Additional information regarding Teradatas operating results is provided below as well as on Teradatas website at investor.teradata.com. 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 MEDIA CONTACT However, Box ended up getting an investment from the private-equity firm KKR that halted rumors of a sale and subsequently saw higher growth rates. You must click the link in the email to activate your subscription. What it does: Splunk makes software for IT professionals that sift through and analyze enormous amounts of performance and system data in their networks. Why it's an acquisition target: Qualys has a portfolio of software tools for cloud security, which makes it an interesting target for any company looking to get into that space, RBC analysts said. Our enterprise analytics solve business challenges from start to scale. 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. 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. As described below, the Company believes that free cash flow is a useful non-GAAP measure for investors. 10107 0 obj <>/Filter/FlateDecode/ID[]/Index[10087 45]/Info 10086 0 R/Length 96/Prev 250981/Root 10088 0 R/Size 10132/Type/XRef/W[1 2 1]>>stream 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? "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. hX[o+|LP}"/MbNi Teradata has invested in multiple sectors such as MarketingTech, Big Data Infrastructure, AdTech and more. Join SI Premium - FREE. ~P-Y2$}+Z]\r8e-k55:Vq^s>]=-\F4fc YX7q,FZtJ;ZhFjaZ(#l. 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. "This is the entire on-premises estate for Teradata," said a senior source close to the company. As described below, the Company believes that free cash flow is a useful non-GAAP measure for investors. For the first quarter of fiscal 2021, Teradata currently expects to exceed its guidance provided on February 4, 2021 for GAAP earnings per diluted share, Non-GAAP earnings per diluted share, and public . Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. The space is "crowded," RBC analysts wrote in a note, and "over time, could benefit from consolidation with adjacent collaboration solutions.". He's not sure any company would be able to get a Slack-sized deal done in the current economic climate aside from, perhaps, Microsoft. 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. %%EOF This release contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934. Late last week, IBM confirmed the country managers who will run Kyndryl when it launches later this year. , The Register Biting the hand that feeds IT, Copyright. Teradata reports its results in accordance with GAAP. Our enterprise analytics solve business challenges from start to scale. 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. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Forward-looking statements in this release include our 2022 first quarter and full year financial guidance and share repurchase plans. "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. Teradata reports its results in accordance with GAAP. "It's like you've got a team that looks after space rockets and a team that looks after Formula One cars. 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. 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. SAN DIEGO-- (BUSINESS WIRE)-- Teradata (NYSE: TDC) today announced its fourth-quarter and full-year 2021 financial results. 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. "This could make even more sense if the market consolidates up to the platform level," the analysts wrote. 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. The company started as a file-sharing service and has since added capabilities like document collaboration and e-signatures. The Companys full-year 2020 GAAP marginal effective tax rate included $3 million of tax expense related to tax contingencies pursuant to FIN 48. Heading into last night's report, analysts had forecast that Teradata would earn an adjusted profit of $0.27 per share on sales of $478.6 million. CONDENSED CONSOLIDATED STATEMENTS OF INCOME, (in millions, except per share amounts - unaudited), CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS. The company's growth has stagnated in recent years due to competition from players like Dynatrace and Datadog, and its customer count is down. endstream endobj startxref 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. 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. After going public in 2018, the company's growth has stagnated in recent years, and its software would likely grow faster as part of a larger platform, several analysts have said. In the UK alone, companies including Sainsbury's, Lloyds Bank, Iceland, Barclays, Unilever, Vodafone, and other big brands still rely on Teradata's on-prem systems for business decision-making as cloud-based systems are yet to meet their performance requirements, sources told The Register. 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. Teradata is the connected multi-cloud data platform for enterprise analytics, solving data challenges from start to scale. The impact of currency is determined by calculating the prior period results using the current-year monthly average currency rates. "And could even see a traditional networking company like CSCO taking a look at FSLY.". What happened was that foreign hackers, who some top US officials believe are from Russia, were able to use the hack to spy on private companies like the elite cybersecurity firm FireEye and the upper echelons of the US government, including the Department of Homeland Security and the Treasury Department. The acquisition is a milestone in the execution of the Teradata world-class applications business. 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. 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. But after the huge 2021 beat, investors today seem willing to accept this more muted forecast for 2022. Teradata Vantage is a legacy system used by many large organizations and corporates for storing data and providing it to end users. Why it's an acquisition target: Smartsheet is operating in a competitive space, as the number of collaborative work-management tools has skyrocketed in recent years. Cost basis and return based on previous market day close. Large companies look to score tools at a discount while private-equity firms also eye takeovers. 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. Internet Explorer presents a security risk. Access to the conference call, as well as a replay of the conference call, is available on Teradatas website at investor.teradata.com. analysts and experts expect to see more consolidation, Adobe executives announced the company is acquiring the beloved design startup Figma, its stock has fallen back to pre-2020 levels, were rumors it was pursuing a sale amid the pressure, investment from the private-equity firm KKR. That would make it an interesting candidate for a private-equity firm who wants to invest in cloud-data analytics, they wrote. "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. "Now Teradata has decided to sell the problem to IBM," added one of the insiders. 2011. This release contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934. Non-GAAP diluted EPS is expected to be in the range of $0.63 to $0.67. Learn more at Teradata.com. In addition, the Company recorded a $2 million discrete tax benefit in the third quarter of 2021 for GAAP purposes resulting from a provision to return true up to the Companys net operating loss upon completion of its 2020 US federal income tax return and its NOL carryback claim afforded by the CARES Act of 2020. The Companys full-year 2020 GAAP marginal effective tax rate included $3 million of tax expense related to tax contingencies pursuant to FIN 48. On the strategic-M&A side, the chip giant Broadcom made a deal to acquire VMware for a whopping $61 billion back in May. 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. Reconciling items include stock-based compensation, capitalized software, amortization of acquisition-related intangible assets and acquisition, integration and reorganization-related items. Teradata's systems are highly engineered and while replacing a power supply or a disk drive should be a simple process, if something more serious fails "it can be catastrophic," our source said. Teradata has acquired 16 companies. 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%. "We think the company has made good progress on its cloud transition, and as such, it could represent an interesting acquisition candidate for a large vendor or PE shop that wants to get deeper into cloud analytics," RBC analysts wrote. The forward-looking statements included in this release are made as of September 9, 2021, and 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.

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