Why Tableau Software Shares Surged

Why Tableau Software Shares Surged

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of business analytics software company Tableau Software surged 14% today after its quarterly results and outlook topped Wall Street expectations.

So what: The stock has soared since its May IPO on increasing growth optimism, and today's second-quarter results -- surprise profit of $0.01 per share on a revenue spike of 71% -- coupled with upbeat guidance only reinforce that excitement. In fact, the company added 1,500 new customer accounts during the quarter and closed 80 sales orders over $100,000 (versus 60 in the year-ago period), suggesting that its competitive position is strengthening at a solid rate.

Management now sees full-year revenue of $198 million to $202 million, nicely ahead of Wall Street's view of $187.9 million. "Our business continues to experience strong momentum, as customers use Tableau's software to turn data into revealing insights and stories," said President and CEO Christian Chabot in a statement. Of course, with the stock now having more than doubled from itsMay $31 IPO price, I'd wait for a bit of the exuberance to fade before betting on that momentum to continue.

Tired of watching your stocks creep up year after year at a glacial pace? Motley Fool co-founder David Gardner, founder of the No. 1 growth stock newsletter in the world, has developed a unique strategy for uncovering truly wealth-changing stock picks. And he wants to share it, along with a few of his favorite growth stock superstars, WITH YOU! It's a special 100% FREE report called "6 Picks for Ultimate Growth." So stop settling for index-hugging gains... and click HERE for instant access to a whole new game plan of stock picks to help power your portfolio.

The article Why Tableau Software Shares Surged originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.