DATA

Tableau Software Inc (NYSE:DATA) reported results for its third quarter ended September 30, 2016.

  • Total revenue grew to $206.1 million, up 21% year over year.
  • License revenue grew to $116.7 million, up 7% year over year.
  • Added more than 3,600 new customer accounts.
  • Closed 360 transactions greater than $100,000, up 22% year over year.
  • Diluted GAAP net loss per share was $0.40; diluted non-GAAP net income per share was $0.16.
  • The Board of Directors has authorized the repurchase of up to $200 million of Tableau’s common stock.

“During the third quarter, we generated our highest quarterly revenues and expanded our customer base to over 50,000 customer accounts worldwide. But our results were impacted by extended sales cycles on large deals in the US and softness in EMEA,” saidChristian Chabot, Chairman and Co-Founder of Tableau.

“Tableau has that rare combination of leading products, talented people, dedication to technology innovation and passionate customers,” said Adam Selipsky, President and Chief Executive Officer of Tableau. “We see great opportunity to serve and expand our customer base, deepen our enterprise engagements, and accelerate our progress in the cloud. Looking ahead, I am confident that Tableau’s leading technology is well positioned to address the large and growing market opportunity for business analytics.”

Financial Results

Total revenue increased 21% to $206.1 million, up from $170.8 million in the third quarter of 2015. License revenue increased 7% to $116.7 million, up from $109.5 million in the third quarter of 2015. Maintenance and services revenue increased 46% to $89.4 million, up from $61.4 million in the third quarter of 2015.

GAAP operating loss for the third quarter of 2016 was $29.4 million, compared to a GAAP operating loss of $13.2 million for the third quarter of 2015. GAAP net loss for the third quarter of 2016 was $30.3 million, or $0.40 per diluted common share, compared to a GAAP net loss of $13.4 million, or $0.19 per diluted common share, for the third quarter of 2015.

Non-GAAP operating income, which excludes stock-based compensation expense and expense related to amortization of acquired intangible assets, was $18.1 million for the third quarter of 2016, compared to a non-GAAP operating income of $18.4 million for the third quarter of 2015. 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 $13.3 million for the third quarter of 2016, or $0.16 per diluted common share, compared to a non-GAAP net income of $10.6 million, or $0.14 per diluted common share, for the third quarter of 2015.

Highlights

During the quarter, Tableau expanded the Company’s leadership by appointing Adam Selipsky as President and Chief Executive Officer. Additionally, Tableau bolstered its technology leadership with the promotions of Andrew Beers as Chief Development Officer and Francois Ajenstat as Chief Product Officer.

Also during the quarter, Tableau launched Tableau 10, one of Tableau’s most significant releases in its history. Tableau 10 delivers new design and analytical innovations that make interacting with data on the web, mobile or in the enterprise faster and easier. Additional capabilities include cross-database joins to bring together disparate data sources, advanced analytics improvements like drag and drop clustering, a device designer for mobile responsive dashboards design and support for additional data sources.

In other news, Tableau:

  • Delivered new application program interfaces (“APIs”) to help developers build new experiences and extend the power of Tableau.
  • Announced global expansion of its free software program for non-profits making it easy for small non-profits, non-governmental organizations and community-based charities to do good with data.

$200 Million Stock Repurchase Program

Tableau’s Board of Directors authorized the Company to repurchase up to $200 million of the Company’s Class A common stock. The program allows the Company to repurchase its shares opportunistically from time to time when it believes that doing so would enhance long-term shareholder value. The repurchase authorization does not have a fixed expiration and may be modified, suspended or discontinued at any time. Purchases may be effected through one or more open market transactions, privately negotiated transactions, transactions structured through investment banking institutions or a combination of the foregoing. (Original Source)

Shares of Tableau Software are currently trading at $43.70, down $5.85 or 12%. DATA has a 1-year high of $104.92 and a 1-year low of $36.60. The stock’s 50-day moving average is $52.73 and its 200-day moving average is $52.92.

On the ratings front, Tableau Software has been the subject of a number of recent research reports. In a report released today, William Blair analyst Bhavan Suri downgraded DATA to Hold. Separately, Drexel Hamilton’s Brian White downgraded the stock to Hold.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Bhavan Suri and Brian White have a yearly average return of 5.8% and 8.8% respectively. Suri has a success rate of 57% and is ranked #513 out of 4173 analysts, while White has a success rate of 59% and is ranked #76.

Overall, 10 research analysts have assigned a Hold rating and 11 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $63.22 which is 43% above where the stock opened today.

Tableau Software, Inc. engages in the provision of analytics and data visualization software. Its software products put the power of data into the hands of everyday people, allowing a broad population of business users to engage with their data, ask questions, solve problems and create value. It offers products: Tableau Desktop, Tableau Server, Tableau Online, Tableau Reader and Tableau Public.