EX-99.1 2 a991-01q22018.htm EXHIBIT 99.1 Exhibit
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Tableau Reports Second Quarter 2018 Financial Results

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


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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

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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.

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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.

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Investor Contact
ir@tableau.com

Press Contact
pr@tableau.com

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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


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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



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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


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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




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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









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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






11

tableauheaderba15.jpg



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


12

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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
 %

13

tableauheaderba15.jpg



 
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


14

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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
 %


15

tableauheaderba15.jpg




 
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




16

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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


17

tableauheaderba15.jpg



(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.



18