Mark A. Culhane
everyone. I'm the can importantly, Thanks, in amount is to at and not join deal Oliver, results cash this better-than-expected evidenced excited you revenue, company, short strategic even free morning the motion, only subscription-based are the and tell activity QX, working in that correct, are full I I'm EPS my converting good flow, From and but to of at terms transactions. more in joined you by total to of Teradata as and have the time Teradata. changes pleased are morning,
more Although a made we more of to stream we moving that business more are and of our create to lot subscription-based options on you feel intent confident progress recurring in XXXX, revenue in valuing. can attractive an
use revenue expected ARR full subscription-based or focus Although not longer, do perpetual any to of XXXX. shifted and $XXX have that options a million to we we of annual in equivalent to did million transactions $XXX year terminology the have target to we shift recurring our
equivalent of our worth the range. high-end year, expected we transactions, million $XXX had above For subscription-based the of full value
a XXXX. XX% of revenue result QX As basis, recurring in a on licenses product subscription customers from the purchasing quarter increased
increased year, XXXX. increase full revenue, increased a line XX% of X% over was was December and Total XX% from recurring Total million XX, XXXX in December via of and We in TCore about at the of or and expectations, $X.X that XX, in increased our was recurring over or an forecast revenue with with line $X third billion total For XXXX. increase subscription. booked our billion, XX% revenue product ARR $XXX XX%. XXXX,
metrics, which few to provide minutes. we speak forward, industry to Going a more plan standard you with I in will
expected, than business continue aggressively ended our our and Although, work our we and our customers, change more and business diligently year our to lead subscription-based benefits will shift to to activity offerings, new subscription approach cloud-based more Teradata for the which and to term longer model shareholders. move faster we with to
re-measurement is QX. our $XXX to related Before identified Teradata's excluding in QX which period, fourth quarter we want a million, GAAP reform in at the in and everyone results was to to XXXX a $XX by due I reflect to tax new net compensation $X.XX in was was release, $X.XX. We a expense repatriation in of stated of the items revenue guidance I EPS range tax comments majority stock-based as QX was beginning same was including our million $X.XX, in million, to of higher basis, offset related special on plan unless the million XXXX. which our charge to non-GAAP XX%. the The sure $XXX otherwise, that, XXXX. corporate today highlight the QX total $XX tax of earnings our other an a benefit, guidance charge tax such as deferred lower tax which liabilities revenue items my make Total results, partially over than incurred aware QX and above was rate loss net eight-year repatriation of tax pay of
as well XXXX than was Our guidance, a lower a the higher again to company's subscription our but full to model our investments as shift year due EPS revenue $X.XX, model. to non-GAAP largely than transformation increased subscription in the for EPS
product to XX.X%. Turning fourth QX gross the was higher margins, gross quarter XXXX's XX.X%, margin than slightly in
margin business range XXXX. Service the margin the XX.X% to gross gross XX.X% versus year due For versus was quarter our of made software. the believe use the that of in in QX XX.X% margin decrease the in in in demonstrate XX.X% XX.X% to margin lead quarter we increased basically gross was XXXX. Service fourth and consulting line in was targeted business will compared quarter product of in for XXXX. our outcome-led cases XXXX. The mid-XXs Overall with full to we the business fourth full to incremental XX.X% was customers investments XX% was in that gross for strategy consumption in Teradata's year, our XX%
change. year, mix full higher in our also the XXXX. to of services in compared XX.X% XX.X% the the gross investments was led business consulting For to margin and The
administrative count. quarter sales expenses, or was in and support Turning selling, head the sales expense of $XXX QX, XXXX, driven $XX from and by to operating fourth increasing largely general million million XX% increased
public administrative For fourth well by increased expense driven was platform. million cloud $XXX and quarter further Research initiatives, in million, managed the including the our as full $XX XXXX, strategic from million, quarter X% was analytical from XXXX. offerings, year, million $XXX of the selling, expense our and in in as and development investment general $X up
to $XX R&D with million R&D $XXX our to year, initiatives. a Total increased million of consistent the increased expectations plan compared increase. expenses $XX stated $XXX for For year-over-year our XXXX million strategic million, in
was operating than XX.X% the QX XX.X%, in As a for quarter items, these better all compares XXXX. and of result to expected margin
tax the for year, For related the items. period-over-period of was XX.X% our in Teradata's XX% tax rate full-year non-GAAP The rate XX.X% higher non-GAAP fourth XX% XX.X% the XXXX. rate period-over-period for XX% the XXXX. line impact and effective versus to as resulting non-GAAP pre-tax The margin the operating XX% XXXX tax percentage in than the rate expectation, to full was normal XXXX. increase but was quarter higher lower in in was was tax of with discrete a result earnings compared
end higher we provided million Full-year in by guidance, Free beyond, operating $XXX cash believe net Turning was $XX activities us to positively activities XXXX XXXX, cash million $XXX million million been XXXX cash to flow, million would the fourth otherwise by in XXXX million, than was impacted payments our have in that was in prior by was tax versus of net XXXX. free accelerating flow flow which cash full to QX compared year $XX year customers XXXX. reform. collected cash to U.S. and driven XXXX. $XXX operating was quarter the in provided compared by for to $XXX
capital XXXX. our investments Teradata's to support meaningfully transformation increased in planned, As
their as upfront In amount addition, cash options, we new of the transformation subscription-based customers decline. our early collect we our expect in to stages move will
we Turning as XX, $X.X of balance of almost entirely XXXX, was our to December sheet, billion approximately had held offshore. which cash
XXXX, not back buy of shares million repurchase in to used During cash approximately quarter. XX.X fourth We $XXX shares. million did the Teradata
XX, million share of approximately of earlier As of additional authorization us remaining repurchase $XXX total million we an $XXX week XXXX, authorization. approved and give our of a December this had $XXX to board million
term, taxes cash our pay cash world, for plan keep to general Regarding the of a our funds facility, corporate working we credit remainder net of requirements use to repatriation, held to portion around substantial offshore. and buyback these the In shares purposes. down repatriate short currently expect and the capital we
which higher subscription-based and in payments cash than $XXX accelerating million opportunistic XXXX, increasing We activity repurchase activity December XXXX, will was due was as transaction in on revenue deferred be XXXX. XXXX. Total to December into million XX, $XXX of customers XX,
expectations a move I that XXXX, things to our impact few discuss reported me going for Before results let should forward.
and shift subscription our to subscription, including We have now pricing customers and are seen more options, offering. aggressively moving cloud to our IntelliCloud
expect reported operating As how impacted to transactions. XXXX. as new cash to free as XXXX revenue to shift will it's estimate how affect we our in XXXX, approximately more this to a difficult and options, flow will profit, of result, pricing year In bookings our XX% XX% transactions, full EPS as be the shift subscription-based of subscription customers well with much to subscription-based structured by our mix
ASC result recognition, in of been so successful that XXX over recognition versus we'll revenue In transactions we terms in in have ratable XXXX. time do impact, and structuring upfront continue to
impact to While our the ASC thus we of of to have reported still revenue upon lost diligently XXX, X% ASC in XXX, worked XXXX. approximately we see revenue adoption reduce expect reducing of
flat to All rates, that end deals mix expect said, to given $X.X it approximately close currency full to of billion the result, our be billion, results on $X.XX year we financial the month utilizing revenue assumptions and types mentioned up to January difficult total As in XXXX previously X%. to and a is the predict the uncertain due expected impact to year. throughout
from rules, subscription QX less we more XXXX. XXX in and of were revenue ASC XX% ratable We than XX% recurring our business, under in grow and will XX of successful increase than ago. excess than and recurring to legacy subscription/cloud deals revenue Since we business in of in to perpetual slightly revenue, more be the expect our revenue new subscription recognized double we be revenue total subscription/cloud to anticipated maintenance which structuring our deals more in Within days XXXX. total expect upfront XXX% we consists approximately see
to $XXX $XXX in As a to million. revenue QX result, be we million expect approximately total
full year-over-year the continue $XX XXXX, expenses $XX up in year approximately our million, operating occurring strategic $XX approximately which will from that expect million in of XXXX, likely to with by majority million We increase investments to to QX. increase,
non-GAAP XXXX evaluating still Tax enacted Cuts Jobs the estimating (XX:XX:XX), Job While to (sic) currently we the full we of Act XX%. our [Tax Cuts are year recently rate be are and approximately effects tax Act] effective and
heavily Reform mix further Tax complete the and further tax detailed we tax actual effective our and our is of Act on subject rate as guidance the from dependent interpretive to earnings authorities. analysis However, is refinement
tax to slightly the of timing XXXX we items. to related the our rate XXXX, be impact earnings of half in effective the in and As the higher due of seasonality to tax normal expect pre-tax first
currently So effective XX%. estimate non-GAAP we our for QX, be rate tax approximately to
We are $X.XX is to in the estimating EPS our QX approximately to be is to full year expected This non-GAAP range. $X.XX, XXX outstanding upon based XXXX to average full year million. EPS be approximately non-GAAP shares QX of $X.XX weighted $X.XX and and
in bookings, TCore new as you a subscription model familiar and and subscription-based health measure to billing transactions structured impact conversion are of very our that capital already subscription in required metrics to ARR, of provide we growth, operating underlying continue are the plan additional our many as of transactions Since our progress the in QX shifting investments As of Due structure to that the investments into occur metrics results, subscription-based of and XXXX. the show to approximately QX, customer to our free and which plus to in of coming year relatively now impacted the many level remaining given XXXX related during heavily revenue and minus expected XXXX XXXX, out QX EPS variables, quarter timing quarters anticipate year. quarter, be payments compared the dependent and million, is seasonally to including more we late accelerated lowest received first or be $XXX to percentage XXXX of to in than upon our expense beginning better business mix is $XX bookings the such which will frequency new cash million, transactions flow our is with.
maintenance XXXX XXXX. grow transactions. structured XX% customers the expect XXX. But to high And to of term-based excess see we in expect we and as increased expect basis, in of of consumption of XX% XX%. at contracts XXXX services to customers cases as subscription-based of or subscription/cloud bookings ARR which growth incremental within top TCore whether the be approximately existing based, comprises Teradata use mix terms a from in approximately bookings new we we in we that, continue new subscription/cloud, teens expect to perpetual addition XX% On ARR, In grow to
will P&L of align to approach including with we hardware plan transition progress reporting our to are manage presentation also to in ready for is perpetual on and closing, In revenue license our correct, a XXXX This transparency track revenue better resonating better the as software And we strategy that, revenue. we We operator, consulting view model. take provide with customers. our classification new you recurring the follows: how to subscription-based change revenue, our and and it's it's and financial business, working to with as questions.
