Better than expected first quarter revenue of $506 million
Bookings mix shift to subscription moving faster than expected
Recurring revenue increased 11 percent from the first quarter of 2017
Repurchased 2.1 million shares during the first quarter for approximately $76 million
SAN DIEGO – May 3, 2018 -- Teradata Corp. (NYSE: TDC) reported revenue of $506 million for the quarter ended March 31, 2018, compared to $491 million reported in the first quarter of 2017. Recurring revenue of $302 million was up 11 percent from the first quarter of 2017. Subscription booking mix was 62 percent in the quarter, significantly higher than the 40 percent - 50 percent anticipated. Teradata’s first quarter year-over-year revenue comparison benefited from approximately 4 percentage points of foreign currency translation(1).
Teradata reported a net loss under U.S. Generally Accepted Accounting Principles (GAAP) of $(7) million in the first quarter, or $(0.06) per share, which compared to a net loss of $(2) million, or $(0.02) per share, in the first quarter of 2017. Non-GAAP net income in the first quarter of 2018, which excludes stock-based compensation expense and special items, was $23 million, or $0.19 per diluted share, as compared to $37 million, or $0.28 per diluted share in the first quarter of 2017.(2) Non-GAAP earnings per share exceeded expectation and guidance for the quarter.
“I am pleased with Teradata’s strong momentum as we continue to execute our growth strategy. We exceeded our plan for revenue and earnings per share, and importantly, we attained these results while achieving a better rate of adoption of subscription licenses. Our increasing sales funnel and the accelerating shift to subscription are clear demonstrations of the value of Teradata to our customers,” said Vic Lund, President and Chief Executive Officer, Teradata. “The Teradata team has performed an amazing accomplishment in driving Teradata’s transformation, and I remain confident in our ability to continue to deliver our winning strategy in 2018.”
For the first quarter of 2018, GAAP gross margin was 44.1 percent versus 45.8 percent for the first quarter of 2017. On a non-GAAP basis, excluding stock-based compensation expense and special items, gross margin for first quarter 2018 was 48.4 percent, versus 51.1 percent in the prior-year period.(2)
The following information was filed by Teradata Corp (TDC) on Thursday, May 3, 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-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: 0000816761-18-000014 Submitted to the SEC: Tue May 08 2018 2:27:06 PM EST Accepted by the SEC: Tue May 08 2018 Period: Tuesday, March 13, 2018 Industry: Electronic Computers