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Shares of Teradata Corp (NYSE:TDC) are trading up over 6% in pre-open Monday after the company reported fourth-quarter results that beat the average analyst estimate.
Teradata posted an EPS of $0.35 on revenue of $452 million, beating the consensus for an EPS of $0.30 on revenue of $436.4M. While revenue fell almost 5% year-over-year, the company reported annual recurring revenue (ARR) of $1.48 billion, down just 1% YoY. For the fourth quarter, recurring revenue came in at $357M, an increase of 77% YoY and better than the $341.5M consensus.
“Teradata had a strong 2022, including achieving our largest quarter of cloud growth ever, and meeting or beating every element of our annual outlook,” said Steve McMillan, President and CEO, Teradata.
“It was only in the middle of 2020 that we set our sights on our cloud-first future. In that short amount of time, and despite challenging macroeconomic factors, Teradata delivered more than a six-fold growth in cloud ARR.”
For this quarter, the company projects EPS of $0.62 (up or down $0.02), ahead of the consensus of $0.57. For 2023, EPS is seen at $1.98 at the midpoint of the guidance on revenue growth of 1-4%. Annual recurring revenue is expected to increase by 6-8%.
“We remain on-track to achieve over one billion dollars of cloud ARR in 2025 while driving future margin expansion and free cash flow growth,” said Claire Bramley, Chief Financial Officer, Teradata.
