Teradata Corp. (TDC) Tops Q2 EPS by 2c, Revenues Beat; Offers 3Q EPS Guidance Above Consensus, 3Q Revenue Outlook Below Consensus

Teradata Corp. (NYSE: TDC) reported Q2 EPS of $0.24, $0.02 better than the analyst estimate of $0.22. Revenue for the quarter came in at $457 million versus the consensus estimate of $436.89 million.

• Second-quarter results exceeded Company expectations on key revenue, profit and cash flow metrics
• Annual Recurring Revenue (ARR) increased 8% reported and 9% in constant currency(1) from the same period of the prior year
• Second-quarter recurring revenue of $358 million exceeded Company’s guidance range
• In the second quarter, operating cash flow improved to $130 million and free cash flow totaled $115 million(2)

Teradata reported 2020 second-quarter net loss of $(43) million under U.S. Generally Accepted Accounting Principles (GAAP), or $(0.40) per share, which compared to a net loss of $(1) million, or $(0.01) per share, in the second quarter of 2019. On a non-GAAP basis, which excludes stock-based compensation expense and other special items, 2020 second-quarter net income was $26 million, or $0.24 per diluted share, as compared to $34 million, or $0.29 per diluted share in the second quarter of 2019(3).

“Teradata executed well in the quarter, exceeding expectations for our key metrics and delivering robust ARR growth, strong recurring revenue growth, significant free cash flow, and solid earnings per share, despite the uncertainties posed by the COVID-19 pandemic. The Teradata team demonstrated great resiliency and pivoted quickly and smoothly to support our customers and advance our business, regardless of physical constraints,” said Steve McMillan, President and CEO, Teradata. “Our strong relationships with our stable customer base, combined with our deeply rooted dedication to delivering outstanding business value, are serving us well during these unprecedented times. As we accelerate our cloud efforts, we are listening to the market and our customers, responding with speed and agility, and ensuring we are providing value for our customers, supporting our people and delivering on our expectations.”

GUIDANCE:

Teradata Corp. sees Q3 2020 EPS of $0.28-$0.31, versus the consensus of $0.22. Teradata Corp. sees Q3 2020 revenue of $359-361 million, versus the consensus of $443.3 million.

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

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