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Mar 31, 2020

Teradata Q1 2020 Earnings Report

Teradata's first-quarter results were negatively impacted by COVID-19, with recurring revenue increasing and the company progressing on cloud and go-to-market efforts.

Key Takeaways

Teradata reported a decrease in total revenue to $434 million compared to $468 million in the first quarter of 2019, but net income increased significantly to $168 million, or $1.51 per diluted share, compared to a net loss of $(10) million, or $(0.09) per share, in the same period last year. The company is withdrawing its full-year 2020 guidance due to uncertainties relating to COVID-19.

Teradata continued to make progress on key Cloud, Vantage, and Go-to-market efforts in the first quarter.

The Company’s technology is critical in supporting customers during COVID-19 and Teradata used this opportunity to further support customers and deepen relationships.

Teradata’s first-quarter results were negatively impacted by COVID-19.

The Company is withdrawing its full-year 2020 guidance due to uncertainties relating to COVID-19.

Total Revenue
$434M
Previous year: $468M
-7.3%
EPS
$0.27
Previous year: $0.22
+22.7%
GAAP Gross Margin
51.8%
Previous year: 47.9%
+8.1%
Non-GAAP Gross Margin
54.1%
Previous year: 51.5%
+5.0%
Non-GAAP Operating Margin
7.4%
Gross Profit
$225M
Previous year: $224M
+0.4%
Cash and Equivalents
$394M
Previous year: $723M
-45.5%
Free Cash Flow
-$2M
Previous year: $34M
-105.9%
Total Assets
$2.15B
Previous year: $2.29B
-5.9%

Teradata

Teradata

Teradata Revenue by Segment

Forward Guidance

Due to the evolving nature and uncertain impact of COVID-19 on Teradata’s operating and financial results, the Company is withdrawing its guidance for the full-year 2020. For the second quarter of 2020, Teradata expects recurring revenue in the range between $348 million and $352 million. GAAP loss per share in the second quarter of 2020 is expected to be in the $(0.09) to $(0.06) range. Non-GAAP earnings per share, excluding stock-based compensation expense and other special items, in the second quarter is expected to be in the $0.19 to $0.22 range

Positive Outlook

  • Recurring revenue in the second quarter of 2020 is expected to be in the range between $348 million and $352 million.

Challenges Ahead

  • The Company is withdrawing its guidance for the full-year 2020 due to the evolving nature and uncertain impact of COVID-19.
  • GAAP loss per share in the second quarter of 2020 is expected to be in the $(0.09) to $(0.06) range.

Revenue & Expenses

Visualization of income flow from segment revenue to net income