Teradata (TDC) 7 May 202020 Q1 Earnings call transcript

Thank you for standing by, and welcome to the Q1 2020 Teradata's Earnings Conference call. [Operator instructions]

I would now like to hand the conference over to Nabil Elsheshai, SVP, Corporate Development & Investor Relations. Please go ahead.

Good afternoon and welcome to Teradata's 2020 first quarter earnings call. CFO President by Executive Revenue Scott then Culhane, Interim today's will Officer; Teradata's our Mark followed discuss call Brown, Teradata's Lund, and Officer Chief lead and financial Vic results. then will Teradata's Chief

information includes forward-looking other are considered Our discussion and that today forecasts statements.

to could statements results cause reflect subject to outlook, risks of differ they current these number and actual While are materially. our a uncertainties that

and filed XX-K in discussed are today's release, with in no the the update obligation recent ended next expected SEC SEC duty Form These XXst risk factors to undertake the our quarter the Teradata's earnings days. for with XX-Q XXXX, most statements. We forward-looking in or few March to the be

measures, expense items as as and release. items On revenue today's call, free other we and We'll non-GAAP comparisons. flow will in financial exclude stock-based also such which be our compensation such items cash non-GAAP discussing described special other earnings currency discuss such constant certain

is reconciliation investor.teradata.com. A is page call at our non-GAAP website A website. today of Investor our later of of included to this available on in the will accessible conference replay release, on Relations which earnings our be GAAP

call will I Vic. And now over to turn the

now next first as am Board be McMillan pleased by Thank CEO to you, Nabil. of I a Steve one to of Directors and elected the warm next Because the to have of I seen you all the CEO. extend has our welcome Teradata President Teradata. am sure

announcement, our of some reasons included directors selection. an selection for a covered extensive unanimous of Gianoni, of search was that Chairman today's qualified In Steve's by many following Board the the board full the candidates. Steve Mike

initiatives. has been ranging with he own. leadership relevant main has focus most focused which credentials He the to issues leads as history one He key our led always one is a operational Teradata's of brings of transformation successful strengths. with with business our customer in efforts background wide execution which And a of outstanding importantly,

Teradata has to rally proven Steve and and the our him. style we the and support achieve team will open as customer together sure product that bring needs transformation, innovation a success, results Teradata and return outstanding and collaborative precisely around is people has a leader growth. leadership accelerate ability to I to am He

Turning COVID-XX. to where are every impacted other the and we by today, in like we Europe company

are of building we strong relationships, our However, in helping mission-critical delivering is challenging these that years position long-standing our analytics customer times. seeing of us

are base. hear from You and we while a from now impacted, Scott will solid are working Mark, being we

current the impact the financial what to believe deliver will we'll in move of we we continuing our COVID-XX. past reasonable the we as Given even environment, a performance same business at make better invest while time

progress our cloud. need with our to make a stronger As even that calls I around the as last the transformation an on reminder, we cloud, have efforts the are position competitor these we to areas, to accelerating in outlined two well underway us

caused of building success by consumption our share these continues. on of against Driving interruptions by and expanding our strong course. our examples continued opportunities the number customer Scott advantage a will Highly partnerships and the market progress pandemic, focus

importantly, together working and focus strong is collaborative ELT well-coordinated have a a those. game in cohesive Most we and as that common built

of been is XX have and we this You all team years say of best can my know association the around that upgraded Teradata. in with number our have leaders I a I

measured I business to driving and about group be we quickly. is easy, help decisions top-notch of to executives am not going that we rational these while Steve know allows this have plans know us extraordinary that place our confident this I in through year ramp to will And make times.

folks. want to I of in Teradata the our my move pride resilience to express we Scott, Before

and health COVID-XX the to took our With outbreak, to remote our environment the we people of nearly actions a people. for and shifted all safety protect work of immediate

on kept of great team Teradata priorities. our our during this, And all executing

to some will You'll of over I about Mark. from our hear Scott. actions With both Scott it turn and that,

And the with the you, going and to areas. of as How Vic. I'm have we into good for leaned how our the this everyone. and insight afternoon, and ahead year. we at time progress what customers quarter provide look the commitment view unwavering three remainder we for COVID-XX, we're Today Thank an kept and effect in throughout seeing to customers

will perspective looking of I market ever the the It the opposite of one the back Year will New end. from go-to changing financial organization. rapidly the seen. at have quarter was address I most Let's with poles of beginning quarters from our start this quarter the specific. of Mark cover a

dramatically with its We motions for good spread started global the sales year pipeline solid shifted as the customers on XXXX, footings outbreak in to address made relentless and track the their pandemic. we globe were were to and deals our quarter. countries March, business changed And underway on a and COVID-XX go good the the began for Then into around delayed priorities lockdown.

to we and our been can across We quickly and customers dimensions. needs to its and In three our leveraging customers adapted virtually learn insight. supporting accomplished to our what commitments heritage, their line strong data addressing teams be are when reasserted with help collaborating had customers continuing and

and consulting pivoted and us performance and know confirm immediately our availability our would delivering we remotely level that and we through with support continue of for. the at customers service customers ongoing high services First, support

protected both and the Just in our customers that way employees. our health the of

against this Second, we humanities are had on customers many who in the frontline virus. battle

numerous Pharma, Government Healthcare, in For Logistics, Agencies. and example

For them running insight their and do their keep need to the doing vaccine, leverage best, they we and supply these develop get are helping health the teams to tests of what data protect organizations, we population.

are help activities where deep offered and our hold. the put success It just have in working we the is those with who come relationships It long seen to through greatest hard is of backdrop standing sales number customers their and we this third, And commitment to load for on this forefront. that to manage customers our business for closures. arena have against

we customers them to Teradata ready again lead efforts their in over time. and these they will of Our with to rebuilding focus teams help believe and stand are staying consumption greater business. their turn We make these to contact when

of are cloud Customers advantage continued we our portfolio and vantage taking hybrid our platform. are of seeing adoption

their and As cloud value access bought AWS hybrid in the on-premises, see organizations being in its of to all environments. powerful Vantage on at and is scale. Azure, data

vantage wins leveraging to to and to of development help AWS Teradata put medicines number customers pharmaceutical company continue our lifesaving we challenges COVID-XX. global on bring to to rest market. A its the where Teradata A vaccines by to brought migrated on saw are environment

operations dramatic as major in and handle A moved U.S. throughout of the home. to Telco increase from saw schooling parts working to all people queries a surge its

This relying for capacity analytics mission purchase on demand. pandemic. the to operational and customer recognize to nation's the additional as user those communications during infrastructure And and customer support critical ensure the care efficiency it sustain increase

of purchased increasing directly it to Our to related enable leading provider to capacity workloads manage additional facilities, healthcare pandemic. the

analytics virus are the avert for chain and platform address organizations analytics data supply U.S. and ventilators, creating and to outcome trending and shortages. actionable this CDC including help for Third data devastating PPE baseline to analytics modeling clinical staffing the to go

we chain help directly its demand. stress supply Also, White both zero being U.S. by agencies vantage learning effect the chain on private support public the supermarket A COVID-XX U.S. to a of House machine that the in were and and and advanced engines to would sequel, the with added pandemic. graph alleviate

Vantage most also at was pinpoint in populations analytics where a outbreaks will new to risk needed help predict which occur, estimate likely leveraging non-COVID We're specific be resources geography. wins. will in and brought

recognition extended investments For example, analytic of Teradata. as Teradata's of a enterprise vital in its NortonLifeLock ecosystem in partnership has its components

to and power provide vantage of customer financial deliver leverages robust complete for view critical the decision a NortonLifeLock analysis making. XXX

Teradata services the And U.S. laundering. the position and greater in its to credit advanced of institution threat across and addressing cloud analytics its financial ever-growing entire the largest of ecosystem for environment drive scoring use one including intelligent cases it the in diversified money upgraded

yet Looking deal. relationship and great customers. teams pandemic is and incumbency sales and the ahead, working unknown a the their these, to resilient times are hard strong world, our our plans to value provide course like runs execute its matter In as existing much throughout

seeing Teradata. by hold migrating the cloud, to due and the complexity put choice cost of customers some to of on provide are power cloud projects which We highlights the

holding is and in high engagement the pipeline volume has Our been very of thus far. QX

see quickly It's remote our been how pivot teams encouraging sales to to been model. to able have

We these will cloud activities hard However, transactions. demand into fully driving uncertainty, turn and our given for predict focused vantage solutions. on remain the to when it's

reimagine our annual our and We demand redefine into protect with to have a our digital advance customer customers, XXX% the and quickly conference year. and postponed socially to vantage our assertively customers and we To prospects. stance we next have of responsible employees and taken health experiences events awareness

and leader risk face-to-face with executing developed prospects interact Our restrictions Teradata learning briefing and affected immersive meeting. virtual or events to our allow to we thought travel are have in Further, without sales from environment by being momentum, keep virtual an centers. customers

we together experts who our dialogue since executive engineering leaders want in from in executives. we to the and outstanding have Teradata's weeks customers a Teradata pleased launched few uninterrupted and digital briefings, I'm environment, with our Bringing virtual to with customers that product fully report had continue reaction

they greatest them objective their Each our value customers' visit at as data scale get is business need. the tailored to meet help the from we

on and ISVs. team And our We partnership SIs also planning our ecosystem. for to & regional our relationship mission the and has developing join account continued remain future partner leading with strengthen with building engaging

growth but This remarks focus ended effort time shareholders. an with driving positive we Teradata for traction last customers is experience quarter for built executing and seeing strategic our I around comments delivering exceptional and our will for over are on be and value here. my

of had focus our COVID-XX onset sharpened into business. The

affected and our customers of and priority safety keep and top all our as serve pandemic we continue by are our employees the We as we'll customers. to health the our

put problem In win this, and Teradata need like of organizations to times or against arena. their global excels peace humanities to in data help in at service all survive into them when this

the Mark. now, And I you. hand Thank will to call

afternoon, And to thinking Scott. for our we discussing are and I you, we QX, far would in QX impacted how the the business by of what are good in about begin seeing XXXX. like rest how COVID-XX business Thank everyone. so

proud is to support of I extremely has our of our other. Vic of It of I reiterate our and crisis how efforts company in Scott like energy, enthusiasm, each responded and First all, the inspiring. and employees said. customers would truly the what to am and

business we're January here. and regard tracking coming sales with to had in Outside kick-off our out China, great our deal of to Now, trends We off-the-record. our quarter and a solid of business was QX. of a in momentum

quarter. the we know, two of last of a significant you weeks the amount as of in However, do last the business our month

a during our extraordinary we impacted engagement fall geographies, the shelter other restrictions ability place out close negatively conduct of to of and And key reported situation substantial quarter our off instituted time saw usual. and our in were directly business as the metrics. which influenced outcome across that This affecting as

our loan that has transitioning been large and been had we legacy recurring in the years. quarter, a the proceedings free Teradata retailer has from credit Here, flow, card vocal last that revenue. oriented several about primarily of and a growth, for Coming into cash company some term bankruptcy financial

opportunities with didn’t plan and reported due our the to recurring COVID-XX, in revenue. included this quarter. impacting offset incremental growth activity But they materialize, to of Our the known ARR plenty entirely uncertainties

inability revenues completed QX in compared an with and combined renewals a these resulted X XXXX. all April. decline transactions manner, in get in of sequential foreign over Several closed This to in recurring to headwind in a million timely currency

far second second of retailer we know see the seen a but not the in We quarter. from churn will through in magnitude impact no we going the material quarter churn of forward unexpected thus and bankruptcy this incremental increase the other some going incremental have proceedings in

a higher are of composition us we will revenue, use to All as moving preferred shortly. given positive it I forward. base the of CapEx customers few to expected for than At purposes. Particularly, was speak customer execute to which perpetual our which the

through that in. this the signs we the are might some trend And COVID-XX environment potentially we see year continue given

it revenue, consulting for negatively transition the impacted place. from home and As shelter to was also during and work

And some projects were suspended and or delayed.

points year-over-year mix, basis margins margin higher gross revenue. XXX increased continued a recurring to due All

markets to greater points On revenues hedge shift mix the the and were other which down recurring XXX we than developing headwinds. as over currency margins increased FX basis revaluation the margin of incremental lower impact due hand, the cloud rates sudden in of gross cannot

months. We remain next substantially and our pleased XX in margins cloud with gross expect progress to the over to cloud XX the expand

with even to be up margins continue total also expect to modest increase revenue year-over-year the perpetual We assumptions. gross in

cost R&D QX. initiatives and were related a of actions took Turning to certain expenses reprioritizing the expenses. XX% as we down in result

to slightly planning the accelerate that to spend spend cloud efforts. likely reallocate And are is up just be We for our flat to R&D year.

SG&A The success can model are expense partners our given to as during investments expense amortization to as increase making well attributed we transition in XXXX. and in commissions subscription a be of customer

For we be mid-single SG&A low digit. year, expect up the to to

be Taken digit. up together, OpEx low-single we expect to

have we plans in of place what modify in if However, our trends this a to pipeline. number versus contingency weaken we demand see

Turning the resulting missing XX forecast in cash quarter collection to cash million. clearly a cash flow, delays our we in free significantly and COVID-XX experienced by from collection late over

flow in negatively free impacted quarter. And cash that the

and some pandemic customers to we have However, largely quarter through vertical we end, support request we our accommodated extended experienced from requests payment those for have that trying April. have customers in substantially in these times. terms in to experienced collected these Subsequent payments

balance sheet. the to Turning

addition the billings XX in due an This, impact closing impact and revenue nearly to delays on collections in companies to see And in as getting from a work addition enable late had impact revenue March. CapEx, DSO, customers on deals approved did negative transition differed to invoicing. the home cash deferred we In to to million. on POs of

having on base difficult not as is Our the in largest customer new last for our attract consists is it the at the on years growth of not existing world. companies And most year has enterprise and SMB in They customer the logos customers environment to which current are base stable customers. few prospects of our the best. been predicated transformation, our for

investors with but our the to We base. by vertical revenue and help don’t understand we provide normally business times, extraordinary breakout given the transparency dynamics customer want additional to

have transportation retail, sectors certain We verticals. travelling hospitality large customers and of in

COVID-XX. particularly Which have hit bit hard been

of XXXX these However, revenue. than XX% less customers our represented

and On healthcare up the make remained government, of XX% customers our have other solid. hand, and verticals financial revenue services, over these

provide our although business seen remains impact, to overall or minor our robust in to customers. Our our support we ability been has have not and supply product chain impaired deliver

of and not In to upcoming our quarters deliver ability addition, customers. expect disruption plans to see we place and a in do number significant have to for contingency our

on. roughly currently Our financial we excess position XXX a plan to our within remains It's significant million covenants in debt very million strong. and don’t cash, which XXX room revolver draw

our we support have to plenty of addition, access In to to continue programs. credit capitalized lease

it's notice. QX We believe our $XX.XX share further do X.X approximately shares an back we until to However, buyback or suspend bought XX million of wise at program in million. average price

expected approximately no weighted result, full-year a million assuming is As average share shares, repurchases. XXX share our count additional

to take activity activity to have a this the Through the remainder get level virtually the the for of with high we of deals April, of QX. difficult albeit rates very and engagement expected our longer a year. turning predict outlook make seen of our or for and conditions level proposals high we to deal and Now, current customers closed done. to Obviously,

this incremental time. provide confidence of in the during our business model resilience unprecedented it But

also moved our at remote on of project to majority latest been project seen and deliver have able the We to consulting the have plan.

quickly impressed organization been how able pivot environment their proud was our agreement. have ability remote consulting to to are We to deliver our work existing on by of and our

through consulting getting have will projects year. focus we to revenues or consulting impact while expect see delayed significantly cancelled and this on our customers However, the expected new And being seen to continue our pandemic. for

our We we despite disruptions pipeline have come the only have seen it down our scrubbed and to business, modestly.

guidance, so original our supportive remains less of pushes. ARR with it And growth

uncertainty annual it's macro guidance. previously the our to believe in second the given wise However, announced we half, withdraw

the on year reassess progresses. will keep you this call and updated our as QX We

of that was the flow see timing will the on confident free remain solid the we still full-year such year. of versus year shape for cash prior the magnitude the growth, revenue bottom the we But and growth ARR improved recovery. prior We which ultimately recurring than will believe the and greater depend

the time day a cash the And up recurring collections a year. remaining in calendar day make or recurring cash the makes deal free by left flow ARR unpredictable longer can we making the a Remember, close, growth about more current by if in expected deal growth revenue recognition ARR takes environment. that revenue significant to growth than in a in over significant closing but

the have We last like. on plans long interruptions what half contingency depending several how second the looks environment pandemic in place and spending

customers and entertainment, efforts Right now, while to employee. our contract protecting to travel virtual deepening like our variable events our customer and and supporting expenses Teradata focus our drift our both jobs moving universe is on in with continuing relationships marketing other areas and in that's and the cutting partner cloud, honing got events

believe are press going a incumbency big during to advantage as that while an We advantage uncertain customers. time and our supporting we

is on and to non-GAAP guiding between and EPS QX are per earnings share. XXX non-GAAP to expected Recurring and be million recurring revenue We $X.XX. to revenue XXX between $X.XX million

limited We being of end deliver outlook on This at the believe last months the outlook in in recurring low overall can of revenue this few make we macro. appropriately our all pipeline, new we given the not our business guidance sure are and conservative our is and the indicative wanted I current quarter. to of

year. effective full-year the XX%, a to quarterly rate could is effective tax somewhat approximately A be rate anticipated quarter-to-quarter be variable however non-GAAP on basis tax this

free in saw the this increase. tax quarter you As earnings future benefit which quarters will with unanticipated as our reverse cash out

EPS a weighted XXX non-GAAP tax share rate assumes QX approximately million. and of XX% a average Our count of

on additional business earnings the a on segments we have provides an discussion IR posted website. As reminder, document key that details

that, open questions. up it with to let's And

your ahead, Our line Stanley. from from first comes opened? question go is Instructions] Huberty [Operator Morgan Please Katy

working you April, which wanted to highlighted ask is closed Mark had to you on And sequentially. your look the that spawn. afternoon, Steve, that recurring Thank had about a was recurring forward you. with would Vic. pushed revenue is renewals I down question revenue to retirement; you. Good if still got Congratulations

growth the out. down you're know year many different year-on-year? have for I there of what to scenarios recurring to happen to And for Thanks. guiding be but What play know could as you is revenue

big Hi, almost complete had great. Thanks, to some of the so yes recurring well yes had thank being Katy. as impact on not timely, as able a million. our that's renewals you $X Yes, line clearly impact

April, plus pushed the you when range. we the with so, have our March that been have at we would what had, those right add in into would high end of the And in opportunities FX we just

And so, ago, a we than basis, lower dramatic our to a decline anticipated have full-year revenue on for in see a recurring year to be AR growth. would

of Because side we don’t happening sort things of unexpected the churn our see a business. from

we growth to don’t anticipate for at we have year AR little So, the see that don’t it just expect. and would which know just that main that all

you. thank Okay,

Thank you. next Mohan And question of comes our America. Bank Wamsi from from

is line Your open.

Yes, thank you.

year quite are the that would we COVID. rates originally think totally consulting decline of now significantly utilization margins getting was trajectory expectation into Clearly on through consulting the this If I hit XXXX. coming of revenue. improve maintain because

the been have the of think already taken some a actions we that should quick and How gross given have margin trajectory about for I follow-up. XXXX

Yes.

number we this well in strategic carefully. as talked his quarter. to things So coming improvement for margin consulting Scott align that has quarter striving going Wamsi, prepared at did that remarks monitor a to things of very last more that our XXXX impact over despite QX as we're There the of to ended out for QX about were clearly XXXX

historically are And on the to it then also in full-year But margins striving gross margin clearly year-over-year. margin throughout year has that builds quarter gross the we for and lowest clearly mind QX. the keep basis, been improve again consulting a Teradata. but QX at improved across

people cloud seeing Scott, thanks base. most are it the And to Okay, like from an customer their feels acceleration Mark.

was some at almost So, just curious customers. inch of I your about your a comment slowdown about prioritizing cloud

you Are Thank comment. that for a you of that on that turned experienced context the suggesting net just and you slowing customers is was the when to move of couple or you. the turn where cloud Teradata

market, Yes, right. very that’s focused on What is we're of a the great enterprise Wamsi. high-end question a

foreclosing's impacts moving equivalent the ERP largest of workloads So, system is And complex the or of the world. in the application. sort of companies movement more-or-more large in

cut that the lot part what time on spending of OpEx a were It OpEx of incremental takes customers we premise to number the for them a investment move And of lot and from and related immediately of saw discretional things that a and cloud. investments to was workloads customer. were to among take

the So, and for I efforts, cloud do that moving in certainly things cloud, data would deal to what that scientists. customers marketplace. complexity requires say But the of our engineering the are simple and moving because of and into programmers, states, that the in we occurring easy to that a great of move

it's highly frankly, their The And business customers run all Teradata. on critical. they flaw their for the what financial mission closes, detection, do compliance,

sure they orientation. they these the So, done that have moves make sort with they're to of X/X when make

economic it can slow So, can customers the to and we and the the what They projects they bit investments cloud. into frankly better is short-term moving case definitely would discretionary I because say to have in in put spending. afford did till our in a cutting sit they're on little down there how premise

OpEx short-term down just in that The macro save but of bit and not did their cloud folks to is answers moving the in a Hopefully your cut environment. projects we to little some slow see trend changing question.

Okay, you thank Scott.

question And ahead, next Please our your line from from Cowen. Wood you. comes go is open. Thank Derrick

And vertical. new investments verticals across a kind in managing the I given impacted be deal delays of are distressed and to systems kind data of here Thanks. of is systems of or physical remote fact your causing talk a the work remote you virtually infrastructure delayed work their in I've are how follow-up. guess, that it has kind just how about lot and centers, customers just to much can make ability those

take I'll Derrick. Thanks, question. Sure. the

out environment. saw remote get to safe, how that Everybody say would how kids how shelter across verticals. end a all place, is to I figure March the of were and delay get working first their to at to into we that the was impacted, family The had everybody

working homes others. as frankly, and that move shelter the from do more were place prepared made to in than companies people and to a And

were that the just verticals impacted. saw delays that not we So, those were all across

In supporting crisis. of and The up would can exception customers change. be components in we physical terms do drive advance we the hands do a what that make a to majority well do on actually that or only the that of go premise, processor were vast this bad something set needs to the we remotely, of like equipment or have on to

are with to outages, we've in case, We've had were our able and able our And But significant of that do we working requests vast customers customers to to remotely. swap no of downtime majority those support significant been them any for those components. no the address.

the customers to way The same run environment, also they actually to troubleshoot, relative test, are program, operational to the to issue our able interact remotely. to side with the

again running they them keep work transition effectively to platforms to were make for from business. have So, the they the to home very our but able

to their And no lot of related cost by They through use and we a lot additional a configure support us customers came have have said the spikes from did we to providers, been what kind activities. big saw healthcare we COVID crisis. the government, to from or just that it we them then allowing capacity deal at could in And of to customers make to businesses. to of them request

great we've there? all effectively a to serving on have hands been deck remotely. support able Did follow-up, So, but them you

And Mark. a color. had I follow-up for helpful that’s Yes,

cash that head. some had in like delayed continuing There You currency and a sound XXX foreign feel Any kind million is number free point? at this others looking as of flow QX. at payment how ballpark to for terms you been about that certainly

Yes.

X-XX activity in March delayed of in over great feel We business good will start. So, a first have the last yes ago. to We're all came the all cash what that. April. and excess off all, clearly did we free basis, call a we of full-year days about a flow at year escalation On

go We now things still would nice expect timing I in see XXXX XXXX. what we're was going a very bottom the cash of see the 'XX in the that uptick that we'll But to how where free up. versus feel flow

Okay. Alright, thanks.

comes Thank next Citi. question from Tyler Radke you. And our from

open. Your line is

a thanks questions. Hey, my lot taking for

wanted of doing to you're Maybe is environment what far April. on well. tracking I how in maybe far you compare so to just all You seeing could a follow-up so just are year the kind if on relative the business ago. commentary

could kind of terms of just expecting the if Thank to then, end flush your through what you're how you. the out of in progresses that you quarter hit And guidance.

Yes, seeing I the as Scott our on clearly in I'll here we're activity But activity of that around know, the too remarks weighing we prepared have level of virtually. don’t engagement lots mentioned obviously we've and like a second. seen

of And it's of are happening activity lots the we and of April. of part closed close We've -- lot been several half a that in hopeful first up first to there. transactions engagement March ended coming the in

tracking. how the going provide on that's the some he how sees good can quarter. this of we So, across color Scott feel balance about

as our long let But the relationships customer -- long But relate the clearly with of we've incumbent and incumbent base term well. us. comment well Scott and customers type building the for -- I'll is where the had

would what march late things and Tyler, drop able timeframe a dramatic is say lot that they we saw that us and done where we take of have to in that off interactions just would customers Yes. that in activity were deals to meetings activities were had helped a pushed. not get where and I calls with

XX that they pivoted the meeting is completely early XX, to so regular years things our unique Teradata But cadence our a we and And had by virtual about XX, have picked and customer customers we. in with one were things are up in and mid-April significantly of relationships interactions in April, length. I think

relationship technology. the continuing and them whiteboard only generally maintaining over the at over that be the and can a done to relationships meal. is But grow done And and face-to-face

relationships shift of for that more has in-person give April, up we that would interaction we amount touches traditionally we sales as years, saw the the with have model you actually we made what in we our paid the customers us. really relationship more people. was an many in as So, off built over equity with do we But have gone versus what

I that that that an quite environment it's we long have have incumbent with on quickly them that with them, to are the to we think virtually. together been a says can an So, fact know existing they contracts really working provides time, back well, we that place, them incumbent that but in we as and easily we've grow get demand, happening systems the

systems that's do proof-of-concepts. or more would say I to new build somebody logos trying that's Or land much trust or in for put new difficult or

we year as look from has optimistic. for the ahead outlook team our So, the been

When look we from and have we've pipeline came that came the the QX the QX, it overall slip things our going deal prices. in the is into very that COVID very our in that activities was of what allowing QX. in over for year had similar to little And solved, we April deals from been we've the to terms at

to projects look a what closed to talk everybody When not the and their CapEx to able OpEx and exactly going is shaped to our Customers recovery "V" question they're a is So, and others. rates. be know why for big their or be, sure it don’t is environments their budgets "U" you yet were them, business what spending will be. to going what

Tyler. together answers to economy and Hopefully their budgets working people obviously And back. begins question, capacity we're that as to your have so they seen call but come work haven’t to and the we back

jump your helpful. makes Yes. model as that a it feel And have here. you Mark. and just that But maybe a do sense. understanding for into prior recurring if just That's about to free And guidance you recurring revenue think nice follow-up

mean I a full-year, decision or like seeing rates somewhat unusual to anything suspend make of normal. back guess off in you you are sounds did terms things in the business in It for churn it you're and I not to activity to like least guidance seems at what made the drop see March.

version. are up this there it made ARR I new existing from as how Thank out workloads kind So, you. the guess and of and deals versus coming a that guidance incremental of newer about then you year, think projects kind is suspend you what systems perpetual your with or much of

Yes.

decision Once reopen, lot in to the AR what all growth Tyler, way a given I day. to a achieve all this prepared economy of -- on XX XX just macro can guidance Right, So AR in we we up macro like my the uncertainty. see. and aspirations remarks, growth on going mentioned on the see the

when quarterly from But going a to which unpredictable. amortizing depending when than much greater we more expect be recurring than we recurring what from on to revenue us had year. a ago guides we're makes see it each and more basis that year-over-year you revenue clearly in on quarter But tells the last falls turns we're saw revenue on year the

us our How do fast to on that XX we'll thing is our much days things got here robust, now over what base, of while the QX by more look is might transpires our and like. is environment going we open next But is calls spend truly to federal what up annual local governments, the to depend timing how on shape spending pipeline to assess and customer great state for just guidance the prudent foreign while there felt the going that see recovery. that a just we

until unfold to situations guidance. it's are budget better the have understanding the they their yet for thing I to talk to that you we of and Yes. particularly going in a second only is as add going the spending are be they to believe for what environments to their prudent the guess, how think I half. us to customers, like pull year, declare I would And

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perfect, thank Okay guys. safe, Stay okay you.

time. the call to Victor remarks. back Lund the Thank this at you. closing questions turn in the concludes that And I'll for queue

move to they And going unprecedented keep through execution of persisting result time, later. the customers insights And this that we're of our our guiding going in the drive we're to we as delivers provides in priorities through going We're need. use to continue top on the focus the improvements closing, our our that products. reasonable to financial be data

on we take to all, comes confident Steve board, that much. very As will Teradata you next are level. the Thank he

and ladies your this We gentlemen, you, our call. appreciate Thank concludes joining.

You may now disconnect.