What To Expect From Tableau’s Q1 Earnings

by Trefis Team
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Tableau Software
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We expect Tableau Software‘s (NYSE:DATA) solid revenue growth to continue when it reports its first quarter earnings on Wednesday, May 2. The company expects to generate revenues between $212 million to $222 million in Q1, with the midpoint of the guidance representing 9% year-over-year growth. The company’s customer base has increased strongly (more than 8x growth since 2011) over the years, to around 70,000 in Q4. With Tableau’s announcement of the deployment of Tableau Online using Amazon Web Services (AWS), a strategic partnership with Google, 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 could 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, Tableau 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.

Currently, we have a price estimate of $74 for Tableau, which is below the current market price. We have also created an interactive dashboard which shows the forecast trends; you can modify the key value drivers to see how they impact the company’s revenues and bottom line.

 

International Growth

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 the 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, which bodes well for the company’s long term future.

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