Tableau Software (DATA) IPO Could Be a Hot One

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					Robert DeFrancesco’s
May 9, 2013

Tableau Software (DATA) IPO Could Be a Hot One
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Here are some of the topics covered in the May 2013 issue:

*Cloud software shines in Q1 earnings season
*NetSuite shows why it’s a cloud leader
*ServiceNow expanding its addressable market
*Proofpoint raises guidance on key security wins
*SPS Commerce builds its customer base
*Sourcefire raging in networking security
*Adobe Systems gets traction in the cloud
*A valuation reset for Citrix Systems
*Yahoo focuses on content & mobile
*Fusion-IO diversifies its customer portfolio
*LinkedIn disrupts enterprise recruiting
*New growth drivers at Microsoft
*Apple readies its next product cycle
*Akamai sees growth in cloud infrastructure
*Riverbed Technology tries to find footing
*A new capital allocation strategy at Harmonic
*Deal Report: Marketo IPO overview

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The upcoming IPO for Tableau Software (proposed symbol: DATA) is getting a lot
of attention. The offering promises to make a strong debut because the company has
been putting up some solid growth numbers in the enterprise analytics space.

Tableau’s business-intelligence (BI) solutions enable customers to better
understand data, allowing users to access information, perform analysis and share
results without the assistance of IT specialists.
The IPO price range has been set at $23 to $26 a share for an initial valuation from
$1.32 billion to $1.49 billion.

According to IDC, the 2012 worldwide market for traditional business analytics
software totaled $35.1 billion, with the research firm estimating the BI tools subset
at $12.9 billion. In addition, organizations spend billions of dollars on hardware,
support and services to implement and maintain traditional BI systems.

As of the end of 2012, Tableau had roughly 11,000 customers (up from 7,700 at the
end of 2011) across a broad range of verticals and company sizes in more than 100
countries. The company deploys the “land and expand” strategy, with its solutions
generally adopted at the grassroots level within organizations (often starting with a
free trial) and then pushed across departments, divisions and geographies via word-
of-mouth recommendations.

Tableau’s direct competitors include Qlik Technologies (QLIK) and the Spotfire
unit of Tibco Software (TIBX). Tableau is “frenemies” with IBM, Microsoft, Teradata
and Oracle, having cultivated strong relationships with technology partners to help
extend the reach of its solutions. These partners include both traditional database
vendors and emerging vendors (including Cloudera, Google, the Greenplum division
of EMC and the Vertica division of Hewlett-Packard).

For 2012, Tableau’s revenue jumped 104% to $127.7 million, accelerating from 82%
growth in 2011. New customers represented 36% of perpetual license sales. About
17% of total revenue is derived from outside North America, indicating there’s
plenty of room for international expansion.

In 2012, the company closed 239 deals worth greater than $100,000 each, up from
111 in 2011. A surprising accomplishment for a growth company this small: Tableau
has delivered profits (albeit small ones) in each of the past three years. For the three
months ended March, revenue was up 62% to $40.01 million.


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Description: The IPO range for BI-software provider Tableau is set at $23 to $26 a share