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Teradata
🇺🇸 NYSE:TDC
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Sep 30, 2021

Teradata Q3 2021 Earnings Report

Teradata's Q3 2021 financial results were announced, demonstrating progress in their ongoing transformation.

Key Takeaways

Teradata reported a 1% increase in total revenue to $460 million, with recurring revenue up 7% to $352 million. Public cloud ARR increased by 83% to $148 million. GAAP EPS was $0.15, and non-GAAP EPS was $0.43. The company also announced an incremental $1 billion share repurchase authorization.

Public cloud ARR increased 83% year-over-year to $148 million.

Recurring revenue increased 7% year-over-year, reaching $352 million and representing 77% of total revenue.

GAAP earnings per diluted share were $0.15, exceeding the previously provided outlook.

Non-GAAP earnings per diluted share were $0.43, also exceeding the previously provided outlook.

Total Revenue
$460M
Previous year: $454M
+1.3%
EPS
$0.43
Previous year: $0.43
+0.0%
GAAP Gross Margin
59.8%
Previous year: 55.9%
+7.0%
Non-GAAP Gross Margin
61.3%
Previous year: 61%
+0.5%
GAAP Operating Margin
6.5%
Previous year: 0.2%
+3150.0%
Gross Profit
$275M
Previous year: $254M
+8.3%
Cash and Equivalents
$613M
Previous year: $533M
+15.0%
Free Cash Flow
$23M
Previous year: $58M
-60.3%
Total Assets
$2.13B
Previous year: $2.12B
+0.8%

Teradata

Teradata

Teradata Revenue by Segment

Teradata Revenue by Geographic Location

Forward Guidance

Teradata updated and affirmed its full-year 2021 outlook. Total ARR is expected to grow at a mid-to-high-single-digit percentage year-over-year. Recurring revenue is expected to grow at a high-single-digit to low-double-digit percentage year-over-year. Total revenue is expected to grow at a low-single-digit to mid-single-digit percentage year-over-year. Cash flow from operations is expected to be approximately $440 million and free cash flow is expected to be at least $400 million.

Positive Outlook

  • GAAP earnings per diluted share is now expected to be in the range of $0.96 to $1.00, up from prior outlook range of $0.78 to $0.82
  • Non-GAAP earnings per diluted share is now expected to be in the range of $2.11 to $2.15, up from prior outlook of $1.92 to $1.96
  • Cash flow from operations is expected to be approximately $440 million
  • Free cash flow is expected to be at least $400 million
  • Total ARR is expected to grow at a mid-to-high-single-digit percentage year-over-year

Challenges Ahead

  • Public cloud ARR is now expected to be approximately 90% year-over-year, or approximately $200 million, down from at least 100% growth year-over-year
  • GAAP diluted EPS for Q4 2021 is expected to be in the range of $(0.05) to $(0.01)
  • Non-GAAP diluted EPS for Q4 2021 is expected to be in the range of $0.25 to $0.29
  • Possible timing volatility around the close dates of some of the very large pipeline enterprise deals
  • Still seeing timing volatility around the close dates of some of our very large pipeline enterprise deals

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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