What happened

Shares of Tableau Software (DATA) rose on Wednesday after the data analytics software provider reported its third-quarter results. Tableau's performance was mixed relative to analyst expectations, but the company was able to provide strong guidance for fourth-quarter revenue. As of 12:30 p.m. EST, the stock was up about 15.9%.

So what

Tableau reported third-quarter revenue of $290.6 million. This revenue number is based on the new ASC 606 standard, and Tableau offered no comparable number for the prior-year period. Under the old ASC 605 standard, revenue was $239.6 million, up 11.5% year over year and about $2.6 million below the average analyst estimate.

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Under the new standard, annual recurring revenue grew by 45% year over year to $762.6 million, while subscription annual recurring revenue jumped 160% year over year to $362.4 million. Tableau lost $0.26 per share on a GAAP basis and posted a $0.47-per-share profit on a non-GAAP basis under the new standard.

Under the old standard, Tableau reported a GAAP EPS loss of $0.86 and a non-GAAP EPS loss of $0.07. The company's previous guidance called for a non-GAAP EPS loss between $0.09 and $0.15.

Now what

While Tableau missed revenue estimates for the third quarter, the company's guidance was more on the mark. Tableau expects fourth-quarter revenue between $266 million and $276 million, which would be growth of 9% at the midpoint of that range. Analysts were expecting revenue of $270.7 million. For fiscal 2019, Tableau expects revenue between $1.33 billion and $1.40 billion, in line with analyst expectations. Fourth-quarter revenue guidance is based on the old ASC 605 standard, while fiscal 2019 guidance is based on the new ASC 606 standard.

While Tableau grew more slowly than expected in the third quarter, solid guidance was enough for investors to bid up the stock on Wednesday.