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