雅虎香港財經 Teradata (TDC) Q1 Earnings Beat Estimates, Revenues Fall Y/Y
Teradata TDC 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, Airbnb ABNB and NVIDIA NVDA 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.
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