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Dec 31, 2023
Teradata Q4 2023 Earnings Report
Teradata reported fourth quarter and full year 2023 financial results.
Key Takeaways
Teradata's Q4 2023 results showed a 48% increase in public cloud ARR, reaching $528 million. The company ended the year with strong profitable growth and free cash flow, returning 87% of free cash flow to shareholders. Total revenue increased by 1% to $457 million, and recurring revenue was 81% of total revenue.
Public cloud ARR increased to $528 million, a 48% increase year-over-year.
Total ARR increased to $1.570 billion, a 6% increase year-over-year.
Recurring revenue was $372 million, a 4% increase year-over-year.
Free cash flow was $168 million, compared to $120 million in the prior year.
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 2024, including public cloud ARR growth, total ARR growth, recurring revenue growth, total revenue growth, GAAP diluted EPS, non-GAAP diluted EPS, cash flow from operations, and free cash flow.
Positive Outlook
- Public cloud ARR growth of 35% to 41% year-over-year, in constant currency.
- Total ARR growth of 4% to 8% year-over-year, in constant currency.
- Recurring revenue growth of 1% to 3% year-over-year, in constant currency.
- Total revenue growth of 0% to 2% year-over-year, in constant currency.
- Cash flow from operations of $360 million to $400 million.
Challenges Ahead
- It is impractical to provide a schedule on currency period end rates at a future point in time.
- The guidance involves risks and uncertainties that could cause actual results to differ materially.
- Global economic environment and business conditions in general, including inflation and/or recessionary conditions, could impact results.
- The rapidly changing and intensely competitive nature of the information technology industry, the data analytics business, and artificial intelligence capabilities could impact results.
- Fluctuations in operating, capital allocation, and cash flow results could impact results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income