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