Teradata Reports Third Quarter 2024 Financial Results
Teradata (TDC) reported strong Q3 2024 results with notable cloud business growth. Public cloud ARR reached $570 million, up 26% year-over-year, with a cloud net expansion rate of 120%. GAAP diluted EPS increased 175% to $0.33, while non-GAAP diluted EPS rose 64% to $0.69. Cash flow from operations improved 88% to $77 million. Despite cloud growth, total ARR decreased 3% to $1.482 billion. The company increased its full-year 2024 EPS guidance and expects public cloud ARR growth of 18-22% in constant currency.
Teradata (TDC) ha riportato risultati solidi per il terzo trimestre del 2024, con una crescita notevole nel settore del cloud. L'ARR del cloud pubblico ha raggiunto 570 milioni di dollari, con un incremento del 26% rispetto all'anno precedente, e un tasso di espansione netta del cloud del 120%. L'EPS diluito GAAP è aumentato del 175%, attestandosi a 0,33 dollari, mentre l'EPS diluito non-GAAP è cresciuto del 64%, arrivando a 0,69 dollari. Il flusso di cassa dalle operazioni è migliorato dell'88%, portandosi a 77 milioni di dollari. Nonostante la crescita del cloud, l'ARR totale è diminuito del 3%, scendendo a 1,482 miliardi di dollari. L'azienda ha rivisto al rialzo le previsioni per l'EPS dell'intero anno 2024, prevedendo una crescita dell'ARR del cloud pubblico tra il 18% e il 22% a valuta costante.
Teradata (TDC) reportó resultados sólidos en el tercer trimestre de 2024, con un notable crecimiento en el negocio de la nube. La ARR de la nube pública alcanzó 570 millones de dólares, un aumento del 26% en comparación con el año anterior, con una tasa de expansión neta de la nube del 120%. El EPS diluido GAAP aumentó un 175% a 0,33 dólares, mientras que el EPS diluido no-GAAP creció un 64% a 0,69 dólares. El flujo de caja de las operaciones mejoró un 88% hasta los 77 millones de dólares. A pesar del crecimiento en la nube, la ARR total disminuyó un 3% a 1,482 mil millones de dólares. La compañía aumentó su guía de EPS para todo el año 2024 y espera un crecimiento de la ARR en la nube pública del 18-22% en moneda constante.
테라데이타 (TDC)는 2024년 3분기 강력한 실적을 보고했으며, 클라우드 비즈니스에서 눈에 띄는 성장을 기록했습니다. 공공 클라우드 ARR은 5억 7천만 달러에 달했으며, 이는 전년 대비 26% 증가한 수치로, 클라우드 순 확장률은 120%에 달했습니다. GAAP 희석 EPS는 175% 증가하여 0.33달러에 이르렀고, 비 GAAP 희석 EPS도 64% 상승하여 0.69달러가 되었습니다. 운영으로부터의 현금 흐름은 88% 개선되어 7천 7백만 달러에 도달했습니다. 클라우드 성장이 있었으나, 총 ARR은 3% 감소하여 14억 8천 2백만 달러가 되었습니다. 이번 회사는 2024년 전체 연도 EPS 지침을 상향 조정했으며, 고정 통화 기준으로 공공 클라우드 ARR의 성장이 18-22%에 이를 것으로 예상하고 있습니다.
Teradata (TDC) a rapporté de solides résultats pour le troisième trimestre de 2024, avec une croissance notable des activités cloud. L'ARR cloud public a atteint 570 millions de dollars, en hausse de 26% par rapport à l'année précédente, avec un taux d'expansion nette des cloud de 120%. Le BPA dilué GAAP a augmenté de 175%, atteignant 0,33 dollar, tandis que le BPA dilué non-GAAP a progressé de 64%, montant à 0,69 dollar. Le flux de trésorerie provenant des opérations s'est amélioré de 88%, atteignant 77 millions de dollars. Malgré la croissance du cloud, l'ARR total a diminué de 3%, s'élevant à 1,482 milliard de dollars. L'entreprise a rehaussé ses prévisions de BPA pour l'année 2024 et prévoit une croissance de l'ARR cloud public de 18 à 22% en monnaie constante.
Teradata (TDC) meldete starke Ergebnisse für das dritte Quartal 2024 mit bemerkenswertem Wachstum im Cloud-Geschäft. Der öffentliche Cloud-ARR erreichte 570 Millionen Dollar, was einem Anstieg von 26% im Jahresvergleich entspricht, mit einer Cloud-Nettoexpansionsrate von 120%. Der verwässerte EPS nach GAAP stieg um 175% auf 0,33 Dollar, während der verwässerte EPS nach Non-GAAP um 64% auf 0,69 Dollar zulegte. Der Cashflow aus der Betriebstätigkeit verbesserte sich um 88% auf 77 Millionen Dollar. Trotz des Wachstums im Cloud-Sektor ging der gesamte ARR um 3% auf 1,482 Milliarden Dollar zurück. Das Unternehmen erhöhte seine EPS-Prognose für das Gesamtjahr 2024 und erwartet ein Wachstum des öffentlichen Cloud-ARR von 18-22% bei konstanten Währungen.
- Public cloud ARR grew 26% YoY to $570 million
- GAAP diluted EPS increased 175% to $0.33
- Non-GAAP diluted EPS rose 64% to $0.69
- Cash flow from operations improved 88% to $77 million
- Recurring revenue increased 3% to $372 million
- Operating margin improved to 12.7% from 6.2%
- Total ARR decreased 3% to $1.482 billion
- Total revenue remained flat at $440 million
- Consulting services revenue declined 14% to $61 million
Insights
Teradata's Q3 2024 results show mixed performance with notable strengths in cloud adoption. Public cloud ARR grew 26% to
Key financial metrics improved significantly:
- GAAP operating margin doubled to
12.7% - Non-GAAP EPS increased
64% to$0.69 - Free cash flow jumped
92% to$69 million
The company's restructuring efforts targeting
The cloud transformation story at Teradata shows strong momentum despite market headwinds. The
However, the declining total ARR suggests challenges in legacy business segments as customers transition to cloud solutions. The hybrid cloud approach appears to be resonating with enterprise customers, but the pace of overall revenue growth remains constrained by this transition period. The updated guidance for
-
Third quarter public cloud ARR of
, an increase of$570 million 26% as reported and24% in constant currency from the prior year period(1) -
Cloud net expansion rate of
120% -
GAAP diluted EPS was
, up$0.33 175% year-over-year -
Non-GAAP diluted EPS was
, up$0.69 64% year-over-year(2) -
Cash flow from operations was
, up$77 million 88% year-over-year -
Free cash flow was
, up$69 million 92% year-over-year(3)
“In the third quarter, we grew our cloud business, delivered innovations that strengthen our market position, and added new customers and partners. We are seeing customers increasingly leverage our hybrid capabilities as they transform and commit to Teradata for the long term,” said Steve McMillan, President and Chief Executive Officer, Teradata. “We firmly believe in Teradata’s differentiated technology and future growth, and we remain focused on accelerating growth and improving execution.”
Third Quarter 2024 Financial Highlights Compared to Third Quarter 2023
-
Public cloud ARR increased to
from$570 million , an increase of$454 million 26% as reported and24% in constant currency(1) -
Total ARR decreased to
from$1.48 2 billion , a decrease of$1.52 4 billion3% as reported and4% in constant currency(1) -
Recurring revenue was
versus$372 million an increase of$360 million 3% as reported and5% in constant currency (1) -
Total revenue was
versus$440 million , flat as reported and an increase of$438 million 2% in constant currency(1) -
Recurring revenue was
85% of total revenue versus82% -
GAAP gross margin was
60.5% versus59.1% -
Non-GAAP gross margin was
61.6% versus60.3% (2) -
GAAP operating margin was
12.7% versus6.2% -
Non-GAAP operating margin was
22.5% versus14.4% (2) -
GAAP diluted EPS was
versus$0.33 per share$0.12 -
Non-GAAP diluted EPS was
versus$0.69 per share(2)$0.42 -
Cash flow from operations was
compared to$77 million $41 million -
Free cash flow was
compared to$69 million (3)$36 million
Outlook
For the fourth quarter of 2024:
-
GAAP diluted EPS is expected to be in the range of
to$0.09 per share$0.13 -
Non-GAAP diluted EPS is expected to be in the range of
to$0.40 per share(2)$0.44
For the full-year 2024, Teradata increases the following ranges:
-
GAAP diluted EPS is expected to be in the range of
to$1.02 per share$1.06 -
Non-GAAP diluted EPS is expected to be in the range of
to$2.30 per share(2)$2.34
Teradata updates the following range:
-
Public cloud ARR growth of
18% to22% year-over-year, in constant currency(4)
Teradata reaffirms the following ranges:
-
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
to$290 million $310 million -
Free cash flow of
to$270 million (3)$290 million
Global Restructuring
Cost actions announced last quarter were initiated during the third quarter of 2024. Teradata remains on track to reduce operating expenses by approximately
Segment Reporting
Additionally, on August 5, 2024, Teradata announced that it has realigned its sales function to optimize operations. Due to this organizational change Teradata now manages its business under two segments, which are also Teradata’s new operating segments: (1) Product Sales and (2) Consulting Services. Prior period segment information has been reclassified to conform to the current period presentation.
Earnings Conference Call
The conference call will begin at 1:30 p.m. PT on November 4, 2024. Investors and participants may attend the call by dialing (404) 975-4839 and entering access code 205954. For investors and participants outside
The live webcast, as well as a replay, will be available on the Investor Relations page of the Teradata 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 September 30 |
||||||||||||
|
2024 |
|
|
2023 |
|
% Change as Reported |
% Change in CC |
||||||
Recurring revenue |
$ |
372 |
|
$ |
360 |
|
|
|
|
||||
Perpetual software licenses, hardware and other |
|
7 |
|
|
|
7 |
|
|
|
|
|
||
Consulting services |
|
61 |
|
|
|
71 |
|
|
( |
|
( |
||
Total revenue |
$ |
440 |
|
|
$ |
438 |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||||||
Product Sales |
$ |
379 |
|
|
$ |
367 |
|
|
|
|
|
||
Consulting Services |
|
61 |
|
|
|
71 |
|
|
( |
|
( |
||
Total revenue |
$ |
440 |
|
|
$ |
438 |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
Revenue |
|||||||||||||
(in millions) |
|||||||||||||
|
For the Nine Months ended September 30 |
||||||||||||
|
2024 |
|
|
2023 |
|
% Change as Reported |
% Change in CC |
||||||
Recurring revenue |
$ |
1,128 |
|
$ |
1,120 |
|
|
|
|
||||
Perpetual software licenses, hardware and other |
|
20 |
|
|
|
33 |
|
|
( |
|
( |
||
Consulting services |
|
193 |
|
|
|
223 |
|
|
( |
|
( |
||
Total revenue |
$ |
1,341 |
|
|
$ |
1,376 |
|
|
( |
|
( |
||
|
|
|
|
|
|
|
|
||||||
Product Sales |
$ |
1,148 |
|
|
$ |
1,153 |
|
|
( |
|
|
||
Consulting Services |
|
193 |
|
|
|
223 |
|
|
( |
|
( |
||
Total revenue |
$ |
1,341 |
|
|
$ |
1,376 |
|
|
( |
|
( |
||
|
|
|
|
|
|
|
|
|
As of September 30 |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
% Change as Reported |
|
% Change in CC |
||
Annual recurring revenue* |
$ |
1,482 |
|
$ |
1,524 |
|
( |
|
( |
||||
Public cloud ARR** |
$ |
570 |
$ |
454 |
|
|
|
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 Nine Months |
|
|
|||||||||||||||||
(in millions, except per share data) |
ended September 30 |
|
|
ended September 30 |
|
|
||||||||||||||||
Gross Profit: |
|
2024 |
|
|
2023 |
|
% Chg. |
|
|
2024 |
|
|
|
2023 |
|
|
% Chg. |
|||||
GAAP Gross Profit |
$ |
266 |
|
$ |
259 |
|
|
|
$ |
815 |
|
|
$ |
837 |
|
|
( |
|||||
% of Revenue |
|
60.5 |
% |
|
59.1 |
% |
|
|
|
60.8 |
% |
|
|
60.8 |
% |
|
|
|||||
|
|
|
|
|
|
|
|
|||||||||||||||
Excluding: |
|
|
|
|
|
|
|
|
||||||||||||||
Stock-based compensation expense |
|
4 |
|
|
4 |
|
|
|
|
13 |
|
|
|
12 |
|
|
|
|||||
Reorganization and transformation cost |
|
1 |
|
|
1 |
|
|
|
|
3 |
|
|
|
1 |
|
|
|
|||||
Non-GAAP Gross Profit |
$ |
271 |
|
$ |
264 |
|
|
|
$ |
831 |
|
|
$ |
850 |
|
|
( |
|||||
% of Revenue |
|
61.6 |
% |
|
60.3 |
% |
|
|
|
62.0 |
% |
|
|
61.8 |
% |
|
|
|||||
|
|
|||||||||||||||||||||
Operating Income |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP Operating Income |
$ |
56 |
|
$ |
27 |
|
|
|
$ |
170 |
|
|
$ |
139 |
|
|
|
|||||
% of Revenue |
|
12.7 |
% |
|
6.2 |
% |
|
|
|
12.7 |
% |
|
|
10.1 |
% |
|
|
|||||
|
|
|
|
|
|
|
|
|||||||||||||||
Excluding: |
|
|
|
|
|
|
|
|
||||||||||||||
Stock-based compensation expense |
|
29 |
|
|
33 |
|
|
|
|
92 |
|
|
|
96 |
|
|
|
|||||
Reorganization and transformation cost |
|
14 |
|
|
3 |
|
|
|
|
22 |
|
|
|
8 |
|
|
|
|||||
Non-GAAP Operating Income |
$ |
99 |
|
$ |
63 |
|
|
|
$ |
284 |
|
|
$ |
243 |
|
|
|
|||||
% of Revenue |
|
22.5 |
% |
|
14.4 |
% |
|
|
|
21.2 |
% |
|
|
17.7 |
% |
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP Net Income |
$ |
32 |
|
$ |
12 |
|
|
|
$ |
89 |
|
|
$ |
69 |
|
|
|
|||||
% of Revenue |
|
7.3 |
% |
|
2.7 |
% |
|
|
|
6.6 |
% |
|
|
5.0 |
% |
|
|
|||||
|
|
|
|
|
|
|
|
|||||||||||||||
Excluding: |
|
|
|
|
|
|
|
|
||||||||||||||
Stock-based compensation expense |
|
29 |
|
|
33 |
|
|
|
|
92 |
|
|
|
96 |
|
|
|
|||||
Reorganization and transformation cost |
|
|
14 |
|
|
|
3 |
|
|
|
|
|
22 |
|
|
|
8 |
|
|
|
||
Argentina Blue Chip Swap |
|
|
- |
|
|
|
- |
|
|
|
|
|
2 |
|
|
|
- |
|
|
|
||
Income tax adjustments(i) |
|
(8 |
) |
|
(5 |
) |
|
|
|
(19 |
) |
|
|
(18 |
) |
|
|
|||||
Non-GAAP Net Income |
|
$ |
67 |
|
|
$ |
43 |
|
|
|
|
$ |
186 |
|
|
$ |
155 |
|
|
|
||
% of Revenue |
|
15.2 |
% |
|
9.8 |
% |
|
|
|
13.9 |
% |
|
|
11.3 |
% |
|
|
|||||
|
|
For the Three Months ended September 30 |
|
For the Nine Months ended September 30 |
|
2024 Outlook |
|||||||||||||||||
Earnings Per Share: |
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Q4 |
|
FY |
|||
GAAP Earnings Per Share |
$ |
0.33 |
|
|
$ |
0.12 |
|
|
$ |
0.91 |
|
|
$ |
0.67 |
|
|
|
|
|
||
Excluding: |
|
|
|
|
|
|
|
|
|
||||||||||||
Stock-based compensation expense |
|
0.30 |
|
|
0.32 |
|
|
|
0.93 |
|
|
|
0.93 |
|
|
0.29 |
|
|
1.23 |
|
|
Reorganization and transformation cost |
|
0.14 |
|
|
0.03 |
|
|
|
0.22 |
|
|
|
0.08 |
|
|
0.08 |
|
|
0.27 |
|
|
Argentina Blue Chip Swap |
|
- |
|
|
|
- |
|
|
|
0.02 |
|
|
|
- |
|
|
- |
|
|
0.02 |
|
Income tax adjustments(i) |
|
(0.08 |
) |
|
|
(0.05 |
) |
|
|
(0.19 |
) |
|
|
(0.17 |
) |
|
(0.06 |
) |
|
(0.24 |
) |
Non-GAAP Diluted Earnings Per Share |
$ |
0.69 |
|
$ |
0.42 |
|
|
$ |
1.89 |
|
|
$ |
1.51 |
|
|
|
|
|
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 September 30, 2024, was |
||
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 |
(in millions) |
For the Three Months |
|
For the Nine Months |
|
|
||||||||||||
|
ended September 30 |
|
ended September 30 |
|
Outlook |
||||||||||||
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
2024 |
||
|
|
|
|
|
|
|
|||||||||||
Cash provided by operating activities (GAAP) |
$ |
77 |
|
$ |
41 |
|
|
$ |
147 |
|
|
$ |
199 |
|
|
|
|
Less total capital expenditures |
|
(8 |
) |
|
(5 |
) |
|
|
(18 |
) |
|
|
(12 |
) |
|
(~20) |
|
Free Cash Flow (non-GAAP measure) |
$ |
69 |
|
$ |
36 |
|
|
$ |
129 |
|
|
$ |
187 |
|
|
|
|
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 and 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 fourth quarter and full year financial. 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; 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
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
Schedule A |
|||||||||||||||||||||
TERADATA CORPORATION | |||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||
(in millions, except per share amounts - unaudited) | |||||||||||||||||||||
For the Period Ended September 30 | |||||||||||||||||||||
Three Months | Nine Months | ||||||||||||||||||||
|
2024 |
|
|
2023 |
|
% Chg |
|
2024 |
|
|
2023 |
|
% Chg | ||||||||
Revenue | |||||||||||||||||||||
Recurring | $ |
372 |
|
$ |
360 |
|
|
$ |
1,128 |
|
$ |
1,120 |
|
|
|||||||
Perpetual software licenses, hardware and other |
|
7 |
|
|
7 |
|
|
|
20 |
|
|
33 |
|
( |
|||||||
Consulting services |
|
61 |
|
|
71 |
|
( |
|
193 |
|
|
223 |
|
( |
|||||||
Total revenue |
|
440 |
|
|
438 |
|
|
|
1,341 |
|
|
1,376 |
|
( |
|||||||
Gross profit | |||||||||||||||||||||
Recurring |
|
261 |
|
|
255 |
|
|
795 |
|
|
810 |
|
|||||||||
% of Revenue |
|
70.2 |
% |
|
70.8 |
% |
|
70.5 |
% |
|
72.3 |
% |
|||||||||
Perpetual software licenses, hardware and other |
|
2 |
|
|
- |
|
|
2 |
|
|
3 |
|
|||||||||
% of Revenue |
|
28.6 |
% |
|
0.0 |
% |
|
10.0 |
% |
|
9.1 |
% |
|||||||||
Consulting services |
|
3 |
|
|
4 |
|
|
18 |
|
|
24 |
|
|||||||||
% of Revenue |
|
4.9 |
% |
|
5.6 |
% |
|
9.3 |
% |
|
10.8 |
% |
|||||||||
Total gross profit |
|
266 |
|
|
259 |
|
|
815 |
|
|
837 |
|
|||||||||
% of Revenue |
|
60.5 |
% |
|
59.1 |
% |
|
60.8 |
% |
|
60.8 |
% |
|||||||||
Selling, general and administrative expenses |
|
137 |
|
|
156 |
|
|
429 |
|
|
476 |
|
|||||||||
Research and development expenses |
|
73 |
|
|
76 |
|
|
216 |
|
|
222 |
|
|||||||||
Income from operations |
|
56 |
|
|
27 |
|
|
170 |
|
|
139 |
|
|||||||||
% of Revenue |
|
12.7 |
% |
|
6.2 |
% |
|
12.7 |
% |
|
10.1 |
% |
|||||||||
Other expense, net |
|
(9 |
) |
|
(14 |
) |
|
(36 |
) |
|
(44 |
) |
|||||||||
Income before income taxes |
|
47 |
|
|
13 |
|
|
134 |
|
|
95 |
|
|||||||||
% of Revenue |
|
10.7 |
% |
|
3.0 |
% |
|
10.0 |
% |
|
6.9 |
% |
|||||||||
Income tax expense |
|
15 |
|
|
1 |
|
|
45 |
|
|
26 |
|
|||||||||
% Tax rate |
|
31.9 |
% |
|
7.7 |
% |
|
33.6 |
% |
|
27.4 |
% |
|||||||||
Net income | $ |
32 |
|
$ |
12 |
|
$ |
89 |
|
$ |
69 |
|
|||||||||
% of Revenue |
|
7.3 |
% |
|
2.7 |
% |
|
6.6 |
% |
|
5.0 |
% |
|||||||||
Net income per common share | |||||||||||||||||||||
Basic | $ |
0.33 |
|
$ |
0.12 |
|
$ |
0.92 |
|
$ |
0.69 |
|
|||||||||
Diluted | $ |
0.33 |
|
$ |
0.12 |
|
$ |
0.91 |
|
$ |
0.67 |
|
|||||||||
Weighted average common shares outstanding | |||||||||||||||||||||
Basic |
|
96.1 |
|
|
99.2 |
|
|
96.7 |
|
|
100.5 |
|
|||||||||
Diluted |
|
97.0 |
|
|
102.0 |
|
|
98.3 |
|
|
102.8 |
|
|||||||||
Schedule B |
|||||||||||
TERADATA CORPORATION | |||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
(in millions - unaudited) | |||||||||||
September 30, | December 31, |
September 30, | |||||||||
|
2024 |
|
|
2023 |
|
|
2023 |
|
|||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ |
348 |
|
$ |
486 |
|
$ |
348 |
|
||
Accounts receivable, net |
|
247 |
|
|
286 |
|
|
286 |
|
||
Inventories |
|
16 |
|
|
13 |
|
|
8 |
|
||
Other current assets |
|
92 |
|
|
84 |
|
|
96 |
|
||
Total current assets |
|
703 |
|
|
869 |
|
|
738 |
|
||
Property and equipment, net |
|
202 |
|
|
239 |
|
|
249 |
|
||
Right of use assets - operating lease, net |
|
6 |
|
|
9 |
|
|
10 |
|
||
Goodwill |
|
399 |
|
|
398 |
|
|
396 |
|
||
Capitalized contract costs, net |
|
49 |
|
|
68 |
|
|
72 |
|
||
Deferred income taxes |
|
215 |
|
|
221 |
|
|
200 |
|
||
Other assets |
|
85 |
|
|
69 |
|
|
75 |
|
||
Total assets | $ |
1,659 |
|
$ |
1,873 |
|
$ |
1,740 |
|
||
Liabilities and stockholders' equity | |||||||||||
Current liabilities | |||||||||||
Current portion of long-term debt | $ |
25 |
|
$ |
19 |
|
$ |
12 |
|
||
Current portion of finance lease liability |
|
60 |
|
|
66 |
|
|
69 |
|
||
Current portion of operating lease liability |
|
4 |
|
|
6 |
|
|
6 |
|
||
Accounts payable |
|
85 |
|
|
100 |
|
|
106 |
|
||
Payroll and benefits liabilities |
|
105 |
|
|
130 |
|
|
120 |
|
||
Deferred revenue |
|
482 |
|
|
570 |
|
|
477 |
|
||
Other current liabilities |
|
114 |
|
|
105 |
|
|
95 |
|
||
Total current liabilities |
|
875 |
|
|
996 |
|
|
885 |
|
||
Long-term debt |
|
461 |
|
|
480 |
|
|
486 |
|
||
Finance lease liability |
|
40 |
|
|
63 |
|
|
70 |
|
||
Operating lease liability |
|
3 |
|
|
6 |
|
|
7 |
|
||
Pension and other postemployment plan liabilities |
|
96 |
|
|
102 |
|
|
91 |
|
||
Long-term deferred revenue |
|
13 |
|
|
22 |
|
|
16 |
|
||
Deferred tax liabilities |
|
8 |
|
|
8 |
|
|
6 |
|
||
Other liabilities |
|
38 |
|
|
61 |
|
|
57 |
|
||
Total liabilities |
|
1,534 |
|
|
1,738 |
|
|
1,618 |
|
||
Stockholders' equity | |||||||||||
Common stock |
|
1 |
|
|
1 |
|
|
1 |
|
||
Paid-in capital |
|
2,166 |
|
|
2,074 |
|
|
2,044 |
|
||
Accumulated deficit |
|
(1,908 |
) |
|
(1,811 |
) |
|
(1,797 |
) |
||
Accumulated other comprehensive loss |
|
(134 |
) |
|
(129 |
) |
|
(126 |
) |
||
Total stockholders' equity |
|
125 |
|
|
135 |
|
|
122 |
|
||
Total liabilities and stockholders' equity | $ |
1,659 |
|
$ |
1,873 |
|
$ |
1,740 |
|
||
Schedule C |
|||||||||||||||
TERADATA CORPORATION | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||
(in millions - unaudited) | |||||||||||||||
For the Period Ended September 30 | |||||||||||||||
Three Months | Nine Months | ||||||||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Operating activities | |||||||||||||||
Net income | $ |
32 |
|
$ |
12 |
|
$ |
89 |
|
$ |
69 |
|
|||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||
Depreciation and amortization |
|
25 |
|
|
27 |
|
|
78 |
|
|
86 |
|
|||
Stock-based compensation expense |
|
29 |
|
|
33 |
|
|
92 |
|
|
96 |
|
|||
Deferred income taxes |
|
(3 |
) |
|
(1 |
) |
|
5 |
|
|
1 |
|
|||
Loss on Blue Chip Swap |
|
- |
|
|
- |
|
|
3 |
|
|
- |
|
|||
Write off of right of use operating lease assets | |||||||||||||||
Changes in assets and liabilities: | |||||||||||||||
Receivables |
|
1 |
|
|
(21 |
) |
|
39 |
|
|
78 |
|
|||
Inventories |
|
6 |
|
|
1 |
|
|
(3 |
) |
|
- |
|
|||
Current payables and accrued expenses |
|
27 |
|
|
21 |
|
|
(37 |
) |
|
(9 |
) |
|||
Deferred revenue |
|
(44 |
) |
|
(40 |
) |
|
(97 |
) |
|
(104 |
) |
|||
Other assets and liabilities |
|
4 |
|
|
9 |
|
|
(22 |
) |
|
(18 |
) |
|||
Net cash provided by operating activities |
|
77 |
|
|
41 |
|
|
147 |
|
|
199 |
|
|||
Investing activities | |||||||||||||||
Expenditures for property and equipment |
|
(8 |
) |
|
(5 |
) |
|
(17 |
) |
|
(11 |
) |
|||
Additions to capitalized software |
|
- |
|
|
- |
|
|
(1 |
) |
|
(1 |
) |
|||
Business acquisitions and other investing activities, including loss on Blue Chip Swap |
|
(2 |
) |
|
(16 |
) |
|
(5 |
) |
|
(16 |
) |
|||
Net cash used in investing activities |
|
(10 |
) |
|
(21 |
) |
|
(23 |
) |
|
(28 |
) |
|||
Financing activities | |||||||||||||||
Repurchases of common stock |
|
(15 |
) |
|
(147 |
) |
|
(186 |
) |
|
(301 |
) |
|||
Repayments of long-term borrowings |
|
(7 |
) |
|
- |
|
|
(13 |
) |
|
- |
|
|||
Payments of finance leases |
|
(17 |
) |
|
(21 |
) |
|
(54 |
) |
|
(62 |
) |
|||
Other financing activities, net |
|
5 |
|
|
7 |
|
|
(1 |
) |
|
6 |
|
|||
Net cash used in financing activities |
|
(34 |
) |
|
(161 |
) |
|
(254 |
) |
|
(357 |
) |
|||
Effect of exchange rate changes on cash and cash equivalents |
|
14 |
|
|
(16 |
) |
|
(8 |
) |
|
(36 |
) |
|||
Increase (decrease) in cash, cash equivalents and restricted cash |
|
47 |
|
|
(157 |
) |
|
(138 |
) |
|
(222 |
) |
|||
Cash, cash equivalents and restricted cash at beginning of period |
|
301 |
|
|
506 |
|
|
486 |
|
|
571 |
|
|||
Cash, cash equivalents and restricted cash at end of period | $ |
348 |
|
$ |
349 |
|
$ |
348 |
|
$ |
349 |
|
|||
Supplemental cash flow disclosure: | |||||||||||||||
Non-cash investing and financing activities: | |||||||||||||||
Assets acquired by finance leases | $ |
7 |
|
$ |
21 |
|
$ |
25 |
|
$ |
80 |
|
|||
Assets acquired by operating leases | $ |
- |
|
$ |
2 |
|
$ |
1 |
|
$ |
6 |
|
|||
Schedule D |
|||||||||||||||||||||||||||
TERADATA CORPORATION | |||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||||||
(in millions - unaudited) | |||||||||||||||||||||||||||
For the Three Months Ended September 30 | For the Nine Months Ended September 30 | ||||||||||||||||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
% Change As Reported |
|
% Change Constant Currency(2) |
|
|
2024 |
|
|
|
2023 |
|
|
% Change As Reported |
|
% Change Constant Currency(2) |
||||
Segment Revenue | |||||||||||||||||||||||||||
Product Sales | $ |
379 |
|
$ |
367 |
|
|
|
$ |
1,148 |
|
$ |
1,153 |
|
( |
|
|||||||||||
Consulting Services |
|
61 |
|
|
71 |
|
( |
( |
|
193 |
|
|
223 |
|
( |
( |
|||||||||||
Total segment revenue |
|
440 |
|
|
438 |
|
|
|
|
1,341 |
|
|
1,376 |
|
( |
( |
|||||||||||
Segment gross profit | |||||||||||||||||||||||||||
Product Sales |
|
265 |
|
|
258 |
|
|
805 |
|
|
820 |
|
|||||||||||||||
% of Revenue |
|
69.9 |
% |
|
70.3 |
% |
|
70.1 |
% |
|
71.1 |
% |
|||||||||||||||
Consulting Services |
|
6 |
|
|
6 |
|
|
26 |
|
|
30 |
|
|||||||||||||||
% of Revenue |
|
9.8 |
% |
|
8.5 |
% |
|
13.5 |
% |
|
13.5 |
% |
|||||||||||||||
Total segment gross profit |
|
271 |
|
|
264 |
|
|
831 |
|
|
850 |
|
|||||||||||||||
% of Revenue |
|
61.6 |
% |
|
60.3 |
% |
|
62.0 |
% |
|
61.8 |
% |
|||||||||||||||
Reconciling items(1) |
|
(5 |
) |
|
(5 |
) |
|
(16 |
) |
|
(13 |
) |
|||||||||||||||
Total gross profit | $ |
266 |
|
$ |
259 |
|
$ |
815 |
|
$ |
837 |
|
|||||||||||||||
% of Revenue |
|
60.5 |
% |
|
59.1 |
% |
|
60.8 |
% |
|
60.8 |
% |
(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/20241031275383/en/
INVESTOR CONTACT
Chad Bennett
chad.bennett@teradata.com
MEDIA CONTACT
Jennifer Donahue
jennifer.donahue@teradata.com
Source: Teradata
FAQ
What was Teradata's (TDC) public cloud ARR growth in Q3 2024?
How much did Teradata's (TDC) EPS increase in Q3 2024?