The company has spent over $ 808M for the acquisitions. Teradatas management uses free cash flow to assess the financial performance of the Company and believes it is useful for investors because it relates the operating cash flow of the Company to the capital that is spent to continue and improve business operations. The Companys GAAP effective tax rate for the three and twelve months ended December 31, 2020, includes a net $9 million income tax benefit resulting from the CARES Act of 2020, which allows US corporations a one-time opportunity to claim income tax refunds by allowing a 5-year net operating loss (NOL) carryback for taxable losses incurred in the tax year 2020. As for the outsourcing agreement, the contract will likely reside within IBM Global Services, the part of the organisation that is being spun out into a separately listed public entity known as Kyndryl. "Now Teradata has decided to sell the problem to IBM," added one of the insiders. What it does: Sumo Logic makes cloud-based data-analytics software that helps companies monitor and analyze how their employees and customers are accessing data and processes in the cloud. "2021 was an impressive year for Teradata. Yankees Option Franchy Cordero - MLB Trade Rumors Observers fear a haemorrhage of the knowledge required to keep the unique Teradata systems up and running. 10107 0 obj <>/Filter/FlateDecode/ID[]/Index[10087 45]/Info 10086 0 R/Length 96/Prev 250981/Root 10088 0 R/Size 10132/Type/XRef/W[1 2 1]>>stream Public cloud ARR is defined as the annual value at a point in time of all contracts related to public cloud implementations of Teradata Vantage and does not include ARR related to private or managed cloud implementations. Teradata Reports Fourth-Quarter and Full-Year 2021 Financial Results The Company believes this is a useful metric to investors as it demonstrates progress toward achieving our strategic objectives as outlined in the Form 10-K and Form 10-Q. Why it's an acquisition target: Teradata has. Total ARR is expected to grow at a mid-to-high-single-digit percentage year-over-year. Why it's an acquisition target: The space Sumo Logic operates in is competitive, so despite the company being in a good position to accelerate growth, it could benefit from joining forces with a larger player, RBC analysts wrote. hX[o+|LP}"/MbNi Los Angeles Kings Rumors: Team Will Have To Be Savvy With Salary Cap To ARR does not include managed services and third-party software. We delivered strong results, driving more than 90% growth in public cloud ARR and significantly growing new cloud customers. As described below, the Company believes that free cash flow is a useful non-GAAP measure for investors. February 2, 2021 He Couldn't Beat Teradata. On November 1, 2021, Teradata's Board of Directors authorized an additional $1 billion to be utilized to repurchase Teradata common stock under its open market share repurchase program. Why it's an acquisition target: Companies like Yelp, Ticketmaster, Stripe, and Github use Fastly's technology. "We wonder if Dropbox would be better off as part of a larger technology platform, given we believe content management could be more valuable once integrated and cross-sold with other collaboration solutions," RBC analysts wrote. What it does: Nutanix makes IT-infrastructure hardware and is currently transitioning from licensing to a software-subscription model. 2. "In other words, we believe larger scale debt-financed private-equity takeouts could be unlikely in the near-term," RBC analysts wrote. Learn more at Teradata.com. Working at Teradata: 269 Reviews | Indeed.com Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Christopher T. Lee And while there have been several large strategic acquisitions recently including Adobe's bid for Figma, which was the largest ever for a private-software company, and Salesforce's $27 billion deal for Slack Rishi Jaluria, an analyst at RBC, sees smaller-scale M&A as more realistic in the current economic environment. 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. However, they think the overall market for IT-service management will consolidate over time, and N-Able is one company that a private-equity firm could acquire as part of that trend. More software M&A is in the forecast as valuations and stock prices continue to drop and private companies aren't the only ones likely to get gobbled up. Teradata (NYSE: TDC) today announced its fourth-quarter and full-year 2021 financial results. The one-time tax benefit for this intra-entity asset transfer of $157 million was recorded as a deferred tax asset for GAAP reporting purposes in the first quarter of 2020 but was excluded from Non-GAAP results. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. Annual recurring revenue (ARR) is defined as the annual value at a point in time of all recurring contracts, including subscription, cloud, software upgrade rights, and maintenance. About Teradata Granted, one way of looking at the numbers is that Teradata missed on sales, pulling in about 1% less revenue than predicted. Teradatas management uses free cash flow to assess the financial performance of the Company and believes it is useful for investors because it relates the operating cash flow of the Company to the capital that is spent to continue and improve business operations. The Teradata logo is a trademark, and Teradata is a registered trademark of Teradata Corporation and/or its affiliates in the U.S. and worldwide. Public cloud ARR is expected to increase by approximately 80% year-over-year. Teradata has been caught between conflicting demands of investors impatient to see it execute a cloud-first strategy, and customers uncertain about how highly optimised concurrent queries will work in the cloud. Teradata has acquired 16 companies. As described below, the Company believes that free cash flow is a useful non-GAAP measure for investors. The software industry is expecting more M&A as software valuations continue to drop. 2021 was an impressive year for Teradata. This release contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934. Teradata Reports First Quarter 2021 Financial Results. Teradata Vantage is a legacy system used by many large organizations and corporates for storing data and providing it to end users. https://www.businesswire.com/news/home/20220204005518/en/, INVESTOR CONTACT That gives the company an interesting view on how quickly companies are transitioning to the cloud, which would make it a valuable acquisition for a large IT company, RBC analysts said. 2011. Read Full Review 5.0 Feb 2, 2023 Review Source: Product: Teradata Vantage Perspective by experience. Now there are several other companies that are likely takeover targets for either a tech giant or a private-equity firm, RBC analysts said in a recent note to clients. Teradata is the connected multi-cloud data platform for enterprise analytics, solving data challenges from start to scale. "If you don't give them something that's at least as good with a low disruption to make the transition, then just forget it," our source said. Reaffirms Fiscal 2021 Financial Outlook. For the twelve months ended December 31, the Companys non-GAAP effective tax rate was 22.4% for 2021 and 23.2% for 2020. In particular, free cash flow indicates the amount of cash generated after capital expenditures for, among other things, investment in the Companys existing businesses, strategic acquisitions, strengthening the Companys balance sheet, repurchase of the Companys stock and repayment of the Companys debt obligations, if any. Free cash flow does not represent the residual cash flow available for discretionary expenditures since there may be other nondiscretionary expenditures that are not deducted from the measure. We delivered strong results, driving more than 90% growth in public cloud ARR and significantly growing new cloud customers. Why it's an acquisition target: Smartsheet is operating in a competitive space, as the number of collaborative work-management tools has skyrocketed in recent years. RBC analysts said joining forces with a larger cloud company would help it grow faster than it's able to alone and could make it a real competitor to MongoDB. The Company believes such non-GAAP financial measures (1) provide useful information to investors regarding the underlying business trends and performance of the Companys ongoing operations, (2) are useful for period-over-period comparisons of such operations and results, that may be more easily compared to peer companies and allow investors a view of the Companys operating results excluding stock-based compensation expense and special items, (3) provide useful information to management and investors regarding present and future business trends, and (4) provide consistency and comparability with past reports and projections of future results. hb```&V[ eah```t``s#TN'lF[z8Y|0m Reconciling items include stock-based compensation, capitalized software, amortization of acquisition-related intangible assets and acquisition, integration and reorganization-related items. The global data warehouse stalwart made its name with tightly integrated software and hardware systems sold as analytics "appliances", but in the last two years has shifted focus to its cloud platform following fierce competition from so-called cloud-native rivals including Snowflake, AWS, Microsoft, and Google. Our management internally uses supplemental non-GAAP financial measures, such as gross profit, operating income, net income, and EPS, excluding certain items, to understand, manage and evaluate our business and support operating decisions on a regular basis. Acquisitions by Teradata | Tracxn Non-GAAP diluted EPS is expected to be in the range of $0.63 to $0.67. To receive notifications via email, enter your email address and select at least one subscription below. What it does: Fastly makes content-delivery network, or CDN, software, which helps websites and applications load faster. Some potential acquirers could be Google or Cisco, RBC analysts wrote. While many companies were making public announcements declaring their adoption of cloud-native data warehouse systems, they were keeping on-prem systems such as Teradata up and running for the time being. This is an increase from the range of $1.60 to $1.70, which was previously communicated at Teradatas Investor Day in September 2021. Making the world smarter, happier, and richer. "We still believe edge computing is a real opportunity and that FSLY has good technology, which could be attractive to an acquirer," RBC analysts wrote. 2023 Phase one of GMH, in Gulf of Guinea's Punta Europa, started delivering gas in February 2021. Teradata ( TDC 0.05%) stock surged in morning trading today, up 24.2% as of 10:50 a.m. Adjustments to reconcile net income to net cash provided by operating activities: Effect of exchange rate changes on cash and cash equivalents, Public cloud ARR of $202 million, an increase of 91% as reported from the prior year period, Fourth quarter recurring revenue of $364 million, an increase of 5% as reported from the prior year period, Recurring revenue was 77% of total revenue in the fourth quarter, up from 70% the prior year period, Fourth quarter GAAP earnings per diluted share of $0.29, above the previously provided outlook range of $(0.05) to $(0.01), Fourth quarter Non-GAAP earnings per diluted share of $0.57, above the previously provided outlook range of $0.25 to $0.29, Fourth quarter cash from operations of $95 million and free cash flow of $85 million, Intends to enter into a $250 million accelerated share repurchase program in the first quarter, Public cloud ARR increased to $202 million from $106 million, an increase of 91% as reported and 92% in constant currency, ARR increased to $1.492 billion from $1.425 billion, an increase of 5% as reported and 7% in constant currency, Recurring revenue was $364 million versus $346 million, an increase of 5% as reported and 6% in constant currency, Total revenue was $475 million versus $491 million, a decrease of 3% as reported and 2% in constant currency, Non-GAAP gross margin was 63.2% versus 59.3%, GAAP operating income was $50 million versus $13 million, Non-GAAP operating income was $90 million versus $67 million, GAAP diluted EPS was $0.29 versus $0.04 per share, Non-GAAP diluted EPS was $0.57 versus $0.38, Cash flow from operations was $95 million compared to $56 million, Free cash flow was $85 million compared to $45 million, Recurring revenue was $1.464 billion from $1.309 billion, an increase of 12% as reported and 11% in constant currency, Total revenue was $1.917 billion from $1.836 billion, an increase of 4% as reported and 3% in constant currency, Non-GAAP gross margin was 63.4% versus 58.4%, GAAP operating income was $231 million versus $16 million, Non-GAAP operating income was $393 million versus $230 million, Non-GAAP diluted EPS was $2.43 versus $1.31, Cash flow from operations was $463 million versus $267 million, Free cash flow was $432 million versus $216 million. Continuing the good news, CEO Steve McMillan predicted that "the strength of our performance in 2021 is matched by our conviction to continue accelerating in 2022." Multiple sources told us Teradata's customer service field support team, which has shrunk in recent years, were mostly given their marching orders. Who could acquire it: Another cloud or software company. ~P-Y2$}+Z]\r8e-k55:Vq^s>]=-\F4fc YX7q,FZtJ;ZhFjaZ(#l. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Teradata now has a total of approximately $1.3 billion authorized for share repurchases under this program. The company started as a file-sharing service and has since added capabilities like document collaboration and e-signatures. Cost basis and return based on previous market day close. "We could see a PE sponsor taking the opportunity to find more low-hanging fruit in the model and finding further margin-expansion opportunities," RBC analysts wrote. Why it's an acquisition target: In 2020, SolarWinds faced a cyberattack that spread to its clients and wreaked havoc on the company. Late last week, IBM confirmed the country managers who will run Kyndryl when it launches later this year. Free cash flow does not have a uniform definition under GAAP and, therefore, Teradatas definition may differ from other companies definitions of this measure. That's why RBC analysts think it would be a target for a private-equity firm to acquire. 858-485-2523 office This is an increase from the range of $1.60 to $1.70, which was previously communicated at Teradatas Investor Day in September 2021. We continue to demonstrate our commitment to deliver shareholder value through disciplined capital allocation, including our intention to enter into a $250 million accelerated share repurchase program in the first quarter, enabled by our strong balance sheet and projections of cash flow generation., Fourth-Quarter 2021 Financial Highlights Compared to Fourth-Quarter 2020, Full-Year 2021 Financial Highlights Compared to Full Year 2020. They're both ruinously complicated, but there is no crossover at all," one source said. Teradata is the connected multi-cloud data platform for enterprise analytics company. View source version on businesswire.com: The company's growth has stagnated in recent years due to competition from players like Dynatrace and Datadog, and its customer count is down. The organization is led by an ancient legacy PMO that needs . MEDIA CONTACT Including the income tax effect assists investors in understanding the tax provision associated with those adjustments and the effective tax rate related to the underlying business and performance of the Companys ongoing operations. The Teradata logo is a trademark, and Teradata is a registered trademark of Teradata Corporation and/or its affiliates in the U.S. and worldwide. The business will be based around six units: cloud, applications, data and AI; security and resiliency; core enterprise and zCloud; network and edge; and digital workplace. Support for Teradata's American hardware customers was transferred to IBM's mainframe hardware support teams on 1 July. A relatively small bunch were retained after some customers complained, said one insider, but even they are now expected to leave the organisation at the end of this month. GAAP profits for the quarter were only $0.29 per share -- not $0.57. Teradata Highlights its New Strategy and Plan to Deliver Sustainable [email protected]. Only Teradata gives you the flexibility to handle the massive and mixed data workloads of the future, today making your data easier to consume everywhere, with no added risk. And just last month, Adobe executives announced the company is acquiring the beloved design startup Figma for $20 billion. MEDIA CONTACT Total ARR is expected to grow at a mid-to-high-single-digit percentage year-over-year. Rich Smith has no position in any of the stocks mentioned. In a statement to The Register, the $1.8bn turnover [PDF] company said: "These agreements are always confidential, so all we can say in response to your questions is: Teradata has always been a customer-centric organization and that perspective is a key consideration for all business decisions. Why it's an acquisition target: Jana Partners, a group of activist investors, is targeting New Relic and preparing to explore a potential sale to private equity, Reuters reported in July. Cloud ARR represents public cloud ARR, which is defined as the annual value at a point in time of all contracts related to public cloud implementations of Teradata Vantage and does not include ARR related to private or managed cloud implementations. -- Teradata (NYSE: TDC ) today announced its fourth-quarter and full- year 2021 financial results. "We still believe ZM has best-in-class video conferencing technology, the potential to become a larger platform, and an attractive financial profile," RBC analysts wrote. The Motley Fool has a disclosure policy. *Average returns of all recommendations since inception. Free cash flow does not have a uniform definition under GAAP and, therefore, Teradatas definition may differ from other companies definitions of this measure. "While CEO and founder Eric Yuan may be hesitant to sell, we still think the right acquirer may make sense given the history with CSCO's acquisition of Webex.". The impact of currency is determined by calculating the prior period results using the current-year monthly average currency rates. Teradata filed a carry back of its 2020 NOL to claim a refund for taxes it paid in 2015, which created a one-time income tax benefit for GAAP reporting purposes for the difference between the 2015 federal statutory tax rate of 35% and the current federal statutory rate of 21%. More than $1 billion in Cloud ARR, representing over 50% in total ARR in fiscal 2025, Approximately $550 million free cash flow in fiscal 2025, Low 20% non-GAAP operating margin in fiscal 2025, Implementing a returns-based capital return program of at least 50% of free cash flow annually through fiscal 2025, At least 70% growth in Cloud ARR year-over-year, Non-GAAP diluted net earnings per share in the range of $1.60 to $1.70, Free cash flow of approximately $400 million, Public cloud ARR is expected to increase by at least 100% year-over-year, Total ARR is expected to grow at a mid-to-high-single-digit percentage year-over-year. Forward-looking statements generally relate to opinions, beliefs, and projections of expected future financial and operating performance, business trends, and market conditions, among other things. Cloud-native warehouses get around the concurrency problem by spinning up new warehouse instances, but that can leave users dealing with the cost of unplanned demand on cloud services. Per Figure 2 TDC's TTM non-GAAP net income of $154 million is well above GAAP net income of $14 million.. Cash provided by operating activities (GAAP). CONDENSED CONSOLIDATED STATEMENTS OF INCOME, (in millions, except per share amounts - unaudited), CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS. Teradata Highlights its New Strategy and Plan to Deliver Sustainable For the first quarter of fiscal 2021, Teradata currently expects to exceed its guidance provided on February 4, 2021 for GAAP earnings per diluted share, Non-GAAP earnings per diluted share, and public . Given that, it would make sense for a larger company to look into acquiring Zoom. The attack went undetected for months, according to a Reuters report. Note to Investors year 2021 financial results. Overall, Teradata expects public cloud ARR to increase by at least 165% year-over-year in Q1 2021 and expects to at least double ARR year-over-year for 2021. Teradata has made 12 acquisitions 0. May 6, 2021. The Companys GAAP effective tax rate for the three and twelve months ended December 31, 2020, includes a net $9 million income tax benefit resulting from the CARES Act of 2020, which allows US corporations a one-time opportunity to claim income tax refunds by allowing a 5-year net operating loss (NOL) carryback for taxable losses incurred in the tax year 2020. Big Blue itself responded to us by saying we needed to ask Teradata for comment. UPDATE: Needham & Company Upgrades Teradata (TDC) to Buy I am proud of our team's steadfast focus on execution and operational excellence that enabled us to meet or beat every element of our ET, after the data management specialist reported fourth-quarter 2021 earnings last night -- and beat analyst predictions with a stick. I am proud of our teams steadfast focus on execution and operational excellence that enabled us to meet or beat every element of our annual outlook, said Steve McMillan, President and CEO, Teradata. Teradata reports its results in accordance with GAAP. What it does: Splunk makes software for IT professionals that sift through and analyze enormous amounts of performance and system data in their networks. "We think Splunk is too good a business/asset to trade where it is and believe the work undergone from a product and go-to-market perspective, along with a new CEO should position the company as a good investment going forward with good execution," RBC analysts wrote. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially, including those relating to: the global economic environment and business conditions in general or on the ability of our suppliers to meet their commitments to us, or the timing of purchases by our current and potential customers; the rapidly changing and intensely competitive nature of the information technology industry and the data analytics business; fluctuations in our operating results; our ability to execute and realize the anticipated benefits of our business transformation program or other restructuring and cost saving initiatives; risks inherent in operating in foreign countries, including foreign currency fluctuations; risks associated with the ongoing and uncertain impact of the COVID-19 pandemic on our business, financial condition and operating results and on our customers and suppliers; risks associated with data privacy, cyberattacks and maintaining secure and effective products for our customers, as well as, internal information technology and control systems; the timely and successful development, production or acquisition, availability and/or market acceptance of new and existing products, product features and services; tax rates; turnover of our workforce and the ability to attract and retain skilled employees; protecting our intellectual property; availability and successful execution of new alliance and acquisition opportunities; subscription arrangements that may be cancelled or fail to be renewed; the impact on our business and financial reporting from changes in accounting rules; and other factors described from time to time in Teradatas filings with the U.S. Securities and Exchange Commission, including its most recent annual report on Form 10-K, and subsequent quarterly reports on Forms 10-Q or current reports on Forms 8-K, as well as Teradatas annual report to stockholders. Annual recurring revenue (ARR) is defined as the annual value at a point in time of all recurring contracts, including subscription, cloud, software upgrade rights, and maintenance. 858-485-3029 office You must click the link in the email to activate your subscription. Learn More. Why Teradata Stock Just Rocketed 24% | The Motley Fool What it does: Duck Creek Technologies makes cloud software for property-and-casualty-insurance companies. ARR does not include managed services and third-party software. Forward-looking statements generally relate to opinions, beliefs, and projections of expected future financial and operating performance, business trends, liquidity, and market conditions, among other things. Our non-GAAP measures are not meant to be considered in isolation to, as substitutes for, or superior to, results determined in accordance with GAAP, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP.
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