NYSE$TDC

Teradata Corp · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Teradata had a strong start to the year, exceeding expectations across key metrics with significant growth in public cloud ARR, profitability, and free cash flow.

Teradata reported strong Q1 2021 financial results, exceeding expectations in key metrics. Public cloud ARR increased significantly, along with profitability and free cash flow. The company's focus on profitable growth and the strength of Vantage are driving performance.

  • Public cloud ARR increased by $79 million, or 176% year-over-year, exceeding the outlook of at least 165%.
  • First-quarter recurring revenue was $372 million, an increase of 20% year-over-year.
  • Cash from operations was $110 million, an increase of $100 million year-over-year.
  • First-quarter GAAP earnings per diluted share was $0.47, above the previously provided outlook range of $0.11 to $0.13.

Headline financials

Total Revenue

$491M

Previous: $434M+13.1%
EPS (adj)

$0.69

Previous: $0.27+155.6%
Total ARR

$1.4B

No prior period
Public Cloud ARR

$124M

Previous: $1.4B-91.2%
GAAP Gross Margin

62.5%

Previous: 51.8%+20.7%
Non-GAAP Gross Margin

64.2%

Previous: 54.1%+18.7%
GAAP Operating Margin

16.5%

No prior period
Non-GAAP Operating Margin

23.4%

Previous: 7.4%+216.2%
Capital Expenditures

-$4M

Previous: -$10M+60.0%
Free Cash Flow

$49M

Previous: $158M-69.0%
Net Income

$53M

Previous: $168M-68.5%
Operating Income

$81M

Previous: -$6M+1450.0%
Gross Profit

$307M

Previous: $225M+36.4%
Cash & Equivalents

$538M

Previous: $394M+36.5%
Total Assets

$2.2B

Previous: $2.15B+2.4%
Stock-Based Comp

$21M

Previous: $21M+0.0%

Revenue & EPS history

Teradata · Revenue · Quarterly

$491M

Q1 2021+13.1%vs Q1 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Teradata · $96M total across 1 segment · Q1 2021

  • Consulting
    $96M+28.0%

Forward guidance

Teradata is providing the following outlook for the full year 2021 and the second quarter of 2021.

Tailwinds

  • Public cloud ARR is expected to increase by at least 100% year-over-year.
  • Total ARR is expected to grow at a mid- to high-single-digit percentage year-over-year.
  • Recurring revenue is expected to grow at a mid- to high-single digit percentage year-over-year.
  • Total revenue is expected to grow at a low-single-digit percentage year-over-year.
  • Cash flow from operations is now expected to be in the range of $320 million to $350 million, up from our prior outlook of at least $295 million

Headwinds

  • GAAP diluted EPS is expected to be in the range of $0.17 to $0.19 for Q2 2021.
  • Non-GAAP diluted EPS, excluding stock-based compensation expense, reorganization-related expenses, and other special items, is expected to be in the range of $0.47 to $0.49 for Q2 2021.
  • Public cloud ARR is expected to increase by at least 155% year-over-year, or by $15 million to $20 million sequentially for Q2 2021.
  • Raising the following outlook for the full year 2021: GAAP earnings per diluted share is now expected to be in the range of $0.58 to $0.64, up from our prior outlook range of $0.43 to $0.51
  • Free cash flow is now expected to be in the range of $275 million to $300 million(2), up from our prior outlook of at least $250 million

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 2021

Historical avgQ1 2021

-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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