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8-K - FORM 8-K - Tableau Software Incd668744d8k.htm

Exhibit 99.1

 

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Tableau Announces Fourth Quarter and Full Year 2013 Financial Results

SEATTLE, Wash. – February 4, 2014 – Tableau Software (NYSE: DATA) today reported results for its fourth quarter and fiscal year ended December 31, 2013.

Fourth Quarter 2013 Financial Highlights

 

    Total revenues were $81.5 million, up 95% year-over-year

 

    License revenues were $58.0 million, up 93% year-over-year

 

    Diluted GAAP earnings per share were $0.16; diluted non-GAAP earnings per share were $0.20

Full Year 2013 Financial Highlights

 

    Total revenues were $232.4 million, up 82% year-over-year

 

    License revenues were $159.9 million, up 78% year-over-year

 

    Diluted GAAP earnings per share were $0.12; diluted non-GAAP earnings per share were $0.31

“We’re very pleased with our performance in the fourth quarter, as we sustained our rapid growth,” said Christian Chabot, CEO and President. “We continue to see an expansion of our market opportunity and look forward to helping more customers turn data into revealing business insights in the next year.”

Financial Highlights for the Fourth Quarter Ended December 31, 2013

Total revenues for the fourth quarter of 2013 were $81.5 million, representing a 95% increase from the fourth quarter of 2012. License revenues were $58.0 million, representing a 93% increase from the fourth quarter of 2012. Maintenance and services revenues were $23.4 million, representing a 100% increase from the fourth quarter of 2012.

GAAP operating income for the fourth quarter of 2013 was $9.2 million, compared to GAAP operating loss of $2.3 million for the fourth quarter of 2012. GAAP net income for the fourth quarter of 2013 was $11.2 million, or $0.16 per diluted common share, compared to a GAAP net loss of $1.1 million, or $0.03 per diluted common share, for the fourth quarter of 2012.

Non-GAAP operating income, which excludes stock-based compensation and, for 2012, the cash and stock-based compensation expense associated with our funding of the Tableau Foundation, was $14.1 million for the fourth quarter of 2013, compared to non-GAAP operating income of $1.2 million for the fourth quarter of 2012. Non-GAAP net income, which excludes stock-based compensation and, for 2012, the cash and stock-based compensation expense associated with our funding of the Tableau Foundation, each net of tax, was $14.0 million for the fourth quarter of 2013, or $0.20 per diluted common share, compared to non-GAAP net income of $1.5 million, or $0.04 per diluted common share, for the fourth quarter of 2012.

Financial Highlights for the Fiscal Year Ended December 31, 2013

Total revenues for 2013 were $232.4 million, representing an 82% increase from 2012. License revenues were $159.9 million, representing a 78% increase from 2012. Maintenance and services revenues were $72.5 million, representing a 92% increase over 2012.

GAAP operating income for 2013 was $3.7 million, compared to GAAP operating income of $4.3 million for 2012. GAAP net income for 2013 was $7.1 million, or $0.12 per diluted common share, compared to a GAAP net income of $1.4 million, or $0.00 per diluted common share, for 2012.


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Non-GAAP operating income, which excludes stock-based compensation and, for 2012, the cash and stock-based compensation expense associated with our funding of the Tableau Foundation, was $18.1 million for 2013, compared to non-GAAP operating income of $11.0 million in 2012. Non-GAAP net income, which excludes stock-based compensation and, for 2012, the cash and stock-based compensation expense associated with our funding of the Tableau Foundation, each net of tax, was $18.0 million for 2013, or $0.31 per diluted common share, compared to non-GAAP net income of $6.9 million, or $0.14 per diluted common share, for 2012.

Recent Business Highlights

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

 

    Launched Tableau 8.1, which delivers new features for the enterprise, improved analytics, and more interactivity on the web and mobile devices.

 

    Expanded its relationship with Amazon Web Services (AWS) with support for Tableau Server running on the AWS platform and a new data connector to Amazon Redshift.

 

    Ranked #1 in “business benefits” and “business achievements” in the Business Intelligence (BI) Survey 13, conducted by Business Application Research Center (BARC).

 

    Partnered with IOCHU Techno-Solutions Corporation (CTC) to distribute Tableau Software in Japan.

 

    Closed 179 sales orders of greater than $100,000 and added over 1,800 new customer accounts in the fourth quarter of 2013.

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 fourth quarter and fiscal year 2013 financial results and the outlook for the first quarter of 2014 and full year 2014. 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: 33161821. 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: 33161821.

About Tableau

Tableau Software (NYSE: DATA) helps people see and understand data. Tableau helps anyone quickly analyze, visualize and share information. More than 17,000 customer accounts get rapid results with Tableau in the office and on-the-go. And 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


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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.

Non-GAAP Financial Measures

Tableau believes that the use of non-GAAP operating income (loss), non-GAAP net income (loss) and non-GAAP earnings (loss) per diluted common share 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 and, for 2012, the cash and stock-based compensation expense associated with its funding of the Tableau Foundation from operating income (loss). Non-GAAP net income (loss) is calculated by deducting stock-based compensation expense and, for 2012, the cash and stock-based compensation expense associated with its funding of the Tableau Foundation 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. 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.

Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

 

     Three Months Ended December 31,     Year Ended December 31,  
     2013     2012     2013     2012  

Revenues

        

License

   $ 58,035      $ 30,076      $ 159,930      $ 89,883   

Maintenance and services

     23,424        11,730        72,510        37,850   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     81,459        41,806        232,440        127,733   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cost of revenues

        

License

     217        135        740        305   

Maintenance and services

     5,833        3,248        17,784        10,057   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total costs of revenues (1)

     6,050        3,383        18,524        10,362   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     75,409        38,423        213,916        117,371   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses

        

Sales and marketing (1)

     40,147        23,208        123,573        62,333   

Research and development (1)

     18,255        10,359        60,769        33,065   

General and administrative (1)

     7,841        7,182        25,905        17,715   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     66,243        40,749        210,247        113,113   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

     9,166        (2,326     3,669        4,258   

Other income (expense), net

     (454     (5     (804     (54
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) before provision (benefit) for income taxes

     8,712        (2,331     2,865        4,204   

Provision (benefit) for income taxes

     (2,533     (1,275     (4,211     2,777   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ 11,245      $ (1,056   $ 7,076      $ 1,427   
  

 

 

   

 

 

   

 

 

   

 

 

 

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

        

Basic

   $ 0.18      $ (0.03   $ 0.14      $ —     

Diluted

   $ 0.16      $ (0.03   $ 0.12      $ —     

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

        

Basic

     60,863        33,948        50,564        33,744   

Diluted

     70,250        33,948        59,092        39,562   

 

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

 

     Three Months Ended December 31,      Year Ended December 31,  
     2013      2012      2013      2012  
     (in thousands)  

Cost of revenues

   $ 182       $ 41       $ 473       $ 107   

Sales and marketing

     1,923         461         5,429         1,394   

Research and development

     2,047         670         5,832         2,115   

General and administrative

     772         371         2,723         1,180   
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 4,924       $ 1,543       $ 14,457       $ 4,796   
  

 

 

    

 

 

    

 

 

    

 

 

 


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Tableau Software, Inc.

Consolidated Balance Sheets

(In thousands)

(Unaudited)

 

     December 31,
2013
    December 31,
2012
 

Assets

    

Current assets

    

Cash and cash equivalents

   $ 252,674      $ 39,302   

Accounts receivable, net

     61,158        30,752   

Prepaid expenses and other current assets

     7,180        2,789   

Income taxes receivable

     2,033        1,072   

Deferred income taxes

     9,136        2,246   
  

 

 

   

 

 

 

Total current assets

     332,181        76,161   

Property and equipment, net

     21,338        10,346   

Deferred income taxes

     589        66   

Deposits and other assets

     819        419   
  

 

 

   

 

 

 

Total assets

   $ 354,927      $ 86,992   
  

 

 

   

 

 

 

Liabilities, convertible preferred stock and stockholders’ equity

    

Current liabilities

    

Accounts payable

     2,178        2,176   

Accrued liabilities

     8,456        4,471   

Accrued compensation and employee related benefits

     27,187        13,170   

Income taxes payable

     178        129   

Deferred revenue

     66,290        31,984   
  

 

 

   

 

 

 

Total current liabilities

     104,289        51,930   

Deferred income taxes

     —          1,353   

Deferred revenue

     3,264        2,423   

Other long-term liabilities

     2,714        1,312   
  

 

 

   

 

 

 

Total liabilities

     110,267        57,018   
  

 

 

   

 

 

 

Convertible preferred stock

     —          20,031   

Stockholders’ equity

    

Common stock

     7        4   

Additional paid-in-capital

     239,406        11,698   

Accumulated other comprehensive loss

     (71     (1

Retained earnings (accumulated deficit)

     5,318        (1,758
  

 

 

   

 

 

 

Total stockholders’ equity

     244,660        9,943   
  

 

 

   

 

 

 

Total liabilities, convertible preferred stock and stockholders’ equity

   $ 354,927      $ 86,992   
  

 

 

   

 

 

 


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Tableau Software, Inc.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

     Year Ended December 31,  
     2013     2012  

Operating activities

    

Net income

   $ 7,076      $ 1,427   

Adjustment to reconcile net income to net cash provided by operating activities

    

Depreciation expense

     6,850        3,847   

Allowance for doubtful accounts

     487        172   

Stock-based compensation expense

     14,457        4,796   

Excess tax benefit from stock-based compensation

     (5,725     (1,541

Deferred taxes

     (3,052     301   

Donation of common stock to Tableau Foundation

     —          1,851   

Changes in operating assets and liabilities

    

Accounts receivable

     (30,488     (17,567

Prepaid expenses, deposits and other assets

     (4,758     (1,585

Income taxes receivable

     (961     (1,072

Deferred revenue

     34,740        15,421   

Accounts payable and accrued liabilities

     19,037        8,240   

Income taxes payable

     62        (51
  

 

 

   

 

 

 

Net cash provided by operating activities

     37,725        14,239   
  

 

 

   

 

 

 

Investing activities

    

Purchase of property and equipment

     (17,607     (7,036
  

 

 

   

 

 

 

Net cash used in investing activities

     (17,607     (7,036
  

 

 

   

 

 

 

Financing activities

    

Proceeds from initial public offering

     176,974        606   

Proceeds from issuance of common stock upon exercise of stock options

     10,522        —     

Deferred initial public offering costs

     —          (271

Excess tax benefit from stock-based compensation

     5,725        1,541   
  

 

 

   

 

 

 

Net cash provided by financing activities

     193,221        1,876   
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     33        —     

Net increase in cash and cash equivalents

     213,372        9,079   

Cash and cash equivalents

    

Beginning of period

     39,302        30,223   
  

 

 

   

 

 

 

End of period

   $ 252,674      $ 39,302   
  

 

 

   

 

 

 


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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
December 31,
    Year Ended
December 31,
 
     2013      2012     2013      2012  

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

          

Operating income (loss)

   $ 9,166       $ (2,326   $ 3,669       $ 4,258   

Excluding: Stock-based compensation expense

     4,924         1,543        14,457         4,796   

   Funding of the Tableau Foundation

     —           1,951        —           1,951   
  

 

 

    

 

 

   

 

 

    

 

 

 

Non-GAAP operating income

   $ 14,090       $ 1,168      $ 18,126       $ 11,005   
  

 

 

    

 

 

   

 

 

    

 

 

 

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

          

Net income (loss)

   $ 11,245       $ (1,056   $ 7,076       $ 1,427   

Excluding: Stock-based compensation expense, net of tax

     2,736         1,357        10,967         4,207   

   Funding of the Tableau Foundation, net of tax

     —           1,220        —           1,220   
  

 

 

    

 

 

   

 

 

    

 

 

 

Non-GAAP net income

   $ 13,981       $ 1,521      $ 18,043       $ 6,854   
  

 

 

    

 

 

   

 

 

    

 

 

 

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

          

GAAP net income (loss) per share - basic

   $ 0.18       $ (0.03   $ 0.14       $ —     

Excluding: Stock-based compensation expense, net of tax

     0.04         0.04        0.22         0.12   

   Funding of the Tableau Foundation, net of tax

     —           0.04        —           0.04   
  

 

 

    

 

 

   

 

 

    

 

 

 

Non-GAAP net income per share - basic

   $ 0.23       $ 0.04      $ 0.36       $ 0.16   
  

 

 

    

 

 

   

 

 

    

 

 

 

GAAP net income (loss) per share - diluted

   $ 0.16       $ (0.03   $ 0.12       $ —     

Excluding: Stock-based compensation expense, net of tax

     0.04         0.04        0.19         0.11   

   Funding of the Tableau Foundation, net of tax

     —           0.04        —           0.03   
  

 

 

    

 

 

   

 

 

    

 

 

 

Non-GAAP net income per share - diluted

   $ 0.20       $ 0.04      $ 0.31       $ 0.14   
  

 

 

    

 

 

   

 

 

    

 

 

 

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

          

Basic

     60,863         33,948        50,564         33,744   

Diluted

     70,250         33,948        59,092         39,562