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Tableau Reports Second Quarter 2018 Financial Results

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Tableau Reports Second Quarter 2018 Financial Results

PR Newswire

SEATTLE, Aug. 2, 2018 /PRNewswire/ -- Tableau Software, Inc. (NYSE:DATA) today reported results for its second quarter ended June 30, 2018.

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"We saw strong customer demand for subscriptions in the second quarter, as shown by our 67 percent ratable license bookings mix," said Adam Selipsky, President and Chief Executive Officer of Tableau. "Our new Creator, Explorer and Viewer subscription offerings have made it even easier for our customers to buy and scale Tableau, as more and more organizations look to deploy self-service analytics with tailored solutions for every user."

Financial Summary - ASC 606 (1)

  • ASC 606 total revenue was $282.3 million.
  • Total annual recurring revenue was $697.7 million, up 44% year over year.
  • Subscription annual recurring revenue was $291.3 million, up 181% year over year.
  • ASC 606 diluted GAAP net loss per share was $0.15.
  • ASC 606 diluted non-GAAP net income per share was $0.41.

Financial Summary - ASC 605 (1)

  • ASC 605 total revenue was $243.6 million, compared to a guided range of $230.0 million to $240.0 million as provided during the Company's earnings call on May 2, 2018.
  • ASC 605 diluted GAAP net loss per share was $0.72.
  • ASC 605 diluted non-GAAP net loss per share was $0.00, compared to a guided range of $0.08 to $0.15 non-GAAP net loss per share as provided during the Company's earnings call on May 2, 2018.

Financial Results - ASC 606 (1)

ASC 606 total revenue for the second quarter of 2018 was $282.3 million. Total annual recurring revenue increased 44% to $697.7 million as of June 30, 2018, up from $483.6 million as of June 30, 2017. Subscription annual recurring revenue increased 181% to $291.3 million as of June 30, 2018, up from $103.5 million as of June 30, 2017.

ASC 606 GAAP operating loss for the second quarter of 2018 was $21.0 million. ASC 606 GAAP net loss for the second quarter of 2018 was $12.1 million, or $0.15 per diluted common share.

ASC 606 non-GAAP operating income, which excludes stock-based compensation expense and expense related to amortization of acquired intangible assets, was $37.8 million for the second quarter of 2018. ASC 606 non-GAAP net income, which excludes stock-based compensation expense, expense related to amortization of acquired intangible assets and non-GAAP income tax adjustments, was $35.7 million for the second quarter of 2018, or $0.41 per diluted common share.

During the second quarter ended June 30, 2018, Tableau repurchased 312,921 shares of its outstanding Class A common stock for a total of $30.0 million. As of June 30, 2018, the Company was authorized to repurchase a remaining $340.0 million of its Class A common stock under the previously authorized repurchase program.

(1) Tableau adopted the new revenue recognition accounting standard Accounting Standards Codification ("ASC") 606 effective January 1, 2018 on a modified retrospective basis. Financial results for reporting periods during 2018 are presented in compliance with the new revenue recognition standard. Historical financial results for reporting periods prior to 2018 are presented in conformity with amounts previously disclosed under the prior revenue recognition standard ASC 605. This press release includes additional information to reconcile the impacts of the adoption of the new revenue recognition standard on the Company's financial results for the quarter ended June 30, 2018. This includes the presentation of financial results during 2018 under ASC 605 for comparison to the prior year.

Financial Results - ASC 605 (1)

ASC 605 total revenue for the second quarter of 2018 was $243.6 million, up 14% from $212.9 million in the second quarter of 2017. ASC 605 GAAP operating loss for the second quarter of 2018 was $66.1 million, compared to a GAAP operating loss of $44.9 million for the second quarter of 2017. ASC 605 GAAP net loss for the second quarter of 2018 was $59.6 million, or $0.72 per diluted common share, compared to a GAAP net loss of $42.5 million, or $0.54 per diluted common share, for the second quarter of 2017.

ASC 605 non-GAAP operating loss was $7.3 million for the second quarter of 2018, compared to a non-GAAP operating income of $7.3 million for the second quarter of 2017. ASC 605 non-GAAP net loss was $0.3 million for the second quarter of 2018, or $0.00 per diluted common share, compared to a non-GAAP net income of $7.9 million, or $0.10 per diluted common share, for the second quarter of 2017.

Recent Business Highlights

  • Acquired Empirical Systems, Inc., a startup specializing in automated statistical analysis that originated at the Massachusetts Institute of Technology's Probabilistic Computing Project.
  • Announced the appointment of Damon Fletcher as Chief Financial Officer.
  • Released Tableau 2018.2, which further opens Tableau's platform to developers with a new Extensions API and also includes Tableau Services Manager, which gives customers a direct way to manage their Tableau Server deployments.
  • Hosted Tableau Conference Europe, with over 1,800 customers and partners in London for Tableau's largest international conference to date.

Conference Call and Webcast Information

In conjunction with this announcement, Tableau will host a conference call at 1:30 p.m. PT (4:30 p.m. ET) today to discuss Tableau's second quarter 2018 financial results. A live audio webcast and replay of the call, together with detailed financial information, will be available in the Investor Relations section of Tableau's website at http://investors.tableau.com. The live call can be accessed by dialing (866) 393-4306 (U.S.) or (734) 385-2616 (outside the U.S.) and referencing passcode 2667577. A replay of the call can also be accessed by dialing (855) 859-2056 (U.S.) or (404) 537-3406 (outside the U.S.), and referencing passcode 2667577.

About Tableau

Tableau (NYSE:DATA) helps people see and understand data. Tableau helps anyone quickly analyze, visualize and share information. More than 78,000 customer accounts get rapid results with Tableau in the office and on-the-go. Hundreds of thousands of people have used Tableau Public to share data in their blogs and websites. See how Tableau can help you by downloading the free trial at www.tableau.com/trial.

Tableau and Tableau Software are trademarks of Tableau Software, Inc. All other company and product names may be trademarks of the respective companies with which they are associated.

Forward-Looking Statements

This press release contains, and statements made during the above referenced conference call will contain, "forward-looking" statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including regarding the Company's continued transition to subscription and term licensing and its expected increase in demand for its products including its role-based subscription offerings and new product capabilities; continued product adoption, including strong subscription demand and annual recurring revenue growth; demand, adoption and deployment by enterprise customers, and the Company's ability to service, execute and grow that demand in the U.S. and globally; the willingness and ability of the Company's partners to sell its subscription offerings; customers' ability to easily scale the Company's products and broaden the deployment of analytics across their entire workforces with tailored solutions for every employee; the Company's research and development investments, costs, continued innovation and ability to timely release future products and features; the Company's leadership position in the sector and ability to address market opportunities as a visual analytics platform; the Company's expectations, quarterly and annual outlook and guidance regarding future operating results, including revenues, expenses and net income or loss, and future performance of key metrics; and the Company's stock repurchase authorization and timing and ability to repurchase shares of the Company's Class A common stock under its stock repurchase program. These statements are not guarantees of future performance, but are based on management's expectations as of the date of this press release and assumptions that are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements. Important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements include the following: customer demand for Tableau's products and services and customer response to its subscription offerings; risks associated with anticipated growth in Tableau's business and addressable market; competitive factors, including new market entrants and changes in the competitive environment, pricing changes, sales cycle time and increased competition; Tableau's enterprise sales execution and expansion and further transition to subscription and term licensing; Tableau's ability to attract, integrate and retain qualified personnel; general economic and industry conditions, including expenditure trends for business analytics and productivity tools; new product introductions and Tableau's ability to develop and deliver innovative, secure and high-quality products to customers' on-premise, public, private or hybrid cloud environments; Tableau's ability to provide high-quality customer service and support offerings; risks associated with international expansion and operations; macroeconomic conditions; market conditions; and the possibility that the stock repurchase program may be suspended or discontinued. These and other important risk factors are described more fully in additional documents filed with the Securities and Exchange Commission, including Tableau's most recently filed Quarterly Report on Form 10-Q, Annual Report on Form 10-K and other reports and filings with the Securities and Exchange Commission, and could cause actual results to vary from expectations. All information provided in this release and in the conference call is as of the date hereof and Tableau undertakes no duty to update this information except as required by law.

Non-GAAP Financial Measures

Tableau believes that the use of non-GAAP gross profit and gross margin, non-GAAP operating income (loss) and operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per basic and diluted common share and free cash flow is helpful to its investors. These measures, which are referred to as non-GAAP financial measures, are not prepared in accordance with generally accepted accounting principles in the United States, or GAAP. Non-GAAP gross profit is calculated by excluding stock-based compensation expense and expense related to amortization of acquired intangible assets, each to the extent attributable to the cost of revenues, from gross profit. Non-GAAP gross margin is the ratio calculated by dividing non-GAAP gross profit by total revenues. Non-GAAP operating income (loss) is calculated by excluding stock-based compensation expense and expense related to amortization of acquired intangible assets from operating income (loss). Non-GAAP operating margin is the ratio calculated by dividing non-GAAP operating income (loss) by total revenues. Non-GAAP net income (loss) is calculated by excluding stock-based compensation expense, expense related to amortization of acquired intangible assets and non-GAAP income tax adjustments from net income (loss). Non-GAAP net income (loss) per basic and diluted common share is calculated by dividing non-GAAP net income (loss) by the basic and diluted weighted average shares outstanding. Non-GAAP diluted weighted average shares outstanding includes the effect of dilutive shares in periods of non-GAAP net income.

Non-GAAP financial information is adjusted for a tax rate equal to Tableau's estimated tax rate on non-GAAP income over a three-year financial projection. This long-term rate is based on Tableau's estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating the non-GAAP financial measures. To determine this long-term non-GAAP tax rate, Tableau evaluates a three-year financial projection that excludes the impact of non-cash stock-based compensation expense and expense related to amortization of acquired intangible assets. The long-term non-GAAP tax rate takes into account other factors including Tableau's current operating structure, its existing tax positions in various jurisdictions and key legislation in major jurisdictions where Tableau operates. The long-term non-GAAP tax rate applied to the three and six months ended June 30, 2018 was 20%. The long-term non-GAAP tax rate applied to the three and six months ended June 30, 2017 was 30%. Tableau applied these same non-GAAP tax rates to its financial results presented in accordance with ASC 606 and ASC 605. The long-term non-GAAP tax rates assume the Company's deferred income tax assets will be realized based upon projected future taxable income excluding stock-based compensation expense. The Company anticipates using the long-term non-GAAP tax rate of 20%, applied to the three and six months ended June 30, 2018, in future periods and may provide updates to this rate on an annual basis, or more frequently if material changes occur.

Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company's non-cash expenses, Tableau believes that providing non-GAAP financial measures that exclude stock-based compensation expense allow for meaningful comparisons between its operating results from period to period. The expense related to amortization of acquired intangible assets is dependent upon estimates and assumptions, which can vary significantly and are unique to each asset acquired; therefore, Tableau believes non-GAAP measures that adjust for the amortization of acquired intangible assets provides investors a consistent basis for comparison across accounting periods. All of these non-GAAP financial measures are important tools for financial and operational decision-making and for evaluating Tableau's own operating results over different periods of time.

Tableau calculates free cash flow as net cash provided by operating activities less net cash used in investing activities for purchases of property and equipment. Tableau considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by Tableau's business that can be used for strategic opportunities, including investing in Tableau's business, making strategic acquisitions, repurchasing Tableau's common stock and strengthening Tableau's balance sheet. All of Tableau's non-GAAP financial measures are important tools for financial and operational decision-making and for evaluating Tableau's operating results over different periods of time.

Non-GAAP financial measures may not provide information that is directly comparable to information provided by other companies in Tableau's industry, as other companies in the industry may calculate non-GAAP financial measures differently. In addition, there are limitations in using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on Tableau's reported financial results. Further, stock-based compensation expense has been and will continue to be for the foreseeable future a significant recurring expense in Tableau's business and an important part of the compensation provided to its employees. Because of the significant impact of the adoption of ASC 606 on the Company's results of operations, non-GAAP financial measures for the three and six months ended June 30, 2018 (computed in accordance with ASC 606) are not as comparable to non-GAAP financial measures for the three and six months ended June 30, 2017 (computed in accordance with ASC 605). The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Investors should review the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures included below, and not rely on any single financial measure to evaluate Tableau's business.

 

Tableau Software, Inc.

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)



Three Months Ended June 30,


Six Months Ended June 30,


2018


2017


2018


2017

Revenues








License

$

137,848



$

103,296



$

246,641



$

200,540


Maintenance and services

144,441



109,584



281,855



212,246


Total revenues

282,289



212,880



528,496



412,786


Cost of revenues








License

4,626



2,942



8,580



6,209


Maintenance and services

30,599



23,723



59,070



47,111


Total cost of revenues (1)

35,225



26,665



67,650



53,320


Gross profit

247,064



186,215



460,846



359,466


Operating expenses








  Sales and marketing (1)

144,150



124,160



282,556



242,178


  Research and development (1)

94,033



81,067



187,538



165,369


  General and administrative (1)

29,846



25,875



62,096



50,320


Total operating expenses

268,029



231,102



532,190



457,867


Operating loss

(20,965)



(44,887)



(71,344)



(98,401)


Other income, net

6,866



4,029



8,328



5,254


Loss before income tax expense (benefit)

(14,099)



(40,858)



(63,016)



(93,147)


Income tax expense (benefit)

(2,033)



1,664



(4,478)



4,022


Net loss

$

(12,066)



$

(42,522)



$

(58,538)



$

(97,169)










Net loss per share:








  Basic

$

(0.15)



$

(0.54)



$

(0.72)



$

(1.25)


  Diluted

$

(0.15)



$

(0.54)



$

(0.72)



$

(1.25)










Weighted average shares used to compute net loss per share:








  Basic

82,247



78,511



81,647



77,966


  Diluted

82,247



78,511



81,647



77,966






(1) Includes stock-based compensation expense as follows:






Three Months Ended June 30,


Six Months Ended June 30,


2018


2017


2018


2017









Cost of revenues

$

3,299



$

2,790



$

6,286



$

5,367


Sales and marketing

22,150



18,526



42,165



36,618


Research and development

26,837



25,648



51,994



49,163


General and administrative

6,026



5,150



13,630



10,161


 

Tableau Software, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)



June 30, 2018


December 31, 2017

Assets




Current assets




Cash and cash equivalents

$

611,091



$

627,878


Short-term investments

301,054



226,787


Accounts receivable, net

170,907



203,366


Prepaid expenses and other current assets

115,605



30,514


Income taxes receivable

778



673


Total current assets

1,199,435



1,089,218


Long-term investments

89,991



148,364


Property and equipment, net

95,603



106,753


Goodwill

42,530



35,083


Deferred income taxes

4,072



5,287


Other long-term assets

41,626



14,090


Total assets

$

1,473,257



$

1,398,795


Liabilities and stockholders' equity




Current liabilities




Accounts payable

$

3,829



$

4,448


Accrued compensation and employee-related benefits

75,129



96,390


Other accrued liabilities

54,745



37,722


Income taxes payable

1,986



4,743


Deferred revenue

320,305



419,426


Total current liabilities

455,994



562,729


Deferred revenue

15,615



28,058


Other long-term liabilities

53,686



54,385


Total liabilities

525,295



645,172


Stockholders' equity




Common stock

8



8


Additional paid-in capital

1,256,854



1,168,563


Accumulated other comprehensive loss

(11,811)



(11,991)


Accumulated deficit

(297,089)



(402,957)


Total stockholders' equity

947,962



753,623


Total liabilities and stockholders' equity

$

1,473,257



$

1,398,795


 

Tableau Software, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)



Six Months Ended June 30,


2018


2017

Operating activities




Net loss

$

(58,538)



$

(97,169)


Adjustments to reconcile net loss to net cash provided by operating activities




Depreciation and amortization expense

19,050



23,837


Amortization of premiums on investments, net

137




Stock-based compensation expense

114,075



101,309


Deferred income taxes

(3,965)



465


Changes in operating assets and liabilities




Accounts receivable, net

31,490



72,493


Prepaid expenses and other assets

(44,925)



19,519


Income taxes receivable

(125)



(97)


Deferred revenue

(3,893)



30,072


Accounts payable and accrued liabilities

8,663



(16,421)


Income taxes payable

(2,713)



523


Net cash provided by operating activities

59,256



134,531


Investing activities




Purchases of property and equipment

(11,076)



(33,860)


Business combination, net of cash acquired

(10,947)




Purchases of investments

(156,591)




Maturities of investments

139,685




Sales of investments

99




Net cash used in investing activities

(38,830)



(33,860)


Financing activities




Proceeds from issuance of common stock

25,581



21,646


Repurchases of common stock

(60,013)



(40,014)


Net cash used in financing activities

(34,432)



(18,368)


Effect of exchange rate changes on cash and cash equivalents

(2,781)



1,884


Net increase (decrease) in cash and cash equivalents

(16,787)



84,187


Cash and cash equivalents




Beginning of period

627,878



908,717


End of period

$

611,091



$

992,904


Supplemental Information Regarding Adoption of ASC 606

Tableau Software, Inc.

Condensed Consolidated Statements of Operations

Reconciliation of the Impacts from the Adoption of the New Revenue Recognition Standard

(In thousands, except per share data)

(Unaudited)



Three Months Ended June 30,


2018


2017


As Reported

(ASC 606)


Impacts from
Adoption


Without
Adoption

(ASC 605)


As Reported

(ASC 605)

Revenues








License

$

137,848



$

(15,267)



$

122,581



$

103,296


Maintenance and services

144,441



(23,456)



120,985



109,584


Total revenues

282,289



(38,723)



243,566



212,880


Cost of revenues








License

4,626



(91)



4,535



2,942


Maintenance and services

30,599



106



30,705



23,723


Total cost of revenues

35,225



15



35,240



26,665


Gross profit

247,064



(38,738)



208,326



186,215


Operating expenses








  Sales and marketing

144,150



6,352



150,502



124,160


  Research and development

94,033





94,033



81,067


  General and administrative

29,846





29,846



25,875


Total operating expenses

268,029



6,352



274,381



231,102


Operating loss

(20,965)



(45,090)



(66,055)



(44,887)


Other income, net

6,866



118



6,984



4,029


Loss before income tax expense (benefit)

(14,099)



(44,972)



(59,071)



(40,858)


Income tax expense (benefit)

(2,033)



2,529



496



1,664


Net loss

$

(12,066)



$

(47,501)



$

(59,567)



$

(42,522)










Net loss per share:








Basic

$

(0.15)





$

(0.72)



$

(0.54)


Diluted

$

(0.15)





$

(0.72)



$

(0.54)










Weighted average shares used to compute net loss per share:








  Basic

82,247





82,247



78,511


  Diluted

82,247





82,247



78,511














Six Months Ended June 30,


2018


2017


As Reported

(ASC 606)


Impacts from Adoption


Without
Adoption

(ASC 605)


As Reported

(ASC 605)

Revenues








License

$

246,641



$

(18,394)



$

228,247



$

200,540


Maintenance and services

281,855



(42,492)



239,363



212,246


Total revenues

528,496



(60,886)



467,610



412,786


Cost of revenues








License

8,580



(143)



8,437



6,209


Maintenance and services

59,070



167



59,237



47,111


Total cost of revenues

67,650



24



67,674



53,320


Gross profit

460,846



(60,910)



399,936



359,466


Operating expenses








  Sales and marketing

282,556



10,959



293,515



242,178


  Research and development

187,538





187,538



165,369


  General and administrative

62,096





62,096



50,320


Total operating expenses

532,190



10,959



543,149



457,867


Operating loss

(71,344)



(71,869)



(143,213)



(98,401)


Other income, net

8,328



80



8,408



5,254


Loss before income tax expense (benefit)

(63,016)



(71,789)



(134,805)



(93,147)


Income tax expense (benefit)

(4,478)



8,266



3,788



4,022


Net loss

$

(58,538)



$

(80,055)



$

(138,593)



$

(97,169)










Net loss per share:








Basic

$

(0.72)





$

(1.70)



$

(1.25)


Diluted

$

(0.72)





$

(1.70)



$

(1.25)










Weighted average shares used to compute net loss per share:








  Basic

81,647





81,647



77,966


  Diluted

81,647





81,647



77,966


 

Supplemental Information Regarding Adoption of ASC 606

Tableau Software, Inc.

Condensed Consolidated Balance Sheets

Reconciliation of the Impacts from the Adoption of the New Revenue Recognition Standard

(In thousands)

(Unaudited)



June 30,

2018


December 31,
2017


As Reported
(ASC 606)


Impacts from
Adoption


Without
Adoption
(ASC 605)


As Reported
(ASC 605)

Assets








Current assets








Cash and cash equivalents

$

611,091



$



$

611,091



$

627,878


Short-term investments

301,054





301,054



226,787


Accounts receivable, net

170,907





170,907



203,366


Prepaid expenses and other current assets

115,605



(85,423)



30,182



30,514


Income taxes receivable

778



269



1,047



673


Total current assets

1,199,435



(85,154)



1,114,281



1,089,218


Long-term investments

89,991





89,991



148,364


Property and equipment, net

95,603





95,603



106,753


Goodwill

42,530





42,530



35,083


Deferred income taxes

4,072



1,509



5,581



5,287


Other long-term assets

41,626



(24,972)



16,654



14,090


Total assets

$

1,473,257



$

(108,617)



$

1,364,640



$

1,398,795


Liabilities and stockholders' equity








Current liabilities








Accounts payable

$

3,829



$



$

3,829



$

4,448


Accrued compensation and employee-related benefits

75,129





75,129



96,390


Other accrued liabilities

54,745





54,745



37,722


Income taxes payable

1,986



2,264



4,250



4,743


Deferred revenue

320,305



121,922



442,227



419,426


Total current liabilities

455,994



124,186



580,180



562,729


Deferred revenue

15,615



12,022



27,637



28,058


Other long-term liabilities

53,686



(775)



52,911



54,385


Total liabilities

525,295



135,433



660,728



645,172


Stockholders' equity








Common stock

8





8



8


Additional paid-in capital

1,256,854





1,256,854



1,168,563


Accumulated other comprehensive loss

(11,811)



411



(11,400)



(11,991)


Accumulated deficit

(297,089)



(244,461)



(541,550)



(402,957)


Total stockholders' equity

947,962



(244,050)



703,912



753,623


Total liabilities and stockholders' equity

$

1,473,257



$

(108,617)



$

1,364,640



$

1,398,795


 

Supplemental Information Regarding Adoption of ASC 606

Tableau Software, Inc.

Condensed Consolidated Statements of Cash Flows

Reconciliation of the Impacts from the Adoption of the New Revenue Recognition Standard

(In thousands)

(Unaudited)



Six Months Ended June 30,


2018


2017


As Reported
(ASC 606)


Impacts from
Adoption


Without
Adoption
(ASC 605)


As Reported
(ASC 605)

Operating activities








Net loss

$

(58,538)



$

(80,055)



$

(138,593)



$

(97,169)


Adjustments to reconcile net loss to net cash provided by operating activities








Depreciation and amortization expense

19,050





19,050



23,837


Amortization of premiums on investments, net

137





137




Stock-based compensation expense

114,075





114,075



101,309


Deferred income taxes

(3,965)



3,784



(181)



465


Changes in operating assets and liabilities








Accounts receivable, net

31,490





31,490



72,493


Prepaid expenses and other assets

(44,925)



45,078



153



19,519


Income taxes receivable

(125)



(270)



(395)



(97)


Deferred revenue

(3,893)



29,522



25,629



30,072


Accounts payable and accrued liabilities

8,663





8,663



(16,421)


Income taxes payable

(2,713)



2,263



(450)



523


Net cash provided by operating activities

59,256



322



59,578



134,531


Investing activities








Purchases of property and equipment

(11,076)





(11,076)



(33,860)


Business combination, net of cash acquired

(10,947)





(10,947)




Purchases of investments

(156,591)





(156,591)




Maturities of investments

139,685





139,685




Sales of investments

99





99




Net cash used in investing activities

(38,830)





(38,830)



(33,860)


Financing activities








Proceeds from issuance of common stock

25,581





25,581



21,646


Repurchases of common stock

(60,013)





(60,013)



(40,014)


Net cash used in financing activities

(34,432)





(34,432)



(18,368)


Effect of exchange rate changes on cash and cash equivalents

(2,781)



(322)



(3,103)



1,884


Net increase (decrease) in cash and cash equivalents

(16,787)





(16,787)



84,187


Cash and cash equivalents








Beginning of period

627,878





627,878



908,717


End of period

$

611,091



$



$

611,091



$

992,904


 

Non-GAAP Reconciliation Tables

Tableau Software, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures and

Reconciliation of the Impacts from the Adoption of the New Revenue Recognition Standard

(In thousands, except per share data)

(Unaudited)



Three Months Ended June 30,


2018


2017


As Reported
(ASC 606)


Impacts from
Adoption


Without
Adoption
(ASC 605)


As Reported
(ASC 605)

Reconciliation of gross profit to non-GAAP gross profit:








Gross profit

$

247,064



$

(38,738)



$

208,326



$

186,215


Excluding: Stock-based compensation expense attributable to cost of revenues

3,299





3,299



2,790


Excluding: Amortization of acquired intangible assets

404





404



95


Non-GAAP gross profit

$

250,767



$

(38,738)



$

212,029



$

189,100










Reconciliation of gross margin to non-GAAP gross margin:








Gross margin

87.5

%




85.5

%


87.5

%

Excluding: Stock-based compensation expense attributable to cost of revenues

1.2

%




1.4

%


1.3

%

Excluding: Amortization of acquired intangible assets

0.1

%




0.2

%


0.0

%

Non-GAAP gross margin

88.8

%




87.1

%


88.8

%









Reconciliation of operating loss to non-GAAP operating income (loss):








Operating loss

$

(20,965)



$

(45,090)



$

(66,055)



$

(44,887)


Excluding: Stock-based compensation expense

58,312





58,312



52,114


Excluding: Amortization of acquired intangible assets

404





404



95


Non-GAAP operating income (loss)

$

37,751



$

(45,090)



$

(7,339)



$

7,322










Reconciliation of operating margin to non-GAAP operating margin:








Operating margin

(7.4)

%




(27.1)

%


(21.1)

%

Excluding: Stock-based compensation expense

20.7

%




23.9

%


24.5

%

Excluding: Amortization of acquired intangible assets

0.1

%




0.2

%


0.0

%

Non-GAAP operating margin

13.4

%




(3.0)

%


3.4

%




Three Months Ended June 30,


2018


2017


As Reported
(ASC 606)


Impacts from
Adoption


Without
Adoption
(ASC 605)


As Reported
(ASC 605)

Reconciliation of net loss to non-GAAP net income (loss):








Net loss

$

(12,066)



$

(47,501)



$

(59,567)



$

(42,522)


Excluding: Stock-based compensation expense

58,312





58,312



52,114


Excluding: Amortization of acquired intangible assets

404





404



95


Income tax adjustments

(10,956)



11,523



567



(1,742)


Non-GAAP net income (loss)

$

35,694



$

(35,978)



$

(284)



$

7,945










Weighted average shares used to compute non-GAAP basic net income (loss) per share

82,247





82,247



78,511


Effect of potentially dilutive shares: stock awards

3,878







3,925


Weighted average shares used to compute non-GAAP diluted net income (loss) per share

86,125





82,247



82,436










Non-GAAP net income (loss) per share:








Basic

$

0.43





$

(0.00)



$

0.10


Diluted

$

0.41





$

(0.00)



$

0.10

















Six Months Ended June 30,


2018


2017


As Reported
(ASC 606)


Impacts from
Adoption


Without
Adoption
(ASC 605)


As Reported
(ASC 605)

Reconciliation of gross profit to non-GAAP gross profit:








Gross profit

$

460,846



$

(60,910)



$

399,936



$

359,466


Excluding: Stock-based compensation expense attributable to cost of revenues

6,286





6,286



5,367


Excluding: Amortization of acquired intangible assets

753





753



190


Non-GAAP gross profit

$

467,885



$

(60,910)



$

406,975



$

365,023










Reconciliation of gross margin to non-GAAP gross margin:








Gross margin

87.2

%




85.5

%


87.1

%

Excluding: Stock-based compensation expense attributable to cost of revenues

1.2

%




1.3

%


1.3

%

Excluding: Amortization of acquired intangible assets

0.1

%




0.2

%


0.0

%

Non-GAAP gross margin

88.5

%




87.0

%


88.4

%









Reconciliation of operating loss to non-GAAP operating income (loss):








Operating loss

$

(71,344)



$

(71,869)



$

(143,213)



$

(98,401)


Excluding: Stock-based compensation expense

114,075





114,075



101,309


Excluding: Amortization of acquired intangible assets

753





753



190


Non-GAAP operating income (loss)

$

43,484



$

(71,869)



$

(28,385)



$

3,098










Reconciliation of operating margin to non-GAAP operating margin:








Operating margin

(13.5)

%




(30.6)

%


(23.8)

%

Excluding: Stock-based compensation expense

21.6

%




24.4

%


24.5

%

Excluding: Amortization of acquired intangible assets

0.1

%




0.2

%


0.0

%

Non-GAAP operating margin

8.2

%




(6.1)

%


0.8

%




Six Months Ended June 30,


2018


2017


As Reported
(ASC 606)


Impacts from
Adoption


Without
Adoption
(ASC 605)


As Reported
(ASC 605)

Reconciliation of net loss to non-GAAP net income (loss):








Net loss

$

(58,538)



$

(80,055)



$

(138,593)



$

(97,169)


Excluding: Stock-based compensation expense

114,075





114,075



101,309


Excluding: Amortization of acquired intangible assets

753





753



190


Income tax adjustments

(14,840)



22,623



7,783



1,516


Non-GAAP net income (loss)

$

41,450



$

(57,432)



$

(15,982)



$

5,846










Weighted average shares used to compute non-GAAP basic net income (loss) per share

81,647





81,647



77,966


Effect of potentially dilutive shares: stock awards

3,949







3,772


Weighted average shares used to compute non-GAAP diluted net income (loss) per share

85,596





81,647



81,738










Non-GAAP net income (loss) per share:








Basic

$

0.51





$

(0.20)



$

0.07


Diluted

$

0.48





$

(0.20)



$

0.07

















Six Months Ended June 30,


2018


2017


As Reported
(ASC 606)


Impacts from Adoption


Without
Adoption
(ASC 605)


As Reported
(ASC 605)

Reconciliation of net cash provided by operating activities to free cash flow:








Net cash provided by operating activities

$

59,256



$

322



$

59,578



$

134,531


Less: Purchases of property and equipment

(11,076)





(11,076)



(33,860)


Free cash flow

$

48,180



$

322



$

48,502



$

100,671


Net cash used in investing activities

$

(38,830)



$



$

(38,830)



$

(33,860)


Net cash used in financing activities

$

(34,432)



$



$

(34,432)



$

(18,368)


Effect of exchange rate changes on cash and cash equivalents

$

(2,781)



$

(322)



$

(3,103)



$

1,884


Tableau Software, Inc.
Trended Metrics

The following metrics are intended as a supplement to the financial statements found in this release and other information furnished or filed with the SEC. In the event of discrepancies between amounts in these tables and the Company's historical disclosures or financial statements, readers should rely on the Company's filings with the SEC and financial statements in the Company's most recent earnings release.

Tableau intends to periodically review and refine the definition, methodology and appropriateness of each of these supplemental metrics. As a result, metrics are subject to removal and/or change, and such changes could be material.


 Q1`17

 Q2`17

 Q3`17

 Q4`17

FY 2017

 Q1`18

Q2'18


(Dollars in thousands)



(Unaudited)


Customer metrics








Customer accounts (1)

57,000

+

61,000

+

65,000

+

70,000

+

70,000

+

74,000

+

78,000

+

Customer accounts added in period (1)

3,300

+

4,000

+

4,100

+

4,700

+

16,100

+

3,900

+

4,100

+

Deals greater than $100,000 (2)

294


372


337


590


1,593


301


436


Customer accounts that purchased greater than $1 million during the quarter (1,2)

10


15


13


27



13


22










Annual recurring revenue metrics








Total annual recurring revenue (3)

$

439,001


$

483,578


$

526,211


$

596,244


$

596,244


$

641,946


$

697,700


Subscription annual recurring revenue (4)

$

71,950


$

103,538


$

139,210


$

195,488


$

195,488


$

237,533


$

291,292










Geographic revenue metrics - ASC 606








United States and Canada






$

167,799


$

196,992


International






$

78,408


$

85,297


United States and Canada as % of total revenue






68

%

70

%

International as % of total revenue






32

%

30

%









Geographic revenue metrics - ASC 605








United States and Canada

$

141,496


$

146,102


$

150,059


$

168,116


$

605,773


$

154,443


$

169,234


International

$

58,410


$

66,778


$

64,858


$

81,240


$

271,286


$

69,601


$

74,332


United States and Canada as % of total revenue

71

%

69

%

70

%

67

%

69

%

69

%

69

%

International as % of total revenue

29

%

31

%

30

%

33

%

31

%

31

%

31

%









Additional revenue metrics - ASC 606








Remaining performance obligations (5)





$

99,580


$

114,523


$

138,498










Additional revenue metrics - ASC 605








Ratable revenue as % of total revenue (6)

54

%

56

%

63

%

60

%

59

%

72

%

72

%

Ratable license revenue as % of total license revenue (7)

19

%

23

%

34

%

34

%

28

%

54

%

56

%

Services revenues as a % of maintenance and services revenue (8)

12

%

13

%

12

%

13

%

13

%

11

%

12

%









Bookings metrics - ASC 605








Ratable bookings as % of total bookings (2)

55

%

61

%

65

%

70

%

64

%

72

%

76

%

Ratable license bookings as % of total license bookings (2)

26

%

37

%

45

%

51

%

41

%

59

%

67

%









Other metrics








Worldwide employees

3,193


3,305


3,418


3,489


3,489


3,663


3,896



(1) Tableau defines a customer account as a single purchaser of its products. Customer accounts are typically organizations. In some cases, organizations will have multiple groups purchasing Tableau software, which count as discrete customer accounts.


(2) These operating metrics are based on Tableau's definition of bookings, which is defined as the first year of contracted revenue only and does not include additional years beyond the first year unless a customer pays for those years up front. Bookings includes both new sales and renewals. Tableau's bookings may not be comparable to similarly named measures disclosed by other companies in the software industry. Bookings is not a measure of revenue or an indication of actual revenue results. Revenues ultimately recognized could be affected by a number of factors. License bookings include sales of software licenses and subscriptions to Tableau Online. Ratable bookings are sales transactions that result in revenues, which will be amortized over a period of time.


(3) Tableau defines total annual recurring revenue ("Total ARR") as the annualized recurring value of all active contracts at the end of a reporting period. Total ARR includes subscription annual recurring revenue ("Subscription ARR") and the annualized value of all maintenance contracts related to perpetual licenses active at the end of a reporting period.


(4) Tableau defines Subscription ARR as the annualized recurring value of all active subscription contracts at the end of a reporting period. Subscription ARR includes term licenses and renewals, subscription enterprise license agreements and Tableau Online subscriptions and renewals, and excludes distribution original equipment manufacturer ("OEM") license agreements and perpetual-style enterprise license agreements.


(5) Remaining performance obligations represent amounts from contracts with customers allocated to performance obligations that will be satisfied at a later date. These amounts include additional performance obligations that are not yet recorded in the consolidated balance sheets. Remaining performance obligations presented under FY 2017 represents the balance as of January 1, 2018 upon adoption of ASC 606. These amounts do not include deferred revenue, which is already included within the consolidated balance sheets.


(6) Ratable revenues were amortized during the respective periods. For example, sales of Tableau Online, as well as maintenance and support, are recognized ratably. Excluding the impacts of adopting the new revenue recognition standard, enterprise license agreements, on-premises term licenses and OEM license arrangements are also recognized ratably.


(7) Ratable license revenues were amortized during the respective periods. For example, sales of Tableau Online are recognized ratably. Excluding the impacts of adopting the new revenue recognition standard, enterprise license agreements, on-premises term licenses and OEM license arrangements are also recognized ratably.


(8) Services revenues were recognized upon delivery of professional services and training.

 

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SOURCE Tableau Software

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