PDF Teradata Reports Fourth-Quarter and Full-Year 2021 Financial Results Only Teradata gives you the flexibility to handle the massive and mixed data workloads of the future, today. ET, after the data management specialist reported fourth-quarter 2021 earnings last night -- and beat. 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. Reconciling items include stock-based compensation, capitalized software, amortization of acquisition-related intangible assets and acquisition, integration and reorganization-related items. "With a strong margin profile but still in recovery from the prior cyber-attack, we think SWI could be an interesting PE candidate for a firm that could leverage a growing SaaS portfolio, unique low-touch sales model and high margins," RBC analysts wrote. Note to Investors
"We would note M&A activity has remained elevated in security.". And its pro forma number was roughly twice its predicted pro forma profit of $0.25 to $0.29 for the quarter. I am proud of our team's steadfast focus on execution and operational excellence that enabled us to meet or beat every element of our "We wonder if Dropbox would be better off as part of a larger technology platform, given we believe content management could be more valuable once integrated and cross-sold with other collaboration solutions," RBC analysts wrote. 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. For estimates of free cash flow for fiscal 2022 and fiscal 2025, Teradata is not providing a reconciliation to the most comparable GAAP measure (cash provided by operating activities estimate) as non-GAAP adjustments relate to events that have not yet occurred and would be unreasonably burdensome to forecast. Moving to the cloud would be a "massive disruption.". PDF Teradata Announces Preliminary First Quarter Fiscal 2021 Financial Large companies look to score tools at a discount while private-equity firms also eye takeovers. As a result of these adjustments, the Companys non-GAAP effective tax rate for the three months ended December 31, 2021 was 21% and December 31, 2020 was 26.3%. 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. Public cloud ARR is expected to increase by approximately 80% year-over-year. "We still believe edge computing is a real opportunity and that FSLY has good technology, which could be attractive to an acquirer," RBC analysts wrote. Non-GAAP diluted EPS is expected to be in the range of $1.82 to $1.92. At the Investor Day event, Teradatas new leadership team outlined its three foundational cornerstones for long-term growth and value creation: Continued Strong Financial Performance Through Fiscal 2025 and Beyond. CONDENSED CONSOLIDATED STATEMENTS OF INCOME, (in millions, except per share amounts - unaudited), CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS. Total revenue is expected to be flat-to-low-single-digit percentage growth year-over-year. As described below, the Company believes that free cash flow is a useful non-GAAP measure for investors. GAAP profits are predicted to range from $0.75 to $0.85 -- much weaker than in 2021. That would make it an interesting candidate for a private-equity firm who wants to invest in cloud-data analytics, they wrote. Teradata Reports Fourth-Quarter and Full-Year 2021 Financial Results Forward-looking statements generally relate to opinions, beliefs, and projections of expected future financial and operating performance, business trends, and market conditions, among other things. Is this step a sign of an IBM takeover? 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. Why it's an acquisition target: Teradata has been in the process of transitioning to the cloud, and has so far been successful, RBC analysts wrote. 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. 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. News and Press Releases | Teradata Additional information regarding Teradatas operating results is provided below as well as on Teradatas website at investor.teradata.com. Teradata Market Cap: $3.2 billion What it does: Teradata makes software for cloud databases and analytics. Fourth-Quarter 2021 Financial Highlights Compared to Fourth-Quarter 2020. It seems the deal may be multi-territory as The Register has seen documents indicating IBM is answering tickets on behalf of Teradata in Europe. In particular, free cash flow indicates the amount of cash generated after capital expenditures for, among other things, investment in the Companys existing businesses, strategic acquisitions, strengthening the Companys balance sheet, repurchase of the Companys stock and repayment of the Companys debt obligations, if any. Why it's an acquisition target: Jana Partners, a group of activist investors, is targeting New Relic and preparing to explore a potential sale to private equity, Reuters reported in July. What it does: Nutanix makes IT-infrastructure hardware and is currently transitioning from licensing to a software-subscription model. Teradatas 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. The software industry is expecting more M&A as software valuations continue to drop. They also note that Microsoft and Google sell their content-management tools as part of a larger suite while Dropbox doesn't have a full-fledged sales team focused on enterprise customers. 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. Download this Press Release. 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? , The Register Biting the hand that feeds IT, Copyright. This release contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934. Teradata (NYSE: TDC) today announced its fourth-quarter and full-year 2021 financial results. Zendesk, which offers customer-service software, was also taken private for $10.2 billion by an investor group, which Hellman & Friedman and Permira led. To more accurately reflect the impact of the expense on a quarterly basis for non-GAAP purposes, the $3 million of tax expense was recognized ratably each quarter in 2020 instead of being included in the marginal effective rate. Telephone: 858-485-2088, Teradata Reports Fourth-Quarter and Full-Year 2021 Financial Results, https://www.businesswire.com/news/home/20220204005518/en/, 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. Teradatas 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. For the twelve months ended December 31, the Companys non-GAAP effective tax rate was 22.4% for 2021 and 23.2% for 2020. "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. Access to the conference call, as well as a replay of the conference call, is available on Teradatas website at investor.teradata.com. Free cash flow does not have a uniform definition under GAAP and, therefore, Teradatas definition may differ from other companies definitions of this measure. GAAP diluted EPS is expected to be in the range of $0.75 to $0.85. Teradata Reports Fourth-Quarter and Full-Year 2021 Financial Results Teradata Vantage is a legacy system used by many large organizations and corporates for storing data and providing it to end users. Acquisition, integration, reorganization related, and other costs, Amortization of acquisition-related intangible assets. "In other words, we believe larger scale debt-financed private-equity takeouts could be unlikely in the near-term," RBC analysts wrote. Why it's an acquisition target: Coupa would be an interesting acquisition for a private-equity firm because "back-office software vendors" are in high demand, RBC analysts wrote. Teradata ( TDC 0.05%) stock surged in morning trading today, up 24.2% as of 10:50 a.m. Don't Buy Teradata's Turnaround Story - Forbes Teradata today provided financial targets through fiscal 2025, including: For fiscal 2022, the company preliminarily estimates: Non-GAAP diluted net earnings per share in fiscal 2022 is expected to be impacted primarily by upfront recurring revenue recognized in fiscal 2021. Why it's an acquisition target: Splunk got a new CEO earlier this year as it undergoes a transition from more traditional on-premise software sales to cloud subscriptions.
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 (NYSE: TDC ) today announced its fourth-quarter and full- year 2021 financial results. February 2, 2021 He Couldn't Beat Teradata. 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. 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. I understand that I may unsubscribe at any time by following the link at the bottom of any such email I receive to visit the Teradata Investor site and completing the Unsubscribe From Email Alerts form. GAAP diluted EPS is expected to be in the range of $0.35 to $0.39. The impact of currency is determined by calculating the prior period results using the current-year monthly average currency rates. They named 16 companies, including pandemic darlings like Zoom and the IT management software firm SolarWinds, which is still reeling from a devastating 2020 hack. 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. Observers fear a haemorrhage of the knowledge required to keep the unique Teradata systems up and running. What it does: Duck Creek Technologies makes cloud software for property-and-casualty-insurance companies. 17095 Via Del Campo
But even there, the GAAP number was well ahead of Teradata's own forecast for a small quarterly loss (the company had promised a loss of $0.01 to $0.05 per share). Why Teradata Stock Just Rocketed 24% | The Motley Fool Heading into a new fiscal year, Teradata says revenue will again grow in the "flat-to-low-single-digit percentage" range in 2022, with public cloud revenue growing 80% and recurring revenue growing in the "low-to-mid-single" digits. GAAP profits for the quarter were only $0.29 per share -- not $0.57. 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. "A larger strategic vendor could deploy more capital than Couchbase could as an independent vendor to target a large and growing opportunity similar to MDB," RBC analysts wrote. We continue to demonstrate our commitment to deliver shareholder value through disciplined capital allocation, including our intention to enter into a $250 million accelerated share repurchase program in the first quarter, enabled by our strong balance sheet and projections of cash flow generation., Fourth-Quarter 2021 Financial Highlights Compared to Fourth-Quarter 2020, Full-Year 2021 Financial Highlights Compared to Full Year 2020. 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. "Going private could be the right move for it to better manage its turnaround path back to market growth," RBC analysts wrote. "Over the course of the last year, we have embarked on a journey to cloud-first and today . Additional information regarding Teradatas operating results is provided below as well as on Teradatas website at investor.teradata.com.
Teradata is the connected multi-cloud data platform for enterprise analytics company. Free cash flow does not represent the residual cash flow available for discretionary expenditures since there may be other nondiscretionary expenditures that are not deducted from the measure. christopher.lee@teradata.com
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. Acquisitions by Teradata | Tracxn 3. 858-485-2523 office
Invest better with The Motley Fool. 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.