Tableau Software Inc Class A (NYSE: DATA) stock lost over 3% in the pre-market session on Feb 6th, 2019 (Source: Google finance) after the company posted mixed results for the fourth quarter of FY 18. The stock fell slightly in after-hours trading due to it’s changing the way it reports revenue under its subscription business model. The company is switching to a new standard called ASC 606, which recognizes a greater percentage of revenue from contracts up front. Previously, it reported revenue under the older ASC 605 standard. ASC 605 GAAP net loss for the fourth quarter of 2018 was $67.3 million compared to a GAAP net loss of $41.8 million for the fourth quarter of 2017.
DATA in the fourth quarter of FY 18 has reported the adjusted loss per share of 3 cents, beating the analysts’ estimates for the adjusted loss per share of 8 cents. The company had reported the adjusted revenue growth of 11 percent to $275.7 million in the fourth quarter of FY 18, missing the analysts’ estimates for revenue of $276.4 million. Total annual recurring revenue increased 41% to $840.9 million as of December 31, 2018, up from $596.2 million as of December 31, 2017. Subscription annual recurring revenue increased 127% to $443.2 million as of December 31, 2018, up from $195.5 million as of December 31, 2017.
For the coming year, Tableau’s goals include integrating natural language processing features into its platform and extending its subscription offerings. The company also wants to expand into new international markets.
Tableau is expecting revenue to be in the range of $278 million to $298 million in the first quarter under the new ASC 606 rules. Earnings for the first quarter are projected to fall somewhere between a loss of 9 cents per share and a profit of a penny per share.
During the fourth quarter ended December 31, 2018, Tableau repurchased 259,128 shares of its outstanding Class A common stock for a total of $30.0 million. As of December 31, 2018, Tableau was authorized to repurchase a remaining $280.0 million of its Class A common stock under the previously authorized repurchase program.
Meanwhile, DATA has announced a new Tableau embedded solution from Broadridge Financial Solutions, offering their investment management clients enhanced analytics capabilities. During the last few months, the company continued to grow our international footprint including expansion into Sweden, the Netherlands and Hong Kong.