Teradata Clocks 5% Revenue Decline In Q4

  • Teradata Corp TDC reported a fourth-quarter revenue decline of 5% year-on-year to $452 million, beating the consensus of $436.3 million.
  • Non-GAAP EPS of $0.35 beat the consensus of $0.30.
  • Public cloud ARR increased to $357 million, up 77% Y/Y. Total ARR decreased to $1.482 billion, down by 1% Y/Y.
  • Recurring revenue was $357 million, down by 2% Y/Y. Non-GAAP gross margin was 59.5%, down from 63.2% a year ago.
  • Teradata generated a free cash flow of $120 million, up from $85 million a year ago.
  • CFO Claire Bramley said, "We are energized to continue our momentum into 2023, accelerating our growth forecasts for ARR, revenue, and earnings per share. We remain on-track to achieve over one billion dollars of cloud ARR in 2025 while driving future margin expansion and free cash flow growth."
  • Outlook: Teradata sees FY23 revenue growth of 1% - 4% Y/Y (consensus $1.80 billion) and adj EPS of $1.90 - $2.06 (consensus $1.89).
  • Teradata sees Q1 adj EPS of $0.60 - $0.64 (consensus $0.59).
  • Price Action: TDC shares closed lower by 2.28% at $34.27 on Friday.
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