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What is Tableau Software?
Tableau Software is a business intelligence and data visualization tool that helps people to transform complex data into meaningful insights. The company was founded in 2003 in Seattle and has quickly gained popularity among businesses and individuals for its user-friendly interface and powerful features. Tableau’s mission is to help people see and understand data.
Why is Tableau Software Valuation Important?
Tableau Software’s valuation is an important metric for investors and stakeholders alike. It provides insight into the value of the company and how the market perceives its potential for growth. Tableau’s valuation can also indicate market trends and investor sentiment towards the tech industry as a whole. This article will explore the factors that contribute to Tableau Software’s valuation and how it compares to other companies in the industry.
The Factors that Contribute to Tableau Software Valuation
Revenue Growth
One of the most significant factors that contribute to Tableau’s valuation is revenue growth. Over the years, Tableau has consistently reported strong revenue growth, which has allowed the company to expand its operations and invest in new technologies. As of 2019, Tableau’s annual revenue was $1.1 billion, with a year-over-year growth rate of 41%. This growth shows that the company is successfully expanding its customer base and increasing sales.
Tableau’s market share is another essential factor that contributes to its valuation. Although Tableau faces significant competition from other business intelligence and data visualization tools, the company has managed to maintain a significant share of the market. According to IDC, Tableau had a 6.5% market share of the business intelligence and analytics market in 2019, making it the third-largest vendor in the industry. This market share demonstrates that Tableau has a loyal customer base and is well-positioned for continued growth.
Product Innovation
Tableau’s commitment to product innovation is another factor that contributes to its valuation. The company has consistently released new features and updates to its software, providing users with an ever-improving experience. For example, in 2019, Tableau released Tableau Prep, a new product that allows users to combine, shape, and clean data for analysis. These innovative products and features ensure that Tableau remains relevant in a competitive industry.
Customer Satisfaction
Tableau’s commitment to customer satisfaction is another significant factor that contributes to its valuation. The company has a customer-centric approach to its business, which has helped it to build a loyal customer base. Tableau has consistently ranked highly in customer satisfaction surveys and has received numerous awards for its customer support. This high level of customer satisfaction ensures that Tableau’s customers are likely to continue using the software and recommending it to others.
Competitive Landscape
The competitive landscape is an essential factor to consider when evaluating Tableau Software’s valuation. The company faces significant competition from other business intelligence and data visualization tools, such as Microsoft Power BI, QlikView, and SAP Lumira. However, Tableau has managed to maintain a significant market share and continues to release innovative products and features that keep it ahead of the competition.
Tableau Software Valuation Compared to Other Companies
Tableau Software Valuation Compared to Microsoft
Microsoft Power BI is one of Tableau’s primary competitors in the business intelligence and data visualization market. Microsoft Power BI is a cloud-based data visualization tool that provides users with interactive dashboards and reports. In 2018, Microsoft acquired the business analytics and artificial intelligence software firm Alation for $50 million, which helped boost Power BI’s capabilities.
As of 2019, Microsoft’s market capitalization was $1.04 trillion, compared to Tableau’s $13 billion. This difference in valuation indicates that the market considers Microsoft to be a much larger and more significant player in the tech industry. However, Tableau’s revenue growth rate was 41%, compared to Microsoft’s 14%, indicating that Tableau is experiencing faster growth than Microsoft.
Tableau Software Valuation Compared to QlikView
QlikView is another significant competitor in the business intelligence and data visualization market. QlikView is a self-service business intelligence and data discovery tool that enables users to perform data analysis without the need for IT support. In 2016, QlikView was acquired by private equity firm Thoma Bravo for $3 billion.
As of 2019, QlikView’s market capitalization was $3.2 billion, compared to Tableau’s $13 billion. This difference in valuation shows that the market views Tableau as a more valuable company. However, QlikView reported a revenue growth rate of 7% in 2019, compared to Tableau’s 41%, indicating that Tableau is experiencing faster growth than QlikView.
Tableau Software Valuation in Numbers
Year |
Market Cap ($B) |
Revenue ($M) |
Net Income ($M) |
Employees |
|---|---|---|---|---|
2015 |
6.71 |
654.6 |
-83.7 |
2,500 |
2016 |
3.96 |
827.9 |
-144.9 |
3,200 |
2017 |
4.32 |
877.9 |
-178.4 |
4,100 |
2018 |
10.1 |
1,243.8 |
-77.4 |
4,366 |
2019 |
13.0 |
1,153.7 |
-81.9 |
4,968 |
Frequently Asked Questions
What is Tableau Software?
Tableau Software is a business intelligence and data visualization tool that helps people to transform complex data into meaningful insights. The company was founded in 2003 in Seattle and has quickly gained popularity among businesses and individuals for its user-friendly interface and powerful features.
According to IDC, Tableau had a 6.5% market share of the business intelligence and analytics market in 2019, making it the third-largest vendor in the industry.
How does Tableau’s valuation compare to Microsoft?
As of 2019, Microsoft’s market capitalization was $1.04 trillion, compared to Tableau’s $13 billion. However, Tableau’s revenue growth rate was 41%, compared to Microsoft’s 14%, indicating that Tableau is experiencing faster growth than Microsoft.
What is Tableau Prep?
Tableau Prep is a new product that allows users to combine, shape, and clean data for analysis. It was released in 2019.
What is QlikView?
QlikView is a self-service business intelligence and data discovery tool that enables users to perform data analysis without the need for IT support.
Who are Tableau’s primary competitors?
Tableau’s primary competitors are Microsoft Power BI and QlikView.
What is Tableau’s revenue growth rate?
As of 2019, Tableau’s revenue growth rate was 41%.
What is Tableau’s mission?
Tableau’s mission is to help people see and understand data.
What is the competitive landscape for Tableau?
Tableau faces significant competition from other business intelligence and data visualization tools, such as Microsoft Power BI, QlikView, and SAP Lumira.
What is the difference between Tableau and QlikView?
Tableau and QlikView are both business intelligence and data visualization tools, but they differ in their approach to data discovery. Tableau is known for its user-friendly interface and powerful features, while QlikView is a self-service platform that empowers users to perform data analysis without the need for IT support.
What is Tableau’s approach to customer satisfaction?
Tableau has a customer-centric approach to its business, which has helped it to build a loyal customer base. The company consistently ranks highly in customer satisfaction surveys and has received numerous awards for its customer support.
What is Tableau’s commitment to product innovation?
Tableau is committed to product innovation and has consistently released new features and updates to its software. These innovative products and features ensure that Tableau remains relevant in a competitive industry.
How does Tableau’s revenue growth compare to QlikView?
As of 2019, QlikView reported a revenue growth rate of 7%, compared to Tableau’s 41%, indicating that Tableau is experiencing faster growth than QlikView.
What is the outlook for Tableau Software?
Tableau Software has a bright future, with strong revenue growth, a loyal customer base, and a commitment to product innovation. The company is well-positioned for continued success in a highly competitive industry.
Conclusion
Tableau Software’s valuation is an essential metric for investors and stakeholders to evaluate the company’s potential for growth. The factors that contribute to Tableau’s valuation include revenue growth, market share, product innovation, customer satisfaction, and the competitive landscape. Compared to other companies in the industry, such as Microsoft and QlikView, Tableau’s valuation is strong and indicates that the market views the company as a valuable player in the tech industry. As Tableau continues to release innovative products and features, maintain strong revenue growth, and prioritize customer satisfaction, its outlook remains bright.
We hope this guide has provided valuable insights into Tableau Software valuation and helps readers make informed investment decisions.
Disclaimer
The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. Before making any investment decisions, readers are encouraged to do their due diligence and consult with a financial advisor.
