The impact of currency is determined by calculating the prior period results using the current-year monthly average currency rates. Why it's an acquisition target: Teradata has been in the process of transitioning to the cloud, and has so far been successful, RBC analysts wrote. The Motley Fool has a disclosure policy. Teradata Highlights its New Strategy and Plan to Deliver Sustainable Teradata has made 12 acquisitions 0. This is an increase from at least 70% growth year-over-year, which was previously communicated at Teradatas Investor Day in September 2021. What it does: Zoom makes video-conferencing tools, including video chat, cloud-phone services, and video software for conference rooms. 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. Now there are several other companies that are likely takeover targets for either a tech giant or a private-equity firm, RBC analysts said in a recent note to clients. (Updated - December 20, 2021 5:24 AM EST) Needham & Company analyst Jack Andrews upgraded Teradata (NYSE: TDC) from Hold to Buy with a price target of $64.00. This is an increase from at least 70% growth year-over-year, which was previously communicated at Teradatas Investor Day in September 2021. Fourth-Quarter 2021 Financial Highlights Compared to Fourth-Quarter 2020. Total revenue is expected to be flat-to-low-single-digit percentage growth year-over-year. IBM Takes Over Teradata - NexusDataServer.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. Teradata Columnar, a transformative advance in database technology that fully integrates columnar and row-based tables, launches. 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. 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. 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. 3. 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. On November 1, 2021, Teradata's Board of Directors authorized an additional $1 billion to be utilized to repurchase Teradata common stock under its open market share repurchase program. Teradata Highlights its New Strategy and Plan to Deliver Sustainable May 6, 2021. 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%. This release contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934. Teradata Stock: Snowflake On A Budget? - Forbes Acquisition, integration, reorganization related, and other costs, Amortization of acquisition-related intangible assets. Read Full Review 5.0 Feb 2, 2023 Review Source: Product: Teradata Vantage Perspective by experience. *Average returns of all recommendations since inception. Teradata is the connected multi-cloud data platform for enterprise analytics company. Why it's an acquisition target: In 2020, SolarWinds faced a cyberattack that spread to its clients and wreaked havoc on the company. Why it's an acquisition target: The space Sumo Logic operates in is competitive, so despite the company being in a good position to accelerate growth, it could benefit from joining forces with a larger player, RBC analysts wrote. Free cash flow does not have a uniform definition under GAAP and, therefore, Teradatas definition may differ from other companies definitions of this measure. Download this Press Release. Teradata reports its results in accordance with GAAP. Christopher T. Lee GAAP diluted EPS is expected to be in the range of $0.35 to $0.39. What it does: Qualys is a cybersecurity company and makes software for cloud security, compliance, and vulnerability-management solutions. Reconciling items include stock-based compensation, capitalized software, amortization of acquisition-related intangible assets and acquisition, integration and reorganization-related items. What it does: SolarWinds is an IT management software firm that makes tools to help companies manage their networks, systems, and IT infrastructure. Speaking to The Register earlier this year, Teradata CEO Steve McMillan argued the company's heritage in on-prem systems offers users the ability to optimise workloads in the cloud for cost. Only Teradata gives you the flexibility to handle the massive and mixed data workloads of the future, today. Non-GAAP diluted EPS is expected to be in the range of $1.82 to $1.92. The workplace culture is toxic at Teradata, with the leadership team and HR unsupportive when issues arise. We delivered strong results, driving more than 90% growth in public cloud ARR and significantly growing new cloud customers. It's also facing competition from Microsoft that's likely making it harder to grow as quickly, RBC analysts wrote. Non-GAAP diluted EPS is expected to be in the range of $1.82 to $1.92. Reaffirms Fiscal 2021 Financial Outlook. Our enterprise analytics solve business challenges from start to scale. christopher.lee@teradata.com 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. 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%. 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. Company Mergers, Acquisitions, & JVs; . 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. Reconciling items include stock-based compensation, capitalized software, amortization of acquisition-related intangible assets and acquisition, integration and reorganization-related items. "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. This release contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934. 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. Total ARR is expected to grow at a mid-to-high-single-digit percentage year-over-year. https://www.businesswire.com/news/home/20220204005518/en/, INVESTOR CONTACT 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. Who could acquire it: Private equity. The software industry is expecting more M&A as software valuations continue to drop. The following tables reconcile Teradatas projected EPS under GAAP to the Companys projected non-GAAP EPS for fiscal 2021, which exclude certain specified items. Why it's an acquisition target: Couchbase went public in 2021 and has since been pivoting to offer a fully cloud-hosted database. 2021 was an impressive year for Teradata. 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. Director (Former Employee) - San Diego, CA - December 22, 2021. Teradata Highlights its New Strategy and Plan to Deliver Sustainable Growth and Value Creation September 9, 2021 Presents Long-Term Financial Growth Targets, Including More Than $1 Billion in Cloud Annual Recurring Revenue (ARR) and Approximately $550 Million in Free Cash Flow in Fiscal 2025 Reaffirms Fiscal 2021 Financial Outlook 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. 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. 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. Some potential acquirers could be Google or Cisco, RBC analysts wrote. CONDENSED CONSOLIDATED STATEMENTS OF INCOME, (in millions, except per share amounts - unaudited), CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS. ARR does not include managed services and third-party software. 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. ET, after the data management specialist reported fourth-quarter 2021 earnings last night -- and beat analyst predictions with a stick. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more at Teradata.com. "Going private could be the right move for it to better manage its turnaround path back to market growth," RBC analysts wrote. Several deals have already made waves. 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. Per Figure 2 TDC's TTM non-GAAP net income of $154 million is well above GAAP net income of $14 million.. 17095 Via Del Campo And just last month, Adobe executives announced the company is acquiring the beloved design startup Figma for $20 billion. 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. UPDATE: Needham & Company Upgrades Teradata (TDC) to Buy After submitting your information, you will receive an email. 2021 was an impressive year for Teradata. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Note to Investors , The Register Biting the hand that feeds IT, Copyright. Teradatas management uses free cash flow to assess the financial performance of the Company and believes it is useful for investors because it relates the operating cash flow of the Company to the capital that is spent to continue and improve business operations. Teradatas management uses free cash flow to assess the financial performance of the Company and believes it is useful for investors because it relates the operating cash flow of the Company to the capital that is spent to continue and improve business operations. Our enterprise analytics solve business challenges from start to scale. 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. "And could even see a traditional networking company like CSCO taking a look at FSLY.". The Company's most targeted sectors include information technology (40%) and software (34%). Represents the income tax effect of the pre-tax adjustments to reconcile GAAP to Non-GAAP income based on the applicable jurisdictional statutory tax rate of the underlying item. 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. In the note, RBC analysts added that private-equity deals are more likely to be all-cash, given that debt is becoming harder to raise. Acquisitions by Teradata | Tracxn A relatively small bunch were retained after some customers complained, said one insider, but even they are now expected to leave the organisation at the end of this month. BP, ADNOC Offer to Buy Half of Israel's NewMed Energy. "2021 was an impressive year for Teradata. "Additionally, we do believe a large back-office vendor could get interested, though we see this as less likely given SAP, Workday, and Oracle all have competing solutions.". Why The Valuation Gap Could Narrow Let . 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. hX[o+|LP}"/MbNi 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. We delivered strong results, driving more than 90% growth in public cloud ARR and significantly growing new cloud customers. Teradata Reports Fourth-Quarter and Full-Year 2021 Financial Results 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 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. CONDENSED CONSOLIDATED STATEMENTS OF INCOME, (in millions, except per share amounts - unaudited), CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS. Acquisition, integration, reorganization related, and other costs, Amortization of acquisition-related intangible assets. All rights reserved 19982023, Funny way to describe a company that makes toilet cleaner, ChatGPT is just the beginning: CISOs need to prepare for the next wave of AI-powered attacks, Reworked use of object storage changes footing with competitors but will need to convince devs, Calls time on interactions and services with customers, including state-owned bank Sberbank, Perpetual software and hardware licenses dive in Q4, consultancy withers on vine, State-owned Sberbank's software contracts under scrutiny, Teradata also sees wings clipped in ongoing battle with German ERP giant, On-prem systems hold advantages in terms of known costs, say insiders, Amazon Web Services (AWS) Business Transformation, Can Teradata avoid being grounded by on-prem legacy? "Even when we outsource elements of the hardware support to reliable third parties, Teradata maintains the overall relationship with the customer and I can confirm that we continue to have hardware support expertise within the company for our on-premises customers.". Non-GAAP diluted EPS is expected to be in the range of $0.63 to $0.67. Given that, it would make sense for a larger company to look into acquiring Zoom. 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. Who could acquire it: Another cloud or software company. Making the world smarter, happier, and richer. Teradata is dedicated to helping enterprise businesses around the globe use data analytics to tackle the problems they face every day. This is an increase from the range of $1.60 to $1.70, which was previously communicated at Teradatas Investor Day in September 2021. The business will be based around six units: cloud, applications, data and AI; security and resiliency; core enterprise and zCloud; network and edge; and digital workplace. Teradata has acquired in 4 different US states, and 4 countries. 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. GAAP profits for the quarter were only $0.29 per share -- not $0.57. "We would note M&A activity has remained elevated in security.". Teradata has invested in multiple sectors such as MarketingTech, Big Data Infrastructure, AdTech and more. 858-485-3029 office The Companys full-year 2020 GAAP marginal effective tax rate included $3 million of tax expense related to tax contingencies pursuant to FIN 48. 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. Jennifer Donahue Forward-looking statements in this release include our 2022 first quarter and full year financial guidance and share repurchase plans. For the twelve months ended December 31, the Companys non-GAAP effective tax rate was 22.4% for 2021 and 23.2% for 2020. 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. The impact of currency is determined by calculating the prior period results using the current-year monthly average currency rates. Fellow workers are not helpful, and the environment is not a collaborative, innovative, team oriented environment. Recurring revenue is expected to grow at a low-to-mid-single-digit percentage year-over-year. Yankees Option Franchy Cordero - MLB Trade Rumors In the UK alone, companies including Sainsbury's, Lloyds Bank, Iceland, Barclays, Unilever, Vodafone, and other big brands still rely on Teradata's on-prem systems for business decision-making as cloud-based systems are yet to meet their performance requirements, sources told The Register. 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%. 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. Teradata Corporation - Teradata Highlights its New Strategy and Plan to They said it could be acquired by a private-equity firm or another cloud vendor. A Look At Teradata's History & Achievements 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. Teradata Reports First Quarter 2021 Financial Results. 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. Teradata is the connected multi-cloud data platform for enterprise analytics company. Telephone: 858-485-2088, Teradata Reports Fourth-Quarter and Full-Year 2021 Financial Results, https://www.businesswire.com/news/home/20220204005518/en/, 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. What it does: Splunk makes software for IT professionals that sift through and analyze enormous amounts of performance and system data in their networks. 10131 0 obj <>stream year 2021 financial results. 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. 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. In the private-equity space, various firms have been acquiring both public- and private-software companies. Cash provided by operating activities (GAAP). Recurring revenue is expected to grow at a low-to-mid-single-digit percentage year-over-year. "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. Teradata Mergers and Acquisitions Summary | Mergr That likely makes the company a target for private-equity firms. Additional information regarding Teradatas operating results is provided below as well as on Teradatas website at investor.teradata.com. 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..

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