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.
Continue Reading Below
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.
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."
Total annual subscription recurring revenue during the quarter was $103.5 million, up 175% year over year.
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 SoftwareWhen 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