Slide 1: Q4'22 Earnings Results
Q4’22 Earnings Results Teradata Investor Relations February 2023 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: 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 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 - By the Numbers Q4'22
Teradata - By the Numbers Q4’22 $357 million 81% year-over-year in CC, 77% year-over-year Public cloud ARR $1.482 billion 2% year-over-year in CC, 1% year-over-year Total ARR $357 million 3% year-over-year in CC, 2% year-over-year Recurring revenue $452 million 0% year-over-year in CC, 5% year-over-
Slide 9: Teradata - By the Numbers Q4'22
Teradata - By the Numbers Q4’22 ($0.07) in Q4’22 from $0.29 in Q4’21 GAAP earnings per share $0.35 in Q4’22 from $0.57 in Q4’21 Non-GAAP diluted earnings per share(1) $129 million in Q4’22 from $95 million in Q4’21 Cash flow from operations $120 million in Q4’22 from $85 million in Q4’21 Free cash f
Slide 10: Teradata - By the Numbers FY22
Teradata - By the Numbers FY22 $357 million 81% year-over-year in CC, 77% year-over-year Public cloud ARR $1.482 billion 2% year-over-year in CC, 1% year-over-year Total ARR $1.419 billion 1% year-over-year in CC, 3% year-over-year Recurring revenue $1.795 billion 2% year-over-year in CC, 6% year-ov
Slide 11: Teradata - By the Numbers FY22
Teradata - By the Numbers FY22 $0.31 in FY22 from $1.30 in FY21 GAAP diluted earnings per share $1.64 in FY22 from $2.43 in FY21 Non-GAAP diluted earnings per share(1) $419 million in FY22 from $463 million in FY21 Cash flow from operations $403 million in FY22 from $432 million in FY21 Free cash fl
Slide 12: Impacts to Total ARR and Revenue
Impacts to Total ARR and Revenue Total 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%
Slide 13: ARR by Product
ARR by Product 1,492 1,482 1,426 1,437 1,427 1,404 1,390 1,374 281 392 409 343 323 293 456 426 $1.482B 802 844 898 876 833 2% YoY CC 824 860 880 -1% YoY 357 202 209 234 279 124 139 148 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Cloud Subscription Maint & SW Upgrade Rights Q1’21 Q2’21 Q3’21 Q4’2
Slide 14: Revenue by Type
Revenue by Type 1,917 1,795 376 311 77 $452M 491 491 496 65 460 475 452 84 430 417 96 98 92 90 26 78 23 17 19 77 72 18 8 17 0% CC in Q4’22 14 -5% YoY in Q4’22 1,464 1,419 372 376 352 364 386 345 357 331 RECURRING REVENUE AS A % OF TOTAL REVENUE - 0 79% Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'
Slide 15: Q4'22 Revenue by Region
Q4’22 Revenue by Region AMS EMEA APJ TOTAL TOTAL TOTAL $257M $128M $67M 1% CC 3% CC -6% CC 0% YoY -5% YoY -18% YoY RECURRING REVENUE RECURRING REVENUE RECURRING REVENUE AS A % OF AS A % OF AS A % OF TOTAL REVENUE TOTAL REVENUE TOTAL REVENUE 86% 70% 70% NOTES: Amounts in U.S. Dollars in Millions.
Slide 16: FY22 Revenue by Region
FY22 Revenue by Region AMS EMEA APJ TOTAL TOTAL TOTAL $1,038M $465M $292M 0% CC -7% CC -2% CC -1% YoY -14% YoY -12% YoY 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 Milli
Slide 17: Non-GAAP Gross Margin
$300 Non-GAAP Gross Margin 78% 80% Gross Margin ($M) 77% 78% 76% 75% $200 74% 76% 73% 73% 74% Recurring $100 71% 72% 70% $0 68% Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Total Gross Margin % of Revenue $325 64% 65% $20 52% 60% 47% Gross Margin ($M) 63% 63% 63% $15 39% 61% 61% 63% 35% 35% 29% 2
Slide 18: 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% 26% 27% 26% 67 140 16% 25% 65 130 63 14% 14% 120 61 14% 14% 14% 15% 59 110 57 130 132 139 144 129 136 135 145 70 69 72 66 68 72 72 62 100 5% 55 12% Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'21 Q2'21 Q3'
Slide 19: 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% 2.43 120 19% $2.15 100 1.64 15% 14% $1.55 80 13% 13% 1.30 60 $0.95 0.57 40 0.31 0.29 0.35 $0.35 20 0 -$0.25 (0.07) Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 FY21 FY22 Q4'21 Q4'22 Operati
Slide 20: Free Cash Flow & Capital Allocation
Free Cash Flow & Capital Allocation FY22 Capital Allocation 463 Q4’22 Capital Allocation 432 419 403 Stock repurchase Stock repurchase $387M $39M Approximately 9.4 million shares 129 120 Approximately 1.2 95 85 million shares Return of FY22 FCF = 96% FY21 FY22 Q4'21 Q4'22 Target = At least 50% Cash
Slide 21: Select Cash and Debt Balances
Select Cash and Debt Balances Net Cash (Debt) $700 $ Millions Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Cash and cash $ 592 $ 404 $ 545 $ 506 $ 569 equivalents $ Millions $0 Total debt $ (412) $ (399) $ (497) $ (498) $ (498) Finance lease $ (130) $ (132) $ (118) $ (111) $ (121) liabilities ($700) Q4'21 Q1'22 Q2
Slide 22: FY23 Financial Outlook & Key Modeling Assumptions
FY23 Financial Outlook & Key Modeling Assumptions FY23 Outlook Public Cloud ARR Total ARR growth of Recurring Revenue Total Revenue Non-GAAP Diluted EPS Free Cash Flow growth of 53% to 57% 6% to 8% YoY growth of 4% to 7% growth of 1% to 4% in the range of of $320 to $360 million YoY YoY YoY $1.90 to
Slide 23: Teradata's long-standing commitment to ESG is clear and unwavering
Teradata’s long-standing commitment to ESG is clear and unwavering Accolades Recognitions Affiliations 23 ©2022 ©2023 Teradata
Slide 24: 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 25: 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 forecasts for fiscal 2025. Cloud ARR re
Slide 26: Appendix
Appendix 26 ©2022 ©2023 Teradata
Slide 27: 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 28: 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. 2 1 GAAP Expense Items Non-GAAP GAAP Expense
Slide 29: 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. GAAP Expense Items 2 Non-GAAP 1 GAAP Expense
Slide 30: 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. 2 GAAP Expense Items Non-GAAP 1 GAAP Expense Items 3 Non-GA
Slide 31: 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 Amounts are unaudited. GAAP Expense Items 2 Non-GAAP 1 GAA
Slide 32: 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 Amounts are unaudited. Non-GAAP 1 3 GAAP E
Slide 33: 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 34: Free cash flow reconciliation – December 31, 2022 and 2021
Free cash flow reconciliation – December 31, 2022 and 2021 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 (GAAP) and therefore, Teradata'
Slide 35: Thank you.
Thank you. Thank you. ©2022 Teradata