Slide 1: Q3'24 Earnings Results
November 2024 Q3’24 Earnings Results Teradata Investor Relations © 2024 Teradata. All rights reserved.
Slide 2: Forward-looking statements and Non-GAAP Financial Measures
Forward-looking statements Non-GAAP Financial Measures This presentation and the accompanying discussion transformation program or restructuring and cost saving This presentation and the accompanying discussion contain forward-looking statements within the meaning initiatives, including from the 202
Slide 3: Teradata – at a glance
Teradata – at a glance Corporate purpose What we do How we do it We believe people thrive when We are the hybrid cloud platform We deliver harmonized data, empowered with trusted for Trusted AI. We drive value and Trusted AI, and faster innovation information. innovation at scale, making it faster f
Slide 4: Q3'24 Financials
Q3’24 Financials © 2024 Teradata. All rights reserved. 4
Slide 5: Teradata – by the numbers Q3'24
Teradata – by the numbers Q3’24 Public Cloud ARR Total ARR Recurring Revenue Total Revenue $570M $1.482B $372M $440M + 26% YoY - 3% YoY + 3% YoY 0% YoY + 24% YoY in CC - 4% YoY in CC + 5% YoY in CC + 2% YoY in CC Notes: Total annual recurring revenue (ARR) is defined as the annual value at a point i
Slide 6: Teradata – by the numbers Q3'24 (EPS and cash flow)
Teradata – by the numbers Q3’24 GAAP Diluted Earnings per Non-GAAP Diluted Share Earnings per Share Cash Flow from Operations Free Cash Flow $0.33 $0.69 $77M $69M + from $0.12 in Q3’23 + from $0.42 in Q3’23 + from $41M in Q3’23 + from $36M in Q3’23 NOTES: Non-GAAP diluted earnings per share and free
Slide 7: ARR by product
ARR by product 1,523 1,524 1,570 1,482 1,506 1,480 1,465 1,482 173 198 $1.482B 259 233 139 121 119 281 869 816 802 793 876 872 844 859 - 3% YoY - 4% YoY in CC 38% Cloud ARR as a % 528 525 542 570 388 414 454 357 of Total ARR Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Cloud Subscription Maint &
Slide 8: Cloud ARR & TTM Net Expansion Rate
Cloud ARR & TTM Net Expansion Rate 600 130% 590 580 570 560 $570M 550 540 530 520 510 500 124% 490 480 123% 123% 123% 470 460 450 440 121% 430 + 26% YoY 420 410 119% 120% 400 390 120% 380 + 24% YoY in CC 370 360 350 117% 340 330 120% 320 310 300 Net Expansion Rate 290 280 270 260 250 240 230 220 210
Slide 9: Revenue by type
Revenue by type 452 476 462 457 465 438 436 440 $440M 74 69 78 78 73 61 13 71 8 63 17 13 7 12 5 7 0% YoY 389 371 360 372 388 368 372 357 + 2% CC 85% Recurring Revenue as a % of Total Revenue Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Recurring Perpetual Consulting Q4’22 Q1’23 Q2’23 Q3’23 Q4’23
Slide 10: Non-GAAP gross margin
$300 78% Gross Margin ($M) Non-GAAP gross margin 75% $275 72% 72% 72% 72% Recurring 73% 71% 71% 71% $250 $225 68% Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Total Gross Margin % of Revenue $400 $15 33% 40% Gross Margin ($M) 29% 29% 64% Perpetual 65% $10 $300 62% 62% 62% 62% 15% 61% 20% and Othe
Slide 11: Non-GAAP operating expenses
Non-GAAP operating expenses SG&A R&D 175 40% 75 20% 73 150 32% 31% 71 30% 29% 29% 28% 30% 69 16% 125 26% 25% 67 15% 65 14% 14% 14% 14% 14% 100 63 13% 20% 61 75 59 145 134 141 133 131 134 114 109 57 62 64 67 68 63 66 61 63 50 10% 55 10% Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'22 Q1'23 Q2'2
Slide 12: Non-GAAP operating margin & earnings per share
Non-GAAP operating margin & earnings per share Non-GAAP Operating Margin Earnings per Share $150 23% 23% 2.46 22% $2.50 25% 19% 19% 20% $2.00 1.85 16% $100 14% 14% 15% $1.50 10% $1.00 0.84 $50 0.60 0.69 5% $0.50 0.42 0.33 0.12 $0 0% $0.00 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 LTM'23 LTM'24
Slide 13: Free cash flow & capital allocation
Free cash flow & capital allocation 328 323 307 297 Q3’24 Capital Allocation YTD’24 Capital Allocation Stock repurchase Stock repurchase $15M $186M 77 69 Approximately 0.5 million shares Approximately 4.9 million shares 41 Return of Q3’24 FCF = 22% 36 Return of YTD’24 FCF = 144% Target = at least 75
Slide 14: Select cash and debt balances
Select cash and debt balances Net Cash (Debt) $800 $ Millions Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 $600 $400 Cash and cash $ 348 $ 486 $ 337 $ 301 $ 348 equivalents $200 $ Millions $- Total debt $ (498) $ (499) $ (499) $ (492) $ (486) $(200) $(400) Finance lease $(600) $ (139) $ (129) $ (121) $ (110) $ (10
Slide 15: 2024 Financial Outlook
2024 Financial Outlook © 2024 Teradata. All rights reserved. 15
Slide 16: FY24 financial outlook
FY24 financial outlook FY24 Outlook Q4’24 Outlook Public cloud ARR Total ARR GAAP diluted EPS growth of 18% to 22% YoY in CC in the range of -2% to -4% YoY $0.09 to $0.13 in CC Recurring revenue Total revenue Non-GAAP diluted EPS in the range of flat to -2% YoY in the range of -2% to -4% YoY $0.40 t
Slide 17: FY24 key modeling assumptions
FY24 key modeling assumptions Non-GAAP Tax Rate WASO 25% 98 million Return of FCF Other Expense Target at least 75% Approximately $48 million © 2024 Teradata. All rights reserved. 17
Slide 18: Industry and ESG Recognition
Industry and ESG Recognition © 2024 Teradata. All rights reserved. 18
Slide 19: Industry recognition
Industry recognition Leader in Teradata recognized The Forrester Wave : for our vision and Enterprise Data execution in the Fabric, Q1 2024 Gartner® Magic Quadrant for Leader in The Cloud Database Forrester Wave : Management Systems Data Management for Analytics, Q1 2023 Teradata ranked #1 again in
Slide 20: Teradata wins BIG!
Teradata wins BIG! Teradata consistently garners industry recognition, securing top honors across the board for our innovative products and customer dedication. With accolades from Gartner Peer Insights, TrustRadius, G2, and Constellation Research, we're celebrated for our pioneering solutions in da
Slide 21: Teradata is a Customers' Choice
Teradata is a Customers’ Choice Teradata receives a 2024 Customers’ Choice for Cloud Database Management Systems in the Gartner® Peer Insights ‘Voice of the Customer’ report! Recognition is based on reviews and ratings from verified end- users, reflecting genuine satisfaction and positive experience
Slide 22: Teradata ranked #1 again in the Gartner Critical Capabilities report
Teradata ranked #1 again in the Gartner® Critical Capabilities report for Logical Data Warehouse and Traditional Data Warehouse† use cases We help organizations unleash the value of their data through: • the most advanced analytic capabilities • integrated AI/ML • robust mixed-workload management •
Slide 23: Teradata recognized in the Gartner Magic Quadrant
Teradata recognized for our vision and execution in the Gartner® Magic Quadrant for Cloud Database Management Systems We offer a bold vision for how trusted AI will impact business and transform enterprises amid the rapid evolution of AI and cloud technology. Gartner, Magic Quadrant for Cloud Datab
Slide 24: Teradata named a Leader in Enterprise Data Fabric
The Forrester Wave Enterprise Data Fabric, Q1 2024 Teradata named a Leader in Enterprise Data Fabric, recognized for: • “A clear, differentiated vision that focuses on intelligent processing, democratizing data, accelerating time to value, empowering users, agile data onboarding, and semantic know
Slide 25: Teradata named a Leader in Cloud Data Warehouses
The Forrester Wave : Cloud Data Warehouses, Q2 2023 Teradata named a Leader in Cloud Data Warehouses, recognized for: • “Exceptional analytics at scale and a strong vision [that] focuses on a strategy that includes AI/ML at scale, integrated data plane, data fabric, data mesh, semantic mapping, data
Slide 26: Teradata named a Leader in Data Management for Analytics
The Forrester Wave : Data Management for Analytics, Q1 2023 Teradata named a Leader in Data Management for Analytics, recognized for: • “Advanced DMA capabilities, including in-database analytics, distributed query processing, self-service, data integration, automation and workload management.” • “R
Slide 27: Teradata recognized as Exemplary in four ISG Research Buyers Guides
Teradata recognized as Exemplary in four ISG Research Buyers Guides: • Analytic Data Platforms Named a Leader in Product Experience and Capability • AI Platforms Named a Leader in Manageability • GenAI Platforms Named a Leader in Manageability • Machine Learning Operations Named a Leader in
Slide 28: Teradata is strongly committed to ESG
Teradata is strongly committed to ESG Accolades Recognition Affiliations © 2024 Teradata. All rights reserved. 28
Slide 29: Appendix
Appendix © 2024 Teradata. All rights reserved. 29
Slide 30: Impacts to ARR and Revenue
Impacts to ARR and Revenue ARR Q1 Q2 Q3 Q4 FY22 Q1 Q2 Q3 Q4 FY23 Q1 Q2 Q3 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 2024 Reported YoY Growth Rate 2% -3% -4% -1% -1% 6% 10% 11% 6% 6% -2% -4% -3% Positive/(Negative) on Reported YoY Growth Rate: FX -1% -4% -4% -3% -3% -1% 1% 2% 1% 1% -1% -1% 1%
Slide 31: 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-G
Slide 32: Three months ended September 30, 2024 and 2023
GAAP to Non-GAAP Reconciliation Three months ended September 30, 2024 and 2023 Amounts in U.S. Dollars in Millions, except per share amounts. Amounts are unaudited. NOTES: 1. While Teradata reports its results using generally accepted accounting principles in the U.S. (GAAP), certain non-GAAP financ
Slide 33: Three months ended June 30, 2024 and 2023
GAAP to Non-GAAP Reconciliation Three months ended June 30, 2024 and 2023 Amounts in U.S. Dollars in Millions, except per share amounts. Amounts are unaudited. NOTES: 1. While Teradata reports its results using generally accepted accounting principles in the U.S. (GAAP), certain non-GAAP financial m
Slide 34: Three months ended March 31, 2024 and 2023
GAAP to Non-GAAP Reconciliation Three months ended March 31, 2024 and 2023 Amounts in U.S. Dollars in Millions, except per share amounts. Amounts are unaudited. NOTES: 1. While Teradata reports its results using generally accepted accounting principles in the U.S. (GAAP), certain non-GAAP financial
Slide 35: Three months ended December 31, 2023 and 2022
GAAP to Non-GAAP Reconciliation Three months ended 2023 2022 Stock-based Other Stock-based Other % Change Compensation Special Compensation Special Non-GAAP 2 1 3 1 GAAP Expense Items Non-GAAP GAAP Expense Items Non-GAAP Yr/Yr December 31, Revenue Recurring Perpetual software licenses, hardware and
Slide 36: Three months ended September 30, 2023 and 2022
GAAP to Non-GAAP Reconciliation Three months ended 2023 2022 Stock-based Other Stock-based Other % Change Compensation Special Compensation Special Non-GAAP Items 2 1 Items 3 1 GAAP Expense Non-GAAP GAAP Expense Non-GAAP Yr/Yr September 30, Revenue Recurring Perpetual software licenses, hardware and
Slide 37: Three months ended June 30, 2023 and 2022
GAAP to Non-GAAP Reconciliation Three months ended Stock-based Compensation 2023 Other Special Stock-based Compensation 2022 Other Special % Change Non-GAAP June 30, 2023 2 1 3 GAAP Expense Items Non-GAAP GAAP Expense Items Non-GAAP 1 Yr/Yr Revenue Recurring $ 371 $ - $ - $ 371 $ 345 $ - $ - $ 345 8
Slide 38: Nine months ended September 30, 2024 and 2023
GAAP to Non-GAAP Reconciliation Nine months ended September 30, 2024 and 2023 Amounts in U.S. Dollars in Millions, except per share amounts. Amounts are unaudited. NOTES: 1. While Teradata reports its results using generally accepted accounting principles in the U.S. (GAAP), certain non-GAAP financi
Slide 39: Earnings per share
GAAP to Non-GAAP Reconciliation Earnings per share NOTES: 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 understand
Slide 40: Free cash flow reconciliation – September 30, 2024 and 2023
GAAP to Non-GAAP Reconciliation Free cash flow reconciliation – September 30, 2024 and 2023 NOTES: 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 GAAP in the United States and therefore, Teradata's definiti
Slide 41: Thank you
Thank you © 2024 Teradata. All rights reserved.
Slide 42: Teradata
teradata.