Detail of data visual created in Tableau's cloud software. Image source: www.tableau.com
What: Tableau Software stock appreciated 15.6% in November, according toS&P Capital IQ data.
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So what:The data analytics provider received a boost on Nov. 5, after reporting third-quarter 2015 earnings that showed renewed strength in its business model. Tableau disclosed quarterly revenue of $170.8 million, a 64% increase. This improvement was powered by international expansion, which is quickly becoming one of Tableau's more visible advantages. Global revenue climbed 75% to $42.2 million.
Helping to achieve these numbers, Tableau added 3,100 customer accounts during the quarter. If that sounds like an extremely large quantity of customers to add to your rolls during a three-month period, that's because it is. According to Tableau CEO Christian Chabot, the company has acquired 8,700 customers so far this year, bringing its worldwide total to more than 35,000. Chabot also pointed out during the company's earnings conference call that Tableau closed 296 sales orders in excess of $100,000 in Q3 2015.
Earlier in the year, investors worried that Tableau might cede some ground to its rival Qlik Technologies, in the corporate analytics market, as some analysts had posited that Qlik's suite of products, while more steeply priced, potentially offer a higher return on investment to corporate customers.
These fears seem to have been allayed, as the strength of Tableau's "land and expand" sales model has become increasingly apparent during 2015. The sheer numbers of individual users Tableau is able to sign up appears to consistently spur wider adoption within departments and corporate business divisions.
The popularity of Tableau's cloud and desktop software among single users and small teams is evidenced by the company's extremely popular user conferences. This year, Tableau's annual customer conference, held in Las Vegas, nearly doubled in size, from 5,500 to 10,000 attendees. More than 32,000 international registrants in 100 countries also attended Tableau's concurrent virtual conference. The thousands of Tableau advocates in organizations worldwide bodes well for future revenue opportunities.
Now what:With the release of Tableau 9.1, the software innovator seeks to begin another cycle of sales expansion. Tableau's new version includes improved authentication options for enterprise users, as well as an enhanced mobile experience, which represents a growth area for data analytics companies. Shareholders are already looking ahead to next quarter's results, to gauge the effect of the new software release on earnings, and also to see if Tableau's wide customer base will continue to scale up the company's top line.
The article Why Tableau Software, Inc. Stock Rose 16% in November originally appeared on Fool.com.
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