Analytics will be one of the main growth areas in software next year. As more organizations realize the power of their data, they are increasingly turning to analytics software that help visualize data in an easy-to-understand format, explains Rob DeFrancesco in Investing Daily's Smart Tech Investor.
Manufacturing, financial services, and media are among the top industries embracing big data analytics solutions. All of these industries are able to gain useful insights from assorted data trends.
For example, a pharmaceuticals company can track different manufacturing processes for vaccines to help improve yield and actual production run rates.
A bank can analyze online and branch visits of customers in order to improve the overall experience.
A movie company can graph out how individual films perform across multiple regions at various times of the year based on different types of advertising campaigns.
One of the main beneficiaries of the this trend is Tableau Software (DATA), a provider of data visualization analytics solutions.
The company is expanding at a rapid clip, with third quarter revenue growing 64% thanks to strong adoption by new customers and healthy follow-on sales to existing accounts.
In the September quarter, Tableau brought on a record 3,100+ new customers. For the first nine months of the year, the company added 8,700+ new accounts, bringing the total customer base to more than 35,000.
Tableau in the third quarter closed 296 deals worth more than $100,000 (up from 233 in the previous quarter), while 12 customers (from nine different industries) each spent more than $1 million with the company.
Tableau has a variety of customers across all major industries, including a large global consumer products company that uses its software to track inventory details for different departments as well as buying patterns across 170 countries.
The latest version of Tableau's software offers more ways to answer questions from data, making it easy for even a casual user to generate valuable insights.
Tableau has also been improving its mobile experience; the company's new Vizable standalone mobile app allows customers to graph out data trends on the fly via a tablet device.
For 2015, the upwardly revised revenue guidance range (the third guidance boost this year) of $645 million to $650 million represents growth of 58% at the high end.
Looking ahead to next year, Tableau's initial revenue guidance of $845 million to $865 million (growth of 32% at the midpoint) looks quite conservative based on recent upside momentum in the business.
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