We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Teradata (TDC) Q1 Earnings Beat Estimates, Revenues Fall Y/Y
Read MoreHide Full Article
Teradata (TDC - Free Report) reported first-quarter 2024 non-GAAP earnings of 57 cents per share, which beat the Zacks Consensus Estimate by 1.79%. The bottom line fell 6.6% year over year.
Revenues of $465 million surpassed the Zacks Consensus Estimate by 2.07%. The figure decreased 2.3% year over year on a reported basis and 1% on a constant-currency (cc) basis.
Total annual recurring revenues (“ARR”) at the first-quarter end decreased 2% year over year to $1.48 billion. The figure decreased 1% at cc.
Public cloud ARR surged 35% on a reported basis and 36% at cc year over year to $525 million. The cloud net expansion rate was 123%.
Recurring revenues (contributing 83% to revenues) decreased 0.3% year over year on a reported basis (increased 4% at cc) to $388 million, surpassing the Zacks Consensus Estimate by 6.29%.
Perpetual software license and hardware revenues (1.7% of revenues) were down 38.5% year over year (down 2% at cc) to $8 million, beating the Zacks Consensus Estimate by 21.75%.
Consulting services’ revenues (15% of revenues) dropped 6.8% year over year (down 4% at cc) to $69 million, beating the Zacks Consensus Estimate by 1.13%.
Revenues from the Americas decreased 5.1% year over year on a reported basis (increased 5% at cc) to $372 million. EMEA revenues increased 6.8% year over year (down 4% at cc) to $125 million.
Revenues from the APJ region were down 6% year over year (down 2% at cc) to $63 million.
Operating Details
The gross margin on a non-GAAP basis was 62.2%, contracting 210 basis points (bps) year over year.
Selling, general & administrative (SG&A) expenses increased 5.2% year over year to $161 million. Research & development (R&D) expenses were $75 million, up 7.1% year over year.
As a percentage of revenues, SG&A contracted 250 bps year over year to 34.6%, whereas R&D contracted 140 bps to 16.1%.
The non-GAAP operating margin was 19.1%, down 350 bps year over year.
Balance Sheet
As of Mar 31, 2024, Teradata had cash and cash equivalents of $337 million compared with $486 million as of Dec 31, 2023.
Long-term debt as of Mar 31, 2024, was $474 million compared with $499 million as of Dec 31, 2023.
In the first quarter, Teradata generated $27 million in cash from operating activities compared with the previous quarter’s $176 million.
The company generated a free cash flow of $21 million in the reported quarter.
Guidance
For second-quarter 2024, non-GAAP earnings are expected to be between 46 and 50 cents per share. The Zacks Consensus Estimate for earnings is pegged at 49 cents per share, indicating 2.08% year-over-year growth.
For 2024, TDC expects non-GAAP earnings between $2.15 and $2.31 per share. The Zacks Consensus Estimate for earnings is pegged at $2.22, suggesting 7.25% year-over-year growth.
Public cloud ARR growth is projected between 35% and 41% on a year-over-year basis.
Total ARR is expected to exhibit growth of 4-8% from the 2023 level.
Teradata expects recurring revenues to increase 1-3% year over year.
Teradata expects total revenues to be up 0-2% from the year-ago reported figure. The consensus mark for 2023 revenues is pegged at $1.83 billion.
Moreover, cash flow from operations is expected to be between $360 million and $400 million. Free cash flow is anticipated to be in the $340-$380 million range.
Zacks Rank & Stocks to Consider
Currently, Teradata carries a Zacks Rank #2 (Buy).
Shares of Teradata have lost 24.7% on a year-to-date basis, underperforming the Zacks Computer and Technology sector’s return of 12.2%.
Image: Bigstock
Teradata (TDC) Q1 Earnings Beat Estimates, Revenues Fall Y/Y
Teradata (TDC - Free Report) reported first-quarter 2024 non-GAAP earnings of 57 cents per share, which beat the Zacks Consensus Estimate by 1.79%. The bottom line fell 6.6% year over year.
Revenues of $465 million surpassed the Zacks Consensus Estimate by 2.07%. The figure decreased 2.3% year over year on a reported basis and 1% on a constant-currency (cc) basis.
Total annual recurring revenues (“ARR”) at the first-quarter end decreased 2% year over year to $1.48 billion. The figure decreased 1% at cc.
Public cloud ARR surged 35% on a reported basis and 36% at cc year over year to $525 million. The cloud net expansion rate was 123%.
Teradyne, Inc. Price, Consensus and EPS Surprise
Teradyne, Inc. price-consensus-eps-surprise-chart | Teradyne, Inc. Quote
Top Line in Detail
Recurring revenues (contributing 83% to revenues) decreased 0.3% year over year on a reported basis (increased 4% at cc) to $388 million, surpassing the Zacks Consensus Estimate by 6.29%.
Perpetual software license and hardware revenues (1.7% of revenues) were down 38.5% year over year (down 2% at cc) to $8 million, beating the Zacks Consensus Estimate by 21.75%.
Consulting services’ revenues (15% of revenues) dropped 6.8% year over year (down 4% at cc) to $69 million, beating the Zacks Consensus Estimate by 1.13%.
Revenues from the Americas decreased 5.1% year over year on a reported basis (increased 5% at cc) to $372 million. EMEA revenues increased 6.8% year over year (down 4% at cc) to $125 million.
Revenues from the APJ region were down 6% year over year (down 2% at cc) to $63 million.
Operating Details
The gross margin on a non-GAAP basis was 62.2%, contracting 210 basis points (bps) year over year.
Selling, general & administrative (SG&A) expenses increased 5.2% year over year to $161 million. Research & development (R&D) expenses were $75 million, up 7.1% year over year.
As a percentage of revenues, SG&A contracted 250 bps year over year to 34.6%, whereas R&D contracted 140 bps to 16.1%.
The non-GAAP operating margin was 19.1%, down 350 bps year over year.
Balance Sheet
As of Mar 31, 2024, Teradata had cash and cash equivalents of $337 million compared with $486 million as of Dec 31, 2023.
Long-term debt as of Mar 31, 2024, was $474 million compared with $499 million as of Dec 31, 2023.
In the first quarter, Teradata generated $27 million in cash from operating activities compared with the previous quarter’s $176 million.
The company generated a free cash flow of $21 million in the reported quarter.
Guidance
For second-quarter 2024, non-GAAP earnings are expected to be between 46 and 50 cents per share. The Zacks Consensus Estimate for earnings is pegged at 49 cents per share, indicating 2.08% year-over-year growth.
For 2024, TDC expects non-GAAP earnings between $2.15 and $2.31 per share. The Zacks Consensus Estimate for earnings is pegged at $2.22, suggesting 7.25% year-over-year growth.
Public cloud ARR growth is projected between 35% and 41% on a year-over-year basis.
Total ARR is expected to exhibit growth of 4-8% from the 2023 level.
Teradata expects recurring revenues to increase 1-3% year over year.
Teradata expects total revenues to be up 0-2% from the year-ago reported figure. The consensus mark for 2023 revenues is pegged at $1.83 billion.
Moreover, cash flow from operations is expected to be between $360 million and $400 million. Free cash flow is anticipated to be in the $340-$380 million range.
Zacks Rank & Stocks to Consider
Currently, Teradata carries a Zacks Rank #2 (Buy).
Shares of Teradata have lost 24.7% on a year-to-date basis, underperforming the Zacks Computer and Technology sector’s return of 12.2%.
Bumble (BMBL - Free Report) , Airbnb (ABNB - Free Report) and NVIDIA (NVDA - Free Report) are some other top-ranked stocks that investors can consider in the broader sector, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bumble shares have declined 28.9% in the year-to-date period. BMBL is set to report its first-quarter 2024 results on May 8.
Airbnb shares have gained 19.1% year to date. ABNB is set to report its first-quarter 2024 results on May 8.
NVIDIA shares have gained 85.6% year to date. NVDA is set to report its first-quarter fiscal 2025 results on May 22.