The last time I looked at Tableau Software (DATA) I was a big fan.
I thought the company had more growth ahead. While the stock has been extremely volatile, I think Tableau is a game changer in the business intelligence market.
The company has seven other competitors, but I think Tableau is growing faster and is probably the best investment in the group, despite the stock being outrageously expensive.
The business intelligence market is estimated to be a $15 billion market worldwide. The industry is growing alongside the cloud business, since large enterprises want to visually analyze the data they stored in the cloud.
Ecommerce companies want to analyze live web data as it happens so they can jump on trends. With software from Tableau, it's simple to hook up to the cloud and deploy the software across your entire enterprise. Tableau's friendly interface allows any employee to create insights into that data with just a few clicks.
After the close, the company reported fourth quarter fiscal 2014 earnings of $0.42. Revenue rose 75% to $142.9 million. Analysts had been modeling $122.6 million and $0.11 per share. The company added 2,600 new customers. For the year, Tableau reported total revenue of $412.6 million, up 78% and added more than 9,100 customers.
Management told investors to expect revenue of $110 million to $115 million for the first quarter. Analysts had expected revenues of $107 million. While some people may be disappointed in the guidance, I'm not terribly concerned.
Because of Tableau's ease of use and impressive interface the company has become the leader in the industry. I think they can steal market share from competitor Qlik Technologies (QLIK). Qlik has over 33,000 customers and it's visual analytic software is nowhere as slick as Tableau.
I think there is a lot of growth ahead for Tableau. Only 5% of Tableau's Fortune 500 customers are spending more than $1 million on visual analytics.
Europe has been a focus for Tableau. Co-founder Christian Chanot recently moved to London to spearhead the drive into Europe. Europe accounts for about 30% of the enterprise software market and its important to grow that side of the business.
Obviously, Tableau is a volatile stock with high expectations and is atrociously expensive (16x sales.) Any misstep will cause a big selloff in the stock. In after market trading the stock rose almost 15%. While I like the company, I would look for a sell off to initiate a position in the shares.