What it does: N-Able makes software for IT management, including monitoring, management, security, and ticketing tools. Fellow workers are not helpful, and the environment is not a collaborative, innovative, team oriented environment. 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. hb```&V[ eah```t``s#TN'lF[z8Y|0m 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%. GAAP profits are predicted to range from $0.75 to $0.85 -- much weaker than in 2021. 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. This release contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934. Forward-looking statements in this release include our 2022 first quarter and full year financial guidance and share repurchase plans. 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. You must click the link in the email to activate your subscription. We delivered strong results, driving more than 90% growth in public cloud ARR and significantly growing new cloud customers. Learn More. The company started as a file-sharing service and has since added capabilities like document collaboration and e-signatures. The attack went undetected for months, according to a Reuters report. 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 Companys website at investor.teradata.com. Christopher T. Lee * 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. 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. This release contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934. Director (Former Employee) - San Diego, CA - December 22, 2021. 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. MEDIA CONTACT He's not sure any company would be able to get a Slack-sized deal done in the current economic climate aside from, perhaps, Microsoft. Cash flow from operations is expected to be approximately $430 million. Teradata has made 12 acquisitions 0. Acquisition, integration, reorganization related, and other costs, Amortization of acquisition-related intangible assets. endstream endobj startxref But after the huge 2021 beat, investors today seem willing to accept this more muted forecast for 2022. 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 today provided financial targets through fiscal 2025, including: For fiscal 2022, the company preliminarily estimates: Non-GAAP diluted net earnings per share in fiscal 2022 is expected to be impacted primarily by upfront recurring revenue recognized in fiscal 2021. 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. Public cloud ARR is expected to increase by approximately 80% year-over-year. What it does: Duck Creek Technologies makes cloud software for property-and-casualty-insurance companies. "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.". 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. The company has made a few small acquisitions of it own as it looks to expand beyond video conferencing into a video-communications platform. GAAP diluted EPS is expected to be in the range of $0.75 to $0.85. "A larger strategic vendor could deploy more capital than Couchbase could as an independent vendor to target a large and growing opportunity similar to MDB," RBC analysts wrote. hX[o+|LP}"/MbNi Total ARR is expected to grow at a mid-to-high-single-digit percentage year-over-year. hbbd``b` @d@nig7 A,) SG $cD7,#&0 @L X Cash flow from operations is expected to be approximately $430 million. 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. 2021 was an impressive year for Teradata. Public cloud ARR is expected to increase by approximately 80% year-over-year. Why it's an acquisition target: Couchbase went public in 2021 and has since been pivoting to offer a fully cloud-hosted database. In April, Thoma Bravo acquired SailPoint, an enterprise-security-software company, for about $6.9 billion. The Companys GAAP effective tax rate for the twelve months ended December 31, 2020, includes $156 million of discrete tax benefit related to an intra-entity asset transfer of certain of its intellectual property to one of its Irish subsidiaries, which occurred on January 1, 2020. "We could see a PE sponsor taking the opportunity to find more low-hanging fruit in the model and finding further margin-expansion opportunities," RBC analysts wrote. "Over the course of the last year, we have embarked on a journey to cloud-first and today . And its pro forma number was roughly twice its predicted pro forma profit of $0.25 to $0.29 for the quarter. Public cloud ARR increased by $79 million, or 176% from the prior year period, exceeding the outlook of at least 165% year-over-year (1) First-quarter recurring revenue of $372 million, an increase of 20% from the prior year period. Note to Investors 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. "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. "As large IT vendors need a view into both public and on-premise spending, Nutanix could help solve that given its large scale, salesforce, and market opportunity," RBC analysts wrote. This release contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934. Download this Press Release. 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. 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. SAN DIEGO--(BUSINESS WIRE)-- As for the outsourcing agreement, the contract will likely reside within IBM Global Services, the part of the organisation that is being spun out into a separately listed public entity known as Kyndryl. Additional information regarding Teradatas operating results is provided below as well as on Teradatas website at investor.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. "This could make even more sense if the market consolidates up to the platform level," the analysts wrote. 10087 0 obj <> endobj 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. 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. Teradata's systems are highly engineered and while replacing a power supply or a disk drive should be a simple process, if something more serious fails "it can be catastrophic," our source said. 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. In this environment, analysts and experts expect to see more consolidation and say that larger players will seize the moment to acquire new tools at a good price. "Anything sub-$10 billion is more feasible for strategics in this environment," he told Insider. "Now Teradata has decided to sell the problem to IBM," added one of the insiders. Teradata support employees are holding their breath to the point of turning blue. jennifer.donahue@teradata.com. Our enterprise analytics solve business challenges from start to scale. 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. ARR does not include managed services and third-party software. Our management internally uses supplemental non-GAAP financial measures, such as gross profit, operating income, operating margin, net income, and EPS, excluding certain items, to understand, manage and evaluate our business and support operating decisions on a regular basis. In 2018, TDC removed $66 million (42% of non-GAAP net income) in stock-based compensation. christopher.lee@teradata.com At the Investor Day event, Teradatas new leadership team outlined its three foundational cornerstones for long-term growth and value creation: Continued Strong Financial Performance Through Fiscal 2025 and Beyond. What it does: Dropbox makes cloud-based content-management and file-sharing software. For estimates of free cash flow for fiscal 2022 and fiscal 2025, Teradata is not providing a reconciliation to the most comparable GAAP measure (cash provided by operating activities estimate) as non-GAAP adjustments relate to events that have not yet occurred and would be unreasonably burdensome to forecast. 3. 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%. INVESTOR CONTACT Total revenue is expected to be flat-to-low-single-digit percentage growth year-over-year. The impact of currency is determined by calculating the prior period results using the current-year monthly average currency rates. 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. All of which positions us to achieve over $1 billion in Cloud ARR(1) and approximately $550 million in free cash flow(2) in fiscal 2025 and deliver significant long-term value to our shareholders.. 11:46am: The team announced they have indeed selected the contract of Bauers.To make room on the 40-man roster, reliever Lou Trivino was transferred to the 60-day IL.. 7:59am: The Yankees have . While the company is doing well financially, it's still in recovery mode from the incident. ~P-Y2$}+Z]\r8e-k55:Vq^s>]=-\F4fc YX7q,FZtJ;ZhFjaZ(#l. Recurring revenue is expected to grow at a low-to-mid-single-digit percentage year-over-year. 858-485-2523 office jennifer.donahue@teradata.com. ARR does not include managed services and third-party software. 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. GAAP profits for the quarter were only $0.29 per share -- not $0.57. 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. 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. 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. 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 reports its results in accordance with GAAP. The Companys full-year 2020 GAAP marginal effective tax rate included $3 million of tax expense related to tax contingencies pursuant to FIN 48. 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. Late last week, IBM confirmed the country managers who will run Kyndryl when it launches later this year. Only Teradata gives you the flexibility to handle the massive and mixed data workloads of the future, today. "This is the entire on-premises estate for Teradata," said a senior source close to the company. 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 Vantage is a legacy system used by many large organizations and corporates for storing data and providing it to end users. 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%. 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. Teradata reports its results in accordance with GAAP. The company has spent over $ 808M for the acquisitions. "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. 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. 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. The strength of our performance in 2021 is matched by our conviction to continue accelerating in 2022. 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. Why it's an acquisition target: The industry has long thought of Box as an acquisition target. Why it's an acquisition target: Jana Partners, a group of activist investors, is targeting New Relic and preparing to explore a potential sale to private equity, Reuters reported in July. Observers fear a haemorrhage of the knowledge required to keep the unique Teradata systems up and running. For GAAP purposes, this is a component of the marginal rate and is recognized as tax benefit or expense based on the Companys reported GAAP pre-tax income or loss for the quarter. Teradata has been caught between conflicting demands of investors impatient to see it execute a cloud-first strategy, and customers uncertain about how highly optimised concurrent queries will work in the cloud. 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. Big Blue itself responded to us by saying we needed to ask Teradata for comment. This is an increase from the range of $1.60 to $1.70, which was previously communicated at Teradatas Investor Day in September 2021. -- Teradata (NYSE: TDC ) today announced its fourth-quarter and full- year 2021 financial results. What it does: Zoom makes video-conferencing tools, including video chat, cloud-phone services, and video software for conference rooms. "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.". Reconciling items include stock-based compensation, capitalized software, amortization of acquisition-related intangible assets and acquisition, integration and reorganization-related items. The company's growth has stagnated in recent years due to competition from players like Dynatrace and Datadog, and its customer count is down. 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 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. 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. 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. "2021 was an impressive year for Teradata. The organization is led by an ancient legacy PMO that needs . "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. To make the world smarter, happier, and richer. Non-GAAP diluted EPS is expected to be in the range of $0.63 to $0.67. Additionally, private-equity firms will likely continue snapping up public cloud-software companies and taking them private while prices are low, according to analysts. Teradata Columnar, a transformative advance in database technology that fully integrates columnar and row-based tables, launches. However, as described below, the Company believes that certain non-GAAP measures such as non-GAAP earnings per diluted share, or EPS, and non-GAAP operating margin, which exclude certain items (as well as free cash flow) are useful for investors. 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. 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. 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. That's what sets it apart from more traditional database companies like Oracle. 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. 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.