SAN DIEGO–(BUSINESS WIRE)–Teradata (NYSE: TDC) today announced its fourth-quarter and full-year 2021 financial results.
“2021 was an impressive year for Teradata. We delivered strong results, driving more than 90% growth in public cloud ARR and significantly growing new cloud customers. I am proud of our team’s 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. “The strength of our performance in 2021 is matched by our conviction to continue accelerating in 2022. We look forward to delivering ongoing innovation for our customers, maintaining our ethos of strong corporate citizenship, and driving profitable growth and long-term value creation for our shareholders.”
“Teradata is raising its 2022 outlook for public cloud ARR and EPS, as well as increasing the return of capital to shareholders,” said Claire Bramley, Chief Financial Officer, Teradata. “We continue to demonstrate our commitment to deliver shareholder value through disciplined capital allocation, including our intention to enter into a $250 million accelerated share repurchase program in the first quarter, enabled by our strong balance sheet and projections of cash flow generation.”
Fourth-Quarter 2021 Financial Highlights Compared to Fourth-Quarter 2020
- Public cloud ARR increased to $202 million from $106 million, an increase of 91% as reported and 92% in constant currency(1)
- ARR increased to $1.492 billion from $1.425 billion, an increase of 5% as reported and 7% in constant currency(1)
- Recurring revenue was $364 million versus $346 million, an increase of 5% as reported and 6% in constant currency(1)
- Total revenue was $475 million versus $491 million, a decrease of 3% as reported and 2% in constant currency(1)
- GAAP gross margin was 61.9% versus 57.8%
- Non-GAAP gross margin was 63.2% versus 59.3%(2)
- GAAP operating income was $50 million versus $13 million
- Non-GAAP operating income was $90 million versus $67 million(2)
- GAAP diluted EPS was $0.29 versus $0.04 per share
- Non-GAAP diluted EPS was $0.57 versus $0.38(2)
- Cash flow from operations was $95 million compared to $56 million
- Free cash flow was $85 million compared to $45 million(3)
Full-Year 2021 Financial Highlights Compared to Full Year 2020
- Recurring revenue was $1.464 billion from $1.309 billion, an increase of 12% as reported and 11% in constant currency(1)
- Total revenue was $1.917 billion from $1.836 billion, an increase of 4% as reported and 3% in constant currency(1)
- GAAP gross margin was 61.9% versus 55.5%
- Non-GAAP gross margin was 63.4% versus 58.4%(2)
- GAAP operating income was $231 million versus $16 million
- Non-GAAP operating income was $393 million versus $230 million(2)
- GAAP diluted EPS was $1.30 versus $1.16
- Non-GAAP diluted EPS was $2.43 versus $1.31(2)
- Cash flow from operations was $463 million versus $267 million
- Free cash flow was $432 million versus $216 million(3)
Outlook
For the full year 2022:
- Public cloud ARR is expected to increase by approximately 80% year-over-year. This is an increase from at least 70% growth year-over-year, which was previously communicated at Teradata’s Investor Day in September 2021.
- 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 low-to-mid-single-digit percentage year-over-year.
- Total revenue is expected to be flat-to-low-single-digit percentage growth year-over-year.
- GAAP diluted EPS is expected to be in the range of $0.75 to $0.85.
- Non-GAAP diluted EPS is expected to be in the range of $1.82 to $1.92. This is an increase from the range of $1.60 to $1.70, which was previously communicated at Teradata’s Investor Day in September 2021.(2)
- Cash flow from operations is expected to be approximately $430 million.
- Free cash flow is expected to be approximately $400 million.(3)
For the first quarter of 2022:
- GAAP diluted EPS is expected to be in the range of $0.35 to $0.39.
- Non-GAAP diluted EPS is expected to be in the range of $0.63 to $0.67.(2)
Earnings Conference Call
A conference call is scheduled for today at 2:00 p.m. PT to discuss the Company’s fourth-quarter and full-year 2021 results, and provide a business and financial update. Access to the conference call, as well as a replay of the conference call, is available on Teradata’s website at investor.teradata.com.
About Teradata
Teradata is the connected multi-cloud data platform for enterprise analytics company. Our enterprise analytics solve business challenges from start to scale. Only Teradata gives you the flexibility to handle the massive and mixed data workloads of the future, today. Learn more at Teradata.com.
Contacts
INVESTOR CONTACT
Christopher T. Lee
858-485-2523 office
[email protected]
MEDIA CONTACT
Jennifer Donahue
858-485-3029 office
[email protected]
Author Information
As a detail-oriented researcher, Sherril is expert at discovering, gathering and compiling industry and market data to create clear, actionable market and competitive intelligence. With deep experience in market analysis and segmentation she is a consummate collaborator with strong communication skills adept at supporting and forming relationships with cross-functional teams in all levels of organizations.
Sherril holds a Master of Business Administration in Marketing from University of Colorado, Boulder and a Bachelor of Arts in Psychology from Rutgers University.
