Cash provided by operating activities (GAAP). "As large IT vendors need a view into both public and on-premise spending, Nutanix could help solve that given its large scale, salesforce, and market opportunity," RBC analysts wrote. "We could see a PE sponsor taking the opportunity to find more low-hanging fruit in the model and finding further margin-expansion opportunities," RBC analysts wrote. The company has made a few small acquisitions of it own as it looks to expand beyond video conferencing into a video-communications platform. The following tables reconcile Teradatas actual and projected results and EPS under GAAP to the Companys actual and projected non-GAAP results and EPS for the periods presented, which exclude certain specified items. 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. The Company believes such non-GAAP financial measures (1) provide useful information to investors regarding the underlying business trends and performance of the Companys 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 Companys 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. "And could even see a traditional networking company like CSCO taking a look at FSLY.". A relatively small bunch were retained after some customers complained, said one insider, but even they are now expected to leave the organisation at the end of this month. 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. This is an increase from at least 70% growth year-over-year, which was previously communicated at Teradatas Investor Day in September 2021. A total of 5 acquisitions came from private equity firms.It has also divested 1 asset.. Teradata's largest acquisition to date was in 2011, when it acquired Teradata - Marketing Applications for $525M. 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. Director (Former Employee) - San Diego, CA - December 22, 2021. Public cloud ARR is defined as the annual value at a point in time of all contracts related to public cloud implementations of Teradata Vantage and does not include ARR related to private or managed cloud implementations. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. Teradata filed a carry back of its 2020 NOL to claim a refund for taxes it paid in 2015, which created a one-time income tax benefit for GAAP reporting purposes for the difference between the 2015 federal statutory tax rate of 35% and the current federal statutory rate of 21%. Adjustments to reconcile net income to net cash provided by operating activities: Effect of exchange rate changes on cash and cash equivalents, Public cloud ARR of $202 million, an increase of 91% as reported from the prior year period, Fourth quarter recurring revenue of $364 million, an increase of 5% as reported from the prior year period, Recurring revenue was 77% of total revenue in the fourth quarter, up from 70% the prior year period, Fourth quarter GAAP earnings per diluted share of $0.29, above the previously provided outlook range of $(0.05) to $(0.01), Fourth quarter Non-GAAP earnings per diluted share of $0.57, above the previously provided outlook range of $0.25 to $0.29, Fourth quarter cash from operations of $95 million and free cash flow of $85 million, Intends to enter into a $250 million accelerated share repurchase program in the first quarter, Public cloud ARR increased to $202 million from $106 million, an increase of 91% as reported and 92% in constant currency, ARR increased to $1.492 billion from $1.425 billion, an increase of 5% as reported and 7% in constant currency, Recurring revenue was $364 million versus $346 million, an increase of 5% as reported and 6% in constant currency, Total revenue was $475 million versus $491 million, a decrease of 3% as reported and 2% in constant currency, Non-GAAP gross margin was 63.2% versus 59.3%, GAAP operating income was $50 million versus $13 million, Non-GAAP operating income was $90 million versus $67 million, GAAP diluted EPS was $0.29 versus $0.04 per share, Non-GAAP diluted EPS was $0.57 versus $0.38, Cash flow from operations was $95 million compared to $56 million, Free cash flow was $85 million compared to $45 million, Recurring revenue was $1.464 billion from $1.309 billion, an increase of 12% as reported and 11% in constant currency, Total revenue was $1.917 billion from $1.836 billion, an increase of 4% as reported and 3% in constant currency, Non-GAAP gross margin was 63.4% versus 58.4%, GAAP operating income was $231 million versus $16 million, Non-GAAP operating income was $393 million versus $230 million, Non-GAAP diluted EPS was $2.43 versus $1.31, Cash flow from operations was $463 million versus $267 million, Free cash flow was $432 million versus $216 million. This non-GAAP measure is not meant to be considered in isolation to, as a substitute 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. Invest better with The Motley Fool. Teradata has invested in multiple sectors such as MarketingTech, Big Data Infrastructure, AdTech and more. What it does: Splunk makes software for IT professionals that sift through and analyze enormous amounts of performance and system data in their networks. I am proud of our teams steadfast focus on execution and operational excellence that enabled us to meet or beat every element of our annual outlook, said Steve McMillan, President and CEO, Teradata. Teradata Vantage is a legacy system used by many large organizations and corporates for storing data and providing it to end users. For the twelve months ended December 31, the Companys non-GAAP effective tax rate was 22.4% for 2021 and 23.2% for 2020. "Even when we outsource elements of the hardware support to reliable third parties, Teradata maintains the overall relationship with the customer and I can confirm that we continue to have hardware support expertise within the company for our on-premises customers.". About Teradata What it does: SolarWinds is an IT management software firm that makes tools to help companies manage their networks, systems, and IT infrastructure. We delivered strong results, driving more than 90% growth in public cloud ARR and significantly growing new cloud customers. In a statement to The Register, the $1.8bn turnover [PDF] company said: "These agreements are always confidential, so all we can say in response to your questions is: Teradata has always been a customer-centric organization and that perspective is a key consideration for all business decisions. In addition, for the non-GAAP operating margin target for fiscal 2025, Teradata is not providing a reconciliation to the most comparable GAAP measure (GAAP operating margin target for fiscal 2025) as non-GAAP adjustments relate to events that have not yet occurred and would be unreasonably burdensome to forecast. Free cash flow does not have a uniform definition under GAAP and, therefore, Teradatas definition may differ from other companies definitions of this measure. Teradata ( TDC 0.05%) stock surged in morning trading today, up 24.2% as of 10:50 a.m. %PDF-1.6 % GAAP diluted EPS is expected to be in the range of $0.35 to $0.39. However, as described below, the Company believes that certain non-GAAP measures such as non-GAAP gross profit, non-GAAP operating income, non-GAAP net income, and non-GAAP earnings per diluted share, or EPS, all of which exclude certain items (as well as free cash flow), and which may be reported on a constant currency basis, are useful for investors. Teradata Highlights its New Strategy and Plan to Deliver Sustainable Growth and Value Creation September 9, 2021 Presents Long-Term Financial Growth Targets, Including More Than $1 Billion in Cloud Annual Recurring Revenue (ARR) and Approximately $550 Million in Free Cash Flow in Fiscal 2025 Reaffirms Fiscal 2021 Financial Outlook What it does: Smartsheet is a project-management tool that allows people to collaborate and automate tasks using a spreadsheet format. Why it's an acquisition target: Zoom saw huge growth during the early days of the pandemic due to the sudden shift to remote work, but since the beginning of this year, its stock has fallen back to pre-2020 levels. Non-GAAP diluted EPS is expected to be in the range of $1.82 to $1.92. Teradata Helps Customers Unlock True Value of their Data with Integration of Teradata VantageCloud and Microsoft Azure Machine Learning Read the press release Feb 22, 2023 Press Teradata Appoints Jose Garces Go-To-Market Vice President of Northern Europe and Southern Europe Read the press release Feb 13, 2023 Press Who could acquire it: Another cloud or software company. Teradata Highlights its New Strategy and Plan to Deliver Sustainable Growth and Value Creation Presents Long-Term Financial Growth Targets, Including More Than $1 Billion in Cloud Annual. "This could make even more sense if the market consolidates up to the platform level," the analysts wrote. This is an increase from at least 70% growth year-over-year, which was previously communicated at Teradatas Investor Day in September 2021. CONDENSED CONSOLIDATED STATEMENTS OF INCOME, (in millions, except per share amounts - unaudited), CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS. What it does: Duck Creek Technologies makes cloud software for property-and-casualty-insurance companies. As described below, the Company believes that free cash flow is a useful non-GAAP measure for investors. 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. Recurring revenue is expected to grow at a low-to-mid-single-digit percentage year-over-year. Teradata is dedicated to helping enterprise businesses around the globe use data analytics to tackle the problems they face every day. Our enterprise analytics solve business challenges from start to scale. What it does: Nutanix makes IT-infrastructure hardware and is currently transitioning from licensing to a software-subscription model. "Additionally, we do believe a large back-office vendor could get interested, though we see this as less likely given SAP, Workday, and Oracle all have competing solutions.". Why Teradata Stock Fell Sharply on Friday, Teradata Corporation (TDC) Q3 2021 Earnings Call Transcript, Teradata Corporation (TDC) Q2 2021 Earnings Call Transcript, U.S. Money Supply Is Doing Something It Hasn't Done in 90 Years, and It May Signal a Big Move for Stocks, Why I Refuse to Chase the Maximum Social Security Benefit, 1 Trillion-Dollar Growth Stock Down 28% You'll Regret Not Buying on the Dip, A Bull Market Is Coming: 3 Stocks to Buy Without Hesitation, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. Teradata (NYSE: TDC) today announced its fourth-quarter and full-year 2021 financial results. "If you don't give them something that's at least as good with a low disruption to make the transition, then just forget it," our source said. Teradata has been caught between conflicting demands of investors impatient to see it execute a cloud-first strategy, and customers uncertain about how highly optimised concurrent queries will work in the cloud. Why it's an acquisition target: Duck Creek Technologies has seen slowing growth in recent quarters, likely due to increased competition from smaller companies, RBC analysts said. The Kings' desire for an experienced starting goaltender was evident when they acquired Korpisalo, as they had hoped for similar success from Cal Petersen, who they signed to a three-year, $15-million contract extension in September 2021. About Teradata Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. The following tables reconcile Teradatas actual and projected results and EPS under GAAP to the Companys actual and projected non-GAAP results and EPS for the periods presented, which exclude certain specified items. A person who asked to remain anonymous pointed out that while systems architects were trying to convince businesses to make the shift to the cloud, users of Teradata systems business analysts who use data to inform important company decisions were less keen. On November 1, 2021, Teradata's Board of Directors authorized an additional $1 billion to be utilized to repurchase Teradata common stock under its open market share repurchase program.. For GAAP purposes, this is a component of the marginal rate and is recognized as tax benefit or expense based on the Companys reported GAAP pre-tax income or loss for the quarter. February 2, 2021 He Couldn't Beat Teradata. But investors seem fine with that today, given that the company nearly doubled its "public cloud" annual recurring revenue and grew the portion of its total revenue that is recurring by 7 full percentage points to 77%. We have long been trusted by our customers but what sets Teradata apart is our unique ability to provide a true hybrid, multi-cloud solution, delivering the best price performance at scale in the industry., McMillan continued, This year we continuously focused on delivering on our commitments, including building our recurring revenue streams into sustainable and profitable revenue and free cash flow. The Companys GAAP effective tax rate for the three and twelve months ended December 31, 2020, includes a net $9 million income tax benefit resulting from the CARES Act of 2020, which allows US corporations a one-time opportunity to claim income tax refunds by allowing a 5-year net operating loss (NOL) carryback for taxable losses incurred in the tax year 2020. "It's like you've got a team that looks after space rockets and a team that looks after Formula One cars. Thoma Bravo acquired Anaplan, which makes similar tools for accounting and financial management, in June in an all-cash transaction valued at about $10.4 billion. That gives the company an interesting view on how quickly companies are transitioning to the cloud, which would make it a valuable acquisition for a large IT company, RBC analysts said. INVESTOR CONTACT 2. GAAP diluted EPS is expected to be in the range of $0.75 to $0.85. Recurring revenue is expected to grow at a high-single-digit to low-double-digit percentage year-over-year; Total revenue is expected to grow at a low-single-digit to mid-single-digit percentage year-over-year; GAAP earnings per diluted share is expected to be in the range of $0.78 to $0.82; Non-GAAP earnings per diluted share, excluding stock-based compensation expense, reorganization-related expenses, and other special items, is expected to be in the range of $1.92 to $1.96, Cash flow from operations is expected to be at least $440 million; and, Free cash flow is expected to be at least $400 million. [email protected]. I am proud of our teams steadfast focus on execution and operational excellence that enabled us to meet or beat every element of our annual outlook, said Steve McMillan, President and CEO, Teradata. To ensure the most secure and best overall experience on our website, we recommend the latest versions of, Perpetual software licenses, hardware and other, Selling, general and administrative expenses, Right of use assets - operating lease, net, Current portion of finance lease liability, Current portion of operating lease liability, Pension and other postemployment plan liabilities. Teradata reports its results in accordance with GAAP. For the year, Teradata grew its sales 4% to $1.9 billion (but with 12% growth in recurring revenue), added 640 basis points to its gross margin (now 61.9%), and reported $1.30 per share -- GAAP -- on the bottom line. Jana Partners is also the activist firm that pushed Zendesk to be acquired by a group of private equity firms led by Hellman & Friedman and Permira. That likely makes the company a target for private-equity firms. 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. "Going private could be the right move for it to better manage its turnaround path back to market growth," RBC analysts wrote. The one-time tax benefit for this intra-entity asset transfer of $157 million was recorded as a deferred tax asset for GAAP reporting purposes in the first quarter of 2020 but was excluded from Non-GAAP results. Reaffirms Fiscal 2021 Financial Outlook. 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. 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 Companys ongoing operations. To receive notifications via email, enter your email address and select at least one subscription below. The Companys full-year 2020 GAAP marginal effective tax rate included $3 million of tax expense related to tax contingencies pursuant to FIN 48. GAAP profits are predicted to range from $0.75 to $0.85 -- much weaker than in 2021. We delivered strong results, driving more than 90% growth in public cloud ARR and significantly growing new cloud customers. Cash provided by operating activities (GAAP). What it does: Coupa makes software to help companies manage their spend and includes tools for financial management, accounting, and other back-office functions. By providing my email address and clicking sign up I consent that Q4 Inc. may occasionally send me the communications I have selected to receive above on behalf of Teradata. However, lately it has been facing issues with customer retention after a surge in usage during the pandemic, RBC analysts said. The impact of currency is determined by calculating the prior period results using the current-year monthly average currency rates. Why it's an acquisition target: RBC and other analysts have seen Dropbox as a potential acquisition target for a while. 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. Teradata is the connected multi-cloud data platform for enterprise analytics company. 17095 Via Del Campo Why it's an acquisition target: In 2020, SolarWinds faced a cyberattack that spread to its clients and wreaked havoc on the company. Cost basis and return based on previous market day close. As described below, the Company believes that free cash flow is a useful non-GAAP measure for investors. 2023 Phase one of GMH, in Gulf of Guinea's Punta Europa, started delivering gas in February 2021. 10131 0 obj <>stream MEDIA CONTACT To make the world smarter, happier, and richer. All of which positions us to achieve over $1 billion in Cloud ARR(1) and approximately $550 million in free cash flow(2) in fiscal 2025 and deliver significant long-term value to our shareholders.. "We think Splunk is too good a business/asset to trade where it is and believe the work undergone from a product and go-to-market perspective, along with a new CEO should position the company as a good investment going forward with good execution," RBC analysts wrote. And while there have been several large strategic acquisitions recently including Adobe's bid for Figma, which was the largest ever for a private-software company, and Salesforce's $27 billion deal for Slack Rishi Jaluria, an analyst at RBC, sees smaller-scale M&A as more realistic in the current economic environment. 1. This non-GAAP measure is not meant to be considered in isolation to, as a substitute 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. While its growth has made it less of an acquisition target, RBC analysts wrote that any "misstep" would make it an attractive candidate for a private-equity firm to acquire. Teradata Columnar, a transformative advance in database technology that fully integrates columnar and row-based tables, launches. We look forward to delivering ongoing innovation for our customers, maintaining our ethos of strong corporate citizenship, and driving profitable growth and long-term value creation for our shareholders., Teradata is raising its 2022 outlook for public cloud ARR and EPS, as well as increasing the return of capital to shareholders, said Claire Bramley, Chief Financial Officer, Teradata. All rights reserved 19982023, Funny way to describe a company that makes toilet cleaner, ChatGPT is just the beginning: CISOs need to prepare for the next wave of AI-powered attacks, Reworked use of object storage changes footing with competitors but will need to convince devs, Calls time on interactions and services with customers, including state-owned bank Sberbank, Perpetual software and hardware licenses dive in Q4, consultancy withers on vine, State-owned Sberbank's software contracts under scrutiny, Teradata also sees wings clipped in ongoing battle with German ERP giant, On-prem systems hold advantages in terms of known costs, say insiders, Amazon Web Services (AWS) Business Transformation, Can Teradata avoid being grounded by on-prem legacy? Fellow workers are not helpful, and the environment is not a collaborative, innovative, team oriented environment. Jennifer Donahue 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 or on the ability of our suppliers to meet their commitments to us, or the timing of purchases by our current and potential customers; the rapidly changing and intensely competitive nature of the information technology industry and the data analytics business; fluctuations in our operating results; our ability to execute and realize the anticipated benefits of our business transformation program or other restructuring and cost saving initiatives; risks inherent in operating in foreign countries, including foreign currency fluctuations; risks associated with the ongoing and uncertain impact of the COVID-19 pandemic on our business, financial condition and operating results and on our customers and suppliers; 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; 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 changes in accounting rules; and other factors described from time to time in Teradatas 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 Teradatas annual report to stockholders. Amortization of acquisition-related - intangible assets 0.01 0.01 Acquisition, integration, reorganization-related, and other costs Acquisition, integration, reorganization related, and other costs, Amortization of acquisition-related intangible assets. Why it's an acquisition target: Teradata has.