Why Tableau Software, Inc. Stock Rose 12.5% in August

Markets Motley Fool

What happened

Continue Reading Below

Shares of data visualization company Tableau Software (NYSE: DATA) rose a nice 12.5% during August, according to data provided by S&P Global Market Intelligence. The stock's outperformance was driven by Tableau's impressive second-quarter results released Aug. 2.

For its second quarter, Tableau's revenue and adjusted EPS exceeded analysts' consensus estimate for the quarter. Revenue for the quarter was $212.9 million, up 7% year over year. And Tableau's non-GAAP net income per share was up sharply, from $0 in the year-ago quarter to $0.10 in the second quarter of 2017.

So what

The company's transition to a subscription model is paying off.

Tableau CEO Adam Selipsky noted in the company's second-quarter earnings release that accelerated adoption of Tableau's new subscription offerings during the quarter happened "even faster than we had projected."

Continue Reading Below

Total annual subscription recurring revenue during the quarter was $103.5 million, up 175% year over year.

Now what

Looking ahead, Tableau expects more growth. For its third quarter of 2017, management said it expects revenue between $213 million and $223 million, up 6% year over year based on the midpoint of this guidance range. For the full year, management updated its guidance range for revenue to be between $865 million and $890 million, representing 6% year-over year-growth based on the range's midpoint. 

10 stocks we like better than Tableau Software
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Tableau Software wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of September 5, 2017

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.