Teradata Corp. (NYSE: TDC) reported Q1 EPS of $0.69, $0.22 better than the analyst estimate of $0.47. Revenue for the quarter came in at $491 million versus the consensus estimate of $467.72 million.

• Public cloud ARR increased by $79 million, or 176% from the prior year period, exceeding the outlook of at least 165% year-over-year(1)
• First-quarter recurring revenue of $372 million, an increase of 20% from the prior year period
• Cash from operations of $110 million, an increase of $100 million from the prior year period
• Free cash flow of $105 million, an increase of $107 million from the prior year period(2)
• First-quarter GAAP earnings per diluted share of $0.47 above the previously provided outlook range of $0.11 to $0.13
• First-quarter non-GAAP earnings per diluted share of $0.69 above the previously provided outlook range of $0.38 to $0.40(3)

“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. Our relentless focus on profitable growth, coupled with the strength of Vantage, is driving our performance and positioning Teradata to win over the long-term,” said Steve McMillan, President and CEO, Teradata. “The momentum for our connected, multi-cloud data platform for enterprise analytics continues to grow, demonstrating that our pivot to the cloud is the right strategy for Teradata.”

GUIDANCE:

Teradata Corp. sees Q2 2021 EPS of $0.47-$0.49, versus the consensus of $0.40.

Teradata Corp. sees FY2021 EPS of $1.61-$1.67, versus the consensus of $1.71.

Affirming the following outlook 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

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
• Non-GAAP earnings per diluted share, excluding stock-based compensation expense, reorganization-related expenses, and other special items, is now expected to be in the range of $1.61 to $1.67(3), up from our prior outlook of $1.50 to $1.58
• 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
• 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

For the second quarter of 2021:

• Public cloud ARR is expected to increase by at least 155% year-over-year, or by $15 million to $20 million sequentially
• GAAP diluted EPS is expected to be in the range of $0.17 to $0.19
• 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(3)

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