‘Connected Data’ Drives Teradata Q3 Revenue Rise

Cloud data platform company reveals that public cloud ARR had an increase of 83% as reported from the prior-year period.

Cloud data platform Teradata’s latest results show strong revenue growth with the CEO praising ‘connected data’ as a driving force.

The San Diego-based firm offers a platform for enterprise analytics. Teradata has clients in 75+ countries – with the UK being one of them. Notable customers in the UK are Aviva, Tesco, Lloyds Banking Group and Sainsbury’s Bank.

Following its healthy financial results for the second quarter of 2021, the company has reported a public cloud ARR of $148 million (£110 million) in its Q3 results, an increase of 83% as reported from the prior-year period.

Recurring revenue came in at $352 million (£261 million), an increase of 7% compared to Q2 2020. This recurring revenue was 77% of its total revenue in the third quarter, up from 72% in the prior year period.

Total revenue witnessed a small gain as it was $460 million (£341.5 million) versus $454 million (£337 million), an increase of 1% as reported and in constant currency.

“In the third quarter, we met or exceeded revenue and profitability expectations while advancing our transformation,” says Steve McMillan, President and CEO, Teradata. “We have a substantial cloud business and a very healthy annualised growth rate. We saw a handful of transactions slip out of the last day of the quarter, slightly impacting Q3 Public Cloud ARR growth; however, I am pleased that we have now closed the gap in October.”

He adds: “The world relies on connected data, and our connected data platform uniquely delivers insights to help the leading companies win with all their data.”

In terms of the outlook for the full year 2021, Teradata unleashes the hyphens. It expects total ARR to grow at a mid-to-high-single-digit percentage year-over-year. Recurring revenue is expected to grow at a high-single-digit to low-double-digit percentage year-over-year. While total revenue is expected to grow at a low-single-digit to mid-single-digit percentage year-over-year.

Cash flow from operations is expected to be approximately $440 million (£326.5 million). That sentence was easier to follow.

Teradata’s main rivals are all US-based and include Hewlett Packard Enterprise, SAS, Oracle, NetApp, IBM, Microsoft, Amazon Web Services (AWS), Cloudera, SAP and Snowflake. Naturally, there are cloud data platforms founded in the UK – such as Six Degrees and Claranet.

Teradata works in a number of industries, such as financial services, retail, manufacturing, transportation, telco, healthcare, and media and entertainment.

Anyway, it has certainly been busy.

It recently announced a three-year collaboration agreement with AWS. Together, AWS and Teradata are increasing both product integrations and development with AWS, and launching joint go-to-market programs using Teradata Vantage (its multi-cloud data platform) on AWS.

Last month, Teradata and artificial intelligence (AI) cloud platform provider H2O.ai revealed the integration of H2O AI Hybrid Cloud, the company’s AI platform, with Vantage.

In September, Teradata said multinational retailer Tesco is continuing its ongoing relationship with Teradata by using Vantage as part of its data platform.

Also in that month, eWeek UK examined Teradata and Snowflake as they both released statements around the same time.

Teradata announced additional functionality to its Vantage product line in the form of model sharing, also known as Bring Your Own Model (BYOM). Meanwhile, Snowflake launched its Financial Services Data Cloud.

Antony Peyton
Antony Peyton
Antony Peyton is the Editor of eWeek UK. He has 18 years' journalism and writing experience. His career has taken him to China, Japan and the UK - covering tech, fintech and business. Follow on Twitter @TonyFintech.
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