Tableau Reports Record Revenues, Will Subscription Licensing Continue To Push This Growth?

by Trefis Team
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Tableau Software
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Tableau Software (NYSE:DATA) reported its quarter 4 and full year results for the fiscal 2018 on February 5, 2019. The company beat the consensus on revenues. The company recorded revenue of more than $1 billion for the first time and reported $1.16 billion, up by 31% year on year (YOY). The company recorded $556 million as revenues from licensing and $600 million from maintenance and services.

We have a price estimate of $120 for the company. View our interactive dashboard – Our Outlook For Tableau For FY 2019– and modify the key assumptions to arrive at your own price estimate for the company.

 

Key highlights for Fiscal Year 2018:

The 2018 year had been a transformative year for the company as they added more than 15,700 new customer accounts, delivered more than 140 new features in the end-to-end analytics platform, and made huge strides toward shifting to the subscription model.

In the last quarter of the year the company was quite strong in the APAC region while also expanding its footprint to regions like Sweden, Netherlands, and Hong Kong. At the end of the year the company had a total headcount of 4181 from which 1842 were specific to Sales and Marketing, while 1125 were specific to the R & D department of the company.

As mentioned before, the company has made major strides in the transition to a subscription licensing model. At the end of 2 years the company has reached to nearly 80% of ratable mix from 20%. The company expects it to continue in the same pace for the Fiscal year 2019. Role-based offerings have also helped to scale the company’s offerings to a very high number of users, and the company in quarter 4 saw a strong uptake in Creator, Explorer, and Viewer offerings.

 

What is ahead?

The company expects to continue with high growth and post revenue in the range of $1.33 – $1.40 billion in the next Fiscal year 2019. While they expect the operating margin to be around 12 – 14%, and earnings to in the range of $1.54 to $1.85, which is a very optimistic outlook. The company also has received positive feedback from the customers in the public beta run of Ask Data. Ask Data is expected to be one of the next big things for Tableau and it will be part of the upcoming 2019.1 release.

During the investor call the company said that they want to focus on six strategic areas which are:

  • Continuing the subscription momentum.
  • Refining and evolving the enterprise go-to market strategy.
  • Make it easier to see and understand data.
  • Make it easier to deliver for IT departments.
  • Continue to invest in partner ecosystems.
  • Build an international footprint for high growth.

While the call was not much detailed on the six areas mentioned, if executed well, can take Tableau to great heights in the near term.

 

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