Buy This Beaten Down Company to Benefit From Big Data's Growth

Although down 20% in 2014, this company's earnings are expected to grow at 92% for the next five years. Are you interested?

May 14, 2014 at 9:00PM

Tableau Software (NYSE:DATA) is a stock you should consider owning to benefit from the growth of big data and analytics. The company's financial performance has been quite strong, as its recent first-quarter results show. Tableau's partnership with another important player in data analytics, Splunk (NASDAQ:SPLK), could add to its growth in the long run. 

Tableau shares have sunk by 20% so far this year. This gives investors an opportunity to buy the stock at a lower price. Let's take a look at Tableau's recent performance and check why investors should consider buying the stock on the pullback.

Outstanding growth driven by efficient products
Tableau reported rapid growth in the first quarter, with revenue growing 86% year over year. Its non-GAAP net loss also fell from $1.8 million in the year-ago quarter to $0.4 million in the first quarter of 2014. It is clear that Tableau is making huge strides in growing its business, and its strategic initiatives, partnerships, and new products can lead to further growth.

The company's product innovation can be seen in recent offerings such as Tableau 8.1. Tableau 8.1 provides enterprise customers with useful features such as 464-bit support security assertion markup language, or SAML, authentication, support for external load balancers, and IPv6 support. It also provides users with more advanced analytics capabilities by integrating with open-source statistics programs.

Also, Tableau 8.1 makes business analytics faster and easier for everyone. And now, Tableau is looking to improve this performance with the release of Tableau version 8.2 in the second quarter. The company has a strong product roadmap, as Tableau version 9 is scheduled for release in the first half of next year. The company is continually looking to improve its offerings.

Tableau is also making aggressive moves with solutions such as Tableau Public, a free online product. Tableau Public lets people share insights and interactive data on the web. Earlier this year, data enthusiasts used this platform to publish interactive data about various events such as the Olympic Torch Relay, alternative fuel stations, worldwide food availability, World Cup odds, etc., increasing the company's visibility.

With such aggressive moves, it comes as no surprise that Tableau added more than 1,800 new customer accounts in the last reported quarter. In doing so, the company increased its customer base to more than 19,000 across the world. Tableau also closed around 210 large transactions that were worth more than $100,000 in the first quarter, a terrific improvement from just 77 such transactions in the prior-year period. 

Key partnerships
Also, the company has expanded its relationships with many of its existing customers, which include the likes of Google (NASDAQ:GOOG) (NASDAQ:GOOGL), PepsiCo, Capital One, and Deutsche Telekom. In addition, Tableau has built new relationships with Yelp, Tiger Airways, Land O'Lakes, Nestle Brazil, and others.

Out of these, Tableau's relationship with Google can prove to be an important catalyst in the long run. Google's cloud-based BigQuery analytics platform allows data analysts to do fast SQL-style querying. By teaming up with Tableau, Google added data-visualization power to its platform.

Driven by Tableau's support, Google has been able to offer a variety of features on its analytics platform, such as automatically scheduled refreshes, securely published data sources, workbooks, and dashboards. 

Google Analytics is a well-known name in the industry. As the demand for data analytics grows, the Google relationship should help Tableau's performance improve.

On the other hand, there's Splunk. Tableau and Splunk are in a strategic partnership to provide cutting-edge solutions. The latest version of Tableau's software will now include Splunk Enterprise as a native data source. Splunk Enterprise uses Splunk's recently launched open-database connectivity driver, and after this integration, Tableau users will be able to visualize machine data and find new insights. 

Moreover, since Splunk also has big customers such as General Electric and Symantec to boast of, Tableau might tap into these accounts as a result of its partnership.

Final words
Tableau is expected to outperform the industry by a big margin going forward. Analysts expect its earnings to grow at an astronomical annual rate of 92% for the next five years. The industry growth rate pales in comparison, at just 18%.

Given Tableau's aggressive customer acquisitions, efficient solutions, and marketing moves, the company is capable of performing well going forward. Investors should consider this stock for their portfolio, and the recent pullback provides a golden opportunity to buy this fast-growing company.

The biggest thing to come out of Silicon Valley in years
If you thought the iPod, the iPhone, and the iPad were amazing, just wait until you see this. One hundred of Apple's top engineers are busy building one in a secret lab. And an ABI Research report predicts 485 million of them could be sold over the next decade. But you can invest in it right now... for just a fraction of the price of AAPL stock. Click here to get the full story in this eye-opening new report.

Ayush Singh has no position in any stocks mentioned. The Motley Fool recommends Google (C shares). The Motley Fool owns shares of Google (C shares). Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.


Compare Brokers