Teradata Reports Second Quarter 2024 Financial Results

Rhea-AI Summary

Teradata announced its second quarter 2024 financial results, noting significant performance in cloud services but a decline in overall revenue.

Key highlights include:

• Public cloud ARR of $542M, up 31% year-over-year
• GAAP operating margin of 15.1%, up 800 basis points
• Non-GAAP operating margin of 22%, up 640 basis points
• GAAP diluted EPS of $0.38, up 124%
• Non-GAAP diluted EPS of $0.64, up 33%

However, total ARR decreased by 4% and total revenue fell by 6% to $436M.

The company also announced a global restructuring plan to optimize operations, reducing its workforce by 9-10%. This is expected to cut operating expenses by $75M-$80M annually, though initial costs will be $45M-$50M.

For Q3 2024, Teradata forecasts GAAP diluted EPS of $0.14-$0.18 and non-GAAP diluted EPS of $0.54-$0.58. Full-year 2024 guidance includes public cloud ARR growth of 28%-32% and total ARR decline of 2%-4%.

Positive

• Public cloud ARR increased 31% to $542M.
• GAAP operating margin rose to 15.1%, an increase of 800 basis points.
• Non-GAAP operating margin improved to 22%, up 640 basis points.
• GAAP diluted EPS increased by 124% to $0.38.
• Non-GAAP diluted EPS grew by 33% to $0.64.

Negative

• Total ARR decreased by 4% to $1.465B.
• Total revenue declined by 6% to $436M.
• Recurring revenue fell 1% to $368M.
• Cash flow from operations decreased to $43M from $49M.
• Free cash flow dropped to $39M from $46M.

Insights

Financial Analyst

Teradata's Q2 2024 results show mixed performance. Public cloud ARR grew impressively by 31% year-over-year to $542 million, indicating strong traction in cloud adoption. However, total ARR declined 4% to $1.465 billion, suggesting challenges in other segments.

Profitability improved significantly, with GAAP operating margin up 800 basis points to 15.1% and non-GAAP operating margin up 640 basis points to 22%. This led to a 124% increase in GAAP EPS to $0.38 and a 33% rise in non-GAAP EPS to $0.64.

The announced restructuring, reducing workforce by 9-10%, aims to cut costs by $75-80 million annually. This could boost profitability but may impact growth capabilities. The outlook for FY2024 remains cautious, with total revenue expected to decline 2-4% in constant currency.

Tech Industry Analyst

Teradata's results reflect the ongoing shift in the data analytics industry towards cloud-based solutions. The 32% constant currency growth in public cloud ARR demonstrates strong market demand for cloud analytics platforms. However, the decline in total ARR suggests challenges in transitioning existing customers from on-premises to cloud solutions.

The company's focus on improving operational efficiency is evident in the significant margin improvements. The restructuring plan, while potentially disruptive in the short term, aligns with industry trends of optimizing operations for cloud-centric business models.

Teradata's emphasis on AI and analytics positions it well in a market increasingly driven by data-intensive applications. However, competition from cloud giants and specialized analytics providers remains fierce, necessitating continued innovation and efficient execution to maintain market position.

Market Research Analyst

Teradata's Q2 results highlight the company's transition phase. The robust 123% cloud net expansion rate indicates strong upsell potential among existing cloud customers. However, the overall revenue decline of 6% (3% in constant currency) suggests challenges in other business segments.

The shift in revenue mix, with recurring revenue now accounting for 84% of total revenue (up from 80%), aligns with industry trends towards subscription-based models. This could provide more stable, predictable revenue streams in the long term.

The company's updated outlook for FY2024, projecting 28-32% public cloud ARR growth but a 2-4% decline in total revenue, reflects the ongoing balancing act between growth in new areas and potential declines in legacy business. The market will likely focus on Teradata's ability to accelerate cloud growth while managing the transition of its existing customer base.

• Second quarter public cloud ARR of $542 million, an increase of 31% as reported and 32% in constant currency from the prior year period⁽¹⁾
• Cloud net expansion rate of 123%
• GAAP operating margin was 15.1%, up 800 basis points year-over-year
• Non-GAAP operating margin was 22.0%, up 640 basis points year-over-year⁽²⁾
• GAAP diluted EPS was $0.38, up 124% year-over-year
• Non-GAAP diluted EPS was $0.64, up 33% year-over-year⁽²⁾

SAN DIEGO--(BUSINESS WIRE)-- Teradata (NYSE: TDC) today announced its second quarter 2024 financial results.

“Teradata delivered another quarter of strong growth in Cloud ARR, increasing 32% in constant currency, and we maintained our robust 123% net expansion rate in the cloud,” said Steve McMillan, President and Chief Executive Officer, Teradata. “We are taking decisive action across the business to improve our execution and efficiency to reaccelerate profitable growth. The underlying fundamentals of our business are strong. In a world where analytics and AI underpin a company’s success, our hybrid cloud platform and foundation of trusted data and analytics are what they need to consistently deliver value to their business.”

Second Quarter 2024 Financial Highlights Compared to Second Quarter 2023

• Public cloud ARR increased to $542 million from $414 million, an increase of 31% as reported and 32% in constant currency⁽¹⁾
• Total ARR decreased to $1.465 billion from $1.523 billion, a decrease of 4% as reported and 3% in constant currency⁽¹⁾
• Recurring revenue was $368 million versus $371 million a decrease of 1% as reported and an increase of 2% in constant currency ⁽¹⁾
• Total revenue was $436 million versus $462 million, a decrease of 6% as reported and 3% in constant currency⁽¹⁾
• Recurring revenue was 84% of total revenue versus 80%
• GAAP gross margin was 60.8% versus 59.7%
• Non-GAAP gross margin was 62.2% versus 60.6%⁽²⁾
• GAAP operating income was $66 million versus $33 million
• Non-GAAP operating income was $96 million versus $72 million⁽²⁾
• GAAP diluted EPS was $0.38 versus $0.17 per share
• Non-GAAP diluted EPS was $0.64 versus $0.48 per share⁽²⁾
• Cash flow from operations was $43 million compared to $49 million
• Free cash flow was $39 million compared to $46 million⁽³⁾

Restructuring Action

Teradata announced that it has realigned its sales function and initiated global restructuring and cost reduction actions to optimize operations, reduce non-revenue generating expenses, and drive efficiencies for long-term growth and profitability, resulting in a reduction of approximately 9% to 10% of its global workforce that is expected to result in:

• Operating expenses reducing by approximately $75M to $80M on an annualized run rate. Teradata expects to re-invest a portion of this amount back into revenue generating growth areas.
• Total cash expenditures from severance payments of approximately $45M to $50M, of which payments in 2024 are approximately $30M to $35M. The remaining payments will be made in 2025.
• Non-GAAP operating profit to benefit by approximately $15M to $20M in 2024.

Outlook

For the third quarter of 2024:

• GAAP diluted EPS is expected to be in the range of $0.14 to $0.18 per share
• Non-GAAP diluted EPS is expected to be in the range of $0.54 to $0.58 per share⁽²⁾

For the full-year 2024, Teradata updates the following ranges:

• Public cloud ARR growth of 28% to 32% year-over-year, in constant currency⁽⁴⁾
• Total ARR in the range of -2% to -4% year-over-year, in constant currency⁽⁴⁾
• Recurring revenue in the range of flat to -2% year-over-year, in constant currency⁽⁴⁾
• Total revenue in the range of -2% to -4% year-over-year, in constant currency⁽⁴⁾
• Cash flow from operations of $290 million to $310 million
• Free cash flow of $270 million to $290 million⁽³⁾
• GAAP diluted EPS is expected to be in the range of $0.89 to $0.95 per share
• Non-GAAP diluted EPS is expected to be in the range of $2.20 to $2.26 per share⁽²⁾

Earnings Conference Call

A conference call is scheduled for today at 2:00 p.m. PT to discuss the Company’s second quarter 2024 results, 2024 outlook, and provide a business and financial update. Access to the conference call, as well as a replay of the conference call, is available on Teradata’s website at investor.teradata.com.

Supplemental Financial Information

Additional information regarding Teradata’s operating results is provided below as well as on Teradata’s website at investor.teradata.com.

1.

The impact of currency is determined by calculating the prior-period results using the current-year monthly average currency rates. See the foreign currency fluctuation schedule, which is used to determine revenue on a constant currency (“CC”) basis, on the Investor Relations page of the Company’s website at investor.teradata.com.

Revenue
(in millions)
	For the Three Months ended June 30
		2024				2023			% Change as Reported			% Change in CC
Recurring revenue	$	368			$	371			(1%)			2%
Perpetual software licenses, hardware and other		5				13			(62%)			(58%)
Consulting services		63				78			(19%)			(15%)
Total revenue	$	436			$	462			(6%)			(3%)
Americas	$	250			$	268			(7%)			(4%)
EMEA		116				118			(2%)			2%
APJ		70				76			(8%)			(4%)
Total revenue	$	436			$	462			(6%)			(3%)

Revenue
(in millions)
	For the Six Months ended June 30
		2024				2023			% Change as Reported			% Change in CC
Recurring revenue	$	756			$	760			(1%)			1%
Perpetual software licenses, hardware and other		13				26			(50%)			(49%)
Consulting services		132				152			(13%)			(9%)
Total revenue	$	901			$	938			(4%)			(2%)
Americas	$	527			$	560			(6%)			(4%)
EMEA		241				235			3%			4%
APJ		133				143			(7%)			(2%)
Total revenue	$	901			$	938			(4%)			(2%)

	As of June 30
		2024				2023			% Change as Reported			% Change in CC
Annual recurring revenue*	$	1,465			$	1,523			(4%)			(3%)
Public cloud ARR**	$	542			$	414			31%			32%

The impact of currency on ARR is determined by calculating the prior period ending ARR using the current period end currency rates.

* Annual recurring revenue (“ARR”) is defined as the annual value at a point in time of all recurring contracts, including subscription, cloud, software upgrade rights, and maintenance. Total ARR does not include managed services and third-party software. The Company believes this is a useful metric to investors as it demonstrates progress toward achieving our strategic objectives as outlined in the Form 10-K and Form 10-Q.

** Public cloud ARR is defined as the annual value at a point in time of all contracts related to public cloud implementations of Teradata VantageCloud and does not include ARR related to private or managed cloud implementations. The Company believes this is a useful metric to investors as it demonstrates progress toward achieving our strategic objectives as outlined in the Form 10-K and Form 10-Q.

2.		Teradata reports its results in accordance with GAAP. However, as described below, the Company believes that certain non-GAAP measures such as free cash flow, non-GAAP gross profit, non-GAAP operating income, non-GAAP net income, and non-GAAP diluted earnings per share, all of which exclude certain items, and which may be reported on a constant currency basis, are useful for investors. Our non-GAAP measures are not meant to be considered in isolation to, as substitutes for, or superior to, results determined in accordance with GAAP, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Each of our non-GAAP measures do not have a uniform definition under GAAP and therefore, Teradata’s definition may differ from other companies’ definitions of these measures.
		The following tables reconcile Teradata’s actual and projected results and EPS under GAAP to the Company’s actual and projected non-GAAP results and EPS for the periods presented, which exclude certain specified items. Our management internally uses supplemental non-GAAP financial measures, such as gross profit, operating income, net income, and EPS, excluding certain items, to understand, manage and evaluate our business and support operating decisions on a regular basis. The Company believes such non-GAAP financial measures (1) provide useful information to investors regarding the underlying business trends and performance of the Company’s ongoing operations, (2) are useful for period-over-period comparisons of such operations and results, that may be more easily compared to peer companies and allow investors a view of the Company’s operating results excluding stock-based compensation expense and special items, (3) provide useful information to management and investors regarding present and future business trends, and (4) provide consistency and comparability with past reports and projections of future results.

		For the Three Months											For the Six Months
(in millions, except per share data)		ended June 30											ended June 30
Gross Profit:			2024				2023			% Chg.				2024				2023			% Chg.
GAAP Gross Profit		$	265			$	276			(4%)			$	549			$	578			(5%)
% of Revenue			60.8	%			59.7	%						60.9	%			61.6	%
Excluding:
Stock-based compensation expense			5				4							9				8
Reorganization and transformation cost			1				-							2				-
Non-GAAP Gross Profit		$	271			$	280			(3%)			$	560			$	586			(4%)
% of Revenue			62.2	%			60.6	%						62.2	%			62.5	%
Operating Income
GAAP Operating Income		$	66			$	33			100%			$	114			$	112			2%
% of Revenue			15.1	%			7.1	%						12.7	%			11.9	%
Excluding:
Stock-based compensation expense			29				35							63				63
Reorganization and transformation cost			1				4							8				5
Non-GAAP Operating Income		$	96			$	72			33%			$	185			$	180			3%
% of Revenue			22.0	%			15.6	%						20.5	%			19.2	%
Net Income
GAAP Net Income		$	37			$	17			118%			$	57			$	57			-
% of Revenue			8.5	%			3.7	%						6.3	%			6.1	%
Excluding:
Stock-based compensation expense			29				35							63				63
Reorganization and transformation cost			1				4							8				5
Argentina Blue Chip Swap			-				-							2				-
Income tax adjustments(i)			(5	)			(7	)						(11	)			(13	)
Non-GAAP Net Income		$	62			$	49			27%			$	119			$	112			6%
% of Revenue			14.2	%			10.6	%						13.2	%			11.9	%

	For the Three Months ended June 30								For the Six Months ended June 30								2024 Outlook
Earnings Per Share:		2024				2023				2024				2023			Q3			FY
GAAP Earnings Per Share	$	0.38			$	0.17			$	0.58			$	0.55			$0.14 - $0.18			$0.89 - $0.95
Excluding:
Stock-based compensation expense		0.30				0.34				0.63				0.61			0.31			1.26
Reorganization and transformation cost		0.01				0.04				0.08				0.05			0.18			0.29
Argentina Blue Chip Swap		-				-				0.02				-			-			0.02
Income tax adjustments(i)		(0.05	)			(0.07	)			(0.11	)			(0.13	)		(0.09	)		(0.26	)
Non-GAAP Diluted Earnings Per Share	$	0.64			$	0.48			$	1.20			$	1.08			$0.54 - $0.58			$2.20 - $2.26

i.		Represents the income tax effect of the pre-tax adjustments to reconcile GAAP to Non-GAAP income based on the applicable jurisdictional statutory tax rate of the underlying item. Including the income tax effect assists investors in understanding the tax provision associated with those adjustments and the effective tax rate related to the underlying business and performance of the Company’s ongoing operations. As a result of these adjustments, the Company’s non-GAAP effective tax rate for the three months ended June 30, 2024, was 27.1% and June 30, 2023, was 22.2%. For the six months ended June 30, 2024, was 25.6% and June 30, 2023, was 25.3%.

3.

As described below, the Company believes that free cash flow is a useful non-GAAP measure for investors. Free cash flow does not have a uniform definition under GAAP in the United States and therefore, Teradata's definition may differ from other companies' definitions of this measure. Teradata defines free cash flow as cash provided by/used in operating activities, less capital expenditures for property and equipment and additions to capitalized software. Teradata’s management uses free cash flow to assess the financial performance of the Company and believes it is useful for investors because it relates the operating cash flow of the Company to the capital that is spent to continue and improve business operations. In particular, free cash flow indicates the amount of cash generated after capital expenditures which can be used for among other things, investments in the Company's existing businesses, strategic acquisitions, strengthening the Company’s balance sheet, repurchase of Company stock and repay the Company’s debt obligations. Free cash flow does not represent the residual cash flow available for discretionary expenditures since there may be other non-discretionary expenditures that are not deducted from the measure. This non-GAAP measure should not be considered as a substitute for, or superior to, cash flows from operating activities under GAAP.

(in millions)	For the Three Months								For the Six Months
	ended June 30								ended June 30								Outlook
		2024				2023				2024				2023			2024
Cash provided by operating activities (GAAP)	$	43			$	49			$	70			$	158			$290 to $310
Less total capital expenditures		(4	)			(3	)			(10	)			(7	)		(~20)
Free Cash Flow (non-GAAP measure)	$	39			$	46			$	60			$	151			$270 to $290

4.

We are providing an outlook for the 2024 growth rates for public cloud ARR, total ARR, recurring revenue, and total revenue in constant currency to provide better visibility into the underlying growth of the business. Teradata calculates public cloud ARR and total ARR in constant currency by calculating the prior period ending public cloud ARR or total ARR, as applicable, using the current period end currency rates. It is impractical to provide a schedule on currency period end rates at a future point in time. Teradata calculates recurring revenue and total revenue in constant currency by using the prior-period results with the current-year monthly average currency rates. See the foreign currency fluctuation schedule on the Investor Relations page of the Company’s website at investor.teradata.com to calculate the anticipated impact of currency on the revenue outlook.

Note to Investors

This release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to opinions, beliefs, and projections of expected future financial and operating performance, business trends, liquidity, and market conditions, among other things. These forward-looking statements are based upon current expectations and assumptions and often can be identified by words such as “expect,” “strive,” “looking ahead,” “outlook,” “guidance,” “forecast,” “anticipate,” “continue,” “plan,” “estimate,” “believe,” “will,” “would,” “likely,” “intend,” “potential,” or similar expressions. Forward-looking statements in this release include our 2024 third quarter and full year financial guidance and the 2024 restructuring actions and related anticipated cost savings, charges, savings reinvestment, and cash expenditures. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially, including those relating to: the global economic environment and business conditions in general, including inflation and/or recessionary conditions; the ability of our suppliers to meet their commitments to us; the timing of purchases, migrations, or expansions by our current and potential customers; the rapidly changing and intensely competitive nature of the information technology industry, the data analytics business, and artificial intelligence capabilities; fluctuations in our operating, capital allocation, and cash flow results; our ability to execute and realize the anticipated benefits of our refreshed brand, business transformation program or restructuring and cost saving initiatives, including the 2024 restructuring actions noted in this release; risks inherent in operating in foreign countries, including sanctions, foreign currency fluctuations, and/or acts of war; risks associated with data privacy, cyberattacks and maintaining secure and effective products for our customers, as well as, internal information technology and control systems; the timely and successful development, production or acquisition, availability and/or market acceptance of new and existing products, product features and services, including for artificial intelligence; tax rates; turnover of our workforce and the ability to attract and retain skilled employees; protecting our intellectual property; availability and successful execution of new alliance and acquisition opportunities; subscription arrangements that may be cancelled or fail to be renewed; the impact on our business and financial reporting from the implementation of a new ERP system and changes in accounting rules; and other factors described from time to time in Teradata’s filings with the U.S. Securities and Exchange Commission, including its most recent annual report on Form 10-K, and subsequent quarterly reports on Forms 10-Q or current reports on Forms 8-K, as well as Teradata’s annual report to stockholders. Teradata does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

About Teradata

At Teradata, we believe that people thrive when empowered with trusted information. We offer the most complete cloud analytics and data platform for AI. By delivering harmonized data and trusted AI, we enable more confident decision-making, unlock faster innovation, and drive the impactful business results organizations need most. See how at Teradata.com.

The Teradata logo is a trademark, and Teradata is a registered trademark of Teradata Corporation and/or its affiliates in the U.S. and worldwide.

Schedule A
TERADATA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share amounts - unaudited)
			For the Period Ended June 30
			Three Months											Six Months
				2024				2023			% Chg				2024				2023			% Chg
Revenue
Recurring			$	368			$	371			(1	%)		$	756			$	760			(1	%)
Perpetual software licenses, hardware and other				5				13			(62	%)			13				26			(50	%)
Consulting services				63				78			(19	%)			132				152			(13	%)
Total revenue				436				462			(6	%)			901				938			(4	%)
Gross profit
Recurring				258				264							534				555
% of Revenue				70.1	%			71.2	%						70.6	%			73.0	%
Perpetual software licenses, hardware and other				-				1							-				3
% of Revenue				0.0	%			7.7	%						0.0	%			11.5	%
Consulting services				7				11							15				20
% of Revenue				11.1	%			14.1	%						11.4	%			13.2	%
Total gross profit				265				276							549				578
% of Revenue				60.8	%			59.7	%						60.9	%			61.6	%
Selling, general and administrative expenses				131				167							292				320
Research and development expenses				68				76							143				146
Income from operations				66				33							114				112
% of Revenue				15.1	%			7.1	%						12.7	%			11.9	%
Other expense, net				(11	)			(9	)						(27	)			(30	)
Income before income taxes				55				24							87				82
% of Revenue				12.6	%			5.2	%						9.7	%			8.7	%
Income tax expense				18				7							30				25
% Tax rate				32.7	%			29.2	%						34.5	%			30.5	%
Net income			$	37			$	17						$	57			$	57
% of Revenue				8.5	%			3.7	%						6.3	%			6.1	%
Net income per common share
Basic			$	0.38			$	0.17						$	0.59			$	0.56
Diluted			$	0.38			$	0.17						$	0.58			$	0.55
Weighted average common shares outstanding
Basic				96.5				101.0							97.0				101.2
Diluted				97.4				102.9							98.9				103.3

Schedule B
TERADATA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions - unaudited)
				June 30,				December 31,				June 30,
					2024				2023				2023
Assets
Current assets
Cash and cash equivalents				$	301			$	486			$	504
Accounts receivable, net					248				286				265
Inventories					22				13				9
Other current assets					94				84				102
Total current assets					665				869				880
Property and equipment, net					209				239				250
Right of use assets - operating lease, net					7				9				11
Goodwill					395				398				390
Capitalized contract costs, net					52				68				76
Deferred income taxes					206				221				205
Other assets					88				69				57
Total assets				$	1,622			$	1,873			$	1,869
Liabilities and stockholders' equity
Current liabilities
Current portion of long-term debt				$	25			$	19			$	6
Current portion of finance lease liability					62				66				70
Current portion of operating lease liability					4				6				7
Accounts payable					85				100				113
Payroll and benefits liabilities					85				130				100
Deferred revenue					529				570				526
Other current liabilities					99				105				88
Total current liabilities					889				996				910
Long-term debt					467				480				492
Finance lease liability					48				63				70
Operating lease liability					4				6				8
Pension and other postemployment plan liabilities					93				102				96
Long-term deferred revenue					10				22				7
Deferred tax liabilities					7				8				6
Other liabilities					29				61				62
Total liabilities					1,547				1,738				1,651
Stockholders' equity
Common stock					1				1				1
Paid-in capital					2,131				2,074				2,002
Accumulated deficit					(1,924	)			(1,811	)			(1,668	)
Accumulated other comprehensive loss					(133	)			(129	)			(117	)
Total stockholders' equity					75				135				218
Total liabilities and stockholders' equity				$	1,622			$	1,873			$	1,869

Schedule C
TERADATA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions - unaudited)
		For the Period Ended June 30
		Three Months								Six Months
			2024				2023				2024				2023
Operating activities
Net income		$	37			$	17			$	57			$	57
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			26				31				53				59
Stock-based compensation expense			29				35				63				63
Deferred income taxes			(4	)			(5	)			8				2
Loss on Blue Chip Swap			1				-				3				-
Changes in assets and liabilities:
Receivables			63				76				38				99
Inventories			(6	)			(2	)			(9	)			(1	)
Current payables and accrued expenses			(34	)			11				(64	)			(30	)
Deferred revenue			(47	)			(105	)			(53	)			(64	)
Other assets and liabilities			(22	)			(9	)			(26	)			(27	)
Net cash provided by operating activities			43				49				70				158
Investing activities
Expenditures for property and equipment			(3	)			(2	)			(9	)			(6	)
Additions to capitalized software			(1	)			(1	)			(1	)			(1	)
Business acquisitions and other investing activities, including loss on Blue Chip Swap			(1	)			-				(3	)			-
Net cash used in investing activities			(5	)			(3	)			(13	)			(7	)
Financing activities
Repurchases of common stock			(47	)			(70	)			(171	)			(154	)
Repayments of long-term borrowings			(6	)			-				(6	)			-
Payments of finance leases			(17	)			(21	)			(37	)			(41	)
Other financing activities, net			-				6				(6	)			(1	)
Net cash used in financing activities			(70	)			(85	)			(220	)			(196	)
Effect of exchange rate changes on cash and cash equivalents			(5	)			(10	)			(22	)			(20	)
Decrease in cash, cash equivalents and restricted cash			(37	)			(49	)			(185	)			(65	)
Cash, cash equivalents and restricted cash at beginning of period			338				555				486				571
Cash, cash equivalents and restricted cash at end of period		$	301			$	506			$	301			$	506
Supplemental cash flow disclosure:
Non-cash investing and financing activities:
Assets acquired by finance leases		$	7			$	29			$	18			$	59
Assets acquired by operating leases		$	1			$	3			$	1			$	4

Schedule D
TERADATA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions - unaudited)
		For the Three Months Ended June 30														For the Six Months Ended June 30
			2024				2023			% Change As Reported			% Change Constant Currency(2)				2024				2023			% Change As Reported			% Change Constant Currency(2)
Segment Revenue
Americas		$	250			$	268			(7	%)		(4	%)		$	527			$	560			(6	%)		(4	%)
EMEA			116				118			(2	%)		2	%			241				235			3	%		4	%
APJ			70				76			(8	%)		(4	%)			133				143			(7	%)		(2	%)
Total segment revenue			436				462			(6	%)		(3	%)			901				938			(4	%)		(2	%)
Segment gross profit
Americas			159				164										336				357
% of Revenue			63.6	%			61.2	%									63.8	%			63.8	%
EMEA			71				73										150				147
% of Revenue			61.2	%			61.9	%									62.2	%			62.6	%
APJ			41				43										74				82
% of Revenue			58.6	%			56.6	%									55.6	%			57.3	%
Total segment gross profit			271				280										560				586
% of Revenue			62.2	%			60.6	%									62.2	%			62.5	%
Reconciling items(1)			(6	)			(4	)									(11	)			(8	)
Total gross profit		$	265			$	276									$	549			$	578
% of Revenue			60.8	%			59.7	%									60.9	%			61.6	%

(1)		Reconciling items include stock-based compensation, amortization of acquisition-related intangible assets and acquisition, integration and reorganization-related items.
(2)		The impact of currency is determined by calculating the prior period results using the current-year monthly average currency rates.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240801629328/en/

INVESTOR CONTACT

Chad Bennett

chad.bennett@teradata.com

MEDIA CONTACT

Jennifer Donahue

jennifer.donahue@teradata.com

Source: Teradata

FAQ

What was Teradata's public cloud ARR for Q2 2024?

Teradata's public cloud ARR for Q2 2024 was $542 million, representing a 31% increase year-over-year.

What is Teradata's guidance for Q3 2024 GAAP diluted EPS?

Teradata expects Q3 2024 GAAP diluted EPS to be in the range of $0.14 to $0.18 per share.

How much did Teradata's total revenue decrease in Q2 2024?

Teradata's total revenue decreased by 6% to $436 million in Q2 2024.

What are Teradata's full-year 2024 projections for public cloud ARR growth?

For the full year 2024, Teradata projects public cloud ARR growth of 28% to 32% year-over-year.

How much is Teradata's GAAP diluted EPS for Q2 2024?

Teradata's GAAP diluted EPS for Q2 2024 is $0.38, up 124% year-over-year.