Tableau Software reported a mixed bag of earnings results for the first quarter, coming in on the low end of estimates on revenue but outperforming predictions for losses.
Analysts surveyed in advance by Yahoo Finance had a consensus estimate of $200.83 million in revenue for the quarter, and Tableau posted revenue of $199.9 million, a 16 percent rise over this time last year. Analysts expected Tableau to post a loss of about 11 cents per share. Tableau reported a non-GAAP loss of $4.2 million for the quarter, about 3 cents per share.
Tableau CFO Tom Walker said on the company’s earnings call that Tableau would have posted a non-GAAP profit for the quarter if it weren’t for a $10 million real estate consolidation charge.
Tableau stock dropped close to 5 percent on news of its earnings results, but rebounded, and is now up 6 percent in after-hours trading.
Tableau global headcount dropped this quarter from 3,223 at the end of last year to 3,193. That comes after Tableau scaled back ambitious hiring plans last year.
The company’s net loss is up over last year, but so are its ratable license bookings and deals over $100,000. Bookings increased 26 percent year-over-year and the company closed 294 transactions over $100,000, an increase of 10 percent over this time in 2016. Overall, Tableau added approximately 3,300 customers in the quarter to push it over 57,000 total customers.
“Customers enthusiastically embraced our subscription licensing offerings in Q1, as reflected in our 26% ratable license bookings mix,” Adam Selipsky, president and chief executive officer of Tableau said in a statement. “Subscription reduces risk for our customers, lowers their upfront investment and we expect will lead to higher demand for Tableau over time.”
Selipsky noted on the company’s earnings call that Tableau’s shift to subscriptions means less upfront revenue, but a more consistent funding source for the company. The company announced subscription prices for its various products last month.
Walker said on the earnings call that faster than expected adoption of its subscription model could hurt revenue and operating income in the short-term.
Tableau had good momentum following a bounce back performance in the fourth quarter of last year that saw the company’s stock spike 14 percent. The company’s stock dropped nearly 50 percent in 2016.