Teradata Q2 2023 Earnings Report
Key Takeaways
Teradata's Q2 2023 financial results showed strong momentum with a 77% increase in Public Cloud ARR, a 10% increase in Total ARR, and EPS that exceeded guidance. The company's total revenue increased by 7% to $462 million, and recurring revenue increased by 8% to $371 million. The adoption of Teradata VantageCloud is driving growth.
Public cloud ARR increased by 77% to $414 million.
Total ARR increased by 10% to $1.523 billion.
Total revenue increased by 7% to $462 million.
Non-GAAP diluted earnings per share was $0.48.
Teradata
Teradata
Teradata Revenue by Segment
Forward Guidance
Teradata anticipates GAAP diluted EPS to be in the range of $0.10 to $0.14 and non-GAAP diluted EPS to be in the range of $0.40 to $0.44 for Q3 2023. For the full year 2023, Teradata expects GAAP diluted EPS to be in the range of $0.74 to $0.86, Public cloud ARR is expected to increase in the range of 53% to 57% year-over-year, Total ARR is expected to increase in the range of 6% to 8% year-over-year, Recurring revenue is expected to increase in the range of 4% to 7% year-over-year, Total revenue is expected to increase in the range of 1% to 4% year-over-year, Non-GAAP diluted EPS is expected to be in the range of $1.92 to $2.04, Cash flow from operations is expected to be in the range of $340 million to $380 million and Free cash flow is expected to be in the range of $320 million to $360 million
Positive Outlook
- GAAP diluted EPS is expected to be in the range of $0.10 to $0.14 for Q3 2023.
- Non-GAAP diluted EPS is expected to be in the range of $0.40 to $0.44 for Q3 2023.
- GAAP diluted EPS is increased to now be in the range of $0.74 to $0.86 versus the range of $0.65 to $0.77 previously reported.
- Public cloud ARR is expected to increase in the range of 53% to 57% year-over-year.
- Total ARR is expected to increase in the range of 6% to 8% year-over-year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income