Tableau Software Inc. DATAis slated to release first-quarter 2018 results on May 2. The company beat the Zacks Consensus Estimate in three of the trailing four quarters, delivering an average positive surprise of 164.72%.
In the fourth quarter, the company posted non-GAAP earnings of 12 cents per share, which beat the Zacks Consensus Estimate of 3 cents but declined 53.
Revenues of $249.37 million surpassed the Zacks Consensus Estimate of $241 million but declined 1% from the year-ago quarter.
For first-quarter 2018, management expects revenues in the range of $212–$222 million, representing year-over-year growth of 9%.
Let’s see how things are shaping up prior to this announcement.
Factors to Consider
Tableau Software benefits from increasing demand for business analytics tools in the global market. Growth in Asia Pacific and EMEA regions is boosting the top line. The company added 4,700 new customers in the fourth quarter.
The company’s transition to a subscription-based model is a positive. Robust customer growth in the company’s commercial and international businesses is driving results. The company sealed a deal with one of the largest financial services firms in the United States in the last reported quarter.
Tableau Software has undertaken a number of initiatives to boost sales productivity and align marketing efforts to drive growth. The company’s recent partnership with the likes Deloitte shows growing adoption of Tableau's advanced analytics offerings.
Moreover, the launch of the 10.5 version of its flagship software in the quarter will boost demand.
However, the model transition will remain an overhang on the company’s billings and license bookings. Saturation in the company’s domestic market (United States and Canada), which accounts for the majority of its revenues is also a concern.
Also, intensifying competition from Microsoft’s Power BI and other new as well as established players is a major concern for the company. Rise in expenses due to increase in headcount also puts margins under pressure.