Talend reports 1Q 2018 results

From what I can see, the growth story for Talend remains intact. This is yet another beneficiary of the mass migration to the cloud, and they have partnered well with Amazon Web Services and others to help enterprise customers transform and store their incoming business data in data warehouses and databases. We used Talend heavily in a previous company I worked at, and it became a critical part of our business.

For 1Q 2018 they reported revenue of $46.8M (+42% Y/Y) which beat expectations by $1.21M. EPS of -$0.18 was in line with estimates. Here’s the quarterly revenue history.

**Revenues (millions)**
        1Q     2Q     3Q     4Q
2016         25.4   27.4   30.5
2017  32.9   35.8   38.4   41.5
2018  46.8   49.3(est)

And here’s the Y/Y growth in revenues, each quarter.

**Y/Y Revenue Growth**
       1Q     2Q     3Q     4Q
2016         39%    40%    45%
2017  44%    41%    40%    36%
2018  42%    39%(est)

So they continue to deliver 40%+ revenue growth, and guided 39% growth for next quarter. For the full year, they are guiding 37% growth. So I think they are being conservative, in order to give them a better shot at beating the estimate.

The 6% drop after hours might seem like an over-reaction, until you realize that they were up almost 5% today. On a valuation basis, they are trading at roughly 10x the trailing year sales, and 8x projected sales for 2018. Seems reasonable for a such a consistent grower.

Talend will continue to be a long term holding for me. Thanks Saul, and everyone who contributes here, for helping boost my portfolio so much this year. Good luck to you all.



Concise and well done, rdutt. I hope to see you post more! A couple other points on the quarter:

It was, as usual for Talend, perfectly boring. 40%+ overall revenue growth, cloud and big data revenue growing at 100%+, dollar cost net expansion rate over 120% as always…nothing to see here but a company executing perfectly on a fantastic opportunity.

Remember that this is still a tiny 1.7 billion dollar market cap. They’ll cross the 200M TTM revenue marker in a couple quarters, and I think there’s an absolute ton of room to grow.

Speaking of growth, one of my favorite metrics is the growth in their Enterprise customers (those with subscription revenue over 100k annually). Here’s the last several quarters:

Mar17: 260
Jun17: 291
Sep17: 335
Dec17: 353
Mar18: 380 (up 46% YoY…I bet the average spend is up too, but I haven’t confirmed)

And lastly, they had 5M bucks of FCF. Just a great quarter.