To our stockholders, customers, partners and employees: 2014 was a fantastic year for Tableau. We saw the strongest demand in our history as the move to visual analytics grew faster than ever. After five years of revenue growth over 75%, we’ve reached more than $900 million in lifetime revenue—$412.6 million of which was generated in 2014. With that achievement, we’ve become one of the fastest growing companies in the fifty-year history of business analytics software. Our mission to help people see and understand data has come to define a new era of analytics. We’re enabling people to answer questions, solve problems and generate meaning from data in a way that has never before been possible. And, we’re putting that power in the hands of a much broader population of people. Customers call Tableau easy and fun – a far cry from the complicated business intelligence systems of the prior era. 2014 was a record year for customer growth. During 2014, we added more than 9,100 customer accounts, bringing our total to more than 26,000 worldwide. In the average week more than 150 organizations are moving to the Tableau way. Even with this success, we believe there is a large untapped market for our products. Our growth was also driven by continued international expansion. In 2014, international revenue grew to $93.8 million, up 105% year-over-year. We now have customers in more than 150 countries. Our product innovation continues at a rapid pace. In 2014, we invested $90.1 million(1) on research and development, more than the previous two years combined. This commitment led to the release of Tableau 8.2, which allows customers to run Tableau natively on the Mac and to create interactive stories with data. In December, we announced Tableau 8.3, an update that extends our enterprise-class security with support for Kerberos. At our customer conference in September, we laid out our vision to further develop our products. We remain focused on product innovation and advancing our platform to bring even more value to our growing customer base. We’re excited about the upcoming release of Tableau 9.0, the next step in our journey to help people achieve more with data. Tableau 9.0 will include innovations in visual analytics, performance, scalability, data preparation, enterprise capabilities, cloud and mobile. We’re encouraged by Tableau Public’s growth. We launched Tableau Public with the vision of creating an online community for people to share and explore data. We now have more than 90,000 authors creating 4,500 visualizations every week. Since its launch in 2010, people have published more than 500,000 visualizations on Tableau Public – nearly half of which were published in 2014 alone. Tableau Public has become the go-to community for people to create and share data visualizations with the world. In closing, I’m proud to say that our investments in people, products and customers paid off in 2014. I’d like to extend a sincere thank you to our customers and partners for your adoption and support of Tableau. It’s been an amazing year, and I look forward to 2015. Christian Chabot Co-founder and Chief Executive Officer Tableau Software, Inc. (1) Represents non-GAAP research and development expense. The figure excludes $20.8 million of stock-based compensation expense. The definition and reconciliation of non-GAAP measures can be found at investors.tableau.com/overview/default.aspx. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2014 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to ____ Commission File Number: 001-35925 TABLEAU SOFTWARE, INC. (Exact name of registrant as specified in its charter) Delaware 47-0945740 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 837 North 34th Street, Suite 200 Seattle, Washington 98103 (Address of principal executive offices and zip code) (206) 633-3400 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of Each Class Name of each exchange on which registered Class A Common Stock, par value $0.0001 New York Stock Exchange Securities registered pursuant to Section 12 (g) of the Act: None Indicate by a check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes x No o Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes o No x Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files). Yes x No o Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. x Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. Large accelerated filer x Accelerated filer o Non-accelerated filer o (Do not check if smaller reporting company) Smaller reporting company o Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x The aggregate market value of common equity held by non-affiliates of the Registrant on June 30, 2014, based on the closing price of $71.33 for shares of the Registrant’s Class A common stock as reported by the New York Stock Exchange on June 30, 2014 was approximately $3.0 billion. For purposes of determining whether a stockholder was an affiliate of the Registrant at June 30, 2014, the Registrant assumed that a stockholder was an affiliate of the Registrant at June 30, 2014 if such stockholder (i) beneficially owned 10% or more of the Registrant’s capital stock (on an as-converted basis), as determined based on public filings, and/or (ii) was an executive officer or director, or was affiliated with an executive officer or director of the Registrant, at June 30, 2014. This determination of affiliate status is not necessarily a conclusive determination for other purposes. As of February 24, 2015, there were approximately 49,361,124 shares of the registrant's Class A common stock and 21,449,827 shares of the registrant's Class B common stock outstanding. DOCUMENTS INCORPORATED BY REFERENCE Information required in response to Part III of Form 10-K (Items 10, 11, 12, 13 and 14) is hereby incorporated by reference to portions of the Registrant’s Proxy Statement for the Annual Meeting of Stockholders to be held in 2015. The Proxy Statement will be filed by the Registrant with the Securities and Exchange Commission no later than 120 days after the end of the Registrant’s fiscal year ended December 31, 2014. TABLEAU SOFTWARE, INC. ANNUAL REPORT ON FORM 10-K For the Year Ended December 31, 2014 Table of Contents PART I Page Item 1. Business 4 Item 1A. Risk Factors 17 Item 1B. Unresolved Staff Comments 37 Item 2. Properties 37 Item 3. Legal Proceedings 37 Item 4. Mine Safety Disclosure 37 PART II Market for Registrant's Common Equity, Related Stockholders Matters Item 5 and Issuer Purchases of Equity Securities 38 Item 6. Selected Consolidated Financial Data 40 Management's Discussion and Analysis of Financial Condition and Item 7. Results of Operations 43 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 61 Item 8. Consolidated Financial Statements and Supplementary Data 62 Changes in and Disagreements with Accountants on Accounting and Item 9. Financial Disclosures 85 Item 9A. Controls and Procedures 85 Item 9B. Other Information 85 PART III Item 10. Directors, Executive Officers and Corporate Governance 86 Item 11. Executive Compensation 86 Security Ownership of Certain Beneficial Owners and Management and Item 12. Related Stockholder Matters 86 Certain Relationships and Related Transactions and Director Item 13. Independence 86 Item 14. Principal Accountant Fees and Services 86 PART IV Item 15. Exhibits and Financial Statement Schedules 86 Signatures 90 PART I. SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and section 27A of the Securities Act of 1933, as amended. All statements contained in this report other than statements of historical fact, including statements regarding our future results of operations and financial position, our business strategy and plans, and our objectives for future operations, are forward-looking statements.