Teradata Q2 Recurring Revenue Edges Up to $1.03B

TL;DR

**Teradata Q2 recurring revenue up slightly to $1.03B. Subscription software license revenue also saw a modest increase.**

AI Summary

Teradata Corp reported its Q2 2024 results, with total recurring revenue for the six months ended June 30, 2024, reaching $1.03 billion. This represents a slight increase from the $1.02 billion reported for the same period in 2023. The company's subscription software license recurring revenue for Q2 2024 was $369 million, up from $356 million in Q2 2023.

Why It Matters

This filing shows Teradata's ability to maintain and slightly grow its core recurring revenue streams, indicating stability in its business model despite market fluctuations.

Risk Assessment

Risk Level: low — The filing indicates a stable financial performance with slight growth in key revenue areas, suggesting low immediate risk.

Key Numbers

• $1.03B — Total Recurring Revenue (YTD) (Represents the core business performance for the first half of 2024.)
• $1.02B — Total Recurring Revenue (YTD Prior Year) (Provides a year-over-year comparison for the same period.)
• $369M — Subscription Software License Recurring Revenue (Q2) (Key metric for the company's software licensing business in the second quarter.)
• $356M — Subscription Software License Recurring Revenue (Q2 Prior Year) (Year-over-year comparison for the subscription software segment.)

Key Players & Entities

• Teradata Corp (company) — Filer of the 10-Q
• 1.03 billion (dollar_amount) — Total recurring revenue for the six months ended June 30, 2024
• 1.02 billion (dollar_amount) — Total recurring revenue for the six months ended June 30, 2023
• 369 million (dollar_amount) — Subscription software license recurring revenue for Q2 2024
• 356 million (dollar_amount) — Subscription software license recurring revenue for Q2 2023
• June 30, 2024 (date) — End of reporting period for Q2 2024

FAQ

Key Financial Figures

• $0.01 — nge on which Registered: Common Stock, $0.01 par value TDC New York Stock Exchange

Filing Documents

• tdc-20240630.htm (10-Q) — 1100KB
• ex102-richardpetleyofferle.htm (EX-10.2) — 106KB
• tdc063024ex311.htm (EX-31.1) — 10KB
• tdc063024ex312.htm (EX-31.2) — 10KB
• tdc063024ex32.htm (EX-32) — 8KB
• image.jpg (GRAPHIC) — 5KB
• 0000816761-24-000146.txt ( ) — 5578KB
• tdc-20240630.xsd (EX-101.SCH) — 35KB
• tdc-20240630_cal.xml (EX-101.CAL) — 64KB
• tdc-20240630_def.xml (EX-101.DEF) — 123KB
• tdc-20240630_lab.xml (EX-101.LAB) — 466KB
• tdc-20240630_pre.xml (EX-101.PRE) — 320KB
• tdc-20240630_htm.xml (XML) — 677KB

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION Description Page

Financial Statements

Item 1. Financial Statements Condensed Consolidated Statements of Income (Unaudited) Three and Six Months Ended June 3 0 , 2024 and 2023 4 Condensed Consolidated Statements of Comprehensive Income (Unaudited) Three and Six Months Ended June 3 0 , 2024 and 2023 5 Condensed Consolidated Balance Sheets (Unaudited) June 3 0 , 2024 and December 31, 202 3 6 Condensed Consolidated Statements of Cash Flows (Unaudited) Si x Months Ended June 3 0 , 2024 and 2023 7 Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) Three and Six Months Ended June 3 0 , 2024 and 2023 8 Notes to Condensed Consolidated Financial Statements (Unaudited) 9

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 20

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 32

Controls and Procedures

Item 4. Controls and Procedures 33

—OTHER INFORMATION

PART II—OTHER INFORMATION Description Page

Legal Proceedings

Item 1. Legal Proceedings 33

Risk Factors

Item 1A. Risk Factors 33

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 34

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 34

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 34

Other Information

Item 5. Other Information 34

Exhibits

Item 6. Exhibits 35

Signatures

Signatures 36 3 Table of Contents Part 1—FINANCIAL INFORMATION A

Financial Statements

Item 1. Financial Statements. Teradata Corporation Condensed Consolidated Statements of Income (Unaudited) Three Months Ended June 30, Six Months Ended June 30, In millions, except per share amounts 2024 2023 2024 2023 Revenue Subscription software licenses $ 73 $ 70 $ 163 $ 174 Services and other 295 301 593 586 Total recurring 368 371 756 760 Perpetual software licenses, hardware and other 5 13 13 26 Consulting services 63 78 132 152 Total revenue 436 462 901 938 Cost of revenue Subscription software licenses 5 5 10 11 Services and other 105 102 212 194 Total recurring 110 107 222 205 Perpetual software licenses, hardware and other 5 12 13 23 Consulting services 56 67 117 132 Total cost of revenue 171 186 352 360 Gross profit 265 276 549 578 Operating expenses Selling, general and administrative expenses 131 167 292 320 Research and development expenses 68 76 143 146 Total operating expenses 199 243 435 466 Income from operations 66 33 114 112 Other expense, net Interest expense ( 7 ) ( 7 ) ( 15 ) ( 14 ) Interest income 2 8 6 15 Other expense ( 6 ) ( 10 ) ( 18 ) ( 31 ) Total other expense, net ( 11 ) ( 9 ) ( 27 ) ( 30 ) Income before income taxes 55 24 87 82 Income tax expense 18 7 30 25 Net income $ 37 $ 17 $ 57 $ 57 Net income per common share Basic $ 0.38 $ 0.17 $ 0.59 $ 0.56 Diluted $ 0.38 $ 0.17 $ 0.58 $ 0.55 Weighted average common shares outstanding Basic 96.5 101.0 97.0 101.2 Diluted 97.4 102.9 98.9 103.3 See Notes to Condensed Consolidated Financial Statements (Unaudited). 4 Teradata Corporation Condensed Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended June 30, Six Months Ended June 30, In millions 2024 2023 2024 2023 Net income $ 37 $ 17 $ 57 $ 57 Other comprehensive income (loss): Foreign currency translation adjustments ( 5 ) ( 3 ) ( 15 ) — Unrealized gain (loss) on cross-currency net investment hedge, before tax 2 ( 2 ) 5 ( 3 ) Unrealized gain (loss) on cross-currenc

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