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8-K - 8-K - Tableau Software Incd617472d8k.htm

Exhibit 99.1

 

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Tableau Announces Third Quarter 2013 Financial Results

 

SEATTLE, Wash. – October 28, 2013 - Tableau Software (NYSE: DATA), a global leader in rapid-fire, easy-to-use business analytics software, today reported results for its third quarter ended September 30, 2013.

 

    Total revenues were $61.1 million, up 90% year-over-year

 

    License revenues were $42.0 million, up 90% year-over-year

 

    Diluted GAAP earnings per share were $0.03; diluted Non-GAAP earnings per share were $0.08

“Tableau delivered an exceptional quarter across all fronts,” said Christian Chabot, CEO and President. “We’re excited about the momentum we’re seeing in the market and look forward to extending our market leadership.”

Financial Highlights for the Third Quarter Ended September 30, 2013

Total revenues for the third quarter of 2013 were $61.1 million, representing a 90% increase from the third quarter of 2012. License revenues were $42.0 million, representing a 90% increase from the third quarter of 2012. Maintenance and services revenues were $19.1 million, representing a 91% increase from the third quarter of 2012.

GAAP operating income for the third quarter of 2013 was $2.5 million, compared to GAAP operating income of $1.0 million for the third quarter of 2012. GAAP net income for the third quarter of 2013 was $2.4 million, or $0.03 per diluted common share, compared to a GAAP net income of $0.4 million, or $0.00 per diluted common share, for the third quarter of 2012.

Non-GAAP operating income, which excludes stock-based compensation, was $6.3 million for the third quarter of 2013, compared to non-GAAP operating income of $2.2 million for the third quarter of 2012. Non-GAAP net income, which excludes stock-based compensation, was $5.6 million for the third quarter of 2013, or $0.08 per diluted common share, compared to non-GAAP net income of $1.4 million, or $0.03 per diluted common share, for the third quarter of 2012.

Recent Business Highlights

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

 

    Held its 2013 Annual Customer Conference in Washington, DC with over 3,000 customer and partner attendees.

 

    Named Washington’s Best Workplace in the extra-large company category (>500 employees) by the Puget Sound Business Journal.

 

    Closed 119 sales orders of greater than $100,000 and added over 1,500 new customer accounts in the third quarter of 2013.

 

    Launched Tableau Public Author Profiles and extended Tableau Public user dataset capacity to 1 million rows.

 

    Announced strategic collaborations with Informatica, Lavastorm Analytics, Pragmatics, SnapLogic, Syncsort, and 1010data.

 

    Expanded Global OEM Partner Program with new partners including DataSelf, eNate, icix, Lightbeam Health Solutions, Prodagio, and TimeTrade.

 

    Partnered with Google to visualize big data at the Gartner IT Symposium.


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Lockup Release

Goldman, Sachs & Co. and Morgan Stanley & Co. LLC, the lead joint book-running managers and representatives of the underwriters for Tableau’s initial public offering in May 2013, have consented to the release of lock-up restrictions with respect to approximately 4.9 million shares of Tableau’s Class B common stock and options to purchase approximately 14.1 million (7.4 million are vested) shares of Tableau’s Class A and Class B common stock held by existing stockholders and optionholders as of September 30, 2013, including employees, officers and directors of Tableau, who executed 170-day lock-up agreements with the underwriters. The release will take effect on October 31, 2013, and the shares may be sold on or after that date.

Conference Call and Webcast Information

In conjunction with this announcement, Tableau will host a conference call at 2:00 p.m. PT (5:00 p.m. ET) today to discuss Tableau’s third quarter 2013 financial results and the outlook for the fourth quarter of 2013 and full year 2013. A live audio webcast and replay of the call, together with detailed financial information, will be available in the Investor Relations section of Tableau’s website at http://investors.tableausoftware.com. The live call can be accessed by dialing (855) 592-5013 (U.S.) or (678) 224-7834 (outside the U.S.) and referencing passcode: 81097710. A replay of the call can also be accessed by dialing (855) 859-2056 (U.S.) or (404) 537-3406 (outside the U.S.), and referencing passcode: 81097710.

About Tableau

Tableau Software (NYSE: DATA) helps people see and understand data. Tableau helps anyone quickly analyze, visualize and share information. More than 15,000 customer accounts get rapid results with Tableau in the office and on-the-go. Tens of thousands of people use Tableau Public to share data in their blogs and websites. See how Tableau can help you by downloading the free trial at www.tableausoftware.com/trial.

Tableau and Tableau Software are trademarks of Tableau Software, Inc. All other company and product names may be trademarks of the respective companies with which they are associated.

Forward-Looking Statements

This press release contains, and statements made during the above referenced conference call will contain, “forward-looking” statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including regarding the company’s growth momentum and the company’s expectations regarding future revenues, expenses and net income or loss. These statements are not guarantees of future performance, but are based on management’s expectations as of the date of this press release and assumptions that are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements. Important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements include the following: risks associated with anticipated growth in Tableau’s addressable market; competitive factors, including changes in the competitive environment, pricing changes, sales cycle time and increased competition; Tableau’s ability to build and expand its direct sales efforts and reseller distribution channels; general economic and industry conditions, including expenditure trends for business intelligence and productivity tools; new product introductions and Tableau’s ability to develop and deliver innovative products; our ability to provide high-quality service and support offerings; risks associated with international operations; and macroeconomic conditions. These and other important risk factors are described more fully in documents filed with the Securities and Exchange Commission, including Tableau’s final prospectus from its initial public offering, subsequently-filed 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.


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Non-GAAP Financial Measures

Tableau believes that the use of non-GAAP operating income (loss), non-GAAP net income (loss), non-GAAP earnings (loss) per 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 operating income (loss) is calculated by deducting stock-based compensation expense from operating income (loss). Non-GAAP net income (loss) is calculated by deducting stock-based compensation expense from net income (loss). Non-GAAP earnings (loss) per diluted common share is calculated by dividing non-GAAP net income (loss) by weighted average diluted shares outstanding. Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company’s non-cash expenses, Tableau believes that providing non-GAAP financial measures that exclude stock-based compensation expense allow for more meaningful comparisons between its operating results from period to period. Free cash flow is calculated as net cash provided by operating activities less net cash used in investing activities for purchases of property and equipment. Tableau considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by its business that can be used for strategic opportunities, including investing in its business, making strategic acquisitions and strengthening its balance sheet. All of these non-GAAP financial measures are important tools for financial and operational decision making and for evaluating Tableau’s own operating results over different periods of time.

Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in Tableau’s industry, as other companies in the industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on our reported financial results. Further, stock-based compensation expense has been and will continue to be for the foreseeable future a significant recurring expense in Tableau’s business and an important part of the compensation provided to its employees. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Investors should review the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures included below, and not rely on any single financial measure to evaluate Tableau’s business.

Investor Contact:

Carolyn Bass or Jacob Moelter

Market Street Partners

415-445-3232 or 415-445-3235

tableau@marketstreetpartners.com

Press Contact:

Doreen Jarman

Tableau PR Manager

206.633.3400 x5648

djarman@tableausoftware.com


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Tableau Software, Inc.

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

 

     Three Months Ended September 30,     Nine Months Ended September 30,  
     2013     2012     2013     2012  

Revenues

        

License

   $ 41,951      $ 22,112      $ 101,895      $ 59,807   

Maintenance and services

     19,128        10,014        49,086        26,120   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     61,079        32,126        150,981        85,927   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cost of revenues

        

License

     237        21        523        170   

Maintenance and services

     4,341        2,788        11,951        6,809   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total costs of revenues (1)

     4,578        2,809        12,474        6,979   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     56,501        29,317        138,507        78,948   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses

        

Sales and marketing (1)

     32,189        15,565        83,426        39,125   

Research and development (1)

     15,438        8,488        42,514        22,706   

General and administrative (1)

     6,345        4,278        18,064        10,533   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     53,972        28,331        144,004        72,364   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

     2,529        986        (5,497     6,584   

Other income (expense), net

     (177     (22     (350     (49
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income tax expense (benefit)

     2,352        964        (5,847     6,535   

Income tax expense (benefit)

     (89     597        (1,678     4,052   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ 2,441      $ 367      $ (4,169   $ 2,483   
  

 

 

   

 

 

   

 

 

   

 

 

 

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

        

Basic

   $ 0.04      $ 0.00      $ (0.09   $ 0.03   

Diluted

   $ 0.03      $ 0.00      $ (0.09   $ 0.03   

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

        

Basic

     59,143        33,851        47,093        33,676   

Diluted

     71,348        39,960        47,093        39,597   

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

       

   
     Three Months Ended September 30,     Nine Months Ended September 30,  
     2013     2012     2013     2012  
     (in thousands)  

Cost of revenues

   $ 113      $ 28      $ 291      $ 66   

Sales and marketing

     1,442        350        3,506        933   

Research and development

     1,473        531        3,785        1,445   

General and administrative

     702        288        1,951        809   
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ 3,730      $ 1,197      $ 9,533      $ 3,253   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

 


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Tableau Software, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

 

     September 30,
2013
    December 31,
2012
 

Assets

    

Current assets

    

Cash and cash equivalents

   $ 226,337      $ 39,302   

Accounts receivable, net

     44,173        30,752   

Prepaid expenses and other current assets

     5,206        2,789   

Income taxes receivable

     4,521        1,072   

Deferred income taxes

     2,250        2,246   
  

 

 

   

 

 

 

Total current assets

     282,487        76,161   

Property and equipment, net

     18,184        10,346   

Deferred income taxes

     190        66   

Deposits and other non-current assets

     836        419   
  

 

 

   

 

 

 

Total assets

   $ 301,697      $ 86,992   
  

 

 

   

 

 

 

Liabilities, convertible preferred stock and stockholders’ equity

    

Current liabilities

    

Accounts payable

     4,253        2,176   

Accrued liabilities

     6,970        4,471   

Accrued compensation and employee related benefits

     17,228        13,170   

Income taxes payable

     348        129   

Deferred revenue

     50,968        31,984   
  

 

 

   

 

 

 

Total current liabilities

     79,767        51,930   

Deferred income taxes

     1,353        1,353   

Deferred revenue

     3,162        2,423   

Other long-term liabilities

     2,648        1,312   
  

 

 

   

 

 

 

Total liabilities

     86,930        57,018   
  

 

 

   

 

 

 

Convertible preferred stock

     —          20,031   

Stockholders’ equity

    

Common stock

     6        4   

Additional paid-in-capital

     220,730        11,698   

Accumulated other comprehensive loss

     (42     (1

Accumulated deficit

     (5,927     (1,758
  

 

 

   

 

 

 

Total stockholders’ equity

     214,767        9,943   
  

 

 

   

 

 

 

Total liabilities, convertible preferred stock and stockholders’ equity

   $ 301,697      $ 86,992   
  

 

 

   

 

 

 


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Tableau Software, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

     Nine Months Ended September 30,  
     2013     2012  

Operating activities

    

Net income (loss)

   $ (4,169   $ 2,483   

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

    

Depreciation expense

     4,580        2,657   

Provision for doubtful accounts

     230        71   

Stock-based compensation expense

     9,533        3,253   

Excess tax benefit from stock-based compensation

     (823     1   

Deferred taxes

     701        —     

Changes in operating assets and liabilities

    

Accounts receivable

     (13,479     (7,116

Prepaid expenses, deposits and other assets

     (2,812     (1,674

Income taxes receivable

     (3,453     —     

Deferred revenue

     19,527        11,822   

Accounts payable and accrued liabilities

     9,028        2,712   

Income taxes payable

     216        1,106   
  

 

 

   

 

 

 

Net cash provided by operating activities

     19,079        15,315   
  

 

 

   

 

 

 

Investing activities

    

Purchase of property and equipment

     (11,515     (5,461
  

 

 

   

 

 

 

Net cash used in investing activities

     (11,515     (5,461
  

 

 

   

 

 

 

Financing activities

    

Proceeds from initial public offering

     176,974        —     

Proceeds from issuance of common stock upon exercise of stock options

     1,672        284   

Excess tax benefit from stock-based compensation

     823        (1
  

 

 

   

 

 

 

Net cash provided by financing activities

     179,469        283   
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     2        —     

Net increase in cash and cash equivalents

     187,035        10,137   

Cash and cash equivalents

    

Beginning of period

     39,302        30,223   
  

 

 

   

 

 

 

End of period

   $ 226,337      $ 40,360   
  

 

 

   

 

 

 


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Tableau Software, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands, except per share data)

(Unaudited)

 

     Three Months Ended September 30,      Nine Months Ended September 30,  
     2013      2012      2013     2012  

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

          

Operating income (loss)

   $ 2,529       $ 986       $ (5,497   $ 6,584   

Excluding: Stock-based compensation expense

     3,730         1,197         9,533        3,253   
  

 

 

    

 

 

    

 

 

   

 

 

 

Non-GAAP operating income

   $ 6,259       $ 2,183       $ 4,036      $ 9,837   
  

 

 

    

 

 

    

 

 

   

 

 

 

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

          

Net income (loss)

   $ 2,441       $ 367       $ (4,169   $ 2,483   

Excluding: Stock-based compensation expense, net of tax

     3,113         1,056         8,231        2,850   
  

 

 

    

 

 

    

 

 

   

 

 

 

Non-GAAP net income

   $ 5,554       $ 1,423       $ 4,062      $ 5,333   
  

 

 

    

 

 

    

 

 

   

 

 

 

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

          

GAAP net income (loss) per share - basic

   $ 0.04       $ 0.00       $ (0.09   $ 0.03   

Excluding: Stock-based compensation expense, net of tax

     0.05         0.03         0.17        0.08   
  

 

 

    

 

 

    

 

 

   

 

 

 

Non-GAAP net income per share - basic

   $ 0.09       $ 0.03       $ 0.08      $ 0.11   
  

 

 

    

 

 

    

 

 

   

 

 

 

GAAP net income (loss) per share - diluted

   $ 0.03       $ 0.00       $ (0.09   $ 0.03   

Excluding: Stock-based compensation expense, net of tax

     0.05         0.03         0.17        0.07   
  

 

 

    

 

 

    

 

 

   

 

 

 

Non-GAAP net income per share - diluted

   $ 0.08       $ 0.03       $ 0.08      $ 0.10   
  

 

 

    

 

 

    

 

 

   

 

 

 

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

          

Basic

     59,143         33,851         47,093        33,676   

Diluted

     71,348         39,960         47,093        39,597