Slide 1: Q2'22 Earnings Results
Q2’22 Earnings Results Teradata Investor Relations August 2022 The Connected Multi-Cloud Data Platform for Enterprise Analytics
Slide 2: Forward-Looking Statements Non-GAAP Financial Measures
Forward-Looking Statements Non-GAAP Financial Measures This presentation and the accompanying discussion foreign currency fluctuations, and/or acts of war; risks This presentation and the accompanying discussion contain forward-looking statements within the associated with the ongoing and uncertain
Slide 3: Teradata - At a Glance
3 ©2021 Teradata Teradata - At a Glance Corporate Purpose We transform how businesses work and people live through the power of data We are The connected multi-cloud data platform for enterprise analytics 1 The leading multi-cloud data platform from start to scale 2 The most effective platform for d
Slide 4: Teradata - By the Numbers Q2'22
Teradata - By the Numbers Q2’22 $234 million 68% year-over-year, 75% year-over-year in CC Public cloud ARR $1.390 billion 3% year-over-year, 1% year-over-year in CC Total Annual Recurring Revenue (ARR) $345 million 8% year-over-year, 5% year-over-year in CC Recurring revenue $430 million 12% year-ov
Slide 5: Teradata - By the Numbers Q2'22
Teradata - By the Numbers Q2’22 ($0.04) in Q2’22 from $0.39 in Q2’21 GAAP diluted earnings per share $0.33 in Q2’22 from $0.74 in Q2’21 Non-GAAP diluted earnings per share(1) $105 million in Q2’22 from $225 million in Q2’21 Cash flow from operations $102 million in Q2’22 from $219 million in Q2’21 F
Slide 6: ARR by Product
ARR by Product 1,492 1,425 1,404 1,426 1,437 1,427 1,348 1,390 392 409 343 323 490 456 426 520 $1.390B 898 876 833 -3% YoY 824 860 880 829 +1% YoY CC 748 202 209 234 81 106 124 139 148 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Cloud Subscription Maint & SW Upgrade Rights NOTES: Amounts in U.S.
Slide 7: Revenue by Type
Revenue by Type 1,927 1,861 405 343 496 99 71 491 491 491 475 454 460 84 430 111 96 98 92 100 90 26 23 17 19 77 34 18 $430M 25 8 1,423 1,447 372 376 386 -12% YoY in Q2’22 329 346 352 364 345 -8% CC in Q2’22 0 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 LTM'21 LTM'22 Recurring Perpetual Consultin
Slide 8: Impacts to ARR and Revenue
Impacts to ARR and Revenue ARR Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Reported YoY Growth Rate 12% 9% 7% 5% 2% -3% Positive/(Negative) on Reported YoY Growth Rate: FX 3% 2% 1% -2% -1% -4% Russia 0% 0% 0% 0% -4% -4% Total Revenue Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Reported YoY G
Slide 9: Q2'22 Revenue by Region
Q2’22 Revenue by Region AMS EMEA APJ TOTAL TOTAL TOTAL $249M $103M $78M -9% YoY -20% YoY -12% YoY -8% CC -13% CC -3% CC RECURRING REVENUE RECURRING REVENUE RECURRING REVENUE AS A % OF AS A % OF AS A % OF TOTAL REVENUE TOTAL REVENUE TOTAL REVENUE 86% 73% 71% NOTES: Amounts in U.S. Dollars in Milli
Slide 10: 1H'22 Revenue by Region
1H’22 Revenue by Region AMS EMEA APJ TOTAL TOTAL TOTAL $539M $232M $155M 0% YoY -16% YoY -9% YoY 1% CC -9% CC -2% CC RECURRING REVENUE RECURRING REVENUE RECURRING REVENUE AS A % OF AS A % OF AS A % OF TOTAL REVENUE TOTAL REVENUE TOTAL REVENUE 86% 71% 68% NOTES: Amounts in U.S. Dollars in Millions
Slide 11: Gross Margin ($M)
$300 78% 79% Non-GAAP Gross Margin Gross Margin ($M) 77% 78% 77% 75% 76% 75% $200 75% 74% 76% 75% 73% 74% Recurring $100 73% 72% 71% $0 70% Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Total Gross Margin % of Revenue $325 64% 65% $20 52% 60% Gross Margin ($M) 48% 47% 47% 63% 63% $15 39% 61% 63% 3
Slide 12: Non-GAAP Operating Expenses
Non-GAAP Operating Expenses SG&A R&D 80 160 75 32% 35% 30% 31% 30% 30% 150 17% 17% 26% 27% 26% 70 16% 25% 140 15% 65 14% 14% 14% 14% 130 15% 60 135 150 130 132 139 144 129 136 75 74 70 69 72 66 68 72 120 5% 55 12% Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1
Slide 13: Non-GAAP Operating Margin & Earnings Per Share
Non-GAAP Operating Margin & Earnings Per Share Non-GAAP Operating Margin Earnings Per Share 140 24% 23% 23% 120 19% $1.55 1.43 100 15% 15% 14% 80 13% 0.99 $0.95 0.86 0.74 60 0.39 40 0.30 0.33 $0.35 20 0 (0.04) -$0.25 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 1H'21 1H'22 Q2'21 Q2'22 Operating I
Slide 14: Free Cash Flow & Capital Allocation
Free Cash Flow & Capital Allocation YTD’22 Capital Allocation 463 Q2’22 Capital Allocation 432 Stock repurchase Stock repurchase 256 252 225 $317M 219 $67M Approximately 7.2 million shares Approximately 2.1 105 102 million shares Return of YTD’22 FCF = 126% FY21 YTD FY22 Q2'21 Q2'22 Target = At leas
Slide 15: Select Cash and Debt Balances
Select Cash and Debt Balances Net Cash (Debt) $700 $ Millions Q2’21 Q3'21 Q4'21 Q1’22 Q2’22 Cash and cash $ 684 $ 613 $ 592 $ 404 $ 545 equivalents $ Millions $0 Long-term $ (436) $ (424) $ (412) $ (399) $ (497) debt Finance lease $ (160) $ (139) $ (130) $ (132) $ (118) liabilities ($700) Q2’21 Q3’2
Slide 16: Financial Outlook
Financial Outlook FY22 Outlook Public cloud ARR Total ARR to decline Recurring revenue Total revenue Non-GAAP EPS Free cash flow growth of in the low-to-mid- to decline in the low- to decline in the mid- in the range of of approximately approximately 80% single-digit % range to-mid-single-digit % to
Slide 17: Teradata's long-standing commitment to ESG is clear and unwavering
Teradata’s long-standing commitment to ESG is clear and unwavering (1) 1. Named to "Barron’s 100 Most Sustainable Companies” published in February 2022. 17 ©2022 Teradata
Slide 18: Teradata Named a Leader in the Gartner Magic Quadrant
Teradata Named a Leader in the Gartner Magic Quadrant for Cloud Database Management Systems 19th time Teradata has been named a Leader Teradata Vantage provides operational reliability and high throughput. Price predictability and financial governance are key strengths. Gartner Magic Quadrant for Cl
Slide 19: Teradata is #1 in Data Warehouse, Logical Data Warehouse, Data Lake and Operational Intelligence
Teradata is #1 in Data Warehouse, Logical Data Warehouse, Data Lake and Operational Intelligence Gartner Critical Capabilities for Cloud Database Management Systems for Analytical Use Cases* *Gartner, Critical Capabilities for Cloud Database Management Systems, Rick Greenwald, Merv Adrian, Adam Ront
Slide 20: Teradata's leadership team
Teradata’s leadership team Steve McMillan Hillary Ashton Claire Bramley Stephen Brobst Nicolas Chapman President and Chief Product Officer Chief Financial Officer Chief Technology Officer Chief Strategy Officer Chief Executive Officer Todd Cione Kathy Cullen-Cote Michael Hutchinson Molly Treese Jacq
Slide 21: We have a significant opportunity to increase shareholder value
We have a significant opportunity to increase shareholder value Capture • Best-of-breed technology Long-Term the Future • Differentiated Value Creation • Continued innovation • Investing in growth Accelerate Growth in Sustainable • Opportunities to lead Large Market Opportunity Revenue Growth in lar
Slide 22: The connected multi-cloud data platform for enterprise analytics
The connected multi-cloud data platform for enterprise analytics. Profitable growth Unique connected Strong competitive Over $1B cloud Delivering value cloud company data platform position in a ARR and ~ $550M to customers large market FCF in FY25* and shareholders * Teradata forecasts for fiscal 20
Slide 23: Appendix
Appendix 23 ©2022 Teradata
Slide 24: GAAP to Non-GAAP Reconciliations and Additional Information
GAAP to Non-GAAP Reconciliations and Additional Information Use of Non-GAAP Measures 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-GA
Slide 25: GAAP to Non-GAAP Reconciliation for the three months ended June 30, 2022 and 2021
GAAP to Non-GAAP Reconciliation for the three months ended June 30, 2022 and 2021 2022 2021 Equity Other Equity Other % Change Compensation Special Compensation Special Non-GAAP Amounts in U.S. Dollars in Millions, except per share amounts. 2 1 3 1 GAAP Expense Items Non-GAAP GAAP Expense Items Non-
Slide 26: GAAP to Non-GAAP Reconciliation for the three months ended March 31, 2022 and 2021
GAAP to Non-GAAP Reconciliation for the three months ended March 31, 2022 and 2021 2022 2021 Equity Other Equity Other % Change Amounts in U.S. Dollars in Millions, except per share amounts. Compensation Special Compensation Special Non-GAAP 2 1 3 1 Amounts are unaudited. GAAP Expense Items Non-GAAP
Slide 27: GAAP to Non-GAAP Reconciliation for the three months ended December 31, 2021 and 2020
GAAP to Non-GAAP Reconciliation for the three months ended December 31, 2021 and 2020 2021 2020 Equity Other Equity Other Capitalized % Change Compensation Special Compensation Special Software Non-GAAP Amounts in U.S. Dollars in Millions, except per share amounts. 2 1 3 1 Amounts are unaudited. GAA
Slide 28: GAAP to Non-GAAP Reconciliation for the three months ended September 30, 2021 and 2020
GAAP to Non-GAAP Reconciliation for the three months ended September 30, 2021 and 2020 2021 2020 Equity Other Equity Other Capitalized % Change Compensation Special Compensation Special Software Non-GAAP Amounts in U.S. Dollars in Millions, except per share amounts. Amounts are unaudited. GAAP Expen
Slide 29: GAAP to Non-GAAP Reconciliation for the six months ended June 30, 2022 and 2021
GAAP to Non-GAAP Reconciliation for the six months ended June 30, 2022 and 2021 2022 2021 Amounts in U.S. Dollars in Millions, except per share amounts. Equity Other Equity Other % Change Amounts are unaudited. Compensation Special Compensation Special Non-GAAP GAAP Expense Items 2 Non-GAAP 1 GAAP E
Slide 30: Earnings Per Share
Earnings Per Share NOTES: 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 associa
Slide 31: Free cash flow reconciliation – June 30, 2022 and 2021
Free cash flow reconciliation – June 30, 2022 and 2021 NOTES: (1) 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'
Slide 32: Thank you.
Thank Thank you. you. ©2022 Teradata