However, RBC analysts note that an acquisition would be difficult given some of the company's bylaws and shareholder agreements. As described below, the Company believes that free cash flow is a useful non-GAAP measure for investors. "If you don't give them something that's at least as good with a low disruption to make the transition, then just forget it," our source said. "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. 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. We delivered strong results, driving more than 90% growth in public cloud ARR and significantly growing new cloud customers. It seems the deal may be multi-territory as The Register has seen documents indicating IBM is answering tickets on behalf of Teradata in Europe. 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. 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. Additional information regarding Teradatas operating results is provided below as well as on Teradatas website at investor.teradata.com. 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. *Average returns of all recommendations since inception. The impact of currency is determined by calculating the prior period results using the current-year monthly average currency rates. That gives the company an interesting view on how quickly companies are transitioning to the cloud, which would make it a valuable acquisition for a large IT company, RBC analysts said. GAAP diluted EPS is expected to be in the range of $0.75 to $0.85. Teradata reports its results in accordance with GAAP. Teradata Helps Customers Unlock True Value of their Data with Integration of Teradata VantageCloud and Microsoft Azure Machine Learning Read the press release Feb 22, 2023 Press Teradata Appoints Jose Garces Go-To-Market Vice President of Northern Europe and Southern Europe Read the press release Feb 13, 2023 Press 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. 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. 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. May 6, 2021. 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.. But many customers are keen to keep on-prem systems up and running for the time being, one source told us, as they weigh up their options for moving to the cloud with Teradata or another cloud system. 10087 0 obj <> endobj 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. While its growth has made it less of an acquisition target, RBC analysts wrote that any "misstep" would make it an attractive candidate for a private-equity firm to acquire. Why The Valuation Gap Could Narrow Let . Several deals have already made waves. Only Teradata gives you the flexibility to handle the massive and mixed data workloads of the future, today. Additional information regarding Teradatas operating results is provided below as well as on Teradatas website at investor.teradata.com. While the company is doing well financially, it's still in recovery mode from the incident. And just last month, Adobe executives announced the company is acquiring the beloved design startup Figma for $20 billion. They said Rapid7 and Varonis Systems could potentially acquire Qualys. Teradata is dedicated to helping enterprise businesses around the globe use data analytics to tackle the problems they face every day. Only Teradata gives you the flexibility to handle the massive and mixed data workloads of the future, today. Free cash flow does not have a uniform definition under GAAP and, therefore, Teradatas definition may differ from other companies definitions of this measure. 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. Cash flow from operations is expected to be approximately $430 million. Teradata reports its results in accordance with GAAP. As described below, the Company believes that free cash flow is a useful non-GAAP measure for investors. Heading into a new fiscal year, Teradata says revenue will again grow in the "flat-to-low-single-digit percentage" range in 2022, with public cloud revenue growing 80% and recurring revenue growing in the "low-to-mid-single" digits. Note to Investors Fri 9 Jul 2021 // 10:45 UTC 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. What it does: Teradata makes software for cloud databases and analytics. "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. However, they think the overall market for IT-service management will consolidate over time, and N-Able is one company that a private-equity firm could acquire as part of that trend. 2011. The Motley Fool recommends Teradata. 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? hX[o+|LP}"/MbNi Forward-looking statements in this release include our 2022 first quarter and full year financial guidance and share repurchase plans. 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. Learn more at Teradata.com. Over the course of the last year, we have embarked on a journey to cloud-first and today, we are a new, reimagined Teradata a profitable growth company with the right strategy, technology and team to win in a large and growing market, said Steve McMillan, Teradata President and CEO. Learn More. This release contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934. Total ARR is expected to grow at a mid-to-high-single-digit percentage year-over-year. 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. 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. 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. Why it's an acquisition target: Zoom saw huge growth during the early days of the pandemic due to the sudden shift to remote work, but since the beginning of this year, its stock has fallen back to pre-2020 levels. 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. This release contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934. Non-GAAP diluted EPS is expected to be in the range of $0.63 to $0.67. It has the power of cloud storage along with good querying capacity to retrieve data for customized analytics. Non-GAAP diluted EPS is expected to be in the range of $0.63 to $0.67. February 2, 2021 He Couldn't Beat Teradata. b )j@QB H0p~f1l2f2a#y@{v"\9= ~Pf`b@?h&;@:q =! "7 What it does: N-Able makes software for IT management, including monitoring, management, security, and ticketing tools. GAAP diluted EPS is expected to be in the range of $0.75 to $0.85. 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. , The Register Biting the hand that feeds IT, Copyright. 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. 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. year 2021 financial results. By providing my email address and clicking sign up I consent that Q4 Inc. may occasionally send me the communications I have selected to receive above on behalf of Teradata. About Teradata * 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. Jennifer Donahue 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. MEDIA CONTACT And while there have been several large strategic acquisitions recently including Adobe's bid for Figma, which was the largest ever for a private-software company, and Salesforce's $27 billion deal for Slack Rishi Jaluria, an analyst at RBC, sees smaller-scale M&A as more realistic in the current economic environment. Teradata declined the opportunity to deny hardware support was being transferred to IBM. 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. Your privacy is important. Only Teradata gives you the flexibility to handle the massive and mixed data workloads of the future, today. Teradata is the connected multi-cloud data platform for enterprise analytics, solving data challenges from start to scale. Free cash flow is expected to be approximately $400 million. The attack went undetected for months, according to a Reuters report. 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. Moving to the cloud would be a "massive disruption.". 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 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. 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. Your personal information will be collected, stored, and processed in accordance with the Teradata Global Privacy Policy. 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. 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. ET, after the data management specialist reported fourth-quarter 2021 earnings last night -- and beat analyst predictions with a stick. 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.. 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. This is an increase from the range of $1.60 to $1.70, which was previously communicated at Teradatas Investor Day in September 2021. They said it could be acquired by a private-equity firm or another cloud vendor. CONDENSED CONSOLIDATED STATEMENTS OF INCOME, (in millions, except per share amounts - unaudited), CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS. Download this Press Release. What it does: Splunk makes software for IT professionals that sift through and analyze enormous amounts of performance and system data in their networks. 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. Companies like Salesforce and Microsoft would benefit from buying Smartsheet and adding those capabilities to their platforms, the analysts wrote. BP, ADNOC Offer to Buy Half of Israel's NewMed Energy. The Companys full-year 2020 GAAP marginal effective tax rate included $3 million of tax expense related to tax contingencies pursuant to FIN 48. 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. jennifer.donahue@teradata.com. Recurring revenue is expected to grow at a low-to-mid-single-digit percentage year-over-year. To make the world smarter, happier, and richer. 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. 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. ARR does not include managed services and third-party software. Non-GAAP diluted EPS is expected to be in the range of $1.82 to $1.92. 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. 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%. Total revenue is expected to be flat-to-low-single-digit percentage growth year-over-year. 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. INVESTOR CONTACT However, Petersen really disappointed this season, getting sent down to the minors after just 10 games. 858-485-3029 office The organization is led by an ancient legacy PMO that needs . They're both ruinously complicated, but there is no crossover at all," one source said. The strength of our performance in 2021 is matched by our conviction to continue accelerating in 2022. Learn more at Teradata.com. Given that, it would make sense for a larger company to look into acquiring Zoom. Teradata (TDC 0.36%) stock surged in morning trading today, up 24.2% as of 10:50 a.m. Teradata also today reaffirmed its outlook for fiscal 2021, which was previously provided in its second-quarter 2021 financial results press release issued on August 5, 2021: To access the replay of todays virtual Investor Day event and presentation materials, visit the investor relations page of Teradatas website at https://investor.teradata.com. Granted, one way of looking at the numbers is that Teradata missed on sales, pulling in about 1% less revenue than predicted. 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. 2. 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. Big Blue itself responded to us by saying we needed to ask Teradata for comment. The company has spent over $ 808M for the acquisitions. View source version on businesswire.com: In 2018, TDC removed $66 million (42% of non-GAAP net income) in stock-based compensation. We continue to demonstrate our commitment to deliver shareholder value through disciplined capital allocation, including our intention to enter into a $250 million accelerated share repurchase program in the first quarter, enabled by our strong balance sheet and projections of cash flow generation., Fourth-Quarter 2021 Financial Highlights Compared to Fourth-Quarter 2020, Full-Year 2021 Financial Highlights Compared to Full Year 2020. Some potential acquirers could be Google or Cisco, RBC analysts wrote. Large companies look to score tools at a discount while private-equity firms also eye takeovers. Public cloud ARR is expected to increase by approximately 80% year-over-year. Free cash flow is a non-GAAP measure. 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. Director (Former Employee) - San Diego, CA - December 22, 2021. The company started as a file-sharing service and has since added capabilities like document collaboration and e-signatures. Forward-looking statements generally relate to opinions, beliefs, and projections of expected future financial and operating performance, business trends, and market conditions, among other things. Teradata is the connected multi-cloud data platform for enterprise analytics company. 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, net income, and EPS, excluding certain items, to understand, manage and evaluate our business and support operating decisions on a regular basis. "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. 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. 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. 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. "2021 was an impressive year for Teradata. "We think the company has made good progress on its cloud transition, and as such, it could represent an interesting acquisition candidate for a large vendor or PE shop that wants to get deeper into cloud analytics," RBC analysts wrote. What it does: Qualys is a cybersecurity company and makes software for cloud security, compliance, and vulnerability-management solutions. They named 16 companies, including pandemic darlings like Zoom and the IT management software firm SolarWinds, which is still reeling from a devastating 2020 hack. 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. 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. ARR does not include managed services and third-party software. We delivered strong results, driving more than 90% growth in public cloud ARR and significantly growing new cloud customers. The company has made a few small acquisitions of it own as it looks to expand beyond video conferencing into a video-communications platform. 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. 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. Why it's an acquisition target: In 2020, SolarWinds faced a cyberattack that spread to its clients and wreaked havoc on the company. Teradata has acquired in 4 different US states, and 4 countries. 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 . "Now Teradata has decided to sell the problem to IBM," added one of the insiders. Amortization of acquisition-related - intangible assets 0.01 0.01 Acquisition, integration, reorganization-related, and other costs endstream endobj startxref Acquisition, integration, reorganization related, and other costs, Amortization of acquisition-related intangible assets. 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.
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