everyone. Thank you, good and Steve, afternoon,
which today basis, results, reflect excludes and release. other in want such QX results our that, operating special as expense my a compensation our items earnings discuss stock-based I items on stated to indicate non-GAAP I Teradata's comments unless Before identified otherwise,
commentary document completing that to Investor model. to the segment at I another I in web pleased trends and page a model to per effectively earnings in strong impacted better-than-expected delivered finish Steve's global a quarter free had earnings perpetual our can share pandemic. a license our investor.teradata.com. with by that found XXXX on cash flow, report share Teradata a key environment and the revenue, metrics recurring be Additional from on license Relations subscription am discussion pivot the company while view
the COVID-XX. of million and $XX the of growth share We growth, ARR. for $X.XXX flow the year also down $XXX quarter. and year given at growth subscription ARR, in with fourth XX% We was of the in We as and billion guidance represents million beat year. guidance which The ARR ARR X% earnings beginning full follows: the of incremental despite our impact year-over-year breaks delivered in cloud original billion for exceeded ARR ended cash free the per $X.XXX ARR
better As $XXX million and our Azure Teradata Steve the disclosing for XXX% not a XXXX. of cloud, end introductory does Public is in in Public our increase noted comprised insight business his of continues was Cloud which from AWS, and into cloud ARR give the private running totaled public are to include XXXX, public remarks, ARR Vantage on cloud-related investors we time. first ARR cloud the subscription Google be of to included cloud, and ARR. the momentum, at which cloud end
amount million The focus We subscriptions move are ARR reflects not on-premises XX% cloud. including other The cloud. of is $XXX down to and private private maintenance, cloud and as of our on million represents and our remaining and the public and Cloud-First subscription remaining software upgrade $XXX strategic year-over-year represents rights cloud grew XX% subscription strategic year-over-year. ARR, balance
recurring sales year-over-year. increase in to range million revenue. and consistent positively $XXX to above recurring to we the revenue. and million which the X% execution throughout Moving in recurring generated contributed guidance our In revenue, both was of $XXX $XXX QX, million quarter, ARR growth growth represented Better-than-expected
revenue Moving business higher-margin refocus consumption customer as that XX% as software also on expected, to declined our our on drive to year-over-year, increased consulting consulting we revenue. continue base. engagements within Consulting
canceled In some impact pandemic we certain on-site addition, to especially discretionary as delayed consulting from COVID-XX experienced their as engagements. or they ongoing the continue spending, projects manage customers for
the over stabilize have rate at We expect start consulting lower revenues than we to during years. significantly last experienced consulting to decline expect a XXXX to revenues and few
XX.X%, increased increase revenue our perpetual $X and revenues margin during due The cost margins. and primarily The up was quarter XXXX our earnings basis improvements, our driven gross aided gross in margin sequentially. the points the from XXX from improvement to up revenue and to fourth XXXX. recurring dollars savings XXX came announced cloud year-over-year as to in recurring the and basis basis continued favorable Total the away business. million XXXX about QX up Turning shift margin margin call gross Cost well and Recurring higher-margin in mix and was in fourth quarter recurring gross perpetual actions revenue subscription by year-over-year. also gross will in margins was gross of year-over-year. XX XX.X%, benefit gross our consulting margin from of revenue lower-margin revenue as at points points revenues
recall, we revenue from QX. had may in to recurring gross QX decline expected you margin As sequentially
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moved with consulting consulting our enable we to to variable restructuring future partners. our consulting third-party actions, of of and profitability cost more part improve more have business structure, a in starting the As XXXX
operating Total of were The expenses. additional incentive our strong year-over-year. given X% driver were operating increase to plan expenses this performance. expenses, Turning up primary QX
decreased reductions expenses, to we the On we annualized $XX restructuring result Excluding on million plan expenses basis. call, announced million were between efforts earnings QX operating expected slightly that incentive total to disclosed year-over-year. our an expense $XX in
We invest and portion expected increased into initiatives Cloud-First to investors the related remainder and a these our go-to-market savings of through earnings. return to
resulted As $XX actions this of taken amount, operating million benefited an update, the total Of approximately fourth savings. quarter. cost $XX income approximately in in million the
We when impact guidance XXXX get shortly. on I discuss will to the
plan growth EPS call, earnings the revenue on exceeded last about cleanly by $X.XX Earnings our quarter. Turning expenses, and previously as beat $X.XX earnings cost we as of and margins offset about lower consulting the expectations incentive $X.XX per provided We share. primarily of guidance actions range partially mentioned. share from to per to QX $X.XX discussed $X.XX of from better-than-expected generated the higher
favorable of cash working the had in of another free collections to free cash cash by free capital we the year $XXX to strong of of free quarter full cash timing We fourth driven flow other flow million operating higher provided the at ahead flow flow generation Free flow. million, of well differences. cash $XX annual was guidance solid and beginning the Turning which $XXX cash quarter year. contributed million, margin,
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into account, restructuring we flow even payments better However, after cash free the taking our QX was expected. than cash still
guidance. to Turning
X our Let's start by underpinning XXXX assumptions outlook. the key discussing
going like inform financial mentioned in 'XX of to QX financial align are business the would and introductory starting be forward, principally services we ARR Steve related revenue I nonrecurring revenue how a services will as First, To revenue change that you recurring reporting into services. delivered Steve better reporting out these remarks. in of and reclassifying our his managed consulting with consulting managing is
rather recurring In software-related revenue and other third-party renewing and will revenue selling reclassifying for third-party addition, us, software or will third-party revenue of revenue be into software change we and be reporting will be to The focus gross the but no not out nonrecurring profit to ARR result as total a reported total or partner. in gross change will previously directly driven percentage. margin
at and are making to to public reflect page of change. XXXX, model. of Steve year, a moving After prior the ARR as to document you metrics at grew like margin $X.XXX the are I still of reflecting important of XX% of by third-party end services the ARR, disclose rights-related Relations cloud-related software of amounts $XXX margin this changes. and web that component total And cloud maintenance December of million and XX% the was our regarding million forward. to year-over-year. managed and revenue due reclassified total; and would We the million subscription impacts earnings discussion provide reclassifying XX, ARR category, upgrade which information increased these from See of on more for this company better ARR subscription consisted gross and revenue our software over end ARR, this the decreased change of on the the XX% Investor driving which focused and following: $XXX with which shift and expected billion $XXX XXXX, it the ARR,
to to look we platform as while we amidst the focus cloud growth protecting grow our demand base for go-to-market awareness our Second, road in cloud map, ongoing our and our pandemic. continue the drive and our accelerate product
and momentum we anticipate that to base, We in enterprise the customer cloud of our them as the Vantage differently as historically we directly instances some to could our from our volumes what of committed we P&L on-premises. have more the many cloud in ARR customers our move Given rather that than or quarters total plus may choose create through done high-end revenue and expect our associated with our providers the recurring software cloud in use through subsequent behavior the public or of of recurring base customer cloud, than us. purchasing with ARR variability that Vantage will purchase our will contract and infrastructure. flow cloud rather versus This revenue only
gross However, margin our revenue to a we to for higher as public are has versus on-premises. that and is it cloud in consume elastically Teradata happy customers easier the that Teradata, trade-off for take recurring
variability ratably, to as more cloud. And ratably, in create we Additionally, recognized also our by well more likely as customers than which not as of contracts on-premises the and we on-premises quarter. change in necessarily revenue creating with is may report may in it will thus, our which the expect workloads and customers, of more Furthermore, customers many recurring revenue by the recognized operate other recurring will consumption-based we revenue be business more our on-premises variability Vantage that cloud, be will the move result in could report quarter.
to said, year-over-year. revenue, ARR percentage our With quarter. expected not is range revenue to reclassifications in as forecast we public cloud ARR that the recurring mentioned, guidance for mid- to single-digit is XXXX result, I recurring recently quarterly is grow the XXX% at especially considers anticipated providing a year-over-year. which As grow more high a guidance, be Total our annual basis. follows: least will Therefore, difficult it anticipate on we to becoming by
in the to recurring grow We expect revenue total single-digit percentage range year-over-year. mid- high to
the expect at We of We in the first revenue to be $X.XX midpoint. least the single-digit earnings we expect expected flow $XXX since growth range Non-GAAP growth low which to year-over-year. would be in $X.XX, percentage free anticipate XXXX. are time grow per share And range total XX% the cash for about of total revenue to year-over-year million. at
I'd provide XXXX on you recently which some the our reclassification like again mentioned. Now to to color understand help I business, considers
We become expect a meaningful more part cloud to total of public AR ARR.
Within the total versus revenue continued revenue by other guidance we provided, we revenue least anticipate in mid-single-digit perpetual and year-over-year percentage and at of half reduction XXXX. in a consulting reduction XXXX
gross percentage our is XX% as XXXX, low our low-teens expect the We expected in given to range. the Perpetual other cloud. recurring to be approximately to to in margin we the And also significant same the total to revenue margins be range. margin gross XXXX movement in and in be margin expect rate gross and range be the gross consulting in mid-XX%
by sales XXX drive to in capabilities. margins growth improve expect increasing operating we drive investment while model XXX to basis cloud profitable our in operating as and to R&D efficiencies continue We points our to
million and go-to-market the annual cloud back rate cost majority reinvested into As are expected previously discussed, the of $XX being savings initiatives. run R&D of
cost the benefit to savings quarter top to a is the payments basis, This anticipate XXXX. the flow restructuring on includes of $X.XX The XXXX the We EPS of cash reduced fourth the for being of of However, the $X.XX $XX Non-GAAP reflects million mentioned. quarter. anticipate mentioned discussed. previously $XX and in million I earnings cash per approximately free $XX first net on is during we paid just EPS. guide share recognized benefit million I by of
full to XXX be opportunistic diluted buybacks year be effective non-GAAP to tax XX% our about plan outstanding. million fully approximately during assume shares We expect for We and the rate XXXX. share
from grow to are expected executing is again a focused or of ARR QX cloud to sequentially in end public Public modeling the Total the full pattern. we million the lower few the we year-over-year assist to is which XXXX. mentioned. XXXX, you higher about revenue with cloud against increase to but which million with ARR. our expected the $XX XXX% $XX wanted considers guidance, markers historical with QX sequentially, I your on million $XX quarter in previously Or to reclassifications you provide 'XX from more seasonal first of year is While consistent be
QX from the 'XX decline than was rate to prior it be However, revenue from to years. anticipate total less for 'XX we QX
revenues during to XXXX, While the the range expect we approximately EPS that, course questions. shares $X.XX expect a in $X.XX, consulting And we ready expect year-over-year. operator, outstanding. fully of non-GAAP XXX to diluted stabilize are we decline with to And we million with XX% of take
