The News: Teradata revenue for Q4 2022 totaled $452 million, beating analyst estimates of $436.6 million, as the multi-cloud enterprise data analytics vendor announced its fourth quarter and full fiscal year 2022 earnings on February 13 for the year ending December 31, 2022. Teradata also reported Q4 2022 non-GAAP diluted earnings per share (EPS) of $0.35 per share, beating analyst estimates of $0.30 per share. Read the full Q4 and FY2022 earnings Press Release from Teradata.
Teradata Revenue for Q4 2022 Hits $452M, Beating Estimates
Analyst Take: Teradata beating its revenue and EPS estimates for Q4 2022 were bright spots in the company’s mixed earnings for the quarter and for the full FY2022.
As difficult macroeconomic conditions continue across world markets, Teradata, like most tech vendors, is looking to the future to bolster its economic performance over time as the Covid-19 pandemic recedes and as the global economy slowly improves.
Here are the Teradata Q4 and full FY2022 earnings results by the numbers:
- Q4 FY2022 revenue of $452 million, down five percent from $475 million one year ago. The $452 million in revenue beat analyst consensus estimates of $436.6 million from Investing.com.
- Q4 FY2022 non-GAAP gross profit of $269 million, down 10 percent from $300 million one year ago.
- Q4 FY2022 non-GAAP net income of $36 million, down 44 percent from $64 million one year ago.
- Q4 FY2022 non-GAAP diluted earnings per share of $0.35, down from $0.57 per share one year ago. That Q4 FY2022 EPS of $0.35, however, beat consensus estimates of $0.30 cents per share from analysts at Investing.com.
- Q4 FY2022 non-GAAP operating income of $62 million, down 31 percent from $90 million one year ago.
- Full FY2022 revenue of $1.80 billion, down six percent from $1.9 billion one year ago.
- Full FY2022 non-GAAP gross profit of $1.1 billion, down nine percent from $1.2 billion one year ago.
- Full FY2022 non-GAAP net income of $174 million, down 36 percent from $274 million one year ago.
- Full FY2022 non-GAAP diluted earnings per share of $1.64, down from $2.43 per share one year ago.
- Full FY2022 non-GAAP operating income of $286 million, down 27 percent from $393 million one year ago.
Teradata’s Q4 and FY2022 performances show a solid slate of earnings from this company. While the overall macro is tough, Teradata is well positioned for hybrid-cloud scale growth. It is also well positioned for customers that are utilizing existing infrastructure more, while slowing certain workload migrations to the public cloud.
Teradata Revenue by Region
Teradata’s Q4 revenue by region included $257 million from the Americas in fiscal 2022, which was unchanged from the prior year, and $128 million from EMEA, which was down five percent from the prior year when EMEA revenue totaled $135 million. The Asia, Pacific, Japan region brought in $67 million in revenue in Q4, which was down 18 percent from $82 million one year ago.
The company’s overall recurring revenue for Q4 totaled $357 million for Q4, which was down two percent from $364 million one year ago.
For the full FY2022, Teradata revenue by region included $1.03 billion from the Americas, which was down one percent from $1.04 billion one year ago, and $465 million from EMEA, which was down 14 percent from the prior year when EMEA revenue totaled $543 million. The Asia, Pacific, Japan region brought in $292 million in revenue in FY2022, which was down 12 percent from $330 million one year ago.
For Q4, the company’s Annual Recurring Revenue (ARR) totaled $357 million, which was down two percent from $364 million one year ago. For full FY2022, Teradata’s total ARR totaled $1.41 billion, which was down three percent from $1.46 billion one year ago.
Public cloud ARR for Teradata in full FY2022 had a particularly good performance with revenue totaling $357 million, up 77 percent from $202 million in FY2021.
That was Teradata’s largest quarter of cloud ARR growth ever, which was highlighted in an earnings call by Steve McMillan, Teradata’s president and CEO. It was a good ARR boost for the cloud data and analytics vendor and its executive team as the company continues to follow its road map to better serving its customers while growing revenue.
While Teradata’s public cloud revenue total is still relatively small so far, its public cloud ARR is impressive, especially its 77 percent growth YoY. We like the high amount of predictable revenue that Teradata is seeing.
Teradata Q1 Earnings Guidance
As part of its Q4 and FY2022 earnings report, Teradata also provided financial guidance for the first quarter of FY2023 and for the full FY2023.
For Q1, Teradata expects non-GAAP diluted EPS between $0.60 to $0.64 per share.
For the full FY2023, non-GAAP diluted EPS is expected to be between $1.90 to $2.06 per share, while cash flow from operations is expected to be between $345 million to $385 million.
Teradata’s free cash flow for FY2023 is expected to be between $320 million to $360 million, while total revenue is expected to rise between one percent to four percent year-over-year.
The company also said that it expects its public cloud ARR to rise in FY2023 by 53 percent to 57 percent YoY, while its total ARR is expected to increase between six percent to eight percent YoY.
Teradata Revenue Overview
Amid challenging macroeconomic conditions, Teradata is well positioned for growth as we watch for our near-term economy to rise again in 2023 or early 2024.
As we have said before, Teradata continues to display positive enterprise chops in a crowded and competitive marketplace, where it battles against the likes of giants including IBM, Microsoft, Google, Amazon Web Services, Salesforce and others.
It will be interesting to monitor this innovative multi-cloud enterprise data analytics vendor as it continues its growth through the rest of FY2023 under the leadership of its capable executive team.
Disclosure: Futurum Research is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of Futurum Research as a whole.
Other insights from Futurum Research:
Teradata Q2 2022 Public Cloud ARR was up $234 Million, an Increase of 68 Percent
Teradata Reimagines Strategy to Deliver Sustainable Growth and Value Creation
Teradata’s Earnings, Pivot to as-a-Service, and the Road Ahead
