Customer adoption of Teradata’s new subscription-based offerings exceeds expectations
Strong product Annual Recurring Revenue (ARR) growth in second quarter
With customer activity and sales funnel increasing, Teradata expects strong finish to the year
Teradata intends to repurchase up to $300 million of its shares in second half of year
Year-to-date cash from operations was $309 million, $275 million of free cash flow (1)
ATLANTA, July 27, 2017 -- Teradata Corp. (NYSE: TDC) reported revenue of $513 million for the quarter ended June 30, 2017, versus $599 million in the second quarter of 2016. However, revenue in the second quarter of 2016 included $35 million of revenue from the Marketing Applications business that Teradata sold on July 1, 2016.
Teradata is seeing good momentum in its business transformation as more customers than anticipated chose to purchase Teradata’s technology by utilizing the company’s new subscription-based options in the quarter. The $58 million of perpetual equivalent contract value from these transactions will be recognized as revenue over time. Product Annual Recurring Revenue (ARR) continues to meaningfully increase as more of Teradata’s customers adopt its new purchasing options.
As reported under U.S. Generally Accepted Accounting Principles (GAAP), Teradata recorded a net loss of $4 million in the second quarter, or $(0.03) per share, which compared to $64 million of net income, or $0.49 per diluted share, in the second quarter of 2016. Excluding stock-based compensation expense, and the special items described in footnote #2, non-GAAP net income in the second quarter of 2017 was $28 million, or $0.22 per diluted share. 2016 second quarter non-GAAP net income was $93 million, or $0.71 per diluted share, which excluded stock-based compensation expense, special items and the divested Marketing Applications business.(2)
“We are building the Teradata of the future to provide customers greater choice and make it easier for them to buy and to grow with Teradata,” said Vic Lund, President and Chief Executive Officer, Teradata. “Our Teradata Everywhere strategy arms customers with new analytic capabilities built on flexible hybrid ecosystems that combine on-premises and cloud. I am encouraged that subscription licenses are being adopted faster than expected and customer demand is increasing our pipeline. I am more confident than ever about Teradata’s future and am looking forward to significant upward momentum through 2017 and into 2018.”
Segment Revenue Performance
For the Three Months Ended March 31
% Change as Reported
% Change in Constant Currency (1)
Americas Data and Analytics
International Data and Analytics
Total Data and Analytics
The following information was filed by Teradata Corp (TDC) on Thursday, July 27, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Ticker: TDC CIK: 816761 Form Type:10-Q Quarterly Report Accession Number: 0000816761-17-000033 Submitted to the SEC: Fri Aug 04 2017 3:01:53 PM EST Accepted by the SEC: Fri Aug 04 2017 Period: Friday, June 30, 2017 Industry: Electronic Computers