DATA
$123.43
Tableau Software Inc Class A
($4.54)
(3.55%)
Earnings Details
3rd Quarter September 2018
Tuesday, November 06, 2018 4:05:00 PM
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Summary

Tableau Software Inc Class A Misses

Tableau Software Inc Class A (DATA) reported a 3rd Quarter September 2018 loss of $0.26 per share on revenue of $239.6 million. The consensus estimate was a loss of $0.11 per share on revenue of $242.8 million. The Earnings Whisper number was for a loss of $0.14 per share. Revenue grew 11.5% on a year-over-year basis.

The company said during its conference call it expects a fourth quarter non-GAAP loss of $0.10 to $0.08 per share on revenue of $266.0 million to $276.0 million. The current consensus estimate is a loss of $0.01 per share on revenue of $269.6 million for the quarter ending December 31, 2018. The company also said it expects 2019 revenue of $1.33 billion to $1.40 billion. The current consensus estimate is revenue of $1.13 billion for the year ending December 31, 2019.

Tableau Software Inc provides software products helping people see and understand data. It offers software products including, Tableau Desktop, Tableau Server, Tableau Online, and Tableau Public.

Results
Reported Earnings
($0.26)
Earnings Whisper
($0.14)
Consensus Estimate
($0.11)
Reported Revenue
$239.6 Mil
Revenue Estimate
$242.8 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Tableau Reports Third Quarter 2018 Financial Results

SEATTLE, Nov. 6, 2018 /PRNewswire/ -- Tableau Software, Inc. (NYSE: DATA) today reported results for its third quarter ended September 30, 2018.

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

"It was extraordinary seeing our Tableau Community come together in New Orleans this year for our largest customer conference ever," said Adam Selipsky, President and Chief Executive Officer of Tableau. "Customers responded enthusiastically to our new product announcements, including natural language to bring analytics to even more people, and broadening the Tableau platform with enterprise-ready data preparation capabilities."

Financial Summary - ASC 606 (1)

  • ASC 606 total revenue was $290.6 million.
  • Total annual recurring revenue was $762.6 million, up 45% year over year.
  • Subscription annual recurring revenue was $362.4 million, up 160% year over year.
  • ASC 606 diluted GAAP net loss per share was $0.26.
  • ASC 606 diluted non-GAAP net income per share was $0.47.

Financial Summary - ASC 605 (1)

  • ASC 605 total revenue was $239.6 million, compared to a guided range of $236.0 million to $246.0 million as provided during the Company's earnings call on August 2, 2018.
  • 81% ratable license bookings mix, up from 67% in the second quarter of 2018.
  • ASC 605 diluted GAAP net loss per share was $0.86.
  • ASC 605 diluted non-GAAP net loss per share was $0.07, compared to a guided range of $0.09 to $0.15 non-GAAP net loss per share as provided during the Company's earnings call on August 2, 2018.

Financial Results - ASC 606 (1)

ASC 606 total revenue for the third quarter of 2018 was $290.6 million. Total annual recurring revenue increased 45% to $762.6 million as of September 30, 2018, up from $526.2 million as of September 30, 2017. Subscription annual recurring revenue increased 160% to $362.4 million as of September 30, 2018, up from $139.2 million as of September 30, 2017.

ASC 606 GAAP operating loss for the third quarter of 2018 was $15.2 million. ASC 606 GAAP net loss for the third quarter of 2018 was $21.3 million, or $0.26 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 $47.2 million for the third 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 $41.3 million for the third quarter of 2018, or $0.47 per diluted common share.

During the third quarter ended September 30, 2018, Tableau repurchased 282,387 shares of its outstanding Class A common stock for a total of $30.0 million. As of September 30, 2018, the Company was authorized to repurchase a remaining $310.0 million of its Class A common stock under the previously authorized repurchase program.

(1) 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 three and nine months ended September 30, 2018. This includes the presentation of financial results during 2018 under ASC 605 for comparison to the prior year.

Financial Results - ASC 605 (1)

ASC 605 total revenue for the third quarter of 2018 was $239.6 million, up 11% from $214.9 million in the third quarter of 2017. ASC 605 GAAP operating loss for the third quarter of 2018 was $74.1 million, compared to a GAAP operating loss of $49.0 million for the third quarter of 2017. ASC 605 GAAP net loss for the third quarter of 2018 was $71.3 million, or $0.86 per diluted common share, compared to a GAAP net loss of $46.6 million, or $0.59 per diluted common share, for the third quarter of 2017.

ASC 605 non-GAAP operating loss was $11.6 million for the third quarter of 2018, compared to a non-GAAP operating income of $5.5 million for the third quarter of 2017. ASC 605 non-GAAP net loss for the third quarter of 2018 was $5.8 million, or $0.07 per diluted common share, compared to a non-GAAP net income of $6.4 million, or $0.08 per diluted common share, for the third quarter of 2017.

Recent Business Highlights

  • Hosted Tableau's 11th annual global customer conference in New Orleans with more than 17,000 customers and partners in attendance.
  • Presented Ask Data on stage at our global customer conference. Ask Data leverages natural language processing to enable people to ask questions about their data in an intuitive, conversational manner.
  • Announced plans to expand platform capabilities with a new add-on product, Tableau Prep Conductor, which enables organizations to schedule and manage self-service data preparation at scale.
  • Expanded partnerships with new product integrations with AWS, Informatica and Unifi and launched Dashboard Extensions with several partners including Mapbox and DataRobot.
  • Announced plans to expand the global partner program with new certifications and trainings as well as support for bundled offers to better serve joint customers.
  • Announced a commitment to grant $100 million in software, training and financial support through the Tableau Foundation through 2025.

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 third 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 7584507. 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 7584507.

About Tableau

Tableau (NYSE: DATA) helps people see and understand data. Tableau helps anyone quickly analyze, visualize and share information. More than 82,000 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 statements regarding the Company's progress and continued transition to subscription and term licensing and adoption rate by customers of role-based subscription offerings; new product offerings and capabilities; continued product innovation and 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; momentum with the Company's partners; customers' ability to easily scale the Company's products and broaden the deployment of analytics across their workforces with tailored solutions for employees; 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 an analytics platform; the Company's expectations, quarterly and annual outlook, and guidance 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 to customers' on-premise, public, private or hybrid cloud environments; 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 Quarterly Report on Form 10-Q, 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), 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 rate applied to the three and nine months ended September 30, 2018 was 20%. The long-term non-GAAP tax rate applied to the three and nine months ended September 30, 2017 was 30%. Tableau applied these same non-GAAP tax rates to its financial results presented in accordance with ASC 606 and ASC 605. The long-term non-GAAP tax rates assume 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 of 20%, applied to the three and nine months ended September 30, 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 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 information provided by other companies in Tableau's industry, as other companies in the industry may calculate non-GAAP financial measures differently. In addition, there are limitations in using non-GAAP financial measures because 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 three and nine months ended September 30, 2018 (computed in accordance with ASC 606) are not as comparable to non-GAAP financial measures for the three and nine months ended September 30, 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
 September 30,


Nine Months Ended
 September 30,


2018


2017


2018


2017

Revenues








License

$

138,127



$

99,424



$

384,768



$

299,964


Maintenance and services

152,453



115,493



434,308



327,739


Total revenues

290,580



214,917



819,076



627,703


Cost of revenues








License

5,230



3,265



13,810



9,474


Maintenance and services

29,549



26,664



88,619



73,775


Total cost of revenues (1)

34,779



29,929



102,429



83,249


Gross profit

255,801



184,988



716,647



544,454


Operating expenses








Sales and marketing (1)

142,129



123,842



424,685



366,020


Research and development (1)

97,939



84,494



285,477



249,863


General and administrative (1)

30,959



25,697



93,055



76,017


Total operating expenses

271,027



234,033



803,217



691,900


Operating loss

(15,226)



(49,045)



(86,570)



(147,446)


Other income, net

4,381



3,677



12,709



8,931


Loss before income tax expense

(10,845)



(45,368)



(73,861)



(138,515)


Income tax expense

10,492



1,185



6,014



5,207


Net loss

$

(21,337)



$

(46,553)



$

(79,875)



$

(143,722)










Net loss per share:








Basic

$

(0.26)



$

(0.59)



$

(0.97)



$

(1.83)


Diluted

$

(0.26)



$

(0.59)



$

(0.97)



$

(1.83)










Weighted average shares used to compute net loss per share:








Basic

83,264



79,440



82,191



78,463


Diluted

83,264



79,440



82,191



78,463



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



Three Months Ended
 September 30,


Nine Months Ended
 September 30,


2018


2017


2018


2017









Cost of revenues

$

3,488



$

2,885



$

9,774



$

8,252


Sales and marketing

22,357



18,603



64,522



55,221


Research and development

29,926



27,337



81,920



76,500


General and administrative

6,175



5,489



19,805



15,650



 

Tableau Software, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)



September 30, 2018


December 31, 2017

Assets




Current assets




Cash and cash equivalents

$

639,254



$

627,878


Short-term investments

317,505



226,787


Accounts receivable, net

187,424



203,366


Prepaid expenses and other current assets

136,828



30,514


Income taxes receivable

1,363



673


Total current assets

1,282,374



1,089,218


Long-term investments

63,551



148,364


Property and equipment, net

91,265



106,753


Goodwill

42,530



35,083


Deferred income taxes

4,007



5,287


Other long-term assets

46,271



14,090


Total assets

$

1,529,998



$

1,398,795


Liabilities and stockholders' equity




Current liabilities




Accounts payable

$

3,817



$

4,448


Accrued compensation and employee-related benefits

96,091



96,390


Other accrued liabilities

66,313



37,722


Income taxes payable

7,547



4,743


Deferred revenue

328,187



419,426


Total current liabilities

501,955



562,729


Deferred revenue

15,851



28,058


Other long-term liabilities

52,447



54,385


Total liabilities

570,253



645,172


Stockholders' equity




Common stock

8



8


Additional paid-in capital

1,290,077



1,168,563


Accumulated other comprehensive loss

(11,914)



(11,991)


Accumulated deficit

(318,426)



(402,957)


Total stockholders' equity

959,745



753,623


Total liabilities and stockholders' equity

$

1,529,998



$

1,398,795


 

Tableau Software, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)



Nine Months Ended
 September 30,


2018


2017

Operating activities




Net loss

$

(79,875)



$

(143,722)


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




Depreciation and amortization expense

27,783



34,174


Amortization (accretion) on investments, net

(32)



162


Stock-based compensation expense

176,021



155,623


Deferred income taxes

(3,810)



(226)


Changes in operating assets and liabilities




Accounts receivable, net

14,232



80,030


Prepaid expenses and other assets

(71,671)



(138)


Income taxes receivable

(728)



(297)


Deferred revenue

4,666



45,109


Accounts payable and accrued liabilities

38,477



9,452


Income taxes payable

2,866



26


Net cash provided by operating activities

107,929



180,193


Investing activities




Purchases of property and equipment

(13,983)



(43,179)


Business combination, net of cash acquired

(10,947)



(23,966)


Purchases of investments

(206,454)



(198,144)


Maturities of investments

199,885




Sales of investments

99




Net cash used in investing activities

(31,400)



(265,289)


Financing activities




Proceeds from issuance of common stock

26,864



24,305


Repurchases of common stock

(90,019)



(59,986)


Net cash used in financing activities

(63,155)



(35,681)


Effect of exchange rate changes on cash and cash equivalents

(1,998)



3,005


Net increase (decrease) in cash and cash equivalents

11,376



(117,772)


Cash and cash equivalents




Beginning of period

627,878



908,717


End of period

$

639,254



$

790,945



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 September 30,


2018


2017


As Reported

(ASC 606)


Impacts from
Adoption


Without
Adoption

(ASC 605)


As Reported

(ASC 605)

Revenues








License

$

138,127



$

(20,095)



$

118,032



$

99,424


Maintenance and services

152,453



(30,894)



121,559



115,493


Total revenues

290,580



(50,989)



239,591



214,917


Cost of revenues








License

5,230



(121)



5,109



3,265


Maintenance and services

29,549



148



29,697



26,664


Total cost of revenues

34,779



27



34,806



29,929


Gross profit

255,801



(51,016)



204,785



184,988


Operating expenses








Sales and marketing

142,129



7,828



149,957



123,842


Research and development

97,939





97,939



84,494


General and administrative

30,959





30,959



25,697


Total operating expenses

271,027



7,828



278,855



234,033


Operating loss

(15,226)



(58,844)



(74,070)



(49,045)


Other income, net

4,381



32



4,413



3,677


Loss before income tax expense

(10,845)



(58,812)



(69,657)



(45,368)


Income tax expense

10,492



(8,852)



1,640



1,185


Net loss

$

(21,337)



$

(49,960)



$

(71,297)



$

(46,553)










Net loss per share:








Basic

$

(0.26)





$

(0.86)



$

(0.59)


Diluted

$

(0.26)





$

(0.86)



$

(0.59)










Weighted average shares used to compute net loss per share:








Basic

83,264





83,264



79,440


Diluted

83,264





83,264



79,440




Nine Months Ended September 30,


2018


2017


As Reported

(ASC 606)


Impacts from
Adoption


Without
Adoption

(ASC 605)


As Reported

(ASC 605)

Revenues








License

$

384,768



$

(38,489)



$

346,279



$

299,964


Maintenance and services

434,308



(73,386)



360,922



327,739


Total revenues

819,076



(111,875)



707,201



627,703


Cost of revenues








License

13,810



(264)



13,546



9,474


Maintenance and services

88,619



315



88,934



73,775


Total cost of revenues

102,429



51



102,480



83,249


Gross profit

716,647



(111,926)



604,721



544,454


Operating expenses








Sales and marketing

424,685



18,787



443,472



366,020


Research and development

285,477





285,477



249,863


General and administrative

93,055





93,055



76,017


Total operating expenses

803,217



18,787



822,004



691,900


Operating loss

(86,570)



(130,713)



(217,283)



(147,446)


Other income, net

12,709



112



12,821



8,931


Loss before income tax expense

(73,861)



(130,601)



(204,462)



(138,515)


Income tax expense

6,014



(586)



5,428



5,207


Net loss

$

(79,875)



$

(130,015)



$

(209,890)



$

(143,722)










Net loss per share:








Basic

$

(0.97)





$

(2.55)



$

(1.83)


Diluted

$

(0.97)





$

(2.55)



$

(1.83)










Weighted average shares used to compute net loss per share:








Basic

82,191





82,191



78,463


Diluted

82,191





82,191



78,463


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)



September 30,

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

$

639,254



$



$

639,254



$

627,878


Short-term investments

317,505





317,505



226,787


Accounts receivable, net

187,424





187,424



203,366


Prepaid expenses and other current assets

136,828



(103,176)



33,652



30,514


Income taxes receivable

1,363





1,363



673


Total current assets

1,282,374



(103,176)



1,179,198



1,089,218


Long-term investments

63,551





63,551



148,364


Property and equipment, net

91,265





91,265



106,753


Goodwill

42,530





42,530



35,083


Deferred income taxes

4,007



1,485



5,492



5,287


Other long-term assets

46,271



(29,940)



16,331



14,090


Total assets

$

1,529,998



$

(131,631)



$

1,398,367



$

1,398,795


Liabilities and stockholders' equity








Current liabilities








Accounts payable

$

3,817



$



$

3,817



$

4,448


Accrued compensation and employee-related benefits

96,091





96,091



96,390


Other accrued liabilities

66,313





66,313



37,722


Income taxes payable

7,547



(4,381)



3,166



4,743


Deferred revenue

328,187



154,435



482,622



419,426


Total current liabilities

501,955



150,054



652,009



562,729


Deferred revenue

15,851



12,693



28,544



28,058


Other long-term liabilities

52,447



(833)



51,614



54,385


Total liabilities

570,253



161,914



732,167



645,172


Stockholders' equity








Common stock

8





8



8


Additional paid-in capital

1,290,077





1,290,077



1,168,563


Accumulated other comprehensive loss

(11,914)



876



(11,038)



(11,991)


Accumulated deficit

(318,426)



(294,421)



(612,847)



(402,957)


Total stockholders' equity

959,745



(293,545)



666,200



753,623


Total liabilities and stockholders' equity

$

1,529,998



$

(131,631)



$

1,398,367



$

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)



Nine Months Ended September 30,


2018


2017


As Reported
(ASC 606)


Impacts from Adoption


Without Adoption
(ASC 605)


As Reported
(ASC 605)

Operating activities








Net loss

$

(79,875)



$

(130,015)



$

(209,890)



$

(143,722)


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








Depreciation and amortization expense

27,783





27,783



34,174


Amortization (accretion) on investments, net

(32)





(32)



162


Stock-based compensation expense

176,021





176,021



155,623


Deferred income taxes

(3,810)



3,673



(137)



(226)


Changes in operating assets and liabilities








Accounts receivable, net

14,232





14,232



80,030


Prepaid expenses and other assets

(71,671)



68,002



(3,669)



(138)


Income taxes receivable

(728)





(728)



(297)


Deferred revenue

4,666



62,974



67,640



45,109


Accounts payable and accrued liabilities

38,477





38,477



9,452


Income taxes payable

2,866



(4,381)



(1,515)



26


Net cash provided by operating activities

107,929



253



108,182



180,193


Investing activities








Purchases of property and equipment

(13,983)





(13,983)



(43,179)


Business combination, net of cash acquired

(10,947)





(10,947)



(23,966)


Purchases of investments

(206,454)





(206,454)



(198,144)


Maturities of investments

199,885





199,885




Sales of investments

99





99




Net cash used in investing activities

(31,400)





(31,400)



(265,289)


Financing activities








Proceeds from issuance of common stock

26,864





26,864



24,305


Repurchases of common stock

(90,019)





(90,019)



(59,986)


Net cash used in financing activities

(63,155)





(63,155)



(35,681)


Effect of exchange rate changes on cash and cash equivalents

(1,998)



(253)



(2,251)



3,005


Net increase (decrease) in cash and cash equivalents

11,376





11,376



(117,772)


Cash and cash equivalents








Beginning of period

627,878





627,878



908,717


End of period

$

639,254



$



$

639,254



$

790,945


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 September 30,


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

$

255,801



$

(51,016)



$

204,785



$

184,988


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

3,488





3,488



2,885


Excluding: Amortization of acquired intangible assets

516





516



264


Non-GAAP gross profit

$

259,805



$

(51,016)



$

208,789



$

188,137










Reconciliation of gross margin to non-GAAP gross margin:








Gross margin

88.0

%




85.5

%


86.1

%

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

1.2

%




1.5

%


1.3

%

Excluding: Amortization of acquired intangible assets

0.2

%




0.2

%


0.1

%

Non-GAAP gross margin

89.4

%




87.1

%


87.5

%









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








Operating loss

$

(15,226)



$

(58,844)



$

(74,070)



$

(49,045)


Excluding: Stock-based compensation expense

61,946





61,946



54,314


Excluding: Amortization of acquired intangible assets

516





516



264


Non-GAAP operating income (loss)

$

47,236



$

(58,844)



$

(11,608)



$

5,533










Reconciliation of operating margin to non-GAAP operating margin:








Operating margin

(5.2)%





(30.9)%



(22.8)%


Excluding: Stock-based compensation expense

21.3

%




25.9

%


25.3

%

Excluding: Amortization of acquired intangible assets

0.2

%




0.2

%


0.1

%

Non-GAAP operating margin

16.3

%




(4.8)%



2.6

%



Three Months Ended September 30,


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

$

(21,337)



$

(49,960)



$

(71,297)



$

(46,553)


Excluding: Stock-based compensation expense

61,946





61,946



54,314


Excluding: Amortization of acquired intangible assets

516





516



264


Income tax adjustments

168



2,911



3,079



(1,578)


Non-GAAP net income (loss)

$

41,293



$

(47,049)



$

(5,756)



$

6,447










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

83,264





83,264



79,440


Effect of potentially dilutive shares: stock awards

4,376







4,398


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

87,640





83,264



83,838










Non-GAAP net income (loss) per share:








Basic

$

0.50





$

(0.07)



$

0.08


Diluted

$

0.47





$

(0.07)



$

0.08




Nine Months Ended September 30,


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

$

716,647



$

(111,926)



$

604,721



$

544,454


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

9,774





9,774



8,252


Excluding: Amortization of acquired intangible assets

1,269





1,269



454


Non-GAAP gross profit

$

727,690



$

(111,926)



$

615,764



$

553,160










Reconciliation of gross margin to non-GAAP gross margin:








Gross margin

87.5

%




85.5

%


86.7

%

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

1.2

%




1.4

%


1.3

%

Excluding: Amortization of acquired intangible assets

0.2

%




0.2

%


0.1

%

Non-GAAP gross margin

88.8

%




87.1

%


88.1

%









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








Operating loss

$

(86,570)



$

(130,713)



$

(217,283)



$

(147,446)


Excluding: Stock-based compensation expense

176,021





176,021



155,623


Excluding: Amortization of acquired intangible assets

1,269





1,269



454


Non-GAAP operating income (loss)

$

90,720



$

(130,713)



$

(39,993)



$

8,631










Reconciliation of operating margin to non-GAAP operating margin:








Operating margin

(10.6)%





(30.7)%



(23.5)%


Excluding: Stock-based compensation expense

21.5

%




24.9

%


24.8

%

Excluding: Amortization of acquired intangible assets

0.2

%




0.2

%


0.1

%

Non-GAAP operating margin

11.1

%




(5.7)%



1.4

%



Nine Months Ended September 30,


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

$

(79,875)



$

(130,015)



$

(209,890)



$

(143,722)


Excluding: Stock-based compensation expense

176,021





176,021



155,623


Excluding: Amortization of acquired intangible assets

1,269





1,269



454


Income tax adjustments

(14,672)



25,534



10,862



(62)


Non-GAAP net income (loss)

$

82,743



$

(104,481)



$

(21,738)



$

12,293










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

82,191





82,191



78,463


Effect of potentially dilutive shares: stock awards

4,092







3,981


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

86,283





82,191



82,444










Non-GAAP net income (loss) per share:








Basic

$

1.01





$

(0.26)



$

0.16


Diluted

$

0.96





$

(0.26)



$

0.15




Nine Months Ended September 30,


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

$

107,929



$

253



$

108,182



$

180,193


Less: Purchases of property and equipment

(13,983)





(13,983)



(43,179)


Free cash flow

$

93,946



$

253



$

94,199



$

137,014


Net cash used in investing activities

$

(31,400)



$



$

(31,400)



$

(265,289)


Net cash used in financing activities

$

(63,155)



$



$

(63,155)



$

(35,681)


Effect of exchange rate changes on cash and cash equivalents

$

(1,998)



$

(253)



$

(2,251)



$

3,005


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

 Q2`18

Q3`18


(Dollars in thousands)


(Unaudited)

Customer metrics









Customer accounts (1)

57,000

+

61,000

+

65,000

+

70,000

+

70,000

+

74,000

+

78,000

+

82,000

+

Customer accounts added in period (1)

3,300

+

4,000

+

4,100

+

4,700

+

16,100

+

3,900

+

4,100

+

3,800

+

Deals greater than $100,000 (2)

294


372


337


590


1,593


301


436


378


Customer accounts that purchased greater than $1 million during the quarter (1,2)

10


15


13


27



13


22


23











Annual recurring revenue metrics









Total annual recurring revenue (3)

$

439,001


$

483,578


$

526,211


$

596,244


$

596,244


$

641,946


$

697,700


$

762,641


Subscription annual recurring revenue (4)

$

71,950


$

103,538


$

139,210


$

195,488


$

195,488


$

237,533


$

291,292


$

362,360











Geographic revenue metrics - ASC 606









United States and Canada






$

167,799


$

196,992


$

207,166


International






$

78,408


$

85,297


$

83,414


United States and Canada as % of total revenue






68

%

70

%

71

%

International as % of total revenue






32

%

30

%

29

%










Geographic revenue metrics - ASC 605









United States and Canada

$

141,496


$

146,102


$

150,059


$

168,116


$

605,773


$

154,443


$

169,234


$

169,552


International

$

58,410


$

66,778


$

64,858


$

81,240


$

271,286


$

69,601


$

74,332


$

70,039


United States and Canada as % of total revenue

71

%

69

%

70

%

67

%

69

%

69

%

69

%

71

%

International as % of total revenue

29

%

31

%

30

%

33

%

31

%

31

%

31

%

29

%










Additional revenue metrics - ASC 606









Remaining performance obligations (5)





$

99,580


$

114,523


$

138,498


$

191,942











Additional revenue metrics - ASC 605









Ratable revenue as % of total revenue (6)

54

%

56

%

63

%

60

%

59

%

72

%

72

%

80

%

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

19

%

23

%

34

%

34

%

28

%

54

%

56

%

72

%

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

12

%

13

%

12

%

13

%

13

%

11

%

12

%

12

%










Bookings metrics - ASC 605









Ratable bookings as % of total bookings (2)

55

%

61

%

65

%

70

%

64

%

72

%

76

%

83

%

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

26

%

37

%

45

%

51

%

41

%

59

%

67

%

81

%










Other metrics









Worldwide employees

3,193


3,305


3,418


3,489


3,489


3,663


3,896


4,101




(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