Tableau Reports First Quarter 2018 Financial Results
Tableau Reports First Quarter 2018 Financial Results
SEATTLE, May 2, 2018 /PRNewswire/ -- Tableau Software, Inc. (NYSE: DATA) today reported results for its first quarter ended March 31, 2018.
"Customers embraced our subscription licensing offerings in Q1, as demonstrated by our 59 percent ratable license bookings mix," said Adam Selipsky, President and Chief Executive Officer of Tableau. "We're just getting started on our journey to make Tableau even easier to buy and scale for our customers. Our new subscription offerings announced last week will broaden our platform and enable our customers to deploy analytics to entire workforces with solutions tailored for every employee."
Adoption of the New Revenue Recognition Standard - ASC 606
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 quarter ended March 31, 2018. This includes the presentation of financial results during 2018 under ASC 605 for comparison to the prior year.
Financial Summary - ASC 606 (standard adopted effective January 1, 2018)
-- ASC 606 total revenue was $246.2 million.
-- Total annual recurring revenue was $641.9 million, up 46% year over
year.
-- Subscription annual recurring revenue was $237.5 million, up 230% year
over year.
-- ASC 606 diluted GAAP net loss per share was $0.57.
-- ASC 606 diluted non-GAAP net income per share was $0.07.
Financial Summary - ASC 605
-- ASC 605 total revenue was $224.0 million, compared to a guided range of
$212.0 million to $222.0 million as provided during the Company's
earnings call on February 1, 2018.
-- ASC 605 diluted GAAP net loss per share was $0.98.
-- ASC 605 diluted non-GAAP net loss per share was $0.19, compared to a
guided range of $0.17 to $0.24 non-GAAP net loss per share as provided
during the Company's earnings call on February 1, 2018.
Financial Results - ASC 606 (standard adopted effective January 1, 2018)
ASC 606 total revenue for the first quarter of 2018 was $246.2 million. Total annual recurring revenue increased 46% to $641.9 million, up from $439.0 million at the end of the first quarter of 2017. Subscription annual recurring revenue increased 230% to $237.5 million, up from $72.0 million at the end of the first quarter of 2017.
ASC 606 GAAP operating loss for the first quarter of 2018 was $50.4 million. ASC 606 GAAP net loss for the first quarter of 2018 was $46.5 million, or $0.57 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 $5.7 million for the first 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 $5.8 million for the first quarter of 2018, or $0.07 per diluted common share.
Financial Results - ASC 605
ASC 605 total revenue for the first quarter of 2018 was $224.0 million, up 12% from $199.9 million in the first quarter of 2017. ASC 605 GAAP operating loss for the first quarter of 2018 was $77.2 million, compared to a GAAP operating loss of $53.5 million for the first quarter of 2017. ASC 605 GAAP net loss for the first quarter of 2018 was $79.0 million, or $0.98 per diluted common share, compared to a GAAP net loss of $54.6 million, or $0.71 per diluted common share, for the first quarter of 2017.
ASC 605 non-GAAP operating loss was $21.0 million for the first quarter of 2018, compared to a non-GAAP operating loss of $4.2 million for the first quarter of 2017. ASC 605 non-GAAP net loss was $15.7 million for the first quarter of 2018, or $0.19 per diluted common share, compared to a non-GAAP net loss of $2.1 million, or $0.03 per diluted common share, for the first quarter of 2017.
Recent Business Highlights
-- Introduced new subscription offerings to help organizations scale
analytics. Tableau Creator, Explorer and Viewer subscriptions each
provide tailored combinations of new and existing analytical
capabilities that are designed for different user needs from
sophisticated analysts to casual users.
-- Expanded Tableau's platform to include Tableau Prep, a new data
preparation product that integrates directly into the Tableau analytical
workflow and can be shared with Tableau Server or Tableau Online.
Tableau Prep is included with the new Tableau Creator subscription
offering.
-- Released Tableau 2018.1, which includes new web authoring capabilities.
The new web authoring capabilities are available with the Tableau
Creator subscription offering.
-- The United Nations and Tableau announced an agreement establishing
Tableau as a global visual analytics standard across the United Nations
system.
-- Appointed Mark Nelson as Executive Vice President of Product Development
effective May 21, 2018.
Stock Repurchase Program
During the first quarter ended March 31, 2018, Tableau repurchased 366,160 shares of its outstanding Class A common stock for a total of $30.0 million. As of March 31, 2018, the Company was authorized to repurchase a remaining $70.0 million of its Class A common stock under the previously authorized repurchase program.
On April 26, 2018, the Board of Directors of the Company authorized the Company to repurchase up to an additional $300 million of its Class A common stock under its previously announced stock repurchase program. The program allows the Company to repurchase its shares opportunistically from time to time when it believes that doing so would enhance long-term stockholder 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. Including the additional $300 million, the Company is authorized to repurchase up to a remaining $370.0 million of the Company's Class A common stock under the existing stock repurchase program. As of March 31, 2018, the Company had repurchased and retired 2,077,105 shares of its Class A common stock, under the existing stock repurchase program, for a total purchase price of $130.0 million.
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 first quarter 2018 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 2389159. 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 2389159.
About Tableau
Tableau (NYSE: DATA) helps people see and understand data. Tableau helps anyone quickly analyze, visualize and share information. More than 74,000 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 continued transition to subscription and term licensing and its expected increase in demand for its products as a result of its subscription offerings; new product launch and availability of new product capabilities; 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 willingness and ability of the Company's partners to sell its subscription offerings; customers' ability to easily scale the Company's products and broaden the deployment of analytics across their entire workforces with tailored solutions for every employee; 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: 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; 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 Annual Report on Form 10-K, Quarterly Report on Form 10-Q 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 rates applied to the three months ended March 31, 2018 and 2017 were 20% and 30%, respectively. Tableau applied these same non-GAAP tax rates to its financial results presented in accordance with each of ASC 606 and ASC 605. The long-term non-GAAP tax rate applied to the three months ended March 31, 2018 and 2017 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 the long-term non-GAAP tax rate applied to the three months ended March 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 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. Because of the significant impact of the adoption of ASC 606 on the Company's results of operations, non-GAAP financial measures for the first quarter of 2018 (computed in accordance with ASC 606) are not as comparable to non-GAAP financial measures for the first quarter of 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 March 31,
2018 2017
---- ----
Revenues
License $108,793 $97,244
Maintenance and services 137,414 102,662
Total revenues 246,207 199,906
------- -------
Cost of revenues
License 3,954 3,267
Maintenance and services 28,471 23,388
Total cost of revenues (1) 32,425 26,655
------ ------
Gross profit 213,782 173,251
------- -------
Operating expenses
Sales and marketing (1) 138,406 118,018
Research and development (1) 93,505 84,302
General and administrative
(1) 32,250 24,445
Total operating expenses 264,161 226,765
------- -------
Operating loss (50,379) (53,514)
Other income, net 1,462 1,225
----- -----
Loss before income tax
expense (benefit) (48,917) (52,289)
Income tax expense (benefit) (2,445) 2,358
Net loss $(46,472) $(54,647)
======== ========
Net loss per share:
Basic $(0.57) $(0.71)
Diluted $(0.57) $(0.71)
Weighted average shares used to compute net
loss per share:
Basic 81,039 77,416
Diluted 81,039 77,416
(1) Includes stock-based
compensation expense as follows:
Three Months Ended March 31,
2018 2017
---- ----
Cost of revenues $2,987 $2,577
Sales and marketing 20,015 18,092
Research and development 25,157 23,515
General and administrative 7,604 5,011
Tableau Software, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
March 31, 2018 December 31, 2017
-------------- -----------------
Assets
Current assets
Cash and cash equivalents $623,994 $627,878
Short-term investments 241,652 226,787
Accounts receivable, net 132,611 203,366
Prepaid expenses and other
current assets 98,461 30,514
Income taxes receivable 883 673
Total current assets 1,097,601 1,089,218
Long-term investments 157,497 148,364
Property and equipment, net 101,121 106,753
Goodwill 35,083 35,083
Deferred income taxes 4,215 5,287
Other long-term assets 35,139 14,090
Total assets $1,430,656 $1,398,795
========== ==========
Liabilities and stockholders' equity
Current liabilities
Accounts payable $2,817 $4,448
Accrued compensation and
employee-related benefits 81,268 96,390
Other accrued liabilities 41,935 37,722
Income taxes payable 4,467 4,743
Deferred revenue 314,698 419,426
------- -------
Total current liabilities 445,185 562,729
Deferred revenue 21,687 28,058
Other long-term liabilities 53,911 54,385
------ ------
Total liabilities 520,783 645,172
------- -------
Stockholders' equity
Common stock 8 8
Additional paid-in capital 1,205,459 1,168,563
Accumulated other
comprehensive loss (10,571) (11,991)
Accumulated deficit (285,023) (402,957)
-------- --------
Total stockholders' equity 909,873 753,623
Total liabilities and
stockholders' equity $1,430,656 $1,398,795
========== ==========
Tableau Software, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended March 31,
2018 2017
---- ----
Operating activities
Net loss $(46,472) $(54,647)
Adjustments to reconcile net loss to net cash
provided by operating activities
Depreciation and amortization
expense 9,647 13,435
Amortization of premiums on
investments, net 118 -
Stock-based compensation expense 55,763 49,195
Deferred income taxes (4,226) 128
Changes in operating assets and liabilities
Accounts receivable, net 73,012 76,878
Prepaid expenses and other
assets (22,891) 11,270
Income taxes receivable (194) 6
Deferred revenue (7,507) 4,008
Accounts payable and accrued
liabilities (4,279) (16,620)
Income taxes payable (356) 842
Net cash provided by operating
activities 52,615 84,495
------ ------
Investing activities
Purchases of property and
equipment (5,251) (23,238)
Purchases of investments (102,450) -
Maturities of investments 77,385 -
Sales of investments 99 -
--- ---
Net cash used in investing
activities (30,217) (23,238)
------- -------
Financing activities
Proceeds from issuance of common
stock 2,492 4,309
Repurchases of common stock (30,007) (20,008)
------- -------
Net cash used in financing
activities (27,515) (15,699)
------- -------
Effect of exchange rate changes
on cash and cash equivalents 1,233 374
----- ---
Net increase (decrease) in cash
and cash equivalents (3,884) 45,932
Cash and cash equivalents
Beginning of period 627,878 908,717
-------
End of period $623,994 $954,649
======== ========
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 March 31,
2018 2017
As Reported Impacts from Without As Reported
(ASC 606) Adoption Adoption (ASC 605)
(ASC 605)
---
Revenues
License $108,793 $(3,127) $105,666 $97,244
Maintenance and services 137,414 (19,036) 118,378 102,662
------- ------- -------
Total revenues 246,207 (22,163) 224,044 199,906
------- ------- ------- -------
Cost of revenues
License 3,954 (52) 3,902 3,267
Maintenance and services 28,471 61 28,532 23,388
Total cost of revenues 32,425 9 32,434 26,655
------ --- ------ ------
Gross profit 213,782 (22,172) 191,610 173,251
------- ------- ------- -------
Operating expenses
Sales and marketing 138,406 4,607 143,013 118,018
Research and development 93,505 - 93,505 84,302
General and administrative 32,250 - 32,250 24,445
Total operating expenses 264,161 4,607 268,768 226,765
------- ----- ------- -------
Operating loss (50,379) (26,779) (77,158) (53,514)
Other income, net 1,462 (38) 1,424 1,225
----- --- ----- -----
Loss before income tax
expense (benefit) (48,917) (26,817) (75,734) (52,289)
Income tax expense (benefit) (2,445) 5,737 3,292 2,358
Net loss $(46,472) $(32,554) $(79,026) $(54,647)
======== ======== ======== ========
Net loss per share:
Basic $(0.57) $(0.98) $(0.71)
Diluted $(0.57) $(0.98) $(0.71)
Weighted average shares used to compute net
loss per share:
Basic 81,039 81,039 77,416
Diluted 81,039 81,039 77,416
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)
March 31, December 31,
2017
2018
As Reported Impacts from Without As Reported
(ASC 606) Adoption Adoption (ASC 605)
(ASC 605)
---
Assets
Current assets
Cash and cash equivalents $623,994 $ - $623,994 $627,878
Short-term investments 241,652 - 241,652 226,787
Accounts receivable, net 132,611 - 132,611 203,366
Prepaid expenses and other
current assets 98,461 (68,249) 30,212 30,514
Income taxes receivable 883 - 883 673
Total current assets 1,097,601 (68,249) 1,029,352 1,089,218
Long-term investments 157,497 - 157,497 148,364
Property and equipment, net 101,121 - 101,121 106,753
Goodwill 35,083 - 35,083 35,083
Deferred income taxes 4,215 1,589 5,804 5,287
Other long-term assets 35,139 (21,264) 13,875 14,090
Total assets $1,430,656 $(87,924) $1,342,732 $1,398,795
========== ======== ========== ==========
Liabilities and stockholders' equity
Current liabilities
Accounts payable 2,817 - 2,817 4,448
Accrued compensation and
employee-related benefits 81,268 - 81,268 96,390
Other accrued liabilities 41,935 - 41,935 37,722
Income taxes payable 4,467 1,826 6,293 4,743
Deferred revenue 314,698 104,407 419,105 419,426
------- ------- ------- -------
Total current liabilities 445,185 106,233 551,418 562,729
Deferred revenue 21,687 5,521 27,208 28,058
Other long-term liabilities 53,911 (746) 53,165 54,385
------ ---- ------ ------
Total liabilities 520,783 111,008 631,791 645,172
------- ------- ------- -------
Stockholders' equity
Common stock 8 - 8 8
Additional paid-in capital 1,205,459 - 1,205,459 1,168,563
Accumulated other
comprehensive loss (10,571) (1,972) (12,543) (11,991)
Accumulated deficit (285,023) (196,960) (481,983) (402,957)
Total stockholders' equity 909,873 (198,932) 710,941 753,623
Total liabilities and
stockholders' equity $1,430,656 $(87,924) $1,342,732 $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)
Three Months Ended March 31,
2018 2017
As Reported Impacts from Without As Reported
(ASC 606) Adoption Adoption (ASC 605)
(ASC 605)
---
Operating activities
Net loss $(46,472) $(32,554) $(79,026) $(54,647)
Adjustments to reconcile net loss to net cash
provided by operating activities
Depreciation and amortization
expense 9,647 - 9,647 13,435
Amortization of premiums on
investments, net 118 - 118 -
Stock-based compensation expense 55,763 - 55,763 49,195
Deferred income taxes (4,226) 3,869 (357) 128
Changes in operating assets and liabilities
Accounts receivable, net 73,012 - 73,012 76,878
Prepaid expenses and other
assets (22,891) 23,230 339 11,270
Income taxes receivable (194) - (194) 6
Deferred revenue (7,507) 3,521 (3,986) 4,008
Accounts payable and accrued
liabilities (4,279) - (4,279) (16,620)
Income taxes payable (356) 1,825 1,469 842
---- ----- ----- ---
Net cash provided by operating
activities 52,615 (109) 52,506 84,495
------ ---- ------ ------
Investing activities
Purchases of property and
equipment (5,251) - (5,251) (23,238)
Purchases of investments (102,450) - (102,450) -
Maturities of investments 77,385 - 77,385 -
Sales of investments 99 - 99 -
--- --- --- ---
Net cash used in investing
activities (30,217) - (30,217) (23,238)
------- --- ------- -------
Financing activities
Proceeds from issuance of common
stock 2,492 - 2,492 4,309
Repurchases of common stock (30,007) - (30,007) (20,008)
------- --- ------- -------
Net cash used in financing
activities (27,515) - (27,515) (15,699)
------- --- ------- -------
Effect of exchange rate changes
on cash and cash equivalents 1,233 109 1,342 374
Net increase (decrease) in cash
and cash equivalents (3,884) - (3,884) 45,932
Cash and cash equivalents
Beginning of period 627,878 - 627,878 908,717
End of period $623,994 $ - $623,994 $954,649
======== === === ======== ========
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 March 31,
2018 2017
As Reported Impacts from Without As Reported
(ASC 606) Adoption Adoption (ASC 605)
(ASC 605)
---
Reconciliation of gross profit to non-GAAP
gross profit:
------------------------------------------
Gross profit $213,782 $(22,172) $191,610 $173,251
Excluding: Stock-based
compensation expense
attributable to cost of
revenues 2,987 - 2,987 2,577
Excluding: Amortization of
acquired intangible assets 349 - 349 95
Non-GAAP gross profit $217,118 $(22,172) $194,946 $175,923
======== ======== ======== ========
Reconciliation of gross margin to non-GAAP
gross margin:
------------------------------------------
Gross margin 86.8% 85.5% 86.7%
Excluding: Stock-based
compensation expense
attributable to cost of
revenues 1.2% 1.3% 1.3%
Excluding: Amortization of
acquired intangible assets 0.1% 0.2% 0.0%
--- --- ---
Non-GAAP gross margin 88.2% 87.0% 88.0%
==== ==== ====
Reconciliation of operating loss to non-GAAP
operating income (loss):
--------------------------------------------
Operating loss $(50,379) $(26,779) $(77,158) $(53,514)
Excluding: Stock-based
compensation expense 55,763 - 55,763 49,195
Excluding: Amortization of
acquired intangible assets 349 - 349 95
--- --- --- ---
Non-GAAP operating income
(loss) $5,733 $(26,779) $(21,046) $(4,224)
====== ======== ======== =======
Reconciliation of operating margin to non-
GAAP operating margin:
------------------------------------------
Operating margin (20.5)% (34.4)% (26.8)%
Excluding: Stock-based
compensation expense 22.6% 24.9% 24.6%
Excluding: Amortization of
acquired intangible assets 0.1% 0.2% 0.0%
--- --- ---
Non-GAAP operating margin 2.3% (9.4)% (2.1)%
=== ===== =====
Three Months Ended March 31,
2018 2017
As Reported Impacts from Without As Reported
(ASC 606) Adoption Adoption (ASC 605)
(ASC 605)
---
Reconciliation of net loss to non-GAAP net
income (loss):
------------------------------------------
Net loss $(46,472) $(32,554) $(79,026) $(54,647)
Excluding: Stock-based
compensation expense 55,763 - 55,763 49,195
Excluding: Amortization of
acquired intangible assets 349 - 349 95
Income tax adjustments (3,884) 11,100 7,216 3,258
------ ------ ----- -----
Non-GAAP net income (loss) $5,756 $(21,454) $(15,698) $(2,099)
====== ======== ======== =======
Weighted average shares used
to compute non-GAAP basic
net income (loss) per share 81,039 81,039 77,416
Effect of potentially
dilutive shares: stock
awards 4,020 - -
Weighted average shares used
to compute non-GAAP
diluted net income (loss)
per share 85,059 81,039 77,416
====== ====== ======
Non-GAAP net income (loss) per share:
Basic $0.07 $(0.19) $(0.03)
Diluted $0.07 $(0.19) $(0.03)
Three Months Ended March 31,
2018 2017
----
As Reported Impacts from Without As Reported
(ASC 606) Adoption Adoption (ASC 605)
(ASC 605)
---
Reconciliation of net cash provided by
operating activities to free cash flow:
----------------------------------------
Net cash provided by
operating activities $52,615 $(109) $52,506 $84,495
Less: Purchases of property
and equipment 5,251 - 5,251 23,238
Free cash flow $47,364 $(109) $47,255 $61,257
======= ===== ======= =======
Net cash used in investing
activities $(30,217) $ - $(30,217) $(23,238)
Net cash used in financing
activities $(27,515) $ - $(27,515) $(15,699)
Effect of exchange rate
changes on cash and cash
equivalents $1,233 $109 $1,342 $374
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
----- ----- ----- ----- ------- -----
(Dollars in thousands)
(Unaudited)
Customer metrics
Customer accounts
(1) 57,000+ 61,000+ 65,000+ 70,000+ 70,000+ 74,000+
Customer accounts
added in period
(1) 3,300+ 4,000+ 4,100+ 4,700+ 16,100+ 3,900+
Deals greater
than $100,000
(2) 294 372 337 590 1,593 301
Customer accounts
that purchased
greater than $1
million during
the 10 15 13 27 13
quarter (1,2)
Annual recurring
revenue metrics
Total annual
recurring
revenue (3) $439,001 $483,578 $526,211 $596,244 $596,244 $641,946
Subscription
annual recurring
revenue (4) $71,950 $103,538 $139,210 $195,488 $195,488 $237,533
Geographic
revenue metrics
-ASC 606
United States and
Canada - - - - - $167,799
International - - - - - $78,408
United States and
Canada as % of
total revenue - - - - - 68%
International as
% of total
revenue - - - - - 32%
Geographic
revenue metrics
-ASC 605
United States and
Canada $141,496 $146,102 $150,059 $168,116 $605,773 $154,443
International $58,410 $66,778 $64,858 $81,240 $271,286 $69,601
United States and
Canada as % of
total revenue 71% 69% 70% 67% 69% 69%
International as
% of total
revenue 29% 31% 30% 33% 31% 31%
Additional
revenue metrics
-ASC 606
Remaining
performance
obligations (5) - - - - $99,580 $114,523
Additional
revenue metrics
-ASC 605
Ratable revenue
as % of total
revenue (6) 54% 56% 63% 60% 59% 72%
Ratable license
revenue as % of
total license
revenue (7) 19% 23% 34% 34% 28% 54%
Services revenues
as a % of
maintenance and
services revenue
(8) 12% 13% 12% 13% 13% 11%
Bookings metrics
-ASC 605
Ratable bookings
as % of total
bookings (2) 55% 61% 65% 70% 64% 72%
Ratable license
bookings as % of
total license
bookings (2) 26% 37% 45% 51% 41% 59%
Other metrics
Worldwide
employees 3,193 3,305 3,418 3,489 3,489 3,663
(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) 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.
(6) 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.
(7) 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.
(8) Services revenues were recognized upon
delivery of professional services and
training.
CONTACT: Investor Contact: ir@tableau.com, Press Contact: pr@tableau.com
View original content with multimedia:http://www.prnewswire.com/news-releases/tableau-reports-first-quarter-2018-financial-results-300641425.html
SOURCE Tableau Software
