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Mar 31, 2023

Teradata Q1 2023 Earnings Report

Teradata's Q1 2023 financial results were reported, demonstrating growth in public cloud ARR and a large deal closure.

Key Takeaways

Teradata reported a 4% decrease in total revenue, but experienced an 86% increase in public cloud ARR and a 6% increase in total ARR. The company reaffirmed its full-year outlook for key metrics.

Public cloud ARR increased by 86% to $388 million.

Total ARR grew by 6% to $1.506 billion.

Total revenue decreased by 4% to $476 million.

GAAP EPS was reported at $0.39, while Non-GAAP EPS reached $0.61.

Total Revenue
$476M
Previous year: $496M
-4.0%
EPS
$0.61
Previous year: $0.65
-6.2%
GAAP Gross Margin
63.4%
Previous year: 60.7%
+4.4%
Non-GAAP Gross Margin
64.3%
Previous year: 62.9%
+2.2%
GAAP Operating Margin
16.6%
Previous year: 13.7%
+21.2%
Gross Profit
$302M
Previous year: $301M
+0.3%
Cash and Equivalents
$551M
Previous year: $404M
+36.4%
Free Cash Flow
$105M
Previous year: $150M
-30.0%
Total Assets
$1.99B
Previous year: $1.9B
+4.8%

Teradata

Teradata

Teradata Revenue by Segment

Teradata Revenue by Geographic Location

Forward Guidance

Teradata provided guidance for the second quarter of 2023 and reaffirmed its full-year 2023 outlook, updating the EPS and cash flow from operations guidance.

Positive Outlook

  • GAAP diluted EPS is expected to be in the range of $0.14 to $0.18 for Q2 2023.
  • Non-GAAP diluted EPS is expected to be in the range of $0.43 to $0.47 for Q2 2023.
  • Public cloud ARR is expected to increase in the range of 53% to 57% year-over-year for full year 2023.
  • Total ARR is expected to increase in the range of 6% to 8% year-over-year for full year 2023.
  • Recurring revenue is expected to increase in the range of 4% to 7% year-over-year for full year 2023.

Challenges Ahead

  • GAAP diluted EPS is narrowed to be in the range of $0.65 to $0.77 for the full year 2023.
  • Non-GAAP diluted EPS is narrowed to be in the range of $1.92 to $2.04 for the full year 2023.
  • Cash flow from operations is now expected to be in the range of $340 million to $380 million for the full year 2023.
  • Total revenue is expected to increase in the range of 1% to 4% year-over-year for full year 2023.
  • Free cash flow is expected to be in the range of $320 million to $360 million for the full year 2023.

Revenue & Expenses

Visualization of income flow from segment revenue to net income