License Growth Drives Tableau Software (DATA) to 3Q Revenue Beat; Wedbush Reiterates Outperform
Wedbush reiterated an Outperform rating on Tableau Software (NYSE: DATA), and raised the price target to $116.00 (from $104.00), following the company's 3Q earnings report. Revenue of $171M was $13M ahead of consensus, driven by license growth of 57% Y/Y.
Analyst Steve Koenig commented, "Revenue of $171M (+64% Y/Y) was $13M ahead of consensus, driven by license growth of 57% Y/Y. We had estimated 52% license growth (with upside potential to 56%), ahead of consensus of 45%. DATA’s Y/Y growth rates were relatively consistent with 2Q, following rapid deceleration from 1Q. We believe DATA’s growth is slowing as the company expands from a larger base, but not nearly as rapidly as the 2Q results suggested. In 3Q, the company saw particular strength in large deals, with 12 customers spending over $1M in the quarter and 296 deals over $100K (+48% Y/Y). Also, international business (+75% Y/Y) continued to lead DATA’s overall growth. As usual, revenue outperformance fell to the bottom line."
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Shares of Tableau Software closed at $84.39 yesterday.