Tableau Reports First Quarter 2019 Financial Results
SEATTLE, May 2, 2019 /PRNewswire/ -- Tableau Software, Inc. (NYSE: DATA) today reported results for its first quarter ended March 31, 2019.
Financial Summary
-- Total revenue was $282.5 million, up 15% year over year.
-- Total annual recurring revenue was $902.0 million as of March 31, 2019,
up 41% year over year.
-- Subscription annual recurring revenue was $510.1 million as of March 31,
2019, up 115% year over year.
-- Diluted GAAP net loss per share was $1.04.
-- Diluted non-GAAP net income per share was $0.02.
"We saw strong subscription momentum during Q1 with our mix at 84 percent and our annual recurring revenue exceeding $900 million, up 41 percent year-over-year," said Adam Selipsky, President and Chief Executive Officer of Tableau. "We are seeing more and more customers cultivate a data-driven culture in their organizations due to the ease of use and flexibility of Tableau's end-to-end analytics platform."
Financial Results
Total revenue for the first quarter of 2019 was $282.5 million, up 15% from $246.2 million for the first quarter of 2018. Total annual recurring revenue increased 41% to $902.0 million as of March 31, 2019, up from $641.9 million as of March 31, 2018. Subscription annual recurring revenue increased 115% to $510.1 million as of March 31, 2019, up from $237.5 million as of March 31, 2018.
GAAP operating loss for the first quarter of 2019 was $93.2 million, compared to a GAAP operating loss of $50.4 million for the first quarter of 2018. GAAP net loss for the first quarter of 2019 was $88.9 million, or $1.04 per diluted common share, compared to a GAAP net loss of $46.5 million, or $0.57 per diluted common share, for the first quarter of 2018.
Non-GAAP operating loss was $2.7 million for the first quarter of 2019, compared to non-GAAP operating income of $5.7 million for the first quarter of 2018. Non-GAAP net income was $2.0 million for the first quarter of 2019, or $0.02 per diluted common share, compared to a non-GAAP net income of $5.8 million, or $0.07 per diluted common share, for the first quarter of 2018.
During the first quarter of 2019, Tableau repurchased 34,986 shares of its outstanding Class A common stock for a total of $4.3 million. As of March 31, 2019, the Company was authorized to repurchase a remaining $275.7 million of its Class A common stock under the previously authorized repurchase program.
Recent Business Highlights
-- Released Tableau 2019.1, which includes Ask Data, which leverages
natural language processing to enable customers to ask questions of
their data in plain language.
-- Expanded Tableau's data preparation capabilities with the release of
Tableau Prep Conductor, which enables organizations to schedule and
manage self-service data preparation at scale. Tableau Prep Conductor is
part of a new offering called the Tableau Data Management Add-On.
-- Recognized as a Leader in the Gartner Magic Quadrant for Analytics and
Business Intelligence Platforms for the seventh consecutive year.
-- Tableau donated 209,384 shares of the Company's Class A common stock to
Tableau Foundation, a donor-advised charitable fund.
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 2019 financial results, as well as its guidance for the second quarter of 2019 and outlook for full year 2019. 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 5036617. 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 5036617.
About Tableau
Tableau (NYSE: DATA) helps people see and understand data. Tableau's self-service analytics platform empowers people of any skill level to work with data. From individuals and non-profits to government agencies and the Fortune 500, tens of thousands of customers around the world use Tableau to get rapid insights and make impactful, data-driven decisions. 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 statements regarding customer demand and customers' continued scaling of Tableau within their organizations; the Company's progress and continued transition to subscription and term licensing and adoption rate by customers of role-based subscription offerings; new product offerings, features and capabilities to broaden and expand its analytics platform; continued product innovation and adoption, including strong subscription adoption 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; momentum with the Company's partners; customers' ability to easily scale the Company's products and broaden the deployment of analytics across their workforces with tailored solutions for employees; 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 an analytics platform; the Company's expectations, quarterly and annual outlook, and guidance 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 to customers' on-premise, public, private or hybrid cloud environments; Tableau's ability to provide high-quality customer service and support offerings to expand its business and drive customer renewals; 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 expenses (sales and marketing, research and development, and general and administrative), 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 sales and marketing expense is calculated by excluding stock-based compensation expense attributable to sales and marketing from sales and marketing expense. Non-GAAP research and development expense is calculated by excluding stock-based compensation expense attributable to research and development from research and development expense. Non-GAAP general and administrative expense is calculated by excluding stock-based compensation expense attributable to general and administrative and expense associated with the donation of the Company's Class A common stock in the first quarter of 2019 from general and administrative expense. Non-GAAP operating income (loss) is calculated by excluding stock-based compensation expense, expense related to amortization of acquired intangible assets and expense associated with the donation of the Company's Class A common stock in the first quarter of 2019 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, non-GAAP income tax adjustments and expense associated with the donation of the Company's Class A common stock in the first quarter of 2019 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, expense related to amortization of acquired intangible assets and expense associated with the donation of the Company's Class A common stock in the first quarter of 2019. 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 months ended March 31, 2019 and 2018 was 20%. 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, expense related to amortization of acquired intangible assets and expense associated with the donation of the Company's Class A common stock in the first quarter of 2019. 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 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. The non-cash expense related to the donation of the Company's Class A common stock is not considered by Tableau's management team when evaluating the Company's operating performance and is non-recurring in nature as Tableau does not expect to make additional donations of its common stock in the foreseeable future; therefore, Tableau believes non-GAAP measures that adjust for the expense associated with the donation of the Company's Class A common stock in the first quarter of 2019 allow for meaningful comparisons between its operating results from period to period. 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 information provided by other companies in Tableau's industry, as other companies in the industry may calculate non-GAAP financial measures differently. In addition, there are limitations in using non-GAAP financial measures because 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 March 31,
2019 2018
---
Revenues
License $
117,552 $
108,793
Maintenance and services 164,908 137,414
Total revenues 282,460 246,207
Cost of revenues
License 5,627 3,954
Maintenance and services 33,802 28,471
Total cost of revenues (1) 39,429 32,425
Gross profit 243,031 213,782
Operating expenses
Sales and marketing (1) 162,342 138,406
Research and development (1) 112,144 93,505
General and administrative (1) 61,725 32,250
Total operating expenses 336,211 264,161
Operating loss (93,180) (50,379)
Other income, net 5,186 1,462
Loss before income tax expense
(benefit) (87,994) (48,917)
Income tax expense (benefit) 888 (2,445)
Net loss $
(88,882) $
(46,472)
Net loss per share:
Basic $
(1.04) $
(0.57)
Diluted $
(1.04) $
(0.57)
Weighted average shares used to compute net loss
per share:
Basic 85,434 81,039
Diluted 85,434 81,039
(1) Includes stock-based compensation
expense as follows:
Three Months Ended March 31,
2019 2018
---
Cost of revenues $
3,852 $
2,987
Sales and marketing 22,993 20,015
Research and development 31,641 25,157
General and administrative 7,133 7,604
Tableau Software, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
March 31, 2019 December 31, 2018
---
Assets
Current assets
Cash and cash equivalents $
501,056 $
653,022
Short-term investments 554,042 369,355
Accounts receivable, net 177,188 236,063
Prepaid expenses and other
current assets 172,498 155,012
Income taxes receivable 2,422 2,268
Total current assets 1,407,206 1,415,720
Long-term investments 4,668 26,278
Property and equipment, net 102,477 94,537
Operating lease right-of-use
assets 217,796
Goodwill 45,430 42,530
Deferred income taxes 5,633 4,733
Other long-term assets 56,446 50,927
Total assets $
1,839,656 $
1,634,725
Liabilities and stockholders' equity
Current liabilities
Accounts payable $
12,201 $
6,652
Accrued compensation and
employee-related benefits 89,380 105,155
Other accrued liabilities 72,457 55,896
Income taxes payable 1,312 2,982
Deferred revenue 362,740 377,892
Total current liabilities 538,090 548,577
Deferred revenue 19,445 16,306
Operating lease liabilities 251,904
Other long-term liabilities 11,232 56,257
Total liabilities 820,671 621,140
Stockholders' equity
Common stock 9 8
Additional paid-in capital 1,432,437 1,340,628
Accumulated other
comprehensive loss (8,986) (11,458)
Accumulated deficit (404,475) (315,593)
Total stockholders' equity 1,018,985 1,013,585
Total liabilities and
stockholders' equity $
1,839,656 $
1,634,725
Tableau Software, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended March 31,
2019 2018
---
Operating activities
Net loss $
(88,882) $
(46,472)
Adjustments to reconcile net loss to net cash
provided by operating activities
Depreciation and amortization
expense 14,863 9,647
Amortization (accretion) on
investments, net (723) 118
Stock-based compensation expense 65,619 55,763
Donation of Class A common stock 24,230
Deferred income taxes (1,597) (4,226)
Changes in operating assets and liabilities
Accounts receivable, net 58,184 73,012
Prepaid expenses and other assets (22,864) (22,891)
Income taxes receivable (137) (194)
Deferred revenue (10,176) (7,507)
Accounts payable and accrued
liabilities (12,717) (4,279)
Income taxes payable (1,651) (356)
Net cash provided by operating
activities 24,149 52,615
Investing activities
Purchases of property and
equipment (12,042) (5,251)
Business combination (4,500)
Purchases of investments (254,019) (102,450)
Maturities of investments 92,371 77,385
Sales of investments - 99
Net cash used in investing
activities (178,190) (30,217)
Financing activities
Proceeds from issuance of common
stock 6,287 2,492
Repurchases of common stock (4,326) (30,007)
Net cash provided by (used in)
financing activities 1,961 (27,515)
Effect of exchange rate changes
on cash and cash equivalents 114 1,233
Net decrease in cash and cash
equivalents (151,966) (3,884)
Cash and cash equivalents
Beginning of period 653,022 627,878
End of period $
501,056 $
623,994
Non-GAAP Reconciliation Tables
---
Tableau Software, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share data)
(Unaudited)
Three Months Ended March 31,
2019 2018
---
Reconciliation of gross profit to non-GAAP
gross profit:
---
Gross profit $
243,031 $
213,782
Excluding: Stock-based
compensation expense 3,852 2,987
Excluding: Amortization of
acquired intangible assets 602 349
Non-GAAP gross profit $
247,485 $
217,118
Reconciliation of gross margin to non-GAAP
gross margin:
---
Gross margin 86.0
% 86.8
%
Excluding: Stock-based
compensation expense 1.4
% 1.2
%
Excluding: Amortization of
acquired intangible assets 0.2
% 0.1
%
---
Non-GAAP gross margin 87.6
% 88.2
%
===
Reconciliation of operating expenses to non-
GAAP operating expenses:
---
Sales and marketing $
162,342 $
138,406
Excluding: Stock-based
compensation expense (22,993) (20,015)
Non-GAAP sales and
marketing $
139,349 $
118,391
Research and development $
112,144 $
93,505
Excluding: Stock-based
compensation expense (31,641) (25,157)
Non-GAAP research and
development $
80,503 $
68,348
General and administrative $
61,725 $
32,250
Excluding: Stock-based
compensation expense (7,133) (7,604)
Excluding: Donation of Class
A common stock (24,230)
Non-GAAP general and
administrative $
30,362 $
24,646
Reconciliation of operating loss to non-GAAP
operating income (loss):
---
Operating loss $
(93,180) $
(50,379)
Excluding: Stock-based
compensation expense 65,619 55,763
Excluding: Donation of Class
A common stock 24,230
Excluding: Amortization of
acquired intangible assets 602 349
Non-GAAP operating income
(loss) $
(2,729) $
5,733
Reconciliation of operating margin to non-GAAP
operating margin:
---
Operating margin (33.0) (20.5)
% %
Excluding: Stock-based 23.2
% 22.6
compensation expense %
Excluding: Donation of Class
A common stock 8.6
% %
Excluding: Amortization of
acquired intangible assets 0.2
% 0.1
%
---
Non-GAAP operating margin (1.0)
% 2.3
%
===
Three Months Ended March 31,
2019 2018
---
Reconciliation of net loss to non-GAAP net
income:
---
Net loss $
(88,882) $
(46,472)
Excluding: Stock-based
compensation expense 65,619 55,763
Excluding: Donation of Class
A common stock 24,230
Excluding: Amortization of
acquired intangible assets 602 349
Income tax adjustments 397 (3,884)
Non-GAAP net income $
1,966 $
5,756
Weighted average shares used
to compute non-GAAP basic
net income per share 85,434 81,039
Effect of potentially
dilutive shares: stock
awards 4,217 4,020
Weighted average shares used
to compute non-GAAP
diluted net income per
share 89,651 85,059
Non-GAAP net income per share:
Basic $
0.02 $
0.07
Diluted $
0.02 $
0.07
Three Months Ended March 31,
2019 2018
---
Reconciliation of net cash provided by
operating activities to free cash flow:
---
Net cash provided by
operating activities $
24,149 $
52,615
Less: Purchases of property
and equipment (12,042) (5,251)
Free cash flow $
12,107 $
47,364
Net cash used in investing
activities $
(178,190) $
(30,217)
Net cash provided by (used
in) financing activities $
1,961 $
(27,515)
Effect of exchange rate
changes on cash and cash
equivalents $
114 $
1,233
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`18 Q2`18 Q3`18 Q4`18 FY 2018 Q1`19
(Dollars in thousands)
(Unaudited)
Annual recurring
revenue metrics
Total annual
recurring
revenue (1) $
641,946 $
697,700 $
762,641 $
840,859 $
840,859 $
901,977
Subscription
annual recurring
revenue (2) $
237,533 $
291,292 $
362,360 $
443,214 $
443,214 $
510,135
Geographic
revenue metrics
United States and
Canada $
167,799 $
196,992 $
207,166 $
225,917 $
797,874 $
196,902
International $
78,408 $
85,297 $
83,414 $
110,359 $
357,478 $
85,558
United States and
Canada as % of
total revenue 68
% 70
% 71
% 67
% 69
% 70
%
International as
% of total
revenue 32
% 30
% 29
% 33
% 31
% 30
%
Additional
metrics
Customer accounts
that purchased
greater than $1
million during
the quarter (3) 13 22 23 36 16
Contract assets
(4) $
60,666 $
72,559 $
89,843 $
105,593 $
105,593 $
121,599
Remaining
performance
obligations (5) $
114,523 $
138,498 $
191,942 $
240,077 $
240,077 $
253,962
Services revenues
as a % of
maintenance and
services revenue
(6) 9
% 10
% 10
% 11
% 10
% 9
%
Headcount metrics
Worldwide
employees 3,663 3,896 4,101 4,181 4,181 4,286
(1) 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.
(2) 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 license agreements and renewals and
Tableau Online subscriptions and renewals.
(3) 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. This operating metric is 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.
(4) Contract assets represent amounts related to
performance obligations that are satisfied
but not yet billed. These amounts are
recorded as contract assets rather than
receivables when receipt of the
consideration is conditional on something
other than the passage of time and are
included in prepaid expenses and other
current assets in the consolidated balance
sheets.
(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. These
amounts do not include deferred revenue,
which is already included within the
consolidated balance sheets.
(6) Services revenues are recognized upon
delivery of professional services and
training.
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SOURCE Tableau Software
