Tableau Software, Inc. revenue growth accelerated from 6.1% in 2017 to 31.7% in 2018
02/05/2019 • About Tableau Software, Inc. (
$DATA) • By InTwits
Tableau Software, Inc. reported 2018 financial results today. Here are the key drivers of the company's long term financial model:
- Tableau Software, Inc. is a fast growth stock: 2018 revenue growth was 31.7%, 5 year revenue CAGR was 37.8% at 2018 ROIC -10.1%
- The company operates at negative EBITDA Margin: -4.7%
- Tableau Software, Inc. motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2014-2018 was 19.9% while average EBITDA Margin was -7.8% for the sames years. In 2018 SBC/Revenue was even higher: 20.7%
- Tableau Software, Inc. has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.4%. At the same time it's a lot of higher than industry average of 3.1%.
- CAPEX is quite volatile: $20m in 2018, $62m in 2017, $61m in 2016, $45m in 2015, $37m in 2014
- The company has unprofitable business model: ROIC is -10.1%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.0x while industry average is -1.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Tableau Software, Inc.'s Revenue surged on 31.7%. Revenue growth showed acceleration in 18Q4 - it increased 34.9% YoY. During 2014-2018 Revenue growth bottomed in 2017 at 6.1%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 7.4 pp from 23.1% to 30.6% in 2018. During the last 5 years EBITDA Margin bottomed in 2017 at -16.7%.
Gross Margin increased slightly on 0.60 pp from 87.1% to 87.7% in 2018. During 2014-2018 Gross Margin bottomed in 2017 at 87.1%. SG&A as a % of Revenue decreased on 8.4 pp from 70.7% to 62.3% in 2018. During the last 5 years SG&A as a % of Revenue topped in 2017 at 70.7%. Stock Based Compensation (SBC) as a % of Revenue decreased on 3.3 pp from 24.0% to 20.7% in 2018. During the last 5 years SBC as a % of Revenue topped in 2017 at 24.0%.
Net Income margin jumped on 14.5 pp from -21.2% to -6.7% in 2018. During the last 5 years Net Income margin bottomed in 2017 at -21.2%.
Investments (CAPEX, working capital and M&A)
Tableau Software, Inc.'s CAPEX/Revenue was 1.8% in 2018. CAPEX/Revenue decreased on 5.1 pp from 6.9% in 2015 to 1.8% in 2018. It's average level of CAPEX/Revenue for the last three years was 5.4%.
Accounts receivable as a % of Revenue decreased on 2.8 pp from 23.2% to 20.4% in 2018. Accounts payable as a % of Revenue increased slightly on 0.75 pp from 3.9% to 4.7% in 2018.
Tableau Software, Inc. has spent
$11m on M&A in 2018 which accounts for 0.95% of revenue.
Return on investment
The company operates at negative ROIC (-10.1%) and ROE (-8.7%). ROIC jumped on 14.4 pp from -24.5% to -10.1% in 2018. ROE jumped on 15.3 pp from -24.0% to -8.7% in 2018. During the last 5 years ROIC bottomed in 2017 at -24.5%. During the last 5 years ROE bottomed in 2017 at -24.0%.
Leverage (Debt)
The company has no debt. Cash increased on 4.0%.
Management team
Tableau Software, Inc.'s CEO is Adam Selipsky. Adam Selipsky is a founder and has 2 years tenure with the company. CEO total compensation was
$8,787,603 in 2018 which included
$530,000 salary. The company's CFO is Damon Fletcher. Damon Fletcher has 1 year tenure at the company.
The company has 1.2% shares owned by insiders. Insider ownership didn't change in 2018.
The company has 4,181 employees. The number of employees surged on 29.7%. Average revenue per employee in 2018 was
$276,334 and it increased slightly on 1.5%.
Financial and operational results
FY ended 12/31/2018
Tableau Software, Inc. ($DATA) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 413 | 654 | 827 | 877 | 1,155 | 31.7% |
| Gross Profit | 376 | 580 | 728 | 764 | 1,013 | 32.6% |
| SG&A | 258 | 428 | 565 | 620 | 720 | 16.0% |
| EBITDA | 20 | -28 | -97 | -146 | -54 | |
| EBIT | 6 | -52 | -140 | -191 | -90 | |
| Tax | 1 | 33 | 7 | 7 | 5 | -24.7% |
| Net Income | 6 | -84 | -144 | -186 | -77 | |
| Stock Based Compensation | 33 | 114 | 186 | 210 | 239 | 13.5% |
Balance Sheet
|
|---|
| Cash | 681 | 796 | 909 | 628 | 653 | 4.0% |
| Accounts Receivable | 100 | 132 | 207 | 203 | 236 | 16.1% |
| Accounts Payable | 2 | 1 | 18 | 4 | 7 | 49.6% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 37 | 45 | 61 | 62 | 20 | -66.9% |
| Acquisitions | | | | 24 | 11 | -54.3% |
Ratios
|
|---|
| Revenue growth | 77.5% | 58.4% | 26.5% | 6.1% | 31.7% | |
| EBITDA growth | 88.6% | -243.0% | 240.4% | 51.4% | -63.1% | |
|
|---|
| Gross Margin | 91.0% | 88.7% | 88.0% | 87.1% | 87.7% | 0.6% |
| EBITDA Margin | 4.8% | -4.3% | -11.7% | -16.7% | -4.7% | 12.0% |
| EBIT Margin | 1.5% | -8.0% | -16.9% | -21.8% | -7.8% | 14.0% |
| SG&A, % of revenue | 62.6% | 65.5% | 68.3% | 70.7% | 62.3% | -8.4% |
| SBC, % of revenue | 8.0% | 17.4% | 22.5% | 24.0% | 20.7% | -3.3% |
| Net Income Margin | 1.4% | -12.8% | -17.5% | -21.2% | -6.7% | 14.5% |
| CAPEX, % of revenue | 8.9% | 6.9% | 7.3% | 7.0% | 1.8% | -5.3% |
|
|---|
| ROIC | 1.4% | -7.4% | -18.2% | -24.5% | -10.1% | 14.4% |
| ROE | 1.3% | -11.9% | -18.9% | -24.0% | -8.7% | 15.3% |
| Net Debt/EBITDA | -34.3x | | | | |
People
|
|---|
| Insider ownership | 1.2% | 1.2% | 1.2% | 1.2% | 1.2% | 0.0% |
| Employees | 1,947 | 3,008 | 3,223 | 3,223 | 4,181 | 29.7% |
| Revenue/Employee, th. $ | 212 | 217 | 257 | 272 | 276 | 1.5% |
Tableau Software, Inc. ($DATA) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 246 | 282 | 291 | 336 | | 23.2% | 32.6% | 35.2% | 34.9% |
| EBITDA | -41 | -12 | -6 | 5 | | | | | |
| Net Income | -46 | -12 | -21 | 3 | | | | | |
Balance Sheet
|
|---|
| Cash | 624 | 611 | 639 | 653 | | -34.6% | -38.5% | -19.2% | 4.0% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | | |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | | |
Ratios
|
|---|
| Gross Margin | 86.8% | 87.5% | 88.0% | 88.0% | | 0.2% | 0.0% | 2.0% | 0.2% |
| EBITDA Margin | -16.5% | -4.1% | -2.2% | 1.4% | | 3.5% | 12.1% | 15.8% | 14.6% |
| Net Income Margin | -18.9% | -4.3% | -7.3% | 0.8% | | 8.5% | 15.7% | 14.3% | 17.6% |
Peers in Systems Software
Below we provide Tableau Software, Inc. benchmarking against other companies in Systems Software industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Advantego Corp ($ADGO) | | | | | 973.8% |
| Solbright Group Inc ($SBRT) | | | 286.4% | 25.4% | 414.0% |
| Duos Technologies Group Inc ($DUOT) | | 61.0% | -9.8% | -36.4% | 210.2% |
| Dell Technologies Inc. ($DVMT) | | | | | 145.7% |
| Finjan Holdings, Inc. ($FNJN) | | -6.2% | 292.3% | 174.6% | 63.0% |
| |
|---|
| Median (48 companies) | | 18.2% | 14.6% | 16.6% | 19.0% |
|---|
| Tableau Software, Inc. ($DATA) | | 58.4% | 26.5% | 6.1% | 31.7% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| StrikeForce Technologies Inc ($SFOR) | 97.0% | 96.9% | 98.3% | 95.4% | 94.0% |
| Varonis Systems, Inc. ($VRNS) | 90.2% | 90.6% | 90.5% | 90.4% | 89.8% |
| Check Point Software Technologies Ltd. ($CHKP) | 88.2% | 88.5% | 88.5% | 88.6% | 89.6% |
| Attunity Ltd. ($ATTU) | 90.7% | 84.9% | 83.9% | 84.1% | 87.5% |
| Dell Technologies Inc. ($DVMT) | | | | 87.6% | 87.5% |
| |
|---|
| Median (53 companies) | 76.1% | 74.5% | 73.1% | 73.9% | 73.5% |
|---|
| Tableau Software, Inc. ($DATA) | 91.0% | 88.7% | 88.0% | 87.1% | 87.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Check Point Software Technologies Ltd. ($CHKP) | 54.3% | 52.4% | 49.8% | 50.7% | 48.8% |
| SolarWinds Corporation ($SWI) | | | -8.0% | 44.0% | 44.8% |
| Finjan Holdings, Inc. ($FNJN) | -192.1% | -295.2% | 2.2% | 30.2% | 42.0% |
| Oracle Corporation ($ORCL) | 46.2% | 43.8% | 40.8% | 40.2% | 40.8% |
| CA Inc. ($CA) | 33.9% | 36.7% | 37.2% | 36.1% | 35.3% |
| |
|---|
| Median (47 companies) | -2.4% | -6.6% | -8.0% | -3.6% | -3.9% |
|---|
| Tableau Software, Inc. ($DATA) | 4.8% | -4.3% | -11.7% | -16.7% | -4.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| The Rubicon Project, Inc. ($RUBI) | 15.6% | 11.4% | 12.0% | 26.0% | 16.0% |
| CYREN Ltd. ($CYRN) | 2.4% | 4.4% | 3.2% | 5.8% | 9.2% |
| ServiceNow, Inc. ($NOW) | 8.0% | 8.7% | 7.6% | 7.8% | 8.6% |
| Qualys, Inc. ($QLYS) | 10.4% | 12.2% | 11.7% | 16.4% | 8.2% |
| Zscaler, Inc. ($ZS) | | 12.5% | 7.8% | 6.5% | 8.0% |
| |
|---|
| Median (48 companies) | 2.7% | 2.1% | 2.0% | 2.2% | 2.6% |
|---|
| Tableau Software, Inc. ($DATA) | 8.9% | 6.9% | 7.3% | 7.0% | 1.8% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Finjan Holdings, Inc. ($FNJN) | -42.6% | -113.5% | 3.4% | 46.6% | 64.1% |
| Fortinet, Inc. ($FTNT) | 9.2% | 2.1% | 5.3% | 15.0% | 28.0% |
| Check Point Software Technologies Ltd. ($CHKP) | 22.2% | 23.7% | 24.7% | 26.8% | 25.5% |
| MAM Software Group, Inc. ($MAMS) | 13.3% | 19.3% | 21.1% | 24.2% | 25.2% |
| Red Hat, Inc. ($RHT) | 15.1% | 14.1% | 14.2% | 16.4% | 22.4% |
| |
|---|
| Median (56 companies) | 0.0% | 0.0% | 0.0% | -2.7% | -0.9% |
|---|
| Tableau Software, Inc. ($DATA) | 1.4% | -7.4% | -18.2% | -24.5% | -10.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| NXT-ID Inc. ($NXTD) | | | | | 9.7x |
| Symantec Corporation ($SYMC) | -3.2x | -1.5x | -5.0x | 10.0x | 4.7x |
| SolarWinds Corporation ($SWI) | | | | 6.2x | 4.1x |
| Oracle Corporation ($ORCL) | 0.4x | 1.2x | 1.6x | 2.4x | 2.4x |
| ServiceNow, Inc. ($NOW) | | | | 9.0x | 0.9x |
| |
|---|
| Median (23 companies) | -2.1x | -1.4x | -1.2x | -0.6x | -0.4x |
|---|
