Tableau Needs A PaaS Strategy

According to a Market Reports report published earlier this year, the global data visualization market is estimated to grow 9.5% annually to $7.76 billion by 2023 from $4.51 billion in 2017. Tableau (NYSE: DATA) is a leading player in the market, but the company is leaving a lot of money on the table by not pursuing a developer ecosystem strategy more aggressively.

Tableau’s Financials

Tableau’s revenues grew 15% over the year to $282.5 million, missing the Street’s forecast of $286.8 million. GAAP net loss was $88.9 million, or $1.04 per diluted common share, compared to a GAAP net loss of $46.5 million, or $0.57 per diluted common share a year ago. On an adjusted basis, net income was $2 million, or $0.02 per share, compared to a $5.8 million, or $0.07 per share a year ago. The market had forecast a loss of $0.01 per share for the quarter.

By segment, license revenues grew 8% over the year to $117.55 million and maintenance and services revenues grew 20% to $164.91 million for the quarter.

During the quarter, Tableau’s total annual recurring revenue grew 41% to $902 million, compared with $641.9 million a year ago. Subscription annual recurring revenue increased 115% to $510.1 million.

For the current quarter, Tableau forecast revenues of $313-$328 million with an EPS of $0.22-$0.33. The market was looking for revenues of $324.9 million and an EPS of $0.32 for the quarter. Tableau forecast revenues of $1.34-$1.40 billion for the year with an EPS of $1.58-$1.85. The Street had also forecast revenues of $1.36 billion for the year with an EPS of $1.72.

Tableau’s Product Upgrades

Tableau continues to drive growth to its platform through several product upgrades and innovations. The two big features released recently were the release of its natural language capabilities Ask Data and its new data management add-on Tableau Prep Conductor. Ask Data leverages natural language processing capabilities to allow users to ask data questions in plain language and instantly get a visual response in Tableau. This new capability will simplify the ability to interpret data for users irrespective of their skill set. The service will allow for follow-on questions as well so that the user can dig deeper into the problem and share the insights with their organization to drive increased business efficiency. Ask Data is another way in which Tableau is making data analytics more intuitive, visual, and simple.

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