Teradata reports it doubled cloud customers in 2019, beats Q4 estimates

Fortinet and Verisign also published their fourth quarter financial results on Thursday.

The 40 year-old firm Teradata published strong fourth quarter financial results on Thursday, beating market estimates thanks to its ongoing transition to a recurring revenue model. The company also reported that it closed out 2019 by doubling its cloud customers. 

Non-GAAP Q4 net income was $25 million, or 22 cents per diluted share, on revenue $494 million.

Wall Street was looking for earnings of 16 cents on revenue of $474.6 million. 

"Teradata continues to make solid progress on its business transformation," Interim CEO Vic Lund said in a statement. "Teradata has strong differentiation in delivering the answers our customers need, at the scale they require, and we are resolutely focused on helping customers drive competitive advantage in this world of ever-growing data."

Subscription-based transactions comprised 89 percent of the company's bookings mix in the fourth quarter. Recurring revenue increased 7 percent year-over-year, while annual recurring revenue (ARR) increased 9 percent. 

For the full year, non-GAAP net income was $121 million, or $1.05 per diluted share. Total revenue in FY 2019 was $1.899 billion, compared to $2.164 billion reported in the prior year. 

Subscription-based transactions comprised 88 percent of the company's bookings mix for the full year. Recurring revenue of $1.362 billion increased 9 percent, while ARR at the end of 2019 was $1.427 billion, a 9 percent increase.

Verisign also published its fourth quarter financial report, with mixed results.  

Q4 non-GAAP net income was $154 million, or $1.31 per share, on revenue of $311 million.

Wall Street was looking for earnings of $1.33 on revenue of $310.25 million. 

For the full FY 2019, non-GAAP net income was $631 million, or $5.31 per share, on revenue of $1.23 billion. 

The company ended the fourth quarter with 158.8 million .com and .net domain name registrations in the domain name base, a 3.9 percent increase from a year prior.

"Focused execution yielded another solid quarter that caps off not only a solid year but a strong decade in which we've focused on our core business, expanded the domain name base and returned value to our shareholders," CEO  Jim Bidzos said in a statement. "In 2019 we marked more than 22 years of uninterrupted availability of the Verisign DNS for .com and .net."

Cybersecurity firm Fortinet also published its fourth quarter financial results, beating market estimates.

Non-GAAP diluted net income came to 76 cents per share on revenue of $614.4 million, up 21 percent year-over-year.

Wall Street was looking for earnings of 70 cents on revenue of $602.57 million. 

Product revenue for the quarter was $238.8 million, up 19 percent year-over-year, and billings came to $802.3 million, up 24 percent.

For the full year, Fortinet's non-GAAP EPS was $2.47 on revenue of $2.16 billion, up 20 percent year-over-year.  

"Our advanced architecture with proprietary SPU technology gives us a significant capacity advantage over our competition as indicated by our security compute ratings and enables us to add additional functionality into our products," founder and CEO Ken Xie said in a statement. "Our strong fourth quarter product revenue growth was driven by our ability to include cutting-edge security and networking functionality, including SD-WAN, in our products. We are focused on continuing to gain market share by investing in network security, the build out of our Security Fabric platform, and innovations in the areas of 5G, IoT, edge and cloud security."