What To Expect From Tableau’s Q3 Earnings
We expect Tableau Software‘s (NYSE:DATA) solid revenue growth to continue when the company reports its third quarter earnings on Thursday, November 2. The company expects to generate revenues between $213 million and $223 million, with the midpoint of the guidance representing 6% year-over-year growth. The company’s customer base has increased strongly (more than 8x growth since 2011) over the years, to around 61,000 in Q2. With Tableau’s announcement of the 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 increased uptake of the cost-effective offerings, the company should be able to offset some of that impact. 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 with software giants Microsoft, Salesforce and SAP.
International markets have seen increased adoption, and now constitute nearly 31% 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.
- Can Salesforce’s Acquisition of Tableau Reduce Annual Operating Expense In the Next 3 Years?
- How Will Salesforce.com’s Gross Profits Be Impacted Due to Tableau Acquisition?
- Tableau’s Revenue Grow But Miss Consensus, Continuous Expansion To Fuel Growth?
- Tableau’s Increasing Customer Base To Fuel Growth In Q1 2019
- What Is Tableau’s Expected Revenue For FY 2019?
- Tableau Reports Record Revenues, Will Subscription Licensing Continue To Push This Growth?
Currently, we have a price estimate of $62 for Tableau, which is significantly below the current market price.
Please refer to our complete analysis for Tableau