Teradata Corp. (TDC) Tops Q4 EPS by 13c, Revenues Beat; Offers 1Q EPS Guidance Above Consensus, FY21 EPS Mid-Point Guidance Above Consensus

February 4, 2021 4:18 PM EST

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Teradata Corp. (NYSE: TDC) reported Q4 EPS of $0.38, $0.13 better than the analyst estimate of $0.25. Revenue for the quarter came in at $491 million versus the consensus estimate of $475.35 million.

Fourth-Quarter 2020 Financial Highlights compared to Fourth Quarter 2019

  • ARR increased 11% reported and 9% in constant currency to $1.587 billion from $1.427 billion(1)
  • Public cloud ARR increased 165% reported and 159% in constant currency to $106 million from $40 million(1)
  • Recurring revenue was $383 million versus $350 million, an increase of 9% reported and 8% in constant currency, and exceeded the Company’s guidance of $371 million to $373 million(1)
  • GAAP gross margin was 57.8% versus 50.2%
  • Non-GAAP gross margin was 59.3% versus 53.2%(3)
  • GAAP operating income was $13 million versus an operating loss of $5 million
  • Non-GAAP operating income was $67 million versus $48 million(3)
  • GAAP diluted EPS was $0.04 versus a loss of $0.17 per share
  • Non-GAAP diluted EPS was $0.38 versus $0.22(3)
  • Cash flow from operations was $56 million compared to $54 million
  • Free cash flow was $45 million compared to $41 million(2)

“Our Cloud-First focus has been recognized by our customers and the marketplace. Teradata achieved 165% growth in public cloud ARR year-over-year and received significant industry endorsement as a leading cloud data platform,” said Steve McMillan, President and CEO, Teradata. “Our cloud momentum has contributed to another strong quarter of performance, as we exceeded quarterly expectations for recurring revenue, profitability and free cash flow.”

“I am proud of the extraordinary resilience of our teams in 2020 and look forward to an even-stronger 2021. Companies must take advantage of all the data that is available to them to succeed, and we are steadfast in providing the enterprise scale and flexibility our customers need with our multi-cloud data platform. We are accelerating our cloud roadmap and bringing cloud-native integrations at a record pace, and we anticipate driving annual growth of at least 100% in cloud ARR, as well as year-over-year growth in total company revenue, profitability and free cash flow for Teradata in 2021.”

GUIDANCE:

Teradata Corp. sees Q1 2021 EPS of $0.38-$0.40, versus the consensus of $0.32.

Teradata Corp. sees FY2021 EPS of $1.50-$1.58, versus the consensus of $1.50.

For the first quarter of 2021:

  • Public cloud ARR is expected to increase by at least 165% year-over-year
  • GAAP diluted EPS is expected to be in the range of $0.11 to $0.13
  • Non-GAAP diluted EPS, excluding stock-based compensation expense, reorganization-related expenses and other special items, is expected to be in the range of $0.38 to $0.40(3)

For the full year 2021:

  • 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
  • GAAP diluted EPS is expected to be in the range of $0.43 to $0.51
  • Non-GAAP diluted EPS, excluding stock-based compensation expense, reorganization-related expenses and other special items, is expected to be in the range of $1.50 to $1.58(3)

For earnings history and earnings-related data on Teradata Corp. (TDC) click here.



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