Slide 1: Q1'23 Earnings Results
Q1’23 Earnings Results Teradata Investor Relations May 2023
Slide 2: Forward-Looking Statements Non-GAAP Financial Measures
Forward-Looking Statements Non-GAAP Financial Measures This presentation and the accompanying discussion foreign countries, including sanctions, foreign This presentation and the accompanying discussion contain forward-looking statements within the currency fluctuations, and/or acts of war; risks in
Slide 3: Teradata – At a Glance
Teradata – At a Glance Corporate Purpose We transform how businesses work and people live through the power of data We Are Industry Financial ESG The connected multi-cloud data Recognition Highlights Recognition platform for enterprise analytics (4) $388M Public Cloud business; 1 increase of 89% YoY
Slide 4: Long-Term Value Creation
We Have a Significant Opportunity to Increase Shareholder Value Capture Accelerate Growth in Scalable the Future Larger Market Opportunity Financial Model Best-of-breed technology Recurring Investing in growth revenue growth Differentiated Opportunities to Efficient lead in large markets operating m
Slide 5: Teradata Named a Leader in the Gartner Magic Quadrant
Teradata Named a Leader in the Gartner© Magic Quadrant™ for Cloud Database Management Systems Magic Quadrant 20th time Teradata has been named a Leader Price predictability and financial governance are key strengths. Teradata Vantage offers a high degree of robustness, workload management, and scala
Slide 6: Teradata Ranked Highest in 4 of 4 Use Cases
Teradata Ranked Highest in 4 of 4 Use Cases 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 Ronthal, Philip Russom, Henry Cook, Xingyu Gu 15 December
Slide 7: Teradata Ranked Highest in 4 of 4 Use Cases (cont'd.)
Teradata Ranked Highest in 4 of 4 Use Cases (cont’d.) 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 Ronthal, Philip Russom, Henry Cook, Xingyu Gu 1
Slide 8: Teradata Named a Leader in The Forrester Wave Q1 2023
Teradata Named a Leader in The Forrester Wave™: Data Management For Analytics, Q1 2023 Teradata is recognized for: “Advanced DMA capabilities, including in-database analytics, distributed query processing, self-service, data integration, automation and workload management.” “Resources to deliver
Slide 9: Teradata – By the Numbers Q1'23
Teradata – By the Numbers Q1’23 Public Cloud ARR Total ARR Recurring Revenue Total Revenue $388M $1.506B $389M $476M 89% YoY in CC 7% YoY in CC 4% YoY in CC 0% YoY in CC 86% YoY 6% YoY 1% YoY 4% YoY NOTES: Total annual recurring revenue (ARR) is defined as the annual value at a point in time of all
Slide 10: Teradata – By the Numbers Q1'23 (EPS and Cash Flow)
Teradata – By the Numbers Q1’23 GAAP Earnings Non-GAAP Diluted Cash Flow per Share Earnings per Share(1) from Operations Free Cash Flow(1) $0.39 $0.61 $109M $105M from $0.33 in Q1’22 from $0.65 in Q1’22 from $151M in Q1’22 from $150M in Q1’22 NOTES: (1) Non-GAAP diluted earnings per share and free c
Slide 11: ARR by Product
ARR by Product 1,506 1,492 1,482 1,426 1,437 1,427 1,390 1,374 281 259 392 $1.506B 409 343 323 293 426 859 844 898 876 833 802 860 880 7% YoY CC 6% YoY 357 388 209 234 279 139 148 202 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Cloud Subscription Maint & SW Upgrade Rights NOTES: Amounts in U.S.
Slide 12: Revenue by Type
Revenue by Type 491 496 475 476 $476M 460 452 84 430 417 98 92 74 90 78 17 26 77 13 19 72 17 18 8 14 0% CC in Q1’23 376 352 364 386 345 331 357 389 4% YoY in Q1’23 1- 82% Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Recurring Revenue as Recurring Consulting Perpetual/Other a % of Total Revenue Q2
Slide 13: Q1'23 Revenue by Region
Q1’23 Revenue by Region AMS EMEA APJ Total Total Total $292M $117M $67M 2% CC 1% CC 5% CC 1% YoY 9% YoY 13% YoY 88% Recurring Revenue as a % of Total Revenue 74% Recurring Revenue as a % of Total Revenue 69% Recurring Revenue as a % of Total Revenue NOTES: Amounts in U.S. Dollars in Millions. A part
Slide 14: Gross Margin
$300 78% 80% Non-GAAP Gross Margin Gross Margin ($M) 78% 76% 75% 75% $200 74% 76% 73% 73% 74% Recurring $100 71% 72% 70% $0 68% Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Total Gross Margin % of Revenue $325 65% 64% $20 60% Gross Margin ($M) 63% 47% 63% 63% 39% $15 61% 61% 63% 35% 35% 29% 29% 4
Slide 15: Non-GAAP Operating Expenses
Non-GAAP Operating Expenses SG&A R&D 75 160 73 71 150 32% 32% 32% 35% 30% 30% 69 17% 17% 27% 28% 140 26% 67 16% 25% 65 130 63 14% 14% 14% 120 61 14% 15% 13% 59 110 57 132 139 144 129 136 135 145 134 69 72 66 68 72 72 62 64 100 5% 55 12% Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'21 Q3'21 Q4'
Slide 16: 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% 2.39 $2.50 120 19% $2.00 100 15% 1.59 14% 80 13% 13% $1.50 1.16 60 $1.00 40 0.65 0.61 $0.50 0.36 0.39 0.33 20 0 $0.00 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 LTM'22 LTM'23 Q1'22 Q1'23
Slide 17: Free Cash Flow & Capital Allocation
Free Cash Flow & Capital Allocation Q1’23 Capital Allocation 504 477 Stock repurchase 377 358 $88M 151 150 Approximately 2.3 million shares 109 105 Return of Q1’23 FCF = 84% LTM'22 LTM'23 Q1'22 Q1'23 Target = At least 75% return of Cash from Operations Free Cash Flow FY23 FCF NOTES: Amounts in U.S.
Slide 18: Select Cash and Debt Balances
Select Cash and Debt Balances Net Cash (Debt) $700 $ Millions Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Cash and cash $ 404 $ 545 $ 506 $ 569 $ 551 equivalents $ Millions $0 Total debt $ (399) $ (497) $ (498) $ (498) $ (498) Finance lease $ (132) $ (118) $ (111) $ (121) $ (132) liabilities ($700) Q1'22 Q2'22 Q3
Slide 19: FY23 Financial Outlook
FY23 Financial Outlook Teradata re-affirms all outlook elements and narrows the Non-GAAP EPS range to be in the range of $1.92 to $2.04 versus the range of $1.90 to $2.06 previously provided. FY23 Outlook Public cloud ARR Total ARR Recurring revenue Total revenue Non-GAAP EPS Free cash flow growth o
Slide 20: Teradata's Long-Standing Commitment to ESG
Teradata’s Long-Standing Commitment to ESG is Clear and Unwavering Accolades Recognitions Affiliations 20 ©2023 Teradata
Slide 21: 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 in FY25* to customers large market and shareholders * Teradata f orecasts for fiscal 2025. Cloud ARR re
Slide 22: Appendix
Appendix 22 ©2023 Teradata
Slide 23: Impacts to ARR and Revenue
Impacts to ARR and Revenue ARR Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY21 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY22 Reported YoY Growth Rate 12% 9% 7% 5% 5% 2% -3% -4% -1% -1% Positive/(Negative) on Reported YoY Growth Rate: FX 3% 2% 1% -2% -2% -1% -4% -4% -3% -3% Russia 0% 0% 0% 0% 0% -4% -4% -4% -4% -4% Tota
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, Three Months Ended March 31, 2023 and 2022
GAAP to Non-GAAP Reconciliation for the three months ended March 31, 2023 and 2022 2023 2022 Stock-based Other Stock-based Other % Change Amounts in U.S. Dollars in Millions, except per share amounts. Compensation Special Compensation Special Non-GAAP 2 1 3 Amounts are unaudited. GAAP Expense Items
Slide 26: GAAP to Non-GAAP Reconciliation, Three Months Ended December 31, 2022 and 2021
GAAP to Non-GAAP Reconciliation for the three months ended December 31, 2022 and 2021 2022 2021 Stock-based Other Stock-based Other % Change Compensation Special Compensation Special Non-GAAP Amounts in U.S. Dollars in Millions, except per share amounts. GAAP Expense Items 2 Non-GAAP 1 GAAP Expense
Slide 27: GAAP to Non-GAAP Reconciliation, Three Months Ended September 30, 2022 and 2021
GAAP to Non-GAAP Reconciliation for the three months ended September 30, 2022 and 2021 2022 2021 Stock-based Other Stock-based 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 Exp
Slide 28: GAAP to Non-GAAP Reconciliation, 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. GAAP Expense Items 2 Non-GAAP 1 GAAP Expense Items 3 Non-GA
Slide 29: GAAP to Non-GAAP Reconciliation, 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 Amounts are unaudited. GAAP Expense Items Non-GAAP 1 GAA
Slide 30: GAAP to Non-GAAP Reconciliation, Twelve Months Ended December 31, 2022 and 2021
GAAP to Non-GAAP Reconciliation for the twelve months ended December 31, 2022 and 2021 2022 2021 Stock-based Other Stock-based 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
Slide 31: 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 32: Free cash flow reconciliation – March 31, 2023 and 2022
Free cash flow reconciliation – March 31, 2023 and 2022 NOTES: i. 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 33: Thank you.
Thank you. ©2023 Teradata