Tableau reported a slight revenue drop for the quarter, but increased interest in its subscription pricing model.
Tableau Software stock surged Thursday after the Seattle company beat analyst expectations for its fourth-quarter earnings.
The company’s stock jumped $13.64, or 17.7 percent, to $90.80 in after-hours trading, bringing the shares well above the $80.24 they were trading at before a dramatic drop on disappointing fourth-quarter earnings reported two years ago.
Tableau’s quarterly revenue slipped about 1 percent year-over-year to $249.4 million. The slight drop didn’t seem to faze investors, though, as customer interest in the company’s subscription pricing increased.
The company, which creates visual analytics software, has been switching much of its business to a subscription model and away from customers paying a large one-time price to buy software licenses.
Subscriptions made up 51 percent of total license bookings in the fourth quarter, up from 20 percent in the year earlier period. For the full fiscal year, subscriptions made up 41 percent of license bookings, up from 17 percent in 2016.
The company reported a loss of $41.8 million for the quarter, compared with a loss of $21.1 million in the fourth quarter last year. Tableau’s adjusted earnings per share were 12 cents, compared with the 3 cents Wall Street analysts were expecting.
Analysts had expected nearly $9 million less in revenue for the quarter.
The company also announced Thursday that its longtime chief financial officer, Tom Walker, will step down after 13 years in that role and take a six-month sabbatical from the company. Another member of the finance team, Damon Fletcher, will serve as interim CFO while the company searches for a permanent replacement.
Tableau also appointed a new director, Starbucks chief technology officer Gerri Martin-Flickinger, to join the 10-person board.