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2017 Is A Wildcard For Tableau Software

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D.A. Davidson’s Jack Andrews believes 2017 is a wildcard for Tableau Software Inc (NYSE: DATA), while expecting the data analytics software maker’s fourth EPS and revenues above Street.

Tableau, whose software enables people to manipulate data without advanced training, will announce its fourth quarter results on Thursday, after the market close.

Andrews projects non-GAAP EPS of $0.15, which is above the Street’s $0.13 estimate and within the guidance range of $0.09-$0.16. He also estimates revenue to grow 14.9 percent year-over-year (YoY) to $233 million, slightly ahead of consensus at $230.3 million and within company guidance of $225-$235 million.

The analyst noted that all eyes will be on the thoughts of CEO Adam Selipksy, for whom this will be the first full quarter at the helm. Andrews expects his key areas of focus to include strengthening product features, improving messaging for enterprise customers, and refining licensing and pricing models for broader adoption.

Investors would also look for additional color on 2017 outlook. Management had provided a preliminary 2017 outlook calling for 0-10 percent revenue growth, but Street estimates only an average of 7.2 percent growth, with estimates ranging between $801 million and $918 million. EPS encompasses an even broader range of $(0.20)-$0.47.

“We believe there remains a downside bias to estimates, given DATA's business model transition and the poor near-term financial optics resulting from a shift to the cloud,” Andrews wrote in a note.

Meanwhile, Andrews reiterated his Neutral rating and $50 target on the shares.

“Our research indicates Tableau remains a "best of breed" product and customer enthusiasm remains high. Nonetheless, we detect some pushback on pricing as well as customer hesitation regarding fully standardizing on a single analytics platform,” Andrews added.

Latest Ratings for DATA

DateFirmActionFromTo
Jul 2019BernsteinDowngradesOutperformMarket Perform
Jun 2019WedbushDowngradesOutperformNeutral
Jun 2019CitigroupDowngradesBuyNeutral

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