Tableau To Keep Top Line Momentum On Back of Subscription Model

Tableau Software (NYSE:DATA) is expected to continue the growth momentum of the previous quarters and report a strong performance for the Quarter 4 and Full year results to be declared on February 5, 2019 after the market closes. The company’s continuous revenue growth will be driven by its growing customer base and increased adoption to its subscription model. Further, Tableau’s investment in smart technologies, such as Tableau Prep, and innovation-driven acquisitions, are expected to drive its value in the long term.

We have a price estimate of $120 for the company. View our interactive dashboard – Our Outlook For Tableau For FY 2018– and modify the key assumptions to arrive at your own price estimate for the company.

The market expects earnings to be around $-0.35 and full year revenue to be around $978.8 million, up by more than 11% year on year (YOY). As has been the case throughout the current year, we expect Tableau’s revenues will likely be driven by the growth in its customer base and increased adoption of its subscription model.

The transition to a subscription model will continue to weigh on Tableau’s operating profits and margins. The company estimates its 2018 operating loss to be 4%-5% of its total revenue. For 4Q’18, the company expects its Non-GAAP operating loss to be between 4% to 5% of revenue and non- GAAP loss per share to be in the range of $0.08-$0.10 per share.

Overall, it has been a good year for Tableau so far, and we expect the full year results to be strong. The company has been continuously improving with its products and services and we expect this to continue in the near term.