NYSE$TDC

Teradata Corp · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Teradata reported strong Q4 2022 financial results, achieving its largest quarter of cloud growth ever and meeting or beating every element of its annual outlook.

Teradata's Q4 2022 results showed a decrease in total revenue by 5% as reported, but was flat in constant currency. Public cloud ARR increased by 77% to $357 million. The company increased its return of free cash flow target to 75% from 50%.

  • Public cloud ARR of $357 million, an increase of 77% as reported and 81% in constant currency from the prior year period.
  • Fourth quarter recurring revenue of $357 million, a decrease of 2% as reported and an increase of 3% in constant currency from the prior year period.
  • Recurring revenue was 79% of total revenue in the fourth quarter, up from 77% in the prior year period.
  • Fourth quarter Non-GAAP diluted earnings per share of $0.35.

Headline financials

Total Revenue

$452M

Previous: $475M-4.8%
EPS (adj)

$0.35

Previous: $0.57-38.6%
Public Cloud ARR

$357M

Previous: $202M+76.7%
GAAP Gross Margin

58.2%

Previous: 61.9%-6.0%
Non-GAAP Gross Margin

59.5%

Previous: 63.2%-5.9%
GAAP Operating Margin

2.4%

Previous: 10.5%-77.1%
Non-GAAP Operating Margin

13.7%

Previous: 18.9%-27.5%
Capital Expenditures

$8M

Previous: $9M-11.1%
Free Cash Flow

$120M

Previous: $85M+41.2%
Net Income

-$7M

Previous: $33M-121.2%
Operating Income

$11M

Previous: $50M-78.0%
Gross Profit

$263M

Previous: $294M-10.5%
Cash & Equivalents

$569M

Previous: $592M-3.9%
Total Assets

$2.02B

Previous: $2.17B-6.8%
Stock-Based Comp

$36M

Previous: $33M+9.1%

Revenue & EPS history

Teradata · Revenue · Quarterly

$452M

Q4 2022-4.8%vs Q4 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Teradata · $78M total across 1 segment · Q4 2022

  • Consulting
    $78M-15.2%

Forward guidance

Teradata provided financial guidance for the full year 2023, including expectations for public cloud ARR, total ARR, recurring revenue, total revenue, GAAP diluted EPS, non-GAAP diluted EPS, cash flow from operations, and free cash flow. The company also provided guidance for the first quarter of 2023.

Tailwinds

  • Public cloud ARR is expected to increase in the range of 53% to 57% year-over-year
  • Total ARR is expected to increase in the range of 6% to 8% year-over-year
  • Recurring revenue is expected to increase in the range of 4% to 7% year-over-year
  • Total revenue is expected to increase in the range of 1% to 4% year-over-year
  • Non-GAAP diluted EPS is expected to be in the range of $1.90 to $2.06

Headwinds

  • Cash flow from operations is expected to be in the range $345 million to $385 million
  • Free cash flow is expected to be in the range of $320 million to $360 million
  • GAAP diluted EPS is expected to be in the range of $0.63 to $0.79
  • GAAP diluted EPS is expected to be in the range of $0.32 to $0.36 for Q1 2023
  • Non-GAAP diluted EPS is expected to be in the range of $0.60 to $0.64 for Q1 2023

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 Q4 2022

Historical avgQ4 2022

-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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