Slide 1: Q4'23 and 2023 Earnings Results
February 2024 Q4’23 and 2023 Earnings Results Teradata Investor Relations © 2024 Teradata. All rights reserved. Internal use only
Slide 2: Forward-looking statements Non-GAAP Financial Measures
Forward-looking statements Non-GAAP Financial Measures This presentation and the accompanying discussion or restructuring and cost saving initiatives; risks inherent This presentation and the accompanying discussion contain forward-looking statements within the meaning in operating in foreign countr
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 most complete cloud We deliver harmonized data, empowered with trusted analytics and data platform for AI trusted AI/ML, and faster innovation information for better decision-making Financial hi
Slide 4: 2023 Financial Highlights
2023 Financial Highlights © 2024 Teradata. All rights reserved. 4
Slide 5: Teradata – by the numbers Q4'23
Teradata – by the numbers Q4’23 Public Cloud ARR Total ARR Recurring Revenue Total Revenue $528M $1.570B $372M $457M + 48% YoY + 6% YoY + 4% YoY + 1% YoY + 46% YoY in CC + 5% YoY in CC + 4% YoY in CC + 1% YoY in CC Notes: Total annual recurring revenue (ARR) is defined as the annual value at a point
Slide 6: Teradata – by the numbers Q4'23 (EPS and cash flow)
Teradata – by the numbers Q4’23 Non-GAAP Diluted GAAP Earnings per Share Earnings per Share(1) Cash Flow from Operations Free Cash Flow(1) ($0.07) $0.56 $176M $168M = from ($0.07) in Q4’22 + from $0.35 in Q4’22 + from $129M in Q4’22 + from $120M in Q4’22 NOTES: (1) Non-GAAP diluted earnings per shar
Slide 7: Teradata – by the numbers FY23
Teradata – by the numbers FY23 Public Cloud ARR Total ARR Recurring Revenue Total Revenue $528M $1.570B $1.492B $1.833B + 48% YoY + 6% YoY + 5% YoY + 2% YoY + 46% YoY in CC + 5% YoY in CC + 7% YoY in CC + 4% YoY in CC Notes: Total annual recurring revenue (ARR) is defined as the annual value at a po
Slide 8: Teradata – by the numbers FY23 (EPS and cash flow)
Teradata – by the numbers FY23 Non-GAAP Diluted GAAP Earnings per Share Earnings per Share(1) Cash Flow from Operations Free Cash Flow(1) $0.61 $2.07 $375M $355M + from $0.31 in FY22 + from $1.64 in FY22 - from $419M in FY22 - from $403M in FY22 NOTES: (1) Non-GAAP diluted earnings per share and fre
Slide 9: ARR by product
ARR by product 1,570 1,506 1,523 1,524 1,482 1,427 1,390 173 1,374 198 $1.570B 259 233 281 343 323 293 869 876 872 844 859 + 6% YoY 802 876 833 + 5 % YoY in CC 34% Cloud ARR as a % 454 528 357 388 414 of Total ARR 209 234 279 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Cloud Subscription Maint &
Slide 10: Cloud ARR & TTM Net Expansion Rate
Cloud ARR & TTM Net Expansion Rate 530 130% 520 128% 510 500 $528M 490 480 470 460 450 124% 440 430 123% 420 410 400 121% 390 + 48% YoY 380 370 360 119% 120% 350 + 46% YoY in CC 340 330 320 117% 117% 117% 310 124% 300 290 Net Expansion Rate 280 270 260 250 240 230 220 210 200 209 234 279 357 388 414
Slide 11: Revenue by type
Revenue by type 1,833 1,795 311 296 $457M 45 65 496 476 452 462 457 84 430 438 417 74 78 73 26 78 13 71 77 72 13 12 17 7 + 1% YoY in Q4’23 8 14 1,419 1,492 + 1% CC in Q4’23 386 357 389 371 360 372 345 331 81% Recurring Revenue as a % of Total Revenue Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 F
Slide 12: Q4'23 revenue by region
Q4’23 revenue by region AMS EMEA APJ Total Total Total $265M $127M $65M + 3% YoY - 1% YoY - 3% YoY + 5% YoY in CC - 4% YoY in CC - 2% CC 87% Recurring Revenue as a % of Total Revenue 79% Recurring Revenue as a % of Total Revenue 65% Recurring Revenue as a % of Total Revenue Notes: Amounts in U.S. Do
Slide 13: FY23 revenue by region
FY23 revenue by region AMS EMEA APJ Total Total Total $1,089M $475M $269M + 5% YoY + 2% YoY - 8% YoY + 7% YoY in CC + 3% YoY in CC - 3% CC 87% Recurring Revenue as a % of Total Revenue 76% Recurring Revenue as a % of Total Revenue 68% Recurring Revenue as a % of Total Revenue Notes: Amounts in U.S.
Slide 14: Non-GAAP gross margin
$300 78% Gross Margin ($M) Non-GAAP gross margin 75% 75% $200 73% 73% 72% 72% 72% Recurring 73% 71% $100 $0 68% Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Total Gross Margin % of Revenue $400 $15 35% 33% 40% Gross Margin ($M) 29% 29% 64% Perpetual 65% 63% 63% $10 $300 62% 15% 61% 61% 13% 20% an
Slide 15: Non-GAAP operating expenses
Non-GAAP operating expenses SG&A R&D 160 40% 75 20% 73 150 32% 32% 32% 71 31% 30% 17% 17% 28% 29% 69 16% 140 30% 26% 67 15% 130 65 14% 14% 14% 63 13% 120 20% 61 110 59 129 136 135 145 134 141 133 131 57 68 72 72 62 64 67 68 63 100 10% 55 10% Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'22 Q2'2
Slide 16: Non-GAAP operating margin & earnings per share
Non-GAAP operating margin & earnings per share Non-GAAP Operating Margin Earnings per Share $150 23% 23% 25% $2.25 2.07 19% $1.75 1.64 20% 16% $100 14% 14% $1.25 13% 13% 15% $0.75 0.61 0.56 10% 0.31 0.35 $50 $0.25 5% -$0.25 (0.07) (0.07) $0 0% FY22 FY23 Q4'22 Q4'23 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'2
Slide 17: Free cash flow & capital allocation
Free cash flow & capital allocation 419 403 375 355 Q4’23 Capital Allocation FY23 Capital Allocation Stock repurchase Stock repurchase 129 120 176 168 $7M $308M Approximately 0.2 million shares Approximately 7.0 million shares Return of FY23 FCF = 87% FY'22 FY23 Q4'22 Q4'23 Target = at least 75% ret
Slide 18: Select cash and debt balances
Select cash and debt balances Net Cash (Debt) $800 $ Millions Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 $600 $400 Cash and cash $ 569 $ 551 $ 504 $ 348 $ 486 equivalents $200 $ Millions $- Total debt $ (498) $ (498) $ (498) $ (498) $ (499) $(200) $(400) Finance lease $(600) $ (121) $ (132) $ (140) $ (139) $ (12
Slide 19: 2024 Financial Outlook
2024 Financial Outlook © 2024 Teradata. All rights reserved. 19
Slide 20: FY24 financial outlook
FY24 financial outlook FY24 Outlook Q1’24 Outlook Public cloud ARR Total ARR GAAP diluted EPS YoY growth of 35% to 41% in CC YoY growth of 4% to 8% in CC $0.25 to $0.29 Recurring revenue Total revenue Non-GAAP diluted EPS YoY growth of 1% to 3% in CC YoY growth of flat to 2% in CC $0.53 to $0.57 Non
Slide 21: FY24 key modeling assumptions
FY24 key modeling assumptions Non-GAAP Tax Rate WASO 24.2% 99.5 million Return of FCF Other Expense Target at least 75% Approximately $45 million © 2024 Teradata. All rights reserved. 21
Slide 22: We have a significant opportunity to increase shareholder value
We have a significant opportunity to increase shareholder value Capture Accelerate growth in larger Scalable the future market opportunity financial model Best-of-breed technology Investing in growth Recurring revenue growth Differentiated Opportunities to lead in large Efficient operating models ma
Slide 23: Industry and ESG Recognition
Industry and ESG Recognition © 2024 Teradata. All rights reserved. 23
Slide 24: Teradata ranked #1 again in the Gartner Critical Capabilities report
Gartner® Critical Capabilities for Cloud Database Management Systems for Analytical Use Cases 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: • th
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! “Teradata has exceptional analytics at scale and a strong vision…Teradata’s strong vision focuses on a strategy that includes AI/ML at scale, integrated data plane, data fabric, data mesh, semantic
Slide 26: Teradata is recognized for:
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 27: Teradata is strongly committed to ESG
Teradata is strongly committed to ESG Accolades 100 Most Sustainable Companies Recognition Affiliations © 2024 Teradata. All rights reserved. 27
Slide 28: Appendix
Appendix © 2024 Teradata. All rights reserved. 28
Slide 29: Impacts to ARR and Revenue
Impacts to ARR and Revenue ARR Q1 Q2 Q3 Q4 FY21 Q1 Q2 Q3 Q4 FY22 Q1 Q2 Q3 Q4 FY23 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 2023 Reported YoY Growth Rate 12% 9% 7% 5% 5% 2% -3% -4% -1% -1% 6% 10% 11% 6% 6% Positive/(Negative) on Reported YoY Growth Rate: FX 3% 2% 1% -2% -2% -1% -4% -4%
Slide 30: 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 31: 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 GAAP Expense Items 2 Non-GAAP 1 GAAP Expense Items 3 Non-GAAP 1 Yr/Yr December 31, Revenue Recurring Perpetual software licenses, hardware and
Slide 32: 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 GAAP Expense Items 2 Non-GAAP 1 GAAP Expense Items 3 Non-GAAP 1 Yr/Yr September 30, Revenue Recurring Perpetual software licenses, hardware and
Slide 33: 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 34: Three months ended March 31, 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 March 31, 2023 2 1 3 1 GAAP Expense Items Non-GAAP GAAP Expense Items Non-GAAP Yr/Yr Revenue Recurring $ 389 $ - $ - $ 389 $ 386 $ - $ - $ 386
Slide 35: Twelve months ended December 31, 2023 and 2022
GAAP to Non-GAAP Reconciliation Twelve months ended December 31, 2023 2022 Stock-based Other Stock-based Other % Change Compensation Special Compensation Special Non-GAAP GAAP Expense Items 2 Non-GAAP 1 GAAP Expense Items 3 Non-GAAP 1 Yr/Yr 2023 and 2022 Revenue Recurring $ 1,492 $ - $ - $ 1,492 $ 1
Slide 36: Earnings per share
GAAP to Non-GAAP Reconciliation 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 underst
Slide 37: Free cash flow reconciliation – December 31, 2023 and 2022
GAAP to Non-GAAP Reconciliation Free cash flow reconciliation – December 31, 2023 and 2022 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 generally accepted accounting principles in the United States
Slide 38: Thank you
Thank you © 2024 Teradata. All rights reserved.
Slide 39: Teradata
teradata.