Q3'21 Earnings Results

Teradata Investor Relations

November 2021

The Connected Multi-Cloud Data Platform for Enterprise Analytics

Forward-Looking Statements

This presentation and the accompanying discussion contain forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934. Forward- looking statements generally relate to opinions, beliefs, and projections of expected future financial and operating performance, business trends, and market conditions, among other things. These forward-looking statements are based upon current expectations and assumptions and involve risks and uncertainties that could cause actual results to differ materially, including the factors discussed in this presentation and those relating to: the global economic environment and business conditions in general or on the ability of our suppliers to meet their commitments to us, or the timing of purchases by our current and potential customers; the rapidly changing and intensely competitive nature of the information technology industry and the data analytics business; fluctuations in our operating results; our ability to realize the anticipated benefits of our business transformation program or other restructuring and cost saving initiatives; risks inherent in operating in foreign countries, including

foreign currency fluctuations; risks associated with the ongoing and uncertain impact of the COVID- 19 pandemic on our business, financial condition and operating results, including the impact of the COVID-19 pandemic on our customers and suppliers; risks associated with data privacy, cyberattacks and maintaining secure and effective internal information technology and control systems; the timely and successful development, production or acquisition, availability and/or market acceptance of new and existing products, product features and services; tax rates; turnover of workforce and the ability to attract and retain skilled employees; protecting our intellectual property; the availability and successful exploitation of new alliance and acquisition opportunities; subscription arrangements may be cancelled or fail to be renewed; the impact on our business and financial reporting from changes in accounting rules; and other factors described from time to time in Teradata's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2020 and subsequent quarterly reports on Forms 10-Q, as well as the Company's annual report to stockholders. The forward-looking statements included in this presentation and the

accompanying discussion are made as of November 4, 2021, and Teradata does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Non-GAAP Financial Measures

This presentation and the accompanying discussion include certain non-GAAP financial measures, which exclude such items as stock- based compensation expense and other special items, as well as other non-GAAP financial measures, such as free cash flow and constant currency revenue comparisons. Please refer to the Appendix for a reconciliation of non-GAAP to GAAP measures as well as additional useful information regarding Teradata's use of non- GAAP financial measures.

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At a Glance

Corporate Purpose

We transform how businesses work and people live through the power of data

We are

The connected multi-cloud data platform for enterprise analytics

1

The leading multi-cloud data

2

The most effective platform for

platform from start to scale

driving business outcomes

  • The modern approach to open partnering for data and analytics

Customer and Analyst Recognition

Financial and ESG Highlights

Cloud Leader

Cloud Leader

100+

S&P 400

Financially strong

ESG Leader: Dow

in 2020 Gartner

in 2021

Magic Quadrant(1)*

The Forrester

technology

constituent

and profitable with

Jones Sustainability

Wave™(2)*

partners

~$2.0 billion revenue

Index for 11 years

  1. Gartner Magic Quadrant for Cloud Database Management Systems
  2. The Forrester Wave™: Cloud Data Warehouse, Q1 2021
  • ©2021 Teradata

Q3'21 - By the Numbers

$1.437 billion

7% year-over-year

$0.15 in Q3'21 from ($0.01) in Q3'20

Total Annual Recurring Revenue (ARR)

GAAP diluted earnings per share

$148 million

83% year-over-year

$0.43 in Q3'21 from $0.43 in Q3'20

Public cloud ARR

Non-GAAP diluted earnings per share(1)

$352 million

7% year-over-year

$33 million in Q3'21 from $71 million in Q3'20

Recurring revenue

Cash flow from operations

$460 million

1% year-over-year

$23 million in Q3'21 from $58 million in Q3'20

Total revenue

Free cash flow(1)

NOTES:

Annual recurring revenue (ARR) is defined as the annual value at a point in time of all recurring contracts, including subscription, cloud, software upgrade rights, and maintenance. ARR does not include managed services and third-party software. Public cloud ARR is defined as the annual value at a point in time of all contracts related to public cloud implementations of Teradata Vantage and does not include ARR related to private or managed cloud implementations.

  1. Non-GAAPdiluted earnings per share and free cash flow are non-GAAP financial measures. Please refer to the Appendix for additional information on these non-GAAP financial measures, including reconciliations to the nearest GAAP measures.
  • ©2021 Teradata

ARR by Product

1,254

$1.437B

1,304

1,425

1,404

1,426

1,437

1,348

1,319

1,280

1,287

1,289

1,267

+7% YoY Growth

1,209

1,250

+6% YoY CC Growth

4554

Q1'19Q2'19

NOTES:

81

106

124

139

148

Q3'19

Q4'19

Q1'20

Q2'20

Q3'20

Cloud

Subscription + Maint & SW Upgrade Rights

Amounts in U.S. Dollars in Millions. Annual recurring revenue (ARR) is defined as the annual value at a point in time of all recurring contracts, including subscription, cloud, software upgrade rights, and maintenance. ARR does not include managed services and third-

party software. 2020 ARR components have been reclassified to conform to 2021 presentation. Public cloud ARR (included within total ARR) is defined as the annual value at a point in time of all contracts related to public cloud implementations of Teradata Vantage and does not include ARR related to private or managed cloud implementations. Subscription ARR (included within total ARR) - annual contract value for all active and contractually binding term-based contracts at the end of a period. Subscription ARR includes on-premisessubscription-based transactions and private cloud. Maintenance and Software Upgrade Rights ARR (included within total ARR) - annual contract value for all active and contractually binding term-based contracts at the end of a period. Maintenance and Software Upgrade Rights ARR includes maintenance and software upgrade rights on perpetual products. The impact of currency is determined by calculating the prior-period results using the current-year monthly average currency rates. See the foreign currency fluctuation schedule, which is used to determine revenue on a constant currency ("CC") basis, on the Investor Relations page of the Company's website at investor.teradata.com.

  • ©2021 Teradata

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Teradata Corporation published this content on 04 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 November 2021 22:01:06 UTC.