Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Teradata Reports First Quarter 2022 Financial Results By: Teradata via Business Wire May 05, 2022 at 16:05 PM EDT Public cloud ARR of $209 million, an increase of 69% as reported and 70% in constant currency from the prior year period(1) First quarter total revenue of $496 million, an increase of 1% as reported and 4% in constant currency(1) First quarter recurring revenue of $386 million, an increase of 4% as reported and 6% in constant currency from the prior year period(1) First quarter GAAP earnings per diluted share of $0.33 First quarter Non-GAAP earnings per diluted share of $0.65(2) First quarter cash from operations of $151 million and free cash flow of $150 million (3) Teradata (NYSE: TDC) today announced its first quarter 2022 financial results. “We are off to a solid start in 2022, with another quarter of strong profitable growth and free cash flow generation,” said Steve McMillan, President and CEO, Teradata. “Our outlook for Cloud ARR growth is on track and customers are expanding their Teradata cloud environments as they recognize the value of our market-leading enterprise price performance. Companies are increasingly relying on data and analytics, and placing their trust in Teradata to help them turn data into the best business outcomes.” First Quarter 2022 Financial Highlights Compared to First Quarter 2021 Public cloud ARR increased to $209 million from $124 million, an increase of 69% as reported and 70% in constant currency(1) Total ARR increased to $1.427 billion from $1.404 billion, an increase of 2% as reported and 3% in constant currency(1) Total revenue was $496 million versus $491 million, an increase of 1% as reported and 4% in constant currency(1) Recurring revenue was $386 million versus $372 million, an increase of 4% as reported and 6% in constant currency(1) Recurring revenue was 78% of total revenue in the first quarter, up from 76% the prior year period GAAP gross margin was 60.7% versus 62.5% Non-GAAP gross margin was 62.9% versus 64.2%(2) GAAP operating income was $68 million versus $81 million Non-GAAP operating income was $115 million, flat versus last year(2) GAAP diluted EPS was $0.33 versus $0.47 per share Non-GAAP diluted EPS was $0.65 versus $0.69(2) Cash flow from operations was $151 million compared to $110 million Free cash flow was $150 million compared to $105 million(3) Outlook For the full year 2022, Teradata affirms the following outlook elements: Public cloud ARR is expected to increase by approximately 80% year-over-year, as reported and in constant currency.(1) Cash flow from operations is expected to be approximately $425 million. Free cash flow is expected to be approximately $400 million.(3) For the full year 2022, Teradata revises the following outlook elements in light of ceasing operations in Russia and foreign currency headwinds. Excluding these, Teradata would be in-line with the 2022 outlook provided on last quarter’s earnings call. Ceasing operations in Russia is expected to have a negative impact to total ARR of $55 million, total revenue of $60 million, and non-GAAP diluted EPS of $0.29. The revised elements below also include the negative impact from an expected 3.5% to 4.0% foreign currency headwind. As such, it is useful to provide an outlook in constant currency in fiscal 2022: Total ARR is now projected to decline in the low-single-digit percentage range year-over-year as reported. On a constant currency basis, total ARR is anticipated to grow in the low-single-digit percentage range.(1) Total recurring revenue is now anticipated to decline in the low-to-mid-single-digit percentage range year-over-year as reported. On a constant currency basis, total recurring revenue is projected to be flat to grow in the low-single-digit percentage range.(1) Total revenue is now expected to decline in the mid-to-high-single-digit percentage range year-over-year as reported. On a constant currency basis, total revenue is anticipated to decline in the low-single-digit percentage range.(1) GAAP diluted EPS is now expected to be in the range of $0.45 to $0.55 versus the range of $0.75 to $0.85 previously provided. Non-GAAP diluted EPS is now expected to be in the range of $1.55 to $1.65 versus the range of $1.82 to $1.92 previously provided.(2) For the second quarter of 2022: GAAP diluted EPS is expected to be in the range of ($0.01) to $0.03. Non-GAAP diluted EPS is expected to be in the range of $0.26 to $0.30.(2) Earnings Conference Call A conference call is scheduled for today at 2:00 p.m. PT to discuss the Company’s first quarter 2022 results 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 March 31 2022 2021 % Change as Reported % Change in CC Recurring revenue $386 $372 4% 6% Perpetual software licenses and hardware 26 23 13% 17% Consulting services 84 96 (13%) (9%) Total revenue $496 $491 1% 4% Americas $290 $263 10% 11% EMEA 129 147 (12%) (6%) APJ 77 81 (5%) 0% Total revenue $496 $491 1% 4% As of March 31 2022 2021 % Change as Reported % Change in CC Annual recurring revenue* $1,427 $1,404 2% 3% Public cloud ARR** $209 $124 69% 70% * 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. 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 Vantage 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 earnings per diluted share, or EPS, 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 (in millions, except per share data) ended March 31 Gross Profit: 2022 2021 % Chg. GAAP Gross Profit $301 $307 % of Revenue 60.7% 62.5% Excluding: Stock-based compensation expense 5 3 Reorganization and transformation cost and cost associated with ceasing operations in Russia 6 5 Non-GAAP Gross Profit $312 $315 -1% % of Revenue 62.9% 64.2% Operating Income GAAP Operating Income $68 $81 % of Revenue 13.7% 16.5% Excluding: Stock-based compensation expense 31 21 Amortization of acquisition-related intangible assets 1 1 Reorganization and transformation cost and cost associated with ceasing operations in Russia 15 12 Non-GAAP Operating Income $115 $115 0% % of Revenue 23.2% 23.4% Net Income GAAP Net Income $36 $53 % of Revenue 7.3% 10.8% Excluding: Stock-based compensation expense 31 21 Amortization of acquisition-related intangible assets 1 1 Reorganization and transformation cost and cost associated with ceasing operations in Russia 15 12 Income tax adjustments(i) (12) (9) Non-GAAP Net Income $71 $78 -9% % of Revenue 14.3% 15.9% For the Three Months ended March 31 2022 Outlook Earnings Per Share: 2022 2021 Q2 FY GAAP Earnings Per Share $0.33 $0.47 ($0.01) - $0.03 $0.45 - $0.55 Excluding: Stock-based compensation expense 0.28 0.19 0.29 1.15 Amortization of acquisition-related intangible assets 0.01 0.01 0.01 0.02 Reorganization and transformation cost and cost associated with ceasing operations in Russia 0.14 0.10 0.01 0.16 Income tax adjustments(i) (0.11) (0.08) (0.04) (0.23) Non-GAAP Diluted Earnings Per Share $0.65 $0.69 $0.26 - $0.30 $1.55- $1.65 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 March 31, 2022 was 30.4% and March 31, 2021 was 26.4%. 3. 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. Free cash flow does not have a uniform definition under GAAP and, therefore, Teradata’s definition may differ from other companies’ definitions of this measure. 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 for, among other things, investment in the Company’s existing businesses, strategic acquisitions, strengthening the Company’s balance sheet, repurchase of the Company’s stock and repayment of the Company’s debt obligations, if any. 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. 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. (in millions) For the Three Months ended March 31 Outlook 2022 2021 2022 Cash provided by operating activities (GAAP) $ 151 $ 110 ~$425 Less capital expenditures for: Expenditures for property and equipment (1 ) (4 ) (~23) Additions to capitalized software - (1 ) (~2) Total capital expenditures (1 ) (5 ) (~25) Free Cash Flow (non-GAAP measure) $ 150 $ 105 ~$400 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 2022 second quarter and full year financial guidance. 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 sanctions, foreign currency fluctuations, and/or acts of war; 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 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 Teradata is the connected multi-cloud data platform for enterprise analytics company. Our enterprise analytics solve business challenges from start to scale. Only Teradata gives you the flexibility to handle the massive and mixed data workloads of the future, today. Learn more 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 March 31 Three Months 2022 2021 % Chg Revenue Recurring $ 386 $ 372 4 % Perpetual software licenses, hardware and other 26 23 13 % Consulting services 84 96 (13 %) Total revenue 496 491 1 % Gross profit Recurring 281 282 % of Revenue 72.8 % 75.8 % Perpetual software licenses, hardware and other 8 12 % of Revenue 30.8 % 52.2 % Consulting services 12 13 % of Revenue 14.3 % 13.5 % Total gross profit 301 307 % of Revenue 60.7 % 62.5 % Selling, general and administrative expenses 157 149 Research and development expenses 76 77 Income from operations 68 81 % of Revenue 13.7 % 16.5 % Other expense, net (13 ) (9 ) Income before income taxes 55 72 % of Revenue 11.1 % 14.7 % Income tax expense 19 19 % Tax rate 34.5 % 26.4 % Net income $ 36 $ 53 % of Revenue 7.3 % 10.8 % Net income per common share Basic $ 0.34 $ 0.49 Diluted $ 0.33 $ 0.47 Weighted average common shares outstanding Basic 105.0 108.7 Diluted 108.6 112.8 Schedule B TERADATA CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in millions - unaudited) March 31, December 31, March 31, 2022 2021 2021 Assets Current assets Cash and cash equivalents $ 404 $ 592 $ 538 Accounts receivable, net 330 336 367 Inventories 16 26 16 Other current assets 113 152 154 Total current assets 863 1,106 1,075 Property and equipment, net 274 288 344 Right of use assets - operating lease, net 22 26 34 Goodwill 395 396 399 Capitalized contract costs, net 109 111 99 Deferred income taxes 200 202 209 Other assets 32 40 43 Total assets $ 1,895 $ 2,169 $ 2,203 Liabilities and stockholders' equity Current liabilities Current portion of long-term debt $ 75 $ 88 $ 50 Current portion of finance lease liability 76 77 92 Current portion of operating lease liability 11 12 14 Accounts payable 78 67 55 Payroll and benefits liabilities 91 148 106 Deferred revenue 580 552 557 Other current liabilities 82 89 81 Total current liabilities 993 1,033 955 Long-term debt 324 324 399 Finance lease liability 56 53 84 Operating lease liability 15 18 26 Pension and other postemployment plan liabilities 133 138 143 Long-term deferred revenue 19 27 43 Deferred tax liabilities 16 7 7 Other liabilities 102 109 129 Total liabilities 1,658 1,709 1,786 Stockholders' equity Common stock 1 1 1 Paid-in capital 1,792 1,808 1,708 Accumulated deficit (1,425 ) (1,211 ) (1,146 ) Accumulated other comprehensive loss (131 ) (138 ) (146 ) Total stockholders' equity 237 460 417 Total liabilities and stockholders' equity $ 1,895 $ 2,169 $ 2,203 Schedule C TERADATA CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions - unaudited) For the Period Ended March 31 Three Months 2022 2021 Operating activities Net income $ 36 $ 53 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 40 39 Stock-based compensation expense 31 21 Deferred income taxes 8 10 Changes in assets and liabilities: Receivables 6 (36 ) Inventories 10 13 Current payables and accrued expenses (49 ) (44 ) Deferred revenue 20 63 Other assets and liabilities 49 (9 ) Net cash provided by operating activities 151 110 Investing activities Expenditures for property and equipment (1 ) (4 ) Additions to capitalized software - (1 ) Net cash used in investing activities (1 ) (5 ) Financing activities Repurchases of common stock (300 ) (83 ) Repayments of long-term borrowings (13 ) (6 ) Payments of finance leases (22 ) (15 ) Other financing activities, net 4 13 Net cash used in financing activities (331 ) (91 ) Effect of exchange rate changes on cash and cash equivalents (6 ) (5 ) (Decrease) increase in cash, cash equivalents and restricted cash (187 ) 9 Cash, cash equivalents and restricted cash at beginning of period 595 533 Cash, cash equivalents and restricted cash at end of period $ 408 $ 542 Supplemental cash flow disclosure: Non-cash investing and financing activities: Assets acquired by finance leases $ 24 $ 45 Assets acquired by operating leases $ 1 $ 2 Schedule D TERADATA CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in millions - unaudited) For the Three Months Ended March 31 2022 2021 % ChangeAsReported % ChangeConstantCurrency (2) Segment Revenue Americas $ 290 $ 263 10 % 11 % EMEA 129 147 (12 %) (6 %) APJ 77 81 (5 %) 0 % Total segment revenue 496 491 1 % 4 % Segment gross profit Americas 189 182 % of Revenue 65.2 % 69.2 % EMEA 78 88 % of Revenue 60.5 % 59.9 % APJ 45 45 % of Revenue 58.4 % 55.6 % Total segment gross profit 312 315 % of Revenue 62.9 % 64.2 % Reconciling items(1) (11 ) (8 ) Total gross profit $ 301 $ 307 % of Revenue 60.7 % 62.5 % (1) Reconciling items include stock-based compensation, capitalized software, amortization ofacquisition-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/20220504006314/en/Contacts INVESTOR CONTACT Christopher T. Lee 858-485-2523 office christopher.lee@teradata.com MEDIA CONTACT Jennifer Donahue 858-485-3029 office jennifer.donahue@teradata.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Teradata Reports First Quarter 2022 Financial Results By: Teradata via Business Wire May 05, 2022 at 16:05 PM EDT Public cloud ARR of $209 million, an increase of 69% as reported and 70% in constant currency from the prior year period(1) First quarter total revenue of $496 million, an increase of 1% as reported and 4% in constant currency(1) First quarter recurring revenue of $386 million, an increase of 4% as reported and 6% in constant currency from the prior year period(1) First quarter GAAP earnings per diluted share of $0.33 First quarter Non-GAAP earnings per diluted share of $0.65(2) First quarter cash from operations of $151 million and free cash flow of $150 million (3) Teradata (NYSE: TDC) today announced its first quarter 2022 financial results. “We are off to a solid start in 2022, with another quarter of strong profitable growth and free cash flow generation,” said Steve McMillan, President and CEO, Teradata. “Our outlook for Cloud ARR growth is on track and customers are expanding their Teradata cloud environments as they recognize the value of our market-leading enterprise price performance. Companies are increasingly relying on data and analytics, and placing their trust in Teradata to help them turn data into the best business outcomes.” First Quarter 2022 Financial Highlights Compared to First Quarter 2021 Public cloud ARR increased to $209 million from $124 million, an increase of 69% as reported and 70% in constant currency(1) Total ARR increased to $1.427 billion from $1.404 billion, an increase of 2% as reported and 3% in constant currency(1) Total revenue was $496 million versus $491 million, an increase of 1% as reported and 4% in constant currency(1) Recurring revenue was $386 million versus $372 million, an increase of 4% as reported and 6% in constant currency(1) Recurring revenue was 78% of total revenue in the first quarter, up from 76% the prior year period GAAP gross margin was 60.7% versus 62.5% Non-GAAP gross margin was 62.9% versus 64.2%(2) GAAP operating income was $68 million versus $81 million Non-GAAP operating income was $115 million, flat versus last year(2) GAAP diluted EPS was $0.33 versus $0.47 per share Non-GAAP diluted EPS was $0.65 versus $0.69(2) Cash flow from operations was $151 million compared to $110 million Free cash flow was $150 million compared to $105 million(3) Outlook For the full year 2022, Teradata affirms the following outlook elements: Public cloud ARR is expected to increase by approximately 80% year-over-year, as reported and in constant currency.(1) Cash flow from operations is expected to be approximately $425 million. Free cash flow is expected to be approximately $400 million.(3) For the full year 2022, Teradata revises the following outlook elements in light of ceasing operations in Russia and foreign currency headwinds. Excluding these, Teradata would be in-line with the 2022 outlook provided on last quarter’s earnings call. Ceasing operations in Russia is expected to have a negative impact to total ARR of $55 million, total revenue of $60 million, and non-GAAP diluted EPS of $0.29. The revised elements below also include the negative impact from an expected 3.5% to 4.0% foreign currency headwind. As such, it is useful to provide an outlook in constant currency in fiscal 2022: Total ARR is now projected to decline in the low-single-digit percentage range year-over-year as reported. On a constant currency basis, total ARR is anticipated to grow in the low-single-digit percentage range.(1) Total recurring revenue is now anticipated to decline in the low-to-mid-single-digit percentage range year-over-year as reported. On a constant currency basis, total recurring revenue is projected to be flat to grow in the low-single-digit percentage range.(1) Total revenue is now expected to decline in the mid-to-high-single-digit percentage range year-over-year as reported. On a constant currency basis, total revenue is anticipated to decline in the low-single-digit percentage range.(1) GAAP diluted EPS is now expected to be in the range of $0.45 to $0.55 versus the range of $0.75 to $0.85 previously provided. Non-GAAP diluted EPS is now expected to be in the range of $1.55 to $1.65 versus the range of $1.82 to $1.92 previously provided.(2) For the second quarter of 2022: GAAP diluted EPS is expected to be in the range of ($0.01) to $0.03. Non-GAAP diluted EPS is expected to be in the range of $0.26 to $0.30.(2) Earnings Conference Call A conference call is scheduled for today at 2:00 p.m. PT to discuss the Company’s first quarter 2022 results 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 March 31 2022 2021 % Change as Reported % Change in CC Recurring revenue $386 $372 4% 6% Perpetual software licenses and hardware 26 23 13% 17% Consulting services 84 96 (13%) (9%) Total revenue $496 $491 1% 4% Americas $290 $263 10% 11% EMEA 129 147 (12%) (6%) APJ 77 81 (5%) 0% Total revenue $496 $491 1% 4% As of March 31 2022 2021 % Change as Reported % Change in CC Annual recurring revenue* $1,427 $1,404 2% 3% Public cloud ARR** $209 $124 69% 70% * 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. 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 Vantage 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 earnings per diluted share, or EPS, 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 (in millions, except per share data) ended March 31 Gross Profit: 2022 2021 % Chg. GAAP Gross Profit $301 $307 % of Revenue 60.7% 62.5% Excluding: Stock-based compensation expense 5 3 Reorganization and transformation cost and cost associated with ceasing operations in Russia 6 5 Non-GAAP Gross Profit $312 $315 -1% % of Revenue 62.9% 64.2% Operating Income GAAP Operating Income $68 $81 % of Revenue 13.7% 16.5% Excluding: Stock-based compensation expense 31 21 Amortization of acquisition-related intangible assets 1 1 Reorganization and transformation cost and cost associated with ceasing operations in Russia 15 12 Non-GAAP Operating Income $115 $115 0% % of Revenue 23.2% 23.4% Net Income GAAP Net Income $36 $53 % of Revenue 7.3% 10.8% Excluding: Stock-based compensation expense 31 21 Amortization of acquisition-related intangible assets 1 1 Reorganization and transformation cost and cost associated with ceasing operations in Russia 15 12 Income tax adjustments(i) (12) (9) Non-GAAP Net Income $71 $78 -9% % of Revenue 14.3% 15.9% For the Three Months ended March 31 2022 Outlook Earnings Per Share: 2022 2021 Q2 FY GAAP Earnings Per Share $0.33 $0.47 ($0.01) - $0.03 $0.45 - $0.55 Excluding: Stock-based compensation expense 0.28 0.19 0.29 1.15 Amortization of acquisition-related intangible assets 0.01 0.01 0.01 0.02 Reorganization and transformation cost and cost associated with ceasing operations in Russia 0.14 0.10 0.01 0.16 Income tax adjustments(i) (0.11) (0.08) (0.04) (0.23) Non-GAAP Diluted Earnings Per Share $0.65 $0.69 $0.26 - $0.30 $1.55- $1.65 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 March 31, 2022 was 30.4% and March 31, 2021 was 26.4%. 3. 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. Free cash flow does not have a uniform definition under GAAP and, therefore, Teradata’s definition may differ from other companies’ definitions of this measure. 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 for, among other things, investment in the Company’s existing businesses, strategic acquisitions, strengthening the Company’s balance sheet, repurchase of the Company’s stock and repayment of the Company’s debt obligations, if any. 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. 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. (in millions) For the Three Months ended March 31 Outlook 2022 2021 2022 Cash provided by operating activities (GAAP) $ 151 $ 110 ~$425 Less capital expenditures for: Expenditures for property and equipment (1 ) (4 ) (~23) Additions to capitalized software - (1 ) (~2) Total capital expenditures (1 ) (5 ) (~25) Free Cash Flow (non-GAAP measure) $ 150 $ 105 ~$400 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 2022 second quarter and full year financial guidance. 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 sanctions, foreign currency fluctuations, and/or acts of war; 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 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 Teradata is the connected multi-cloud data platform for enterprise analytics company. Our enterprise analytics solve business challenges from start to scale. Only Teradata gives you the flexibility to handle the massive and mixed data workloads of the future, today. Learn more 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 March 31 Three Months 2022 2021 % Chg Revenue Recurring $ 386 $ 372 4 % Perpetual software licenses, hardware and other 26 23 13 % Consulting services 84 96 (13 %) Total revenue 496 491 1 % Gross profit Recurring 281 282 % of Revenue 72.8 % 75.8 % Perpetual software licenses, hardware and other 8 12 % of Revenue 30.8 % 52.2 % Consulting services 12 13 % of Revenue 14.3 % 13.5 % Total gross profit 301 307 % of Revenue 60.7 % 62.5 % Selling, general and administrative expenses 157 149 Research and development expenses 76 77 Income from operations 68 81 % of Revenue 13.7 % 16.5 % Other expense, net (13 ) (9 ) Income before income taxes 55 72 % of Revenue 11.1 % 14.7 % Income tax expense 19 19 % Tax rate 34.5 % 26.4 % Net income $ 36 $ 53 % of Revenue 7.3 % 10.8 % Net income per common share Basic $ 0.34 $ 0.49 Diluted $ 0.33 $ 0.47 Weighted average common shares outstanding Basic 105.0 108.7 Diluted 108.6 112.8 Schedule B TERADATA CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in millions - unaudited) March 31, December 31, March 31, 2022 2021 2021 Assets Current assets Cash and cash equivalents $ 404 $ 592 $ 538 Accounts receivable, net 330 336 367 Inventories 16 26 16 Other current assets 113 152 154 Total current assets 863 1,106 1,075 Property and equipment, net 274 288 344 Right of use assets - operating lease, net 22 26 34 Goodwill 395 396 399 Capitalized contract costs, net 109 111 99 Deferred income taxes 200 202 209 Other assets 32 40 43 Total assets $ 1,895 $ 2,169 $ 2,203 Liabilities and stockholders' equity Current liabilities Current portion of long-term debt $ 75 $ 88 $ 50 Current portion of finance lease liability 76 77 92 Current portion of operating lease liability 11 12 14 Accounts payable 78 67 55 Payroll and benefits liabilities 91 148 106 Deferred revenue 580 552 557 Other current liabilities 82 89 81 Total current liabilities 993 1,033 955 Long-term debt 324 324 399 Finance lease liability 56 53 84 Operating lease liability 15 18 26 Pension and other postemployment plan liabilities 133 138 143 Long-term deferred revenue 19 27 43 Deferred tax liabilities 16 7 7 Other liabilities 102 109 129 Total liabilities 1,658 1,709 1,786 Stockholders' equity Common stock 1 1 1 Paid-in capital 1,792 1,808 1,708 Accumulated deficit (1,425 ) (1,211 ) (1,146 ) Accumulated other comprehensive loss (131 ) (138 ) (146 ) Total stockholders' equity 237 460 417 Total liabilities and stockholders' equity $ 1,895 $ 2,169 $ 2,203 Schedule C TERADATA CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions - unaudited) For the Period Ended March 31 Three Months 2022 2021 Operating activities Net income $ 36 $ 53 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 40 39 Stock-based compensation expense 31 21 Deferred income taxes 8 10 Changes in assets and liabilities: Receivables 6 (36 ) Inventories 10 13 Current payables and accrued expenses (49 ) (44 ) Deferred revenue 20 63 Other assets and liabilities 49 (9 ) Net cash provided by operating activities 151 110 Investing activities Expenditures for property and equipment (1 ) (4 ) Additions to capitalized software - (1 ) Net cash used in investing activities (1 ) (5 ) Financing activities Repurchases of common stock (300 ) (83 ) Repayments of long-term borrowings (13 ) (6 ) Payments of finance leases (22 ) (15 ) Other financing activities, net 4 13 Net cash used in financing activities (331 ) (91 ) Effect of exchange rate changes on cash and cash equivalents (6 ) (5 ) (Decrease) increase in cash, cash equivalents and restricted cash (187 ) 9 Cash, cash equivalents and restricted cash at beginning of period 595 533 Cash, cash equivalents and restricted cash at end of period $ 408 $ 542 Supplemental cash flow disclosure: Non-cash investing and financing activities: Assets acquired by finance leases $ 24 $ 45 Assets acquired by operating leases $ 1 $ 2 Schedule D TERADATA CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in millions - unaudited) For the Three Months Ended March 31 2022 2021 % ChangeAsReported % ChangeConstantCurrency (2) Segment Revenue Americas $ 290 $ 263 10 % 11 % EMEA 129 147 (12 %) (6 %) APJ 77 81 (5 %) 0 % Total segment revenue 496 491 1 % 4 % Segment gross profit Americas 189 182 % of Revenue 65.2 % 69.2 % EMEA 78 88 % of Revenue 60.5 % 59.9 % APJ 45 45 % of Revenue 58.4 % 55.6 % Total segment gross profit 312 315 % of Revenue 62.9 % 64.2 % Reconciling items(1) (11 ) (8 ) Total gross profit $ 301 $ 307 % of Revenue 60.7 % 62.5 % (1) Reconciling items include stock-based compensation, capitalized software, amortization ofacquisition-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/20220504006314/en/Contacts INVESTOR CONTACT Christopher T. Lee 858-485-2523 office christopher.lee@teradata.com MEDIA CONTACT Jennifer Donahue 858-485-3029 office jennifer.donahue@teradata.com
Public cloud ARR of $209 million, an increase of 69% as reported and 70% in constant currency from the prior year period(1) First quarter total revenue of $496 million, an increase of 1% as reported and 4% in constant currency(1) First quarter recurring revenue of $386 million, an increase of 4% as reported and 6% in constant currency from the prior year period(1) First quarter GAAP earnings per diluted share of $0.33 First quarter Non-GAAP earnings per diluted share of $0.65(2) First quarter cash from operations of $151 million and free cash flow of $150 million (3)
Teradata (NYSE: TDC) today announced its first quarter 2022 financial results. “We are off to a solid start in 2022, with another quarter of strong profitable growth and free cash flow generation,” said Steve McMillan, President and CEO, Teradata. “Our outlook for Cloud ARR growth is on track and customers are expanding their Teradata cloud environments as they recognize the value of our market-leading enterprise price performance. Companies are increasingly relying on data and analytics, and placing their trust in Teradata to help them turn data into the best business outcomes.” First Quarter 2022 Financial Highlights Compared to First Quarter 2021 Public cloud ARR increased to $209 million from $124 million, an increase of 69% as reported and 70% in constant currency(1) Total ARR increased to $1.427 billion from $1.404 billion, an increase of 2% as reported and 3% in constant currency(1) Total revenue was $496 million versus $491 million, an increase of 1% as reported and 4% in constant currency(1) Recurring revenue was $386 million versus $372 million, an increase of 4% as reported and 6% in constant currency(1) Recurring revenue was 78% of total revenue in the first quarter, up from 76% the prior year period GAAP gross margin was 60.7% versus 62.5% Non-GAAP gross margin was 62.9% versus 64.2%(2) GAAP operating income was $68 million versus $81 million Non-GAAP operating income was $115 million, flat versus last year(2) GAAP diluted EPS was $0.33 versus $0.47 per share Non-GAAP diluted EPS was $0.65 versus $0.69(2) Cash flow from operations was $151 million compared to $110 million Free cash flow was $150 million compared to $105 million(3) Outlook For the full year 2022, Teradata affirms the following outlook elements: Public cloud ARR is expected to increase by approximately 80% year-over-year, as reported and in constant currency.(1) Cash flow from operations is expected to be approximately $425 million. Free cash flow is expected to be approximately $400 million.(3) For the full year 2022, Teradata revises the following outlook elements in light of ceasing operations in Russia and foreign currency headwinds. Excluding these, Teradata would be in-line with the 2022 outlook provided on last quarter’s earnings call. Ceasing operations in Russia is expected to have a negative impact to total ARR of $55 million, total revenue of $60 million, and non-GAAP diluted EPS of $0.29. The revised elements below also include the negative impact from an expected 3.5% to 4.0% foreign currency headwind. As such, it is useful to provide an outlook in constant currency in fiscal 2022: Total ARR is now projected to decline in the low-single-digit percentage range year-over-year as reported. On a constant currency basis, total ARR is anticipated to grow in the low-single-digit percentage range.(1) Total recurring revenue is now anticipated to decline in the low-to-mid-single-digit percentage range year-over-year as reported. On a constant currency basis, total recurring revenue is projected to be flat to grow in the low-single-digit percentage range.(1) Total revenue is now expected to decline in the mid-to-high-single-digit percentage range year-over-year as reported. On a constant currency basis, total revenue is anticipated to decline in the low-single-digit percentage range.(1) GAAP diluted EPS is now expected to be in the range of $0.45 to $0.55 versus the range of $0.75 to $0.85 previously provided. Non-GAAP diluted EPS is now expected to be in the range of $1.55 to $1.65 versus the range of $1.82 to $1.92 previously provided.(2) For the second quarter of 2022: GAAP diluted EPS is expected to be in the range of ($0.01) to $0.03. Non-GAAP diluted EPS is expected to be in the range of $0.26 to $0.30.(2) Earnings Conference Call A conference call is scheduled for today at 2:00 p.m. PT to discuss the Company’s first quarter 2022 results 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 March 31 2022 2021 % Change as Reported % Change in CC Recurring revenue $386 $372 4% 6% Perpetual software licenses and hardware 26 23 13% 17% Consulting services 84 96 (13%) (9%) Total revenue $496 $491 1% 4% Americas $290 $263 10% 11% EMEA 129 147 (12%) (6%) APJ 77 81 (5%) 0% Total revenue $496 $491 1% 4% As of March 31 2022 2021 % Change as Reported % Change in CC Annual recurring revenue* $1,427 $1,404 2% 3% Public cloud ARR** $209 $124 69% 70% * 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. 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 Vantage 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 earnings per diluted share, or EPS, 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 (in millions, except per share data) ended March 31 Gross Profit: 2022 2021 % Chg. GAAP Gross Profit $301 $307 % of Revenue 60.7% 62.5% Excluding: Stock-based compensation expense 5 3 Reorganization and transformation cost and cost associated with ceasing operations in Russia 6 5 Non-GAAP Gross Profit $312 $315 -1% % of Revenue 62.9% 64.2% Operating Income GAAP Operating Income $68 $81 % of Revenue 13.7% 16.5% Excluding: Stock-based compensation expense 31 21 Amortization of acquisition-related intangible assets 1 1 Reorganization and transformation cost and cost associated with ceasing operations in Russia 15 12 Non-GAAP Operating Income $115 $115 0% % of Revenue 23.2% 23.4% Net Income GAAP Net Income $36 $53 % of Revenue 7.3% 10.8% Excluding: Stock-based compensation expense 31 21 Amortization of acquisition-related intangible assets 1 1 Reorganization and transformation cost and cost associated with ceasing operations in Russia 15 12 Income tax adjustments(i) (12) (9) Non-GAAP Net Income $71 $78 -9% % of Revenue 14.3% 15.9% For the Three Months ended March 31 2022 Outlook Earnings Per Share: 2022 2021 Q2 FY GAAP Earnings Per Share $0.33 $0.47 ($0.01) - $0.03 $0.45 - $0.55 Excluding: Stock-based compensation expense 0.28 0.19 0.29 1.15 Amortization of acquisition-related intangible assets 0.01 0.01 0.01 0.02 Reorganization and transformation cost and cost associated with ceasing operations in Russia 0.14 0.10 0.01 0.16 Income tax adjustments(i) (0.11) (0.08) (0.04) (0.23) Non-GAAP Diluted Earnings Per Share $0.65 $0.69 $0.26 - $0.30 $1.55- $1.65 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 March 31, 2022 was 30.4% and March 31, 2021 was 26.4%. 3. 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. Free cash flow does not have a uniform definition under GAAP and, therefore, Teradata’s definition may differ from other companies’ definitions of this measure. 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 for, among other things, investment in the Company’s existing businesses, strategic acquisitions, strengthening the Company’s balance sheet, repurchase of the Company’s stock and repayment of the Company’s debt obligations, if any. 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. 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. (in millions) For the Three Months ended March 31 Outlook 2022 2021 2022 Cash provided by operating activities (GAAP) $ 151 $ 110 ~$425 Less capital expenditures for: Expenditures for property and equipment (1 ) (4 ) (~23) Additions to capitalized software - (1 ) (~2) Total capital expenditures (1 ) (5 ) (~25) Free Cash Flow (non-GAAP measure) $ 150 $ 105 ~$400 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 2022 second quarter and full year financial guidance. 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 sanctions, foreign currency fluctuations, and/or acts of war; 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 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 Teradata is the connected multi-cloud data platform for enterprise analytics company. Our enterprise analytics solve business challenges from start to scale. Only Teradata gives you the flexibility to handle the massive and mixed data workloads of the future, today. Learn more 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 March 31 Three Months 2022 2021 % Chg Revenue Recurring $ 386 $ 372 4 % Perpetual software licenses, hardware and other 26 23 13 % Consulting services 84 96 (13 %) Total revenue 496 491 1 % Gross profit Recurring 281 282 % of Revenue 72.8 % 75.8 % Perpetual software licenses, hardware and other 8 12 % of Revenue 30.8 % 52.2 % Consulting services 12 13 % of Revenue 14.3 % 13.5 % Total gross profit 301 307 % of Revenue 60.7 % 62.5 % Selling, general and administrative expenses 157 149 Research and development expenses 76 77 Income from operations 68 81 % of Revenue 13.7 % 16.5 % Other expense, net (13 ) (9 ) Income before income taxes 55 72 % of Revenue 11.1 % 14.7 % Income tax expense 19 19 % Tax rate 34.5 % 26.4 % Net income $ 36 $ 53 % of Revenue 7.3 % 10.8 % Net income per common share Basic $ 0.34 $ 0.49 Diluted $ 0.33 $ 0.47 Weighted average common shares outstanding Basic 105.0 108.7 Diluted 108.6 112.8 Schedule B TERADATA CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in millions - unaudited) March 31, December 31, March 31, 2022 2021 2021 Assets Current assets Cash and cash equivalents $ 404 $ 592 $ 538 Accounts receivable, net 330 336 367 Inventories 16 26 16 Other current assets 113 152 154 Total current assets 863 1,106 1,075 Property and equipment, net 274 288 344 Right of use assets - operating lease, net 22 26 34 Goodwill 395 396 399 Capitalized contract costs, net 109 111 99 Deferred income taxes 200 202 209 Other assets 32 40 43 Total assets $ 1,895 $ 2,169 $ 2,203 Liabilities and stockholders' equity Current liabilities Current portion of long-term debt $ 75 $ 88 $ 50 Current portion of finance lease liability 76 77 92 Current portion of operating lease liability 11 12 14 Accounts payable 78 67 55 Payroll and benefits liabilities 91 148 106 Deferred revenue 580 552 557 Other current liabilities 82 89 81 Total current liabilities 993 1,033 955 Long-term debt 324 324 399 Finance lease liability 56 53 84 Operating lease liability 15 18 26 Pension and other postemployment plan liabilities 133 138 143 Long-term deferred revenue 19 27 43 Deferred tax liabilities 16 7 7 Other liabilities 102 109 129 Total liabilities 1,658 1,709 1,786 Stockholders' equity Common stock 1 1 1 Paid-in capital 1,792 1,808 1,708 Accumulated deficit (1,425 ) (1,211 ) (1,146 ) Accumulated other comprehensive loss (131 ) (138 ) (146 ) Total stockholders' equity 237 460 417 Total liabilities and stockholders' equity $ 1,895 $ 2,169 $ 2,203 Schedule C TERADATA CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions - unaudited) For the Period Ended March 31 Three Months 2022 2021 Operating activities Net income $ 36 $ 53 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 40 39 Stock-based compensation expense 31 21 Deferred income taxes 8 10 Changes in assets and liabilities: Receivables 6 (36 ) Inventories 10 13 Current payables and accrued expenses (49 ) (44 ) Deferred revenue 20 63 Other assets and liabilities 49 (9 ) Net cash provided by operating activities 151 110 Investing activities Expenditures for property and equipment (1 ) (4 ) Additions to capitalized software - (1 ) Net cash used in investing activities (1 ) (5 ) Financing activities Repurchases of common stock (300 ) (83 ) Repayments of long-term borrowings (13 ) (6 ) Payments of finance leases (22 ) (15 ) Other financing activities, net 4 13 Net cash used in financing activities (331 ) (91 ) Effect of exchange rate changes on cash and cash equivalents (6 ) (5 ) (Decrease) increase in cash, cash equivalents and restricted cash (187 ) 9 Cash, cash equivalents and restricted cash at beginning of period 595 533 Cash, cash equivalents and restricted cash at end of period $ 408 $ 542 Supplemental cash flow disclosure: Non-cash investing and financing activities: Assets acquired by finance leases $ 24 $ 45 Assets acquired by operating leases $ 1 $ 2 Schedule D TERADATA CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in millions - unaudited) For the Three Months Ended March 31 2022 2021 % ChangeAsReported % ChangeConstantCurrency (2) Segment Revenue Americas $ 290 $ 263 10 % 11 % EMEA 129 147 (12 %) (6 %) APJ 77 81 (5 %) 0 % Total segment revenue 496 491 1 % 4 % Segment gross profit Americas 189 182 % of Revenue 65.2 % 69.2 % EMEA 78 88 % of Revenue 60.5 % 59.9 % APJ 45 45 % of Revenue 58.4 % 55.6 % Total segment gross profit 312 315 % of Revenue 62.9 % 64.2 % Reconciling items(1) (11 ) (8 ) Total gross profit $ 301 $ 307 % of Revenue 60.7 % 62.5 % (1) Reconciling items include stock-based compensation, capitalized software, amortization ofacquisition-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/20220504006314/en/
INVESTOR CONTACT Christopher T. Lee 858-485-2523 office christopher.lee@teradata.com MEDIA CONTACT Jennifer Donahue 858-485-3029 office jennifer.donahue@teradata.com