Teradata (TDC) 6 May 222022 Q1 Earnings call transcript

Good afternoon. My name is Erin, and I will be your conference operator today. At this time, I would like to welcome everyone to the Teradata First Quarter 2022 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. Instructions]. [Operator like Lee, conference Investor Senior Corporate now host to Relations pass Development. Christopher today, Vice to would over the your and I President of you. Thank

may You conference. your begin

welcome outlook. Chief Executive financial will will earnings and Good Claire first followed call discuss results Officer, Teradata's Financial Bramley, Teradata's and McMillan, our Teradata's lead quarter Chief afternoon, President call. to today; Steve our by our and XXXX who Officer,

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

our the reflect number uncertainties to could differ update XX, for expected release. financial call, forward-looking XX-Q as statements and While release they be non-GAAP are a filings, measures, made our cause ended are outlook, XXXX quarter These described to be compensation the that the duty and is discussing these as subject to expense such items factors we SEC filed which XX-K earnings earnings in including current of the are results in risk risks March that today's obligation stock-based our days. and Form materially. in in Form no described most with and other next On and These items few certain today's statements forward-looking undertake actual statements. special or today our SEC of will within exclude we our to recent

And I currency Steve. revenue in be call reconciliation which other discuss included also the over accessible release, call A our non-GAAP replay items our will and such of Relations comparisons. on will turn is investor.teradata.com. constant conference cash now, at the non-GAAP site. today We later measures earnings free to as of A of page our Investor is Web available will GAAP on flow Web site to this

another QX we affirms and pleased in strategic cash of generation. free direction. growth Chris, In growth profitable report that cloud first of us our for strong ongoing quarter to today. and joining everyone, was XXXX, flow our are thanks, Thanks, momentum quarter

of As the no am quarters, seasonality of you and macro results than overall different. quarter the uncertain was year are lower and these of turbulent traditionally has light starting in proud year all the environment. aware, other I the this

accelerating steadfastly focus growth. on remains public cloud Our

year-over-year public ARR healthy QX, a cloud Our grew XX% rate. in growth

We are as cloud cloud, enterprise expand of enterprise value recognize in efficiency see of Teradata. to pleased the customers their environments Teradata and they price and analytics the the performance

recurring same total Additionally, grew revenue the over in prior we revenue quarter year. total the and

combination I platform in in Our outlook discipline as line with transformation $X.XX, our we the connected for goals advanced with analytics. progress enterprise multi-cloud our against data the of non-GAAP resulted strategic investments our EPS also we with as of provided. cost am positioning pleased continuing

all ARR data across three our diverse Our saw business globe, both Teradata demonstrates provides. This we in companies, and global and the cloud that growth outcomes sequentially. analytics and business regions, gaining meaningful leading customers, balance are the growth of geographically our Teradata world’s base, value from year-over-year the the spans the

Ukraine. Let me in address the to take moment devastation a

Russian the brutal and decisive support quickly the in actions the sanctions attacks to opposed on of firmly are We attacks. Ukraine opposing took

We are company. a data

who abused is our customers live of to with support single work transform use or people not we the Russia, power Russia critical transparency data. purpose we platform conducting and interactions governance. stopped and and confirmed or to to how business our have and all chain We being ceased In Ukraine. that services we do with the work our people, Our through data responsibility, to quarter, supply suppliers any Russian accounts, customer from data and cannot confuse deliberately ensure every businesses day in mislead

affected. a our employees Our who care and of support with directly managed for priority were actions were

and healthy were operations business performance thing but we took The in do. profitable. EMEA, total to company, right was impact Russian to but Our the action small, will our relative the

and in all was almost business Russia not cloud our of on-prem, does therefore change our strategy. However, transformation

XX% cloud such, are outlook year. for more the updated As guidance approximately Russia ceasing our the our headwinds. few and detail increasing XXXX reflecting Claire operations of impact we will cover reaffirming in public minutes, in growth a of FX the

functions, Turning and to on to across in-database time our for we're additional to engine. our allows teams value with execute time scientists for data to We to faster. data momentum, Having analytic they science innovation our analytic Data rapidly less foundation data Bringing them with spend cases. time use our Data wrangling amount rich additional their releasing technology new capabilities the data analytics, a new it. customers. of up is functions tremendous in-database kept all their spend transformation analytic sets. before move to Vantage value and can functions, customers prep many more enables use accelerating workloads in-database of

to machine in performant, language at-scale several syntax. value and make customer learning into analytics data high leverage use Python a RStudio cases. And This is example, Python Vantage in-database of a buy our We've to R use is of client-side investment. segmentation, value shop for continue packages for use language and help seamless Jupyter the how their make using the importing we’ve embraced to platform or providing cases, to R online. our advanced enhancements something we scripts. to from for functions and directly years For familiar likelihood years. open-source our supported machines, areas scripts retail extension customers assessing done for example of in predictive These it notebooks and to commitment and scientists capabilities or data their we it easy Vantage Vantage operationalize tools have in maintenance One have delivered like and that for drive both real and

retail pipelines and one XXX,XXX them to is approach in models Spark is ahead our customers Vantage to over years several the the forecasting in-parallel, Teradata. of successfully recently modeling We Prophet trained, This of move popular Our library. using migrate competition. Python enabling from

leading technologies, keep continues. will delivering in cloud market-leading organization R&D our way the attention and strong on Our

and We are have continuity management can enhanced backups, our adding ensure objectives recovery right designed and their for to to recovery, improvements to complete partial protection. scheduling, disaster kind capabilities These backup cloud-based continue the customers self-service business capabilities. of match and

work grow advancements in hard teams Our believe next-gen as that also engineering addressable we Teradata total on will cloud, we at to to the technology are bring market. pursue exciting opportunities capabilities our

included natives SIs cloud Teradata expansions. growth from organizations are came time that and selected And regions saying to the again In ISVs. across of goes without ongoing and already new major deal both win high-quality technology new a our partnership our we engineering We organization with for business and ensure us. cloud customers. are on all three value. to and our customer adding customers brings cloud nearly every demonstrates in for driving innovations our that offerings digital strong in quarter, It and our platforms three all competitive cloud was leading by was adoption

are Here few. just a

financial cloud This institutions expanded bank's largest environment, on the Vantage is backup world infrastructure the the Teradata adding regulatory solution for critical future robust of first cloud its the has way implementation, for AWS required paving reporting. a in data its One deployment. necessary for

multi-national systems practice to tax its lay first multi-cloud services bank journey platform, improve capabilities performance. path is firm, in a real-time customer to based which sources of Teradata will and chosen ecosystem the on cloud customer management Vantage with on-prem on AWS. spanning chose partners, the The Vantage Microsoft Azure and a of of analytics cloud to and, services analytics. decades-long financial integrator hybrid global has Teradata other and partnering Azure, data system phase its use customer's long-time India deployment business connected on firm its also our product the the media on-prem already and geographies. ecosystem global new data regulatory for environment. will is and cases the Vantage to Vantage this migrating and and operational cloud Teradata analytics, new Teradata first of and collaborate Australian-based over is This marketing This A on creating modernize multitude functions, consulting its additional supporting a Teradata are chosen modernization. scaling development support support resiliency with for leverages foundation its implementation. SI one We for Synapse implementation. broader Vantage a on customer An with multi-national business This functions A has for migration as social on later, compliance. Canadian

analytics modern food Vantage in to environment. deploys across migrating the cloud, environment analytics. is bank multi-national A it its the manufacturer This and data fabric As hybrid leverage Japanese create company for to on its sales on-prem Vantage Azure. leveraging is QueryGrid improving biotechnology and will query a

investing continuously in excited track of record success customer that strong experiences growth customer clear is cloud have are While excellent customer and new in with also we added cloud of sales delivering our driving we our with outstanding on a an outstanding attention Teradata, leader cloud experience success. hyper always a ongoing lens pursuit in and EMEA the talent I'm leadership. on with in

and couple on deepening account receive specialist helps we their focused seasoned demonstrates of ESG, recognitions received. objectives, positive laser our this a This in our been cloud also sales to to have commitment that our I'd remain growth organization. recent and bench sellers We to gratifying It's mention cloud cloud always like ARR effort. our teams team against recognition execute of

for Companies largest first ranking scored XXX named in names in ESG the the was that from companies publicly XXXX. XXX highest Sustainable list time Most companies, indicators. across X,XXX XXX performance of Teradata First, traded Selected this top Barron's America's the

Companies Teradata's This has designation. makes and by Ethisphere with from Ethical years Second, ethically again part very our of been one this World's Teradata recognized receiving XXXX. of integrity XX in beginning. Operating ethos Most the was consecutive as important in

to commitment for way, the business socially honored as as are and to dedication sustainable our business We practices. well right our recognized to be responsible doing

are in a on received Vantage great analytics. Data for largest our Marketing In platform. segments the customer recognition recently IDC's growing report for in addition, and MarketScape data and Users. market Customer named Worldwide the and marketing we of Operations Teradata fastest Two leader Data and analytics was experience data Platforms

was noted functions advantage, and Our sophisticated for customer more real-time these interactions. their data data, business granular tap modeling analytics platform using for helping and

I as As cloud outcomes leader a progress making I'm pleased we call the amazing delivering the for customers. our are Claire, pass in business to

our value. and strong in direction, confident long-term to over We and in investing shareholder are Claire, strategy future are to generate you. our

Steve, or $XXX of midpoint margin in reported expectations; afternoon, during year-over-year and range; with same Financial operating the X% non-GAAP total XXXX. period points constant revenue XX.X%, of you, cash of up million, and our and X% down up profit year-over-year the line of of and everyone. the provided last X% in include quarter quarter constant in the as of $XXX growth revenue fiscal highlights XX million, good first million from revenue previously with in recurring year. Teradata currency; of in-line year-over-year expectations as flow $XXX free in and delivered $XXX Thank basis currency; $X.XX EPS reported X% up year-over-year at million of

business small, but As were Steve despite results in healthy mentioned, and we these which ceasing operations achieved positive Russia our profitable.

the impact XXXX first Russia quarters. the reported the from be resulted QX XXXX. or on-premises $XX invasion Russian equal million, of anticipated portfolio. will from we Ukraine in approximately thoughts XXXX, of As $XX with results outlook. XXXX team, comments our which first and the was cloud projections quarter, we our approximately years, Russia revenue. and affected Russia to EPS. remaining in for a who full two for in X% removed amounts total X. Upon QX over of the non-GAAP the outlook in quarter with from those during profitability margin the of will in XXXX diluted last outlook. total ARR remaining related approximately million approximately in the of to horrendous approximately was operations contributions to management in million XXXX anticipated quarter, and during minimal our average $X.XX adverse company's XXXX Of total the million was are through operations a support XXXX $XX occurred sanctions of our cease after Ceasing our partial ARR the results X% ARR I are Russian our our The imposed In due This reduction the had recurring Profitability removed Russia's by this a of and provided all on $XX on we the nature on $XX internationally million line QX reported amounts gross or we operations refer these impact to three in February my deciding XX%. fully for total revenue for period the removed back the year in is situation.

starting results, quarterly the into with ARR. get Let's

ARR with year. our upgrade and Total but declined the associated continue negative X.X% with quarter, declined as at point reminder, in with Russia from primarily last approximately connected, subscription as driven over X% subscription in quarter is expansion strategy quarter same These and These year-over-year execute of existing by We ARR by was subscriptions and, you shared year-over-year approximately constant seasonal first XX% activity prior new customers platform to hybrid number multi-cloud on year-over-year regards our or strategy also maintaining low environments fourth total we reported are the reported years, our new increased first while year-over-year Cloud increased the sequentially, year-over-year shared XXXX cloud and EMEA We Investor seasonal geographic impact after a from currency. was Russia. three grew the to regions, on ARR our This results ARR from In by approximately higher the driver currency. customers affected growth Americas customers sequentially. against and more net good X to which saw as Vantage With ARR, but in also of more all the ARR rights the ARR. total there both experienced than both Public the are points is cloud sequentially. X% quarter quarter X% Consistent in ARR; in last year-over-year, regions healthy by ARR Maintenance in migrating Teradata. in We year-over-year cloud primary Cloud XXX%. components workloads and with of ARR versus period and the software our year-over-year high. adding grew ARR line removing ARR our was primarily Russia-related cloud growth was a decline expansion and Total our of grew constant APJ expansions. sequential and cloud driven year. onto expected Day. and on-premises year-over-year. Teradata. in the of perpetual XX%

new The both historical our momentum, number in We customers, execution. point a new continue also see grew to better and proof seasonality. than strategic of the of on-premises year-over-year, logo cloud logo

year-over-year increase Moving constant as to revenue. and Total a X% X% revenue currency. reported a was $XXX increase in million,

growth X% recurring build year-over-year of We in constant on higher driving continue a base to our is higher of and X% revenue, revenue. which mix This currency. grew recurring

As revenue, the related from a $XX quarter. the majority percentage revenue of impact was total total recurring in recurring first A Russia million revenue revenue. was XX% of significant to

Regarding an revenue revenue impact This was our expectations. million. positive quarter, the of net first the arrangements; with was line $XX in approximate upfront upfront in

quarter renewal or to recurring first For XXXX. reference, impact first from all recognized provided the X approximate net million recurring the partially million the the a rate. positive the to three revenue percentage of This from this $XX compares positive impact an positive by point expansion on next in deals. $XX quarters, Upfront revenue is benefit due pulled offset of year-over-year of quarter revenue quarters, into prior upfront growth in on-prem revenue

a same less ahead, same the benefit we upfront recurring to Looking the positive this in continue higher XXXX to shape net we model last XXXX. revenue quarterly XXXX in EPS as we year, revenue to XXXX. see net in than of upfront continue Despite period than quarter's the being impact received experienced

line consulting expectations. came both and amounts perpetual Regarding revenue, in with

more drive model of against consumption and with to Teradata. adoption strategy; higher partners continue moving subscription higher We our a margin that to execute collaborating and

a quarter and operations, only profit was our This down cost robust a closure in Operating mix slightly our same unplanned sequentially, expense year. impact, FX impact by operating We growing the gross period quarter. took with while last to related cloud the a benefit the offset and of in profit to Moving upfront continued primarily same to quarter, profit executed the go-to-market R&D, Teradata from flat structure last arrangements of Russian to revenue revenue period first were and indirect rate higher recurring gross the largely margin due operations. Russia the discipline, from dollars XX.X% closed subscription-based of delivered of adjust is positive healthy actions profitability. investments operations and but a our the the cost in planned margin dollars XX.X% operating to year. negative

$X.XX of previously provided to share All quarter range. resulted these midpoint offsetting of the This $X.XX, activities during includes first in quarter. diluted the the earnings per Russia of related outlook

was Turning quarter to factors. capital cash two by free generated allocation. flow cash driven the in million, flow $XXX primarily and Free

dynamics efficiency and conversion capital First, better cash we to due working year-over-year sequentially. achieved favorable both

an our $XXX first claim. In million income million Second, CARES $XX shares total. million in or we the Act quarter, repurchased to received approximate X.X related tax we refund approximately carryback

we As agreement cash February. of on of made in with million million repurchases announced ASR repurchase share ASR XXXX. to was $XXX shares our into in $XX a in a funded entered as The hand. outstanding reduction February, the market accelerated share in incremental January we reflected was XX% that open the was

million the annual flow first north to returning With our share shareholders free least $XXX well XX% target in via of we repurchase the cash repurchases. are share of at of quarter,

regards strategy in year. and acceleration quarter the provide allocate to XXXX like company some We to the I and our would the support investments the rest second that on capital growth. for continue to outlook, the context cloud to With of profitable

We durable flow. profitability, a the scaling growth cloud of cash fundamentals and are in business, on drive free healthy focused that generation

a cloud similar ARR sales a to from expect highest to ARR growth the that perspective, in perspective growth seasonally quarter XXXX. and fourth know and We total accelerate from ARR our sequentially results continue expect throughout we year. cloud quarter We our is

view. this supports pipeline Our

track. cloud unchanged and our is on transformation As Steve strategy mentioned,

we for able of also our year-over-year, reported to of cash as our reaffirm to outlook $XXX free Thanks our in We constant improvements approximately and reaffirm to cloud are ARR public million. capital, approximately pleased in currency. growth working XX% outlook flow are

approximately the direct has basis XXXX XXX Based outlook. on The a to we compared basis headwind However, operations XXX XXXX of XXXX. April February. the impact you have to ceasing rates, continued now what headwind to to outlook of our XXX movements more an in currency the point recent currency a are basis XXX the estimating we Russian on a with in rest shared of incremental created and on of the dollar end reported strengthening of points U.S year-over-year currency

then If headwinds, you with and we provided be on line call. earnings exclude currency XXXX Russia we the would in last outlook quarter's

well Our as information reflective business current that operate of our is revised used to know by country as today. outlook mix other our we

range Given the a approximate now XXXX. digit single useful a that, XXXX. total to it basis, range. range percentage to we to range. reported. total constant diluted three to the digit digit driving is for which low low to Russia range decline fiscal we the $X.XX. flat the decline be of mid impact low Non-GAAP range. quarters, Total percentage in earnings recurring is basis, On the an now high headwind $X.XX is a $X.XX percentage single to as $X.XX each low currency the digit reported. percentage as anticipated digit now for year-over-year in constant basis, On headwind percentage of Total now constant in revenue Currency are ARR range ARR to as the revenue expected fiscal total year-over-year to currency single is total outlook in digit projected the reported. to single share mid per low offset. percentage in to to the an of in anticipate thought of the is to be currency decline of total remainder to grow recurring in remaining currency an in $X.XX year-over-year additional is of headwinds, is With in in The constant anticipated is revenue currency decline On single single projected provide projected revenue to grow some anticipated

the we We the XXXX, in share project to of earnings full quarter non-GAAP anticipate XX% second diluted range the second be for $X.XX. rate per of approximately be and to in the $X.XX XX% quarter tax year. non-GAAP For approximately to the

for the approximately year. second forecast average very weighted your shares outstanding also today. We the to quarter time full XXX million shares and in Thank be the for diluted you much

open please for questions. call Let's the

interest we yourself the of limit an opportunity, that follow In everyone appreciate Instructions]. and to one [Operator you one up. giving question

with comes Your first Thank from America. question Mohan you. the Bank Wamsi line of of

You may proceed.

your stranded and implies you. than costs in so million have Russia that's XX about would XX EPS there's leverage lot revenues or Yes, or driving more thought. that a thank $X.XX Claire, adjustment in million negative I

it three to why feels impact I And so. you from can doesn't the worked or It probably bridge you quarter some So the quarters. the if right? is sequentially. coming high? that any like sounded Why That's of And color the second on $X.XX quarter got about fall $X.XX interpreted EPS Russia so first the is down, there through as like $X.XX that revenues. upfront next some get about well? impact is in

are what pieces get that earnings? XQ other guide the So you. on that Thank to moving

questions. Hi, in. for Wamsi. straight jump Thanks And I'll the

let all, that me on of had our first EPS. the quarter-over-quarter you take question So

upfront. in for anticipating also a in QX rest the was saw the as first of and regards seeing quarter are we couple benefit for you an partial quarter. We to Russia headwinds, mentioned, with impact QX, a first XXXX. reduction the the of less we we QX, of saw Indeed, are the So year of that in

of in And and So QX a headwinds currency. bigger seeing seeing from also that additional we're are we QX. impact and QX

the a QX rest we QX Russia as points, to year. overall the move of the headwinds With at in of to and our headwinds we hopefully QX of as regards most impact we was basis additional which remarks, partial you prepared mentioned, are currency the reflect we to seeing the rates to is up updated recent And So also impact, saw. end as giving XXX from that April. our have heard as guide us I

in We profitable have business very Russia.

our gross revenue at with the approximately in I recurring company. the which margin is mentioned, across line XX%, margin As was

seen that $XX in as my we revenue, total. do So you the would when through have that for have cost, but in terms in within million of of offsets offset drops also bridge, some offsets, Russia

to $X.XX Russia. that We're seeing full the seeing $X.XX. bridge, for new $X.XX just a we're previous $X.XX of then year to go get headwind headwind level the midpoint offsetting from back and We're to of of was $X.XX. So guide a $X.XX high our to approximately to midpoint the guide currency,

And worried Claire. -- your you for seeing you, on world curious the changes is ex just the you're your Thanks, seeing a that Steve Thank Okay. and I Are wanted pipeline? recession, deals you these you. to on It just your be FX would feels fact in to Russia. any reiterating from guide and touch not to great. are Any in about pipeline. there your like what color see more impact

Hi, Wamsi. Thanks question. for the

our In the year. the size pipeline and for full of fact, continuing in to see are quality increase an we

At workloads data we the deals growth the large our customers know, that got pipeline weighted of is and in a smaller we've We've pipe. supports the increase that volume. the are cloud. of we've year-on-year XX% starting to on these strong complex confidence really other cloud, towards opportunity variability to and an you pipeline As second half. work got the end quarter-to-quarter. deal Both that in promote taking that from large deals, to we're means of got see scale, the these starting largest And good

be bigger an bank I a One Clearly, that going later moving its will But much for the prepared in dev the their gave year. pipe that's work cloud. to which production as was system the starts Australian remarks be moves, examples in bank, system that of deal, clearly with off small. we to the as in the

there. dynamics on So looking of lots good. pace going is But the really

capabilities We with bring transformation are into how customers to support and will pleased the progressing the our outlook. our that it is really

you, Steve. Thank Okay.

question from comes with next Craig-Hallum. Chad The Bennett

line Your open. is

Great. taking question. my Thanks for

benefit the upfront So the revenue or little quarter, follow Claire, on maybe more a in up quarter. in detail the a just

thinking of a to the really Because effectively the the of you even if a business. the I standpoint, offering benefit revenue quarter? of the I that quite arrangements this think was of again case. license at no what those under from benefit think least longer that from guess on to side I more going related in, assumption we was my first subscription year is happened was the I that upfront deals were last half had rec bit term

just let that. me Yes, talk about

So to mentioned, your is business. on-premises this is point, Chad, you -- as our this

It So three quarters. expand us, that remaining the incremental well. renew QX, revenue and of benefit but with from as benefit We they we we gets line removed see that benefit our the saw have their in of XXXX. upfront then obviously renewal business the as was those We actually did in in some saw with expectations.

benefit. through to the But with we what was which million that expect reduce the we go So of the year. we in rest do we were expecting QX $XX line saw, be to as

So in to the QX a increase that had year. a is saw a this year. of We And $XX QX QX not similar last in year. surprise we of It last slight what very us. we for benefit saw million of

we the under side of at year in and as activity, here to the what go growth Steve, belt, ARR and maybe more what And the and but for as you Thanks visibility deal expectation and in is, another least, with there kind quarter is great us of team seeing logos, cited for color? just so Okay. hear color. public then was qualitatively with just generation, new new a of for you're much give logo see. terms all can the maybe size, cloud, can migrations the you the logo reiteration, It progress the of of I terms kind kind you and deals their new through good on guess as which the share? little forth? to And

great by XX% that we're Yes. way set Thanks, really what ARR increasing that in a to biggest the XXXX, the market. XXXX, our about the really of the XXXX. really come strategy, really see Chad. bit I really We cloud team. in That long right good traction and continuing some resonating there. to people in right a pipeline. strong by to sales of company growth and technology growth We with And new see progress through deals our large time; Chad, lot is we've a estimate supported got overall, little in And to demonstrating, new the is see The is talked strategy execute. from our QX grow And significant short customers. has is wins. a logo right significant We're really growth think logo starting in

for my questions. Thank Great. you taking

next Stanley. Erik The Morgan from comes Woodring with question

line open. Your is

guys. afternoon. gross I'll you, from margin off you inflation with FX. Maybe obviously taking I'd Thank the despite Hi, pressures quarter coming Good this and that start the nice question. for Claire, imagine really

are move we in the other and to got the maybe about quarter that that that cost where it this you to we So just as us through basis existing comes and the year, pressures any a when world clearly expectations should today? then And maybe walk quarterly on FX think of through saw you land you can that some did? puts takes you

to happy Erik, so. question. I'd do for be you, Thank the Absolutely,

takes to you fiscal were and margin As compared flat are puts with. very in which we a 'XX, gross that. QX few said, happy There total QX of in

have headwinds some We coming in.

of a the that increases to currency go rest we continues as And mentioned. we through year. be to So the headwind, as

headwind the have also We of cloud.

I margin. volumes our to continuing cloud are But But our is is to recurring grow. our revenue -- have but got the a the coming quarter-over-quarter. a trailing have news still Erik, look from are that to mentioned, rest QX, a was we from I benefit revenue would I good margins a upfront as cloud revenue bit coming incremental in gross take which year, If average as of headwinds that the as headwind the mentioned, well, been as Russia. and little So

quarter, an So FX a moving out previous $X.XX The been clearly recently. that I outlook, headwind. of per to have a is that tried a our to call so compared $X.XX. lot incremental total rates that's

us of year, headwind. to of sure And $X.XX for extra we end outlook well. again, a the April. rest And revenue continues us, $X.XX that our So as creates that's to headwind include cloud of made the at for the as to grow, an given our

different So puts takes there. a number of and

seen margin line currency once you the and We're think performance have, in standpoint. EPS adjust that in and with what back from we we've Russia, top underlying and the were pleased recurring with QX, and the we're for do the we on both revenue I that line for strong. an February, in because is saying outlook

Okay.

achieve. set I ethos be that that just want and are Erick, perspective, goals be very confident able we transparent an from to will we think to and guidance we

we've FX strong. why impact and about transparent incredibly the that's are the headwinds as of the so most But very the impact recent the of said, Russia fundamentals that company been of seeing. And Claire we're

on customers? the think I Thank new with that's nice completely color, No, really you sure break success of build lot talk Maybe of success just just you combination to examples. those when those understood, perfect. follow up to customer to of But of just customer expansion, that you each the for and other Steve. -- Thanks. clarify, a migration, of make some clarify, stories? question. was I'll want about can those to you Just factors, kind want about how down were a I

had we migrations remarks, of then expansions, actually We all in prepared examples. an three net customer example my new had In of example India. an some and those of Yes. a

enables best The give and to technology of cloud. the trying set So we're like when customers win I examples, our the of us new picture paint our that to I also give each possible fact differentiated is to customers the path in these three succeeding how and areas. existing really

other beyond expanding ML of Teradata really and as platform, is, our points TAM TAM that Doing expanding about the that our competition scale. our else what has can perform of capabilities analytics nobody think can XXX,XXX deep talked I the AI deliver, example, modeling to kind else performance at nobody capabilities and I thing that platform. their the capabilities and inside because the those

migration. and examples question, of give the expansion new logo, for Thanks Erik. which we So kind spanned

thank No, you.

with question & next The Company. from comes Wood Derrick Cowen

is line open. Your

but more what's Hi, past like move looks can the conversations for workloads Maybe this about looking renewal I or shift guys. when to your Steve a my conversion remind customers Thanks for you a taking you to are of revenue And kind maybe workload strengthen. get know how talk year Claire, cloud, years? questions. And portfolio what versus the that cloud? expansion to customer rates do from the But make on-prem see you cloud? the initial to us, when

in to out. question. doing form not the expansion. for we thanks saw actually the a how Because really good and with renewal doing moved usually When really Yes, transformation just we A our like-for-like, going do or are initially a couple of parts QX, we of some see they're customers cloud, good that see good rates each in cloud backup renewals call they're happy which lead excited means incremental customers base. as existing operating That the can capabilities incremental that recovery range We're of go really the them and expansion for cloud. of that backup a with us to customer our and new of workload. the to currently the with are well and recovery options, our we will in give launch

to renewals expansion initially moved good those and when we customers good So the cloud. rates

Claire, And how sure impact. constant would the I'm been, impact it. excluding the Russia ARR what a Great. to total not I QX? trying ARR to But in as caught sense Russia did growth currency much have I'm just if get

Yes, absolutely.

million majority So the QX. the of came out $XX in

headwind ARR. of So points total that's giving us on X a our

you. Thank Okay.

welcome. You're

The next with Tyler Citi. question comes from Radke

is open. Your line

excess the in growth where in business to sequential the in I Hi. on seen talked while. about Thank you like Claire, expansion near for we've past I of you've year what the taking QX. expansions my cloud XXX% saw cloud in looked smallest ask And to in question. talked you the think about It terms wanted rate believe of in ARR you a was you I XXX. seeing

a you're to that guiding the So obviously just bit. wanted be And if may for of see little down-ticked reacceleration a full year. kind to

kind your Thank underpins there? you. confidence of what just So

I'll Tyler. off. start Hi,

moving Our traditionally of lowest especially QX highest is our which terms sales quarter seasonally execution. in from and QX, our is seasonally quarter,

from the bit overall moving a of that little results. we saw So QX of to QX in terms

we a is QX our that QX seasonal low. seasonal and anticipate is our sequential So given did deceleration, high

gave $X $X still XX% for dollars this and of over the We're XXXX work both term, expansion by the very this we both XXXX. of In rate so did see for cloud as we're cloud, from to long for confident terms billion in overall and it over that round rate, billion business And perspective of for still we that the year a ARR the about of up ARR being the guidance and expansion in confident cloud. XXX%. we achieve the year can

pipeline Thanks terms which wanted for partnership, play has there. to know to how your this potentially company. year deals grow over joint for color of kind of the about out of the focus talk talk I that Can you been partnership? the and the about AWS there in Thanks. I just in recent a expect you and terms

We're Yes. Azure cloud AWS good with seeing traction though growth Tyler. across growth with Thanks, three providers. really continuing good our largest is partner, and all GCP.

of partnership terms our deep out to technical that some actually look working lays really the that with real recently, with take integrations joint is with how teams which AWS value. the ran underpins in like. engineering session at And engineering to foundation foundation our really customers In partnership to significant terms what that of to going deliver joint AWS think the having joint are AWS, a we I

see expand. of but all traction by especially. of AWS all Azure we're the excited develop, So we're to continuing the to that partnership Very continuing partnership cloud and see providers, that across

you. Thank

The Barclays. next with Lenschow comes question from Raimo

line open. Your is

you're terms have Steve, your momentum there. with running, obviously where playing a verticals of you of in really very out so a lot Thank of industry, solution amount difficult. fair is if complex particularly regions terms deployments in reports for lot like do it's What there's I'm of you. people or players well? see in a thinking of looking out where

need migrating need something So option And move was momentum, to you the Can into you're of on? cloud. question bit? for how little that to Thank speak better to a have a And work cloud? like do is work that second SIs much, of build to to you you. that the the can a much kind when partners' then on much you or people you help

question. you across growth thank Yes, for in providers. very all Raimo, the all we've three the across cloud service prepared seen said three good and much I geographies remarks,

manufacturing retailers looking are their address clearly as We firms, AIM In terms XX they focus, seven the organizations key to healthcare industry. traction in seven inside deep we out industry verticals. capabilities good focus laid over incredibly cloud we and last the moving industry at of of months financial a with verticals, lot services, as and challenges the some session, strategically saw an those our inside to

Our retail remarks. outlined models the in capabilities running a prepared from analytics those attractive make us perspective, I really that

also I is think the market of now. seeing it's the capabilities interesting that importance hybrid

had most the kind in cementing recent Some now. are really of strategy of announcements place the time we've some for that

an our like deliver for months And access XX to Just ability customers and clouds. Vantage are XX a public best capability private possible a fashion, run stores in from now, on-premise, the example, workload that of across as manner, over lot has the providers Dell to to last in hybrid being the deployed us a months. native experience gives had hybrid able the object

illustrates environment have that Teradata cloud integrating prepared actually hybrid it to the real This then of in the environment they of services they're on-prem, provide new I gravity can also that our technology. One to hybrid data CSPs my banks today demonstrates that with real all and utilizing remarks referred tying and delivered we together QueryGrid creation where with by solutions.

happy. really we're So

winning the marketplace. selected use we're of I our why ownership. cost think that's And we're those total of in getting because in of kind cases

out and and the Thanks in confidence So really excited the that's how expand opportunity set seeing real about gives front for the Raimo. some us us the future. for market of we're question,

Thank you.

Securities. The Pat Walravens next JMP question with from comes

is line open. Your

you environment? how does And are the is rep cloud [ph] this your much. feeling much. on organization, attract talent, Joe so you typical so you curious, This in sales actually then especially what there? about a Thank to ability for Pat. profile Thank look like retain I'm on specialist and

for the Thanks question.

and highly new in recruiting a to I organization. Super prepared not edge the But our We solutions. brought experienced We've geographies deliver to good cloud actually of excited to referred just in out engineering at growing our engineers we're ability retention best seen Richard our talent in developing of EMEA So, us. yes, that experts, the mentioned leader see success we're great going that, really I've for cloud all them with having talent as to all site great organization. as what levels product is leading region. remarks organization to attracting, engineering our only and some for native talent we're the my and digital get across and

think leading-edge authentic and bring their they And inside where culture technologies, get come opportunity and to work. else an we want outcomes I great selves that also work to delivering genuine, provide to work on a Teradata, So people business nobody can.

outlook sales driving From growth list I XX% sales this talent cloud across of put some The specialist in point from taken for sales sellers their incredibly helped them and terms So that and specialist inside best well. We've cloud from that. into a working of perspective. cloud that's growing unit and has to we've reaffirmed of happy accounts, our think account the cloud a year-on-year view, from very regions some year. our all specialists' support our pipeline. that's executives in good And strength seeing deals the of

the There call questions at Steve over for this are back will turn McMillan final his now remarks. no I further to time.

much amazing of accounts very to as for remain committed joining recognized help next right customers companies results. absolutely always at and striving continuing talking our remain outcomes business our in and And look customers they with realize strategy. scale us to on business everyone all the you, enterprise platform. our optimum new Thank existing technology logos to It's get for thanks to from market are our operator, adding growth expanding We're absolutely track and We for you value Thank today. you require. our who forward cloud and leadership great quarter. all, we Teradata the accelerating

call. This conference concludes today's

may You disconnect. now