Our enterprise analytics solve business challenges from start to scale. The attack went undetected for months, according to a Reuters report. Teradata is the connected multi-cloud data platform for enterprise analytics company. "And could even see a traditional networking company like CSCO taking a look at FSLY.". And just last month, Adobe executives announced the company is acquiring the beloved design startup Figma for $20 billion. That likely makes the company a target for private-equity firms. Additional information regarding Teradatas operating results is provided below as well as on Teradatas website at investor.teradata.com. Free cash flow does not represent the residual cash flow available for discretionary expenditures since there may be other nondiscretionary expenditures that are not deducted from the measure. In fact, the company earned more than twice the predicted profit -- $0.57 per share -- and needed sales of only $475 million to do it. "2021 was an impressive year for Teradata. The organization is led by an ancient legacy PMO that needs . Jana Partners is also the activist firm that pushed Zendesk to be acquired by a group of private equity firms led by Hellman & Friedman and Permira. This non-GAAP measure is not meant to be considered in isolation to, as a substitute for, or superior to, results determined in accordance with GAAP, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Learn More. Teradata reports its results in accordance with GAAP. endstream endobj 10088 0 obj <>/Metadata 138 0 R/Outlines 150 0 R/Pages 10083 0 R/StructTreeRoot 167 0 R/Type/Catalog>> endobj 10089 0 obj <>/ExtGState<>/Font<>/XObject<>>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> endobj 10090 0 obj <>stream * Represents the income tax effect of the pre-tax adjustments to reconcile GAAP to Non-GAAP income based on the applicable jurisdictional statutory tax rate of the underlying item. "While CEO and founder Eric Yuan may be hesitant to sell, we still think the right acquirer may make sense given the history with CSCO's acquisition of Webex.". I am proud of our teams steadfast focus on execution and operational excellence that enabled us to meet or beat every element of our annual outlook, said Steve McMillan, President and CEO, Teradata. Over the course of the last year, we have embarked on a journey to cloud-first and today, we are a new, reimagined Teradata a profitable growth company with the right strategy, technology and team to win in a large and growing market, said Steve McMillan, Teradata President and CEO. GAAP profits are predicted to range from $0.75 to $0.85 -- much weaker than in 2021. Reconciling items include stock-based compensation, capitalized software, amortization of acquisition-related intangible assets and acquisition, integration and reorganization-related items. Teradata (TDC 0.36%) stock surged in morning trading today, up 24.2% as of 10:50 a.m. Teradata acquires Aprimo, a global leader in cloud-based integrated marketing software. GAAP diluted EPS is expected to be in the range of $0.75 to $0.85. This non-GAAP measure is not meant to be considered in isolation to, as a substitute for, or superior to, results determined in accordance with GAAP, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Making the world smarter, happier, and richer. Additional information regarding Teradatas operating results is provided below as well as on Teradatas website at investor.teradata.com. Teradata Highlights its New Strategy and Plan to Deliver Sustainable Annual recurring revenue (ARR) is defined as the annual value at a point in time of all recurring contracts, including subscription, cloud, software upgrade rights, and maintenance. What it does: N-Able makes software for IT management, including monitoring, management, security, and ticketing tools. Teradata Reports Fourth-Quarter and Full-Year 2021 Financial Results Multiple sources told us Teradata's customer service field support team, which has shrunk in recent years, were mostly given their marching orders. ARR does not include managed services and third-party software. Why The Valuation Gap Could Narrow Let . We delivered strong results, driving more than 90% growth in public cloud ARR and significantly growing new cloud customers. Teradatas management uses free cash flow to assess the financial performance of the Company and believes it is useful for investors because it relates the operating cash flow of the Company to the capital that is spent to continue and improve business operations. Cost basis and return based on previous market day close. CONDENSED CONSOLIDATED STATEMENTS OF INCOME, (in millions, except per share amounts - unaudited), CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS. christopher.lee@teradata.com 858-485-2523 office Only Teradata gives you the flexibility to handle the massive and mixed data workloads of the future, today. But investors seem fine with that today, given that the company nearly doubled its "public cloud" annual recurring revenue and grew the portion of its total revenue that is recurring by 7 full percentage points to 77%. 2021 was an impressive year for Teradata. Why it's an acquisition target: Zoom saw huge growth during the early days of the pandemic due to the sudden shift to remote work, but since the beginning of this year, its stock has fallen back to pre-2020 levels. As described below, the Company believes that free cash flow is a useful non-GAAP measure for investors. The company's growth has stagnated in recent years due to competition from players like Dynatrace and Datadog, and its customer count is down. However, Box ended up getting an investment from the private-equity firm KKR that halted rumors of a sale and subsequently saw higher growth rates. Our non-GAAP measures are not meant to be considered in isolation to, as substitutes for, or superior to, results determined in accordance with GAAP, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Forward-looking statements generally relate to opinions, beliefs, and projections of expected future financial and operating performance, business trends, liquidity, and market conditions, among other things. In the private-equity space, various firms have been acquiring both public- and private-software companies. "Given intense competition, we believe the company could benefit from additional scale and could be an interesting asset to a bigger platform vendor that could spend more than Sumo could as an independent company," the analysts wrote. 17095 Via Del Campo Forward-looking statements generally relate to opinions, beliefs, and projections of expected future financial and operating performance, business trends, and market conditions, among other things. Is this step a sign of an IBM takeover? Teradata's systems are highly engineered and while replacing a power supply or a disk drive should be a simple process, if something more serious fails "it can be catastrophic," our source said. Free cash flow does not have a uniform definition under GAAP and, therefore, Teradatas definition may differ from other companies definitions of this measure. Access to the conference call, as well as a replay of the conference call, is available on Teradatas website at investor.teradata.com. What happened was that foreign hackers, who some top US officials believe are from Russia, were able to use the hack to spy on private companies like the elite cybersecurity firm FireEye and the upper echelons of the US government, including the Department of Homeland Security and the Treasury Department. It has the power of cloud storage along with good querying capacity to retrieve data for customized analytics. Free cash flow is a non-GAAP measure. Teradata does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. These forward-looking statements are based upon current expectations and assumptions and often can be identified by words such as expect, strive, looking ahead, outlook, guidance, forecast, anticipate, continue, plan, estimate, believe, will, would, likely, intend, potential, or similar expressions. What it does: Box makes cloud-based file-sharing and content-management software. "Going private could be the right move for it to better manage its turnaround path back to market growth," RBC analysts wrote. Teradata filed a carry back of its 2020 NOL to claim a refund for taxes it paid in 2015, which created a one-time income tax benefit for GAAP reporting purposes for the difference between the 2015 federal statutory tax rate of 35% and the current federal statutory rate of 21%. The analyst . This release contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934. 16 Cloud-Software Firms That Are M&A Targets: RBC Analysts Teradata Reports Fourth-Quarter and Full-Year 2021 Financial Results The Companys GAAP effective tax rate for the three and twelve months ended December 31, 2020, includes a net $9 million income tax benefit resulting from the CARES Act of 2020, which allows US corporations a one-time opportunity to claim income tax refunds by allowing a 5-year net operating loss (NOL) carryback for taxable losses incurred in the tax year 2020. Learn more at Teradata.com. After going public in 2018, the company's growth has stagnated in recent years, and its software would likely grow faster as part of a larger platform, several analysts have said. PDF Teradata Announces Preliminary First Quarter Fiscal 2021 Financial Teradata reports its results in accordance with GAAP. Our enterprise analytics solve business challenges from start to scale. year 2021 financial results. Companies like Salesforce and Microsoft would benefit from buying Smartsheet and adding those capabilities to their platforms, the analysts wrote. Christopher T. Lee The acquisition is a milestone in the execution of the Teradata world-class applications business. In 2018, TDC removed $66 million (42% of non-GAAP net income) in stock-based compensation. This includes machine upgrade and machine migration, as well as software support, such as upgrades or specific patches. GAAP diluted EPS is expected to be in the range of $0.35 to $0.39. News and Press Releases | Teradata The following table reconciles Teradatas projected cash provided by operating activities under GAAP to projected free cash flow for fiscal 2021. Additionally, Coupa's stock has fallen in recent months, making it cheaper for any potential acquirer. Adjustments to reconcile net income to net cash provided by operating activities: Effect of exchange rate changes on cash and cash equivalents, Public cloud ARR of $202 million, an increase of 91% as reported from the prior year period, Fourth quarter recurring revenue of $364 million, an increase of 5% as reported from the prior year period, Recurring revenue was 77% of total revenue in the fourth quarter, up from 70% the prior year period, Fourth quarter GAAP earnings per diluted share of $0.29, above the previously provided outlook range of $(0.05) to $(0.01), Fourth quarter Non-GAAP earnings per diluted share of $0.57, above the previously provided outlook range of $0.25 to $0.29, Fourth quarter cash from operations of $95 million and free cash flow of $85 million, Intends to enter into a $250 million accelerated share repurchase program in the first quarter, Public cloud ARR increased to $202 million from $106 million, an increase of 91% as reported and 92% in constant currency, ARR increased to $1.492 billion from $1.425 billion, an increase of 5% as reported and 7% in constant currency, Recurring revenue was $364 million versus $346 million, an increase of 5% as reported and 6% in constant currency, Total revenue was $475 million versus $491 million, a decrease of 3% as reported and 2% in constant currency, Non-GAAP gross margin was 63.2% versus 59.3%, GAAP operating income was $50 million versus $13 million, Non-GAAP operating income was $90 million versus $67 million, GAAP diluted EPS was $0.29 versus $0.04 per share, Non-GAAP diluted EPS was $0.57 versus $0.38, Cash flow from operations was $95 million compared to $56 million, Free cash flow was $85 million compared to $45 million, Recurring revenue was $1.464 billion from $1.309 billion, an increase of 12% as reported and 11% in constant currency, Total revenue was $1.917 billion from $1.836 billion, an increase of 4% as reported and 3% in constant currency, Non-GAAP gross margin was 63.4% versus 58.4%, GAAP operating income was $231 million versus $16 million, Non-GAAP operating income was $393 million versus $230 million, Non-GAAP diluted EPS was $2.43 versus $1.31, Cash flow from operations was $463 million versus $267 million, Free cash flow was $432 million versus $216 million. While its growth has made it less of an acquisition target, RBC analysts wrote that any "misstep" would make it an attractive candidate for a private-equity firm to acquire. Rich Smith has no position in any of the stocks mentioned. Why it's an acquisition target: N-Able has a large market opportunity in the managed-service provider space for small- to medium-sized businesses, RBC analysts wrote. Recurring revenue is expected to grow at a low-to-mid-single-digit percentage year-over-year. In addition, for the non-GAAP operating margin target for fiscal 2025, Teradata is not providing a reconciliation to the most comparable GAAP measure (GAAP operating margin target for fiscal 2025) as non-GAAP adjustments relate to events that have not yet occurred and would be unreasonably burdensome to forecast. A Look At Teradata's History & Achievements The Teradata logo is a trademark, and Teradata is a registered trademark of Teradata Corporation and/or its affiliates in the U.S. and worldwide. Free cash flow is expected to be approximately $400 million. Who could acquire it: Another cloud or software company, or private equity. Why it's an acquisition target: In 2020, SolarWinds faced a cyberattack that spread to its clients and wreaked havoc on the company. Speaking to The Register earlier this year, Teradata CEO Steve McMillan argued the company's heritage in on-prem systems offers users the ability to optimise workloads in the cloud for cost. Free cash flow does not have a uniform definition under GAAP and, therefore, Teradatas definition may differ from other companies definitions of this measure. To receive notifications via email, enter your email address and select at least one subscription below. The company faced an activist investor in 2021 who wanted to replace the board and push for higher growth rates, and there were rumors it was pursuing a sale amid the pressure. We have long been trusted by our customers but what sets Teradata apart is our unique ability to provide a true hybrid, multi-cloud solution, delivering the best price performance at scale in the industry., McMillan continued, This year we continuously focused on delivering on our commitments, including building our recurring revenue streams into sustainable and profitable revenue and free cash flow. In particular, free cash flow indicates the amount of cash generated after capital expenditures for, among other things, investment in the Companys existing businesses, strategic acquisitions, strengthening the Companys balance sheet, repurchase of the Companys stock and repayment of the Companys debt obligations, if any. Non-GAAP diluted EPS is expected to be in the range of $1.82 to $1.92. analysts and experts expect to see more consolidation, Adobe executives announced the company is acquiring the beloved design startup Figma, its stock has fallen back to pre-2020 levels, were rumors it was pursuing a sale amid the pressure, investment from the private-equity firm KKR. Public cloud ARR is expected to increase by approximately 80% year-over-year. Each of our non-GAAP measures do not have a uniform definition under GAAP and therefore, Teradatas definition may differ from other companies definitions of these measures. 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; GAAP earnings per diluted share is expected to be in the range of $0.78 to $0.82; Non-GAAP earnings per diluted share, excluding stock-based compensation expense, reorganization-related expenses, and other special items, is expected to be in the range of $1.92 to $1.96, Cash flow from operations is expected to be at least $440 million; and, Free cash flow is expected to be at least $400 million. The Companys full-year 2020 GAAP marginal effective tax rate included $3 million of tax expense related to tax contingencies pursuant to FIN 48. Including the income tax effect assists investors in understanding the tax provision associated with those adjustments and the effective tax rate related to the underlying business and performance of the Companys ongoing operations.