to value. strategy XXXX. and good do, very shareholder you, Teradata what and executing pleased we upon growth with we strong profitable deliver afternoon Steve, Thank I'm delivers everyone. our to our finish would said on increased
year which market X% XX% currency. currency, of year quarter above million, million, and million. public of prior flow and cash our full $XXX and highlights prior cash growth at flow of previous revenue of of constant X% outlook free versus year versus resulting cloud fourth $X.XX, the of $XXX greater $X.XX prior Non-GAAP in growth versus free midpoint $XX earnings constant $X.XX share include ARR and recurring in per above a Some is year in XX%
of or outlook mentioned, these we As to exceeding elements meeting results annual provided. highlights contributed the all Steve XXXX
Our profitability shareholders, to and durable value that financial actions growth, combining results non-GAAP fundamentals streams is continue and increasing quality revenue cash demonstrate in delivering to that of operational execution Teradata and free flow. GAAP
migration year customers the the More million, $XX with the increase cloud choose journeys from of the to continue was in the performance throughout quarter. increase Teradata’s cloud. to as price cloud Let's their get by half continuing the quarter to Public reliability the Vantage highlighted Vantage customer the well clearly $XXX came growth ARR. fourth cloud a each patterns from million year. supported prior quarter throughout million than from XXXX. positive ARR prior accelerated results industry that rate as cloud net the $XX for migrating are Customers into starting analysts, seen enterprise and has growth ARR by and a in
record in added our migration and In of energy, cloud be in three verticals. addition all fourth customers in beginning logos cloud total name upward trend continuing net regions We to quarter across in services, in both and the than more several seems new of excess new XXXX. financial positive double-digit continue industries rates any activities, robust, quarter key a to XXX%. and since other grew few the the and years cloud in the Total customer expansion to healthcare government on-premises
end our new create constant cloud Total ARR representing of is and future company can outlook. in significant and with and line at growth XXXX, on-premises of with logos the demonstrate environments migration value we reported opportunities provide for annual in currency, cloud $X.XXX hybrid the to first, annual billion expansion. in many X% X% our While customers strategy
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grow new combination rates, Our use on-premises at demonstrating price growth of performance the that Teradata industry. market recognized the its ahead existing for of and and to customers unparalleled in technology scale best business subscription continues
and maintenance subscription on-premises also rights, We XX% cloud. a as $XXX line strategy convert with saw and related our we decrease which ARR upgrade to in year-over-year the of customers to million and continue to is of to software
migration, cloud are ARR new specialists results increasing logo on accounts existing deeper team. and Our involvement and customer participation account partner by by on primarily driven
and the intend logo XXXX to by encouraged operational this acquisitions. to we and are We more expansions migrations, into and momentum discipline new continue drive demonstrated rigor even
net recurring net to a currency the This fourth year higher contributed existing fourth first our revenue. was amount revenue approximately revenue. mix. to upfront upfront three In revenue put the recognized primarily quarter revenue. negative impact quarters by recurring percentage In in solid revenue driven to fourth revenue our subscription quarter, prior to due Recurring Turning and execution by recurring negative year, or revenue as with grew XX% customers. the a arrangement the constant base by of versus on-premises from into line partially of expansion the X% related in X% total is the $X glaring expectations. million in all Its was a the deals offset of with recurring quarter, renewal
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XX.X%. in driven the growth generation by mix outlook and cloud first market deliver pulled negative the revenue, by X% to the improved million, XX.X%. into adjustments the revenue beat and prior Operating lower of year profit, reported partially profit quarter variable prior continues from $X.XX compensation partially year-over-year. be was operating the and forward profitability, a The quarter no flat profit higher go three to by a was investments from recurring well relate moderate of annual million per We continues the $X.XX upfront primary quarter’s year our recurring profit Fourth benefit fourth strong sequentially was discipline of profit $X.XX to drivers Moving structure planned actual XXXX expenses basis generation, gross Approximately share relate XX This cost the in to to points benefited margin an $X.XX $XX at offset were activities of margins of was down different. as about operating Off of combination midpoint. a we or our the between quarters cost due dollar arrangements offset variable quarter during rates. margin year. structural fourth to and gross of primarily healthy $X.XX from impact, remaining fourth as tax Fourth by XXXX. lower improvements. $XXX to earnings a approximately and versus $X.XX had quarter of The compensation R&D. profitability differences quarter. Total that operating and the
are us R&D go-to-market business. model year details reinvesting will gives Our and later the for the we opportunity investments my remarks. I in strengthening this share in continue to business more our planning regarding
fourth free the flow $XXX In XXXX $XXX at was our least cash by free million of million. of to capital flow $XX million in strong driven cash Turning quarter we of generation free profitability. flow strong outlook allocation, a above have cash and
increase by decrease the payable by deferred outstanding days outstanding primarily There in growth was primarily in driven timing. days that expected As also was revenue. in a driven sales was
strong buying balance our to stock dilution. We continue of back and to offset take our advantage sheet
the of approximately free For in returning at least of or our total. X.X to flow to consistent million shareholders This shares, a with cash we XXXX return full commitment of repurchased over XX% equates year, XX%. $XXX million
our allocation. with to As September, shareholders. drive to use I shared and this in capital scale to approach Investing Day returning a business capital our innovation Investor we and disciplined at past you
profitability We growing flow. are and able so do are cash we durable more increasing free to because revenue, generating
projections our $XX intend along of have balance already Given shares. enter with of year. our exceed first of capital today plan healthy commitment in $XXX to strong million accelerated return to XXXX. repurchase To-date our in a meaningfully we fiscal roadmap. million to into And demonstration ASR our generation, for cash purchased we to sheet, we and the XXXX, the our enter share is confidence program The that into a in in we strategic plan quarter target
just million. With outlook XXXX flow described based $XXX approximately free our on the current actions I of cash and
targets to our expecting to at be are of We well north annual of returning cash least flows. XX% free
we still make we when back see to levels. attractive have shares to shares retire to like Additionally, buy at some set flexibility the comments I'd to opportunities context for XXXX outlook.
XXXX the received same EPS, than We Regarding upfront we less benefit $X.XX XXXX. as in the anticipate a shape of in net impact in upfront impact quarterly approximate recurring modeling experienced positive revenue we on and its revenue are recurring XXXX.
basis following to business we activities drive margin, XXX the gross points Regarding expect decline approximate year-over-year. an
revenue lower rate in forecast XXXX, to similar margin rate from mix of revenue recurring gross coming XXXX. gross as a cloud a First, higher a margin
of less impact forecast we a addition, recurring revenue. positive In upfront from
activities investing offset that our continue to to providers increased advantage, with including Second, consumption in drive model. enhancements greater we consumption by pricing adoption are cloud and efficiencies service
updated Lastly, double-digit shared are value we our and with low a what Day. we lower achieved to margin XX% compared we revenue mix from work, assumptions businesses focus In consulting maintain higher perpetual strategy, forecast continued and on decline strategic line we Investor through our related at expect XXXX and Aligned decline rates rate to margin with consulting in XXXX. the in our perpetual XXXX. year-over-year revenue anticipate to continues
margin, we we to are Day, innovation. Moving as Investor accelerating investment shared operating on impacting at
XX% We the more R&D versus planned spend cloud year. over R&D last are than of to increasing XX% be total our budget
areas our our as investments scale. most at expect differentiation analytics, platform such We will fabric, in intelligent, in database enterprise multi-cloud the query connected and extend and open
customers. are investments to go-to-market to we Overall, value customer and in XXXX and and per investments approximate success share. with existing teams growth our our cloud on impact $X.XX earnings We lifetime an accelerating be these drive new expect also
our cloud business outlook and this quarterly more how of the enterprise the the manage provided be philosophy, volatility created to purchasing the in lumpiness beginning customers. of is Regarding our creation annually, for avoid outlook only value closely view we decisions better XXXX, the aligns ARR the the long-term due of timing company's by with with will aligned large
outlook continue provide data will goals. on ARR each report commentary our Cloud progress demonstrates quarter clearly to towards We out and annual and that
Our provide outlook With anticipate linearity me practices for you let we and share remains same. the other with metrics that, the the XXXX. we
and We and linearity revenue year historical sequentially throughout to recurring growth follow generally and total expect accelerate cloud revenues total to patterns. ARR the
year-over-year. provided $X.XX. This is approximately flow at is to of from share to Non-GAAP in Now to million. be update growth is flat single annual projected growth year-over-year to and outlook. Total is at year-over-year. ARR million. cash in a to low low digit raise is Total from per a diluted expected Total least of range revenue the $XXX a XXXX. This higher estimate the balance $XXX $X.XX ending range XX% range to grow to day than the is our projected grow Day. be provided XXXX earnings recurring year-over-year, for percentage as the digit be on rate to mid-single of in is in percentage the mid-to-high digit at approximately single but percentage anticipated $X.XX growth grow $X.XX Investor Investor to XXXX range is expected to an revenue free ARR of cloud Public XX% anticipated
be project XX% anticipate be in year. the $X.XX quarter approximately non-GAAP for to between in tax quarter, non-GAAP XX% to rate For diluted share and per the of of first XXXX, range XX% first We earnings the and to $X.XX. full the we the
you. are forecast we outstanding the also take excited the We to at to shares outlined be have XXX great full that we reaffirm in the ready and and conviction weighted in approximately profitable for million value and trajectory conclude operator, about average by shareholder our Thank we achieved achieve creation Investor we to shares long-term growth quarter targets our I'd We what With Day. on like the are XXXX. that we path to questions. year. that, restating are fourth the
