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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
Teradata
Teradata
Teradata Revenue by Segment
Revenue by Segment
Perpetual Software, Hardware & Other Revenue
CapyFin.comConsulting Services Revenue
CapyFin.com 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