Teradata: The Benefits Of More Data
Who Is Amazon's Next Victim? Not Who You Think...
Josh Burwick • 22 Comments
Josh Burwick • 22 Comments
Who Is Amazon's Next Victim? Not Who You Think...
Josh Burwick • 22 Comments
Josh Burwick • 22 Comments
Thu, May 5, 10:21 AM
- Teradata (NYSE:TDC) is up 4.3% in early going after a Q1 beat where it issued strong guidance for 2016 profits.
- The company named Victor Lund to replace Mike Koehler as CEO, effective immediately. Lund has acted as chair of Teradata's audit committee and was non-executive chairman at DemandTec for several years.
- Revenues fell but came in above expectations, and profits grew 57% on a non-GAAP basis. Gross margin (non-GAAP) grew to 51.1% from the prior year's 49.3%.
- Teradata guided to full-year EPS of $2.35-$2.50 (vs. consensus of $2.35) and revenues of $2.25B-$2.32B.
- Q1 revenue by segment: Americas Data and Analytics, $295M (down 12%); International Data and Analytics, $216M (up 4%); Marketing Applications, $34M (down 11%). The company agreed to sell its Marketing Applications business last month for $90M.
- Press Release
Fri, Feb. 5, 3:59 PM
- Add Red Hat (RHT -8.1%), Autodesk (ADSK -6.9%), and Teradata (TDC -8%) to the list of enterprise tech firms nosediving following weak Q1/2016 guidance from business intelligence/data visualization software firm Tableau and professional social networking/online jobs leader LinkedIn. The Nasdaq is down 3.4%, and the S&P 2%, in the wake of this morning's jobs report.
- Other big decliners include Varonis (VRNS -13.4%), Gigamon (GIMO -9.7%), Pegasystems (PEGA -10.3%), SGI (SGI -7.5%), LogMeIn (LOGM -8.6%), inContact (SAAS -10.8%), Attunity (ATTU -14.4%), Textura (TXTR -6.8%), and Tableau rival MicroStrategy (MSTR -6.6%). A slew of other enterprise names were previously covered here - the group includes many cloud software and security tech firms.
- Teradata is just a day removed from rallying in the wake of a Q4 sales beat and healthy 2016 guidance.
Thu, Feb. 4, 12:34 PM
- Teradata's (NYSE:TDC) 2016 non-GAAP revenue guidance of $2.275B-$2.32B is officially below a $2.37B consensus. However, the guidance excludes revenue from Teradata's marketing app business. which (in-line with plans announced in November) the company plans to sell near the end of Q1. The business had 2015 revenue of $152M.
- 2016 EPS guidance is at $2.35-$2.50, above a $2.30 consensus and reported 2015 EPS of $2.06. The guidance excludes an expected $7M post-tax Q1 marketing app division loss.
Q4 details: Teradata's core Data and Analytics business (data warehousing hardware/software, pressured by competition) saw revenue drop 6% Y/Y (-1% exc. forex) in Q4 to $559M, a slightly smaller drop than Q3's 9%. Total product revenue (drives future services revenue) fell 11% to $320M. Services revenue fell fractionally to $399M.
Non-GAAP gross margin was 52.2%, up from 50.7% in Q3 and down from 56.9% a year ago. GAAP SG&A spend was flat Y/Y at $213M; R&D rose by $1M to $55M. $99M was spent to buy back 3.5M shares, bringing the full-year buyback sum to $573M. Teradata ended Q4 with $839M in cash (over 95% offshore) and $780M in debt.
- Teradata's Q4 results, earnings release
Tue, Jan. 19, 10:56 AM
- Hortonworks (NASDAQ:HDP) has plunged below $13 (making new post-IPO lows along the way) after pre-announcing its Q4 sales/billings and filing a shelf registration for a follow-on stock offering.
- Needham's Richard Kugele (Buy, $21 target) wants some more details about the offering. "Clearly some type of capital raise was anticipated (and the company said as much previously), but there was also no sense of urgency on the part of management in any public commentary. We believe it will be incumbent on HDP during its roadshow to show why this offering, announced in this way, at this time should not be interpreted as evidence of serious difficulty. Given our overarching positive stance on the space and the company’s relative position within it, we maintain our Buy rating."
- With public investors increasingly cautious in how they value fast-growing tech companies incurring big losses, Hortonworks is now worth $599M - much less than the $1B+ it was valued at in a 2014 funding round. Teradata's (TDC -0.3%) 6.3% stake in the company is now worth $38M. Yahoo's 15.1% stake is worth $98M.
- Hortonworks' Q4 report arrives on Feb. 10. Teradata reports on Feb. 4.
Wed, Jan. 6, 1:46 PM
- Barclays' Raimo Lenschow has downgraded firewall/security software firm Check Point (CHKP -1.9%), cloud talent management software firm Cornerstone OnDemand (CSOD -2.7%), and data warehousing hardware/software provider Teradata (TDC -3.8%) to Underweight. Cloud HR/financials software vendor Workday (WDAY -3.6%) and e-commerce software/services provider Demandware (DWRE -2.9%) have been cut to Equal Weight.
- Cloud HR software firm Paycom (PAYC -1%), on the other hand, has been upgraded to Overweight on a belief consensus estimates are too low. Meanwhile, BofA/Merrill has launched coverage on Demandware at Buy.
- Regarding Check Point, Lenschow says he prefer security tech firms that are gaining share - his top three ideas are Palo Alto Networks, Imprivata, and Rapid7. He sees security IT spend rising 7% in both 2016 and 2017, a rate on par with 2015's.
- Regarding Cornerstone, Lenschow is worried about slowing top-line growth, a lack of profits, and growing competition. Regarding Workday, he's concerned about competition from SAP/Oracle, a high valuation, and the relatively limited impact of its financials offerings on sales growth.
- The downgraded names are underperforming amid a 1.1% Nasdaq drop.
Dec. 11, 2015, 10:45 AM
- Goldman has launched coverage on Teradata (NYSE:TDC) with a Sell rating as part of a broader coverage launch for enterprise analytics plays.
- The firm declares a Teradata LBO to be "not compelling" for potential suitors, and argues its planned marketing app exit (though a positive) does nothing to relieve top-line pressures elsewhere.
- Shares are now down 36% YTD. Longbow Research previously argued Teradata's efforts suggest it's prepping for a sale.
Nov. 18, 2015, 12:45 PM
- Teradata's (NYSE:TDC) recent actions resemble those of a company putting itself on the block, argues Longbow Research.
- 13 days ago, Teradata announced (along with a Q3 sales miss and full-year guidance cut) job cuts and plans to exit its marketing app business, with the goal of focusing solely on its data warehousing/analytics offerings going forward.
- Data warehousing peer Informatica was taken private earlier this year by P-E investors. However, Informatica's top-line pressures weren't as severe as Teradata's. Shares are down 36% YTD, and trade for 12x a 2016 EPS consensus of $2.29. 2013 EPS amounted to $2.86.
Nov. 6, 2015, 1:56 PM
- Pummeled yesterday due to a Q3 sales miss and full-year guidance cut (was accompanied by news of job cuts and plans to exit the marketing app market), Teradata (NYSE:TDC) has recovered the lion's share of its losses today. Possibly helping: BI/data visualization software vendor Tableau (up 23.1%) has fueled a rally in enterprise analytics-related stocks after beating Q3 estimates and providing strong guidance.
- Aside from Tableau's numbers, Teradata could be benefiting from bargain-hunting among those who think bad news has been priced in, particularly in light of the company's restructuring plans: Shares were down 41% YTD going into today. They remain 64% below a Sep. 2012 peak of $80.97.
Nov. 5, 2015, 9:21 AM
- In the wake of its Q3 sales miss, Teradata (NYSE:TDC) expects 2015 revenue to be down 6%-8% Y/Y, more than prior guidance for a 3%-6% drop and below a -5.4% consensus. EPS guidance has been cut to $2.00-$2.20 from $2.20-$2.50; consensus is at $2.22.
- Teradata plans to exit its marketing app business to "allow the company to focus exclusively on improving and growing its Data and Analytics business." It's also "rationalizing its cost structure to better align its infrastructure, research and development and go-to-market resources," and plans to give customers new buying options, including a software-only version of its data warehousing platform and a public cloud version that will launch on Amazon Web Services in Q1 2016.
- The job cuts and marketing app exit are expected to lower 2016 operating expenses by $180M-$200M, and to boost op. income by ~$120M. They come amid tough competition from both traditional data warehousing rivals such as IBM, Oracle, and Microsoft, and indirect competition from the Hadoop big data/analytics platform (Cloudera and Teradata-backed Hortonworks are leading players). (8-K filing)
- Top-line performance: Product revenue (drives future maintenance/consulting revenue) fell 18% Y/Y in Q3 to $240M. Consulting services fell 3% to $194M, and maintenance services 1% to $172M. Segment-wise, data/analytics revenue fell 9% to $557M, and marketing app revenue 8% to $49M.
- Financials: Boosting EPS: $250M was spent to buy back 8.5M shares. Gross margin fell 180 bps Y/Y to 50.7%. SG&A spend fell by $2M to $179M; R&D rose by $5M to $51M. Teradata ended Q3 with $874M in cash, and $710M in debt.
- Shares have fallen to $27.96 premarket. The 52-week low is $27.56.
- Q3 results, PR
Aug. 6, 2015, 1:08 PM
- With a Q2 miss on the books, Teradata (TDC) now expects 2015 revenue to be down 3%-6% Y/y (flat to up 3% exc. forex) and EPS to be in a range of $2.20-$2.50. That's below prior guidance of flat to -2% rev. growth and EPS at the low end of a $2.50-$2.70 range; consensus is for a 2.6% sales decline and EPS of $2.44.
- The guidance cut, which will likely heighten fears about the impact of Hadoop big data projects on Teradata's traditional data warehousing sales, is blamed on deferrals and longer sales cycles for big transactions. Major Hadoop software provider Hortonworks - Teradata is an investor - posted a Q2 beat and hiked its 2015 guidance yesterday afternoon.
- Top-line performance: Product revenue (hardware/software, drives future services revenue) fell 15% Y/Y in Q2 to $256M. Consulting revenue fell 4% to $194M, and maintenance revenue was flat at $173M. Data/analytics segment revenue fell 8% to $575M, and marketing app revenue 9% to $48M.
- Financials: Gross margin fell 180 bps Y/Y to 54.3%. SG&A spend rose 1% to $190M, and R&D spend 18% to $59M. $39M was spent on buybacks. Teradata ended Q2 with $921M in cash, and $600M in debt.
- Shares have plunged to their lowest levels since 2010.
- Q2 results, PR
Aug. 6, 2015, 9:15 AM
Jun. 15, 2015, 10:20 AM
- Believing its valuation still doesn't fully reflect the competitive challenges from big data and cloud-based platforms, JMP's Greg McDowell has downgraded Teradata (NYSE:TDC) to Underperform, and set a $30 target. The data warehousing hardware/software provider has made fresh 52-week lows; shares now go for 13x a 2016 EPS consensus of $2.75.
- Many other analysts have already argued big data/analytics platforms focused on handling massive unstructured datasets, such as Hadoop and NoSQL, are major long-term competitive threats; some have also cited Amazon's Redshift cloud-based warehousing service. Teradata has been using M&A to grow its Hadoop exposure.
- IBM (a traditional Teradata warehousing rival) just made a big commitment to Spark, an alternative to Hadoop's MapReduce programming model that offers much faster analytics performance on account of processing data in-memory (rather than on disks), and also reduces network I/O activity. Major Hadoop distribution provider Hortonworks (HDP -1.1%), which Teradata maintains a stake in, has launched tools for running Spark via Hadoop.
May 7, 2015, 12:15 PM
- In addition to missing Q1 estimates, Teradata (NYSE:TDC) now expects 2015 EPS to be at the low end of a prior $2.50-$2.70 guidance range (consensus is at $2.57). Revenue is still expected to be flat to down 2% (consensus is at -1.5%).
- The company has added $300M to its buyback, raising its total authorization to $431M. $273M was spent to buy back 6.3M shares in Q1.
- Q1 hardware/software revenue -12% Y/Y to $241M; consulting services -9% to $172M; maintenance services +2% to $169M. The numbers come amid ongoing fears about competition - both from traditional rivals such as IBM/Oracle, and from the growing adoption of the Hadoop big data framework.
- Financials: Total revenue growth was -7% in dollars, and -2% in constant currency. Gross margin (non-GAAP) fell to 49.3% from 54.9% a year ago, and op. margin to 10.5% from 19.9%. SG&A spend fell by $4M Y/Y to $184M; R&D spend rose by $7M to $63M. Teradata ended Q1 with $881M in cash and $600M in debt.
- Q1 results, PR
Feb. 12, 2015, 2:22 PM
- A slew of enterprise IT names are outperforming after Cisco beat estimates and respectively reported 10%, 8%, and 7% Y/Y growth in enterprise, SMB, and public sector orders. The Nasdaq overall is up 1%.
- Cisco reported particularly strong figures for enterprise-focused business lines: Switching revenue rose 11%, wireless (Wi-Fi-dominated) 18%, collaboration 10%, and data center (UCS servers) 40%. Service provider demand (orders -1%) remained soft.
- Enterprise standouts include EMC (EMC +2.5%), VMware (VMW +2.3%), SAP (SAP +3.1%), Salesforce.com (CRM +3.8%), NetSuite (N +2.6%), Teradata (TDC +4.6%), Splunk (SPLK +2.5%), Varonis (VRNS +3.9%), Gigamon (GIMO +2.8%), and NetScout (NTCT +2.7%).
- EMC's gains comes in spite of rival NetApp's FQ3 miss and soft FQ4 guidance; share loss to EMC, which has been seeing healthy mid-range and scale-out NAS storage growth, could be partly to blame. VMware is adding to the Wednesday gains seen following a Bernstein upgrade.
- Earlier: Telecom/networking stocks rally thanks to Cisco
Feb. 5, 2015, 2:44 PM
- In addition to \missing Q4 revenue estimates (while slightly beating on EPS), Teradata (NYSE:TDC) has guided for 2015 revenue to be flat to down 2% Y/Y, and for EPS to be in a $2.50-$2.70 range. That's below a consensus for 3% revenue growth and EPS of $2.98. Forex is expected to have a $0.22 EPS impact.
- Product revenue (hardware and software, drives future services revenue) fell 3% Y/Y in Q4 to $360M. Consulting services revenue was flat at $225M, and maintenance services up 2% to $176M. Americas revenue fell 2% to $456M; international was flat at $305M.
- $269M was spent on buybacks, boosting EPS. Gross margin fell 40 bps Y/Y to 56.9%. GAAP operating expenses rose 5% to $267M.
- The numbers are likely to trigger fresh fears about the impact of big data projects relying on Hadoop and/or NoSQL on Teradata's traditional data warehousing offerings. Teradata, which made a string of Hadoop-related acquisitions last year, says it's "increasing investments significantly in 2015 in Big Data Analytics, Marketing Applications, Teradata Cloud, and in demand creation to go broader in the market."
- Q4 results, PR
Feb. 5, 2015, 9:12 AM
Teradata Corp. provides analytic data platforms, consulting services, marketing and analytic applications. Its analytic data platforms are comprised of software, hardware, and related business consulting and support services for data warehousing, active intelligence, big data analytics, and data... More
Industry: Diversified Computer Systems
Country: United States
Other News & PR