According to a recent market report, the global visual analytics market is expected to grow at a CAGR of 22% to reach $7.7 billion in 2023. Data analytics firm Tableau (NYSE: DATA) is a leading player in the industry. In its recent results, it beat estimates driven by a 46% growth in annual recurring revenues.

Tableau’s Financials

Tableau Software’s (NYSE: DATA) first quarter revenues grew 12% over the year to $224 million, ahead of the Street’s forecast of $217.46 million. GAAP net loss was $79 million. Non GAAP net loss per share was $0.19 share, missing analysts’ loss estimate of $0.18 per share.

By segment, License revenues grew 8.7% to $105.7 million and Maintenance and Services revenues grew 15.2% to $118.4 million. International revenues grew 19% to $69.6 million and accounted for a record 31% of the revenue driven by some significant EMEA deals.

During the quarter, Tableau added more than 3,900 new customer accounts, taking its total customers to over 74,000. It signed 301 sales orders greater than $100,000, up from 294 a year ago. It had 13 customers spending over $1 million in the quarter.

For the second quarter, Tableau forecast revenues of $230 million-$240 million, a growth of 10%. Non GAAP operating loss is expected to be $10-$17 million. Non GAAP loss per share is expected to be between $0.08 and $0.15. It expects to end the year 2018 with revenues of $950 million-$985 million and non GAAP loss per share in the range of $0.12 to $0.21.

Tableau’s New Offerings

During the quarter, Tableau introduced new subscription offerings to help organizations scale analytics. Tableau Creator, Explorer and Viewer subscriptions each provide tailored combinations of new and existing analytical capabilities that are designed for different user needs from sophisticated analysts to casual users.

As part of its strong focus on the enterprise, Tableau added a new product Tableau Prep to clean up and standardize data. Part of the new subscription offering Tableau Creator, Tableau Prep integrates directly into the Tableau analytical workflow and can be shared with Tableau Server or Tableau Online.

The company also overhauled its pricing structure. The new Tableau Creator subscription replaces the Tableau Desktop Professional Edition but is offered at the same price of $70 per user monthly. Explorer, which is similar to the earlier Tableau Server subscription, costs $35 per user monthly in on-premises deployments and $42 in hosted ones; Tableau Viewer costs $12 and $15, respectively.

The company also released Tableau 2018.1, which includes new web authoring capabilities that are available with the Tableau Creator subscription offering. The United Nations will now be using Tableau as its global visual analytics standard across the United Nations system.

Tableau adopted a new accounting standard ASC 606 under which total revenue was $246.2 million. Total annual recurring revenue was $641.9 million, up 46%. Subscription annual recurring revenue was $237.5 million, up 230%.

Based on the strong growth in recurring revenues, the company expects 64%-69% ratable mix of revenues in FY18, up from just 41% in FY17. This represents a significant change in its business model and analysts are pleased with the higher mix of recurring revenues that will provide more stability to its growth.

Its stock is trading at $91 with a market capitalization of $7.4 billion, close to its 52-week high of$97.09. It had fallen to a 52-week low of $57.25 in May last year.