Teradata 2018 Analyst Day - December 12, 2018
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Teradata 2018 Analyst Day
December 12, 2018
1
Safe-Harbor Statement Non-GAAP Financial Disclosures
Statements in this presentation and remarks and responses made Certain non-GAAP financial information regarding operating results is
in connection with this presentation include forward-looking included with this presentation and may be discussed during the
statements that are based on current expectations and remarks and responses made in connection with this presentation to
assumptions. These forward-looking statements include statements supplement Teradata’s consolidated financial statements presented on
with respect to Teradata’s future plans, expectations, beliefs, a GAAP basis. Reconciliations of the differences between GAAP and
prospects and intentions and are subject to a number of risks and non-GAAP financial measures are available on our investor page at
uncertainties that could affect our future results and could cause http://investor.teradata.com/financial-performance/historical-non-gaap-
actual results to differ materially from those expressed in such measures.
statements.
We believe that certain non-GAAP financial information (such as
A detailed discussion of these risks and uncertainties is contained in Teradata’s results excluding, among other things, stock compensation
Teradata’s U.S. Securities and Exchange Commission (SEC) filings, expense and other special items, revenue on a constant currency
including the company’s most recent reports on Form 10-K and basis, and free cash flow) is helpful in understanding our past financial
Form 10-Q, particularly under the heading “Risk Factors.” Copies of performance and future results. We believe that providing these non-
these filings are available online from the SEC or the company’s GAAP measures in addition to the related GAAP measures provides
investor page at: http://investor.teradata.com/financial- investors with greater transparency to the information used by
performance/sec-filings. management in its financial and operational decision-making and
allows investors to see our results as management does.
All information set forth in this presentation and related commentary
is current as of December 12, 2018. Teradata undertakes no duty This non-GAAP financial information is not meant to be considered in
to update any statement in light of new information or future events. isolation or as a substitute for comparable GAAP measures, and should
be read only in conjunction with Teradata’s consolidated financial
statements prepared in accordance with GAAP.
2
Agenda
• CEO Overview Vic Lund, President & CEO
• Strategy Update Oliver Ratzesberger, COO
• Teradata Vantage Reema Poddar, EVP, Product & Technology
• Customers’ Experience Stephen Brobst, CTO
- Break -
• Financial Roadmap Mark Culhane, EVP & CFO
• Recap & Summary Vic Lund, President &CEO
• Q&A
3CEO Overview
Vic Lund
President & Chief Executive Officer
4Strategy Update
Oliver Ratzesberger
Chief Operating Officer
5RECENT CONVERSATION
Large US Healthcare company
5000 data silos
1000 headcount
Billions in annual spend
6THE CURRENT LANDSCAPE
The reality is our customers are
spending Billions in technology,
people and infrastructure.
of enterprise decision-makers say
74% analytics technology is too complex
Say employees don’t have
79% access to the data they need to
be efficient at their job.
7THE SOLUTION
Leverage 100% of the data to uncover real-time intelligence, at scale.
We enable companies to rise above the complexity, cost and inadequacy of
today’s analytics landscape, finding answers to the toughest challenges.
We call this
Pervasive Data Intelligence.
And it’s the new standard for our industry.
8OUR STRATEGIC FOCUS:
Rise above the complexity, cost and
inadequacy of today’s analytics
landscape to deliver Pervasive Data
Intelligence to our top opportunities.
9WHERE WE PLAY: THE TARGET
Our top opportunities are
megadata companies.
The world’s most They demand tightly And deployed across
demanding large-scale integrated solutions secure, hybrid-cloud
users of data, leveraging that can accommodate architectures
data as a secret weapon massive scale and
for their business speed
10WHERE WE PLAY: THE TARGET Our top opportunities are megadata companies. This represents a 10X opportunity, $20B TAM for Teradata within our customer base. 11 ©2018 Teradata
Which is why our growth
will come from aggressively
growing wallet share and
market share with
megadata companies
12
TERADATA CONFIDENTIALShift to more as-a-service offering
Business Leaders & Analysts IT Leaders and Developers
Business Outcomes (e.g. Customer Analytics) Seamless Connections to Internal
Ecosystem
Winning User Experience (UX)
Network of Experts for All Service Needs
Easy-to-Use Platform that “Just Works”
Robust Enterprise Security
Frequent Updates with New Analytic
Functionality QA & Sandbox tools to Accelerate Modeling
Wide Ecosystem of ‘Best-in-Breed’ Apps Automated Data Ingestion & Integration
13Megadata companies face unique challenges of cost and complexity. 14 ©2018 Teradata
Megadata companies face unique
challenges of cost and complexity.
Siloed, Considerable Lack of The need to Intensifying
conflicting expense to operational deploy across pressure for
and maintain and analytic focus heterogeneous results
duplicative manage the environments
solutions complexity
15Teradata Vantage not only solves these problems, it resets the bar for the entire industry. Connective tissue for ecosystem simplification Takes risk out of decisions Delivers massive scale and integration 16
INTEGRATED DATASETS
TERADATA FUNCTIONS & ENGINES
VANTAGE
TOOLS & LANGUAGES
THE PLATFORM FOR
PERVASIVE DATA INTELLIGENCE
17Teradata
reduces risk and increases choice
Teradata
Vantage
Teradata
Everywhere
CUSTOMER CHOICE SIMPLICITY CONSUMPTION
NEEDS
18Teradata strategy
HOW WE WIN: STRATEGIC IMPERATIVES
Relentlessly Radically Pivot Transform our Deliver
focus on simplify towards go-to-market operational
consumption as-a-service & brand excellence
Focus entire Focus on Shift from Reposition Improve
company on customer consulting first Teradata in efficiency and
ARR growth user to as-a-service our customers execution
experience, first across the
easy to organization
consume
19OUR MISSION:
We transform how businesses work and
people live through the power of data.
We dig deep We raise up We rise as one.
and aim high. our customers
and our world.
20Teradata Vantage
Reema Poddar
EVP, Product & Technology
21Teradata is the hybrid cloud analytics
software provider that leverages 100%
of the data to uncover real-time
intelligence at scale
We enable companies to rise above the
complexity, cost and inadequacy of
today’s analytics landscape…powering
pervasive data intelligence
22Key Takeaways
NEW DIFFERENTIATING POWERFUL
Vantage is the Consumption of Vantage Vantage is built on a
single platform is driven through new scalable software
for pervasive analytic use cases that core with decades of
data intelligence the competition cannot innovation
support
23Teradata Vantage
INTEGRATED FUNCTIONS & TOOLS &
DATASETS ENGINES LANGUAGES
THE PLATFORM FOR PERVASIVE DATA INTELLIGENCE
24Vantage is built on a high performance, scalable software core with decades of innovation 25
Teradata Everywhere
Teradata AWS & Teradata Commodity
Cloud Azure Infrastructure Infrastructure
26Teradata Vantage
Sentient
Analytic
Prescriptive
Languages
Predictive Analytic
Data Types
Advanced Adaptive
Descriptive
Indexing Optimizer
Linear Mission Critical Query
Reporting
Scalability Availability Performance
27Teradata Vantage End-To-End Analytic Process Discover Access Prepare Create Socialize Deploy Monitor Analytics data data data models results models models workflow 28
Teradata Vantage Simplifies the Ecosystem
VANTAGE
29Cloud-Only Competitors
Limited Can’t handle Introduce new
number of query silos into the
users complexity enterprise
“Good Enough” Is Not Good Enough
30Teradata Vantage
Scales to Proven to handle
thousands of the most Access data
users complex queries anywhere
31Industry Feedback Teradata has not only Teradata Vantage The grand plan calls for made itself relevant again; represents a forward- placing Teradata Vantage it has reinvented itself and looking approach for at the center of is helping companies reducing complexities of customers’ analytics push the boundaries of analytics. strategies… innovation. – Merv Adrian, Gartner – John O’Brien, Radiant Advisors – Alex Woodie, Datanami 32
Summary
NEW DIFFERENTIATING POWERFUL
Vantage is the Consumption of Vantage Vantage is built on a
single platform is driven through new scalable software
for pervasive analytic use cases that core with decades of
data intelligence the competition cannot innovation
support
33Customer Experiences
With Teradata Vantage
Stephen Brobst
Chief Technology Officer
34Three Phases of Analytics
Descriptive Analytics
Insight into the past
Predictive Analytics
Understanding the future
Prescriptive Analytics
Advise on possible
outcomes
35Teradata Vantage Platform
Analytic Tools AppCenter
Analytic
SQL
Languages
Cross-Engine Analytic Orchestration
(Engine Access)
NewSQL Machine Graph Spark TensorFlow Custom
QueryGrid
Analytic Engine Learning Engine Engine* Engine* Engine*
Engines Engine
High Speed Fabric
Teradata S3 Data
Data Sources Data Store Storage
QueryGrid
(Data Store Access)
36Advanced Technology without the Risk
Customers love the Teradata Everywhere strategy:
.
100% portability of 100% portability of Most customers are
software functionality. software licenses. deploying a hybrid of
cloud and on-premises.
Customers love the Teradata Vantage platform strategy:
Embracing the best of Extensible to not-yet-
More than just
commercial and invented engines using
a SQL database.
open source technologies. service-based architecture.
Minimize duplication and movement of data. Effective bridge between IT & Data Scientists.
37Teradata Vantage First Release: Use Cases
Prediction Segmentation Understanding Causality
$
Context Networking Hypothesis testing
38IoT Analytics: Major Manufacturer
Detect parts failure. Multi- Log Parsers Isolated key Sensor data
equipment indicators of continuously
Need to understand Generalized
sensor and performance ingested and
equipment usage and Linear Model
performance bottlenecks analyzed for
behavior to prevent
data. Weibull that helped remove pattern
down time or
analysis soon changes and
unplanned outages
to be defective performance
across many support Naive Bayes equipment triggers.
groups.
from circulation for
proactive
maintenance.
CHALLENGE SOLUTION ANALYTICS ANSWER
39Multi-Channel Account Closure Detection: Global Bank
Reduce account Multi-Channel Sessionize Developed a New closure
closure incidence data constantly event patterns
nPath
consolidation evolving toolkit to detected the
Customer account
of events of Dynamic Time detect following day.
closure and its
interest. Warping new closure patterns.
impact on
Analysis
satisfaction requires
constant model
tweaking.
Highly manual.
CHALLENGE SOLUTION ANALYTICS ANSWER
40Multi-National Leader in the Digital Economy
Use cases that are driving their double-digit growth rate:
Increase adoption of shipping and fulfillment services.
Teradata Vantage with
Focus on user experience (UX) to drive engagement and
loyalty. IntelliCloud and Hadoop
on top of Amazon S3
Focus on net promoter score (NPS) for continuous leveraging Teradata’s
improvement. Unified Data Architecture
(UDA) framework using
Grow new categories still under-indexed in the marketplace. hybrid cloud and driving
30% YOY growth in
Grow percent sales volume coming from large merchants, TCore.
brands, and branded retailers.
41Lots of Other Examples…
24x 180x 45x
Speed up when using Speed up when using Speed up when using
Teradata Vantage Teradata Vantage Teradata Vantage
capability for in-database capability for in-database capability for in-
propensity to buy scoring churn prediction scoring database demand
on behalf of North on behalf of prediction on behalf of
American on-line retailer. multi-national North American
logistics company. multi-channel retailer.
These kinds of performance speed-ups allow customers to engage in advanced analytics
in a way that they could not have done without Teradata–driving value
to their bottom line and driving Tcore growth for Teradata.
42Key Takeaways Teradata delivers a choice We enhance the data Teradata has evolved of the best commercial scientist user from a Database to an and open source experience with a Analytics Platform analytics tools integrated choice of industry provider. with the Teradata Vantage favorite analytic tools. Platform. 43
Financial Roadmap
Mark Culhane
EVP & Chief Financial Officer
44Teradata Strategy
HOW WE WIN: STRATEGIC IMPERATIVES
Relentlessly Radically Pivot Transform our Deliver
focus on simplify towards go-to-market operational
consumption as-a-service & brand excellence
Focus entire Focus on Shift from Reposition Improve
company on customer user consulting Teradata in our efficiency and
ARR growth experience, easy first to as-a- customers execution
to consume service first across the
organization
45Teradata Strategy
HOW WE WIN: STRATEGIC IMPERATIVES
Relentlessly Radically Pivot Transform our Deliver
focus on simplify towards go-to-market operational
consumption as-a-service & brand excellence
Focus entire Focus on Shift from Reposition Improve efficiency
company on ARR customer user consulting first to Teradata in our and execution
growth experience, easy as-a-service first customers across the
to consume organization
ARR
Increase
&
Recurring
Revenue
46Drivers of ARR & Recurring Revenue Growth • Continued shift to subscription-based transactions with goal of no perpetual deals • Vantage expands our market opportunity, enabling increased wallet share • Vantage only available via subscription • Vantage is much more than a data warehouse, will price for increased value • Sales compensation change to incentivize ARR growth beginning 1/1/2019 47
ARR Growth Rate Acceleration
~15% cc
~11% cc “Go-to-Market”
incentivized to
9% cc increase ARR
(Jan 1, 2019)
2017 2018 (E) 2021 TARGET
4849
Teradata Strategy
HOW WE WIN: STRATEGIC IMPERATIVES
Relentlessly Radically Pivot Transform our Deliver
focus on simplify towards go-to-market operational
consumption. as-a-service & brand excellence
Focus entire Focus on Shift from Reposition Improve efficiency
company on ARR customer user consulting first to Teradata in our and execution
growth experience, easy as-a-service first customers across the
to consume organization
Increase
ARR
&
Gross
Margin
50Drivers to Simplify the Business • Vantage simplifies customers’ ecosystems and increases wallet share • Radically simplified product offering designed to drive increased consumption • Subscription makes it easier to buy and increase consumption • Reduced number of platforms drives lower supply chain and support costs • Simplified pricing will drive higher gross margins 51
Simplification Drives a Healthier Business
RECURRING GROSS MARGIN* TOTAL GROSS MARGIN*
~65%
~75%
Low 70’s% ~50%
2018 (E) 2021 TARGET 2018 (E) 2021 TARGET
* Non-GAAP
52Teradata Strategy
HOW WE WIN: STRATEGIC IMPERATIVES
Relentlessly Radically Pivot Transform our Deliver
focus on simplify towards go-to-market operational
consumption. as-a-service & brand excellence
Focus entire Focus on Shift from Reposition Improve efficiency
company on ARR customer user consulting first to Teradata in our and execution
growth experience, easy as-a-service first customers across the
to consume organization
Increase Gross
Margin
53Drivers of Improved Gross Margins • Autonomous platform, increased automation and less human labor improves margins • Focus on megadata customers reduces costs / resources outside of target market • Focus on higher value / margin service offerings…de-emphasize lower value / margin services • In the future, key focus will be to provide service offerings related to Vantage • Leverage consulting partner ecosystem 54
As-A-Service Drives a Healthier Business
CONSULTING GROSS MARGIN* TOTAL GROSS MARGIN*
~65%
~20%
~50%
~10%
2018 (E)
* Non-GAAP
2021 TARGET 2018 (E) 2021 TARGET
55Teradata Strategy
HOW WE WIN: STRATEGIC IMPERATIVES
Relentlessly Radically Pivot Transform our Deliver
focus on simplify towards go-to-market operational
consumption. as-a-service & brand excellence
Focus entire Focus on Shift from Reposition Improve efficiency
company on ARR customer user consulting first to Teradata in our and execution
growth experience, easy as-a-service first customers across the
to consume organization
Revenue
Increase
&
Operating
Margin
56Transform our Go-To-Market Strategy • Aligning “Go-to-Market” to focus on megadata companies • Utilize “inside sales” for accounts outside target market to lower sales costs • Rationalizing geographic footprint • Simplification and standardization designed to reduce sales support needs / costs • New brand positioning for pervasive data intelligence broadens market opportunity 57
Teradata Strategy
HOW WE WIN: STRATEGIC IMPERATIVES
Relentlessly Radically Pivot Transform our Deliver
focus on simplify towards go-to-market operational
consumption. as-a-service & brand excellence
Focus entire Focus on Shift from Reposition Improve efficiency
company on ARR customer user consulting first to Teradata in our and execution
growth experience, easy as-a-service first customers across the
to consume organization
Margins,
Increase
EPS &
FCF
58Drivers of Operating Efficiencies • Investments to modernize and automate processes with best-in-breed technologies • Simplify and standardize our pricing strategy and execution • Company-wide simplification / process improvements • Outsourced back office functions • Consulting and recurring revenue gross margin improvement 59
Operating Margin* Improvement
20%-25%
12%
~10%
2017 2018 (E)* 2021 TARGET
* Non-GAAP
60EPS* expected to More than Double By 2021
RECURRING OPERATING EPS*
REVENUE ($B) MARGIN*
$1.1
12% $1.35
2017 2021 TARGET 2017 2021 TARGET 2017 2021 TARGET
* Non-GAAP
61Free Cash Flow Margin* Improvement
20%-25%
11% 8%-9%
2017 2018 (E)* 2021 TARGET
* Non-GAAP
Free cash flow = net cash provided by operating activities less capital expenditures for property and
62 equipment, and additions to capitalized software. Free cash flow margin = Free cash flow / RevenueDrivers of Our Success • Vantage enables increased wallet share of megadata customers, a significant growth opportunity • Subscription makes it easier to buy and increase consumption • Realigning consulting business to focus on Vantage and megadata customers drives increased consumption, as well as higher consulting gross margin dollars • Transforming our “Go-to-Market” team streamlines how we penetrate our market opportunity • We don’t believe we have significant renewal risk • Long runway of increasing ARR growth 63
Targeted Key Metrics
1. 100% Subscription Bookings Mix
2. ~15% ARR Growth
3. ~14% Recurring Revenue Growth
4. ~75% Recurring Revenue Gross Margin*
2021 FINANCIAL TARGETS
5. ~20% Consulting Gross Margin*
6. ~65% Gross Margin*
7. Operating Margin* 20% - 25%
8. EPS* expected to more than double from 2017
* Non-GAAP
9. Free Cash Flow* equals 20% - 25% of Revenue
64Thank
Thank you.
you.
©2018 Teradata
65You can also read
