FBN lowers its price target on Outperform-rated Tableau Software (NYSE: DATA) from $65 down to $60 following mixed Q2 results from Tableau.

Analyst Shebly Seyrafi commented today: The company reported a mixed FQ2, with revenue above consensus and EPS below consensus, and it is guiding for FQ3 results to be below consensus. On the positive side, revenue was strong (both in the US, up 25% Y/Y, and internationally, up 55% Y/Y), customer growth (up 3,900 Q/Q, up from an increase of 3,500 Q/Q in FQ1) continues to be strong, large deal growth was strong (in FQ2 there were 332 deals over $100K, up 42% Y/Y and up 24% Q/Q, and there were 16 deals over $1M, since the company rolled out new pricing frameworks to the sales force earlier this year, thus allowing them more flexibility in closing deals), and sales productivity improved noticeably as more sales reps became ramped and average tenure continued to improve. Sales and marketing headcount of 1,440 grew by 33% Y/Y (down from 45-67% Y/Y growth over the prior five quarters), resulting in annualized revenue per sales & marketing employee (“sales productivity”) of $552K. This is flat Y/Y but is a notable improvement from declines of 9-10% Y/Y over the prior two quarters.

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