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Tableau : Rapid Growth Keeps Investors Smiling

March 23, 2014 | About:
mitu77

mitu77

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As we see the deployment of big data on cloud environment, various software companies are focusing on making their application compatible with cloud. Software companies like Tableau Software (DATA) provides various solutions pertaining to big data and data visualization on user friendly platform. The company has witnessed an exponential growth in the past few years with its footprints in over 100 countries and more than 13,5000 customer spread across the globe. The success story of Tableau is based on the fact that it can be easily implemented and does not require high end technically skilled expensive manpower.

Tableau recently declared its Q4,2013 results, which were better than expected. Let's see how they were and where Tableau is headed. The fiscal 2013 has been up to the investor’s expectation and the results beating various estimates in each of its quarter reports. Total revenue of $232 million in 2013, it’s 83% increase over the fiscal 2012.

Brisk escalation

Tableau reported revenue of $81.5 million, up 95% from last year and beating various consensus estimates. The growth in revenue was mainly due to the rising demand and new customers. Revenue from licensing increased by 73% year over year, amounting to $58 million in the quarter and this signifies that customers are having more faith in Tableau's solutions and are opting to continue harvesting the various advantages of the software. So it is evident that the company is finding rapid growth and adoption of its solutions by clients.

Focused on Cloud

With various companies deploying their application software on cloud, Tableau is becoming a favorable vendor as SAAS application "Tableau Online." This was launched earlier and has helped Tableau to positively influence both top and bottom line by acquiring more clients. Moreover, as Tableau is a SAAS application, it will contribute to the recurring revenue from the company from software licensing for Tableau.

To further strengthen its hold for providing high quality applications with minimal downtime, it collaborated with 1010data to provide cloud-based data analytics solutions. 1010data is known as an industry leading provider of cloud-based analytics for big data. The synergistic alliance of Tableau and 1010data will benefit its existing and new customers with an enhanced experience on the cloud for complex analytical reporting.

Data warehousing market anticipated to grow at a CAGR of 11.6% from 2014-2018 and is becoming the need of the hour for every business house. Companies like Tableau will always benefit. But it is not the only player in this segment.

Competitors

Qlik Technologies (QLIK) is also into the similar segment of providing data visualization software solutions for business intelligence and analytics platforms. The company's product, "QLIKVIEW” with an impressive dashboard provides high-end analytics. It also has plans of enhancing various features in the new version "QLIKVIEW 11" for which it sees enormous potential in the future.

Qlik is also focused on exploring the healthcare segment, which is a big market for data visualization software for easy decision making in diagnostics procedures with efficient data analysis, and this should result in growth of the company.

Qlik’s application software providing data visualization is primarily focusing the health care segment. The data analytics and visualization market is anticipated to be at a CAGR of 37.9% through 2016. Qlik targets the market for its future growth as its main revenue generation segment in future.

In the past, the company also acquired "NcomVA" a Swedish company to expand its footprints in data visualization software. NcomVA, specializes in the domain of data visualization technology.

Oracle (ORCL) also provides data visualization software solutions that have been globally accepted and adopted by various clients. Oracle provides a hybrid solution of hardware-software named Exaltics. This is a platform which provides data visualization and business intelligence solutions as bundled package. Oracle Exaltics is attaining acceptance by various companies, which use it for business intelligence and visualization solutions. Oracle Discover, is an another product of Oracle that provides business intelligence and data visualization solutions.

The company is also focusing the cloud market and has been acquiring and joining hands with players in the similar segment. It joined hands with market leaders like Microsoft and NetSuite to further strengthen its market in cloud segment.

Conclusion

Tableau has been on a hot streak ever since it went public in May last year with solid gains of more than 30% in just three months. The growth in revenue and stock prices ever since it went public has always kept an investor satisfied. Looking at the rapid growth in its customer base and variance synergistic alliance (1010data), Tableau can perform well in the future as well and can be an investment that can make an investor smile.


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