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Teradata
🇺🇸 NYSE:TDC
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Jun 30, 2022

Teradata Q2 2022 Earnings Report

Teradata's Q2 2022 financial results were announced, demonstrating resilience in a volatile economic environment.

Key Takeaways

Teradata reported strong Cloud ARR growth, triple-digit free cash flow, and non-GAAP EPS exceeding the high-end of the quarterly outlook. The company's performance demonstrates resilience in a volatile economic environment, with new technology being unveiled to increase customer benefits and expand the total addressable market.

Public cloud ARR of $234 million, an increase of 68% as reported and 75% in constant currency from the prior year period

Second quarter recurring revenue of $345 million, a decrease of 8% as reported and 5% in constant currency from the prior year period

Recurring revenue was 80% of total revenue in the second quarter, up from 77% the prior year period

Second quarter Non-GAAP earnings per diluted share of $0.33

Total Revenue
$430M
Previous year: $491M
-12.4%
EPS
$0.33
Previous year: $0.74
-55.4%
GAAP Gross Margin
60%
Non-GAAP Gross Margin
61.2%
ARR
$234M
Previous year: $139M
+68.3%
Gross Profit
$258M
Previous year: $310M
-16.8%
Cash and Equivalents
$545M
Previous year: $684M
-20.3%
Free Cash Flow
$102M
Previous year: $219M
-53.4%
Total Assets
$1.9B
Previous year: $2.25B
-15.6%

Teradata

Teradata

Teradata Revenue by Segment

Forward Guidance

For the third quarter of 2022, GAAP diluted EPS is expected to be in the range of $0.01 to $0.05, and Non-GAAP diluted EPS is expected to be in the range of $0.27 to $0.31. Teradata reaffirms the full year 2022 outlook, with public cloud ARR expected to increase by approximately 80% year-over-year.

Positive Outlook

  • Public cloud ARR is expected to increase by approximately 80% year-over-year.
  • Total recurring revenue to decline in the low-to-mid-single-digit percentage range year-over-year as reported.
  • On a constant currency basis, total recurring revenue is projected to be flat to grow in the low-single-digit percentage range.
  • Non-GAAP diluted EPS is expected to be in the range of $1.55 to $1.65.
  • Cash flow from operations is expected to be approximately $425 million.

Challenges Ahead

  • GAAP diluted EPS is expected to be in the range of $0.01 to $0.05.
  • Non-GAAP diluted EPS is expected to be in the range of $0.27 to $0.31.
  • Total revenue to decline in the mid-to-high-single-digit percentage range year-over-year as reported.
  • On a constant currency basis, total revenue is anticipated to decline in the low-single-digit percentage range.
  • Total ARR as reported to now decline in the low-to-mid-single-digit percentage range year-over-year.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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