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. Teradata acquires Aprimo, a global leader in cloud-based integrated marketing software. They said it could be acquired by a private-equity firm or another cloud vendor. A person who asked to remain anonymous pointed out that while systems architects were trying to convince businesses to make the shift to the cloud, users of Teradata systems business analysts who use data to inform important company decisions were less keen. Teradata (NYSE: TDC) highlighted the Company's successful cloud-first transformation and ongoing strategic initiatives to deliver sustainable growth and value creation at its Investor Day held virtually today. As a result of these adjustments, the Companys non-GAAP effective tax rate for the three months ended December 31, 2021 was 21% and December 31, 2020 was 26.3%. The firm also acquired Anaplan, a business-planning-software company, for $10.7 billion in June. 858-485-3029 office Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. 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. What it does: Duck Creek Technologies makes cloud software for property-and-casualty-insurance companies. 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. Non-GAAP diluted EPS is expected to be in the range of $0.63 to $0.67. Why it's an acquisition target: Nutanix operates in the hybrid-cloud space and is making its own transition from a licensing model to a software-subscription model. 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. What it does: Fastly makes content-delivery network, or CDN, software, which helps websites and applications load faster. What it does: Nutanix makes IT-infrastructure hardware and is currently transitioning from licensing to a software-subscription model. Teradata Highlights its New Strategy and Plan to Deliver Sustainable Growth and Value Creation Presents Long-Term Financial Growth Targets, Including More Than $1 Billion in Cloud Annual. Zendesk, which offers customer-service software, was also taken private for $10.2 billion by an investor group, which Hellman & Friedman and Permira led. The impact of currency is determined by calculating the prior period results using the current-year monthly average currency rates. SAN DIEGO--(BUSINESS WIRE)-- endstream endobj 10088 0 obj <>/Metadata 138 0 R/Outlines 150 0 R/Pages 10083 0 R/StructTreeRoot 167 0 R/Type/Catalog>> endobj 10089 0 obj <>/ExtGState<>/Font<>/XObject<>>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> endobj 10090 0 obj <>stream Teradata is outsourcing field-based support on both sides of the pond to IBM, much to the alarm of some customers who fear a loss of knowledge in keeping its trusted on-prem systems up and running. Additional information regarding Teradatas operating results is provided below as well as on Teradatas website at investor.teradata.com. *Average returns of all recommendations since inception. Why it's an acquisition target: Duck Creek Technologies has seen slowing growth in recent quarters, likely due to increased competition from smaller companies, RBC analysts said. Why it's an acquisition target: Couchbase went public in 2021 and has since been pivoting to offer a fully cloud-hosted database. While the company is doing well financially, it's still in recovery mode from the incident. For the twelve months ended December 31, the Companys non-GAAP effective tax rate was 22.4% for 2021 and 23.2% for 2020. In fact, the company earned more than twice the predicted profit -- $0.57 per share -- and needed sales of only $475 million to do it. The Motley Fool recommends Teradata. Each of our non-GAAP measures do not have a uniform definition under GAAP and therefore, Teradatas definition may differ from other companies definitions of these measures. In addition, the Company recorded a $2 million discrete tax benefit in the third quarter of 2021 for GAAP purposes resulting from a provision to return true up to the Companys net operating loss upon completion of its 2020 US federal income tax return and its NOL carryback claim afforded by the CARES Act of 2020. The impact of currency is determined by calculating the prior period results using the current-year monthly average currency rates. But even there, the GAAP number was well ahead of Teradata's own forecast for a small quarterly loss (the company had promised a loss of $0.01 to $0.05 per share). Who could acquire it: Another cloud or software company, or private equity. Observers fear a haemorrhage of the knowledge required to keep the unique Teradata systems up and running. "With a strong margin profile but still in recovery from the prior cyber-attack, we think SWI could be an interesting PE candidate for a firm that could leverage a growing SaaS portfolio, unique low-touch sales model and high margins," RBC analysts wrote. We delivered strong results, driving more than 90% growth in public cloud ARR and significantly growing new cloud customers. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. hX[o+|LP}"/MbNi 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 organization is led by an ancient legacy PMO that needs . All of which positions us to achieve over $1 billion in Cloud ARR(1) and approximately $550 million in free cash flow(2) in fiscal 2025 and deliver significant long-term value to our shareholders.. The Companys GAAP effective tax rate for the three and twelve months ended December 31, 2020, includes a net $9 million income tax benefit resulting from the CARES Act of 2020, which allows US corporations a one-time opportunity to claim income tax refunds by allowing a 5-year net operating loss (NOL) carryback for taxable losses incurred in the tax year 2020. What it does: Zoom makes video-conferencing tools, including video chat, cloud-phone services, and video software for conference rooms. Teradata Columnar, a transformative advance in database technology that fully integrates columnar and row-based tables, launches. Free cash flow does not have a uniform definition under GAAP and, therefore, Teradatas definition may differ from other companies definitions of this measure. It's also facing competition from Microsoft that's likely making it harder to grow as quickly, RBC analysts wrote. The following tables reconcile Teradatas actual and projected results and EPS under GAAP to the Companys actual and projected non-GAAP results and EPS for the periods presented, which exclude certain specified items. Why it's an acquisition target: Splunk got a new CEO earlier this year as it undergoes a transition from more traditional on-premise software sales to cloud subscriptions. However, Box ended up getting an investment from the private-equity firm KKR that halted rumors of a sale and subsequently saw higher growth rates. 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. Learn more at Teradata.com. Total ARR is expected to grow at a mid-to-high-single-digit percentage year-over-year. Note to Investors To receive notifications via email, enter your email address and select at least one subscription below. "We still believe ZM has best-in-class video conferencing technology, the potential to become a larger platform, and an attractive financial profile," RBC analysts wrote. To more accurately reflect the impact of the expense on a quarterly basis for non-GAAP purposes, the $3 million of tax expense was recognized ratably each quarter in 2020 instead of being included in the marginal effective rate. As described below, the Company believes that free cash flow is a useful non-GAAP measure for investors. However, Petersen really disappointed this season, getting sent down to the minors after just 10 games. They pointed to some deals that had already been done in the space like Citrix and Wrike, Adobe and Workfront, and Atlassian and Trello. And just last month, Adobe executives announced the company is acquiring the beloved design startup Figma for $20 billion. The Teradata logo is a trademark, and Teradata is a registered trademark of Teradata Corporation and/or its affiliates in the U.S. and worldwide. BP, ADNOC Offer to Buy Half of Israel's NewMed Energy. hbbd``b` @d@nig7 A,) SG $cD7,#&0 @L X Public cloud ARR is expected to increase by approximately 80% year-over-year. As described below, the Company believes that free cash flow is a useful non-GAAP measure for investors. Thoma Bravo acquired Anaplan, which makes similar tools for accounting and financial management, in June in an all-cash transaction valued at about $10.4 billion. 10107 0 obj <>/Filter/FlateDecode/ID[]/Index[10087 45]/Info 10086 0 R/Length 96/Prev 250981/Root 10088 0 R/Size 10132/Type/XRef/W[1 2 1]>>stream Companies like Salesforce and Microsoft would benefit from buying Smartsheet and adding those capabilities to their platforms, the analysts wrote. Our enterprise analytics solve business challenges from start to scale. The Motley Fool has a disclosure policy. Teradata is dedicated to helping enterprise businesses around the globe use data analytics to tackle the problems they face every day. Adjustments to reconcile net income to net cash provided by operating activities: Effect of exchange rate changes on cash and cash equivalents, Public cloud ARR of $202 million, an increase of 91% as reported from the prior year period, Fourth quarter recurring revenue of $364 million, an increase of 5% as reported from the prior year period, Recurring revenue was 77% of total revenue in the fourth quarter, up from 70% the prior year period, Fourth quarter GAAP earnings per diluted share of $0.29, above the previously provided outlook range of $(0.05) to $(0.01), Fourth quarter Non-GAAP earnings per diluted share of $0.57, above the previously provided outlook range of $0.25 to $0.29, Fourth quarter cash from operations of $95 million and free cash flow of $85 million, Intends to enter into a $250 million accelerated share repurchase program in the first quarter, Public cloud ARR increased to $202 million from $106 million, an increase of 91% as reported and 92% in constant currency, ARR increased to $1.492 billion from $1.425 billion, an increase of 5% as reported and 7% in constant currency, Recurring revenue was $364 million versus $346 million, an increase of 5% as reported and 6% in constant currency, Total revenue was $475 million versus $491 million, a decrease of 3% as reported and 2% in constant currency, Non-GAAP gross margin was 63.2% versus 59.3%, GAAP operating income was $50 million versus $13 million, Non-GAAP operating income was $90 million versus $67 million, GAAP diluted EPS was $0.29 versus $0.04 per share, Non-GAAP diluted EPS was $0.57 versus $0.38, Cash flow from operations was $95 million compared to $56 million, Free cash flow was $85 million compared to $45 million, Recurring revenue was $1.464 billion from $1.309 billion, an increase of 12% as reported and 11% in constant currency, Total revenue was $1.917 billion from $1.836 billion, an increase of 4% as reported and 3% in constant currency, Non-GAAP gross margin was 63.4% versus 58.4%, GAAP operating income was $231 million versus $16 million, Non-GAAP operating income was $393 million versus $230 million, Non-GAAP diluted EPS was $2.43 versus $1.31, Cash flow from operations was $463 million versus $267 million, Free cash flow was $432 million versus $216 million. Your privacy is important. 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. -- Teradata (NYSE: TDC ) today announced its fourth-quarter and full- year 2021 financial results. Acquisition, integration, reorganization related, and other costs, Amortization of acquisition-related intangible assets. "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. "2021 was an impressive year for Teradata. 2021 was an impressive year for Teradata. What it does: Splunk makes software for IT professionals that sift through and analyze enormous amounts of performance and system data in their networks. 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%. If the company is not able to execute its new strategy, it might make sense for the board to explore a sale to a larger firm, the analysts wrote. "We still believe edge computing is a real opportunity and that FSLY has good technology, which could be attractive to an acquirer," RBC analysts wrote. Our enterprise analytics solve business challenges from start to scale. 2021 was an impressive year for Teradata. Total ARR is expected to grow at a mid-to-high-single-digit percentage year-over-year. For the first quarter of fiscal 2021, Teradata currently expects to exceed its guidance provided on February 4, 2021 for GAAP earnings per diluted share, Non-GAAP earnings per diluted share, and public . 2023 Phase one of GMH, in Gulf of Guinea's Punta Europa, started delivering gas in February 2021. 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 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. Recurring revenue is expected to grow at a high-single-digit to low-double-digit percentage year-over-year; Total revenue is expected to grow at a low-single-digit to mid-single-digit percentage year-over-year; GAAP earnings per diluted share is expected to be in the range of $0.78 to $0.82; Non-GAAP earnings per diluted share, excluding stock-based compensation expense, reorganization-related expenses, and other special items, is expected to be in the range of $1.92 to $1.96, Cash flow from operations is expected to be at least $440 million; and, Free cash flow is expected to be at least $400 million. Public cloud ARR is defined as the annual value at a point in time of all contracts related to public cloud implementations of Teradata Vantage and does not include ARR related to private or managed cloud implementations. This is an increase from at least 70% growth year-over-year, which was previously communicated at Teradatas Investor Day in September 2021. Adjustments to reconcile net income to net cash provided by operating activities: Effect of exchange rate changes on cash and cash equivalents, Public cloud ARR of $202 million, an increase of 91% as reported from the prior year period, Fourth quarter recurring revenue of $364 million, an increase of 5% as reported from the prior year period, Recurring revenue was 77% of total revenue in the fourth quarter, up from 70% the prior year period, Fourth quarter GAAP earnings per diluted share of $0.29, above the previously provided outlook range of $(0.05) to $(0.01), Fourth quarter Non-GAAP earnings per diluted share of $0.57, above the previously provided outlook range of $0.25 to $0.29, Fourth quarter cash from operations of $95 million and free cash flow of $85 million, Intends to enter into a $250 million accelerated share repurchase program in the first quarter, Public cloud ARR increased to $202 million from $106 million, an increase of 91% as reported and 92% in constant currency, ARR increased to $1.492 billion from $1.425 billion, an increase of 5% as reported and 7% in constant currency, Recurring revenue was $364 million versus $346 million, an increase of 5% as reported and 6% in constant currency, Total revenue was $475 million versus $491 million, a decrease of 3% as reported and 2% in constant currency, Non-GAAP gross margin was 63.2% versus 59.3%, GAAP operating income was $50 million versus $13 million, Non-GAAP operating income was $90 million versus $67 million, GAAP diluted EPS was $0.29 versus $0.04 per share, Non-GAAP diluted EPS was $0.57 versus $0.38, Cash flow from operations was $95 million compared to $56 million, Free cash flow was $85 million compared to $45 million, Recurring revenue was $1.464 billion from $1.309 billion, an increase of 12% as reported and 11% in constant currency, Total revenue was $1.917 billion from $1.836 billion, an increase of 4% as reported and 3% in constant currency, Non-GAAP gross margin was 63.4% versus 58.4%, GAAP operating income was $231 million versus $16 million, Non-GAAP operating income was $393 million versus $230 million, Non-GAAP diluted EPS was $2.43 versus $1.31, Cash flow from operations was $463 million versus $267 million, Free cash flow was $432 million versus $216 million. 2011. Why Teradata Stock Fell Sharply on Friday, Teradata Corporation (TDC) Q3 2021 Earnings Call Transcript, Teradata Corporation (TDC) Q2 2021 Earnings Call Transcript, U.S. Money Supply Is Doing Something It Hasn't Done in 90 Years, and It May Signal a Big Move for Stocks, Why I Refuse to Chase the Maximum Social Security Benefit, 1 Trillion-Dollar Growth Stock Down 28% You'll Regret Not Buying on the Dip, A Bull Market Is Coming: 3 Stocks to Buy Without Hesitation, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. 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. INVESTOR CONTACT "In other words, we believe larger scale debt-financed private-equity takeouts could be unlikely in the near-term," RBC analysts wrote. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially, including 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 execute and 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 and on our customers and suppliers; risks associated with data privacy, cyberattacks and maintaining secure and effective products for our customers, as well as, 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 our workforce and the ability to attract and retain skilled employees; protecting our intellectual property; availability and successful execution of new alliance and acquisition opportunities; subscription arrangements that 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 most recent annual report on Form 10-K, and subsequent quarterly reports on Forms 10-Q or current reports on Forms 8-K, as well as Teradatas annual report to stockholders. Why it's an acquisition target: Qualys has a portfolio of software tools for cloud security, which makes it an interesting target for any company looking to get into that space, RBC analysts said. Why it's an acquisition target: Coupa would be an interesting acquisition for a private-equity firm because "back-office software vendors" are in high demand, RBC analysts wrote. Download this Press Release. Non-GAAP diluted EPS is expected to be in the range of $0.63 to $0.67. 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. The Kings' desire for an experienced starting goaltender was evident when they acquired Korpisalo, as they had hoped for similar success from Cal Petersen, who they signed to a three-year, $15-million contract extension in September 2021. Jana Partners is also the activist firm that pushed Zendesk to be acquired by a group of private equity firms led by Hellman & Friedman and Permira. Also, when calculated according to generally accepted accounting principles (GAAP), Teradata's profits weren't quite as strong as the headline pro forma profit number. We delivered strong results, driving more than 90% growth in public cloud ARR and significantly growing new cloud customers. Free cash flow does not have a uniform definition under GAAP and, therefore, Teradatas definition may differ from other companies definitions of this measure. RBC analysts said joining forces with a larger cloud company would help it grow faster than it's able to alone and could make it a real competitor to MongoDB. Fourth-Quarter 2021 Financial Highlights Compared to Fourth-Quarter 2020. A total of 5 acquisitions came from private equity firms.It has also divested 1 asset.. Teradata's largest acquisition to date was in 2011, when it acquired Teradata - Marketing Applications for $525M. The following tables reconcile Teradatas actual and projected results and EPS under GAAP to the Companys actual and projected non-GAAP results and EPS for the periods presented, which exclude certain specified items. Why it's an acquisition target: Companies like Yelp, Ticketmaster, Stripe, and Github use Fastly's technology. MEDIA CONTACT 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. The company's growth has stagnated in recent years due to competition from players like Dynatrace and Datadog, and its customer count is down. That's why RBC analysts think it would be a target for a private-equity firm to acquire. This was offset by $1 million of tax expense related to withholding taxes associated with the same intra-entity transfer recorded in the second quarter of 2020. What it does: Smartsheet is a project-management tool that allows people to collaborate and automate tasks using a spreadsheet format. The software industry is expecting more M&A as software valuations continue to drop. 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.
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