Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

__________________

FORM 8-K

__________________

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported): August 5, 2024

TERADATA CORPORATION

(Exact name of registrant as specified in its charter)

Commission File Number 001-33458



Delaware						75-3236470
(State or other jurisdiction of incorporation or organization)						(IRS Employer Identification No.)

17095 Via Del Campo

San Diego, California 92127

(Address of principal executive offices and zip code)

Registrant’s telephone number, including area code: (866) 548-8348

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, $0.01 par value	TDC	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

Teradata Corporation ("Teradata" or the "Company") is furnishing the following information as required under Item 2.02 “Results of Operations and Financial Condition” of Form 8-K. Such information, including Exhibit 99.1 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934.

On August 5, 2024, the Company issued a press release setting forth its second quarter of fiscal year 2024 operating results as well as current outlook estimates for the third quarter of 2024 and for the full-year 2024 (the "Earnings Press Release"). A copy of the Earnings Press Release is attached hereto as Exhibit 99.1 and hereby incorporated by reference.

The Company also posted supplemental material dated August 5, 2024, on the Investor Relations page of its website at investor.teradata.com. Except as specifically noted herein, information on the Company’s website is not, and will not be deemed to be, a part of this Current Report on Form 8-K or incorporated into any other filings the Company may make with the Securities and Exchange Commission.

Item 2.05. Costs Associated with Exit or Disposal Activities. 

On August 5, 2024, the Company announced that it has realigned its sales function and has initiated global restructuring and cost reduction actions to optimize operations, reduce non-revenue generating expenses, and drive efficiencies for long-term growth and profitability (the “Restructuring”). The Restructuring is expected to result in a reduction of the Company’s workforce affecting approximately 9% to 10% of the Company’s global workforce. The majority of the actions related to the Restructuring are expected to be completed by the end of 2024, with remaining actions to be completed by the end of 2025.

The Restructuring is expected to result in ongoing annualized cost savings of between $75 to $80 million, the majority of which are expected to be the result of reductions in operating expenses (the “Savings”). The Savings will primarily be initially realized throughout 2024 and 2025. The Company expects to invest a portion of the Savings back into revenue generating growth areas of the Company starting in 2025.

The Company expects that the majority of the costs relating to the Restructuring will include one-time employee separation benefits, transition support, and other employee-related costs. The Company expects that it will incur total charges related to the Restructuring in the range of approximately $20 to $25 million. The Company expects to recognize these charges in 2024 and 2025, with the majority recorded in 2024. Cash expenditures related to these actions are estimated at approximately $45 to $50 million, of which, approximately $30 to $35 million are expected to occur during 2024.

The estimates of the Savings (and any reinvestment thereof), costs, charges, and cash expenditures that the Company expects to incur in connection with the Restructuring, and the timing thereof, are subject to a number of assumptions, including local law requirements in various jurisdictions, and actual amounts may differ materially from the estimates. In addition, the Company may incur other costs and charges not currently contemplated due to unanticipated events that may occur, including in connection with the implementation of the Restructuring.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits:

The following exhibits are attached with this current report on Form 8-K:



Exhibit No.						Description
99.1						Press Release, dated August 5 , 2024, issued by the Company (Earnings Press Release).

104						Cover Page Interactive Data (embedded within the Inline XBRL document).

Safe Harbor Statement

This Current Report on Form 8-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. Forward-looking statements generally relate to opinions, beliefs, and projections of expected future financial and operating performance, business trends, liquidity, and market conditions, among other things. These forward-looking statements are based upon current expectations and assumptions and often can be identified by words such as “expect,” “strive,” “looking ahead,” “outlook,” “guidance,” “forecast,” “anticipate,” “continue,” “plan,” “estimate,” “believe,” “will,” “would,” “likely,” “intend,” “potential,” or similar expressions. All statements, other than statements of historical facts, included in this Current Report on Form 8-K which address activities, events or developments that the Company expects or anticipates will or may occur in the future, including all statements about the anticipated Savings, costs, charges, reinvestment of a portion of the Savings, and cash expenditures of the Restructuring, and the Company’s financial guidance described herein and in the accompanying press release are forward-looking statements. These forward-looking statements are based upon current expectations and assumptions and involve risks and uncertainties that could cause the Company’s actual results to differ materially. In addition to the factors discussed in this Form 8-K filing, other risks and uncertainties could affect the Company’s future results, and could cause actual results to differ materially from those expressed in such forward-looking statements, including the global economic environment and business conditions in general, including inflation and/or recessionary conditions; the ability of our suppliers to meet their commitments to us; the timing of purchases, migrations, or expansions by our current and potential customers; the rapidly changing and intensely competitive nature of the information technology industry, the data analytics business, and artificial intelligence capabilities; fluctuations in our operating, capital allocation, and cash flow results; our ability to execute and realize the anticipated benefits of our refreshed brand, business transformation program or restructuring and cost saving initiatives, including the Restructuring described herein; risks inherent in operating in foreign countries, including sanctions, foreign currency fluctuations, and/or acts of war; risks associated with data privacy, cyberattacks and maintaining secure and effective products for our customers, as well as, internal information technology and control systems; the timely and successful development, production or acquisition, availability and/or market acceptance of new and existing products, product features and services, including for artificial intelligence; tax rates; turnover of our workforce and the ability to attract and retain skilled employees; protecting our intellectual property; availability and successful execution of new alliance and acquisition opportunities; subscription arrangements that may be cancelled or fail to be renewed; the impact on our business and financial reporting from the implementation of a new ERP system and changes in accounting rules; and other factors described from time to time in Teradata’s filings with the U.S. Securities and Exchange Commission, including its most recent annual report on Form 10-K, and subsequent quarterly reports on Forms 10-Q or current reports on Forms 8-K, as well as Teradata’s annual report to stockholders. Teradata does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

TERADATA CORPORATION

Date: August 5, 2024

By:

/s/ Claire Bramley

Claire Bramley

Chief Financial Officer

Exhibit 99.1


						INVESTOR CONTACT Chad Bennett chad.bennett@teradata.com MEDIA CONTACT Jennifer Donahue jennifer.donahue@teradata.com

Teradata Reports Second Quarter 2024 Financial Results

•Second quarter public cloud ARR of $542 million, an increase of 31% as reported and 32% in constant currency from the prior year period(1)

•Cloud net expansion rate of 123%

•GAAP operating margin was 15.1%, up 800 basis points year-over-year

•Non-GAAP operating margin was 22.0%, up 640 basis points year-over-year(2)

•GAAP diluted EPS was $0.38, up 124% year-over-year

•Non-GAAP diluted EPS was $0.64, up 33% year-over-year(2)

SAN DIEGO – August 5, 2024 -- Teradata (NYSE: TDC) today announced its second quarter 2024 financial results.

“Teradata delivered another quarter of strong growth in Cloud ARR, increasing 32% in constant currency, and we maintained our robust 123% net expansion rate in the cloud,” said Steve McMillan, President and Chief Executive Officer, Teradata. “We are taking decisive action across the business to improve our execution and efficiency to reaccelerate profitable growth. The underlying fundamentals of our business are strong. In a world where analytics and AI underpin a company’s success, our hybrid cloud platform and foundation of trusted data and analytics are what they need to consistently deliver value to their business.”

Second Quarter 2024 Financial Highlights Compared to Second Quarter 2023

•Public cloud ARR increased to $542 million from $414 million, an increase of 31% as reported and 32% in constant currency(1)

•Total ARR decreased to $1.465 billion from $1.523 billion, a decrease of 4% as reported and 3% in constant currency(1)

•Recurring revenue was $368 million versus $371 million a decrease of 1% as reported and an increase of 2% in constant currency (1)

•Total revenue was $436 million versus $462 million, a decrease of 6% as reported and 3% in constant currency(1)

•Recurring revenue was 84% of total revenue versus 80%

•GAAP gross margin was 60.8% versus 59.7%

•Non-GAAP gross margin was 62.2% versus 60.6%(2)

•GAAP operating income was $66 million versus $33 million

•Non-GAAP operating income was $96 million versus $72 million(2)

•GAAP diluted EPS was $0.38 versus $0.17 per share

•Non-GAAP diluted EPS was $0.64 versus $0.48 per share(2)

•Cash flow from operations was $43 million compared to $49 million

•Free cash flow was $39 million compared to $46 million(3)

Restructuring Action

Teradata announced that it has realigned its sales function and initiated global restructuring and cost reduction actions to optimize operations, reduce non-revenue generating expenses, and drive efficiencies for long-term growth and profitability, resulting in a reduction of approximately 9% to 10% of its global workforce that is expected to result in:

•Operating expenses reducing by approximately $75M to $80M on an annualized run rate. Teradata expects to re-invest a portion of this amount back into revenue generating growth areas.

•Total cash expenditures from severance payments of approximately $45M to $50M, of which payments in 2024 are approximately $30M to $35M. The remaining payments will be made in 2025.

•Non-GAAP operating profit to benefit by approximately $15M to $20M in 2024.

Outlook

For the third quarter of 2024:

•GAAP diluted EPS is expected to be in the range of $0.14 to $0.18 per share

•Non-GAAP diluted EPS is expected to be in the range of $0.54 to $0.58 per share(2)

For the full-year 2024, Teradata updates the following ranges:

•Public cloud ARR growth of 28% to 32% year-over-year, in constant currency(4)

•Total ARR in the range of -2% to -4% year-over-year, in constant currency(4)

•Recurring revenue in the range of flat to -2% year-over-year, in constant currency(4)

•Total revenue in the range of -2% to -4% year-over-year, in constant currency(4)

•Cash flow from operations of $290 million to $310 million

•Free cash flow of $270 million to $290 million(3)

•GAAP diluted EPS is expected to be in the range of $0.89 to $0.95 per share

•Non-GAAP diluted EPS is expected to be in the range of $2.20 to $2.26 per share(2)

Earnings Conference Call

A conference call is scheduled for today at 2:00 p.m. PT to discuss the Company’s second quarter 2024 results, 2024 outlook, and provide a business and financial update. Access to the conference call, as well as a replay of the conference call, is available on Teradata’s website at investor.teradata.com.

Supplemental Financial Information

Additional information regarding Teradata’s operating results is provided below as well as on Teradata’s website at investor.teradata.com.

1.The impact of currency is determined by calculating the prior-period results using the current-year monthly average currency rates. See the foreign currency fluctuation schedule, which is used to determine revenue on a constant currency (“CC”) basis, on the Investor Relations page of the Company’s website at investor.teradata.com


Revenue
(in millions)
	For the Three Months ended June 30
	2024		2023		% Change as Reported	% Change in CC
Recurring revenue	$	368	$	371	(1)%	2%
Perpetual software licenses, hardware and other	5		13		(62)%	(58)%
Consulting services	63		78		(19)%	(15)%
Total revenue	$	436	$	462	(6)%	(3)%

Americas	$	250	$	268	(7)%	(4)%
EMEA	116		118		(2)%	2%
APJ	70		76		(8)%	(4)%
Total revenue	$	436	$	462	(6)%	(3)%

Revenue
(in millions)
	For the Six Months ended June 30
	2024		2023		% Change as Reported	% Change in CC
Recurring revenue	$	756	$	760	(1)%	1%
Perpetual software licenses, hardware and other	13		26		(50)%	(49)%
Consulting services	132		152		(13)%	(9)%
Total revenue	$	901	$	938	(4)%	(2)%

Americas	$	527	$	560	(6)%	(4)%
EMEA	241		235		3%	4%
APJ	133		143		(7)%	(2)%
Total revenue	$	901	$	938	(4)%	(2)%


	As of June 30
	2024		2023		% Change as Reported	% Change in CC
Annual recurring revenue*	$	1,465	$	1,523	(4)%	(3)%
Public cloud ARR**	$	542	$	414	31%	32%

The impact of currency on ARR is determined by calculating the prior period ending ARR using the current period end currency rates.

* Annual recurring revenue ("ARR") is defined as the annual value at a point in time of all recurring contracts, including subscription, cloud, software upgrade rights and maintenance. Total ARR does not include managed services and third-party software. The Company believes this is a useful metric to investors as it demonstrates progress toward achieving our strategic objectives as outlined in the Form 10-K and Form 10-Q.

** Public cloud ARR is defined as the annual value at a point in time of all contracts related to public cloud implementations of Teradata VantageCloud and does not include ARR related to private or managed cloud implementations. The Company believes this is a useful metric to investors as it demonstrates progress toward achieving our strategic objectives as outlined in the Form 10-K and Form 10-Q.

2.Teradata reports its results in accordance with GAAP. However, as described below, the Company believes that certain non-GAAP measures such as free cash flow, non-GAAP gross profit, non-GAAP operating income, non-GAAP net income, and non-GAAP diluted earnings per share, all of which exclude certain items, and which may be reported on a constant currency basis, are useful for investors. Our non-GAAP measures are not meant to be considered in isolation to, as substitutes for, or superior to, results determined in accordance with GAAP, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Each of our non-GAAP measures do not have a uniform definition under GAAP and therefore, Teradata’s definition may differ from other companies’ definitions of these measures.

The following tables reconcile Teradata’s actual and projected results and EPS under GAAP to the Company’s actual and projected non-GAAP results and EPS for the periods presented, which exclude certain specified items. Our management internally uses supplemental non-GAAP financial measures, such as gross profit, operating income, net income, and EPS, excluding certain items, to understand, manage and evaluate our business and support operating decisions on a regular basis. The Company believes such non-GAAP financial measures (1) provide useful information to investors regarding the underlying business trends and performance of the Company’s ongoing operations, (2) are useful for period-over-period comparisons of such operations and results, that may be more easily compared to peer companies and allow investors a view of the Company’s operating results excluding stock-based compensation expense and special items, (3) provide useful information to management and investors regarding present and future business trends, and (4) provide consistency and comparability with past reports and projections of future results.


	For the Three Months							For the Six Months
(in millions, except per share data)	ended June 30							ended June 30
Gross Profit:	2024			2023			% Chg.	2024			2023			% Chg.
GAAP Gross Profit	$	265		$	276		(4)%	$	549		$	578		(5)%
% of Revenue	60.8		%	59.7		%		60.9		%	61.6		%

Excluding:
Stock-based compensation expense	5			4				9			8
Reorganization and transformation cost	1			—				2			—

Non-GAAP Gross Profit	$	271		$	280		(3)%	$	560		$	586		(4)%
% of Revenue	62.2		%	60.6		%		62.2		%	62.5		%

Operating Income
GAAP Operating Income	$	66		$	33		100%	$	114		$	112		2%
% of Revenue	15.1		%	7.1		%		12.7		%	11.9		%

Excluding:
Stock-based compensation expense	29			35				63			63

Reorganization and transformation cost	1			4				8			5

Non-GAAP Operating Income	$	96		$	72		33%	$	185		$	180		3%
% of Revenue	22.0		%	15.6		%		20.5		%	19.2		%

Net Income
GAAP Net Income	$	37		$	17		118%	$	57		$	57		—%
% of Revenue	8.5		%	3.7		%		6.3		%	6.1		%

Excluding:
Stock-based compensation expense	29			35				63			63

Reorganization and transformation cost	1			4				8			5



Argentina Blue Chip Swap	—			—				2			—
Income tax adjustments (i)	(5)			(7)				(11)			(13)
Non-GAAP Net Income	$	62		$	49		27%	$	119		$	112		6%
% of Revenue	14.2		%	10.6		%		13.2		%	11.9		%


	For the Three Months				For the Six Months
	ended June 30				ended June 30				2024 Outlook
Earnings Per Share:	2024		2023		2024		2023		Q3	FY
GAAP Earnings Per Share	$	0.38	$	0.17	$	0.58	$	0.55	$0.14 - $0.18	$0.89 - $0.95
Excluding:
Stock-based compensation expense	0.30		0.34		0.63		0.61		0.31	1.26

Reorganization and transformation cost	0.01		0.04		0.08		0.05		0.18	0.29


Argentina Blue Chip Swap	—		—		0.02		—		—	0.02
Income tax adjustments(i)	(0.05)		(0.07)		(0.11)		(0.13)		(0.09)	(0.26)

Non-GAAP Diluted Earnings Per Share	$	0.64	$	0.48	$	1.20	$	1.08	$0.54 - $0.58	$2.20 - $2.26

i.Represents the income tax effect of the pre-tax adjustments to reconcile GAAP to Non-GAAP income based on the applicable jurisdictional statutory tax rate of the underlying item. Including the income tax effect assists investors in understanding the tax provision associated with those adjustments and the effective tax rate related to the underlying business and performance of the Company’s ongoing operations. As a result of these adjustments, the Company’s non-GAAP effective tax rate for the three months ended June 30, 2024, was 27.1% and June 30, 2023, was 22.2%. For the six months ended June 30, 2024, was 25.6% and June 30, 2023, was 25.3%.

3.As described below, the Company believes that free cash flow is a useful non-GAAP measure for investors. Free cash flow does not have a uniform definition under GAAP in the United States and therefore, Teradata's definition may differ from other companies' definitions of this measure. Teradata defines free cash flow as cash provided by/used in operating activities, less capital expenditures for property and equipment and additions to capitalized software. Teradata’s management uses free cash flow to assess the financial performance of the Company and believes it is useful for investors because it relates the operating cash flow of the Company to the capital that is spent to continue and improve business operations. In particular, free cash flow indicates the amount of cash generated after capital expenditures which can be used for among other things, investments in the Company's existing businesses, strategic acquisitions, strengthening the Company’s balance sheet, repurchase of Company stock and repay the Company’s debt obligations. Free cash flow does not represent the residual cash flow available for discretionary expenditures since there may be other non-discretionary expenditures that are not deducted from the measure. This non-GAAP measure should not be considered as a substitute for, or superior to, cash flows from operating activities under GAAP.


	For the Three Months				For the Six Months
(in millions)	ended June 30				ended June 30				Outlook
	2024		2023		2024		2023		2024
Cash provided by operating activities (GAAP)	$	43	$	49	$	70	$	158	$290 to $310



Less total capital expenditures	(4)		(3)		(10)		(7)		(~20)


Free Cash Flow (non-GAAP measure)	$	39	$	46	$	60	$	151	$270 to $290

4.We are providing an outlook for the 2024 growth rates for public cloud ARR, total ARR, recurring revenue, and total revenue in constant currency to provide better visibility into the underlying growth of the business. Teradata calculates public cloud ARR and total ARR in constant currency by calculating the prior period ending public cloud ARR or total ARR, as applicable, using the current period end currency rates. It is impractical to provide a schedule on currency period end rates at a future point in time. Teradata calculates recurring revenue and total revenue in constant currency by using the prior-period results with the current-year monthly average currency rates. See the foreign currency fluctuation schedule on the Investor Relations page of the Company’s website at investor.teradata.com to calculate the anticipated impact of currency on the revenue outlook.

Note to Investors

This release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to opinions, beliefs, and projections of expected future financial and operating performance, business trends, liquidity, and market conditions, among other things. These forward-looking statements are based upon current expectations and assumptions and often can be identified by words such as “expect,” “strive,” “looking ahead,” “outlook,” “guidance,” “forecast,” “anticipate,” “continue,” “plan,” “estimate,” “believe,” “will,” “would,” “likely,” “intend,” “potential,” or similar expressions. Forward-looking statements in this release include our 2024 third quarter and full year financial guidance and the 2024 restructuring actions and related anticipated cost savings, charges, savings reinvestment, and cash expenditures. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially, including those relating to: the global economic environment and business conditions in general, including inflation and/or recessionary conditions; the ability of our suppliers to meet their commitments to us; the timing of purchases, migrations, or expansions by our current and potential customers; the rapidly changing and intensely competitive nature of the information technology industry, the data analytics business, and artificial intelligence capabilities; fluctuations in our operating, capital allocation, and cash flow results; our ability to execute and realize the anticipated benefits of our refreshed brand, business transformation program or restructuring and cost saving initiatives, including the 2024 restructuring actions noted in this release; risks inherent in operating in foreign countries, including sanctions, foreign currency fluctuations, and/or acts of war; risks associated with data privacy, cyberattacks and maintaining secure and effective products for our customers, as well as, internal information technology and control systems; the timely and successful development, production or acquisition, availability and/or market acceptance of new and existing products, product features and services, including for artificial intelligence; tax rates; turnover of our workforce and the ability to attract and retain skilled employees; protecting our intellectual property; availability and successful execution of new alliance and acquisition opportunities; subscription arrangements that may be cancelled or fail to be renewed; the impact on our business and financial reporting from the implementation of a new ERP system and changes in accounting rules; and other factors described from time to time in Teradata’s filings with the U.S. Securities and Exchange Commission, including its most recent annual report on Form 10-K, and subsequent quarterly reports on Forms 10-Q or current reports on Forms 8-K, as well as Teradata’s annual report to stockholders. Teradata does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

About Teradata

At Teradata, we believe that people thrive when empowered with trusted information. We offer the most complete cloud analytics and data platform for AI. By delivering harmonized data and trusted AI, we enable more confident decision-making, unlock faster innovation, and drive the impactful business results organizations need most. See how at Teradata.com

# # #

The Teradata logo is a trademark, and Teradata is a registered trademark of Teradata Corporation and/or its affiliates in the U.S. and worldwide.

SCHEDULE A

TERADATA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in millions, except per share amounts - unaudited)


	For the Period Ended June 30
	Three Months								Six Months
	2024			2023			% Chg		2024			2023			% Chg
Revenue
Recurring	$	368		$	371		(1)	%	$	756		$	760		(1)	%
Perpetual software licenses, hardware and other	5			13			(62)	%	13			26			(50)	%
Consulting services	63			78			(19)	%	132			152			(13)	%
Total revenue	436			462			(6)	%	901			938			(4)	%
Gross profit
Recurring	258			264					534			555
% of Revenue	70.1		%	71.2		%			70.6		%	73.0		%
Perpetual software licenses, hardware and other	—			1					—			3
% of Revenue	—		%	7.7		%			—		%	11.5		%
Consulting services	7			11					15			20
% of Revenue	11.1		%	14.1		%			11.4		%	13.2		%
Total gross profit	265			276					549			578
% of Revenue	60.8		%	59.7		%			60.9		%	61.6		%

Selling, general and administrative expenses	131			167					292			320
Research and development expenses	68			76					143			146


Income from operations	66			33					114			112
% of Revenue	15.1		%	7.1		%			12.7		%	11.9		%

Other expense, net	(11)			(9)					(27)			(30)

Income before income taxes	55			24					87			82
% of Revenue	12.6		%	5.2		%			9.7		%	8.7		%

Income tax expense	18			7					30			25
% Tax rate	32.7		%	29.2		%			34.5		%	30.5		%

Net income	$	37		$	17				$	57		$	57
% of Revenue	8.5		%	3.7		%			6.3		%	6.1		%

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

SCHEDULE B

TERADATA CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions - unaudited)


	June 30, 2024		December 31, 2023		June 30, 2023
Assets
Current assets
Cash and cash equivalents	$	301	$	486	$	504
Accounts receivable, net	248		286		265
Inventories	22		13		9
Other current assets	94		84		102
Total current assets	665		869		880
Property and equipment, net	209		239		250
Right of use assets- operating lease, net	7		9		11
Goodwill	395		398		390
Capitalized contract costs, net	52		68		76
Deferred income taxes	206		221		205
Other assets	88		69		57
Total assets	$	1,622	$	1,873	$	1,869

Liabilities and stockholders' equity
Current liabilities
Current portion of long-term debt	$	25	$	19	$	6
Current portion of finance lease liability	62		66		70
Current portion of operating lease liability	4		6		7
Accounts payable	85		100		113
Payroll and benefits liabilities	85		130		100
Deferred revenue	529		570		526
Other current liabilities	99		105		88
Total current liabilities	889		996		910
Long-term debt	467		480		492
Finance lease liability	48		63		70
Operating lease liability	4		6		8
Pension and other postemployment plan liabilities	93		102		96
Long-term deferred revenue	10		22		7
Deferred tax liabilities	7		8		6
Other liabilities	29		61		62
Total liabilities	1,547		1,738		1,651
Stockholders' equity

Common stock	1		1		1
Paid-in capital	2,131		2,074		2,002
Accumulated deficit	(1,924)		(1,811)		(1,668)
Accumulated other comprehensive loss	(133)		(129)		(117)
Total stockholders' equity	75		135		218
Total liabilities and stockholders' equity	$	1,622	$	1,873	$	1,869

SCHEDULE C

TERADATA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions - unaudited)


	For the Period Ended June 30
	Three Months				Six Months
	2024		2023		2024		2023
Operating activities
Net income	$	37	$	17	$	57	$	57
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization	26		31		53		59
Stock-based compensation expense	29		35		63		63
Deferred income taxes	(4)		(5)		8		2
Loss on Blue Chip Swap	1		—		3		—

Changes in assets and liabilities:
Receivables	63		76		38		99
Inventories	(6)		(2)		(9)		(1)
Current payables and accrued expenses	(34)		11		(64)		(30)
Deferred revenue	(47)		(105)		(53)		(64)
Other assets and liabilities	(22)		(9)		(26)		(27)
Net cash provided by operating activities	43		49		70		158
Investing activities
Expenditures for property and equipment	(3)		(2)		(9)		(6)
Additions to capitalized software	(1)		(1)		(1)		(1)




Business acquisitions and other investing activities, including loss on Blue Chip Swap	(1)		—		(3)		—
Net cash used in investing activities	(5)		(3)		(13)		(7)
Financing activities
Repurchases of common stock	(47)		(70)		(171)		(154)

Repayments of long-term borrowings	(6)		—		(6)		—


Payments of finance leases	(17)		(21)		(37)		(41)
Other financing activities, net	—		6		(6)		(1)
Net cash used in financing activities	(70)		(85)		(220)		(196)
Effect of exchange rate changes on cash and cash equivalents	(5)		(10)		(22)		(20)
Decrease in cash, cash equivalents and restricted cash	(37)		(49)		(185)		(65)
Cash, cash equivalents and restricted cash at beginning of period	338		555		486		571
Cash, cash equivalents and restricted cash at end of period	$	301	$	506	$	301	$	506


Supplemental cash flow disclosure:

Non-Cash investing and financing activities:
Assets acquired by finance leases	$	7	$	29	$	18	$	59
Assets acquired by operating leases	$	1	$	3	$	1	$	4

SCHEDULE D

TERADATA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions - unaudited)


	For the Three Months Ended June 30								For the Six Months Ended June 30
	2024			2023			% Change As Reported	% Change Constant Currency(2)	2024			2023			% Change As Reported	% Change Constant Currency(2)
Segment Revenue
Americas	$	250		$	268		(7)%	(4)%	$	527		$	560		(6)%	(4)%
EMEA	116			118			(2)%	2%	241			235			3%	4%
APJ	70			76			(8)%	(4)%	133			143			(7)%	(2)%
Total segment revenue	436			462			(6)%	(3)%	901			938			(4)%	(2)%

Segment gross profit
Americas	159			164					336			357
% of Revenue	63.6		%	61.2		%			63.8		%	63.8		%
EMEA	71			73					150			147
% of Revenue	61.2		%	61.9		%			62.2		%	62.6		%
APJ	41			43					74			82
% of Revenue	58.6		%	56.6		%			55.6		%	57.3		%
Total segment gross profit	271			280					560			586
% of Revenue	62.2		%	60.6		%			62.2		%	62.5		%

Reconciling items(1)	(6)			(4)					(11)			(8)
Total gross profit	$	265		$	276				$	549		$	578
% of Revenue	60.8		%	59.7		%			60.9		%	61.6		%

(1) Reconciling items include stock-based compensation, amortization of acquisition-related intangible assets and acquisition, integration and reorganization-related items.
(2) The impact of currency is determined by calculating the prior period results using the current-year monthly average currency rates.

Document and Entity Information Document	Aug. 05, 2024
Cover [Abstract]
Document Type	8-K
Document Period End Date	Aug. 05, 2024
Entity Registrant Name	TERADATA CORP /DE/
Entity File Number	001-33458
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	75-3236470
Entity Address, Address Line One	17095 Via Del Campo
Entity Address, City or Town	San Diego
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92127
City Area Code	866
Local Phone Number	548-8348
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	TDC
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Entity Central Index Key	0000816761
Amendment Flag	false