Investor News

Tableau Announces Second Quarter 2013 Financial Results

08/08/2013

SEATTLE, Aug. 8, 2013 /PRNewswire/ -- Tableau Software (NYSE: DATA), a global leader in rapid-fire, easy-to-use business analytics software, today reported results for its second quarter ended June 30, 2013.

  • Total revenues were $49.9 million, up 71% year-over-year
  • License revenues were $33.5 million, up 66% year-over-year
  • GAAP loss per share was $0.05; Non-GAAP earnings per share were $0.01

"We are pleased with our performance in the second quarter," said Christian Chabot , CEO and President.  "We grew total revenues 71 percent from the prior year second quarter, and we added over 1,500 new customer accounts.  Our business continues to experience strong momentum, as customers use Tableau's software to turn data into revealing insights and stories."

Financial Highlights for the Second Quarter Ended June 30, 2013

Total revenues for the second quarter of 2013 were $49.9 million, representing a 71% increase from the second quarter of 2012.   License revenues were $33.5 million, representing a 66% increase from the second quarter of 2012.  Maintenance and services revenues were $16.4 million, representing an 84% increase from the second quarter of 2012. 

GAAP operating loss for the second quarter of 2013 was $2.3 million, compared to GAAP operating income of $2.8 million for the second quarter of 2012. GAAP net loss for the second quarter of 2013 was $2.6 million or $0.05 per diluted common share, compared to a GAAP net income of $1.1 million or $0.01 per diluted common share for the second quarter of 2012.

Non-GAAP operating income, which excludes stock-based compensation, was $1.0 million for the second quarter of 2013, compared to non-GAAP operating income of $3.9 million for the second quarter of 2012.  Non-GAAP net income was $0.3 million for the second quarter of 2013, or $0.01 per diluted common share, compared to non-GAAP net income of $2.0 million, or $0.03 per diluted common share for the second quarter of 2012. 

Free cash flow, which Tableau defines as net cash flow provided by operating activities less net cash used in investing activities for purchases of property and equipment, for the second quarter of 2013 was $2.1 million, compared to free cash flow of $1.9 million for the second quarter of 2012.

Recent Business Highlights

In addition to growing revenues and customer accounts, Tableau achieved other notable business milestones:

  • Launched Tableau Online, a cloud-based business intelligence product that makes it easier than ever for people to adopt Tableau's products.
  • Held its 2013 European Customer Conference in London. The event sold out with more than twice the number of attendees from the prior year.
  • Ranked first among "High Growth" vendors in Dresner's "Wisdom of Crowds" Business Intelligence Market Study.
  • Closed 80 sales orders of greater than $100,000 in the second quarter of 2013.
  • Appointed Scott Jones as VP, Americas Sales. Mr. Jones spent 11 years in various leadership roles at SAP where he was most recently the Chief Operations Officer of the global Database and Technology Division.
  • Announced a new program to provide complimentary software to journalists, to support the mission of journalism and provide state-of-the-art tools to journalists.
  • Named one of Austin's 2013 Best Places to Work by the Austin Business Journal.
  • Closed an initial public offering with net proceeds of $177.0 million.
  • Joined the Russell Global Index and the Russell 3000 Index.

Conference Call and Webcast Information

In conjunction with this announcement, Tableau will host a conference call at 2:00 p.m. PT (5:00 p.m. ET) today to discuss Tableau's second quarter 2013 financial results and the outlook for the third quarter of 2013 and full year 2013. 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.tableausoftware.com. The live call can be accessed by dialing (855) 354-1855 (U.S.) or (817) 382-5960 (outside the U.S.) and referencing passcode: 22575338. 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: 22575338. 

About Tableau

Tableau Software (NYSE: DATA) helps people see and understand data. Tableau helps anyone quickly analyze, visualize and share information. More than 13,500 customer accounts get rapid results with Tableau in the office and on-the-go. Tens of thousands of 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.tableausoftware.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 the company's growth momentum 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 our forward-looking statements include the following:  risks associated with anticipated growth in Tableau's addressable market; competitive factors, including changes in the competitive environment, pricing changes, sales cycle time and increased competition; our ability to build and expand our direct sales efforts and reseller distribution channels; general economic and industry conditions, including expenditure trends for business intelligence and productivity tools; new product introductions and our ability to develop and deliver innovative products; our ability to provide high-quality service and support offerings; risks associated with international operations; and macro-economic conditions.  These and other important risk factors are described more fully in documents filed with the Securities and Exchange Commission, including Tableau's final prospectus from its initial public offering 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 operating income (loss), non-GAAP net income (loss), non-GAAP diluted earnings (loss) per 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 operating income (loss) is calculated by deducting stock-based compensation expense from operating income (loss). Non-GAAP net income (loss) is calculated by deducting stock-based compensation expense from net income (loss).  Non-GAAP earnings (loss) per share (basic or diluted) is calculated by dividing non-GAAP net income (loss) by weighted average shares outstanding (basic or diluted).  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. Free cash flow is calculated 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 its business that can be used for strategic opportunities, including investing in its business, making strategic acquisitions and strengthening its balance sheet. All of these non-GAAP financial measures are important tools for financial and operational decision making and for evaluating our 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, particularly related to non-recurring, unusual items. 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 our 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.

 

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, 



2013


2012


2013


2012

Revenues









   License


$ 33,518


$ 20,239


$ 59,944


$ 37,695

   Maintenance and services


16,366


8,877


29,958


16,106

  Total revenues


49,884


29,116


89,902


53,801










Cost of revenues









   License


110


93


286


149

   Maintenance and services


4,236


2,406


7,610


4,021

  Total costs of revenues (1)


4,346


2,499


7,896


4,170










Gross profit


45,538


26,617


82,006


49,631










Operating expenses









   Sales and marketing (1)


27,565


12,983


51,237


23,560

   Research and development (1)


14,135


7,493


27,076


14,218

   General and administrative (1)


6,118


3,340


11,719


6,255

  Total operating expenses


47,818


23,816


90,032


44,033










Operating income (loss)


(2,280)


2,801


(8,026)


5,598

Other income (expense), net


(119)


(16)


(173)


(27)

Income (loss) before income tax expense (benefit)


(2,399)


2,785


(8,199)


5,571

Income tax expense (benefit)


176


1,726


(1,589)


3,455










Net income (loss)


$ (2,575)


$  1,059


$ (6,610)


$  2,116










Net income (loss) per share attributable to common stockholders:









Basic


$  (0.05)


$    0.01


$  (0.16)


$    0.03

Diluted


$  (0.05)


$    0.01


$  (0.16)


$    0.03










Weighted average shares used to compute net income (loss) per share
  attributable to common stockholders









Basic


46,893


33,834


40,867


33,592

Diluted


46,893


39,789


40,867


39,450










(1)      Costs and expenses include share-based compensation as follows:











Three Months Ended June 30, 


Six Months Ended June 30, 



2013


2012


2013


2012



(in thousands)

Cost of revenues


$     105


$       23


$     178


$       38

Sales and marketing


1,245


318


2,064


583

Research and development


1,277


488


2,312


914

General and administrative


677


276


1,249


521



$  3,304


$  1,105


$  5,803


$  2,056

 

Tableau Software, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)
















June 30, 2013


December 31, 2012

Assets





Current assets





   Cash and cash equivalents


$ 221,411


$ 39,302

   Accounts receivable, net


33,423


30,752

   Prepaid expenses and other current assets


4,302


2,789

   Income taxes receivable


3,829


1,072

   Deferred income taxes


2,250


2,246


Total current assets


265,215


76,161

Property and equipment, net


14,619


10,346

Deferred income taxes


110


66

Deposits and other non-current assets


678


419


Total assets


$ 280,622


$ 86,992

Liabilities, convertible preferred stock and stockholders' equity





Current liabilities





   Accounts payable 


3,524


2,176

   Accrued and other current liabilities


7,007


4,471

   Accrued compensation and employee related benefits


12,986


13,170

   Income taxes payable


317


129

   Deferred revenue


42,431


31,984


Total current liabilities


66,265


51,930

Deferred income taxes


1,353


1,353

Deferred revenue


2,914


2,423

Other long-term liabilities


2,107


1,312


Total liabilities


72,639


57,018







Convertible preferred stock


-


20,031

Stockholders' equity





   Common stock


6


4

   Additional paid-in-capital


216,382


11,698

   Accumulated other comprehensive loss


(37)


(1)

   Accumulated deficit


(8,368)


(1,758)


Total stockholders' equity


207,983


9,943


Total liabilities, convertible preferred stock and stockholders' equity 


$ 280,622


$ 86,992

 

Tableau Software, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)
























Three Months Ended June 30,


Six Months Ended June 30,




2013


2012


2013


2012

Operating activities









Net income (loss)


$   (2,575)


$  1,059


$   (6,610)


$  2,116

Adjustment to reconcile net income (loss) to net cash provided by
  operating activities:









   Depreciation expense


1,396


871


2,738


1,622

   Provision for doubtful accounts


11


36


29


50

   Stock-based compensation expense


3,304


1,105


5,803


2,056

   Excess tax benefit from stock-based compensation


(265)


-


(308)


1

   Deferred income taxes


192


-


256


-

   Changes in operating assets and liabilities










Accounts receivable


(5,425)


(3,484)


(2,835)


(4,956)


Prepaid expenses, deposits and other assets


(1,252)


(554)


(1,799)


(782)


Income taxes receivable


(225)


-


(2,761)


-


Deferred revenue


5,430


2,690


10,991


5,427


Accounts payable and accrued liabilities


4,697


1,526


3,949


624


Income taxes payable


159


276


199


1,815


   Net cash provided by operating activities


5,447


3,525


9,652


7,973

Investing activities









Purchase of property and equipment


(3,306)


(1,637)


(6,344)


(3,236)


   Net cash used in investing activities


(3,306)


(1,637)


(6,344)


(3,236)

Financing activities









Proceeds from initial public offering


176,974


-


176,974


-

Proceeds from issuance of common stock upon exercise of stock options


520


97


1,572


204

Deferred initial public offering costs


1,050


-


-


-

Excess tax benefit from stock-based compensation


265


-


308


(1)


Net cash provided by financing activities


178,809


97


178,854


203

Effect of exchange rate changes on cash and cash equivalents


(19)


-


(53)


-


Net increase in cash and cash equivalents


180,931


1,985


182,109


4,940

Cash and cash equivalents









Beginning of period


40,480


33,178


39,302


30,223

End of period


$ 221,411


$ 35,163


$ 221,411


$ 35,163

 

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, 



2013


2012


2013


2012

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


















Operating income (loss)


$(2,280)


$ 2,801


$(8,026)


$ 5,598

   Excluding: Stock-based compensation expense


3,304


1,105


5,803


2,056

Non-GAAP operating income (loss)


$  1,024


$ 3,906


$(2,223)


$ 7,654










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


















Net income (loss)


$(2,575)


$ 1,059


$(6,610)


$ 2,116

   Excluding: Stock-based compensation expense, net of tax


2,891


966


5,118


1,794

Non-GAAP net income (loss)


$    316


$ 2,025


$(1,492)


$ 3,910










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









GAAP net loss per share - basic


$  (0.05)


$  0.01


$  (0.16)


$  0.03

   Excluding: Stock-based compensation expense, net of tax


0.06


0.03


0.13


0.05

Non-GAAP net income (loss) per share - basic 


$   0.01


$  0.04


$  (0.03)


$  0.08










GAAP net loss per share - diluted


$  (0.05)


$  0.01


$  (0.16)


$  0.03

   Excluding: Stock-based compensation expense, net of tax


0.06


0.02


0.13


0.05

Non-GAAP net income (loss) per share - diluted


$   0.01


$  0.03


$  (0.03)


$  0.08










Weighted average shares used in computing GAAP and non-GAAP net income (loss)
  per share









   Basic


46,893


33,834


40,867


33,592

   Diluted 


46,893


39,789


40,867


39,450










Reconciliation of cash provided by operating activities to free cash flow (non-GAAP):









Net cash provided by operating activities


$  5,447


$ 3,525


$  9,652


$ 7,973

   Less: Purchases of property and equipment


3,306


1,637


6,344


3,236

Free cash flow (non-GAAP)


$  2,141


$ 1,888


$  3,308


$ 4,737

 

SOURCE Tableau Software

Investors, Carolyn Bass or Jacob Moelter, Market Street Partners, 415-445-3232 or 415-445-3235, tableau@marketstreetpartners.com; or Press, Doreen Jarman, Tableau PR Manager, 206.633.3400 x5648, djarman@tableausoftware.com