On November 6, 2023, Teradata Corp (TDC, Financial) released its third-quarter 2023 financial results, highlighting significant growth in key areas. The company's public cloud Annual Recurring Revenue (ARR) saw a substantial increase of 63%, reaching $454 million. Total ARR also experienced growth, rising by 11% to $1.524 billion.
Financial Highlights
Teradata Corp (TDC, Financial) reported a 9% increase in recurring revenue, amounting to $360 million. Total revenue for the third quarter was $438 million, marking a 5% increase. The company's GAAP diluted earnings per share were $0.12, while Non-GAAP diluted earnings per share stood at $0.42.
Teradata Corp (TDC, Financial) also reported cash from operations of $41 million and free cash flow of $36 million. The company repurchased shares worth $141 million in the third quarter, resulting in a year-to-date return of free cash flow of 161%.
“Our best-in-class cloud analytics and data platform for AI delivers harmonized data, trusted AI, and faster innovation for better decision-making,” said Steve McMillan, President and Chief Executive Officer of Teradata. “We are pleased with our financial results, execution across the organization, and with the innovations we’ve been able to deliver.”
Performance Analysis
The company's financial results reflect a consistent execution across the organization, with a solid set of financial results led by 63% growth in Cloud ARR and 10% growth in recurring revenue. The increase in public cloud ARR and total ARR indicates a strong demand for Teradata's cloud analytics and data platform.
The rise in recurring revenue and total revenue suggests a steady growth in the company's core business. The share repurchases reflect the company's commitment to returning capital to shareholders and its confidence in its future prospects.
Outlook
For the fourth quarter of 2023, Teradata Corp (TDC, Financial) expects GAAP diluted EPS to be in the range of ($0.10) to ($0.06) and Non-GAAP diluted EPS to be in the range of $0.50 to $0.54. The company also updated its full-year 2023 outlook, with GAAP diluted EPS expected to be in the range of $0.59 to $0.63 and Non-GAAP diluted EPS in the range of $2.01 to $2.05.
Explore the complete 8-K earnings release (here) from Teradata Corp for further details.
