Tableau Reports Third Quarter 2017 Financial Results

SEATTLE, Nov. 2, 2017 /PRNewswire/ -- Tableau Software, Inc. (NYSE: DATA) today reported results for its third quarter ended September 30, 2017.

"Customers are embracing our subscription offerings even faster than expected," said Adam Selipsky, President and Chief Executive Officer of Tableau. "Forty-five percent of our license bookings were sold on a subscription basis this quarter, nearly triple the percentage a year ago, as more and more customers turn to subscription to better address their analytics needs with lower upfront cost and reduced risk."

Financial Summary

    --  Total revenue grew to $214.9 million, up 4% year over year.
    --  Total annual recurring revenue was $526.2 million, up 46% year over
        year.
    --  Subscription annual recurring revenue was $139.2 million, up 204% year
        over year.
    --  Ratable license bookings were 45% of total license bookings, compared to
        16% in the third quarter of 2016.
    --  Diluted GAAP net loss per share was $0.59; diluted non-GAAP net income
        per share was $0.08.

Financial Results
Total revenue increased 4% to $214.9 million, up from $206.1 million in the third quarter of 2016. Total annual recurring revenue increased 46% to $526.2 million, up from $361.4 million at the end of the third quarter of 2016. Subscription annual recurring revenue increased 204% to $139.2 million, up from $45.7 million at the end of the third quarter of 2016.

GAAP operating loss for the third quarter of 2017 was $49.0 million, compared to a GAAP operating loss of $29.4 million for the third quarter of 2016. GAAP net loss for the third quarter of 2017 was $46.6 million, or $0.59 per diluted common share, compared to a GAAP net loss of $30.3 million, or $0.40 per diluted common share, for the third quarter of 2016.

Non-GAAP operating income, which excludes stock-based compensation expense and expense related to amortization of acquired intangible assets, was $5.5 million for the third quarter of 2017, compared to a non-GAAP operating income of $18.1 million for the third quarter of 2016. 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 $6.4 million for the third quarter of 2017, or $0.08 per diluted common share, compared to a non-GAAP net income of $13.3 million, or $0.16 per diluted common share, for the third quarter of 2016.

During the third quarter ended September 30, 2017, Tableau repurchased 276,491 shares of the Company's outstanding Class A common stock for a total of $20.0 million. As of September 30, 2017, the Company was authorized to repurchase a remaining $120.0 million of its Class A common stock under the previously authorized repurchase program.

Recent Business Highlights

    --  Launched Tableau 10.4, which includes data source certification, to help
        customers use the right data at the right time, functionality for
        smarter conversations between teams with discussions and viz snapshots
        and new geospatial capabilities.
    --  Acquired ClearGraph, a startup that enables smart data discovery and
        data analysis through natural language query technology ("NLQ").
    --  Hosted Tableau's 10th annual customer conference in Las Vegas, with
        14,000 registered customers and partners. Tableau Conference provided
        more than 400 learning sessions, including over 100 customers sharing
        their use cases and best practices with Tableau. Upcoming innovations
        were showcased at the conference, including the new Hyper data engine in
        beta, Tableau Server on the Linux operating system, a new extensions API
        in developer preview and Maestro, Tableau's data prep product expected
        to be in beta by the end of the year.

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 third quarter 2017 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 (833) 241-7252 (U.S.) or (647) 689-4216 (outside the U.S.) and referencing passcode 99505369. 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 99505369.

About Tableau
Tableau (NYSE: DATA) helps people see and understand data. Tableau helps anyone quickly analyze, visualize and share information. More than 65,000 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 regarding the Company's transition to subscription licensing and continued product 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; the Company's further transition to subscription and term licensing and its expected increase in demand for its products as a result of its subscription license pricing; the willingness and ability of its partners to sell its subscription licenses; 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 a visual analytics platform; the Company's expectations 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: risks associated with anticipated growth in Tableau's business and addressable market; customer demand for Tableau's products and services and customer response to its subscription pricing offerings; 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; Tableau's ability to provide high-quality customer service and support offerings; 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 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 nine months ended September 30, 2017 and 2016 was 30%. 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, 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.

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 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.


                                                                        Tableau Software, Inc.

                                                           Condensed Consolidated Statements of Operations

                                                                (In thousands, except per share data)

                                                                             (Unaudited)


                                              Three Months Ended                                           Nine Months Ended
                                              September 30,                                           September 30,
                                              -------------

                                        2017                   2016                      2017                               2016
                                        ----                   ----                      ----                               ----

    Revenues

    License                                    $99,424                                          $116,655                             $299,964       $329,419

    Maintenance and services         115,493                             89,402                               327,739                  246,871
                                     -------

    Total revenues                   214,917                            206,057                               627,703                  576,290
                                     -------                            -------                               -------                  -------

    Cost of revenues

    License                            3,265                              1,760                                 9,474                    4,393

    Maintenance and services          26,664                             22,270                                73,775                   66,994

    Total cost of revenues (1)        29,929                             24,030                                83,249                   71,387
                                      ------                             ------                                ------                   ------

    Gross profit                     184,988                            182,027                               544,454                  504,903
                                     -------                            -------                               -------                  -------

    Operating expenses

    Sales and marketing (1)          123,842                            114,530                               366,020                  340,583

    Research and development (1)      84,494                             75,348                               249,863                  223,757

    General and administrative (1)    25,697                             21,505                                76,017                   63,178

    Total operating expenses         234,033                            211,383                               691,900                  627,518
                                     -------                            -------                               -------                  -------

    Operating loss                  (49,045)                          (29,356)                            (147,446)                (122,615)

    Other income, net                  3,677                                814                                 8,931                    3,496
                                       -----                                ---                                 -----                    -----

    Loss before income tax expense  (45,368)                          (28,542)                            (138,515)                (119,119)

    Income tax expense                 1,185                              1,719                                 5,207                    4,242

    Net loss                                 $(46,553)                                        $(30,261)                          $(143,722)    $(123,361)
                                              ========                                          ========                            =========      =========


    Net loss per share:

      Basic                                    $(0.59)                                          $(0.40)                             $(1.83)       $(1.65)

      Diluted                                  $(0.59)                                          $(0.40)                             $(1.83)       $(1.65)


    Weighted average shares used to
     compute net loss per share:

      Basic                           79,440                             75,647                                78,463                   74,743

      Diluted                         79,440                             75,647                                78,463                   74,743


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


                       Three Months Ended             Nine Months Ended
                         September 30,                  September 30,
                         -------------

                      2017                2016         2017                2016
                      ----                ----         ----                ----


     Cost
     of
     revenues                 $2,885                          $2,614            $8,252  $8,060

     Sales
     and
     marketing      18,603                     17,487                   55,221   51,037

     Research
     and
     development    27,337                     23,372                   76,500   67,880

     General
     and
     administrative  5,489                      3,910                   15,650   10,977


                                                 Tableau Software, Inc.

                                         Condensed Consolidated Balance Sheets

                                                     (In thousands)

                                                      (Unaudited)


                                                  September 30, 2017                  December 31, 2016
                                                  ------------------               -----------------

    Assets

    Current assets

    Cash and cash equivalents                                             $790,945                          $908,717

    Short-term investments                                   152,351                                    -

    Accounts receivable, net                                 131,595                              206,765

    Prepaid expenses and other
     current assets                                           38,442                               36,011

    Income taxes receivable                                      448                                  131

    Total current assets                                   1,113,781                            1,151,624

    Long-term investments                                     45,512                                    -

    Property and equipment, net                              106,100                              106,637

    Goodwill                                                  35,083                               15,531

    Deferred income taxes                                      2,482                                1,449

    Deposits and other assets                                 16,340                               11,958

    Total assets                                                        $1,319,298                        $1,287,199
                                                                        ==========                        ==========

    Liabilities and stockholders' equity

    Current liabilities

    Accounts payable                                                        $9,713                           $17,637

    Accrued compensation and
     employee related benefits                                78,795                               70,230

    Other accrued liabilities                                 58,777                               53,418

    Income taxes payable                                       2,002                                1,893

    Deferred revenue                                         338,848                              285,543
                                                             -------                              -------

    Total current liabilities                                488,135                              428,721

    Deferred revenue                                          27,504                               26,930

    Other long-term liabilities                               51,057                               39,700
                                                              ------                               ------

    Total liabilities                                        566,696                              495,351
                                                             -------                              -------

    Stockholders' equity

    Common stock                                                   8                                    8

    Additional paid-in capital                             1,122,903                            1,007,205

    Accumulated other comprehensive
     income (loss)                                           (9,189)                               1,593

    Accumulated deficit                                    (361,120)                           (216,958)
                                                            --------                             --------

    Total stockholders' equity                               752,602                              791,848

    Total liabilities and
     stockholders' equity                                               $1,319,298                        $1,287,199
                                                                        ==========                        ==========


                                                          Tableau Software, Inc.

                                             Condensed Consolidated Statements of Cash Flows

                                                              (In thousands)

                                                               (Unaudited)


                                                                                Nine Months Ended
                                                                                September 30,

                                                                       2017                          2016
                                                                       ----                          ----

    Operating activities

    Net loss                                                                  $(143,722)                    $(123,361)

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

    Depreciation and amortization expense                            34,174                          25,091

    Amortization of premiums on investments                             162                               -

    Stock-based compensation expense                                155,623                         137,954

    Deferred income taxes                                             (226)                            282

    Changes in operating assets and
     liabilities

    Accounts receivable, net                                         80,030                         (5,150)

    Prepaid expenses, deposits and other
     assets                                                           (138)                       (10,355)

    Income taxes receivable                                           (297)                             72

    Deferred revenue                                                 45,109                          49,868

    Accounts payable and accrued liabilities                          9,452                          32,043

    Income taxes payable                                                 26                             517

    Net cash provided by operating
     activities(1)                                                  180,193                         106,961
                                                                    -------                         -------

    Investing activities

    Purchases of property and equipment                            (43,179)                       (42,334)

    Business combinations, net of cash
     acquired                                                      (23,966)                       (16,399)

    Purchases of investments                                      (198,144)                              -

    Net cash used in investing activities                         (265,289)                       (58,733)
                                                                   --------                         -------

    Financing activities

    Proceeds from issuance of common stock                           24,305                          21,203

    Repurchases of common stock                                    (59,986)                              -
                                                                    -------                             ---

    Net cash provided by (used in) financing
     activities(1)                                                 (35,681)                         21,203
                                                                    -------                          ------

    Effect of exchange rate changes on cash
     and cash equivalents                                             3,005                           (738)
                                                                      -----                            ----

    Net increase (decrease) in cash and cash
     equivalents                                                  (117,772)                         68,693

    Cash and cash equivalents

    Beginning of period                                             908,717                         795,900
                                                                    -------

    End of period                                                               $790,945                       $864,593
                                                                                ========                       ========


    (1) Tableau adopted Accounting
     Standards Update ("ASU") 2016-09 in
     the first quarter of 2017. Prior to
     the adoption of ASU 2016-09, excess
     tax benefits related to stock awards
     were required to be presented as an
     inflow from financing activities and
     an outflow from operating activities
     on the statement of cash flows.
     Under the new standard, all tax-
     related cash flows resulting from
     share-based payments are reported
     as operating activities. Tableau
     adopted the new requirement
     retrospectively, and for the nine
     months ended September 30, 2016,
     this resulted in an increase to net
     cash provided by operating
     activities of $0.8 million and a
     corresponding decrease to net cash
     provided by (used in) financing
     activities of $0.8 million.


                                                                                            Tableau Software, Inc.

                                                                            Reconciliation of GAAP to Non-GAAP Financial Measures

                                                                                    (In thousands, except per share data)

                                                                                                 (Unaudited)


                                                           Three Months Ended                                             Nine Months Ended
                                                            September 30,                                            September 30,

                                                    2017                     2016                      2017                       2016
                                                    ----                     ----                      ----                       ----

    Reconciliation of gross profit to non-GAAP
     gross profit:
    ------------------------------------------

    Gross profit                                           $184,988                                            $182,027                             $544,454       $504,903

    Excluding: Stock-based
     compensation expense
     attributable to cost of
     revenues                                      2,885                                2,614                                   8,252                   8,060

    Excluding: Amortization of
     acquired intangible assets                      264                                   95                                     454                     227


    Non-GAAP gross profit                                  $188,137                                            $184,736                             $553,160       $513,190
                                                           ========                                            ========                             ========       ========


    Reconciliation of gross margin to non-GAAP
     gross margin:
    ------------------------------------------

    Gross margin                                   86.1%                               88.3%                                  86.7%                  87.6%

    Excluding: Stock-based
     compensation expense
     attributable to cost of
     revenues                                       1.3%                                1.3%                                   1.3%                   1.4%

    Excluding: Amortization of
     acquired intangible assets                     0.1%                                0.0%                                   0.1%                   0.0%
                                                     ---                                  ---                                     ---                     ---

    Non-GAAP gross margin                          87.5%                               89.7%                                  88.1%                  89.1%
                                                    ====                                 ====                                    ====                    ====


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

    Operating loss                                        $(49,045)                                          $(29,356)                          $(147,446)    $(122,615)

    Excluding: Stock-based
     compensation expense                         54,314                               47,383                                 155,623                 137,954

    Excluding: Amortization of
     acquired intangible assets                      264                                   95                                     454                     227


    Non-GAAP operating income                                $5,533                                             $18,122                               $8,631        $15,566
                                                             ======                                             =======                               ======        =======


    Reconciliation of operating margin to non-
     GAAP operating margin:
    ------------------------------------------

    Operating margin                             (22.8)%                             (14.2)%                                (23.5)%                (21.3)%

    Excluding: Stock-based
     compensation expense                          25.3%                               23.0%                                  24.8%                  23.9%

    Excluding: Amortization of
     acquired intangible assets                     0.1%                                0.0%                                   0.1%                   0.0%
                                                     ---                                  ---                                     ---                     ---

    Non-GAAP operating margin                       2.6%                                8.8%                                   1.4%                   2.7%
                                                     ===                                  ===                                     ===                     ===


                                                         Three Months Ended                                        Nine Months Ended
                                                            September 30,                                            September 30,

                                                    2017                     2016                      2017                       2016
                                                    ----                     ----                      ----                       ----

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

    Net loss                                              $(46,553)                                          $(30,261)                          $(143,722)    $(123,361)

      Excluding: Stock-based
       compensation expense                       54,314                               47,383                                 155,623                 137,954

    Excluding: Amortization of
     acquired intangible assets                      264                                   95                                     454                     227

    Income tax adjustments                       (1,578)                             (3,962)                                   (62)                (1,477)
                                                  ------                               ------                                     ---                  ------

    Non-GAAP net income                                      $6,447                                             $13,255                              $12,293        $13,343
                                                             ======                                             =======                              =======        =======


    Weighted average shares
     used to compute non-GAAP
     basic net income per share                   79,440                               75,647                                  78,463                  74,743

    Effect of potentially
     dilutive shares: stock
     awards                                        4,398                                4,917                                   3,981                   4,933


    Weighted average shares
     used to compute non-GAAP
     diluted net income per
     share                                        83,838                               80,564                                  82,444                  79,676
                                                  ======                               ======                                  ======                  ======


    Non-GAAP net income per share:

    Basic                                                     $0.08                                               $0.18                                $0.16          $0.18

    Diluted                                                   $0.08                                               $0.16                                $0.15          $0.17


                                                                                                          Nine Months Ended
                                                                                                            September 30,

                                                                                                   2017                       2016
                                                                                                   ----                       ----

    Reconciliation of net cash provided by
     operating activities to free cash flow:
    ----------------------------------------

    Net cash provided by operating activities(1)                                                            $180,193                             $106,961

    Less: Purchases of property and equipment                                                    43,179                                 42,334

    Free cash flow (1)                                                                                      $137,014                              $64,627
                                                                                                            ========                              =======

    Net cash used in investing activities                                                                 $(265,289)                           $(58,733)

    Net cash provided by (used in) financing
     activities(1)                                                                                         $(35,681)                             $21,203


    (1) Tableau adopted ASU 2016-09 in
     the first quarter of 2017. Prior to
     the adoption of ASU 2016-09, excess
     tax benefits related to stock awards
     were required to be presented as an
     inflow from financing activities and
     an outflow from operating activities
     on the statement of cash flows.
     Under the new standard, all tax-
     related cash flows resulting from
     share-based payments are reported
     as operating activities. Tableau
     adopted the new requirement
     retrospectively, and for the nine
     months ended September 30, 2016,
     this resulted in an increase to net
     cash provided by operating
     activities of $0.8 million and a
     corresponding decrease to net cash
     provided by (used in) financing
     activities of $0.8 million.


                                                                                                                                                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`16        Q2`16       Q3`16        Q4`16      FY 2016       Q1`17        Q2`17        Q3`17
                                           -----       -----        -----        -----      -------       -----        -----       -----

                                                                                             (Dollars in thousands)


                                                                                                   (Unaudited)


    Customer metrics

    Customer accounts
     (1)                                  42,000+                  46,000+                  50,000+                   54,000+                  54,000+                  57,000+                   61,000+                  65,000+

    Customer accounts
     added in period
     (1)                                   3,500+                   3,900+                   3,600+                    4,000+                  15,000+                   3,300+                    4,000+                   4,100+

    Deals greater
     than $100,000
     (2)                                      268                       332                       360                        589                     1,549                       294                        372                       337

    Customer accounts
     that purchased
     greater than $1
     million during
     the quarter
     (1,2)                                     10                        16                        10                         25                                     10                        15                        13


    Geographic revenue metrics

    United States and
     Canada                                           $123,648                               $141,478                               $147,820                               $173,548                               $586,494                               $141,496                               $146,102                               $150,059

    International                                      $48,050                                $57,057                                $58,237                                $77,105                               $240,449                                $58,410                                $66,778                                $64,858

    United States and
     Canada as % of
     total revenue                             72%                      71%                      72%                       69%                      71%                      71%                       69%                      70%

    International as
     % of total
     revenue                                   28%                      29%                      28%                       31%                      29%                      29%                       31%                      30%


    Additional revenue metrics

    Total annual
     recurring
     revenue (3)                                      $295,513                               $328,316                               $361,382                               $411,192                               $411,192                               $439,001                               $483,578                               $526,211

    Subscription
     annual recurring
     revenue (4)                                       $32,285                                $37,690                                $45,735                                $58,355                                $58,355                                $71,950                               $103,538                               $139,210

    Ratable revenue
     as % of total
     revenue (5)                               42%                      40%                      44%                       40%                      41%                      54%                       56%                      63%

    Ratable license
     revenue as % of
     total license
     revenue (6)                                9%                       9%                      11%                       10%                      10%                      19%                       23%                      34%

    Services revenues
     as a % of
     maintenance and
     services revenue
     (7)                                      15%                      16%                      14%                       15%                      15%                      12%                       13%                      12%


    Bookings metrics

    License bookings
     year-over-year
     growth (decline)
     % (2)                                     24%                      28%                      11%                       25%                      22%                       6%                        0%                     (3)%

    Normalized
     license bookings
     year-over-year
     growth (2,8)                              27%                      29%                      14%                       30%                      25%                      20%                       20%                      21%

    Ratable bookings
     as % of total
     bookings (2)                              45%                      47%                      48%                       51%                      48%                      55%                       61%                      65%

    Ratable license
     bookings as % of
     total license
     bookings (2)                              12%                      16%                      16%                       20%                      17%                      26%                       37%                      45%


    Other metrics

    Worldwide
     employees                               3,168                     3,248                     3,280                      3,223                     3,223                     3,193                      3,305                     3,418


    (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) Ratable revenues were amortized during
     the respective periods. For example, sales
     of Tableau Online, enterprise license
     agreements, term licenses and OEM license
     arrangements, as well as maintenance and
     support, are recognized ratably.


    (6) Ratable license revenues were amortized
     during the respective periods. For example,
     sales of Tableau Online, enterprise license
     agreements, term licenses and OEM license
     arrangements are recognized ratably.


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


    (8) Tableau calculates normalized license
     bookings by applying the equivalent ratio
     of perpetual prices to subscription
     bookings, assuming demand and discount are
     held constant, to adjust term license and
     renewals, subscription enterprise license
     agreements and Tableau Online subscriptions
     and renewals.

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SOURCE Tableau Software