DATA
$129.34
Tableau Software Inc Class A
($.68)
(.52%)
Earnings Details
4th Quarter December 2018
Tuesday, February 5, 2019 4:05:00 PM
Tweet Share Watch
Summary

Tableau Software Inc Class A Misses

Tableau Software Inc Class A (DATA) reported a 4th Quarter December 2018 loss of $0.18 per share on revenue of $275.7 million. The consensus estimate was a loss of $0.08 per share on revenue of $276.4 million. The Earnings Whisper number was for a loss of $0.05 per share. Revenue grew 10.6% on a year-over-year basis.

The company said during its conference call it expects first quarter revenue of $278.0 million to $292.0 million and continues to expect 2019 revenue of $1.33 billion to $1.40 billion. The current consensus estimate is revenue of $292.1 million for the quarter ending March 31, 2019 and revenue of $1.36 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
($0.18)
Earnings Whisper
($0.05)
Consensus Estimate
($0.08)
Reported Revenue
$275.7 Mil
Revenue Estimate
$276.4 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Tableau Reports Q4 and Full Year 2018 Financial Results

SEATTLE, Feb. 5, 2019 /PRNewswire/ -- Tableau Software, Inc. (NYSE: DATA) today reported results for its fourth quarter and full year ended December 31, 2018.

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

"Analytics is becoming more ubiquitous as organizations embrace and reap the benefits from data-driven insights," said Adam Selipsky, President and Chief Executive Officer of Tableau. "Our fourth quarter capped a strong year of subscription transition and innovation that helped more and more customers scale Tableau to thousands and tens of thousands of users."

Fourth Quarter 2018

Financial Summary - ASC 606 (1)

  • ASC 606 total revenue was $336.3 million.
  • Total annual recurring revenue was $840.9 million as of December 31, 2018, up 41% year over year.
  • Subscription annual recurring revenue was $443.2 million as of December 31, 2018, up 127% year over year.
  • ASC 606 diluted GAAP net income per share was $0.03.
  • ASC 606 diluted non-GAAP net income per share was $0.59.

Financial Summary - ASC 605 (1)

  • ASC 605 total revenue was $275.7 million, compared to a guided range of $266.0 million to $276.0 million as provided during the Company's earnings call on November 6, 2018.
  • ASC 605 diluted GAAP net loss per share was $0.80.
  • ASC 605 diluted non-GAAP net loss per share was $0.03, compared to a guided range of $0.08 to $0.10 diluted non-GAAP net loss per share as provided during the Company's earnings call on November 6, 2018.

Full Year 2018

Financial Summary - ASC 606 (1)

  • ASC 606 total revenue was $1.16 billion.
  • ASC 606 diluted GAAP net loss per share was $0.93.
  • ASC 606 diluted non-GAAP net income per share was $1.56.

Financial Summary - ASC 605 (1)

  • ASC 605 total revenue was $982.9 million, up 12% year over year.
  • ASC 605 diluted GAAP net loss per share was $3.36.
  • ASC 605 diluted non-GAAP net loss per share was $0.30.

Fourth Quarter 2018

Financial Results - ASC 606 (1)

ASC 606 total revenue for the fourth quarter of 2018 was $336.3 million. Total annual recurring revenue increased 41% to $840.9 million as of December 31, 2018, up from $596.2 million as of December 31, 2017. Subscription annual recurring revenue increased 127% to $443.2 million as of December 31, 2018, up from $195.5 million as of December 31, 2017.

ASC 606 GAAP operating loss for the fourth quarter of 2018 was $3.2 million. ASC 606 GAAP net income for the fourth quarter of 2018 was $2.8 million, or $0.03 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 $60.0 million for the fourth 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 $52.2 million for the fourth quarter of 2018, or $0.59 per diluted common share.

During the fourth quarter ended December 31, 2018, Tableau repurchased 259,128 shares of its outstanding Class A common stock for a total of $30.0 million. As of December 31, 2018, Tableau was authorized to repurchase a remaining $280.0 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 months and full year ended December 31, 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 fourth quarter of 2018 was $275.7 million, up 11% from $249.4 million in the fourth quarter of 2017. ASC 605 GAAP operating loss for the fourth quarter of 2018 was $71.5 million, compared to a GAAP operating loss of $43.5 million for the fourth quarter of 2017. ASC 605 GAAP net loss for the fourth quarter of 2018 was $67.3 million, or $0.80 per diluted common share, compared to a GAAP net loss of $41.8 million, or $0.52 per diluted common share, for the fourth quarter of 2017.

ASC 605 non-GAAP operating loss, which excludes stock-based compensation expense and expense related to amortization of acquired intangible assets, was $8.3 million for the fourth quarter of 2018, compared to a non-GAAP operating income of $11.5 million for the fourth quarter of 2017. ASC 605 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 $2.7 million for the fourth quarter of 2018, or $0.03 per diluted common share, compared to a non-GAAP net income of $10.4 million, or $0.12 per diluted common share, for the fourth quarter of 2017.

Full Year 2018

Financial Results - ASC 606 (1)

ASC 606 total revenue for 2018 was $1.16 billion. ASC 606 GAAP operating loss for 2018 was $89.7 million. ASC 606 GAAP net loss for 2018 was $77.0 million, or $0.93 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 $150.8 million for 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 $134.9 million for 2018, or $1.56 per diluted common share.

Financial Results - ASC 605 (1)

ASC 605 total revenue for 2018 was $982.9 million, up 12% from $877.1 million in 2017. ASC 605 GAAP operating loss for 2018 was $288.8 million, compared to a GAAP operating loss of $191.0 million for 2017. ASC 605 GAAP net loss for 2018 was $277.2 million, or $3.36 per diluted common share, compared to a GAAP net loss of $185.6 million, or $2.35 per diluted common share, for 2017.

ASC 605 non-GAAP operating loss, which excludes stock-based compensation expense and expense related to amortization of acquired intangible assets, was $48.3 million for 2018, compared to a non-GAAP operating income of $20.1 million for 2017. ASC 605 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 $24.4 million for 2018, or $0.30 per diluted common share, compared to a non-GAAP net income of $22.7 million, or $0.27 per diluted common share, for 2017.

Recent Business Highlights

  • Released Tableau 2018.3, which includes heatmaps, new dashboarding capabilities and multiple table storage for extracts.
  • Announced a new Tableau embedded solution from Broadridge Financial Solutions, offering their investment management clients enhanced analytics capabilities.
  • During the last few months, we continued to grow our international footprint including expansion into Sweden, the Netherlands and Hong Kong.

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 fourth quarter and full year 2018 financial results, as well as its guidance for the first quarter of 2019 and outlook for full year 2019 under ASC 606. 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: 1974056. 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: 1974056.

About Tableau

Tableau (NYSE: DATA) helps people see and understand data. Tableau helps anyone quickly analyze, visualize and share information. More than 86,000 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 customer demand and customers' continued scaling of Tableau within their organizations; 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, features and capabilities to broaden and expand its analytics platform; 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 to expand its business and drive customer renewals; 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 year ended December 31, 2018 was 20%. The long-term non-GAAP tax rate applied to the year ended December 31, 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 year ended December 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 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 year ended December 31, 2018 (computed in accordance with ASC 606) are not as comparable to non-GAAP financial measures for the year ended December 31, 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
December 31,


Year Ended
December 31,


2018


2017


2018


2017

Revenues








License

$

170,813



$

129,240



$

555,581



$

429,204


Maintenance and services

165,463



120,116



599,771



447,855


Total revenues

336,276



249,356



1,155,352



877,059


Cost of revenues








License

7,597



4,060



21,407



13,534


Maintenance and services

32,598



26,250



121,217



100,025


Total cost of revenues (1)

40,195



30,310



142,624



113,559


Gross profit

296,081



219,046



1,012,728



763,500


Operating expenses








Sales and marketing (1)

169,101



151,426



593,786



517,446


Research and development (1)

97,409



84,285



382,886



334,148


General and administrative (1)

32,750



26,854



125,805



102,871


Total operating expenses

299,260



262,565



1,102,477



954,465


Operating loss

(3,179)



(43,519)



(89,749)



(190,965)


Other income, net

5,163



3,335



17,872



12,266


Income (loss) before income tax expense (benefit)

1,984



(40,184)



(71,877)



(178,699)


Income tax expense (benefit)

(849)



1,654



5,165



6,861


Net income (loss)

$

2,833



$

(41,838)



$

(77,042)



$

(185,560)










Net income (loss) per share:








Basic

$

0.03



$

(0.52)



$

(0.93)



$

(2.35)


Diluted

$

0.03



$

(0.52)



$

(0.93)



$

(2.35)










Weighted average shares used to compute net income (loss) per share:








Basic

83,941



80,074



82,632



78,869


Diluted

88,051



80,074



82,632



78,869



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



Three Months Ended
December 31,


Year Ended
December 31,


2018


2017


2018


2017

Cost of revenues

$

3,618



$

2,777



$

13,392



$

11,029


Sales and marketing

22,583



18,844



87,105



74,065


Research and development

30,045



27,780



111,965



104,280


General and administrative

6,464



5,259



26,269



20,909


 

Tableau Software, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)



December 31, 2018


December 31, 2017

Assets




Current assets




Cash and cash equivalents

$

653,022



$

627,878


Short-term investments

369,355



226,787


Accounts receivable, net

236,063



203,366


Prepaid expenses and other current assets

155,012



30,514


Income taxes receivable

2,268



673


Total current assets

1,415,720



1,089,218


Long-term investments

26,278



148,364


Property and equipment, net

94,537



106,753


Goodwill

42,530



35,083


Deferred income taxes

4,733



5,287


Other long-term assets

50,927



14,090


Total assets

$

1,634,725



$

1,398,795


Liabilities and stockholders' equity




Current liabilities




Accounts payable

$

6,652



$

4,448


Accrued compensation and employee-related benefits

105,155



96,390


Other accrued liabilities

55,896



37,722


Income taxes payable

2,982



4,743


Deferred revenue

377,892



419,426


Total current liabilities

548,577



562,729


Deferred revenue

16,306



28,058


Other long-term liabilities

56,257



54,385


Total liabilities

621,140



645,172


Stockholders' equity




Common stock

8



8


Additional paid-in capital

1,340,628



1,168,563


Accumulated other comprehensive loss

(11,458)



(11,991)


Accumulated deficit

(315,593)



(402,957)


Total stockholders' equity

1,013,585



753,623


Total liabilities and stockholders' equity

$

1,634,725



$

1,398,795


 

Tableau Software, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)



Year Ended December 31,


2018


2017

Operating activities




Net loss

$

(77,042)



$

(185,560)


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




Depreciation and amortization expense

35,787



44,746


Amortization (accretion) on investments, net

(424)



359


Stock-based compensation expense

238,731



210,283


Deferred income taxes

(2,180)



(2,988)


Changes in operating assets and liabilities




Accounts receivable, net

(36,519)



12,493


Prepaid expenses and other assets

(95,347)



8,054


Income taxes receivable

(1,675)



(515)


Deferred revenue

56,555



123,938


Accounts payable and accrued liabilities

38,396



13,529


Income taxes payable

(1,586)



2,528


Net cash provided by operating activities

154,696



226,867


Investing activities




Purchases of property and equipment

(20,446)



(61,823)


Business combination, net of cash acquired

(10,947)



(23,966)


Purchases of investments

(285,277)



(421,719)


Maturities of investments

262,835



30,630


Sales of investments

2,171



14,916


Net cash used in investing activities

(51,664)



(461,962)


Financing activities




Proceeds from issuance of common stock

44,710



38,856


Repurchases of common stock

(120,024)



(79,991)


Net cash used in financing activities

(75,314)



(41,135)


Effect of exchange rate changes on cash and cash equivalents

(2,574)



(4,609)


Net increase (decrease) in cash and cash equivalents

25,144



(280,839)


Cash and cash equivalents




Beginning of year

627,878



908,717


End of year

$

653,022



$

627,878


 

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 December 31,


2018


2017


As Reported
(ASC 606)


Impacts from
Adoption


Without
Adoption
(ASC 605)


As Reported
(ASC 605)

Revenues








License

$

170,813



$

(19,042)



$

151,771



$

129,240


Maintenance and services

165,463



(41,486)



123,977



120,116


Total revenues

336,276



(60,528)



275,748



249,356


Cost of revenues








License

7,597



(220)



7,377



4,060


Maintenance and services

32,598



199



32,797



26,250


Total cost of revenues

40,195



(21)



40,174



30,310


Gross profit

296,081



(60,507)



235,574



219,046


Operating expenses








Sales and marketing

169,101



7,981



177,082



151,426


Research and development

97,409





97,409



84,285


General and administrative

32,750



(119)



32,631



26,854


Total operating expenses

299,260



7,862



307,122



262,565


Operating loss

(3,179)



(68,369)



(71,548)



(43,519)


Other income, net

5,163



(158)



5,005



3,335


Income (loss) before income tax expense (benefit)

1,984



(68,527)



(66,543)



(40,184)


Income tax expense (benefit)

(849)



1,654



805



1,654


Net income (loss)

$

2,833



$

(70,181)



$

(67,348)



$

(41,838)










Net income (loss) per share:








Basic

$

0.03





$

(0.80)



$

(0.52)


Diluted

$

0.03





$

(0.80)



$

(0.52)










Weighted average shares used to compute net income (loss) per share:








Basic

83,941





83,941



80,074


Diluted

88,051





83,941



80,074





Year Ended December 31,


2018


2017


As Reported

(ASC 606)


Impacts from
Adoption


Without
Adoption

(ASC 605)


As Reported

(ASC 605)

Revenues








License

$

555,581



$

(57,531)



$

498,050



$

429,204


Maintenance and services

599,771



(114,872)



484,899



447,855


Total revenues

1,155,352



(172,403)



982,949



877,059


Cost of revenues








License

21,407



(484)



20,923



13,534


Maintenance and services

121,217



514



121,731



100,025


Total cost of revenues

142,624



30



142,654



113,559


Gross profit

1,012,728



(172,433)



840,295



763,500


Operating expenses








Sales and marketing

593,786



26,768



620,554



517,446


Research and development

382,886





382,886



334,148


General and administrative

125,805



(119)



125,686



102,871


Total operating expenses

1,102,477



26,649



1,129,126



954,465


Operating loss

(89,749)



(199,082)



(288,831)



(190,965)


Other income, net

17,872



(46)



17,826



12,266


Loss before income tax expense

(71,877)



(199,128)



(271,005)



(178,699)


Income tax expense

5,165



1,068



6,233



6,861


Net loss

$

(77,042)



$

(200,196)



$

(277,238)



$

(185,560)










Net loss per share:








Basic

$

(0.93)





$

(3.36)



$

(2.35)


Diluted

$

(0.93)





$

(3.36)



$

(2.35)










Weighted average shares used to compute net loss per share:








Basic

82,632





82,632



78,869


Diluted

82,632





82,632



78,869


 

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)



December 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

$

653,022



$



$

653,022



$

627,878


Short-term investments

369,355





369,355



226,787


Accounts receivable, net

236,063





236,063



203,366


Prepaid expenses and other current assets

155,012



(121,418)



33,594



30,514


Income taxes receivable

2,268



97



2,365



673


Total current assets

1,415,720



(121,321)



1,294,399



1,089,218


Long-term investments

26,278





26,278



148,364


Property and equipment, net

94,537





94,537



106,753


Goodwill

42,530





42,530



35,083


Deferred income taxes

4,733



3,170



7,903



5,287


Other long-term assets

50,927



(34,871)



16,056



14,090


Total assets

$

1,634,725



$

(153,022)



$

1,481,703



$

1,398,795


Liabilities and stockholders' equity








Current liabilities








Accounts payable

$

6,652



$



$

6,652



$

4,448


Accrued compensation and employee-related benefits

105,155





105,155



96,390


Other accrued liabilities

55,896





55,896



37,722


Income taxes payable

2,982



(46)



2,936



4,743


Deferred revenue

377,892



199,210



577,102



419,426


Total current liabilities

548,577



199,164



747,741



562,729


Deferred revenue

16,306



12,232



28,538



28,058


Other long-term liabilities

56,257



(1,718)



54,539



54,385


Total liabilities

621,140



209,678



830,818



645,172


Stockholders' equity








Common stock

8





8



8


Additional paid-in capital

1,340,628





1,340,628



1,168,563


Accumulated other comprehensive loss

(11,458)



1,902



(9,556)



(11,991)


Accumulated deficit

(315,593)



(364,602)



(680,195)



(402,957)


Total stockholders' equity

1,013,585



(362,700)



650,885



753,623


Total liabilities and stockholders' equity

$

1,634,725



$

(153,022)



$

1,481,703



$

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)



Year Ended December 31,


2018


2017


As Reported
(ASC 606)


Impacts from
Adoption


Without
Adoption
(ASC 605)


As Reported
(ASC 605)

Operating activities








Net loss

$

(77,042)



$

(200,196)



$

(277,238)



$

(185,560)


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








Depreciation and amortization expense

35,787





35,787



44,746


Amortization (accretion) on investments, net

(424)





(424)



359


Stock-based compensation expense

238,731





238,731



210,283


Deferred income taxes

(2,180)



942



(1,238)



(2,988)


Changes in operating assets and liabilities








Accounts receivable, net

(36,519)





(36,519)



12,493


Prepaid expenses and other assets

(95,347)



91,351



(3,996)



8,054


Income taxes receivable

(1,675)



(99)



(1,774)



(515)


Deferred revenue

56,555



108,141



164,696



123,938


Accounts payable and accrued liabilities

38,396





38,396



13,529


Income taxes payable

(1,586)



(49)



(1,635)



2,528


Net cash provided by operating activities

154,696



90



154,786



226,867


Investing activities








Purchases of property and equipment

(20,446)





(20,446)



(61,823)


Business combination, net of cash acquired

(10,947)





(10,947)



(23,966)


Purchases of investments

(285,277)





(285,277)



(421,719)


Maturities of investments

262,835





262,835



30,630


Sales of investments

2,171





2,171



14,916


Net cash used in investing activities

(51,664)





(51,664)



(461,962)


Financing activities








Proceeds from issuance of common stock

44,710





44,710



38,856


Repurchases of common stock

(120,024)





(120,024)



(79,991)


Net cash used in financing activities

(75,314)





(75,314)



(41,135)


Effect of exchange rate changes on cash and cash equivalents

(2,574)



(90)



(2,664)



(4,609)


Net increase (decrease) in cash and cash equivalents

25,144





25,144



(280,839)


Cash and cash equivalents








Beginning of year

627,878





627,878



908,717


End of year

$

653,022



$



$

653,022



$

627,878


 

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 December 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

$

296,081



$

(60,507)



$

235,574



$

219,046


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

3,618





3,618



2,777


Excluding: Amortization of acquired intangible assets

513





513



346


Non-GAAP gross profit

$

300,212



$

(60,507)



$

239,705



$

222,169










Reconciliation of gross margin to non-GAAP gross margin:








Gross margin

88.0

%




85.4

%


87.8

%

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

1.1

%




1.3

%


1.1

%

Excluding: Amortization of acquired intangible assets

0.2

%




0.2

%


0.1

%

Non-GAAP gross margin

89.3

%




86.9

%


89.1

%









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








Operating loss

$

(3,179)



$

(68,369)



$

(71,548)



$

(43,519)


Excluding: Stock-based compensation expense

62,710





62,710



54,660


Excluding: Amortization of acquired intangible assets

513





513



346


Non-GAAP operating income (loss)

$

60,044



$

(68,369)



$

(8,325)



$

11,487










Reconciliation of operating margin to non-GAAP operating margin:








Operating margin

(0.9)

%




(25.9)

%


(17.5)

%

Excluding: Stock-based compensation expense

18.6

%




22.7

%


21.9

%

Excluding: Amortization of acquired intangible assets

0.2

%




0.2

%


0.1

%

Non-GAAP operating margin

17.9

%




(3.0)

%


4.6

%




Three Months Ended December 31,


2018


2017


As Reported
(ASC 606)


Impacts from
Adoption


Without
Adoption
(ASC 605)


As Reported
(ASC 605)

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








Net income (loss)

$

2,833



$

(70,181)



$

(67,348)



$

(41,838)


Excluding: Stock-based compensation expense

62,710





62,710



54,660


Excluding: Amortization of acquired intangible assets

513





513



346


Income tax adjustments

(13,890)



15,359



1,469



(2,792)


Non-GAAP net income (loss)

$

52,166



$

(54,822)



$

(2,656)



$

10,376










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

83,941





83,941



80,074


Effect of potentially dilutive shares: stock awards

4,110







4,427


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

88,051





83,941



84,501










Non-GAAP net income (loss) per share:








Basic

$

0.62





$

(0.03)



$

0.13


Diluted

$

0.59





$

(0.03)



$

0.12





Year Ended December 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

$

1,012,728



$

(172,433)



$

840,295



$

763,500


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

13,392





13,392



11,029


Excluding: Amortization of acquired intangible assets

1,782





1,782



800


Non-GAAP gross profit

$

1,027,902



$

(172,433)



$

855,469



$

775,329










Reconciliation of gross margin to non-GAAP gross margin:








Gross margin

87.7

%




85.5

%


87.1

%

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

89.0

%




87.0

%


88.4

%









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








Operating loss

$

(89,749)



$

(199,082)



$

(288,831)



$

(190,965)


Excluding: Stock-based compensation expense

238,731





238,731



210,283


Excluding: Amortization of acquired intangible assets

1,782





1,782



800


Non-GAAP operating income (loss)

$

150,764



$

(199,082)



$

(48,318)



$

20,118










Reconciliation of operating margin to non-GAAP operating margin:








Operating margin

(7.8)

%




(29.4)

%


(21.8)

%

Excluding: Stock-based compensation expense

20.7

%




24.3

%


24.0

%

Excluding: Amortization of acquired intangible assets

0.2

%




0.2

%


0.1

%

Non-GAAP operating margin

13.0

%




(4.9)

%


2.3

%




Year Ended December 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

$

(77,042)



$

(200,196)



$

(277,238)



$

(185,560)


Excluding: Stock-based compensation expense

238,731





238,731



210,283


Excluding: Amortization of acquired intangible assets

1,782





1,782



800


Income tax adjustments

(28,562)



40,893



12,331



(2,854)


Non-GAAP net income (loss)

$

134,909



$

(159,303)



$

(24,394)



$

22,669










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

82,632





82,632



78,869


Effect of potentially dilutive shares: stock awards

4,096







4,092


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

86,728





82,632



82,961










Non-GAAP net income (loss) per share:








Basic

$

1.63





$

(0.30)



$

0.29


Diluted

$

1.56





$

(0.30)



$

0.27





Year Ended December 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

$

154,696



$

90



$

154,786



$

226,867


Less: Purchases of property and equipment

(20,446)





(20,446)



(61,823)


Free cash flow

$

134,250



$

90



$

134,340



$

165,044


Net cash used in investing activities

$

(51,664)



$



$

(51,664)



$

(461,962)


Net cash used in financing activities

$

(75,314)



$



$

(75,314)



$

(41,135)


Effect of exchange rate changes on cash and cash equivalents

$

(2,574)



$

(90)



$

(2,664)



$

(4,609)


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

Q4`18

FY 2018


(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

+

86,000

+

86,000

+

Customer accounts added in period (1)

3,300

+

4,000

+

4,100

+

4,700

+

16,100

+

3,900

+

4,100

+

3,800

+

3,900

+

15,700

+

Deals greater than $100,000 (2)

294


372


337


590


1,593


301


436


378


634


1,749


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

10


15


13


27



13


22


23


36














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


$

840,859


$

840,859


Subscription annual recurring revenue (4)

$

71,950


$

103,538


$

139,210


$

195,488


$

195,488


$

237,533


$

291,292


$

362,360


$

443,214


$

443,214













Geographic revenue metrics - ASC 606











United States and Canada






$

167,799


$

196,992


$

207,166


$

225,917


$

797,874


International






$

78,408


$

85,297


$

83,414


$

110,359


$

357,478


United States and Canada as % of total revenue






68

%

70

%

71

%

67

%

69

%

International as % of total revenue






32

%

30

%

29

%

33

%

31

%












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


$

189,844


$

683,073


International

$

58,410


$

66,778


$

64,858


$

81,240


$

271,286


$

69,601


$

74,332


$

70,039


$

85,904


$

299,876


United States and Canada as % of total revenue

71

%

69

%

70

%

67

%

69

%

69

%

69

%

71

%

69

%

69

%

International as % of total revenue

29

%

31

%

30

%

33

%

31

%

31

%

31

%

29

%

31

%

31

%












Additional revenue metrics - ASC 606











Contract assets (5)





$

40,854


$

60,666


$

72,559


$

89,843


$

105,593


$

105,593


Remaining performance obligations (6)





$

99,580


$

114,523


$

138,498


$

191,942


$

240,077


$

240,077













Additional revenue metrics - ASC 605











Ratable revenue as % of total revenue (7)

54

%

56

%

63

%

60

%

59

%

72

%

72

%

80

%

75

%

75

%

Ratable license revenue as % of total license revenue (8)

19

%

23

%

34

%

34

%

28

%

54

%

56

%

72

%

67

%

63

%

Services revenues as a % of maintenance and services revenue (9)

12

%

13

%

12

%

13

%

13

%

11

%

12

%

12

%

15

%

13

%












Bookings metrics - ASC 605











Ratable bookings as % of total bookings (2)

55

%

61

%

65

%

70

%

64

%

72

%

76

%

83

%

83

%

79

%

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

26

%

37

%

45

%

51

%

41

%

59

%

67

%

81

%

79

%

73

%












Other metrics











Worldwide employees

3,193


3,305


3,418


3,489


3,489


3,663


3,896


4,101


4,181


4,181



(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) Contract assets represent amounts related to performance obligations that are satisfied but not yet billed. These amounts are recorded as contract assets rather than receivables when receipt of the consideration is conditional on something other than the passage of time and are included in other current assets in the consolidated balance sheets. Contract assets presented under FY 2017 represents the balance as of January 1, 2018 upon adoption of ASC 606.


(6) 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.


(7) 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.


(8) 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.


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

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/tableau-reports-q4-and-full-year-2018-financial-results-300790233.html

SOURCE Tableau Software