Teradata Reports Third Quarter 2022 Financial Results

  • Public cloud ARR of $279 million, an increase of 89% as reported and 99% in constant currency from the prior year period(1)
  • Third quarter recurring revenue of $331 million, a decrease of 6% as reported and 2% in constant currency from the prior year period(1)
  • Recurring revenue was 79% of total revenue in the third quarter, up from 77% in the prior year period
  • Third quarter GAAP earnings per diluted share of $0.08
  • Third quarter Non-GAAP earnings per diluted share of $0.31(2)
  • Third quarter cash from operations of $34 million and free cash flow of $31 million (3)

SAN DIEGO--()--Teradata (NYSE: TDC) today announced its third quarter 2022 financial results.

Teradata delivered our second largest cloud growth quarter,” said Steve McMillan, President and CEO, Teradata. “We believe Teradata can deliver the most powerful cloud analytics data platform, data warehouse, data lake, or lake house in the world, bringing mission-critical workloads to customers across their full spectrum of needs. Our business model is profitable and resilient, providing crucial insights that our customers need in any macro-economic environment.

We also took a significant step forward on our cloud-first transformation with the delivery of Teradata VantageCloud Lake, our cloud-native product, and ClearScape Analytics™, which has the most in-database analytic functions in the market. These new, game-changing offerings and expanded capabilities will help open even more market opportunities. High customer interest and market recognition of our differentiated offerings give us confidence that our strategy to be a profitable multi-cloud analytics and data platform leader is taking hold.”

Third Quarter 2022 Financial Highlights Compared to Third Quarter 2021

  • Public cloud ARR increased to $279 million from $148 million, an increase of 89% as reported and 99% in constant currency(1)
  • Total ARR decreased to $1.374 billion from $1.437 billion, a decrease of 4% as reported and flat in constant currency(1)
  • Total revenue was $417 million versus $460 million, a decrease of 9% as reported and 4% in constant currency(1)
  • Recurring revenue was $331 million versus $352 million, a decrease of 6% as reported and 2% in constant currency(1)
  • Recurring revenue was 79% of total revenue in the third quarter, up from 77% in the prior year period
  • GAAP gross margin improved to 62.1% versus 59.8%
  • Non-GAAP gross margin improved to 62.6% versus 61.3%(2)
  • GAAP operating income was $25 million versus $30 million
  • Non-GAAP operating income was $54 million versus $71 million(2)
  • GAAP EPS was $0.08 versus $0.15 per diluted share
  • Non-GAAP diluted EPS was $0.31 versus $0.43(2)
  • Cash flow from operations was $34 million versus $33 million
  • Free cash flow was $31 million versus $23 million(3)

Outlook

For the fourth quarter of 2022:

  • GAAP diluted EPS is expected to be in the range of $0.03 to $0.07.
  • Non-GAAP diluted EPS is expected to be in the range of $0.28 to $0.32.(2)

Teradata re-affirms the following outlook for the full year 2022:

  • Public cloud ARR is expected to increase by approximately 80% year-over-year, as reported and in constant currency.(1)
  • Total ARR to decline in the low-to-mid-single-digit percentage range year-over-year. On a constant currency basis, Total ARR to grow in the low-single-digit percentage to decline in the low-single-digit percentage range.(1)
  • Total recurring revenue to decline in the low-to-mid-single-digit percentage range year-over-year as reported. On a constant currency basis, total recurring revenue is projected to be flat to grow in the low-single-digit percentage range.(1)
  • Total revenue to decline in the mid-to-high-single-digit percentage range year-over-year as reported. On a constant currency basis, total revenue is anticipated to decline in the low-single-digit percentage range.(1)
  • Free cash flow is expected to be approximately $400 million.(3)

Teradata updates the following outlook for full year 2022:

  • GAAP diluted EPS is narrowed to be in the range of $0.41 to $0.45.
  • Non-GAAP diluted EPS is narrowed to be in the range of $1.58 to $1.62.(2)
  • Cash flow from operations is expected to be approximately $420 million.

Earnings Conference Call

A conference call is scheduled for today at 2:00 p.m. PT to discuss the Company’s third quarter 2022 results and provide a business and financial update. Access to the conference call, as well as a replay of the conference call, is available on Teradata’s website at investor.teradata.com.

Supplemental Financial Information

Additional information regarding Teradata’s operating results is provided below as well as on Teradata’s website at investor.teradata.com.

1.

The impact of currency is determined by calculating the prior-period results using the current-year monthly average currency rates. See the foreign currency fluctuation schedule, which is used to determine revenue on a constant currency (“CC”) basis, on the Investor Relations page of the Company’s website at investor.teradata.com

Revenue

 

(in millions)

 

 

For the Three Months ended September 30

 

2022

 

 

2021

 

% Change
as Reported

 

% Change in CC

Recurring revenue

$

331

 

$

352

 

(6

%)

 

(2

%)

Perpetual software licenses, hardware and other

 

14

 

 

18

 

(22

%)

 

(22

%)

Consulting services

 

72

 

 

90

 

(20

%)

 

(12

%)

Total revenue

$

417

 

$

460

 

(9

%)

 

(4

%)

 

 

 

 

 

 

 

 

Americas

$

242

 

$

249

 

(3

%)

 

(1

%)

EMEA

 

105

 

 

133

 

(21

%)

 

(13

%)

APJ

 

70

 

 

78

 

(10

%)

 

0

%

Total revenue

$

417

 

$

460

 

(9

%)

 

(4

%)

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

(in millions)

 

 

 

 

 

 

 

 

For the Nine Months ended September 30

 

 

2022

 

 

2021

 

% Change
as Reported

 

% Change in CC

Recurring revenue

$

1,062

 

$

1,100

 

(3

%)

 

0

%

Perpetual software licenses, hardware and other

 

48

 

 

58

 

(17

%)

 

(14

%)

Consulting services

 

233

 

 

284

 

(18

%)

 

(12

%)

Total revenue

$

1,343

 

$

1,442

 

(7

%)

 

(3

%)

 

 

 

 

 

 

 

 

Americas

$

781

 

$

786

 

(1

%)

 

0

%

EMEA

 

337

 

 

408

 

(17

%)

 

(10

%)

APJ

 

225

 

 

248

 

(9

%)

 

(1

%)

Total revenue

$

1,343

 

$

1,442

 

(7

%)

 

(3

%)

 

 

 

 

 

 

 

 

 

As of September 30

 

 

2022

 

 

2021

 

% Change
as Reported

 

% Change in CC

Annual recurring revenue*

$

1,374

 

$

1,437

 

(4

%)

 

0

%

Public cloud ARR**

$

279

 

$

148

 

89

%

 

99

%

*

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. ARR does not include managed services and third-party software. 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.

**

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. 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.
2.

Teradata reports its results in accordance with GAAP. However, as described below, the Company believes that certain non-GAAP measures such as free cash flow, 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, and which may be reported on a constant currency basis, are useful for investors. 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. Each of our non-GAAP measures do not have a uniform definition under GAAP and therefore, Teradata’s definition may differ from other companies’ definitions of these measures.

 

The following tables reconcile Teradata’s actual and projected results and EPS under GAAP to the Company’s actual and projected non-GAAP results and EPS for the periods presented, which exclude certain specified items. 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 such non-GAAP financial measures (1) provide useful information to investors regarding the underlying business trends and performance of the Company’s 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 Company’s 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.

 

For the
Three Months

 

 

 

For the
Nine Months

 

(in millions, except per share data)

ended September 30

 

 

 

ended September 30

 

Gross Profit:

2022

 

2021

 

% Chg.

 

2022

 

2021

 

% Chg.

GAAP Gross Profit

$259

 

$275

 

(6

%)

 

$818

 

$892

 

 

(8

%)

% of Revenue

62.1

%

59.8

%

 

60.9

%

61.9

%

 

 

 

 

 

 

 

 

Excluding:

 

 

 

 

 

 

Stock-based compensation expense

3

 

4

 

 

12

 

12

 

 

 

Reorganization and transformation cost and cost associated with ceasing operations in Russia

(1

)

3

 

 

6

 

11

 

 

 

Non-GAAP Gross Profit

$261

 

$282

 

(7

%)

 

$836

 

$915

 

 

(9

%)

% of Revenue

62.6

%

61.3

%

 

62.2

%

63.5

%

 

 

 

Operating Income

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Operating Income

$25

 

$30

 

(17

%)

 

$107

 

$181

 

 

(41

%)

% of Revenue

6.0

%

6.5

%

 

8.0

%

12.6

%

 

 

 

 

 

 

 

 

Excluding:

 

 

 

 

 

 

Stock-based compensation expense

27

 

27

 

 

90

 

79

 

 

 

Reorganization and transformation cost and cost associated with ceasing operations in Russia

2

 

14

 

 

27

 

43

 

 

 

Non-GAAP Operating Income

$54

 

$71

 

(24

%)

 

$224

 

$303

 

 

(26

%)

% of Revenue

12.9

%

15.4

%

 

16.7

%

21.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Net Income

$8

 

$17

 

(53

%)

 

$40

 

$114

 

 

(65

%)

% of Revenue

1.9

%

3.7

%

 

3.0

%

7.9

%

 

 

 

 

 

 

 

 

Excluding:

 

 

 

 

 

 

Stock-based compensation expense

27

 

27

 

 

90

 

79

 

 

 

Reorganization and transformation cost and cost associated with ceasing operations in Russia

 

2

 

 

14

 

 

 

 

27

 

 

43

 

 

 

Income tax adjustments(i)

(5

)

(9

)

 

(19

)

(26

)

 

 

Non-GAAP Net Income

 

$32

 

 

$49

 

 

(35

%)

 

$138

 

 

$210

 

 

(34

%)

% of Revenue

7.7

%

10.7

%

 

10.3

%

14.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months
ended September 30

 

For the Nine Months
ended September 30

 

2022 Outlook

Earnings Per Share:

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

2022 Q4
Guidance

 

2022 FY
Guidance

GAAP Earnings Per Share

$

0.08

 

 

$

0.15

 

 

$

0.38

 

 

$

1.01

 

 

$0.03 - $0.07

 

$0.41 - $0.45

 

Excluding:

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

0.26

 

 

0.24

 

 

 

0.85

 

 

 

0.70

 

 

0.29

 

 

1.13

 

Reorganization and transformation cost and cost associated with ceasing operations in Russia

 

0.02

 

 

0.12

 

 

 

0.25

 

 

 

0.38

 

 

-

 

 

0.26

 

Income tax adjustments(i)

 

(0.05

)

 

 

(0.08

)

 

 

(0.18

)

 

 

(0.23

)

 

(0.04

)

 

(0.22

)

Non-GAAP Diluted Earnings Per Share

$

0.31

 

$

0.43

 

 

$

1.30

 

 

$

1.86

 

 

$0.28 - $0.32

 

$1.58 - $1.62

 

 

 

i.

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. 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 Company’s ongoing operations. Of this amount, the adjustment for the tax impact of ceasing our operations in Russia created a favorable EPS impact of zero and 0.05 cents, respectively, for the three and nine months ended September 30, 2022. As a result of these adjustments, the Company’s GAAP effective tax rate for the three months ended September 30, 2022 was 20.0% and September 30, 2021 was 10.5% as compared to the non-GAAP effective tax rates of 17.9% and 18.3%, respectively. For the nine months ended September 30, the GAAP effective tax rate was 38.5% for 2022 and 24.0% for 2021 as compared to the non-GAAP effective tax rates of 24.2% and 22.8%, respectively.

3.

As described below, the Company believes that free cash flow is a useful non-GAAP measure for investors. Free cash flow does not have a uniform definition under generally accepted accounting principles in the United States (GAAP) and therefore, Teradata's definition may differ from other companies' definitions of this measure. Teradata’s 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. In particular, free cash flow indicates the amount of cash generated after capital expenditures which can be used for among other things, investments in the Company's existing businesses, strategic acquisitions, strengthening the Company’s balance sheet, repurchase of Company stock and repay the Company’s debt obligations. Free cash flow does not represent the residual cash flow available for discretionary expenditures since there may be other non-discretionary expenditures that are not deducted from the measure. This non-GAAP measure should not be considered as a substitute for, or superior to, cash flows from operating activities under GAAP.

 
(in millions)

For the
Three Months

 

For the
Nine Months

 

 

 

ended September 30

 

ended September 30

 

Outlook

 

2022

 

 

 

2021

 

 

 

 

 

2022

 

 

 

 

 

 

2021

 

 

 

2022

 

 

 

 

 

 

 

Cash provided by operating activities (GAAP)

$

34

 

$

33

 

 

$

290

 

 

$

368

 

 

~$420

Less capital expenditures for:

 

 

 

 

 

 

 

 

Expenditures for property and equipment

 

(3

)

 

(10

)

 

 

(6

)

 

 

(19

)

 

(~18)

Additions to capitalized software

 

-

 

 

-

 

 

 

(1

)

 

 

(2

)

 

(~2)

Total capital expenditures

 

(3

)

 

(10

)

 

 

(7

)

 

 

(21

)

 

(~20)

Free Cash Flow (non-GAAP measure)

$

31

 

$

23

 

 

$

283

 

 

$

347

 

 

~$400

Note to Investors

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. These forward-looking statements are based upon current expectations and assumptions and often can be identified by words such as “expect,” “strive,” “looking ahead,” “outlook,” “guidance,” “forecast,” “anticipate,” “continue,” “plan,” “estimate,” “believe,” “will,” “would,” “likely,” “intend,” “potential,” or similar expressions. Forward-looking statements in this release include our 2022 fourth quarter and full year financial guidance. 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 sanctions, foreign currency fluctuations, and/or acts of war; 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 Teradata’s 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 Teradata’s annual report to stockholders. 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.

About Teradata

Teradata is the connected multi-cloud data platform for enterprise analytics company. Our enterprise analytics solve business challenges from start to scale. Only Teradata gives you the flexibility to handle the massive and mixed data workloads of the future, today. Learn more at Teradata.com.

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.

Schedule A
 
TERADATA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share amounts - unaudited)
 

For the Period Ended September 30

Three Months

 

Nine Months

 

2022

 

 

 

2021

 

 

% Chg

 

 

2022

 

 

2021

 

% Chg

Revenue
 
Recurring

$

331

 

$

352

 

(6

%)

$

1,062

 

$

1,100

 

(3

%)

Perpetual software licenses, hardware and other

 

14

 

 

18

 

(22

%)

 

48

 

 

58

 

(17

%)

Consulting services

 

72

 

 

90

 

(20

%)

 

233

 

 

284

 

(18

%)

 
Total revenue

 

417

 

 

460

 

(9

%)

 

1,343

 

 

1,442

 

(7

%)

 
Gross profit
 
Recurring

 

239

 

 

257

 

 

769

 

 

828

 

% of Revenue

 

72.2

%

 

73.0

%

 

72.4

%

 

75.3

%

Perpetual software licenses, hardware and other

 

4

 

 

7

 

 

14

 

 

25

 

% of Revenue

 

28.6

%

 

38.9

%

 

29.2

%

 

43.1

%

Consulting services

 

16

 

 

11

 

 

35

 

 

39

 

% of Revenue

 

22.2

%

 

12.2

%

 

15.0

%

 

13.7

%

 
Total gross profit

 

259

 

 

275

 

 

818

 

 

892

 

% of Revenue

 

62.1

%

 

59.8

%

 

60.9

%

 

61.9

%

 
Selling, general and administrative expenses

 

155

 

 

166

 

 

475

 

 

476

 

Research and development expenses

 

79

 

 

79

 

 

236

 

 

235

 

 
Income from operations

 

25

 

 

30

 

 

107

 

 

181

 

% of Revenue

 

6.0

%

 

6.5

%

 

8.0

%

 

12.6

%

 
Other expense, net

 

(15

)

 

(11

)

 

(42

)

 

(31

)

 
Income before income taxes

 

10

 

 

19

 

 

65

 

 

150

 

% of Revenue

 

2.4

%

 

4.1

%

 

4.8

%

 

10.4

%

 
Income tax expense

 

2

 

 

2

 

 

25

 

 

36

 

% Tax rate

 

20.0

%

 

10.5

%

 

38.5

%

 

24.0

%

 
Net income

$

8

 

$

17

 

$

40

 

$

114

 

% of Revenue

 

1.9

%

 

3.7

%

 

3.0

%

 

7.9

%

 
Net income per common share
Basic

$

0.08

 

$

0.16

 

$

0.39

 

$

1.05

 

Diluted

$

0.08

 

$

0.15

 

$

0.38

 

$

1.01

 

 
Weighted average common shares outstanding
Basic

 

102.7

 

 

108.9

 

 

103.7

 

 

108.9

 

Diluted

 

104.7

 

 

113.4

 

 

106.4

 

 

113.1

 

 
Schedule B
 
TERADATA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions - unaudited)
 

September 30,

 

December 31,

 

September 30,

 

2022

 

 

 

2021

 

 

 

2021

 

Assets
 
Current assets
Cash and cash equivalents

$

506

 

$

592

 

$

613

 

Accounts receivable, net

 

253

 

 

336

 

 

290

 

Inventories

 

13

 

 

26

 

 

17

 

Other current assets

 

83

 

 

152

 

 

144

 

 
Total current assets

 

855

 

 

1,106

 

 

1,064

 

 
Property and equipment, net

 

234

 

 

288

 

 

300

 

Right of use assets - operating lease, net

 

15

 

 

26

 

 

29

 

Goodwill

 

385

 

 

396

 

 

397

 

Capitalized contract costs, net

 

88

 

 

111

 

 

99

 

Deferred income taxes

 

192

 

 

202

 

 

205

 

Other assets

 

49

 

 

40

 

 

40

 

 
Total assets

$

1,818

 

$

2,169

 

$

2,134

 

 
Liabilities and stockholders' equity
 
Current liabilities
Current portion of long-term debt

$

-

 

$

88

 

$

75

 

Current portion of finance lease liability

 

66

 

 

77

 

 

81

 

Current portion of operating lease liability

 

8

 

 

12

 

 

13

 

Accounts payable

 

79

 

 

67

 

 

104

 

Payroll and benefits liabilities

 

110

 

 

148

 

 

137

 

Deferred revenue

 

462

 

 

552

 

 

464

 

Other current liabilities

 

78

 

 

89

 

 

81

 

 
Total current liabilities

 

803

 

 

1,033

 

 

955

 

 
Long-term debt

 

498

 

 

324

 

 

349

 

Finance lease liability

 

45

 

 

53

 

 

58

 

Operating lease liability

 

11

 

 

18

 

 

20

 

Pension and other postemployment plan liabilities

 

127

 

 

138

 

 

141

 

Long-term deferred revenue

 

14

 

 

27

 

 

28

 

Deferred tax liabilities

 

6

 

 

7

 

 

8

 

Other liabilities

 

79

 

 

109

 

 

118

 

 
Total liabilities

 

1,583

 

 

1,709

 

 

1,677

 

 
Stockholders' equity
Common stock

 

1

 

 

1

 

 

1

 

Paid-in capital

 

1,908

 

 

1,808

 

 

1,776

 

Accumulated deficit

 

(1,519

)

 

(1,211

)

 

(1,179

)

Accumulated other comprehensive loss

 

(155

)

 

(138

)

 

(141

)

 
Total stockholders' equity

 

235

 

 

460

 

 

457

 

 
Total liabilities and stockholders' equity

$

1,818

 

$

2,169

 

$

2,134

 

 
Schedule C
 
TERADATA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions - unaudited)
 

For the Period Ended September 30

Three Months

 

Nine Months

 

2022

 

 

 

2021

 

 

 

2022

 

 

2021

 

Operating activities
Net income

$

8

 

$

17

 

$

40

 

$

114

 

 
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization

 

28

 

 

37

 

 

101

 

 

113

 

Stock-based compensation expense

 

27

 

 

27

 

 

90

 

 

79

 

Deferred income taxes

 

(9

)

 

1

 

 

(7

)

 

10

 

Changes in assets and liabilities:
Receivables

 

13

 

 

9

 

 

83

 

 

41

 

Inventories

 

4

 

 

3

 

 

13

 

 

12

 

Current payables and accrued expenses

 

4

 

 

30

 

 

(22

)

 

45

 

Deferred revenue

 

(65

)

 

(93

)

 

(103

)

 

(45

)

Other assets and liabilities

 

24

 

 

2

 

 

95

 

 

(1

)

 
Net cash provided by operating activities

 

34

 

 

33

 

 

290

 

 

368

 

 
Investing activities
Expenditures for property and equipment

 

(3

)

 

(10

)

 

(6

)

 

(19

)

Additions to capitalized software

 

-

 

 

-

 

 

(1

)

 

(2

)

 
Net cash used in investing activities

 

(3

)

 

(10

)

 

(7

)

 

(21

)

 
Financing activities
Repurchases of common stock

 

(29

)

 

(55

)

 

(346

)

 

(176

)

Proceeds from long-term borrowings

 

-

 

 

-

 

 

100

 

 

-

 

Repayments of long-term borrowings

 

-

 

 

(13

)

 

(13

)

 

(32

)

Payments of finance leases

 

(22

)

 

(24

)

 

(67

)

 

(68

)

Other financing activities, net

 

5

 

 

6

 

 

6

 

 

24

 

 
Net cash used in financing activities

 

(46

)

 

(86

)

 

(320

)

 

(252

)

 
Effect of exchange rate changes on cash and cash equivalents

 

(24

)

 

(7

)

 

(49

)

 

(11

)

 
(Decrease) increase in cash, cash equivalents and restricted cash

 

(39

)

 

(70

)

 

(86

)

 

84

 

Cash, cash equivalents and restricted cash at beginning of period

 

548

 

 

687

 

 

595

 

 

533

 

 
Cash, cash equivalents and restricted cash at end of period

$

509

 

$

617

 

$

509

 

$

617

 

 
Supplemental cash flow disclosure:
Non-cash investing and financing activities:
Assets acquired by finance leases

$

13

 

$

4

 

$

47

 

$

62

 

Assets acquired by operating leases

$

2

 

$

6

 

$

3

 

$

9

 

 
Schedule D
 
TERADATA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions - unaudited)
 

For the Three Months Ended September 30

 

For the Nine Months Ended September 30

 

2022

 

 

 

2021

 

 

% Change
As Reported

 

% Change
Constant
Currency (2)

 

 

2022

 

 

 

2021

 

 

% Change
As Reported

 

% Change
Constant
Currency (2)

Segment Revenue
 
Americas

$

242

 

$

249

 

(3

%)

(1

%)

$

781

 

$

786

 

(1

%)

0

%

EMEA

 

105

 

 

133

 

(21

%)

(13

%)

 

337

 

 

408

 

(17

%)

(10

%)

APJ

 

70

 

 

78

 

(10

%)

0

%

 

225

 

 

248

 

(9

%)

(1

%)

 
 
Total segment revenue

 

417

 

 

460

 

(9

%)

(4

%)

 

1,343

 

 

1,442

 

(7

%)

(3

%)

 
Segment gross profit
 
Americas

 

151

 

 

157

 

 

493

 

 

524

 

% of Revenue

 

62.4

%

 

63.1

%

 

63.1

%

 

66.7

%

EMEA

 

66

 

 

81

 

 

207

 

 

249

 

% of Revenue

 

62.9

%

 

60.9

%

 

61.4

%

 

61.0

%

APJ

 

44

 

 

44

 

 

136

 

 

142

 

% of Revenue

 

62.9

%

 

56.4

%

 

60.4

%

 

57.3

%

 
Total segment gross profit

 

261

 

 

282

 

 

836

 

 

915

 

% of Revenue

 

62.6

%

 

61.3

%

 

62.2

%

 

63.5

%

 
Reconciling items(1)

 

(2

)

 

(7

)

 

(18

)

 

(23

)

 
Total gross profit

$

259

 

$

275

 

$

818

 

$

892

 

% of Revenue

 

62.1

%

 

59.8

%

 

60.9

%

 

61.9

%

(1) Reconciling items include stock-based compensation, amortization of acquisition-related intangible assets and acquisition, integration and reorganization-related items.
(2) The impact of currency is determined by calculating the prior period results using the current-year monthly average currency rates.

 

Contacts

INVESTOR CONTACT
Christopher T. Lee
858-485-2523 office
christopher.lee@teradata.com

MEDIA CONTACT
Jennifer Donahue
858-485-3029 office
jennifer.donahue@teradata.com

Release Summary

Teradata (NYSE: TDC) today announced its third quarter 2022 financial results.

Contacts

INVESTOR CONTACT
Christopher T. Lee
858-485-2523 office
christopher.lee@teradata.com

MEDIA CONTACT
Jennifer Donahue
858-485-3029 office
jennifer.donahue@teradata.com