Tableau Software (DATA, Financial) provides data visualization solutions in a user friendly manner to its customers. Today, data warehousing and data mining have moved to the cloud, software companies are developing various applications to analyze and provide visual data representation software. Tableau Software has kept its growth momentum and provides solutions to 13,500 customers across 100 countries. The company reported results which were better than consensus estimates. Let us have a detailed look at its performance.
The Growth Continues
Tableau's growth momentum was mainly led by the 1,500 customers it has added to its portfolio. Revenue from maintenance and services also increased 84%, which amounted to a total of $16.4 million in the quarter. These numbers reflect the company’s increasing demand among the customer base.
Another revenue increase was seen in its software license segment to $33.5 million, which has exceeded the consensus estimate by $5.5 million. This is another major development which signifies the company’s acceptance by its clients
The Way Forward
Most of the companies have already enabled cloud-based software and Tableau has also joined the fleet with the SAAS application “Tableau Online.” With this launch, the company could lure more clients, which helped boost its numbers in the present quarter. Its SAAS application will add to its revenue from software licensing.
To increase its expertise in cloud computing, Tableau has joined hands with 1010data cloud-based data analytics solutions. 1010data is one of the leaders for cloud-based analytics for big data. The joint collaboration of the two companies will benefit its existing and new customers, who will get an enhanced experience on the cloud for complex analytical reporting.
Looking forward, management is positive about its prospects. It expects revenue for the quarter to be in the range of $49.5 million to $51.5 million, which represents a growth rate of 57% on a year-over-year basis.
Today, data warehousing and data mining are of prime importance for every organization. In such a scenario, companies like Tableau will play an important role and will be needed as vendors for data visualization software. But it has to face tough competition from its peers such as Qlik Technologies.
Competition from Qlik and Oracle
Qlik Technologies is another which makes data visualization software solutions for business intelligence and analytics platforms. It has launched its product with the brand name "QLIKVIEW," which provides high-end analytics along with an impressive dashboard. It plans to launch its new version "QLIKVIEW 11" which could act as the lead growth driver for the company.
Qlik has a customer base of around 29,000 clients and is constantly increasing it by hosting various summit programs at various places. In its second quarter, Qlik reported a revenue increase of 26% to $108 million. It has also acquired NcomVA, a Swedish software firm, which specializes in the domain of data visualization technology.
Qlik is also exploring the healthcare segment. It is a big market for data visualization software as easy decision making is possible in diagnostics procedures with efficient data analysis, and this should result in growth of the company.
Oracle is also a provider of data visualization reporting software and its solutions have been widely accepted by various clients.
Oracle Exaltics is a hardware-software hybrid, which is a perfect platform for various data visualization and business intelligence. It is gaining popularity among its clients, which use it for business intelligence solutions. Oracle business intelligence Discover is yet another tool by Oracle which falls in the data visualization and reporting software category.
Along with this Oracle is also focusing on the SAAS platform. From its recent results it can be seen that revenue from software license and support grew 7%. The company has been entered into various partnerships to capture growth in the cloud industry, such as with NetSuite and Microsoft, and this will boost its performance in the future.
Conclusion
Tableau’s stock has been ever increasing since it went public in May this year. The company has gained more than 30% in just three months. Looking at the rapid growth in its customer base and recent partnership with 1010data, Tableau seems to be a good investment option.
