What happened
Shares of data visualization company Tableau Software (DATA +0.00%) 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.
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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.
