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Mar 31, 2024

Teradata Q1 2024 Earnings Report

Teradata's first quarter results for 2024 were announced, featuring a 36% increase in public cloud ARR in constant currency and a cloud net expansion rate of 123%.

Key Takeaways

Teradata reported its first quarter 2024 financial results, with public cloud ARR growing 36% year over year in constant currency. The company is focused on improving execution and achieving long-term profitable growth targets. While cloud ARR growth was slightly below expectations, the company is pleased with its sustained strong cloud net expansion rate of 123%.

Public cloud ARR increased by 35% to $525 million, or 36% in constant currency.

Cloud net expansion rate was 123%.

GAAP diluted EPS was $0.20, compared to $0.39 per share.

Non-GAAP diluted EPS was $0.57, compared to $0.61 per share.

Total Revenue
$465M
Previous year: $476M
-2.3%
EPS
$0.57
Previous year: $0.61
-6.6%
GAAP Gross Margin
61.1%
Previous year: 63.4%
-3.6%
Non-GAAP Gross Margin
62.2%
Previous year: 64.3%
-3.3%
GAAP Operating Margin
10.3%
Previous year: 16.6%
-38.0%
Gross Profit
$284M
Previous year: $302M
-6.0%
Cash and Equivalents
$337M
Previous year: $551M
-38.8%
Free Cash Flow
$21M
Previous year: $105M
-80.0%
Total Assets
$1.75B
Previous year: $1.99B
-12.1%

Teradata

Teradata

Teradata Revenue by Segment

Teradata Revenue by Geographic Location

Forward Guidance

For the second quarter of 2024, GAAP diluted EPS is expected to be in the range of $0.17 to $0.21 per share, and non-GAAP diluted EPS is expected to be in the range of $0.46 to $0.50 per share. For the full year 2024, Teradata expects GAAP diluted EPS to be in the range of $1.00 to $1.16 per share and non-GAAP diluted EPS to be in the range of $2.15 to $2.31 per share.

Positive Outlook

  • Total ARR growth of 4% to 8% year-over-year, in constant currency.
  • Recurring revenue growth of 1% to 3% year-over-year, in constant currency.
  • Total revenue growth of 0% to 2% year-over-year, in constant currency.
  • Public cloud ARR growth of 35% to 41% year-over-year, in constant currency.
  • Cash flow from operations of $360 million to $400 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income