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