SAN DIEGO - Teradata Corporation (NYSE: NYSE:TDC), a cloud analytics data platform company, released its financial results for the fourth quarter and full year of 2023, highlighting significant growth in its cloud-based revenues and a substantial return of cash to shareholders.
For the fourth quarter, Teradata's public cloud Annual Recurring Revenue (ARR) surged to $528 million, marking a 48% increase from the same period last year. This growth reflects the company's expanding presence in cloud services, a segment that has seen ten-fold growth in less than four years.
The company's total ARR for the fourth quarter reached $1.570 billion, a 6% increase year-over-year, with recurring revenue comprising 81% of the total revenue, indicating a stable revenue base. The total revenue for the quarter was $457 million, a modest increase of 1% from the fourth quarter of 2022.
Teradata's full-year figures also showed strength, with public cloud ARR at $528 million, up 48% from the previous year. Total ARR rose to $1.570 billion, a 6% increase, while recurring revenue grew by 5% to $1.492 billion. Total revenue for the year was $1.833 billion, up 2%.
The company demonstrated financial discipline, with a full-year cash flow from operations of $375 million and a free cash flow of $355 million. Teradata returned 87% of this free cash flow to shareholders, including $308 million in share repurchases.
Looking ahead to 2024, Teradata expects its public cloud ARR to grow by 35% to 41% in constant currency and targets a total ARR growth of 4% to 8%. The company anticipates recurring revenue growth of 1% to 3% and total revenue growth between 0% to 2%, all in constant currency.
The financial outlook for 2024 also includes a GAAP diluted EPS range of $1.08 to $1.24 and a non-GAAP diluted EPS range of $2.15 to $2.31. The company projects its cash flow from operations to be between $360 million to $400 million, with free cash flow ranging from $340 million to $380 million.
Teradata's leadership expressed confidence in the company's trajectory, with President and CEO Steve McMillan emphasizing Teradata's role in the AI era and the strategic importance of trusted data for innovation.
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