Teradata Reports Better Than Expected 2017 Third Quarter Results
Increases guidance for full year revenue and earnings per share
Product recurring revenue grew 14 percent from the third quarter 2016
Strong product annual recurring revenue (ARR) growth of 23 percent versus the prior year period
Increasing sales funnel driven by customer adoption of new purchasing and deployment options
Repurchased 6.3 million shares in the third quarter for approximately $200 million
ATLANTA - November 2, 2017 -- Teradata Corp. (NYSE: TDC) today reported revenue of $526 million for the quarter ended September 30, 2017, compared to $552 million in the third quarter of 2016. Total recurring revenue of $267 million increased 8 percent from the third quarter of 2016, while recurring product revenue of $82 million increased 14 percent year over year and increased 9 percent compared to the second quarter of 2017. In addition, total ARR increased 10 percent from September 30, 2016, while product ARR (which excludes maintenance) increased 23 percent.
Teradata reported GAAP net income of $13 million in the third quarter, or $0.10 per diluted share, which compared to $49 million, or $0.37 per share, in the third quarter of 2016. Stock-based compensation expense and special items reduced Teradata’s third quarter net income by $23 million, or $0.19 per diluted share. Excluding stock-based compensation expense and special items as described in footnote #1, non-GAAP net income in the third quarter of 2017 was $36 million, or $0.29 per diluted share(1), compared to $91 million or $0.69 per diluted share in the prior year period. (1)
“We reported better than expected revenue and earnings per share as we are seeing strong adoption of our new purchasing and deployment options available with Teradata Everywhere,” said Vic Lund, President and Chief Executive Officer, Teradata. “Our strategy is working and our sales funnel is continuing to grow. We now give our customers more flexible solution choices and capabilities and provide users more control, performance and scale than they will find anywhere else. I am pleased that Teradata has turned the corner and is well positioned to deliver in the fourth quarter and build good momentum going into 2018.”
Segment Revenue Performance
For the Three Months Ended September 30
% Change as Reported
% Change in Constant Currency (2)
Americas Data and Analytics
International Data and Analytics
Total Data and Analytics
The following information was filed by Teradata Corp (TDC) on Thursday, November 2, 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: 0000816761-17-000039 Submitted to the SEC: Mon Nov 06 2017 1:29:27 PM EST Accepted by the SEC: Mon Nov 06 2017 Period: Saturday, September 30, 2017 Industry: Electronic Computers