Tableau’s licensing revenue continues to grow steadily
Tableau’s (DATA) licensing business primarily comprises sales of perpetual, term, and subscription software licenses. While the company’s maintenance and service segment has slowed down considerably over the last few quarters, its licensing business has picked up. The licensing business, which slowed in 2017 due to product mix changes, bounced back last year.
Pivot to a subscription model is paying off
Under ASC (Accounting Standards Codification) 606, Tableau’s licensing revenue totaled $170.8 million. Under ASC 605, the segment’s revenue rose 15.4% year-over-year to $151.7 million. However, in the comparable 2017 quarter, the company was transitioning to a subscription-based model.
High demand for analytics software across the board contributed to Tableau’s robust licensing revenue growth. Tableau’s term and subscription license revenue has steadily represented more of its total revenue, driven by the pivot to cloud and subscription products.