Additionally, private-equity firms will likely continue snapping up public cloud-software companies and taking them private while prices are low, according to analysts. 2021 was an impressive year for Teradata. 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. The workplace culture is toxic at Teradata, with the leadership team and HR unsupportive when issues arise. 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. 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. hX[o+|LP}"/MbNi 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. 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. The company's growth has stagnated in recent years due to competition from players like Dynatrace and Datadog, and its customer count is down. Public cloud ARR is expected to increase by approximately 80% year-over-year. Some potential acquirers could be Google or Cisco, 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. Teradata has acquired 16 companies. Acquisition, integration, reorganization related, and other costs, Amortization of acquisition-related intangible assets. Working at Teradata: 269 Reviews | Indeed.com 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. The Kings' desire for an experienced starting goaltender was evident when they acquired Korpisalo, as they had hoped for similar success from Cal Petersen, who they signed to a three-year, $15-million contract extension in September 2021. Teradata Highlights its New Strategy and Plan to Deliver Sustainable ARR does not include managed services and third-party software. What it does: SolarWinds is an IT management software firm that makes tools to help companies manage their networks, systems, and IT infrastructure. "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. Public cloud ARR increased to $202 million from $106 million, an increase of 91% as reported and 92% in constant currency . 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%. The Motley Fool recommends Teradata. Teradata Stock: Snowflake On A Budget? - Forbes Teradata Reports Fourth-Quarter and Full-Year 2021 Financial Results Reconciling items include stock-based compensation, capitalized software, amortization of acquisition-related intangible assets and acquisition, integration and reorganization-related items. The Companys GAAP effective tax rate for the three and twelve months ended December 31, 2020, includes a net $9 million income tax benefit resulting from the CARES Act of 2020, which allows US corporations a one-time opportunity to claim income tax refunds by allowing a 5-year net operating loss (NOL) carryback for taxable losses incurred in the tax year 2020. Why it's an acquisition target: RBC and other analysts have seen Dropbox as a potential acquisition target for a while. GAAP diluted EPS is expected to be in the range of $0.75 to $0.85. 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. More software M&A is in the forecast as valuations and stock prices continue to drop and private companies aren't the only ones likely to get gobbled up. SAN DIEGO-- (BUSINESS WIRE)-- Teradata (NYSE: TDC) today announced its fourth-quarter and full-year 2021 financial results. 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. 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. Note to Investors For the twelve months ended December 31, the Companys non-GAAP effective tax rate was 22.4% for 2021 and 23.2% for 2020. This includes machine upgrade and machine migration, as well as software support, such as upgrades or specific patches. These forward-looking statements are based upon current expectations and assumptions and involve risks and uncertainties that could cause actual results to differ materially, including the factors discussed in this release and 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 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, including the impact of the COVID-19 pandemic on our customers and suppliers; risks associated with data privacy, cyberattacks and maintaining secure and effective 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 workforce and the ability to attract and retain skilled employees; protecting our intellectual property; the availability and successful exploitation of new alliance and acquisition opportunities; subscription arrangements 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 annual report on Form 10-K for the year ended December 31, 2020 and subsequent quarterly reports on Forms 10-Q, as well as the Companys annual report to stockholders. That's what sets it apart from more traditional database companies like Oracle. MEDIA CONTACT SAN DIEGO--(BUSINESS WIRE)-- 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. 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. Why The Valuation Gap Could Narrow Let . 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. Additional information regarding Teradatas operating results is provided below as well as on Teradatas website at investor.teradata.com. What it does: Zoom makes video-conferencing tools, including video chat, cloud-phone services, and video software for conference rooms. -- Teradata (NYSE: TDC ) today announced its fourth-quarter and full- year 2021 financial results. 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. After submitting your information, you will receive an email. 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. endstream endobj startxref 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. 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. Teradata (NYSE: TDC) today announced its fourth-quarter and full-year 2021 financial results. 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. IBM Takes Over Teradata - NexusDataServer.com 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. 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. The Companys full-year 2020 GAAP marginal effective tax rate included $3 million of tax expense related to tax contingencies pursuant to FIN 48. Teradata Reports First Quarter 2021 Financial Results 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. 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. The Company's most targeted sectors include information technology (40%) and software (34%). Teradata Engaged Employer Overview 3.1K Reviews 168 Jobs 4.3K Salaries 533 Interviews 1.1K Benefits 37 Photos 887 Diversity + Add a Review Teradata Employee Reviews about "layoff" Updated Apr 27, 2023 Search Reviews Clear All Full-time, Part-time English Filter Found 93 of over 3K Sort Popular Popular COVID-19 Related Highest Rating Lowest Rating On the strategic-M&A side, the chip giant Broadcom made a deal to acquire VMware for a whopping $61 billion back in May. Overall, Teradata expects public cloud ARR to increase by at least 165% year-over-year in Q1 2021 and expects to at least double ARR year-over-year for 2021. Non-GAAP diluted EPS is expected to be in the range of $0.63 to $0.67. "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. Free cash flow does not have a uniform definition under GAAP and, therefore, Teradatas definition may differ from other companies definitions of this measure. 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. 10087 0 obj <> endobj Total ARR is expected to grow at a mid-to-high-single-digit percentage year-over-year. Teradata has invested in multiple sectors such as MarketingTech, Big Data Infrastructure, AdTech and more. However, RBC analysts note that an acquisition would be difficult given some of the company's bylaws and shareholder agreements. Teradata Reports First Quarter 2021 Financial Results. The Companys GAAP effective tax rate for the three and twelve months ended December 31, 2020, includes a net $9 million income tax benefit resulting from the CARES Act of 2020, which allows US corporations a one-time opportunity to claim income tax refunds by allowing a 5-year net operating loss (NOL) carryback for taxable losses incurred in the tax year 2020. 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. Given that, it would make sense for a larger company to look into acquiring Zoom. GAAP profits are predicted to range from $0.75 to $0.85 -- much weaker than in 2021. 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. Why it's an acquisition target: The industry has long thought of Box as an acquisition target. Late last week, IBM confirmed the country managers who will run Kyndryl when it launches later this year. 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. 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. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. BP, ADNOC Offer to Buy Half of Israel's NewMed Energy. In fact, the company earned more than twice the predicted profit -- $0.57 per share -- and needed sales of only $475 million to do it. Why it's an acquisition target: Smartsheet is operating in a competitive space, as the number of collaborative work-management tools has skyrocketed in recent years. Big Blue itself responded to us by saying we needed to ask Teradata for comment. 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. 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.. A Look At Teradata's History & Achievements For non-GAAP Diluted Earnings Per Share preliminary estimate for fiscal 2022, Teradata is not providing a reconciliation to the most comparable GAAP measure (GAAP Diluted Earnings Per Share preliminary estimate for fiscal 2022) as non-GAAP adjustments relate to events that have not yet occurred and would be unreasonably burdensome to forecast. 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. In April, Thoma Bravo acquired SailPoint, an enterprise-security-software company, for about $6.9 billion. 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.. 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. They pointed to some deals that had already been done in the space like Citrix and Wrike, Adobe and Workfront, and Atlassian and Trello. 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. 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. What it does: Sumo Logic makes cloud-based data-analytics software that helps companies monitor and analyze how their employees and customers are accessing data and processes in the cloud. Company Mergers, Acquisitions, & JVs; . Teradata has made 12 acquisitions 0. Teradata is the connected multi-cloud data platform for enterprise analytics company. Cash provided by operating activities (GAAP). Teradata Reports Third Quarter 2021 Financial Results 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. Observers fear a haemorrhage of the knowledge required to keep the unique Teradata systems up and running. Internet Explorer presents a security risk. 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. Cloud-native warehouses get around the concurrency problem by spinning up new warehouse instances, but that can leave users dealing with the cost of unplanned demand on cloud services. 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. 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. 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. 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. Per Figure 2 TDC's TTM non-GAAP net income of $154 million is well above GAAP net income of $14 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. "While CEO and founder Eric Yuan may be hesitant to sell, we still think the right acquirer may make sense given the history with CSCO's acquisition of Webex.". 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. 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%. Teradata reports its results in accordance with GAAP. GAAP profits for the quarter were only $0.29 per share -- not $0.57. 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. 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. A person who asked to remain anonymous pointed out that while systems architects were trying to convince businesses to make the shift to the cloud, users of Teradata systems business analysts who use data to inform important company decisions were less keen. 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. "SMAR could replace MSFT's legacy solution, Microsoft Project, though we acknowledge MSFT has been able to organically build Teams and could look to continue to build rather than buy in this space," the analysts wrote. 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. This is an increase from the range of $1.60 to $1.70, which was previously communicated at Teradatas Investor Day in September 2021. 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. For the first quarter of fiscal 2021, Teradata currently expects to exceed its guidance provided on February 4, 2021 for GAAP earnings per diluted share, Non-GAAP earnings per diluted share, and public . 0 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. Amortization of acquisition-related - intangible assets 0.01 0.01 Acquisition, integration, reorganization-related, and other costs GAAP diluted EPS is expected to be in the range of $0.75 to $0.85. "In other words, we believe larger scale debt-financed private-equity takeouts could be unlikely in the near-term," RBC analysts wrote. About Teradata Zendesk, which offers customer-service software, was also taken private for $10.2 billion by an investor group, which Hellman & Friedman and Permira led. Learn more at Teradata.com. "This is the entire on-premises estate for Teradata," said a senior source close to the company. UPDATE: Needham & Company Upgrades Teradata (TDC) to Buy 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. Teradata (TDC 0.36%) stock surged in morning trading today, up 24.2% as of 10:50 a.m. 1. CONDENSED CONSOLIDATED STATEMENTS OF INCOME, (in millions, except per share amounts - unaudited), CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS. Our enterprise analytics solve business challenges from start to scale. Free cash flow is a non-GAAP measure. endstream endobj 10088 0 obj <>/Metadata 138 0 R/Outlines 150 0 R/Pages 10083 0 R/StructTreeRoot 167 0 R/Type/Catalog>> endobj 10089 0 obj <>/ExtGState<>/Font<>/XObject<>>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> endobj 10090 0 obj <>stream Additionally, Coupa's stock has fallen in recent months, making it cheaper for any potential acquirer. Cost basis and return based on previous market day close. Large companies look to score tools at a discount while private-equity firms also eye takeovers. The company started as a file-sharing service and has since added capabilities like document collaboration and e-signatures. Christopher T. Lee 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. 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. 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. 858-485-2523 office This release contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934. This release contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934. "Anything sub-$10 billion is more feasible for strategics in this environment," he told Insider.