What To Expect From Tableau’s Q2 Earnings

We expect Tableau Software‘s (NYSE:DATA) solid revenue growth to continue when the company reports its second quarter earnings on August 2nd. The company expects to generate revenues between $205 million to $215 million, with the midpoint of the guidance representing 6% year-over-year growth. The company’s customer base has increased phenomenally (more than 7 times since 2011) over the years, to around 57,000 in Q1. With Tableau’s announcement of deployment of Tableau Online using Amazon Web Services (AWS) and a revised pricing structure across product lines leading to reduced upfront costs for its customers, we expect increased adoption of the company’s products. This will likely put some pressure on near-term revenues, but is in line with the company’s long term growth vision. Moreover, with the increased uptake of the cost effective alternative, the company should be able to offset a part of reduced revenues. Tableau’s net loss is expected to broaden sequentially, amid increased investments in sales and marketing and research and development in order to remain competitive against software giants Microsoft, Salesforce and SAP.

International markets have seen increased adoption, and constitute nearly 30% of the company’s overall revenues, which highlights Tableau’s returns on its increased global footprint. Driven by the adoption of its data analytics platform in Asia and Europe, with support in various languages and presence of direct and indirect sales channels, we expect further growth in international markets.

With customer attention shifting toward cloud-based products, Tableau is leveraging two cost effective product lines, Tableau Online and Tableau Public, to capitalize on this demand. Both products have seen increased adoption since their launches, something that bodes well for the company’s long term future.

Please refer to our complete analysis for Tableau

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