teradata acquisition rumors 2021

858-485-3029 office Moving to the cloud would be a "massive disruption.". Cash provided by operating activities (GAAP). Teradata's systems are highly engineered and while replacing a power supply or a disk drive should be a simple process, if something more serious fails "it can be catastrophic," our source said. 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. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. What it does: Coupa makes software to help companies manage their spend and includes tools for financial management, accounting, and other back-office functions. 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. A conference call is scheduled for today at 2:00 p.m. PT to discuss the Companys fourth-quarter and full-year 2021 results, and provide a business and financial update. Teradata Stock: Snowflake On A Budget? - Forbes * 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. 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. 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 In fact, the company earned more than twice the predicted profit -- $0.57 per share -- and needed sales of only $475 million to do it. However, as described below, the Company believes that certain non-GAAP measures such as non-GAAP gross profit, non-GAAP operating income, non-GAAP net income, and non-GAAP earnings per diluted share, or EPS, all of which exclude certain items (as well as free cash flow), and which may be reported on a constant currency basis, are useful for investors. Join SI Premium - FREE. SAN DIEGO-- (BUSINESS WIRE)-- Teradata (NYSE: TDC) today announced its fourth-quarter and full-year 2021 financial results. Recurring revenue is expected to grow at a low-to-mid-single-digit percentage year-over-year. Learn more at Teradata.com. 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. CONDENSED CONSOLIDATED STATEMENTS OF INCOME, (in millions, except per share amounts - unaudited), CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS. In addition, the Company recorded a $2 million discrete tax benefit in the third quarter of 2021 for GAAP purposes resulting from a provision to return true up to the Companys net operating loss upon completion of its 2020 US federal income tax return and its NOL carryback claim afforded by the CARES Act of 2020. The company has made a few small acquisitions of it own as it looks to expand beyond video conferencing into a video-communications platform. Teradata Reports First Quarter 2021 Financial Results. The firm also acquired Anaplan, a business-planning-software company, for $10.7 billion in June. 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. Who could acquire it: Another cloud or software company. Teradata Mergers and Acquisitions Summary | Mergr Our enterprise analytics solve business challenges from start to scale. What it does: Smartsheet is a project-management tool that allows people to collaborate and automate tasks using a spreadsheet format. *Average returns of all recommendations since inception. 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. PDF Teradata Reports Fourth-Quarter and Full-Year 2021 Financial Results Why it's an acquisition target: Zoom saw huge growth during the early days of the pandemic due to the sudden shift to remote work, but since the beginning of this year, its stock has fallen back to pre-2020 levels. What happened was that foreign hackers, who some top US officials believe are from Russia, were able to use the hack to spy on private companies like the elite cybersecurity firm FireEye and the upper echelons of the US government, including the Department of Homeland Security and the Treasury Department. As a result of these adjustments, the Companys non-GAAP effective tax rate for the three months ended December 31, 2021 was 21% and December 31, 2020 was 26.3%. However, as described below, the Company believes that certain non-GAAP measures such as non-GAAP gross profit, non-GAAP operating income, non-GAAP net income, and non-GAAP earnings per diluted share, or EPS, all of which exclude certain items (as well as free cash flow), and which may be reported on a constant currency basis, are useful for investors. jennifer.donahue@teradata.com. "It would not surprise us to see interest from private equity, especially after the significant slowdown in growth," RBC analysts wrote. hbbd``b` @d@nig7 A,) SG $cD7,#&0 @L X Cash provided by operating activities (GAAP). , The Register Biting the hand that feeds IT, Copyright. We delivered strong results, driving more than 90% growth in public cloud ARR and significantly growing new cloud customers. 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. However, as described below, the Company believes that certain non-GAAP measures such as non-GAAP earnings per diluted share, or EPS, and non-GAAP operating margin, which exclude certain items (as well as free cash flow) are useful for investors. Is this step a sign of an IBM takeover? Company Mergers, Acquisitions, & JVs; . All of which positions us to achieve over $1 billion in Cloud ARR(1) and approximately $550 million in free cash flow(2) in fiscal 2025 and deliver significant long-term value to our shareholders.. However, Box ended up getting an investment from the private-equity firm KKR that halted rumors of a sale and subsequently saw higher growth rates. At the Investor Day event, Teradatas new leadership team outlined its three foundational cornerstones for long-term growth and value creation: Continued Strong Financial Performance Through Fiscal 2025 and Beyond. ARR does not include managed services and third-party software. What it does: Nutanix makes IT-infrastructure hardware and is currently transitioning from licensing to a software-subscription model. Teradata defines free cash flow as cash provided by / used in operating activities, less capital expenditures for property and equipment, and additions to capitalized software. The Motley Fool recommends Teradata. They said Rapid7 and Varonis Systems could potentially acquire Qualys. See the foreign currency fluctuation schedule, which is used to determine revenue on a constant currency (CC) basis, on the Investor Relations page of the Companys website at investor.teradata.com. Also, when calculated according to generally accepted accounting principles (GAAP), Teradata's profits weren't quite as strong as the headline pro forma profit number. Teradata is the connected multi-cloud data platform for enterprise analytics company. Why it's an acquisition target: N-Able has a large market opportunity in the managed-service provider space for small- to medium-sized businesses, RBC analysts wrote. What it does: Teradata makes software for cloud databases and analytics. Teradata customers express terror as field-based hardware support Teradata has invested in multiple sectors such as MarketingTech, Big Data Infrastructure, AdTech and more. Teradata is the connected multi-cloud data platform for enterprise analytics, solving data challenges from start to scale. The strength of our performance in 2021 is matched by our conviction to continue accelerating in 2022. Note to Investors These forward-looking statements are based upon current expectations and assumptions and often can be identified by words such as expect, strive, looking ahead, outlook, guidance, forecast, anticipate, continue, plan, estimate, believe, will, would, likely, intend, potential, or similar expressions. In the UK alone, companies including Sainsbury's, Lloyds Bank, Iceland, Barclays, Unilever, Vodafone, and other big brands still rely on Teradata's on-prem systems for business decision-making as cloud-based systems are yet to meet their performance requirements, sources told The Register. UPDATE: Needham & Company Upgrades Teradata (TDC) to Buy To make the world smarter, happier, and richer. SAN DIEGO--(BUSINESS WIRE)-- "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. 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. 17095 Via Del Campo Why it's an acquisition target: Teradata has been in the process of transitioning to the cloud, and has so far been successful, RBC analysts wrote. MEDIA CONTACT 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. Read Full Review 5.0 Feb 2, 2023 Review Source: Product: Teradata Vantage Perspective by experience. 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. Reconciling items include stock-based compensation, capitalized software, amortization of acquisition-related intangible assets and acquisition, integration and reorganization-related items. Recurring revenue is expected to grow at a high-single-digit to low-double-digit percentage year-over-year; Total revenue is expected to grow at a low-single-digit to mid-single-digit percentage year-over-year; GAAP earnings per diluted share is expected to be in the range of $0.78 to $0.82; Non-GAAP earnings per diluted share, excluding stock-based compensation expense, reorganization-related expenses, and other special items, is expected to be in the range of $1.92 to $1.96, Cash flow from operations is expected to be at least $440 million; and, Free cash flow is expected to be at least $400 million. The company's growth has stagnated in recent years due to competition from players like Dynatrace and Datadog, and its customer count is down. 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. endstream endobj 10088 0 obj <>/Metadata 138 0 R/Outlines 150 0 R/Pages 10083 0 R/StructTreeRoot 167 0 R/Type/Catalog>> endobj 10089 0 obj <>/ExtGState<>/Font<>/XObject<>>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> endobj 10090 0 obj <>stream 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. 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. Why Teradata Stock Fell Sharply on Friday, Teradata Corporation (TDC) Q3 2021 Earnings Call Transcript, Teradata Corporation (TDC) Q2 2021 Earnings Call Transcript, U.S. Money Supply Is Doing Something It Hasn't Done in 90 Years, and It May Signal a Big Move for Stocks, Why I Refuse to Chase the Maximum Social Security Benefit, 1 Trillion-Dollar Growth Stock Down 28% You'll Regret Not Buying on the Dip, A Bull Market Is Coming: 3 Stocks to Buy Without Hesitation, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. This was offset by $1 million of tax expense related to withholding taxes associated with the same intra-entity transfer recorded in the second quarter of 2020. Teradata is the connected multi-cloud data platform for enterprise analytics company. As described below, the Company believes that free cash flow is a useful non-GAAP measure for investors. That likely makes the company a target for private-equity firms. 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%. The Companys full-year 2020 GAAP marginal effective tax rate included $3 million of tax expense related to tax contingencies pursuant to FIN 48. ARR does not include managed services and third-party software. News and Press Releases | Teradata 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. Cost basis and return based on previous market day close. 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. But Oracle would also make sense, especially given that Larry Ellison, the founder and CTO of Oracle, was very vocal about supporting Zoom during its pandemic boom and privacy-and-security issues, the analysts wrote. The attack went undetected for months, according to a Reuters report. "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. Teradata has acquired 16 companies. "Going private could be the right move for it to better manage its turnaround path back to market growth," RBC analysts wrote. 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. 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. 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. Observers fear a haemorrhage of the knowledge required to keep the unique Teradata systems up and running. "We think the company has made good progress on its cloud transition, and as such, it could represent an interesting acquisition candidate for a large vendor or PE shop that wants to get deeper into cloud analytics," RBC analysts wrote. Jennifer Donahue endstream endobj startxref Invest better with The Motley Fool. This is an increase from the range of $1.60 to $1.70, which was previously communicated at Teradatas Investor Day in September 2021. And its pro forma number was roughly twice its predicted pro forma profit of $0.25 to $0.29 for the quarter. 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. 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. 1. ARR does not include managed services and third-party software. The company has spent over $ 808M for the acquisitions. Teradata Reports Fourth-Quarter and Full-Year 2021 Financial Results 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. 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. He Couldn't Beat Teradata. Now He's Its CEO In addition, the Company recorded a $2 million discrete tax benefit in the third quarter of 2021 for GAAP purposes resulting from a provision to return true up to the Companys net operating loss upon completion of its 2020 US federal income tax return and its NOL carryback claim afforded by the CARES Act of 2020. 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. Big Blue itself responded to us by saying we needed to ask Teradata for comment. Total revenue is expected to be flat-to-low-single-digit percentage growth year-over-year. 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. 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. Why The Valuation Gap Could Narrow Let . "Even when we outsource elements of the hardware support to reliable third parties, Teradata maintains the overall relationship with the customer and I can confirm that we continue to have hardware support expertise within the company for our on-premises customers.". What it does: SolarWinds is an IT management software firm that makes tools to help companies manage their networks, systems, and IT infrastructure. Download this Press Release. For the twelve months ended December 31, the Companys non-GAAP effective tax rate was 22.4% for 2021 and 23.2% for 2020. However, lately it has been facing issues with customer retention after a surge in usage during the pandemic, RBC analysts said. jennifer.donahue@teradata.com. What it does: Qualys is a cybersecurity company and makes software for cloud security, compliance, and vulnerability-management solutions. These forward-looking statements are based upon current expectations and assumptions and often can be identified by words such as expect, strive, looking ahead, outlook, guidance, forecast, anticipate, continue, plan, estimate, believe, will, would, likely, intend, potential, or similar expressions. They pointed to some deals that had already been done in the space like Citrix and Wrike, Adobe and Workfront, and Atlassian and Trello. 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. INVESTOR CONTACT A total of 5 acquisitions came from private equity firms.It has also divested 1 asset.. Teradata's largest acquisition to date was in 2011, when it acquired Teradata - Marketing Applications for $525M. 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. Teradata Reviews, Ratings & Features 2023 | Gartner Peer Insights The Companys GAAP effective tax rate for the twelve months ended December 31, 2020, includes $156 million of discrete tax benefit related to an intra-entity asset transfer of certain of its intellectual property to one of its Irish subsidiaries, which occurred on January 1, 2020. The forward-looking statements included in this release are made as of September 9, 2021, and Teradata does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. 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. They named 16 companies, including pandemic darlings like Zoom and the IT management software firm SolarWinds, which is still reeling from a devastating 2020 hack. "With a strong margin profile but still in recovery from the prior cyber-attack, we think SWI could be an interesting PE candidate for a firm that could leverage a growing SaaS portfolio, unique low-touch sales model and high margins," RBC analysts wrote. Why it's an acquisition target: Nutanix operates in the hybrid-cloud space and is making its own transition from a licensing model to a software-subscription model. Teradata has acquired in 4 different US states, and 4 countries. 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. 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. Free cash flow does not have a uniform definition under GAAP and, therefore, Teradatas definition may differ from other companies definitions of this measure. 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. Non-GAAP diluted EPS is expected to be in the range of $1.82 to $1.92. Non-GAAP diluted EPS is expected to be in the range of $1.82 to $1.92. Yankees Option Franchy Cordero - MLB Trade Rumors 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. Thoma Bravo acquired Anaplan, which makes similar tools for accounting and financial management, in June in an all-cash transaction valued at about $10.4 billion. Free cash flow is expected to be approximately $400 million.
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