Teradata (TDC) Q1 2022 earnings summary

Executive summary

• Q1’22 revenue was $496M, up 1% YoY reported and 4% in constant currency (CC); public cloud ARR grew 69% reported and 70% CC to $209M.

• Recurring revenue rose 4% reported and 6% CC to $386M, reaching 78% of total revenue; GAAP and non-GAAP diluted EPS were $0.33 and $0.65.

Financial highlights

• Total ARR was $1.427B, up 2% YoY reported and 3% CC; total revenue was $496M, up 1% reported and 4% CC.

• Cash from operations was $151M vs. $110M in Q1’21; free cash flow (FCF) was $150M vs. $105M.

• GAAP diluted EPS was $0.33 vs. $0.47 YoY; non-GAAP diluted EPS was $0.65 vs. $0.69.

Outlook and guidance

• FY22 public cloud ARR growth ~80% YoY reported and CC; total ARR expected to decline low-single digits reported and grow low-single digits CC.

• FY22 recurring revenue expected to decline low- to mid-single digits reported and be flat to grow low-single digits CC; total revenue expected to decline mid- to high-single digits reported and low-single digits CC.

• FY22 non-GAAP diluted EPS guidance is $1.55–$1.65 and FCF is ~ $400M; Q2 non-GAAP diluted EPS guidance is $0.26–$0.30, with GAAP diluted EPS of ($0.01)–$0.03.

• FY22 outlook incorporates Russia closure impacts of $55M to ARR, $60M to revenue and $0.29 to non-GAAP EPS, plus an expected 3.5%–4.0% FX headwind.

• FY25 targets include >$1B public cloud ARR and $550M FCF.