

1,856

614

4,804

1,457

Non-GAAP gross profit

$

152,812

$

95,542

$

403,591

$

245,776

Reconciliation of gross margin to non-GAAP gross margin:

Gross margin

88.4

%

90.9

%

88.5

%

90.6

%

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

1.1

%

0.6

%

1.1

%

0.5

%

Non-GAAP gross margin

89.5

%

91.5

%

89.5

%

91.1

%

Reconciliation of operating loss to non-GAAP operating income:

Operating loss

$

(13,177)

$

(3,770)

$

(44,949)

$

(9,756)

Excluding: Stock-based compensation expense

31,573

12,513

82,277

31,524

Non-GAAP operating income

$

18,396

$

8,743

$

37,328

$

21,768

Reconciliation of operating margin to non-GAAP operating margin:

Operating margin

(7.7)%

(3.6)%

(10.0)%

(3.6)%

Excluding: Stock-based compensation expense

18.5

%

12.0

%

18.2

%

11.7

%

Non-GAAP operating margin

10.8

%

8.4

%

8.3

%

8.1

%

Reconciliation of net loss to non-GAAP net income:

Net loss

$

(13,373)

$

(4,631)

$

(42,379)

$

(14,834)

Excluding: Stock-based compensation expense

31,573

12,513

82,277

31,524

Income tax adjustment (1)

(7,591)

(4,000)

(17,821)

(9,969)

Non-GAAP net income

$

10,609

$

3,882

$

22,077

$

6,721

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

72,089

68,966

71,341

66,923

Effect of potentially dilutive shares: stock awards (2)

5,825

6,870

6,051

6,944

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

77,914

75,836

77,392

73,867

Non-GAAP net income per share:

Basic

$

0.15

$

0.06

$

0.31

$

0.10

Diluted

$

0.14

$

0.05

$

0.29

$

0.09

(1)

During fiscal 2015, the Company began to utilize a fixed projected non-GAAP tax rate for each quarter in the fiscal year in its computation of non-GAAP net income (loss) in order to provide better consistency across interim reporting periods by eliminating the effects of non-recurring and period-specific items, because each of these items can vary in size and frequency. To determine this long-term rate, the Company evaluated a three-year financial projection that excludes the impact of non-cash stock-based compensation expense. The projected rate takes into account other factors including the Company's current operating structure, its existing tax positions in various jurisdictions and key legislation in major jurisdictions where the Company operates. The non-GAAP tax rate the Company will utilize for fiscal 2015 is 43%. The non-GAAP tax rate assumes the federal R&D tax credit is not extended. The Company will provide updates to this tax rate on an annual basis, or if material changes occur, such as the extension of the R&D tax credit.

(2)

During fiscal 2015, the Company updated its calculation of non-GAAP diluted net income (loss) per share which now includes the effect of potentially dilutive shares related to stock awards in periods of non-GAAP net income and GAAP net loss. This change impacted the three and nine months ended September 30, 2014 diluted non-GAAP net income per share by $0.01.

 

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SOURCE Tableau Software



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