Teradata stock jumps as Q2 results top expectations, raises year profit view
Venerable Big Data company Teradata this afternoon reported Q2 revenue and profit that both topped Wall Street's expectations, and hiked its year profit outlook above Wall Street consensus as well.
The report sent Teradata shares up 5% in late trading.
CEO Steve McMillan noted that the company "delivered year-over-year growth in Q2 '21 across key metrics including public cloud ARR, recurring revenue, profitability and free cash flow.
Added McMillan, "We are executing on our cloud-first plan, winning new customers and expanding existing customers as we build on our position as the connected multi-cloud data platform for enterprise analytics.
"Our unrivalled [sic] data management capabilities across multi-cloud and on-premises environments are what customers need today, and we are continuously innovating to address tomorrow's needs. Taken together, we are confident in our strategy for profitable growth as we continue to generate significant shareholder value."
Revenue in the three months ended in June rose to $491 million, yielding a net profit of 74 cents a share.
Analysts had been modeling $475 million and 46 per share.
As in past quarters, the move of its customers to cloud featured in a big way for Teradata.
Teradata said its annualized recurring revenue from cloud computing versions of its software rose by 157%.
Total recurring revenue in the quarter rose by 16%, the company said. The company's total ARR was up 9% at $1.4 billion.
For the current quarter, the company sees EPS in a range of 30 cents to 34 cents, ahead of the average estimate for 30 cents.
For the full year, the company sees and EPS in a range of $1.92 to $1.96. That is up from a prior forecast for $1.61 to $1.67, and ahead of consensus for a $1.69 profit per share.