NYSE$TDC

Teradata Corp · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Teradata's first-quarter results were negatively impacted by COVID-19, with recurring revenue increasing and the company progressing on cloud and go-to-market efforts.

Teradata reported a decrease in total revenue to $434 million compared to $468 million in the first quarter of 2019, but net income increased significantly to $168 million, or $1.51 per diluted share, compared to a net loss of $(10) million, or $(0.09) per share, in the same period last year. The company is withdrawing its full-year 2020 guidance due to uncertainties relating to COVID-19.

  • Teradata continued to make progress on key Cloud, Vantage, and Go-to-market efforts in the first quarter.
  • The Company’s technology is critical in supporting customers during COVID-19 and Teradata used this opportunity to further support customers and deepen relationships.
  • Teradata’s first-quarter results were negatively impacted by COVID-19.
  • The Company is withdrawing its full-year 2020 guidance due to uncertainties relating to COVID-19.

Headline financials

Total Revenue

$434M

Previous: $468M-7.3%
EPS (adj)

$0.27

Previous: $0.22+22.7%
Public Cloud ARR

$1.4B

Previous: $1.32B+6.3%
GAAP Gross Margin

51.8%

Previous: 47.9%+8.1%
Non-GAAP Gross Margin

54.1%

Previous: 51.5%+5.0%
Non-GAAP Operating Margin

7.4%

No prior period
Capital Expenditures

-$10M

Previous: -$15M+33.3%
Free Cash Flow

$158M

Previous: -$25M+732.0%
Net Income

$168M

Previous: -$10M+1780.0%
Operating Income

-$6M

Previous: -$5M-20.0%
Gross Profit

$225M

Previous: $224M+0.4%
Cash & Equivalents

$394M

Previous: $723M-45.5%
Total Assets

$2.15B

Previous: $2.29B-5.9%
Stock-Based Comp

$21M

Previous: $15M+40.0%

Revenue & EPS history

Teradata · Revenue · Quarterly

$434M

Q1 2020-7.3%vs Q1 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Teradata · $75M total across 1 segment · Q1 2020

  • Consulting
    $75M-29.2%

Forward guidance

Due to the evolving nature and uncertain impact of COVID-19 on Teradata’s operating and financial results, the Company is withdrawing its guidance for the full-year 2020. For the second quarter of 2020, Teradata expects recurring revenue in the range between $348 million and $352 million. GAAP loss per share in the second quarter of 2020 is expected to be in the $(0.09) to $(0.06) range. Non-GAAP earnings per share, excluding stock-based compensation expense and other special items, in the second quarter is expected to be in the $0.19 to $0.22 range

Tailwinds

  • Recurring revenue in the second quarter of 2020 is expected to be in the range between $348 million and $352 million.

Headwinds

  • The Company is withdrawing its guidance for the full-year 2020 due to the evolving nature and uncertain impact of COVID-19.
  • GAAP loss per share in the second quarter of 2020 is expected to be in the $(0.09) to $(0.06) range.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-1.1%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+0.2%

Avg return

30 days after

42%

29 / 69 earnings

Positive

+34.6%

Q4 2020

Best reaction

-22.0%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.7%+7.3%+11.8%
Q4 2025+29.6%+14.8%-9.1%
Q3 2025+32.6%+34.8%+44.2%
Q1 2025+1.8%+7.5%+2.0%
Q4 2024-20.3%-19.7%-26.5%
Q3 2024-14.3%-10.1%-4.2%
Q2 2024-17.8%-14.8%-8.3%
Q1 2024-12.1%-11.3%-13.7%
Q4 2023-22.0%-23.7%-22.3%
Q3 2023+2.5%+4.9%+4.0%
Q2 2023-17.3%-19.3%-19.6%
Q1 2023+8.3%+7.0%+18.3%
Q4 2022+18.6%+20.8%+8.5%
Q3 2022+4.8%+11.0%+11.8%
Q2 2022-7.3%-10.0%-16.9%
Q1 2022-13.7%-17.2%-7.8%
Q4 2021+21.8%+19.9%+8.9%
Q3 2021-13.6%-10.9%-26.7%
Q2 2021-3.1%+3.0%+14.4%
Q1 2021-17.1%-17.6%-0.4%
Q4 2020+34.6%+95.2%+50.0%
Q3 2020+6.8%+4.9%+17.5%
Q2 2020+19.5%+17.3%+9.6%
Q1 2020+2.8%-7.7%-3.5%
Q4 2019-5.1%-6.7%-13.7%
Q3 2019-16.0%-14.5%-13.1%
Q2 2019-9.9%-8.6%-15.7%
Q1 2019-11.2%-14.5%-22.5%
Q4 2018-1.9%-0.8%+1.5%
Q3 2018-1.7%+0.1%+3.4%
Q2 2018+0.3%+4.5%+9.1%
Q1 2018-6.7%-3.8%-2.7%
Q4 2017-12.7%-9.7%+5.7%
Q3 2017+8.4%+4.0%+13.3%
Q2 2017+7.2%+10.5%+5.0%
Q1 2017-8.8%-9.0%-10.6%
Q4 2016+5.0%+4.6%+4.0%
Q3 2016-10.4%-9.9%-9.1%
Q2 2016+8.0%+11.1%+10.8%
Q1 2016+15.3%
Q4 2015-0.6%
Q3 2015-3.2%
Q2 2015-17.3%
Q1 2015-9.1%
Q4 2014-11.4%
Q3 2014+4.0%
Q2 2014-1.3%
Q1 2014-9.9%
Q4 2013-0.3%
Q3 2013-3.2%
Q2 2013+7.2%
Q1 2013-1.3%
Q4 2012-5.7%
Q3 2012-7.7%
Q2 2012+10.0%
Q1 2012+1.3%
Q4 2011+1.7%
Q3 2011-3.0%
Q2 2011+0.4%
Q1 2010+1.5%
Q1 2011+0.4%
Q4 2010-0.5%
Q4 2008-0.5%
Q1 2009-0.5%
Q3 2010+2.0%
Q3 2009+2.0%
Q4 2009-5.3%
Q2 2009-5.3%
Q2 2010-5.3%

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