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

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What happened

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.

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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."

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.

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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.