NYSE$TDC

Teradata Corp · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Teradata's Q3 2021 financial results were announced, demonstrating progress in their ongoing transformation.

Teradata reported a 1% increase in total revenue to $460 million, with recurring revenue up 7% to $352 million. Public cloud ARR increased by 83% to $148 million. GAAP EPS was $0.15, and non-GAAP EPS was $0.43. The company also announced an incremental $1 billion share repurchase authorization.

  • Public cloud ARR increased 83% year-over-year to $148 million.
  • Recurring revenue increased 7% year-over-year, reaching $352 million and representing 77% of total revenue.
  • GAAP earnings per diluted share were $0.15, exceeding the previously provided outlook.
  • Non-GAAP earnings per diluted share were $0.43, also exceeding the previously provided outlook.

Headline financials

Total Revenue

$460M

Previous: $454M+1.3%
EPS (adj)

$0.43

Previous: $0.43+0.0%
Public Cloud ARR

$148M

Previous: $1.5B-90.1%
GAAP Gross Margin

59.8%

Previous: 55.9%+7.0%
Non-GAAP Gross Margin

61.3%

Previous: 61.0%+0.5%
GAAP Operating Margin

6.5%

Previous: 0.2%+3150.0%
Non-GAAP Operating Margin

15.4%

Previous: 14.8%+4.1%
Capital Expenditures

-$19M

Previous: -$34M+44.1%
Free Cash Flow

-$2M

Previous: -$35M+94.3%
Net Income

$17M

Previous: -$1M+1800.0%
Operating Income

$30M

Previous: $1M+2900.0%
Gross Profit

$275M

Previous: $254M+8.3%
Cash & Equivalents

$613M

Previous: $533M+15.0%
Total Assets

$2.13B

Previous: $2.12B+0.8%
Stock-Based Comp

$27M

Previous: $27M+0.0%

Revenue & EPS history

Teradata · Revenue · Quarterly

$460M

Q3 2021+1.3%vs Q3 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Teradata · $90M total across 1 segment · Q3 2021

  • Consulting
    $90M+25.0%

Forward guidance

Teradata updated and affirmed its full-year 2021 outlook. 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 high-single-digit to low-double-digit percentage year-over-year. Total revenue is expected to grow at a low-single-digit to mid-single-digit percentage year-over-year. Cash flow from operations is expected to be approximately $440 million and free cash flow is expected to be at least $400 million.

Tailwinds

  • GAAP earnings per diluted share is now expected to be in the range of $0.96 to $1.00, up from prior outlook range of $0.78 to $0.82
  • Non-GAAP earnings per diluted share is now expected to be in the range of $2.11 to $2.15, up from prior outlook of $1.92 to $1.96
  • Cash flow from operations is expected to be approximately $440 million
  • Free cash flow is expected to be at least $400 million
  • Total ARR is expected to grow at a mid-to-high-single-digit percentage year-over-year

Headwinds

  • Public cloud ARR is now expected to be approximately 90% year-over-year, or approximately $200 million, down from at least 100% growth year-over-year
  • GAAP diluted EPS for Q4 2021 is expected to be in the range of $(0.05) to $(0.01)
  • Non-GAAP diluted EPS for Q4 2021 is expected to be in the range of $0.25 to $0.29
  • Possible timing volatility around the close dates of some of the very large pipeline enterprise deals
  • Still seeing timing volatility around the close dates of some of our very large pipeline enterprise deals

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 Q3 2021

Historical avgQ3 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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