DATA

Tableau Software Inc (NYSE:DATA) reported results for its fourth quarter and fiscal year ended December 31, 2015.

Fourth Quarter 2015 Financial Results:

  • Total revenue grew to $202.8 million, up 42% year over year.
  • License revenue grew to $133.1 million, up 31% year over year.
  • International revenue grew to $53.7 million, up 63% year over year.
  • Added more than 3,600 new customer accounts.
  • Closed 414 transactions greater than $100,000, up 36% year over year.
  • Diluted GAAP net loss per share was $0.57; diluted non-GAAP net income per share was $0.33.
  • Recognized a valuation allowance on deferred income tax assets of $46.7 million.

Fiscal Year 2015 Financial Results:

  • Total revenue grew to $653.6 million, up 58% year over year.
  • License revenue grew to $423.8 million, up 51% year over year.
  • International revenue grew to $164.3 million, up 75% year over year.
  • Added more than 12,500 new customer accounts.
  • Closed 1,192 transactions greater than $100,000, up 53% year over year.
  • Diluted GAAP net loss per share was $1.17; diluted non-GAAP net income per share was $0.62.

“In Q4, a record 3,600 new customer accounts chose Tableau, bringing our total to more than 39,000 worldwide. This speaks to the immense popularity of Tableau’s products and continued strong demand from customers around the world,” said Christian Chabot, Chief Executive Officer of Tableau. “I remain optimistic that Tableau is best positioned to address the large and growing market opportunity for self-service visual analytics.”

Financial Results for the Fourth Quarter Ended December 31, 2015

Total revenue increased 42% to $202.8 million, up from $142.9 million in the fourth quarter of 2014. License revenue increased 31% to $133.1 million, up from $101.4 million in the fourth quarter of 2014. International revenue grew to $53.7 million, up 63% from $32.8 million in the fourth quarter of 2014.

GAAP operating loss for the fourth quarter of 2015 was $7.1 million, compared to a GAAP operating income of $16.1 million for the fourth quarter of 2014. GAAP net loss for the fourth quarter of 2015 was $41.3 million, or $0.57 per diluted common share, compared to a GAAP net income of $20.7 million, or $0.27 per diluted common share, for the fourth quarter of 2014.

The fourth quarter income tax expense was $34.1 million due to the recognition of a valuation allowance. We believe that it is more likely than not that the benefit from our U.S. federal and state deferred tax assets will not be realized. In recognition of this risk, we have provided a valuation allowance of $46.7 million on the deferred tax assets relating to these jurisdictions. Excluding the impact of the valuation allowance, the income tax benefit was $12.7 million for the fourth quarter primarily as a result of the permanent extension of the federal R&D tax credit.

Non-GAAP operating income, which excludes stock-based compensation expense, was $30.1 million for the fourth quarter of 2015, compared to a non-GAAP operating income of $31.6 million for the fourth quarter of 2014. Non-GAAP net income, which excludes stock-based compensation expense and related income tax adjustments, was $26.0 million for the fourth quarter of 2015, or $0.33 per diluted common share, compared to a non-GAAP net income of $31.8 million, or $0.42 per diluted common share, for the fourth quarter of 2014.

Financial Results for the Fiscal Year Ended December 31, 2015
Total revenue increased 58% to $653.6 million, up from $412.6 million in 2014. License revenue increased 51% to $423.8 million, up from $279.9 million in 2014. International revenue grew to $164.3 million, up 75% from $93.8 million in 2014.

GAAP operating loss for 2015 was $52.0 million, compared to a GAAP operating income of $6.3 million for 2014. GAAP net loss for 2015 was $83.7 million, or $1.17 per diluted common share, compared to a GAAP net income of $5.9 million, or $0.08 per diluted common share, for 2014.

Non-GAAP operating income, which excludes stock-based compensation expense, was $67.4 million for 2015, compared to a non-GAAP operating income of $53.3 million for 2014. Non-GAAP net income, which excludes stock-based compensation expense and related income tax adjustments, was $48.1 million for 2015, or $0.62 per diluted common share, compared to a non-GAAP net income of $38.5 million, or $0.52 per diluted common share, for 2014.

Highlights

Recent Business Highlights

  • Released Tableau 9.2, delivering new data preparation improvements, customization for maps, enhanced security and a new native iPhone app.
  • Opened a new data center in Europe to support the growing international customer base and demand for Tableau’s cloud products. Held its Global Partner Summit in Austin, TX; Tableau Partner awards went to Interworks, Slalom, FiveActs, Amazon Web Services, Cerner Corporation, Infosys Limited, and USEReady in recognition of excellent performance and notable achievements.

Record Customer Adoption

  • 88% of Fortune 500 companies, such as Cisco, Wells Fargo and Capital One, use Tableau, which bodes well for our land and expand strategy.
  • Tableau Online continues to be the Company’s fastest-growing product with more than 3,000 customer accounts.
  • 2015 was a marquee year for Tableau’s international adoption. Customers in over 150 countries use Tableau. Over 17,000 customer accounts are located outside of North America.
    • More than 9,000 in Europe, Middle East and Africa
    • More than 6,000 in Asia Pacific
    • More than 2,000 in Latin America
  • Asia Pacific was the region with the fastest growth in customer acquisition, increasing over 75% year over year.

Continued Innovation

  • In 2015, Tableau accelerated its rate of innovation, delivering Tableau 9.0 in April, Tableau 9.1 in September and Tableau 9.2 in December.
  • Recent product updates included:
    • New data preparation capabilities including an algorithm that automatically detects relevant data and cleans up spreadsheets.
    • Level of Detail Expressions, a feature that lets people easily express complex calculations with a few clicks.
    • Its first standalone mobile app, Vizable, which has been downloaded in 87 countries worldwide. The app, available for free on the iPad, allows users to explore their data using gestures such as pinching, swiping and dragging.
    • A web data connector and expanded partnerships with the leading cloud databases.

Tableau Community

  • Tableau Public, Tableau’s free platform for creating and sharing public data stories, had over 80,000 new authors publish over 200,000 new visualizations, from Global CO2 Emissions, to The Cost of Attending the 2015 World Series, to a history of Monarchy in the U.K.
  • To date, more than 150,000 authors have published over 470,000 visualizations. Approximately two-thirds of Tableau Public views come from outside of the U.S.
  • In October, Tableau held its largest customer conference to date. It attracted more than 10,000 customers to Las Vegas for hands-on training, keynotes and sessions. The conference offered 340 sessions, and more than 100 Tableau customers shared their success stories and analytics wins. People from nearly every industry, including government, healthcare, manufacturing and retail shared their data successes.
  • Tableau User Groups garnered momentum in 2015, with over 300 groups globally and over 75,000 members. Tableau held its first virtual Tableau User Group with over 3,500 live participants.

Employee and Office Growth

  • Tableau hired more than 1,000 employees during 2015 and now has more than 3,000 employees worldwide.
  • Since prior year, Tableau opened new offices in Washington, DC, New York City, Singapore, Vancouver, Paris, Beijing and Shanghai. Tableau now has offices in 16 cities worldwide. (Original Source)

Shares of Tableau Software are falling nearly 44% in after-hours trading. DATA has a 1-year high of $131.34 and a 1-year low of $71.61. The stock’s 50-day moving average is $86.24 and its 200-day moving average is $92.47.

On the ratings front, Tableau has been the subject of a number of recent research reports. In a report released yesterday, Maxim Group analyst Nehal Chokshi initiated coverage with a Sell rating on DATA and a price target of $70, which implies a downside of 14.4% from current levels. Separately, on February 1, Mitsubishi UFJ Financial Group’s Stephen Bersey upgraded the stock to Hold and has a price target of $81.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Nehal Chokshi and Stephen Bersey have a total average return of -10.6% and -9.6% respectively. Chokshi has a success rate of 35.7% and is ranked #3019 out of 3612 analysts, while Bersey has a success rate of 60.0% and is ranked #2631.

Overall, one research analyst has rated the stock with a Sell rating, 4 research analysts have assigned a Hold rating and 4 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 $115.50 which is 41.3% above where the stock opened today.

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.