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Dec 31, 2019
Teradata Q4 2019 Earnings Report
Teradata reported results for Q4 2019, driven by a transition to a recurring revenue model.
Key Takeaways
Teradata's Q4 2019 results reflect an ongoing transition to a recurring revenue model. ARR increased 9% and recurring revenue increased 7%. Total revenue was $494 million, compared to $588 million in Q4 2018. The company reported a net loss of $23 million, or $0.21 per share, compared to net income of $15 million, or $0.13 per diluted share, in Q4 2018.
Annual recurring revenue (ARR) increased 9 percent from Q4 2018.
Recurring revenue increased 7 percent from Q4 2018.
Subscription-based transactions comprised 89 percent of the company’s bookings mix in the quarter.
The company doubled its cloud customers.
Teradata
Teradata
Teradata Revenue by Segment
Revenue by Segment
Perpetual Software, Hardware & Other Revenue
CapyFin.comConsulting Services Revenue
CapyFin.com Forward Guidance
ARR and recurring revenue are both expected to increase at least 8 percent for the full year 2020. Full-year 2020 GAAP earnings per share is expected to be $1.43 to $1.47. On a non-GAAP basis, earnings per share is expected to be in the $1.18 to $1.22 range. Recurring revenue in the first quarter of 2020 is expected to be in the $353 million to $355 million range. GAAP earnings per share in the first quarter of 2020 is expected to be in the $1.30 to $1.32 range. Non-GAAP earnings per share in the first quarter is expected to be in the $0.22 to $0.24 range.
Positive Outlook
- ARR is expected to increase at least 8% for FY2020
- Recurring revenue is expected to increase at least 8% for FY2020
- Full-year 2020 GAAP earnings per share is expected to be $1.43 to $1.47
- On a non-GAAP basis, earnings per share is expected to be in the $1.18 to $1.22 range
- Recurring revenue in the first quarter of 2020 is expected to be in the $353 million to $355 million range
Challenges Ahead
- GAAP earnings per share in the first quarter of 2020 is expected to be in the $1.30 to $1.32 range
- Non-GAAP earnings per share, excluding the IP restructuring tax benefit, stock-based compensation expense and other special items, in the first quarter is expected to be in the $0.22 to $0.24 range
- The company’s forecasted first quarter and full-year 2020 GAAP effective tax rates are expected to include $152 million of discrete tax benefit related to an intra-entity asset transfer
- The tax benefit for this intra-entity asset transfer will be recorded as a deferred tax asset in the first quarter of 2020
- The tax deductions for amortization of the IP asset will be recognized in the future
Revenue & Expenses
Visualization of income flow from segment revenue to net income