Tableau Software Falls 1.41% on Thursday, Recovers at Opening Monday

The company is a leader in creating and analyzing massive sets of data

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Jul 17, 2017
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Tableau Software Inc. (DATA, Financial) uses business intelligence software to provide interactive data visualization products to make sense of big data. The company, which went public on May 17, 2013, declined over 1.41% last week, but has risen over 28% in the past 90-day period and recovered this morning.

The company is a leader in creating and analyzing massive sets of data.

The company's stock slumped in 2016 due to "softness" in the market according to the company. The stock has since recovered thanks to an average annual sales and free cash flow increase of 23%. The company is under increased pressure from the likes of IBM (IBM, Financial) and HP Inc. (HPQ, Financial), which both have big data divisions.

Private entities, including Gravity4, which was founded by Gurbaksh Chahal, and Alteryx, which was founded by Dean Stoecker, are also pressuring Tableau to increase profits.

The company's stock was under pressure on Thursday as Federal Reserve Board Chair Janet Yellen spoke in front of the Senate Banking Committee during the second day of the central bank's monetary policy meeting.

Markets remained timid on Thursday,

Tableau announced the company will release its second-quarter financial results on Aug. 2.

The company's stock has performed strongly over the past month it was upgraded by Goldman Sachs (GS, Financial). Goldman said the company's recurring revenue could reach as high as $1.2 billion by the second quarter of 2020, pushing the stock up in the process.

The news sent the company's stock up over 4%.

Recurring revenue stands at $199.9 million as of the first quarter of the year, signaling the potential for a major increase over the next three years. The analyst upgrade is in line with Tableau's forecast it will generate 50 times the data than it does today.

Revenue deceleration is also being overlooked as the market continues to transition into business intelligence. The company's functionality, benefits and usability are all said to be superior in quality compared to the competition.

CEO Adam Selipsky, a former employee at Amazon (AMZN), joined the company a year prior and is taking an aggressive growth model approach to help boost profits. Selipsky's leadership has led the company's stock to rise nearly 20% since taking the helm.

Zacks Style Score system scores the company's growth as an "A."

Disclosure: The writer does not have any equity positions in the securities mentioned.