Teradata Reports Better Than Expected 2017 Results
Better than expected fourth quarter revenue of $626 million, full-year revenue was $2.156 billion(1)
GAAP EPS for the fourth quarter included a $126 million net charge related to U.S. tax reform
Fourth quarter and full-year non-GAAP EPS(2) and cash flow(3) exceeded expectations
Teradata Board increases authorization for share repurchases $310 million to $500 million
ATLANTA - February 8, 2018 -- Teradata Corp. (NYSE: TDC) reported revenue of $626 million for the quarter ended December 31, 2017, the same as the $626 million reported in the fourth quarter of 2016. Full-year 2017 revenue was $2.156 billion, which exceeded the company’s guidance range.
Due to the recent enactment of The Tax Cuts and Jobs Act of 2017 (Tax Reform Act), Teradata reported a net loss under U.S. Generally Accepted Accounting Principles (GAAP) of $(74) million in the fourth quarter, or $(0.61) per share, which compared to net income of $58 million, or $0.44 per diluted share, in the fourth quarter of 2016. For the full-year, including the impact of the charge related to the Tax Reform Act, Teradata reported a net loss of $(67) million, or $(0.53) per share, which compared to $125 million, or $0.95 per diluted share in 2016.
Non-GAAP net income in the fourth quarter of 2017, excluding the tax-related charge, stock-based compensation expense, and the special items described in footnote #2, was $72 million, or $0.58 per diluted share. Fourth quarter 2016 non-GAAP net income was $92 million, or $0.70 per diluted share, which also excluded stock-based compensation expense, and special items.(2) Full-year 2017 non-GAAP net income was $173 million, or $1.35 per diluted share, compared to $338 million, or $2.57 per diluted share in 2016.(2) The decline in 2017 non-GAAP earnings per share for the fourth quarter and full-year was largely due to increased investments related to the company’s transformation initiatives as well as revenue from subscription-based transactions being recognized over time, versus upfront as was largely the case for Teradata’s transactions in 2016.
In addition, customers continued their preference for Teradata’s subscription and cloud offerings in the fourth quarter. During the full-year 2017, $255 million of equivalent value transactions occurred via Teradata’s subscription and cloud offerings, more than the high-end of the company’s expectations when it began the year.
" We are pleased to have delivered a strong fourth quarter, exceeding our guidance for revenue, EPS, and cash flow, while also driving increased utilization of our cloud offerings and subscription licenses,” said Vic Lund, President and Chief Executive Officer, Teradata. “Our success is grounded in the unrivaled combination of our outstanding technology and consulting, our skilled and talented people, and our
The following information was filed by Teradata Corp (TDC) on Thursday, February 8, 2018 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-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.