tdc-20230930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-33458

TERADATA CORPORATION

(Exact name of registrant as specified in its charter)


Delaware						75-3236470
(State or other jurisdiction of						(I.R.S. Employer
incorporation or organization)						Identification No.)

17095 Via Del Campo

San Diego, California 92127

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (866) 548-8348

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:

Trading Symbol

Name of Each Exchange on which Registered:

Common Stock, $0.01 par value

TDC

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ý No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ý

At October 31, 2023, the registrant had approximately 97.8 million shares of common stock outstanding.

TABLE OF CONTENTS

PART I—FINANCIAL INFORMATION




	Description	Page

Item 1.	Financial Statements

	Condensed Consolidated Statements of Income (Unaudited) Three and Nine Months Ended September 30, 2023 and 2022	4

	Condensed Consolidated Statements of Comprehensive Income (Unaudited) Three and Nine Months Ended September 30, 2023 and 2022	5

	Condensed Consolidated Balance Sheets (Unaudited) September 30, 2023 and December 31, 2022	6

	Condensed Consolidated Statements of Cash Flows (Unaudited) Nine Months Ended September 30, 2023 and 2022	7

	Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) Three and Nine Months Ended Septem ber 30, 2023 and 2022	8

	Notes to Condensed Consolidated Financial Statements (Unaudited)	10

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	33

Item 4.	Controls and Procedures	34

PART II—OTHER INFORMATION

	Description	Page

Item 1.	Legal Proceedings	34

Item 1A.	Risk Factors	34

Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities.	34

Item 3.	Defaults Upon Senior Securities	35

Item 4.	Mine Safety Disclosures	35

Item 5.	Other Information	36

Item 6.	Exhibits	37

	Signatures	38

Table of Contents

Part 1—FINANCIAL INFORMATION


Item 1.			Financial Statements.

Teradata Corporation

Condensed Consolidated Statements of Income (Unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
In millions, except per share amounts	2023		2022		2023		2022
Revenue
Subscription software licenses	$	66	$	59	$	240	$	217
Services and other	294		272		880		845
Total recurring	360		331		1,120		1,062
Perpetual software licenses, hardware and other	7		14		33		48
Consulting services	71		72		223		233
Total revenue	438		417		1,376		1,343
Cost of revenue
Subscription software licenses	5		5		16		17
Services and other	100		87		294		276
Total recurring	105		92		310		293
Perpetual software licenses, hardware and other	7		10		30		34
Consulting services	67		56		199		198
Total cost of revenue	179		158		539		525
Gross profit	259		259		837		818
Operating expenses
Selling, general and administrative expenses	156		155		476		475
Research and development expenses	76		79		222		236
Total operating expenses	232		234		698		711
Income from operations	27		25		139		107
Other expense, net
Interest expense	(8)		(6)		(22)		(17)
Interest income	7		4		22		9
Other expense	(13)		(13)		(44)		(34)
Total other expense, net	(14)		(15)		(44)		(42)
Income before income taxes	13		10		95		65
Income tax expense	1		2		26		25
Net income	$	12	$	8	$	69	$	40
Net income per common share
Basic	$	0.12	$	0.08	$	0.69	$	0.39
Diluted	$	0.12	$	0.08	$	0.67	$	0.38
Weighted average common shares outstanding
Basic	99.2		102.7		100.5		103.7
Diluted	102.0		104.7		102.8		106.4

See Notes to Condensed Consolidated Financial Statements (Unaudited).

Teradata Corporation

Condensed Consolidated Statements of Comprehensive Income (Unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2023		2022		2023		2022
Net income	$	12	$	8	$	69	$	40
Other comprehensive income (loss):
Foreign currency translation adjustments	(17)		(23)		(17)		(48)
Unrealized gain on cross-currency net investment hedge, before tax	3		9		—		8
Unrealized gain on cross-currency net investment hedge, tax portion	—		(2)		—		(2)
Total currency translation adjustments	(14)		(16)		(17)		(42)
Derivatives:
Unrealized gain on derivatives, before tax	4		21		7		26
Unrealized gain on derivatives, tax portion	—		(5)		(1)		(6)
Unrealized gain on derivatives, net of tax	4		16		6		20
Defined benefit plans:
Defined benefit plan adjustment, before tax	2

SEC Form 10-Q filed by Teradata Corporation