Teradata Columnar, a transformative advance in database technology that fully integrates columnar and row-based tables, launches. GAAP diluted EPS is expected to be in the range of $0.75 to $0.85. More software M&A is in the forecast as valuations and stock prices continue to drop and private companies aren't the only ones likely to get gobbled up. Our non-GAAP measures are not meant to be considered in isolation to, as substitutes for, or superior to, results determined in accordance with GAAP, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Large companies look to score tools at a discount while private-equity firms also eye takeovers. To ensure the most secure and best overall experience on our website, we recommend the latest versions of, Perpetual software licenses, hardware and other, Selling, general and administrative expenses, Right of use assets - operating lease, net, Current portion of finance lease liability, Current portion of operating lease liability, Pension and other postemployment plan liabilities. 10087 0 obj
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In the private-equity space, various firms have been acquiring both public- and private-software companies. Cost basis and return based on previous market day close. The Companys full-year 2020 GAAP marginal effective tax rate included $3 million of tax expense related to tax contingencies pursuant to FIN 48. The Motley Fool recommends Teradata. Forward-looking statements in this release include our 2022 first quarter and full year financial guidance and share repurchase plans. Total ARR is expected to grow at a mid-to-high-single-digit percentage year-over-year. Teradata has acquired in 4 different US states, and 4 countries. "We would note M&A activity has remained elevated in security.". However, RBC analysts note that an acquisition would be difficult given some of the company's bylaws and shareholder agreements. Observers fear a haemorrhage of the knowledge required to keep the unique Teradata systems up and running. Free cash flow is expected to be approximately $400 million. This release contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934. Forward-looking statements generally relate to opinions, beliefs, and projections of expected future financial and operating performance, business trends, liquidity, and market conditions, among other things. This release contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934. 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. Teradata reports its results in accordance with GAAP. The global data warehouse stalwart made its name with tightly integrated software and hardware systems sold as analytics "appliances", but in the last two years has shifted focus to its cloud platform following fierce competition from so-called cloud-native rivals including Snowflake, AWS, Microsoft, and Google. Only Teradata gives you the flexibility to handle the massive and mixed data workloads of the future, today making your data easier to consume everywhere, with no added risk. Teradata ( TDC 0.05%) stock surged in morning trading today, up 24.2% as of 10:50 a.m. 10131 0 obj
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They also note that Microsoft and Google sell their content-management tools as part of a larger suite while Dropbox doesn't have a full-fledged sales team focused on enterprise customers. Christopher T. Lee Given that, it would make sense for a larger company to look into acquiring Zoom. Join SI Premium - FREE. The one-time tax benefit for this intra-entity asset transfer of $157 million was recorded as a deferred tax asset for GAAP reporting purposes in the first quarter of 2020 but was excluded from Non-GAAP results. As described below, the Company believes that free cash flow is a useful non-GAAP measure for investors. RBC analysts wrote that New Relic has long been an acquisition target and that going public would be beneficial for the business in the long-term. The company faced an activist investor in 2021 who wanted to replace the board and push for higher growth rates, and there were rumors it was pursuing a sale amid the pressure. Teradata (NYSE: TDC) today announced its fourth-quarter and full-year 2021 financial results. "Now Teradata has decided to sell the problem to IBM," added one of the insiders. To make the world smarter, happier, and richer. We delivered strong results, driving more than 90% growth in public cloud ARR and significantly growing new cloud customers. Our non-GAAP measures are not meant to be considered in isolation to, as substitutes for, or superior to, results determined in accordance with GAAP, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Our management internally uses supplemental non-GAAP financial measures, such as gross profit, operating income, net income, and EPS, excluding certain items, to understand, manage and evaluate our business and support operating decisions on a regular basis. The Company believes this is a useful metric to investors as it demonstrates progress toward achieving our strategic objectives as outlined in the Form 10-K and Form 10-Q. Learn more at Teradata.com. After going public in 2018, the company's growth has stagnated in recent years, and its software would likely grow faster as part of a larger platform, several analysts have said. hX[o+|LP}"/MbNi Why it's an acquisition target: RBC and other analysts have seen Dropbox as a potential acquisition target for a while. Making the world smarter, happier, and richer. What it does: Duck Creek Technologies makes cloud software for property-and-casualty-insurance companies. Download this Press Release. This non-GAAP measure is not meant to be considered in isolation to, as a substitute for, or superior to, results determined in accordance with GAAP, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. In particular, free cash flow indicates the amount of cash generated after capital expenditures for, among other things, investment in the Companys existing businesses, strategic acquisitions, strengthening the Companys balance sheet, repurchase of the Companys stock and repayment of the Companys debt obligations, if any. jennifer.donahue@teradata.com. But investors seem fine with that today, given that the company nearly doubled its "public cloud" annual recurring revenue and grew the portion of its total revenue that is recurring by 7 full percentage points to 77%. Granted, one way of looking at the numbers is that Teradata missed on sales, pulling in about 1% less revenue than predicted. That's why RBC analysts think it would be a target for a private-equity firm to acquire. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. However, they think the overall market for IT-service management will consolidate over time, and N-Able is one company that a private-equity firm could acquire as part of that trend. 17095 Via Del Campo
And while there have been several large strategic acquisitions recently including Adobe's bid for Figma, which was the largest ever for a private-software company, and Salesforce's $27 billion deal for Slack Rishi Jaluria, an analyst at RBC, sees smaller-scale M&A as more realistic in the current economic environment. View source version on businesswire.com:
However, as described below, the Company believes that certain non-GAAP measures such as non-GAAP gross profit, non-GAAP operating income, non-GAAP net income, and non-GAAP earnings per diluted share, or EPS, all of which exclude certain items (as well as free cash flow), and which may be reported on a constant currency basis, are useful for investors. year 2021 financial results. These forward-looking statements are based upon current expectations and assumptions and involve risks and uncertainties that could cause actual results to differ materially, including the factors discussed in this release and those relating to: the global economic environment and business conditions in general or on the ability of our suppliers to meet their commitments to us, or the timing of purchases by our current and potential customers; the rapidly changing and intensely competitive nature of the information technology industry and the data analytics business; fluctuations in our operating results; our ability to realize the anticipated benefits of our business transformation program or other restructuring and cost saving initiatives; risks inherent in operating in foreign countries, including foreign currency fluctuations; risks associated with the ongoing and uncertain impact of the COVID-19 pandemic on our business, financial condition and operating results, including the impact of the COVID-19 pandemic on our customers and suppliers; risks associated with data privacy, cyberattacks and maintaining secure and effective internal information technology and control systems; the timely and successful development, production or acquisition, availability and/or market acceptance of new and existing products, product features and services; tax rates; turnover of workforce and the ability to attract and retain skilled employees; protecting our intellectual property; the availability and successful exploitation of new alliance and acquisition opportunities; subscription arrangements may be cancelled or fail to be renewed; the impact on our business and financial reporting from changes in accounting rules; and other factors described from time to time in Teradatas filings with the U.S. Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2020 and subsequent quarterly reports on Forms 10-Q, as well as the Companys annual report to stockholders. What it does: New Relic makes cloud-based software to help websites and applications track how their servers are performing and make sure they're running without interruptions. Aug 23, 2021 4 min read IBM Takes Over Teradata Updated: Sep 16, 2022 The Teradata announcement of outsourcing maintenance agreements to IBM shocked the Teradata community. %PDF-1.6
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analysts and experts expect to see more consolidation, Adobe executives announced the company is acquiring the beloved design startup Figma, its stock has fallen back to pre-2020 levels, were rumors it was pursuing a sale amid the pressure, investment from the private-equity firm KKR. 858-485-2523 office
I am proud of our teams 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. "We think Splunk is too good a business/asset to trade where it is and believe the work undergone from a product and go-to-market perspective, along with a new CEO should position the company as a good investment going forward with good execution," RBC analysts wrote. This is an increase from the range of $1.60 to $1.70, which was previously communicated at Teradatas Investor Day in September 2021. ARR does not include managed services and third-party software. Additional information regarding Teradatas operating results is provided below as well as on Teradatas website at investor.teradata.com. Non-GAAP diluted EPS is expected to be in the range of $1.82 to $1.92. While many companies were making public announcements declaring their adoption of cloud-native data warehouse systems, they were keeping on-prem systems such as Teradata up and running for the time being. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. The following tables reconcile Teradatas projected EPS under GAAP to the Companys projected non-GAAP EPS for fiscal 2021, which exclude certain specified items. The impact of currency is determined by calculating the prior period results using the current-year monthly average currency rates. ET, after the data management specialist reported fourth-quarter 2021 earnings last night -- and beat. GAAP diluted EPS is expected to be in the range of $0.75 to $0.85. Free cash flow does not represent the residual cash flow available for discretionary expenditures since there may be other nondiscretionary expenditures that are not deducted from the measure. Several deals have already made waves. Teradata support employees are holding their breath to the point of turning blue. Why The Valuation Gap Could Narrow Let . Free cash flow does not have a uniform definition under GAAP and, therefore, Teradatas definition may differ from other companies definitions of this measure. MEDIA CONTACT
Teradata defines free cash flow as cash provided by / used in operating activities, less capital expenditures for property and equipment, and additions to capitalized software. The impact of currency is determined by calculating the prior period results using the current-year monthly average currency rates. For the twelve months ended December 31, the Companys non-GAAP effective tax rate was 22.4% for 2021 and 23.2% for 2020. You must click the link in the email to activate your subscription. 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, Full-Year 2021 Financial Highlights Compared to Full Year 2020. What it does: Splunk makes software for IT professionals that sift through and analyze enormous amounts of performance and system data in their networks. More than $1 billion in Cloud ARR, representing over 50% in total ARR in fiscal 2025, Approximately $550 million free cash flow in fiscal 2025, Low 20% non-GAAP operating margin in fiscal 2025, Implementing a returns-based capital return program of at least 50% of free cash flow annually through fiscal 2025, At least 70% growth in Cloud ARR year-over-year, Non-GAAP diluted net earnings per share in the range of $1.60 to $1.70, Free cash flow of approximately $400 million, Public cloud ARR is expected to increase by at least 100% year-over-year, Total ARR is expected to grow at a mid-to-high-single-digit percentage year-over-year. A conference call is scheduled for today at 2:00 p.m. PT to discuss the Companys fourth-quarter and full-year 2021 results, and provide a business and financial update. We delivered strong results, driving more than 90% growth in public cloud ARR and significantly growing new cloud customers. This is an increase from at least 70% growth year-over-year, which was previously communicated at Teradatas Investor Day in September 2021. The forward-looking statements included in this release are made as of September 9, 2021, and Teradata does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Annual recurring revenue (ARR) is defined as the annual value at a point in time of all recurring contracts, including subscription, cloud, software upgrade rights, and maintenance. Now He's Its CEO Alex Woodie When Steve McMillan worked in IBM Global Services, he oversaw the outsourcing of nearly every major piece of a large global financial services firm's IT stack with Big Blue products. Note to Investors The Company believes such non-GAAP financial measures (1) provide useful information to investors regarding the underlying business trends and performance of the Companys ongoing operations, (2) are useful for period-over-period comparisons of such operations and results, that may be more easily compared to peer companies and allow investors a view of the Companys operating results excluding stock-based compensation expense and special items, (3) provide useful information to management and investors regarding present and future business trends, and (4) provide consistency and comparability with past reports and projections of future results. But Oracle would also make sense, especially given that Larry Ellison, the founder and CTO of Oracle, was very vocal about supporting Zoom during its pandemic boom and privacy-and-security issues, the analysts wrote. ~P-Y2$}+Z]\r8e-k55:Vq^s>]=-\F4fc YX7q,FZtJ;ZhFjaZ(#l. CONDENSED CONSOLIDATED STATEMENTS OF INCOME, (in millions, except per share amounts - unaudited), CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS. Teradata filed a carry back of its 2020 NOL to claim a refund for taxes it paid in 2015, which created a one-time income tax benefit for GAAP reporting purposes for the difference between the 2015 federal statutory tax rate of 35% and the current federal statutory rate of 21%. As described below, the Company believes that free cash flow is a useful non-GAAP measure for investors. What it does: Smartsheet is a project-management tool that allows people to collaborate and automate tasks using a spreadsheet format. Some potential acquirers could be Google or Cisco, RBC analysts wrote. They said Rapid7 and Varonis Systems could potentially acquire Qualys. Salesforce could be an interesting buyer, especially because it already has Slack. Actually it helps in avoiding nasty cloud costs, says CEO, IBM settles 36m Direct Line insurance platform project lawsuit, after claiming Teradata tried to usurp its spot, IBM insiders say CEO Arvind Krishna downplayed impact of email troubles, asked for a week to sort things out, Age discrimination case against IBM leaks emails, docs via bad redaction.
In particular, free cash flow indicates the amount of cash generated after capital expenditures for, among other things, investment in the Companys existing businesses, strategic acquisitions, strengthening the Companys balance sheet, repurchase of the Companys stock and repayment of the Companys debt obligations, if any. Our enterprise analytics solve business challenges from start to scale. That would make it an interesting candidate for a private-equity firm who wants to invest in cloud-data analytics, they wrote. What it does: Dropbox makes cloud-based content-management and file-sharing software. Cash flow from operations is expected to be approximately $430 million. Late last week, IBM confirmed the country managers who will run Kyndryl when it launches later this year. Learn more at Teradata.com. CONDENSED CONSOLIDATED STATEMENTS OF INCOME, (in millions, except per share amounts - unaudited), CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS. Public cloud ARR increased to $202 million from $106 million, an increase of 91% as reported and 92% in constant currency . While the company is doing well financially, it's still in recovery mode from the incident. What it does: Nutanix makes IT-infrastructure hardware and is currently transitioning from licensing to a software-subscription model. "2021 was an impressive year for Teradata. Including the income tax effect assists investors in understanding the tax provision associated with those adjustments and the effective tax rate related to the underlying business and performance of the Companys ongoing operations. What it does: N-Able makes software for IT management, including monitoring, management, security, and ticketing tools.
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