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, Financial) provides various solutions pertaining to Big Data and data visualization on a 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 19,000 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. The company is also endorsed by Gartner as one of the faster growing business intelligence software companies for 2013.
Financial performance
The second quarter results of the company were better than expected. Let's see how they were and where Tableau is headed.
Tableau reported revenue of $90.7 million, up 82% from last year and beating various consensus estimates. The growth in revenue was mainly due to the rising demand and new customers and release of new Tableau 8.2. The company added 2,200 customers in the second quarter which also leveraged the growth. Revenue from licensing increased by 80% year over year, amounting to $60.4 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 globally as adoption of its solutions by clients. Internationally it witness a revenue growth by 100%, this further goes on to exemplify the increased footprints of the company globally and slowly but certainly getting a stronger grip of the market
We continued our momentum in the second quarter with over 80% revenue growth," said Christian Chabot, CEO and president. "With the new Tableau 8.2 release, we brought Tableau to the Mac and enabled our customers to tell stories with data in a new way."
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, Financial) 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.
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 keep an investor happy.
