DATA
$55.27
Tableau Software Inc Class A
$.53
.97%
Earnings Details
2nd Quarter June 2016
Tuesday, August 02, 2016 4:01:00 PM
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Summary

Tableau Software Inc Class A Misses

Tableau Software Inc Class A (DATA) reported a 2nd Quarter June 2016 loss of $0.21 per share on revenue of $198.5 million. The consensus earnings estimate was $0.04 per share on revenue of $194.1 million. The Earnings Whisper number was $0.03 per share. Revenue grew 32.5% on a year-over-year basis.

The company said during its conference call it expects third quarter non-GAAP earnings of $0.04 to $0.09 per share on revenue of $210.0 million to $215.0 million. The current consensus earnings estimate is $0.16 per share on revenue of $219.4 million for the quarter ending September 30, 2016. The company also said it expects 2016 earnings of $0.18 to $0.31 per share on revenue of $825.0 million to $840.0 million. The current consensus earnings estimate is $0.55 per share on revenue of $848.1 million for the year ending December 31, 2016.

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
($0.21)
Earnings Whisper
$0.03
Consensus Estimate
$0.04
Reported Revenue
$198.5 Mil
Revenue Estimate
$194.1 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Tableau Reports Second Quarter 2016 Financial Results

Tableau Software, Inc. (DATA) today reported results for its second quarter ended June 30, 2016.

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-- Total revenue grew to $198.5 million, up 32% year over year.

-- License revenue grew to $116.3 million, up 20% year over year.

-- International revenue grew to $57.1 million, up 55% year over year.

-- Added more than 3,900 new customer accounts.

-- Closed 332 transactions greater than $100,000, up 42% year over year.

Diluted GAAP net loss per share was $0.64; diluted non-GAAP net loss per share was $0.00.

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

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

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

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

Highlights

Announced new data analytics learning partnerships with Lynda.com, Pluralsight, Udacity and General Assembly to offer deeper training on Tableau’s products.

Expanded relationship with Informatica to leverage Informatica solutions to easily access and integrate data across any cloud or on-premise source and quickly cleanse and prepare the data for use in Tableau.

Dresner Advisory Services announced Tableau as a recipient of their 2016 Industry Excellence Awards for Technology Leader and Trust Leader in business intelligence.

451 Research reaffirmed Tableau as a gold standard for visual analytics, recognizing investments in self-service data prep and advanced analytics.

Conference Call and Webcast Information In conjunction with this announcement, Tableau will host a conference call at 1:30 p.m. PT (4:30 p.m. ET) today to discuss Tableau’s second quarter 2016 financial results. A live audio webcast and replay of the call, together with detailed financial information, will be available in the Investor Relations section of Tableau’s website at http://investors.tableau.com. The live call can be accessed by dialing (877) 201-0168 (U.S.) or (647) 788-4901 (outside the U.S.) and referencing passcode 39793234. A replay of the call can also be accessed by dialing (855) 859-2056 (U.S.) or (404) 537-3406 (outside the U.S.), and referencing passcode 39793234.

About Tableau Tableau (DATA) helps people see and understand data. Tableau helps anyone quickly analyze, visualize and share information. As of June 30, 2016, more than 46,000 customer accounts get rapid results with Tableau in the office and on-the-go. Over 200,000 people use Tableau Public to share data in their blogs and websites. See how Tableau can help you by downloading the free trial at www.tableau.com/trial.

Tableau and Tableau Software are trademarks of Tableau Software, Inc. All other company and product names may be trademarks of the respective companies with which they are associated.

Forward-Looking Statements This press release contains, and statements made during the above referenced conference call will contain, "forward-looking" statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including regarding market acceptance of visual analytics, the Company’s business and customer growth and product adoption, including adoption by international customers, and leadership position in the market, the Company’s research and development investments, costs, efforts and future product releases, the Company’s ability to address any market opportunities, and the Company’s expectations regarding future revenues, expenses and net income or loss. These statements are not guarantees of future performance, but are based on management’s expectations as of the date of this press release and assumptions that are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements. Important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements include the following: risks associated with anticipated growth in Tableau’s business and addressable market; competitive factors, including new market entrants and changes in the competitive environment, pricing changes, sales cycle time and increased competition; Tableau’s ability to build and expand its direct sales efforts and reseller distribution channels; Tableau’s ability to attract, integrate and retain qualified personnel; general economic and industry conditions, including expenditure trends for business intelligence and productivity tools; new product introductions and Tableau’s ability to develop and deliver innovative products; Tableau’s ability to provide high-quality service and support offerings; risks associated with international operations; macroeconomic conditions; and market conditions. These and other important risk factors are described more fully in documents filed with the Securities and Exchange Commission, including Tableau’s most recently filed Quarterly Report on Form 10-Q and other reports and filings with the Securities and Exchange Commission, and could cause actual results to vary from expectations. All information provided in this release and in the conference call is as of the date hereof and Tableau undertakes no duty to update this information except as required by law.

Non-GAAP Financial Measures Tableau believes that the use of non-GAAP gross profit and gross margin, non-GAAP operating income (loss) and operating margin, non-GAAP net income (loss) and non-GAAP net income (loss) per basic and diluted common share is helpful to its investors. These measures, which are referred to as non-GAAP financial measures, are not prepared in accordance with generally accepted accounting principles in the United States, or GAAP. Non-GAAP gross profit is calculated by excluding stock-based compensation expense and expense related to amortization of acquired intangible assets, each to the extent attributable to the cost of revenues, from gross profit. Non-GAAP gross margin is the ratio calculated by dividing non-GAAP gross profit by total revenues. Non-GAAP operating income (loss) is calculated by excluding stock-based compensation expense and expense related to amortization of acquired intangible assets from operating income (loss). Non-GAAP operating margin is the ratio calculated by dividing non-GAAP operating income (loss) by total revenues. Non-GAAP net income (loss) is calculated by excluding stock-based compensation expense, expense related to amortization of acquired intangible assets and non-GAAP income tax adjustments from net income (loss). Non-GAAP net income (loss) per basic and diluted common share is calculated by dividing non-GAAP net income (loss) by the basic and diluted weighted average shares outstanding. Non-GAAP diluted weighted average shares outstanding includes the effect of dilutive shares in periods of non-GAAP net income.

Non-GAAP financial information for the quarter is adjusted for a tax rate equal to Tableau’s estimated tax rate on non-GAAP income over a three-year financial projection. This rate is based on Tableau’s estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating the non-GAAP financial measures. To determine this long-term non-GAAP tax rate, Tableau evaluates a three-year financial projection that excludes the impact of non-cash stock-based compensation expense and expense related to amortization of acquired intangible assets. The long-term non-GAAP tax rate takes into account other factors including Tableau’s current operating structure, its existing tax positions in various jurisdictions and key legislation in major jurisdictions where Tableau operates. The long-term non-GAAP tax rate applied to the three and six months ended June 30, 2015 was 43% and did not assume the U.S. federal R&D tax credit would be extended. In December 2015, the federal R&D tax credit was permanently extended. Accordingly, the Company revised its long-term non-GAAP tax rate to 30% and applied this rate to the three and six months ended June 30, 2016. The long-term non-GAAP tax rate assumes the Company’s deferred income tax assets will be realized based upon projected future taxable income excluding stock-based compensation expense. The Company anticipates using this long-term non-GAAP tax rate in future periods and may provide updates to this rate on an annual basis upon the completion of each fiscal year, or more frequently if material changes occur.

Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company’s non-cash expenses, Tableau believes that providing non-GAAP financial measures that exclude stock-based compensation expense allow for more meaningful comparisons between its operating results from period to period. The expense related to amortization of acquired intangible assets is dependent upon estimates and assumptions, which can vary significantly and are unique to each asset acquired; therefore, Tableau believes non-GAAP measures that adjust for the amortization of acquired intangible assets provides investors a consistent basis for comparison across accounting periods. All of these non-GAAP financial measures are important tools for financial and operational decision making and for evaluating Tableau’s own operating results over different periods of time.

Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in Tableau’s industry, as other companies in the industry may calculate non-GAAP financial results differently. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on Tableau’s reported financial results. Further, stock-based compensation expense has been and will continue to be for the foreseeable future a significant recurring expense in Tableau’s business and an important part of the compensation provided to its employees. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Investors should review the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures included below, and not rely on any single financial measure to evaluate Tableau’s business.

International revenues as described above represent GAAP revenues outside the United States and Canada.

Tableau Software, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2016
2015
2016
2015
Revenues
License
$
116,349
$
96,741
$
212,764
$
181,161
Maintenance and services
82,186
53,119
157,469
98,844
Total revenues
198,535
149,860
370,233
280,005
Cost of revenues
License
1,602
477
2,633
1,349
Maintenance and services
23,262
16,276
44,724
30,825
Total cost of revenues (1)
24,864
16,753
47,357
32,174
Gross profit
173,671
133,107
322,876
247,831
Operating expenses
Sales and marketing (1)
119,889
85,061
226,053
157,251
Research and development (1)
77,516
47,333
148,409
89,183
General and administrative (1)
23,141
18,674
41,673
33,169
Total operating expenses
220,546
151,068
416,135
279,603
Operating loss
(46,875)
(17,961)
(93,259)
(31,772)
Other income (expense), net
1,019
(623)
2,682
1,187
Loss before income tax expense (benefit)
(45,856)
(18,584)
(90,577)
(30,585)
Income tax expense (benefit)
1,666
395
2,523
(1,579)
Net loss
$
(47,522)
$
(18,979)
$
(93,100)
$
(29,006)
Net loss per share:
Basic
$
(0.64)
$
(0.27)
$
(1.25)
$
(0.41)
Diluted
$
(0.64)
$
(0.27)
$
(1.25)
$
(0.41)
Weighted average shares used to compute net loss per share:
Basic
74,756
71,426
74,286
70,961
Diluted
74,756
71,426
74,286
70,961
(1) Includes stock-based compensation expense as follows:
Three Months Ended June 30,
Six Months Ended June 30,
2016
2015
2016
2015
Cost of revenues
$
2,642
$
1,644
$
5,446
$
2,948
Sales and marketing
16,605
10,790
33,550
19,299
Research and development
22,409
12,462
44,508
22,548
General and administrative
3,715
3,561
7,067
5,909
Tableau Software, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
June 30, 2016
December 31, 2015
Assets
Current assets
Cash and cash equivalents
$
834,747
$
795,900
Accounts receivable, net
134,025
131,784
Prepaid expenses and other current assets
17,919
16,977
Income taxes receivable
5
78
Total current assets
986,696
944,739
Property and equipment, net
84,662
72,350
Goodwill
15,531
932
Deferred income taxes
1,439
1,544
Deposits and other assets
12,322
11,146
Total assets
$
1,100,650
$
1,030,711
Liabilities and stockholders’ equity
Current liabilities
Accounts payable
$
12,596
$
1,152
Accrued compensation and employee related benefits 52,629
53,003
Other accrued liabilities
37,522
31,838
Income taxes payable
1,114
1,000
Deferred revenue
213,551
185,608
Total current liabilities
317,412
272,601
Deferred revenue
17,528
12,903
Other long-term liabilities
18,158
11,262
Total liabilities
353,098
296,766
Stockholders’ equity
Common stock
7
7
Additional paid-in capital
914,554
805,804
Accumulated other comprehensive income (loss)
(1,400)
643
Accumulated deficit
(165,609)
(72,509)
Total stockholders’ equity
747,552
733,945
Total liabilities and stockholders’ equity
$
1,100,650
$
1,030,711
Tableau Software, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Six Months Ended June 30,
2016
2015
Operating activities
Net loss
$
(93,100)
$
(29,006)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization expense
16,001
10,146
Stock-based compensation expense
90,571
50,704
Excess tax benefit from stock-based compensation
(552)
(633)
Deferred income taxes
239
(2,884)
Changes in operating assets and liabilities
Accounts receivable, net
(2,176)
605
Prepaid expenses, deposits and other assets
(419)
(7,173)
Income taxes receivable
72
77
Deferred revenue
31,654
22,783
Accounts payable and accrued liabilities
18,086
10,383
Income taxes payable
105
49
Net cash provided by operating activities
60,481
55,051
Investing activities
Purchases of property and equipment
(23,452)
(19,117)
Business combinations
(16,399)
--
Net cash used in investing activities
(39,851)
(19,117)
Financing activities
Proceeds from issuance of common stock
18,040
12,900
Excess tax benefit from stock-based compensation
552
633
Net cash provided by financing activities
18,592
13,533
Effect of exchange rate changes on cash and cash equivalents
(375)
(574)
Net increase in cash and cash equivalents
38,847
48,893
Cash and cash equivalents
Beginning of period
795,900
680,613
End of period
$
834,747
$
729,506
Tableau Software, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share data)
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2016
2015
2016
2015
Reconciliation of gross profit to non-GAAP gross profit:
Gross profit
$
173,671
$
133,107
$
322,876
$
247,831
Excluding: Stock-based compensation expense attributable to cost of revenues
2,642
1,644
5,446
2,948
Excluding: Amortization of acquired intangible assets
103
--
132
--
Non-GAAP gross profit
$
176,416
$
134,751
$
328,454
$
250,779
Reconciliation of gross margin to non-GAAP gross margin:
Gross margin
87.5
%
88.8
%
87.2
%
88.5
%
Excluding: Stock-based compensation expense attributable to cost of revenues
1.3
%
1.1
%
1.5
%
1.1
%
Excluding: Amortization of acquired intangible assets
0.1
%
--
%
0.0
%
--
%
Non-GAAP gross margin
88.9
%
89.9
%
88.7
%
89.6
%
Reconciliation of operating loss to non-GAAP operating income (loss):
Operating loss
$
(46,875)
$
(17,961)
$
(93,259)
$
(31,772)
Excluding: Stock-based compensation expense
45,371
28,457
90,571
50,704
Excluding: Amortization of acquired intangible assets
103
--
132
--
Non-GAAP operating income (loss)
$
(1,401)
$
10,496
$
(2,556)
$
18,932
Reconciliation of operating margin to non-GAAP operating margin:
Operating margin
(23.6)%
(12.0)%
(25.2)%
(11.3)%
Excluding: Stock-based compensation expense
22.9
%
19.0
%
24.5
%
18.1
%
Excluding: Amortization of acquired intangible assets
0.1
%
--
%
0.0
%
--
%
Non-GAAP operating margin
(0.7)%
7.0
%
(0.7)%
6.8
%
Three Months Ended June 30,
Six Months Ended June 30,
2016
2015
2016
2015
Reconciliation of net loss to non-GAAP net income (loss):
Net loss
$
(47,522)
$
(18,979)
$
(93,100)
$
(29,006)
Excluding: Stock-based compensation expense
45,371
28,457
90,571
50,704
Excluding: Amortization of acquired intangible assets
103
--
132
--
Income tax adjustments
1,780
(3,850)
2,485
(10,230)
Non-GAAP net income (loss)
$
(268)
$
5,628
$
88
$
11,468
Weighted average shares used to compute non-GAAP basic net income (loss) per share
74,756
71,426
74,286
70,961
Effect of potentially dilutive shares: stock awards
--
6,250
4,941
6,163
Weighted average shares used to compute non-GAAP diluted net income (loss) per share 74,756
77,676
79,227
77,124
Non-GAAP net income (loss) per share:
Basic
$
(0.00)
$
0.08
$
0.00
$
0.16
Diluted
$
(0.00)
$
0.07
$
0.00
$
0.15

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SOURCE Tableau Software

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