The News: Teradata recently announced its Q1 2022 earnings, including revenue of $496 million, which is essentially flat from the $491 million the multi-cloud analytics vendor reported in the same quarter one year ago. Teradata also reported non-GAAP net income of $71 million, which is down nine percent from $78 million one year ago. For the full Press Release click here.
Teradata Q1 2022 Revenue Hits $496M, Up 1% From Q1 2021, Including 10% Revenue Rise to $290M in the Americas Segment for the Multi-Cloud Enterprise Analytics Vendor
Analyst Take: Though Q1 2022 revenue largely unchanged for Teradata compared to Q1 one year ago, the multi-cloud enterprise analytics vendor did make some progress on recurring revenue year to year.
Here are the Teradata Q1 2022 earnings by the numbers:
- Revenue of $496 million, up 1 percent from $491 million one year ago.
- Recurring revenue for the quarter was $386 million, up four percent from $372 million in the same quarter in 2021.
- Recurring revenue for the quarter was 78 percent of the total revenue in Q1, up from 76 percent of the total revenue for the quarter one year ago.
- Revenue in the Americas rose 10 percent in Q1 2022 to $290 million, up from $263 million one year ago.
- Non-GAAP net income of $71 million, which is down nine percent from $78 million one year ago.
- Non-GAAP diluted earnings per share were 65 cents for Q1, compared to 69 cents per share for the same quarter in 2021.
The earnings per share figure of 65 cents per share did, however, beat analyst consensus estimates of 63 cents per share for Teradata, while its $496 million in Q1 revenue beat analyst consensus estimates of $490.86 million.
So, what does it all mean? Ultimately, this is not a bad showing. Teradata is showing its enterprise chops and continuing to fight well in a crowded and competitive multi-cloud enterprise analytics data platform marketplace, up against the likes of giants including IBM, Microsoft, Google, Amazon Web Services, Salesforce and others. That’s no easy feat. With the ongoing COVID-19 pandemic, continuing supply chain shortages and pressures on a wide range of materials and products, the war in Ukraine, labor shortages and a myriad of other challenges, the last two years have been difficult for many companies, including in the competitive tech sector.
In its earnings report, Teradata also said it expects that its recent decision to cease its operations in Russia due to that nation’s invasion of Ukraine earlier this year will have negative impacts on the company’s financial results for the full year of 2022 going forward. The exit from Russia will result in a $55 million reduction in average recurring revenue for the company for full year 2022, a reduction in revenue of $60 million and a non-GAAP diluted earnings per share price of 29 cents per share, the company reported.
Teradata provided earnings estimates for the second quarter of 2022, including non-GAAP diluted earnings per share in the range of 26 cents to 30 cents.
At the multi-cloud enterprise analytics vendor’s Investor Day event in September 2021, Teradata executives detailed their initiatives to deliver sustainable growth and value creation for customers, while also working to develop recurring revenue streams into sustainable and profitable revenue for the company. We see no reason to think that those goals are changing, but like many other tech companies, Teradata has seen many adjustments to its strategy due to factors outside its control.
It will be interesting to watch how Teradata maintains its course and progress in a market and world of uncertainties of late, but we envision the multi-cloud enterprise analytics vendor finding a way that will lead to further success with its data platform into the future.
Disclosure: Futurum Research is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of Futurum Research as a whole.