Tom Walker, Chief Financial Officer May 25, 2017
The presentations today contain "forward-looking" statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information regarding the Company s strategic priorities and initiatives, possible or assumed strategy, potential growth opportunities, addressable markets, competitive position, industry environment and overall competition, existing and new customer growth and product adoption, including demand, adoption and deployment by enterprise and commercial customers, development and growth in partner ecosystem and international markets, sales and marketing strategy, the Company's ability to rapidly innovate, develop and release new products and features, the Company's further transition to subscription and term licensing, the expected financial performance of the Company, including near-term and long-term operating model, financial position, expected future revenue, ratable license bookings, annualized recurring revenue, projected costs, margins and cash flow. Forward looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements. We cannot guarantee that we will achieve the plans, intentions, or expectations disclosed in our forwardlooking statements, and you should not place undue reliance on our forward looking statements. Forward-looking statements represent our management s beliefs and assumptions only as of the date of these live presentations. If reviewed after this date, these presentations may not contain current or accurate information. We undertake no obligation, and do not intend, to update these forward looking statements, to review or confirm analysts expectations, or to provide interim reports or updates on the progress of the current financial quarter. For important risk factors that may cause actual results to differ from those contained in any forward-looking statements, please review our filings with the Securities and Exchange Commission (SEC), including our most recently filed Quarterly Report on Form 10-Q and Form 10-K and other reports and filings with the SEC. The information in these presentations on new products, features, or functionality is intended to outline our general product direction and should not be relied upon in making a purchasing decision. The information on new products, features, and functionality is for informational purposes only and shall not be incorporated into any contract. The information on new products, features, and functionality is not a commitment, promise, or legal obligation to deliver any material, code or functionality. The development, release, and timing of any features or functionality described for our products remains at our sole discretion. Non-GAAP Financial Measures: We will also discuss non-gaap financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. The Company encourages investors to carefully consider its results under GAAP, as well as its supplemental non-gaap information and the reconciliation between these presentations, to more fully understand its business. A reconciliation of historical GAAP and non-gaap financial measures is provided at http://investors.tableau.com. A reconciliation of forward-looking GAAP and non-gaap measures is not available without unreasonable effort due to the uncertainty regarding, and the potential variability of, many of these costs and expenses that may be incurred in the future.
What We ll Cover: 3 Quick Overview Subscription Transition Drivers of Growth Long-Term Outlook ASC 606
Quick Overview 4
$827M $200M $654M $172M $413M $232M 2013 2014 2015 2016 Q1 16 Q1 17
54,000 57,000 39,000 42,000 26,000 17,000 15,200 2013 2014 2015 2016 Q1 16 Q1 17
Subscription Transition 7
41% 39% 39% 42% 45% 47% 48% 51% 55% 8% 8% 8% 9% 26% 20% 16% 16% 12% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017
Current Annual Subscription Price Comparable Perpetual License Price Professional Desktop $840 $1,600 Server Interactor $420 $800 Tableau Online $500 $800 1 Compared to on-premises server interactor
Subscription Perpetual Year 1 2 3 4 5 Subscription $840 $840 $840 $840 $840 Perpetual $2,000 $400 $400 $400 $400 Cumulative % of Perpetual 42% 70% 90% 105% 117%
Subscription Transition: Normalized Bookings 11
Note: For the purpose of this calculation, discounting and demand are held constant: If we discount 10% on a subscription deal we apply a similar discount for the perpetual equivalent deal (the ratio would be the same).
14% 5% 3% 2% 4% Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Normalized License Bookings Growth Rate (YoY) 27% 29% 14% 30% 20% License Bookings Growth Rate (YoY) 24% 28% 11% 25% 6%
Subscription Transition: Annual Recurring Revenue (ARR) 15
* Maintenance ARR consists of the annualized value of all active maintenance contracts related to perpetual licenses.
Order 1 Order 2 Order 3 Order 4
$72M $58M $46M $38M $32M $17M $20M $22M $27M Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017
$183M $207M $235M $269M $296M $328M $361M $411M $439M Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017
Drivers of Growth 21
Growing Market Opportunity Acquiring New Customers Expanding Existing Customers Leveraging Partner Ecosystem Growing International Markets Innovate Rapidly
$17.6B $26.6B $14.9B 2013 2015 2019 Source: Market Opportunity Map for Business Intelligence and Analytics, Worldwide (Mar 2016). Market Share Analysis: Business Intelligence and Analytics Software, 2015 (Jul 2016) - Gartner
500,000 420,000 345,000 150,000 57,000 Tableau salesforce.com SAP Oracle VMWare Source: Based on the latest information filed with the SEC.
2014 2017 >90% >70% >75% >50% % of Fortune 500 companies that are customers of Tableau % of those customers with Tableau Server Source: Fortune 500 List, 2017
Top 25 Customers since 2013 Colored squares represent new license purchase Account Industry 2013 2014 2015 2016 2017 Technology Consulting Manufacturing Telecommunications Oil & Gas Banking Banking Retail Consulting Consulting Technology Technology Banking Telecommunications Financial Services Technology Healthcare Providers Retail Insurance Banking Transportation Financial Services Retail Financial Services Consulting
24% 27% 24% 26% 20% 17% 2013 2014 2015 2016 Q1 16 Q1 17 Note: Channel bookings mix excludes renewals
23% 25% 29% 28% 29% 20% 2013 2014 2015 2016 Q1 16 Q1 17
Long-Term Outlook 29
Q2 17 Revenue: $205M to $215M Ratable License Bookings Mix: 30% to 35% Non-GAAP Operating Loss: ($2M) to ($10M) Non-GAAP Tax Rate: 30% Non-GAAP Loss Per Share: ($0.02) to ($0.09) FY 2017 Revenue: $850M to $890M Ratable License Bookings Mix: 30% to 38% Non-GAAP Operating Income: ~breakeven Non-GAAP Tax Rate: 30% Non-GAAP Earnings Per Share: ~breakeven As of Q1 17 earnings call on May 3, 2017
Revenue Total revenues expected to increase year-over-year during the transition Recurring revenue mix expected to increase year-over-year during the transition Year-over-year revenue growth rate acceleration will depend on transition timing Operating Margin Annual margins are expected to improve incrementally through the transition beginning in 2018 Continue to make strategic investments to capture long term opportunity Timing Multi-year transition New customers will adopt faster than existing customers
Revenue 2015A 2016A 2017E Long-Term Framework Revenue Growth (YoY) 58% 27% 3-8% >20% Recurring Revenue as a % of Total Revenue 33% 41% ~55% >80% Non-GAAP % of Revenue 2015A 2016A 2017E Long-Term Framework Gross Margin 90% 89% ~88% >85% Operating Margin 10% 6% ~0% >20%
ASC 606 33
ASC 606 What is Changing? We will be adopting a modified retrospective approach on January 1, 2018 Current Treatment Under ASC 606 Upfront Partially Deferred
Financial Recap 35 Quick Overview Subscription Drivers Long-Term Outlook 27% revenue growth in FY 2016 16% revenue growth in Q1 17 Over 15,000 new customer accounts in TTM 20% normalized license bookings growth in Q1 17 Provided 2016 breakout for normalized license bookings growth $439M in total ARR at Q1 17 Growing market opportunity Acquiring new customers Expanding existing customers Leveraging partner ecosystem >20% revenue growth >80% recurring revenue >20% non-gaap operating margin Growing international markets Innovate rapidly
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