Tableau Shares Soar 64%, NEA’s Stake Worth $940 Million

Shares of Tableau Software soared nearly 64% on Friday, promising a massive return for its venture capital backers New Enterprise Associates and Meritech Capital Partners.

Yesterday, Tableau raised $254.2 million in its IPO after selling 8.2 million shares at $31 each via joint bookrunners Goldman Sachs and Morgan Stanley. The company originally planned to sell 7.2 million shares at a range of $28 to $30, but strong increase prompted it to boost the size of the offering.

Even with the higher share price, Tableau’s stock surged nearly 64% to end the day at $50.75.

NEA is Tableau’s largest shareholder. It owned about 19.6 million Class B shares, or 37.3% of voting power, prior to the IPO. It sold 1 million shares in the public offering for proceeds of $31 million. Its remaining 18.6 million shares are worth more than $943 million at today’s closing price of $50.75 per share. Including realized and unrealized returns, NEA stands to make more than 33 times its investment of $29.2 million.

Meritech, meanwhile, did not selling shares in the IPO. The firm’s stake of roughly 3.3 million shares is worth $168.2 million. Meritech, on paper, could make 9.4 times its investment of $17.8 million.

Seattle-based Tableau, which has been called an “Excel Killer,” provides software that helps users easily create charts and graphs. Its revenue doubled to $127.7 million for the year ended Dec. 31, up from $62.4 million the year before. Net income, however, dropped to $1.4 million as of Dec. 31, from about $3.4 million a year earlier.

Tableau, founded in 2003, raised about $20 million in VC funding, according to data from Thomson Reuters (publisher of peHUB). NEA was the sole investor of its $5 million Series A in August 2004 and contributed $10 million to Tableau’s $15.08 million Series B in August 2008, along with an undisclosed investor.

NEA and Meritech subsequently increased their stakes in the company by purchasing shares from the company’s co-founders and executives in what’s known as a tender offer in September 2010. The two venture firms bought a combined 5.4 million Class B shares for $5.90 apiece from Christian Chabot, co-founder and CEO; Christopher Stolte, co-founder and chief development officer; Thomas Walker, CFO; Elissa Fink, chief marketing officer; and Kelly Wright, EVP of sales, according to the comany’s S-1. (NEA bought 2.4 million shares for about $14.2 million and Meritech bought 3 million shares for roughly $17.8 million, the filing shows.)

Officials at Tableau and New Enterprise declined to comment due to the IPO quiet period.

Photo courtesy of Shutterstock

1 Comment

Leave a Reply

PE HUB Community

Join the 12522 members of PE HUB to make connections, share your opinion, and follow your favorite authors.

Join the Community

Look Who’s Tweeting

PE HUB News Briefs

RSS Feed Widget