Tableau Software (DATA, Financial) is investing continuously in its growth efforts that are expanding its customer base. Over 2500 new customer accounts were added to the database making the total to over 23,000 globally. Further, Tableau completed 200 sales orders of worth over $100,000 each, an increase of 68% on year-over-year basis and illustrating significant adoption of its products with the currently active customers.
New customers in focus
Tableau’s new customers include LA Doctors, the Panama Canal Authority, West Springs Hospital, Good Sweet, Kimbrell's Furniture, Bioclinica, Simmons Bedding and Yokohama Corporation of America. For the third quarter, Tableau enhanced its relationships with active customers.
Tableau is witnessing significant traction for its continued investments in product innovation with the latest release of Tableau 8.2 enabling customers to execute Tableau locally on the Mac and for leveraging data to develop interactive stories.
Tableau is continuously focused on solidifying its international position through the ongoing investments abroad.
Tableau Public is a free-cloud based service which is increasingly attracting a group of key users who are keen on sharing public data online. Globally, Tableau Public has currently recorded over 300 million views illustrating the increasing awareness and significant community engagement.
Investing for growth
Tableau is continuously investing into key efforts to enhance the engagement with its partners and enthusiastic customers. Tableau organized its seventh annual conference in Seattle, Washington during the quarter that attracted over 1,000 customers with the attendance growing 72% to over 5,500 customers and the attended partners increased from nearly 3,200 in 2013.
The partners who attended the conference include Teradata, IBM, Splunk, Google and Amazon Web Services.
Tableau is extremely focused on product innovation and expanding its platform for driving superior value to its expanding customer base. Some new innovations include Tableau 9.0. Tableau witnessed innovations in mobile, cloud, enterprise capabilities, data preparation, performance and visual analytics.
At present, Tableau serves more than 70% of Fortune 500 clients. All the clients in this group leverage its desktop product line and below half of them currently leverage its server products. Considering the penetration perspective, below 5% of these clients have bought more than $1 million in collective spend in the previous 12 months ending June 30, 2014.
Tableau is believed to be in a solid position for investing into the future growth opportunities with an extremely healthy balance sheet, illustrating cash and cash equivalents of $644.5 million at the end of the third quarter, up from $627.3 million in the previous year.
Considering the fourth quarter, Tableau estimates total revenue to be in $118 million to $122 million range, representing 50% expansion compared to the fourth quarter of 2013. The management plans to diversify its total investment for the year the company. On a non-GAAP basis, Tableau expects the fourth quarter operating income to be in $8 million to $12 million range and the fourth quarter basic share count is estimated to be in 70 million to 71 million shares range.
Conclusion
Going forward, Tableau’s full year 2015 revenue is estimated to growth nearly 40% on year-over-year basis. Hence, investors should consider investing in this stock for long-term gains.
