Is Tableau an expensive deal for Salesforce?

Is Tableau an expensive deal for Salesforce?

Not really.

There aren’t that many things of true scale, that are strategic, that Salesforce could buy at this stage.

  • Tableau was at >$900m in recurring revenue … growing 41% (!)
  • And subscriptions were growing 115%.

Tableau Reports First Quarter 2019 Financial Results

That’s not Twilio growth, but it’s awfully strong.

And it means, if you take that growth rate and roll things forward a few years, Salesforce is buying a will-grow-into $3b-$6b business analytics business, that is already the #1 largest player in its segment.

And Salesforce doesn’t seem to screw up its bigger acquisitions. Mulesoft, ExactTarget, Commerce Cloud/Demandbase, etc. are all doing well.

So it ain’t cheap. And yes, it’s a competitive space. Tableau does not have 80% market share.

But it’s a good deal.

At least in today’s high multiple market.

View original question on quora

Published on August 2, 2019

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