3 November, 2016
Tableau’s Plunge Is a Cautionary Tale for Growth-Chasing Tech Investors
Tougher competition from larger peers appears to be weighing on the analytics software firm’s sales. That’s a story many former enterprise high-flyers can relate to.
Less than 18 months ago, Tableau Software (DATA) was seen as a company that could do no wrong, a fast-growing juggernaut that was at the forefront of a software wave that promised to make advanced analytics tools far more accessible and widely used in the corporate world.
Today, Tableau’s story doesn’t look so unblemished, and the way that it has changed should serve as a cautionary tale for investing in richly-valued, enterprise tech names in hot markets that larger peers have begun to take notice of.
Tableau, a provider of business intelligence (BI) tools that allow workers to quickly analyze and visualize data, tumbled roughly 12% Wednesday after posting mixed third-quarter results and issuing soft fourth-quarter guidance. While Q3 EPS of $0.16 beat a consensus analyst estimate of $0.07 (controlled spending helped), revenue of $206.1 million (up 21% annually) missed a $213.8 million consensus.