What happened

Shares of data visualization company Tableau Software (NYSE:DATA) rose a nice 12.5% during August, according to data provided by S&P Global Market Intelligence. The stock's outperformance was driven by Tableau's impressive second-quarter results released Aug. 2.

For its second quarter, Tableau's revenue and adjusted EPS exceeded analysts' consensus estimate for the quarter. Revenue for the quarter was $212.9 million, up 7% year over year. And Tableau's non-GAAP net income per share was up sharply, from $0 in the year-ago quarter to $0.10 in the second quarter of 2017.

A chart showing a something trending higher.

Image source: Getty Images.

So what

The company's transition to a subscription model is paying off.

Tableau CEO Adam Selipsky noted in the company's second-quarter earnings release that accelerated adoption of Tableau's new subscription offerings during the quarter happened "even faster than we had projected."

Total annual subscription recurring revenue during the quarter was $103.5 million, up 175% year over year.

Now what

Looking ahead, Tableau expects more growth. For its third quarter of 2017, management said it expects revenue between $213 million and $223 million, up 6% year over year based on the midpoint of this guidance range. For the full year, management updated its guidance range for revenue to be between $865 million and $890 million, representing 6% year-over year-growth based on the range's midpoint. 

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.