Slide 1: Q1'22 Earnings Results
Q1’22 Earnings Results Teradata Investor Relations May 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 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
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 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 5: 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 6: Teradata - By the Numbers Q1'22
Teradata - By the Numbers Q1’22 $1.427 billion 2% year-over-year, 3% year-over-year in CC Total Annual Recurring Revenue (ARR) $209 million 69% year-over-year, 70% year-over-year in CC Public cloud ARR $386 million 4% year-over-year, 6% year-over-year in CC Recurring revenue $496 million 1% year-ove
Slide 7: Teradata - By the Numbers Q1'22
Teradata - By the Numbers Q1’22 $0.33 in Q1’22 from $0.47 in Q1’21 GAAP diluted earnings per share $0.65 in Q1’22 from $0.69 in Q1’21 Non-GAAP diluted earnings per share(1) $151 million in Q1’22 from $110 million in Q1’21 Cash flow from operations $150 million in Q1’22 from $105 million in Q1’21 Fre
Slide 8: ARR by Product
ARR by Product 1,492 1,425 1,404 1,426 1,437 1,427 1,348 1,304 392 409 343 490 456 426 520 533 $1.427B 898 876 +2% YoY 824 860 880 829 +3% YoY CC 748 717 139 148 202 209 54 81 106 124 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Cloud Subscription Maint & SW Upgrade Rights NOTES: Amounts in U.S.
Slide 9: Revenue by Type
Revenue by Type 1,893 1,922 416 364 80 491 491 491 496 107 460 475 457 454 111 96 98 84 90 92 109 100 26 $496M 23 17 19 34 18 25 25 1,370 1,478 372 376 364 386 +1% YoY in Q1’22 323 329 346 352 +4% CC in Q1’22 - 0 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 LTM'21 LTM'22 Recurring Perpetual Consu
Slide 10: Q1'22 Revenue by Region
Q1’22 Revenue by Region AMS EMEA APJ TOTAL TOTAL TOTAL $290M $129M $77M 10% YoY -12% YoY -5% YoY 11% CC -6% CC 0% CC RECURRING REVENUE RECURRING REVENUE RECURRING REVENUE AS A % OF AS A % OF AS A % OF TOTAL REVENUE TOTAL REVENUE TOTAL REVENUE 85% 69% 66% NOTES: Amounts in U.S. Dollars in Millions
Slide 11: Non-GAAP Gross Margin
$300 Non-GAAP Gross Margin 78% 79% Gross Margin ($M) 77% 78% 77% $200 76% 75% 75% 75% 75% 76% 74% Recurring 75% $100 74% 73% $0 72% Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Total Gross Margin % of Revenue $325 64% 65% $20 52% 60% 48% 47% Gross Margin ($M) 63% 47% 63% 39% 63% $15 35% 35% 61% 6
Slide 12: Non-GAAP Operating Expenses
Non-GAAP Operating Expenses SG&A R&D 80 160 75 31% 35% 29% 30% 30% 30% 150 17% 26% 27% 26% 70 16% 16% 25% 140 15% 65 14% 14% 14% 14% 130 15% 60 132 135 150 130 132 139 144 129 73 75 74 70 69 72 66 68 120 5% 55 12% Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4
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% 2.39 $2.40 120 19% 100 $1.80 1.74 15% 15% 14% 14% 80 1.16 60 $1.20 40 0.69 0.65 $0.60 0.47 0.33 20 0.10 0 $0.00 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 LTM'21 LTM'22 Q1'21 Q1'22 Operat
Slide 14: Free Cash Flow & Capital Allocation
Free Cash Flow & Capital Allocation Q1 2022 Capital Allocation 504 477 Stock repurchase 367 323 $250M Approximately 5.1 million shares 151 150 110 105 Return of Q1’22 FCF = 167% LTM'21 LTM'22 Q1'21 Q1'22 Target = At least 50% Cash from Operations Free Cash Flow return of FY22 FCF NOTES: Amounts in U
Slide 15: Select Cash and Debt Balances
Select Cash and Debt Balances Net Cash (Debt) $700 $ Millions Q1’21 Q2’21 Q3'21 Q4'21 Q1’22 Cash and cash $ 538 $ 683 $ 613 $ 592 $ 404 equivalents $ Millions $0 Long-term $ (449) $ (436) $ (424) $ (412) $ (399) debt Finance lease $ (176) $ (160) $ (139) $ (130) $ (132) liabilities ($700) Q1’21 Q2’2
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-single-digit to decline in the low- to decline in the mid- in the range of of approximately approximately 80% % range YoY as 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'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 19: 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 20: 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 FCFin FY25* and shareholders * Teradata forecasts for fiscal 202
Slide 21: Appendix
Appendix 21 ©2022 Teradata
Slide 22: 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 23: 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 24: 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 25: 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 26: GAAP to Non-GAAP Reconciliation for the three months ended June 30, 2021 and 2020
GAAP to Non-GAAP Reconciliation for the three months ended June 30, 2021 and 2020 2021 2020 Equity Other Equity Other Capitalized % Change Amounts in U.S. Dollars in Millions, except per share amounts. Compensation Special Compensation Special Software Non-GAAP Amounts are unaudited. GAAP Expense It
Slide 27: GAAP to Non-GAAP Reconciliation for the three months ended March 31, 2021 and 2020
GAAP to Non-GAAP Reconciliation for the three months ended March 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. Amounts are unaudited. GAAP Expense I
Slide 28: GAAP to Non-GAAP Reconciliation for the twelve months ended December 31, 2021 and 2020
GAAP to Non-GAAP Reconciliation for the twelve months ended December 31, 2021 and 2020 2021 2020 Equity Other Equity Other Capitalized % Change Amounts in U.S. Dollars in Millions, except per share amounts. Compensation Special Compensation Special Software Non-GAAP Amounts are unaudited. GAAP Expen
Slide 29: 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 30: Free cash flow reconciliation – March 31, 2022 and 2021
Free cash flow reconciliation – March 31, 2022 and 2021 For the (in millions) Three Months ended March 31 Outlook 2022 2021 2022 Cash provided by operating activities (GAAP) $151 $110 ~$425 Less capital expenditures for: Expenditures for property and equipment (1) (4) (~23) Additions to capitalized
Slide 31: Thank you.
Thank Thank you. you. ©2022 Teradata