Tableau Announces Record Revenue for Third Quarter 2014

Tableau Software (NYSE: DATA) today reported results for its third quarter ended September 30, 2014.

•Revenue was $104.5 million, up 71% year over year.
•License revenue was $69.8 million, up 66% year over year.
•International revenue was up 115% year over year.
•Added more than 2,500 new customer accounts.
•Closed 200 sales orders greater than $100,000, up 68% year over year.

"Tableau delivered excellent financial performance in the third quarter. Total revenue for the third quarter exceeded $100 million for the first time, demonstrating continued momentum in the business," said Christian Chabot, Chief Executive Officer of Tableau Software.

"We continue to invest in product innovation in support of our mission. At our annual Tableau Conference, we unveiled innovations we are working on, including some that are slated for Tableau 9.0. We plan to further develop our cloud and mobile offerings, extend our enterprise capabilities, expand our analytics functionality, and expand our support for data sources and platforms," added Chabot.

Financial Highlights
Total revenue increased 71% to $104.5 million, from $61.1 million in the third quarter 2013. License revenue was up 66% to $69.8 million, from $42.0 million in the third quarter of 2013. International revenue grew to $24.1 million, up 115% year over year.

GAAP operating loss for the third quarter of 2014 was $3.8 million, compared to a GAAP operating income of $2.5 million for the third quarter of 2013. GAAP net loss for the third quarter of 2014 was $4.6 million, or $0.07 per diluted common share, compared to GAAP net income of $2.4 million, or $0.03 per diluted common share for the third quarter of 2013.

Non-GAAP operating income, which excludes stock-based compensation expense, was $8.7 million for the third quarter of 2014, compared to a non-GAAP operating income of $6.3 million for the third quarter of 2013. Non-GAAP net income, which excludes stock-based compensation expense, net of tax, was $3.9 million for the third quarter of 2014, or $0.06 per diluted common share, compared to non-GAAP net income of $5.6 million, or $0.08 per diluted common share for the third quarter of 2013.

Business Highlights
Tableau held its seventh annual Tableau Customer Conference September 8-12 in Seattle, WA. The conference sold out, with more than 5,500 customers and partners in attendance. Attendees represented a broad range of industries including education, finance, software, manufacturing, electronics, healthcare, non-profit, government, biotechnology, and more, demonstrating Tableau's ability to address the needs of customers in diverse industries. More than 60 customers spoke at the conference including EMC, Capital One, Juniper Networks, Netflix, and Facebook, among others. In addition, 55 partners including Splunk, Deloitte, Teradata, IBM, Amazon Web Services, and Google, among others, participated in the expo showcase, demonstrating the breadth of Tableau's partner ecosystem.

In recent months Tableau also:

•Announced Tableau Drive, a methodology for scaling out self-service analytics based on best practices from successful enterprise deployments. The methodology delivers an iterative, agile method that is faster and more effective than traditional long-cycle deployments.

•Expanded support for Hadoop technologies with the launch of four new direct data connectors for IBM InfoSphere BigInsights, Amazon Elastic MapReduce, Spark SQL and MarkLogic Enterprise NoSQLDatabase.

•Earned top ratings in the 2014 BARC¹ Business Intelligence Survey. Tableau rated first in 10 categories, including data discovery and visualization, innovation, and ease-of-use. In addition, Tableau rated #1 among large BI vendors in customer recommendations.

•Announced seven new OEM partners to expand the reach of visual analytics to more customers worldwide.

•Expanded the company's footprint in EMEA with the official announcement of a new office in Frankfurt, Germany and appointment of Henrik Jorgensen as country manager.

¹ Business Application Research Center (BARC)

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 third quarter of 2014 financial results and the outlook for the 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: 20155765. 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: 20155765.

About Tableau
Tableau Software (NYSE: DATA) helps people see and understand data. Tableau helps anyone quickly analyze, visualize and share information. More than 23,000 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, product adoption, the Company's research and development efforts and future product releases, 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; Tableau's 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 Quarterly Report on Form 10-Q filed on August 8, 2014, 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) and non-GAAP net income (loss) per basic and 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 gross profit is calculated by excluding stock-based compensation expense attributable to cost of revenues from gross profit. Non-GAAP gross margin is the ratio calculated by dividing non-GAAP gross profit by revenues. Non-GAAP operating income (loss) is calculated by excluding stock-based compensation expense from operating income (loss). Non-GAAP operating margin is the ratio calculated by dividing non-GAAP operating income (loss) by revenues. Non-GAAP net income (loss) is calculated by excluding stock-based compensation expense, net of tax, 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 as presented in the calculation of GAAP net income (loss) per share. 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 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.

Full financial tables can be found at http://investors.tableausoftware.com/investor-news/investor-news-detail….