TDC - Earnings call transcript Q3 2020

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Operator

Ladies and gentlemen, thank you for standing by. And welcome to the Q3 2020 Teradata Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Thank you. to Garvie, conference Relations. Senior like speaker to now Matt today, Manager would turn over the your I of Investor go ahead, Please sir.

Matt Garvie

call. will our call welcome third Followed by and And Teradata's Teradata's today. financial Executive Steve CFO, results. Culhane, earnings who Chief lead afternoon. President our McMillan, will Good Officer Mark Teradata's discuss to quarter XXXX

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

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

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

Steve McMillan

regions, concentrated delivered report delivered exceeded in a for that cash flow for advanced provided technology joining strong sales our the us for well execution result I'm free earnings performance the and them to share. significantly all good including data non-GAAP revenue, Teradata and well, and assets recurring help the our guidance, very all expectations of results from per in solid extremely The executed and our obtain team We customers for key value cloud. for efforts ARR, delivered across as ongoing everyone. to the and pleased from comes shareholders. QX greatest organization. The the support afternoon, Thanks metrics, Good today.

also directly perceptions implemented messages well. focused address and stepped We clear up market market discipline with outdated cost and as

start testament As by growing sharing momentum a success to of customers. the today's our examples will in I cloud, a with code-first remarks

data a to We and their well-established data are customers challenges at a complex commitment helping starting from great assets leverage base strong scale. solve their a and

seeing vehicle and is customer more A Asia cloud time cloud than hybrid and on The technologies a therefore predictive data business and determine and one our has reveal maintenance value-added We to customer database Teradata platform. and leverage the Loblaw's, migrating regions, a leading truck manufacturer of from key runs in analysis is in performance, its to and ability Vantage example from cloud public vehicle functionality cloud offer in to great growth to substantial are across platforms. operate applications her industries with model, Loblaw's Teradata. a the cloud Canadian in now public multi-cloud large cloud analytics retailer platform. Vantage in of its real will insights data customers. Vantage AWS services selected drive This

on The in its the quarter. the cloud. ability in A Teradata a credentials Fortune Vantage global Azure Next Services. Azure the in significant Europe one, competitive was wins workloads prove result of provider Integration to with CPG large to we and complex migrating are customers connected partnering of our to headquartered XXX the regional team's company

alternative A sales, large innovation on business Azure Teradata its Warehouse queries run high is capabilities and enormous, that environment his longstanding Its chain, outcomes finance, advanced with of reliability. Solutions, reviewed analytics drive Azure. to and retailer performance delivery to unmatched analytical and with and the value global Vantage production weekly, millions American of Our HR is for and Data customer of supply Vantage customer Azure. will expedite Vantage Cloud functions. rapid on offers leverage of migrating Teradata new, scale marketing selected

continue a functions, company. completes price a digital will growing be migration in Azure Our myriad assets as critical that of his data assortment customer the finally, win When The and business data including will and chain we largest forecasting, significant brought customer CPG well customer to is And planning, our and Vantage its when operations. cloud, as Fortune to Vantage finance, its that and supply for science while increasing leveraging support Azure revenues divisions marketing, business, relies organization merchandising Vantage of demand supply deployment. [ph] democratize on seeing, XXX highlighting upon this and management, and remarks major my and drive analytic cost marketing wanted sales, wins and positive all down ARR. but from are through analytics, small entire its use, commence e-commerce. of selection the run a in chain, code and to I'll worldwide across we HR, a finance inventory of significant its to momentum increases I the by cloud just on strong

provide I'll an that fueling are Now, propelling momentum. on forward update us that areas four and

and progress technology second, our First, and innovations, our efficiency. execution ongoing

transformation by profitable to strengthening on And providing our I'll wrap leadership Third, growth. status an are gauge update up on our and future our efforts. a how executive we finally,

platform customers start in makes great quarter we for to public of providing vantage all flexibility easy Cloud. code data course, risk of clouds, Teradata or customers. Google Let's is the easier, our new with software cloud, we've pricing three general top offerings to the with of faster, to the without consistent utmost on Cloud and our hybrid technology. the with made a options. with cloud Google across data availability from our for cloud, they introduced multi flexible is customers the benefit need providing analytics lower makes It's migration milestone We across on Teradata all customer with flexibility And only important environments, prem. It for Vantage This a advancements analytics had scale multi-cloud hybrid deployment provider compromise. the wins. code-first it environments the now in

Our option for while provides pricing is the cost [ph] delivering scale. class blended suited lowest enterprise predictability usage building and of and ideally

with people questions cost recommended see Many fast they for consumption advantage model, are either cost when a cost get help they organizations the Our on to cloud surprised help our risk-free usage-based offer. pricing Today five visitors Businesses model, status, in understand is inaccurate the blended pay-as-you-go the cost about customized started affordable since a option an one we cloud leveraging pricing calculator based cloud our model. consumption or consumption customer make on down a try scale. and cloud consider pricing answering wholesalers sizing with change these their one worry True in introduced further consumption taking the pricing can resource cost consumption. estimate or We system perceptions inputs. using of will to including consumption a By cost We we code Teradata website is when report now simple on the time Teradata leading new how realize company's escalate option. cloud. utilization, Company, to cloud, manage it [ph] their in the the new hardware get behalf. to Vantage never option Vantage the the advantage world's Value Visitors Long customer, Teradata. zero only of of

goes customers has cloud cloud, leading As cost because optimization management. Teradata what scale query of per industry in and in lowest the workload the our the query

[ph] the a with remain native priority. top As cloud, released AppFlow factory. capabilities, the services three the We and move base hybrid ensure recently continue data we integrations that their to as cloud manage further Spark integrations cloud AWS and accelerate on multi our cloud Vantage cloud-native connections to cloud. extend extended Vantage with roadmap platforms, and workloads on We Hive cloud customers to

from example, can customer an customers and as profile call can in media customer the our with them information well that build opportunity data data help and Salesforce, to churn. As and as and sales social and reduce XXX logs vantage a increase complete from support combine ServiceNow customers their sentiment

of quarter analytics cloud-based our technology. advancing data So, a platform overall, great

partners Teradata, we allocating rapidly assured growth data is just to cloud. their quote significant of firmly to increase them who continue escalating year can a movement a pace develop we the This and the need This to that and to a leads it You future. development Teradata. as research businesses without believe that And with we keep massive leverage proliferating, will cloud help leverage opportunity data in will for organizations our forward, the need and amounts be up three tremendous At enterprise from of Data will costs. consumption ago. the initiatives. fuel is growth their their to will faster and believe approximately we here, and redirection be will going quarters our

to business and to and expertise market. our scale Teradata, effectively Teradata connect massive As and look We we unlock exciting customers cloud and to multiple that enterprises reconnect to value. at technology data, test roles have we them solutions, forward help that every proved cost day continuing leverage best in or believe leadership to real

a momentum, also the our Texas provider real is time, care virtualized their Health Vantage that is solutions. article customer now analytics particularly are models share regional and partnership our we While customers Resources, great with healthcare team be patients work improve [ph] data, on-prem cleansing in patient orchestrating we using building COVID-XX. options predictive TelBru's predictive Teradata care. important our will right to customer happy using during this we And expanded are here patient drive how capturing, environment. There's and cloud The seeing decision to to to the add in IR to

company, initiative continues own we in industry last made partner transformation, technology to Telecom the platform. as execution value during strategic In with Saudi the continues well partner XX Volkswagen telecom months. an both and government expand the Complementing leader expansion Middle ecosystem, a industrial as customer advancements and the analytic. our address support will has management, expanded telco well drive Saudi Teradata QX, Teradata we Teradata and in of to became innovations, progress the analytics cloud. the for quarter. over healthcare capacity platform analytics a and to our in the the its its as adoption in success with help to in Now tripled our as COVID-XX correspondingly Teradata its programs direction their in National The digital key of East, leader being

We will Also, stepped increases actively cloud-based in plus on plans. and to division. platform marketing we our [ph] of support productivity by to this market cloud data optimize open awareness production analytics up drive processes, our Volkswagens Volkswagen providing have IoT increase

declare proud building strategic a our into differentiated address and asset differentiation and to we unlock misperceptions of our publicly are the We businesses remain awareness turn multi or committed around helping and data possession. they leadership market, value are hybrid cloud in as as vigilant

continues executing the as cloud XXX Our of XX, team analytics to recognition, FinTech of persistence remote ever-increasing compelling firm's cloud our and and industry unprecedented sessions resilience customer to also customers with Netflix, this organization first the offerings. of seeing globe. leading their platform. in dedication engagements keep our the note safe arrangements We value decisions, and financial the acknowledging our at and Teradata with taking services much And our as the We're recognizing are I'm opportunities. executive by on people virtually Rankings and executive focus are engagement follow of in time. great very data proposition, pandemic. leading has of to IDC to the customers top who work importance supplier our Inclusion industry. number technology technology these received prove level were around its outstanding briefings during as our proud named greater data-driven some and strength the We're And the the

IDC we industry. remain dynamic and commitment need support and you financial MarketScape our security an IDC recognition the named Pacific flexibility this prioritize to in analytics of platforms. noted know, good that and providing hybrid in us, best data vertical major for match As Teradata Teradata analytics also companies class to data performance remain its for Asia Analytics steadfast services important this workloads. and vendors that a cloud In for cloud for research is

recognitions out, for from pointed and strong workers analyst further this on year. Forrester industry Gen the a data such, Teradata the operations follow These and governance, Wave As management often in large earlier enterprises concerned Z analytics score look with solutions. recent

deployments, offering fact, In current noted Teradata choice, the and Teradata category. availability in prominent score hybrid received that a for report The By critical. remains highest scalability the especially for are

Strategy in to We Now, strategic as we the have Officer brought drive accelerate help Teradata increasing and how cohesive I'll has first organizational joins to and our of we accelerate ranks, Nicolas Nicolas a to our as growth. record profitable operational strengthening are to turn front, Nicolas progress cloud Imperva success performance the proven rate ensure of and and well-defined as our on has executive this Chief Chapman, driving execution, an and plan, on we cloud planning transformation momentum. track us will from made solid a and McKenzie. our company. through strategy we build

Nyquist, recently all We'd thank us centered years Molly ago a approach. Molly of drive our role pleased Hillary have we and Chief named Further, congratulate her analytics our who as into also to this her service Chief Hillary get forward. our for joined outstanding Laura leader technology data I'm Teradata technology experience with Teradata innovation our appointed knowledge differentiated deep will lead objectives. Officer. a as Chief year Teradata, as Laura General XX in together and our help and of to and cadence Molly as appointed former Treese, own just our delivery, the a our Information keeping Officer, judgment and brought customer is aspects like from Security seasoned under organizations dedicated from a we promotion organization we've Additionally, accelerated as innovation of IT Ashton, Counsel. critical in Erica we retired PTC will our business one on cloud a Product as Erica use has exceeding very to advance dedicated to extraordinary guidance ongoing Legal will officer, Hausheer', company. that of and an customers, first technology. customer of value to ensuring and

and efforts very market just confidence to inclusion our we as help best gratifying we in Enterprise. Brown, rank. leadership recognize have and great QX to forward. reflect going our I GTM data enhancing a course, great the and to and Of to Improvements departed the These who through too the joins contribute diversity Hewlett-Packard best business. drive forward next career he Scott are Systems of us to FinancialForce. plans incredibly success. as Erica from capable using to hire her It's Xd our these move our us began continuation into do in definitely sales our organization want company our culture, to our talent commitment chapter him wish their go-to-market success, of We our Officer, I CEO the President our and in ensure in opportunity. Revenue Chief becomes his the execute have seamless team company of executives

in progress an have search CRO. We executive for a active new

reductions, to better is the every update through their better what and organization just of rationalization, way our profitable efforts. a code-first in a to company pass headcount including I possession [indiscernible] have Before result program, therefore that we more In and will real the more that I corporations would undertaken QX, call recent costs. so and like reviewed And the investments programs, encompasses Mark, align cost, operations non-revenue to generating for estate the program our a continuation on transformation separation cloud reduction has working voluntary provide been in growth. end to and move to and to an initiatives. This voluntary

result Our optimized efforts as model financially in a business healthy we should XXXX. enter for more footing

line. from under Mark realign and more bottom strengthen accelerate structure our to to our our hear cost on business investment actions You'll the

changing And and has the businesses enterprises near architecture manage to become do Teradata's need that, of resulting flexibility the platform we they with ours. tumultuous is portability gives global As analytics data to future there able a abundantly environments. To better end to to through agility from multi hybrid, data. situations. the of that no unpredictable speed be dynamically cloud year and than the such adapt pandemic, need clear

going for built that, is platform call Mark. multi to keep to momentum Our strong. the the we today's And And going are hybrid, cloud I'll with world. turn firm

Mark Culhane

and quarter organization, these delivered with reduce realigning cost cash And non-GAAP recurring investing streamline the Thank and actions our while management further you, a earnings cloud flow results, overall growth, company expected taking Steve. ARR as making per strong I to share that well report to and R&D everyone. to am and strong structure. initiatives, accomplished We in first our good generation. as product progress afternoon, better financial support revenue, free than pleased our

of a basis, such items QX which Before key and I compensation release. our continue Teradata's expense, earnings to operating comments elements highlight non-GAAP make our identified stock-based few unless as in I want a stated to results results, otherwise clear on reflect that special items my other excludes it today

IR of delivered earnings ARR pleased of year-over-year. QX segment million, with expectations. balance EMEA growth recurring at up drive document in was metrics our in commentary were ARR $X.XXX X% trends the total expected which guidance came website slightly ARR revenue increase the be our in $XX regions, the $XX generated can this our of helped recurring over with discussion exited APJ and found million strength revenue, which We and at we key billion, revenue quarter million an incremental saw Additional and the the range, on quarter, and XXXX. from year. above X% We in prior on was Perpetual as ahead investor.teradata.com. particularly $XXX and We in a

to mix expected driving deals expectations, within to margin increased engagements varied higher margins. on our revenue gross consulting we expected, of business refocus better our the drive base. XX% as customer from consumption declined continue Although than software as Consulting to

certain pandemic, for their as engagements. to from especially had consulting we as cancelled impact COVID-XX they continued continue manage the on-site spending, ongoing In discretionary addition, some projects customers

quarter, the uncertainty fourth the our consulting COVID-XX. decline given see and expect to around in strategy We ongoing a year-over-year continued in revenue overall

of points up from margin XX XX of We in gross don't from sequentially into up XX.X%, to one-time QX. we QX. XXXX quarter basis the a to expect over carry couple basis third including was and gross favorable revaluation, points Turning from FX QX, which items recurring margins, revenue benefited

we an be revenue annual basis addition, momentum a margin recurring In increased on are to cloud margin revenue QX expect year-over-year. and to expecting recurring gross be headwind to our our flat gross

are on As came ahead to revenue we revenue ARR from XX.X%, margin at expectations a well have perpetual previously impact our recurring customer than basis. purchasing more US gross Perpetual gross hardware accelerating term margins of stated, cloud in incur large short a momentum. happy by driven we

Consulting We was expect management, year the QX realization X% quarter cost perpetual helped improved improvement revenue QX price level. utilization, prior versus XXXX, in improved XX.X% third significant gross be margin to to similar margin of and as drive over year. last better

We the to increase margin be to continue gross and The to continued ahead was year-over-year of and expectation. expected well at quarter, margins as came fourth revenues revenue our revenue digits driven in margin, in to expect up by double the in away basis from the and XXX margin low in mix for favorable sequentially improvement Total points consulting the each year. margins XX%, consulting recurring as than and perpetual revenues. better gross category, shift higher lower

sequentially expect to and margins higher points than approximately the XXX basis decline prior gross be We QX year. of QX

expenses. to management. expenses focus as came expectations, expense as to our than in primarily Total year-over-year, certain due Turning to shifting X% operating and on QX, down were expenses operating lower well

other to ROI reallocate towards offers, motions, spend COVID. during virtual continue go-to-market our We initiatives areas and marketing modernizing focus cloud higher and redirecting our our to events and sales

commissions, by motions. expect initiatives fourth sales be sales higher well from our cloud sales up modernizing operating in primarily go-to-market as our as investments expenses and driven We quarter sequentially, and marketing our to

of structure, opportunities and first investing our ahead of our organization, excellent particularly revenues had was We year, year contributed recurring flow as million, $XXX the growth We execution which beginning cash cloud. our optimize free evaluating in collection and strong by well the in expectations $XXX million. well flow initiatives shift cash of as expand are organization. while to and cash cost market, our prior cash free quarter, our Free in of million, by the accelerate million full an go-to-market actual our cloud in transforming exceptionally driven our $XX of year the flow third quarter to our free model, to opportunities flow continually year-to-date in subscription $XX

opportunity As first, to company the Steve mentioned, and be cloud on for for and agile Teradata we more took to position our capitalize profitability increased realign growth, term. the an long initiative

took our realigning employees, company, for we certain action which more first expense voluntary as to flexibility, gave program The was reducing as a us well offer the level. separation

realign our The our second structure. program our reduce to accelerate in action expenses cloud our force support cloud, first talent investments add and expense initiative that reduction will was operating and overall to involuntary to an the move enable to new us

given addition, in is especially are In virtually footprint likely commonplace around working world, real we become more rationalizing that future. estate our to the the

estimate in reduce We to incur of dollars charges another XXXX, actions, will of to future, to opportunity more provide From expected approximately $XX fourth $XX our million Cash initiative. We of of balance we annual $XX efficiently realign $XX of majority operate these quarter in recognized the in for actions to $XX used QX to topic approximately which more million, be is restructuring the million. XXXX. restructuring this investment is cloud expect additional currently million to and million approximately commentary the $XX to usage will and QX on actions it be the is these remaining of with QX to expenses vast these million and be million, was but expected approximately which XXXX. recorded in $XX approximately in by

Before considerations, our further considering evaluated. XXXX and which any both well initiatives for any of as currently reduction are reinvestment towards as strategic beyond, cost being

commentary provide QX on these on in our will call XXXX. early topics more We

full the another As full flow free strong approximately in for QX expect to to increase cash cash payments cash in our and of slightly year, which significant our $XX resulting flow cash positive, is free be cash million. flow be QX, free a our including flow a result in restructuring prior the cash breakeven aforementioned QX over higher our $XXX million year year slightly to after for we free of the quarter to flow generation quarter QX, strong expectation

with Although are disrupted our realign COVID-XX, team adapted customers and first. to as pleased our has well employees, customers, be been has cloud as for company our quite how we the supported and

Turning and year pipeline based the year setup the We we on for to remain guidance. strong came for quarter. the optimistic into see a fourth

expect range in million million. the to $XXX revenue of recurring we $XXX QX, For

expect higher We mix of fantastic. a QX, and revenue ARR cloud in recurring is which

However, cloud. But come margin. happy favorable short-term impact at take for the gross shift it does we lower to to are the the margin

addition, will and in In higher QX sales go-to-market related expenses see expense operating we initiatives higher modernizing to compared our to motion. QX, cloud commission marketing and driven expense and by our sales

Lastly, our benefits margin to impact from the predominantly a and tailwind expensive QX. be restructuring not and activities in XXXX will

full rate account, XXX to year We our shares. XX% our and in average continue we count non-GAAP expect $X.XX the to million full approximately all EPS weighted Taking of expect approximately year range. to into share this be tax $X.XX

higher ARR expect ARR, another expect grow ARR X% of In incremental or growth full the and strong terms quarter to of for we year.

operator, commentary guidance take XXXX at providing in when we year. with of are the the prior anticipate ready As that, we years, And results and the to questions. end we for report

Operator

Instructions] Thank question from Katy Your Stanley. Huberty comes you. [Operator first Morgan from

open. line Your is

Katy Huberty

closing? revenue cloud have fourth impacting adoption help you. anything results? accelerating that Is Mark, guidance the thank strong of about adoption, can up. follow recurring seasonality. there the imply quarter fourth deals your us normal know, comments Steve's comments the quick afternoon. you reconcile bullish a really Good Vantage doesn't on guidance third necessarily in the for with are when And the you cloud terms sort quarter? Yes, timing in then of of That's I quarter, strong fourth quarter

Mark Culhane

when we're consumption did of conservative Yeah, from not of whatever at it to can take first take contribution seeing as cloud the as on perspective, in that cloud, QX be the Not all our working from revenue you much can start it out you of and October we're lots dates in consumption to laid approach we of exists it's in QX. starts and the that when momentum expecting seeing revenue in QX QX AR we're close further. ratably, and just the X, all, in vary flow out, we you as ARR the model deals, a in have consumed terms well, don't end the you interest taking we well. start business and Clearly,

So we in our taking it's overall, are we about see and posture QX. business we're bullish a for conservative what

Katy Huberty

And about of for all you XXXX flow, free in credibly as year. trifecta which Obviously, the But this this flow certainly numbers view to into year, financial not when think that think really And Mark, has do in the that EPS and free we see you coming yet? year metrics. growth, been it understanding could cash inflection you we XXXX? saw strong cash you're revenue, guiding specific

Mark Culhane

EPS, prior to $X.XX. metrics, given we've prior we our ahead probably year, $X QX you headwinds of you year midpoint Well, the we full includes dollar that, US$X, our the know, $X.XX, FX puts the for $X.XX, all free of and well, of flow $X.XX bottom cents Yeah, compared at said $XX. the sort along, of at even guide, know, in lot cash our the of certainly the that for thought XX becomes across a

profitable And the So, the well as growing focused margin believe growing as yes, on we'll we of growth, out we're line the profile QX top on call. lay our business. that

Katy Huberty

congrats quarter. the Thank and you, on

Mark Culhane

Thank Yes. you.

Operator

comes Your [indiscernible] Bank America. from of next from question

open. is line Your

Unidentified Analyst

misperceptions that $XX said and for EPS there analyzing efforts the the more And come alluded expense we of some guide calendar be quarter through. that million talked that also we about Yes, something you than incremental cost. performance $XX expense suggests Mark, Steve million thank mentioned, was including maybe into had 'XX? marketing previously. should rate or to fourth to this I you that such things, club your savings Is so know $XX of you. that address view as one a what you about million,

over trying follow the whether to have going And up? just moving marketing XXXX? here So a think incremental sales or pieces and I not is this into continue through expense to

Mark Culhane

so things. Yeah, of couple a

much you my mentioned in I came anticipated. in remarks, EPS we know, As QX higher prepared than

of have been EPS thinking impact into gross out expense that Better gross QX than of in that some scheduled of in that's going out shift margins, the clearly, a was to that margins on at happen to delta. were sort expected QX of things XX% having an now QX. Some the expecting were not we QX, we're QX,

actions annualized is doing across of it both not given prior that is - and next will some are our we and things next when the year. forward. doing. EPS to guide what the rate potentially reinvestment QX the in get to expect we've all it That we're year why date, we're And, not. taken to Clearly, there as in do we'll weigh run to QX. one-time of number you But where has are that adroitly be those call. things out We going the pointed So persist savings that any out, QX our reflected

Unidentified Analyst

or terms be cloud these metrics measuring on be road know, disclosure Thanks, Steve, [ph] terms ads new increase for or to share sort here? might customer or of of these ARR metrics first, incremental GCP investments you the that Okay. you Mark. able maybe some the And will specific any what's investors expect other investments? of in you down success in And cloud should how of happening

Steve McMillan

our going base. are hope to the [ph] looking existing we stick in revenue us don't then, close also have the the capability Vonzi but in about manifest net consideration metrics and of that's adoption the cloud when customer we're you you yeah, giving And next cloud think you're Tera And having But to looking recurring it's Hey, accelerating planned with know, the know, strong investments, really a really, workloads doing And go you our term. at - new that's them have and customers well. I that us. should a I a growth. at. through certainly incremental that's discussion we'll business. been around as cloud with we We year, short key disclosures anything Mark for cloud,

Unidentified Analyst

Okay, luck. thanks Good a lot.

Steve McMillan

you. Thank

Operator

from your And last from [ph] Barclays. Vancho comes question Reynold

is line open. Your

Unidentified Analyst

this on [indiscernible] a Hey, first the is quarter Congrats off.

a the going muddy, cloud being little guess a cloud like I there, billings. feel I forward, it number, with, know, in You ARR bookings the of more bit focus numbers, with

forward, going how best like view metric? a normalized way the Teradata what's doing So I to is guess

Mark Culhane

the to Steve Well, part I'll can of take add it. And first it. then

we shifting from customers, of mean, workloads and cloud, to moving cloud, looking that's whether new the net how are customers, much moving clearly ARR so is I the forth. and to So at existing

the the cloud we year, what's ARR in ARR look across itself quarter. the metrics, to clearly, at metric, augment Steve alluded At balance versus And whether the happening our managed about going scale point from subscription, what to, in manifest only to we'll to which start to metrics, at to those rates, this end are strong components and of as specific of strong, and cloud some Native talked some et down we're the But see we're already XXXX. as cetera. doing maintenance, upgrade momentum as prospects what of we represents with So only. services, cloud every customer it's components that, our native we across seeing providers. do break of what base our only, in we capable

our Stay so excited work lining out up. we how And tuned, we're and things through when get about XXXX QX. we'll way are

Unidentified Analyst

seeing cloud the I cloud great. guess on metrics. staying forward topic. All Yeah, right, look those to

how you new be you give cloud, on this a the before? have to would customers as are using Teradata? up never on-premise If customers mainly cloud kind that could know, well? that you us know, picking Or moving shifting some customers workloads and the type And, changing more you color are you seeing, what targeted bit of is you know, are model, you're might to the little the customers consumption way of

Steve McMillan

I'll elements existing are I outlined. just saw think seeing we're our customers. tremendous that. the you And all we in success my with And that some of seeing that we're opening comments take of - you

moving net wins model want mix cloud lot clouds cloud of customers sure that are our to cloud. moving journey. a well on-prem on as as migrations, workloads. consumption a really aggressive - we're as being new less to on take customers we because pricing that the given we migration And is friction and front, So our the And really make essentially

models, the and and [indiscernible] And scale and customers both opportunities really in and see real cloud, the for the out and business both Teradata operating technology our commercial opportunity real with existing experience capability advantage. as so delivering differentiator advances we our performance of new try providing to

Teradata in it's is the on-prem, that there, can that sure - cost cloud, executing efficient One the at make fantastic that when of or means are workload and our workloads query either point, client using are environments the customers either effective in cloud that public their and out critical the yeah. Teradata management. most and on-prem, is that optimization What things in or our is

a as got incremental the phase heard us really we've that with does really that. are prepared consumption good think remarks, advantage that customers option pricing to taking [indiscernible] go, you has give that affordable usage of I And customers in examples of having us. capability, get new you capability some So

Unidentified Analyst

you. Thank

Operator

the this There turn call are McMillan. Steve over time. I to back no questions at further

Steve McMillan

We Thank increasingly the very Customers data strong keep you ongoing there. strong team and to for at year we quarter and much, plan analytics adopting pf note. performance made really atomizing good And task the in proud the delivering across in a model the questions. I'm a execution going up And the our to progress company. hand platform for success. on for and on all our business a you operator. future the Teradata stay finish focused solid financial the momentum we're all cloud transformation in are that thank and our

everyone. thanks, So

Operator

concludes participating. Ladies you and gentlemen, this today's call. conference for Thank

may You disconnect. now

Teradata (TDC) 5 Nov 202020 Q3 Earnings call transcript