0001303652-18-000041.txt : 20181106 0001303652-18-000041.hdr.sgml : 20181106 20181106161531 ACCESSION NUMBER: 0001303652-18-000041 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20181106 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20181106 DATE AS OF CHANGE: 20181106 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Tableau Software Inc CENTRAL INDEX KEY: 0001303652 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 470945740 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-35925 FILM NUMBER: 181163155 BUSINESS ADDRESS: STREET 1: 1621 N 34TH ST CITY: SEATTLE STATE: WA ZIP: 98103 BUSINESS PHONE: 206-633-3400 MAIL ADDRESS: STREET 1: 1621 N 34TH ST CITY: SEATTLE STATE: WA ZIP: 98103 8-K 1 q32018earningsrelease.htm 8-K Document



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K
CURRENT REPORT

Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 6, 2018

Tableau Software, Inc.
(Exact name of registrant as specified in its charter)
 
 
 
Delaware
001-35925
47-0945740
(State or other jurisdiction
(Commission File Number)
(IRS Employer Identification No.)
of incorporation)
 
 
1621 North 34th Street
Seattle, Washington
98103
(Address of principal executive offices)
(Zip Code)
 
Registrant's telephone number, including area code: (206) 633-3400
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
o 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
o    
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o    





Section 2 - Financial Information
Item 2.02 Results of Operations and Financial Condition
On November 6, 2018, Tableau Software, Inc. ("Tableau") issued a press release announcing its financial results for the quarter ended September 30, 2018. A copy of the press release, entitled "Tableau Reports Third Quarter 2018 Financial Results" is attached as Exhibit 99.1 to this current report on Form 8-K and is incorporated by reference herein.
The information in this current report on Form 8-K and the exhibit attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.
Section 9 - Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits
(d) Exhibits







Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: November 6, 2018

 
Tableau Software, Inc.
 
 
 
/s/ Keenan M. Conder
 
Keenan M. Conder
 
Executive Vice President, General Counsel and Corporate Secretary






EX-99.1 2 a991-01q32018.htm EXHIBIT 99.1 Exhibit
tableauheaderba16.jpg




Tableau Reports Third Quarter 2018 Financial Results
Tableau Announces Record Third Quarter Revenues Driven by Strong Subscription Adoption with 81 Percent Ratable License Bookings Mix

SEATTLE, Wash. - November 6, 2018 - Tableau Software, Inc. (NYSE: DATA) today reported results for its third quarter ended September 30, 2018.
"It was extraordinary seeing our Tableau Community come together in New Orleans this year for our largest customer conference ever," said Adam Selipsky, President and Chief Executive Officer of Tableau. "Customers responded enthusiastically to our new product announcements, including natural language to bring analytics to even more people, and broadening the Tableau platform with enterprise-ready data preparation capabilities."
Financial Summary - ASC 606 (1) 
ASC 606 total revenue was $290.6 million.
Total annual recurring revenue was $762.6 million, up 45% year over year.
Subscription annual recurring revenue was $362.4 million, up 160% year over year.
ASC 606 diluted GAAP net loss per share was $0.26.
ASC 606 diluted non-GAAP net income per share was $0.47.
Financial Summary - ASC 605 (1) 
ASC 605 total revenue was $239.6 million, compared to a guided range of $236.0 million to $246.0 million as provided during the Company's earnings call on August 2, 2018.
81% ratable license bookings mix, up from 67% in the second quarter of 2018.
ASC 605 diluted GAAP net loss per share was $0.86.
ASC 605 diluted non-GAAP net loss per share was $0.07, compared to a guided range of $0.09 to $0.15 non-GAAP net loss per share as provided during the Company's earnings call on August 2, 2018.
Financial Results - ASC 606 (1) 
ASC 606 total revenue for the third quarter of 2018 was $290.6 million. Total annual recurring revenue increased 45% to $762.6 million as of September 30, 2018, up from $526.2 million as of September 30, 2017. Subscription annual recurring revenue increased 160% to $362.4 million as of September 30, 2018, up from $139.2 million as of September 30, 2017.
ASC 606 GAAP operating loss for the third quarter of 2018 was $15.2 million. ASC 606 GAAP net loss for the third quarter of 2018 was $21.3 million, or $0.26 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 $47.2 million for the third 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 $41.3 million for the third quarter of 2018, or $0.47 per diluted common share.
During the third quarter ended September 30, 2018, Tableau repurchased 282,387 shares of its outstanding Class A common stock for a total of $30.0 million. As of September 30, 2018, the Company was authorized to repurchase a remaining $310.0 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 three and nine months ended September 30, 2018. This includes the presentation of financial results during 2018 under ASC 605 for comparison to the prior year.

tableauheaderba16.jpg



Financial Results - ASC 605 (1) 
ASC 605 total revenue for the third quarter of 2018 was $239.6 million, up 11% from $214.9 million in the third quarter of 2017. ASC 605 GAAP operating loss for the third quarter of 2018 was $74.1 million, compared to a GAAP operating loss of $49.0 million for the third quarter of 2017. ASC 605 GAAP net loss for the third quarter of 2018 was $71.3 million, or $0.86 per diluted common share, compared to a GAAP net loss of $46.6 million, or $0.59 per diluted common share, for the third quarter of 2017.
ASC 605 non-GAAP operating loss was $11.6 million for the third quarter of 2018, compared to a non-GAAP operating income of $5.5 million for the third quarter of 2017. ASC 605 non-GAAP net loss for the third quarter of 2018 was $5.8 million, or $0.07 per diluted common share, compared to a non-GAAP net income of $6.4 million, or $0.08 per diluted common share, for the third quarter of 2017.
Recent Business Highlights
Hosted Tableau's 11th annual global customer conference in New Orleans with more than 17,000 customers and partners in attendance.
Presented Ask Data on stage at our global customer conference. Ask Data leverages natural language processing to enable people to ask questions about their data in an intuitive, conversational manner.
Announced plans to expand platform capabilities with a new add-on product, Tableau Prep Conductor, which enables organizations to schedule and manage self-service data preparation at scale.
Expanded partnerships with new product integrations with AWS, Informatica and Unifi and launched Dashboard Extensions with several partners including Mapbox and DataRobot.
Announced plans to expand the global partner program with new certifications and trainings as well as support for bundled offers to better serve joint customers.
Announced a commitment to grant $100 million in software, training and financial support through the Tableau Foundation through 2025.
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 third 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 (833) 241-7252 (U.S.) or (647) 689-4216 (outside the U.S.) and referencing passcode 7584507. A replay of the call can also be accessed by dialing (800) 585-8367 (U.S.) or (416) 621-4642 (outside the U.S.), and referencing passcode 7584507.
About Tableau
Tableau (NYSE: DATA) helps people see and understand data. Tableau helps anyone quickly analyze, visualize and share information. More than 82,000 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 statements regarding the Company's progress and continued transition to subscription and term licensing and adoption rate by customers of role-based subscription offerings; new product offerings and capabilities; continued product innovation and 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; momentum with the Company's partners; customers' ability to easily scale the Company's products and broaden the deployment of analytics across their workforces with

2

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tailored solutions for employees; 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 an 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 nine months ended September 30, 2018 was 20%. The long-term non-GAAP tax rate applied to the three and nine months ended September 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

3

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compensation expense. The Company anticipates using the long-term non-GAAP tax rate of 20%, applied to the three and nine months ended September 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 nine months ended September 30, 2018 (computed in accordance with ASC 606) are not as comparable to non-GAAP financial measures for the three and nine months ended September 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.
Investor Contact
ir@tableau.com
Press Contact
pr@tableau.com


4

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Tableau Software, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Revenues
 
 
 
 
 
 
 
License
$
138,127

 
$
99,424

 
$
384,768

 
$
299,964

Maintenance and services
152,453

 
115,493

 
434,308

 
327,739

Total revenues
290,580

 
214,917

 
819,076

 
627,703

Cost of revenues
 
 
 
 
 
 
 
License
5,230

 
3,265

 
13,810

 
9,474

Maintenance and services
29,549

 
26,664

 
88,619

 
73,775

Total cost of revenues (1)
34,779

 
29,929

 
102,429

 
83,249

Gross profit
255,801

 
184,988

 
716,647

 
544,454

Operating expenses
 
 
 
 
 
 
 
Sales and marketing (1)
142,129

 
123,842

 
424,685

 
366,020

Research and development (1)
97,939

 
84,494

 
285,477

 
249,863

General and administrative (1)
30,959

 
25,697

 
93,055

 
76,017

Total operating expenses
271,027

 
234,033

 
803,217

 
691,900

Operating loss
(15,226
)
 
(49,045
)
 
(86,570
)
 
(147,446
)
Other income, net
4,381

 
3,677

 
12,709

 
8,931

Loss before income tax expense
(10,845
)
 
(45,368
)
 
(73,861
)
 
(138,515
)
Income tax expense
10,492

 
1,185

 
6,014

 
5,207

Net loss
$
(21,337
)
 
$
(46,553
)
 
$
(79,875
)
 
$
(143,722
)
 
 
 
 
 
 
 
 
Net loss per share:





 
 
 
 
Basic
$
(0.26
)

$
(0.59
)
 
$
(0.97
)
 
$
(1.83
)
Diluted
$
(0.26
)

$
(0.59
)
 
$
(0.97
)
 
$
(1.83
)






 
 
 
 
Weighted average shares used to compute net loss per share:





 
 
 
 
Basic
83,264


79,440

 
82,191

 
78,463

Diluted
83,264


79,440

 
82,191

 
78,463


(1) Includes stock-based compensation expense as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
Cost of revenues
$
3,488

 
$
2,885

 
$
9,774

 
$
8,252

Sales and marketing
22,357

 
18,603

 
64,522

 
55,221

Research and development
29,926

 
27,337

 
81,920

 
76,500

General and administrative
6,175

 
5,489

 
19,805

 
15,650


5

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Tableau Software, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
 
September 30, 2018
 
December 31, 2017
Assets
 
 
 
Current assets
 
 
 
Cash and cash equivalents
$
639,254

 
$
627,878

Short-term investments
317,505

 
226,787

Accounts receivable, net
187,424

 
203,366

Prepaid expenses and other current assets
136,828

 
30,514

Income taxes receivable
1,363

 
673

Total current assets
1,282,374

 
1,089,218

Long-term investments
63,551

 
148,364

Property and equipment, net
91,265

 
106,753

Goodwill
42,530

 
35,083

Deferred income taxes
4,007

 
5,287

Other long-term assets
46,271

 
14,090

Total assets
$
1,529,998

 
$
1,398,795

Liabilities and stockholders' equity
 
 
 
Current liabilities
 
 
 
Accounts payable
$
3,817

 
$
4,448

Accrued compensation and employee-related benefits
96,091

 
96,390

Other accrued liabilities
66,313

 
37,722

Income taxes payable
7,547

 
4,743

Deferred revenue
328,187

 
419,426

Total current liabilities
501,955

 
562,729

Deferred revenue
15,851

 
28,058

Other long-term liabilities
52,447

 
54,385

Total liabilities
570,253

 
645,172

Stockholders' equity
 
 
 
Common stock
8

 
8

Additional paid-in capital
1,290,077

 
1,168,563

Accumulated other comprehensive loss
(11,914
)
 
(11,991
)
Accumulated deficit
(318,426
)
 
(402,957
)
Total stockholders' equity
959,745

 
753,623

Total liabilities and stockholders' equity
$
1,529,998

 
$
1,398,795



6

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Tableau Software, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
 
Nine Months Ended September 30,
 
2018
 
2017
Operating activities
 
 
 
Net loss
$
(79,875
)
 
$
(143,722
)
Adjustments to reconcile net loss to net cash provided by operating activities
 
 
 
Depreciation and amortization expense
27,783

 
34,174

Amortization (accretion) on investments, net
(32
)
 
162

Stock-based compensation expense
176,021

 
155,623

Deferred income taxes
(3,810
)
 
(226
)
Changes in operating assets and liabilities
 
 
 
Accounts receivable, net
14,232

 
80,030

Prepaid expenses and other assets
(71,671
)
 
(138
)
Income taxes receivable
(728
)
 
(297
)
Deferred revenue
4,666

 
45,109

Accounts payable and accrued liabilities
38,477

 
9,452

Income taxes payable
2,866

 
26

Net cash provided by operating activities
107,929

 
180,193

Investing activities
 
 
 
Purchases of property and equipment
(13,983
)
 
(43,179
)
Business combination, net of cash acquired
(10,947
)
 
(23,966
)
Purchases of investments
(206,454
)
 
(198,144
)
Maturities of investments
199,885

 

Sales of investments
99

 

Net cash used in investing activities
(31,400
)
 
(265,289
)
Financing activities
 
 
 
Proceeds from issuance of common stock
26,864

 
24,305

Repurchases of common stock
(90,019
)
 
(59,986
)
Net cash used in financing activities
(63,155
)
 
(35,681
)
Effect of exchange rate changes on cash and cash equivalents
(1,998
)
 
3,005

Net increase (decrease) in cash and cash equivalents
11,376

 
(117,772
)
Cash and cash equivalents
 
 
 
Beginning of period
627,878

 
908,717

End of period
$
639,254

 
$
790,945


7

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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 September 30,
 
2018
 
2017
 
As Reported
(ASC 606)

Impacts from Adoption

Without Adoption
(ASC 605)

As Reported
(ASC 605)
Revenues
 
 
 
 
 
 
 
License
$
138,127

 
$
(20,095
)
 
$
118,032

 
$
99,424

Maintenance and services
152,453

 
(30,894
)
 
121,559

 
115,493

Total revenues
290,580

 
(50,989
)
 
239,591

 
214,917

Cost of revenues
 
 
 
 
 
 
 
License
5,230

 
(121
)
 
5,109

 
3,265

Maintenance and services
29,549

 
148

 
29,697

 
26,664

Total cost of revenues
34,779

 
27

 
34,806

 
29,929

Gross profit
255,801

 
(51,016
)

204,785

 
184,988

Operating expenses
 
 
 
 
 
 
 
Sales and marketing
142,129

 
7,828

 
149,957

 
123,842

Research and development
97,939

 

 
97,939

 
84,494

General and administrative
30,959

 

 
30,959

 
25,697

Total operating expenses
271,027

 
7,828

 
278,855

 
234,033

Operating loss
(15,226
)
 
(58,844
)
 
(74,070
)
 
(49,045
)
Other income, net
4,381

 
32

 
4,413

 
3,677

Loss before income tax expense
(10,845
)
 
(58,812
)
 
(69,657
)
 
(45,368
)
Income tax expense
10,492

 
(8,852
)
 
1,640

 
1,185

Net loss
$
(21,337
)
 
$
(49,960
)
 
$
(71,297
)
 
$
(46,553
)
 
 
 
 
 
 
 
 
Net loss per share:
 
 
 
 
 
 
 
Basic
$
(0.26
)
 


 
$
(0.86
)
 
$
(0.59
)
Diluted
$
(0.26
)
 


 
$
(0.86
)
 
$
(0.59
)
 
 
 
 
 
 
 
 
Weighted average shares used to compute net loss per share:
 
 
 
 
 
 
 
Basic
83,264

 


 
83,264

 
79,440

Diluted
83,264

 


 
83,264

 
79,440




8

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Nine Months Ended September 30,
 
2018
 
2017
 
As Reported
(ASC 606)
 
Impacts from Adoption
 
Without Adoption
(ASC 605)
 
As Reported
(ASC 605)
Revenues
 
 
 
 
 
 
 
License
$
384,768

 
$
(38,489
)
 
$
346,279

 
$
299,964

Maintenance and services
434,308

 
(73,386
)
 
360,922

 
327,739

Total revenues
819,076

 
(111,875
)
 
707,201

 
627,703

Cost of revenues
 
 
 
 
 
 
 
License
13,810

 
(264
)
 
13,546

 
9,474

Maintenance and services
88,619

 
315

 
88,934

 
73,775

Total cost of revenues
102,429

 
51

 
102,480

 
83,249

Gross profit
716,647

 
(111,926
)
 
604,721

 
544,454

Operating expenses
 
 
 
 
 
 
 
Sales and marketing
424,685

 
18,787

 
443,472

 
366,020

Research and development
285,477

 

 
285,477

 
249,863

General and administrative
93,055

 

 
93,055

 
76,017

Total operating expenses
803,217

 
18,787

 
822,004

 
691,900

Operating loss
(86,570
)
 
(130,713
)
 
(217,283
)
 
(147,446
)
Other income, net
12,709

 
112

 
12,821

 
8,931

Loss before income tax expense
(73,861
)
 
(130,601
)
 
(204,462
)
 
(138,515
)
Income tax expense
6,014

 
(586
)
 
5,428

 
5,207

Net loss
$
(79,875
)
 
$
(130,015
)
 
$
(209,890
)
 
$
(143,722
)
 
 
 
 
 
 
 
 
Net loss per share:
 
 
 
 
 
 
 
Basic
$
(0.97
)
 
 
 
$
(2.55
)
 
$
(1.83
)
Diluted
$
(0.97
)
 
 
 
$
(2.55
)
 
$
(1.83
)
 
 
 
 
 
 
 
 
Weighted average shares used to compute net loss per share:
 
 
 
 
 
 
 
Basic
82,191

 
 
 
82,191

 
78,463

Diluted
82,191

 
 
 
82,191

 
78,463









9

tableauheaderba16.jpg



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)
 
September 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
$
639,254

 
$

 
$
639,254

 
$
627,878

Short-term investments
317,505

 

 
317,505

 
226,787

Accounts receivable, net
187,424

 

 
187,424

 
203,366

Prepaid expenses and other current assets
136,828

 
(103,176
)
 
33,652

 
30,514

Income taxes receivable
1,363

 

 
1,363

 
673

Total current assets
1,282,374

 
(103,176
)
 
1,179,198

 
1,089,218

Long-term investments
63,551

 

 
63,551

 
148,364

Property and equipment, net
91,265

 

 
91,265

 
106,753

Goodwill
42,530

 

 
42,530

 
35,083

Deferred income taxes
4,007

 
1,485

 
5,492

 
5,287

Other long-term assets
46,271

 
(29,940
)
 
16,331

 
14,090

Total assets
$
1,529,998

 
$
(131,631
)
 
$
1,398,367

 
$
1,398,795

Liabilities and stockholders' equity
 
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
 
 
Accounts payable
$
3,817

 
$

 
$
3,817

 
$
4,448

Accrued compensation and employee-related benefits
96,091

 

 
96,091

 
96,390

Other accrued liabilities
66,313

 

 
66,313

 
37,722

Income taxes payable
7,547

 
(4,381
)
 
3,166

 
4,743

Deferred revenue
328,187

 
154,435

 
482,622

 
419,426

Total current liabilities
501,955

 
150,054

 
652,009

 
562,729

Deferred revenue
15,851

 
12,693

 
28,544

 
28,058

Other long-term liabilities
52,447

 
(833
)
 
51,614

 
54,385

Total liabilities
570,253

 
161,914

 
732,167

 
645,172

Stockholders' equity
 
 
 
 
 
 
 
Common stock
8

 

 
8

 
8

Additional paid-in capital
1,290,077

 

 
1,290,077

 
1,168,563

Accumulated other comprehensive loss
(11,914
)
 
876

 
(11,038
)
 
(11,991
)
Accumulated deficit
(318,426
)
 
(294,421
)
 
(612,847
)
 
(402,957
)
Total stockholders' equity
959,745

 
(293,545
)
 
666,200

 
753,623

Total liabilities and stockholders' equity
$
1,529,998

 
$
(131,631
)
 
$
1,398,367

 
$
1,398,795






10

tableauheaderba16.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)

Nine Months Ended September 30,

2018

2017

As Reported
(ASC 606)
 
Impacts from Adoption
 
Without Adoption
(ASC 605)
 
As Reported
(ASC 605)
Operating activities
 
 
 
 
 
 
 
Net loss
$
(79,875
)
 
$
(130,015
)
 
$
(209,890
)
 
$
(143,722
)
Adjustments to reconcile net loss to net cash provided by operating activities
 
 
 
 
 
 
 
Depreciation and amortization expense
27,783

 

 
27,783

 
34,174

Amortization (accretion) on investments, net
(32
)
 

 
(32
)
 
162

Stock-based compensation expense
176,021

 

 
176,021

 
155,623

Deferred income taxes
(3,810
)
 
3,673

 
(137
)
 
(226
)
Changes in operating assets and liabilities
 
 

 
 
 
 
Accounts receivable, net
14,232

 

 
14,232

 
80,030

Prepaid expenses and other assets
(71,671
)
 
68,002

 
(3,669
)
 
(138
)
Income taxes receivable
(728
)
 

 
(728
)
 
(297
)
Deferred revenue
4,666

 
62,974

 
67,640

 
45,109

Accounts payable and accrued liabilities
38,477

 

 
38,477

 
9,452

Income taxes payable
2,866

 
(4,381
)
 
(1,515
)
 
26

Net cash provided by operating activities
107,929

 
253

 
108,182

 
180,193

Investing activities
 
 
 
 
 
 
 
Purchases of property and equipment
(13,983
)
 

 
(13,983
)
 
(43,179
)
Business combination, net of cash acquired
(10,947
)
 

 
(10,947
)
 
(23,966
)
Purchases of investments
(206,454
)
 

 
(206,454
)
 
(198,144
)
Maturities of investments
199,885

 

 
199,885

 

Sales of investments
99

 

 
99

 

Net cash used in investing activities
(31,400
)
 

 
(31,400
)
 
(265,289
)
Financing activities
 
 
 
 
 
 
 
Proceeds from issuance of common stock
26,864

 

 
26,864

 
24,305

Repurchases of common stock
(90,019
)
 

 
(90,019
)
 
(59,986
)
Net cash used in financing activities
(63,155
)
 

 
(63,155
)
 
(35,681
)
Effect of exchange rate changes on cash and cash equivalents
(1,998
)
 
(253
)
 
(2,251
)
 
3,005

Net increase (decrease) in cash and cash equivalents
11,376

 

 
11,376

 
(117,772
)
Cash and cash equivalents
 
 
 
 
 
 
 
Beginning of period
627,878

 

 
627,878

 
908,717

End of period
$
639,254

 
$

 
$
639,254

 
$
790,945


11

tableauheaderba16.jpg



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 September 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
$
255,801


$
(51,016
)

$
204,785


$
184,988

Excluding: Stock-based compensation expense attributable to cost of revenues
3,488




3,488


2,885

Excluding: Amortization of acquired intangible assets
516




516


264

Non-GAAP gross profit
$
259,805


$
(51,016
)

$
208,789


$
188,137









Reconciliation of gross margin to non-GAAP gross margin:







Gross margin
88.0
 %




85.5
 %

86.1
 %
Excluding: Stock-based compensation expense attributable to cost of revenues
1.2
 %



1.5
 %

1.3
 %
Excluding: Amortization of acquired intangible assets
0.2
 %




0.2
 %

0.1
 %
Non-GAAP gross margin
89.4
 %



87.1
 %

87.5
 %
 
 
 
 
 
 
 
 
Reconciliation of operating loss to non-GAAP operating income (loss):







Operating loss
$
(15,226
)

$
(58,844
)

$
(74,070
)

$
(49,045
)
Excluding: Stock-based compensation expense
61,946




61,946


54,314

Excluding: Amortization of acquired intangible assets
516




516


264

Non-GAAP operating income (loss)
$
47,236


$
(58,844
)

$
(11,608
)

$
5,533









Reconciliation of operating margin to non-GAAP operating margin:







Operating margin
(5.2
)%




(30.9
)%

(22.8
)%
Excluding: Stock-based compensation expense
21.3
 %



25.9
 %

25.3
 %
Excluding: Amortization of acquired intangible assets
0.2
 %




0.2
 %

0.1
 %
Non-GAAP operating margin
16.3
 %



(4.8
)%

2.6
 %

12

tableauheaderba16.jpg



 
Three Months Ended September 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
$
(21,337
)
 
$
(49,960
)
 
$
(71,297
)
 
$
(46,553
)
Excluding: Stock-based compensation expense
61,946

 

 
61,946

 
54,314

Excluding: Amortization of acquired intangible assets
516

 

 
516

 
264

Income tax adjustments
168

 
2,911

 
3,079

 
(1,578
)
Non-GAAP net income (loss)
$
41,293

 
$
(47,049
)
 
$
(5,756
)
 
$
6,447

 
 
 
 
 
 
 
 
Weighted average shares used to compute non-GAAP basic net income (loss) per share
83,264

 
 
 
83,264

 
79,440

Effect of potentially dilutive shares: stock awards
4,376

 
 
 

 
4,398

Weighted average shares used to compute non-GAAP diluted net income (loss) per share
87,640

 
 
 
83,264

 
83,838

 
 
 
 
 
 
 
 
Non-GAAP net income (loss) per share:
 
 
 
 
 
 
 
Basic
$
0.50

 
 
 
$
(0.07
)
 
$
0.08

Diluted
$
0.47

 
 
 
$
(0.07
)
 
$
0.08


13

tableauheaderba16.jpg



 
Nine Months Ended September 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
$
716,647

 
$
(111,926
)
 
$
604,721

 
$
544,454

Excluding: Stock-based compensation expense attributable to cost of revenues
9,774

 

 
9,774

 
8,252

Excluding: Amortization of acquired intangible assets
1,269

 

 
1,269

 
454

Non-GAAP gross profit
$
727,690

 
$
(111,926
)
 
$
615,764

 
$
553,160

 
 
 
 
 
 
 
 
Reconciliation of gross margin to non-GAAP gross margin:
 
 
 
 
 
 
 
Gross margin
87.5
 %
 
 
 
85.5
 %
 
86.7
 %
Excluding: Stock-based compensation expense attributable to cost of revenues
1.2
 %
 
 
 
1.4
 %
 
1.3
 %
Excluding: Amortization of acquired intangible assets
0.2
 %
 
 
 
0.2
 %
 
0.1
 %
Non-GAAP gross margin
88.8
 %
 
 
 
87.1
 %
 
88.1
 %
 
 
 
 
 
 
 
 
Reconciliation of operating loss to non-GAAP operating income (loss):
 
 
 
 
 
 
 
Operating loss
$
(86,570
)
 
$
(130,713
)
 
$
(217,283
)
 
$
(147,446
)
Excluding: Stock-based compensation expense
176,021

 

 
176,021

 
155,623

Excluding: Amortization of acquired intangible assets
1,269

 

 
1,269

 
454

Non-GAAP operating income (loss)
$
90,720

 
$
(130,713
)
 
$
(39,993
)
 
$
8,631

 
 
 
 
 
 
 
 
Reconciliation of operating margin to non-GAAP operating margin:
 
 
 
 
 
 
 
Operating margin
(10.6
)%
 
 
 
(30.7
)%
 
(23.5
)%
Excluding: Stock-based compensation expense
21.5
 %
 
 
 
24.9
 %
 
24.8
 %
Excluding: Amortization of acquired intangible assets
0.2
 %
 
 
 
0.2
 %
 
0.1
 %
Non-GAAP operating margin
11.1
 %
 
 
 
(5.7
)%
 
1.4
 %


14

tableauheaderba16.jpg




 
Nine Months Ended September 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
$
(79,875
)
 
$
(130,015
)
 
$
(209,890
)
 
$
(143,722
)
Excluding: Stock-based compensation expense
176,021

 

 
176,021

 
155,623

Excluding: Amortization of acquired intangible assets
1,269

 

 
1,269

 
454

Income tax adjustments
(14,672
)
 
25,534

 
10,862

 
(62
)
Non-GAAP net income (loss)
$
82,743

 
$
(104,481
)
 
$
(21,738
)
 
$
12,293

 
 
 
 
 
 
 
 
Weighted average shares used to compute non-GAAP basic net income (loss) per share
82,191

 
 
 
82,191

 
78,463

Effect of potentially dilutive shares: stock awards
4,092

 
 
 

 
3,981

Weighted average shares used to compute non-GAAP diluted net income (loss) per share
86,283

 
 
 
82,191

 
82,444

 
 
 
 
 
 
 
 
Non-GAAP net income (loss) per share:
 
 
 
 
 
 
 
Basic
$
1.01

 
 
 
$
(0.26
)
 
$
0.16

Diluted
$
0.96

 
 
 
$
(0.26
)
 
$
0.15

 
Nine Months Ended September 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
$
107,929

 
$
253

 
$
108,182

 
$
180,193

Less: Purchases of property and equipment
(13,983
)
 

 
(13,983
)
 
(43,179
)
Free cash flow
$
93,946

 
$
253

 
$
94,199

 
$
137,014

Net cash used in investing activities
$
(31,400
)
 
$

 
$
(31,400
)
 
$
(265,289
)
Net cash used in financing activities
$
(63,155
)
 
$

 
$
(63,155
)
 
$
(35,681
)
Effect of exchange rate changes on cash and cash equivalents
$
(1,998
)
 
$
(253
)
 
$
(2,251
)
 
$
3,005




15

tableauheaderba16.jpg



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
Q3`18
 
(Dollars in thousands)
 
(Unaudited)
Customer metrics
 
 
 
 
 
 
 
 
Customer accounts (1)
57,000+

61,000+

65,000+

70,000+

70,000+

74,000+

78,000+

82,000+

Customer accounts added in period (1)
3,300+

4,000+

4,100+

4,700+

16,100+

3,900+

4,100+

3,800+

Deals greater than $100,000 (2)
294

372

337

590

1,593

301

436

378

Customer accounts that purchased greater than $1 million during the quarter (1,2)
10

15

13

27



13

22

23

 
 
 
 
 
 
 
 


Annual recurring revenue metrics
 
 
 
 
 
 
 


Total annual recurring revenue (3)
$
439,001

$
483,578

$
526,211

$
596,244

$
596,244

$
641,946

$
697,700

$
762,641

Subscription annual recurring revenue (4)
$
71,950

$
103,538

$
139,210

$
195,488

$
195,488

$
237,533

$
291,292

$
362,360

 
 
 
 
 
 
 
 


Geographic revenue metrics - ASC 606
 
 
 
 
 
 
 


United States and Canada





$
167,799

$
196,992

$
207,166

International





$
78,408

$
85,297

$
83,414

United States and Canada as % of total revenue





68
%
70
%
71
%
International as % of total revenue





32
%
30
%
29
%
 
 
 
 
 
 
 
 


Geographic revenue metrics - ASC 605
 
 
 
 
 
 
 


United States and Canada
$
141,496

$
146,102

$
150,059

$
168,116

$
605,773

$
154,443

$
169,234

$
169,552

International
$
58,410

$
66,778

$
64,858

$
81,240

$
271,286

$
69,601

$
74,332

$
70,039

United States and Canada as % of total revenue
71
%
69
%
70
%
67
%
69
%
69
%
69
%
71
%
International as % of total revenue
29
%
31
%
30
%
33
%
31
%
31
%
31
%
29
%
 
 
 
 
 
 
 
 


Additional revenue metrics - ASC 606
 
 
 
 
 
 
 


Remaining performance obligations (5)




$
99,580

$
114,523

$
138,498

$
191,942

 
 
 
 
 
 
 
 


Additional revenue metrics - ASC 605
 
 
 
 
 
 
 


Ratable revenue as % of total revenue (6)
54
%
56
%
63
%
60
%
59
%
72
%
72
%
80
%
Ratable license revenue as % of total license revenue (7)
19
%
23
%
34
%
34
%
28
%
54
%
56
%
72
%
Services revenues as a % of maintenance and services revenue (8)
12
%
13
%
12
%
13
%
13
%
11
%
12
%
12
%
 
 
 
 
 
 
 
 


Bookings metrics - ASC 605
 
 
 
 
 
 
 


Ratable bookings as % of total bookings (2)
55
%
61
%
65
%
70
%
64
%
72
%
76
%
83
%
Ratable license bookings as % of total license bookings(2)
26
%
37
%
45
%
51
%
41
%
59
%
67
%
81
%
 
 
 
 
 
 
 
 


Other metrics
 
 
 
 
 
 
 


Worldwide employees
3,193

3,305

3,418

3,489

3,489

3,663

3,896

4,101


16

tableauheaderba16.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.



17
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