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Teradata
🇺🇸 NYSE:TDC
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Dec 31, 2022

Teradata Q4 2022 Earnings Report

Teradata reported strong Q4 2022 financial results, achieving its largest quarter of cloud growth ever and meeting or beating every element of its annual outlook.

Key Takeaways

Teradata's Q4 2022 results showed a decrease in total revenue by 5% as reported, but was flat in constant currency. Public cloud ARR increased by 77% to $357 million. The company increased its return of free cash flow target to 75% from 50%.

Public cloud ARR of $357 million, an increase of 77% as reported and 81% in constant currency from the prior year period.

Fourth quarter recurring revenue of $357 million, a decrease of 2% as reported and an increase of 3% in constant currency from the prior year period.

Recurring revenue was 79% of total revenue in the fourth quarter, up from 77% in the prior year period.

Fourth quarter Non-GAAP diluted earnings per share of $0.35.

Total Revenue
$452M
Previous year: $475M
-4.8%
EPS
$0.35
Previous year: $0.57
-38.6%
GAAP Gross Margin
58.2%
Previous year: 61.9%
-6.0%
Non-GAAP Gross Margin
59.5%
Previous year: 63.2%
-5.9%
GAAP Operating Margin
2.4%
Previous year: 10.5%
-77.1%
Gross Profit
$263M
Previous year: $294M
-10.5%
Cash and Equivalents
$569M
Previous year: $592M
-3.9%
Free Cash Flow
$120M
Previous year: $85M
+41.2%
Total Assets
$2.02B
Previous year: $2.17B
-6.8%

Teradata

Teradata

Teradata Revenue by Segment

Teradata Revenue by Geographic Location

Forward Guidance

Teradata provided financial guidance for the full year 2023, including expectations for public cloud ARR, total ARR, recurring revenue, total revenue, GAAP diluted EPS, non-GAAP diluted EPS, cash flow from operations, and free cash flow. The company also provided guidance for the first quarter of 2023.

Positive Outlook

  • 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 $1.90 to $2.06

Challenges Ahead

  • Cash flow from operations is expected to be in the range $345 million to $385 million
  • Free cash flow is expected to be in the range of $320 million to $360 million
  • GAAP diluted EPS is expected to be in the range of $0.63 to $0.79
  • GAAP diluted EPS is expected to be in the range of $0.32 to $0.36 for Q1 2023
  • Non-GAAP diluted EPS is expected to be in the range of $0.60 to $0.64 for Q1 2023

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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