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Updated: 29-Jul-15 07:58 ET
Tableau Software (DATA) reports Q2 results
Tableau Software (DATA) reported Q2 results this morning that exceeded expectations.
First of all, if you're not familiar with it, DATA provides cloud-based "big data" analytics software for enterprises. The company's two main products are: Tableau Desktop, which allows users to analyze data using simple drag-and-drop functionality; and Tableau Server, which provides enterprise-class data management, scalability, and security. Management says that what sets DATA's analytics software apart from the competition is Tableau's ease-of-use. The company releases regular updates, with version 9 being released just a few months ago in April.
Ever since its May 2013 IPO, investor concerns regarding increasing competition have cropped up (DATA's direct competitors include Tibco, Qlik Technologies, and Microstrategy, as well as software behemoths such as Microsoft, IBM, Oracle, and SAP.). Yet despite the intensifying competition, DATA has seen no appreciable slowdown in its growth rate, with the company reporting consistent 70+% quarterly sales growth. While management is still investing heavily in its sales & marketing capabilities and building out its international footprint, DATA has also been consistently profitable since going public.
Looking at this morning's Q2 results, sales grew +65% to $149.9 million while EPS rose +75% to $0.07. Both top- and bottom-line numbers exceeded expectations. License revenue grew +60% to $96.7 million, and the company added more than 3,000 new customer accounts. However, margins ticked down on a year-over-year basis, as Non-GAAP gross margin declined to 89.9% in 2Q15 from 91.0% in 2Q14, and non-GAAP operating margin fell to 7.0% from 7.7%.
The company is expected to issue guidance during its 8:00 AM ET conference call.
In the press release, management stated that: "Tableau executed another strong quarter as we continue to acquire new customers, expand relationships with existing customers, grow internationally and rapidly innovate. We are seeing a strong demand for Tableau's products resulting in record customer growth and product adoption. During the quarter we added more than 3,000 new customer accounts, bringing the total to more than 32,000 worldwide."
First of all, if you're not familiar with it, DATA provides cloud-based "big data" analytics software for enterprises. The company's two main products are: Tableau Desktop, which allows users to analyze data using simple drag-and-drop functionality; and Tableau Server, which provides enterprise-class data management, scalability, and security. Management says that what sets DATA's analytics software apart from the competition is Tableau's ease-of-use. The company releases regular updates, with version 9 being released just a few months ago in April.
Ever since its May 2013 IPO, investor concerns regarding increasing competition have cropped up (DATA's direct competitors include Tibco, Qlik Technologies, and Microstrategy, as well as software behemoths such as Microsoft, IBM, Oracle, and SAP.). Yet despite the intensifying competition, DATA has seen no appreciable slowdown in its growth rate, with the company reporting consistent 70+% quarterly sales growth. While management is still investing heavily in its sales & marketing capabilities and building out its international footprint, DATA has also been consistently profitable since going public.
Looking at this morning's Q2 results, sales grew +65% to $149.9 million while EPS rose +75% to $0.07. Both top- and bottom-line numbers exceeded expectations. License revenue grew +60% to $96.7 million, and the company added more than 3,000 new customer accounts. However, margins ticked down on a year-over-year basis, as Non-GAAP gross margin declined to 89.9% in 2Q15 from 91.0% in 2Q14, and non-GAAP operating margin fell to 7.0% from 7.7%.
The company is expected to issue guidance during its 8:00 AM ET conference call.
In the press release, management stated that: "Tableau executed another strong quarter as we continue to acquire new customers, expand relationships with existing customers, grow internationally and rapidly innovate. We are seeing a strong demand for Tableau's products resulting in record customer growth and product adoption. During the quarter we added more than 3,000 new customer accounts, bringing the total to more than 32,000 worldwide."
