Q2 2021 Teradata Corp Earnings Call
Large enterprise scale customers are accelerating their digital transformation agenda is to address the ongoing challenges of the global macro environment organizations need data and analytics to provide the business insights that will help them manage through these changing environments.
Need access to all relevant data as we address new customer buying behaviors and remote work model stemming from the pandemic as well as ever increasing volumes of data coming from AI machine learning <unk> and Iot.
Karen data has proven that we can help customers get real insights from their data regardless of where it resides whether in a public cloud or an on prem environments, we are competing and winning in our large and growing market. There is not a day that goes by with less data than the previous 1 the technologies we deploy.
Customers get the most value from their data environment at enterprise scale and with outstanding price performance, giving us an advantage in this hyper growth enterprise market.
Our purpose to transform how businesses work and people live through the power of data gateway alignment of our entire team and the team executed quite well in Q2.
Customers increasingly see teradata as being uniquely able to support a multi cloud strategies through our ability to seamlessly support multiple cloud environments on prem or a hybrid combination.
We have a 40 plus year track record, providing unparalleled expertise in helping customers with the largest data environments leverage their volumes of data to get great insights and achieved breakthroughs business results assets.
Certainly a differentiator for us our expertise combined with our powerful vantage connected multi cloud platform is driving cloud growth across our targeted verticals around the globe and with each of the leading cloud service providers.
Our robust growth in the cloud is coming from both new customers and existing accounts since June of 2020, we've experienced more than 50% growth in cloud customers and we are adding new logos in each of our 3 geographic regions.
While starting numbers are small the trend is clear as companies realize they receive tangible business results from vantage in the cloud just has to do with our on Prem environments. They continue to expand the Teradata cloud environment.
Our top 10 customers in terms of quote IRR at the end of June last year grew significantly year on year and these types of ongoing success and ease of scalability are help driving growth.
Further saw broad based subscription AOR growth in every region and across many of our target industries, including financial services healthcare and government as our customers realize the enterprise scale and price performance advantage.
Let's look at a few examples of our wins from the quarter.
1 of the world's largest automakers based in Europe, as a new cloud customer chose teradata to help optimize production as part of its strategic growth plan vantage on AWS will manage significant volumes of Iot data captured from robots on the plant floor to boost quality across its smart.
Manufacturing initiatives.
1 of Europe's top financial services groups and a longstanding teradata customer is migrating to vantage on Google cloud as part of its public cloud transformation strategy. This customer was an early adopter with vantage on AWS and considered adding a big free environment. However, our multi cloud.
Ability demonstrated vantage in the cloud will be the best in helping us institutions comply with governmental regulations to support its operations in the event of a stressed exit Karen.
Teradata and Accenture are collaborating closely to help this customer continued to grow with vantage no in a multi cloud environment. This customer is a great example of companies realizing the value of carrier data advantage at the fastest lowest risk and most cost effective path to a modern cloud deployment where T.
Next financial use case forward to other institutions facing the same compliance mandates.
Kobe steel a major manufacturer in Japan is another 1 of our new cloud accounts at selected vantage on AWS to improve analytics and its research division gaining greater understanding of the properties produced and its manufacturing processes.
Industrial giant proceeds with digital transformation for all aspects of its business plans to add Iot data at the machine and factory level.
Banco <unk>.
Revamp analytical environment to scale and support aggressive agile development and deployment processes. This customer chose vantage on azure as its first step towards implementing a hybrid cloud strategy, leveraging our flexible and transparent consumption pricing model along with the inherent advantages provided by <unk>.
Cloud infrastructure protection.
Our middle Eastern tax authority joined the ranks of Teradata customers in Q2, and the like and vantage on Prem to help it develop analytical use cases, including risk mitigation fraud prevention taxpayer segmentation.
And behavioral analytics working in concert with our local ASI, we replaced Oracle and beat a cadre of legacy vendors.
Turning factors included our deep expertise in helping tax authorities around the world our focus on tangible outcomes for the agency and shown how teradata provides the fastest and most reliable path to the cloud.
Entity is ready to migrate.
This sampling of wins from Q2 are great. Examples of the differentiated position, we hold in our ability to deliver in whatever environment. The customer has connecting our suite of multi cloud ecosystems, while connecting cloud and on Prem as the customer moves through digital transformation. This is where teradata excels.
And as a key reason, we have significant momentum across the market.
We are continually innovating in the quarter, we brought out enhancements to query grid, our patented technology that enables a data fabric across multi cloud ecosystems and multiple data platforms. We regret all those customers to federate queries without requiring unnecessary data movement pumps.
Since for data warehouse platforms Gardner noted that quote data warehouses are central to organizations and compared a number of vendors Teradata schools exceedingly well you Stephen the highest score possible and more attributes and any other vendor we intend to keep earning these types of recognition.
We also remain dedicated to being a socially responsible corporate heads and and just recently issued our annual environmental social and governance report you can find the full report on our website, but I would like to share a couple of highlights a report notes are pledged to the UN global compact principles of ethical.
Behavior and human rights, a careful monitoring and reduction of greenhouse gas emissions and specifically the reduction of total scope, 1 and scope 2 emissions of about 40% since 2018.
Our strength lies in our people and our report knows the various actions we took in support of diversity equity and inclusion to ensure an inclusive workplace.
In force, our commitment to creating a culture of belonging.
2020, the company participated in the corporate equality index of the human Rights campaign Foundation, demonstrating ally ship to our LGBTQ employees accompany scored 90 out of 100, and we are using the emphasis and learning how to better support our LGBTQ.
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Furthermore, recently recognized by Sustainalytics or a conscientious management of ESC issues.
The solid performance in the quarter came up from across the organization, reflecting our focus and operational rigour and it'll go to market organization or transformation is accelerating we've added seasonal sales talent in other regions in further strengthens our customer success and yields organization.
Implementing or go to market efforts and to accelerate our momentum we've added highly experienced quote leadership and talented dedicated to driving growth across the leading quite providers.
Particularly pleased to welcome clear Bramley is our new CFO cleared joined US in mid June from HP and she has already chosen to be a great addition to the management team clears extensive senior leadership experience in corporate finance and accounting as well as a deep knowledge of the technology industry, Okay perfect for us.
Whereas appointment continues our commitment to building the strongest team possible to execute our strategy and accelerate profitable growth and I know she is looking forward to spending time with all of you.
As I turn the call over to clear I want to reiterate that we are committed to capitalizing upon our debt branchy to possession.
<unk> Multicloud data platform for enterprise analytics, we remain relentlessly dedicated to meet and exceed customer's expectations.
Enabling us to generate $219 million in free cash flow vs.
These results demonstrate the teradata combined strong financial fundamentals and operational discipline.
Together with our market leading technology. These qualities differentiate teradata in the market and give us a robust base to continue to grow form.
With regards to IOL as Steve highlighted customers are adding mission critical web page that drive increased adoption on consumption advantage in the cloud on premises.
And hybrid environment.
These digital transformation activities resulted in total.
Growing by 9% year over year as reported on by 7% year over year in constant currency.
Total IRR free.
Grew by $22 million sequentially.
We achieved growth in both public out and subscription IRR across all 3 geographical region year every year.
Sequentially.
Public cloud ally grew by $15 million sequentially of which more than half resulted from customers migrating to vantage in the cloud from on premises perpetual subscription licenses.
We also continue to experience healthy expansion rates in the crowd maintaining the positive trends that we have seen over the last several quarters.
To top things off we added several new named brand customers in the quarter that provide us with future expansion opportunities.
We still strong growth in subscription.
Driving a 20% increase year over year, and approximately a 5% increase sequentially.
We grew in all 3 regions from both existing and new enterprise customers.
These customers are choosing teradata for the combination of best price and performance that scale and hybrid environment.
Now turning to revenue.
Total revenue was $491 million.
7% increase year over year, and 4% in constant currency driven by strength and all 3 revenue component.
We continue to build on a fire base, a recurring revenue growing 16% year over year and 13% in constant currency.
We also benefited in the quarter from the timing of revenue recognition obsession on premises customers expanding all renewing the contract with us.
Similar to last quarter, the economic structure of these arrangements resulted in the upfront recognition of approximately $22 million and recurring revenue in the second quarter.
We expect this to recur annually in the same quarter of the following year during the multiyear term of these contracts.
$22 million was approximately $4 million higher than what we forecast it in our second quarter outlook.
Overcrowding revenue in the next 3 quarters for approximately $7 million per quarter.
Our plan to cover this again when I update you on our outlook.
First perpetual Adams consulting revenue perform slightly better than we expected you to demand.
We continue to passively managed perpetual revenue down given hour shift from a perpetual to a subscription model we.
We also continue to gradually manager decline in consulting revenue given a strategic shift to increase collaboration with partners in order to drive a higher adoption and consumption of Teradata.
Moving to profitability.
Second quarters gross margin expanded to 64, 8%, which was approximately 6 percentage points higher than last year's second quarter, primarily for full reason.
We continue to shift mix to subscription based recurring revenue, which carries a higher margin.
And our continued operational execution very sustainable efficiencies and both subscription and cloud recurring revenue gross margin.
But the margin benefit associated with the upfront recurring revenue recognition.
And force right and makes improvements impacting perpetual and consulting margin second.
Second quarters operating margin expanded to 23.8% significantly ahead of what we anticipated driven by the combination of benefits flow into gross margin and and lower cost structure. As a result of last year's action and continued costs disciplined.
Total operating expenses down 2% year over year on flat sequentially.
Consistent with what we said previously we are re investing savings back into the business and will continue to expand our cloud investments into the second half of the year.
Comment further on this in a few moments.
Second quarter earnings per share of 70 full strength succeeded outlook range of 47 to 49.
By 26 cents at the midpoint.
After 26.80.
18 cents flow through to full year EPS.
The remaining 8 only benefits the second quarter.
The <unk> includes the refunds from additional upfront recurring revenue.
From currency to some cough delays on 1 related to tax rates and weighted average assumptions.
Banning just free cash flow and capital allocation we.
We have already exceeded our annual free cash flow outlook with first half free cash flow of $324 million.
In the second quarter, greater operational efficiency and cash collection resulted in free cash flow of $219 million.
Second quarters, BSA was 55 day, which was 12 day better than last quarter, and 13 days better than last year.
While we look to maintain our collection efficiency, we view 55 day of exceptional and generally not sustainable.
We continue to take advantage of a strong balance sheet.
<unk> backstop to offset vibration in the second quarter, we repurchased approximately 850000 shares while strategy $6 million in total.
For the first half of the fiscal year, we spent $121 million on share repurchases.
Or a return of 37% of the year to date free cash flow to shareholders.
For the full year, we anticipate returning approximately 50% of free cash flow to shareholders prior share repurchases, while continuing to make investments in the company to support our strategy for profitable growth on cloud acceleration.
Looking to the second half of the fiscal year.
We expect total ALLL free to peek in the fourth quarter in line with historical seasonality.
We anticipate tougher public cloud ALLL comparisons and the second half, resulting from time of day is cloud fast focus but accelerated on the speed leadership in July of 2020.
We could see more upfront recurring revenue, although difficult to predict we have included outburst, calling viewers for this activity and a ray fiscal 2021 EPS outlet of.
As noted previously this activity may impact revenue linearity in the second half of fiscal 2021.
In fiscal 2022.
As I mentioned earlier, we are continuing our plans to increase spending in cloud.
R&D on grocery market activities.
The incremental investments are anticipated to have accused the 3 impacts on EPS and each quarter in the second half.
Dollars and 96 cents.
We anticipate the tax rate to be a pulp so many 23% on the weighted average shares outstanding to be between 113 on 114 million.
Free cash flow for the year is now expected to be at least $400 million.
I am very encouraged by the strength of Teradata fundamentals and see real opportunity to build on these in the future.
Our operational execution and disciplined investing enables teradata to deliver innovation to our customers expand adoption arms consumption in the modern market price.
And drive profitable growth.
It truly is an exciting time to be at Teradata today.
I look forward to speaking with you about how we will execute our future strategy and continue to drive increased shareholder value at our Investor day on September 9th.
And with that let's please open the call for questions. Thank you.
At this time I would like to remind everyone in order to ask a question Press Star then the number 1 on your telephone keypad, we would pose for just a moment to compose the Q&A roster.
Our first question comes from Tyler verdict of City. Your line is open. Please go ahead.
Hey, good afternoon, everybody. Thanks for taking my question I wanted to just ask you generally how you feel about second half pipeline I know you mentioned in the script you did have a really nice second half last year, but given some of the.
Looks like kind of a new customer momentum and some of the migrations Ya.
Friends could you just kind of compare and contrast, maybe the cloud pipeline that you see in the second half this year relative to the last year and just how we should be thinking about that.
Hey, Tyler good to talk to you this is Steve.
We're clearly seen really good momentum in the marketplace and even.
Even though the motion as new ICC, new customer logo wins is something that's very <unk>.
Received very positive.
We do see a good pipeline.
We know that.
Seasonally our fourth quarter.
Highest quarter from a sales perspective, and we expect similar from a cloud ER perspective pipeline would support that just now I think the other great thing that we're seeing as expansion of our existing customers in the cloud.
If you think about when we headed towards the cloud focus.
Or in the middle of last year.
We had some really good product announcements help us build a really good Q3 and Q4 so.
157%, so far and Q2.
Spell are very confident on our full year outlook of 100% year on year growth for cloud.
Great and if I could just ask follow up maybe for cleared.
I think the third quarter guidance.
Cloudy, our our growth dipping below.
Hundred which would be a pretty significant deceleration from the second quarter yet. It seems like you would expect that to kind of bounce back higher in queue for and.
I was just wondering if you could talk through that dynamic is it simply related too difficult compare from last year are you expecting the year to be more back end loaded.
Good afternoon, Thailand, and Steve just add the fourth quarter does tend to be our biggest quarter, especially with regards to clay cloud Arab price and that's in line with our historical seasonality. So that is what we've reflected and in a Q3 and 4 year guide.
Thanks Kathy.
The other point Tyler we are a large enterprise focused organization and so.
Deals can be lumpy because their large so but.
But again.
And our Q3 get Q3 gain and also in a full year gave for clothing.
Okay.
Thank you.
Anyway.
Our next question comes from 1 day May have of Bank of America. Your line is open. Please go ahead.
Yes. Thank you.
Claire Congrats on the new role and look forward to working with you.
Can you maybe bridge the <unk> guide quarter on quarter, how do we go from 74 cents to 230 something cents.
Next quarter, and then 20 or so in the fourth quarter. When when typically you have the stronger seasonality. If I quoted right. You you attributed a few pennies of impact from incremental investments.
But X that what what really account for that large differential.
Good afternoon, Ramsey and looking forward to working with you as well at festival I'd just like to say, we're very pleased with the increased fully a guide that we gave on EPS that we've increased our EPS guide by 30 fans of which and 12 cents is in the second half.
At <unk>, we are seeing linearity between H, 1 and H T Festival, we are increasing our investment, particularly in R&D and go to market operations to accelerate price momentum in the cloud, but I would say we are seeing the impact of the upfront revenue that we saw in H, 1 and the pull forward.
That has an impact in H 2 okay.
Okay. So it's really the margin flow through from the pull forward revenue, but you also mentioned that there was some impact some assumption your best guess of how much more there could be in the second half. So there was some consideration of that that's baked into the guidance to clarify.
That's correct as a modest amount that we factored in 2 H 2 at this time.
Okay, Great and Steve if I could just follow up on the public Claudia R. I think the last quarter of you guys to 15 to 20 you came in at the low end of that at 15 in the quarter yoga heading for another $50 million.
At least 15 million sequential inquiries.
But your presence and and sort of across more public clouds is more prevalent now.
You had a little bit longer period to to address more customers and use cases, so why shouldn't this be accelerating at a faster faster pace I understand the growth, where a solid and and well about your fully or target, but conceptually are there anything any anything that you can point to within customer conversations are hesitant to your.
Or anything of that sort.
Explain some of the deceleration thank you.
Yeah, 1 day, I think I pointed to some of it again business can be lumpy due to the large contracts that we execute we.
We certainly we always want to ask that guidance that we we are comfortable with that we know that we don't want to disappoint our investors.
We do expect a very strong force quarter again to the point from earlier as we go through the year, we have more difficult compares.
In terms of the shape of the cloud business, we're pretty much in line with the marketplace in terms of the distribution of our customers.
We started obviously earlier with AWS and.
TCP release was was in the third quarter from last year.
We are seeing really go good growth as well with with the sure. So.
Pretty happy with how we are being represented across each of the csp's.
I think the Csp's are also starting to see the fact that when they've deployed teradata and their ecosystem. There is no corn impact in terms of their sales of force Party services, which because we are well integrated into those environments now it's.
It's Kevin some momentum and focused from the CSP sales folks to teradata into their proposals.
We're also seeing good expansion from our existing customer set from a.
Year on year perspective, and the course of customers from each of our prior years are AG growing nicely. So.
We are still bullish on 100% year on year growth for the full year.
It will be focused in the fourth quarter from an achievement perspective.
But we're really bullish on our clothes business. Thanks for the question Lindsay.
Next day.
Our next question comes from Katie Hibachi of Morgan Stanley. Your line is open. Please go ahead.
Thank you good afternoon Claire welcome looking forward to working with you I want to start by asking Steve a question just looking at the air our metrics year, 2 day relative to where you exited 2020 totally emaar is flat.
Up about 1 million cloud a R is up 33 million so that would imply that there is some churn in your on Prem business can you just talk about what that looks like is that is that maintenance contracts running off is that subscription turn that that is not being.
Being offset just want to understand the dynamics there and also would you expect.
This dynamic to normalize by the end of the year, just given some of the lumpiness that you're talking about.
Yeah Katie Thanks for the question I think there's a number of different dynamics that are happening within the business.
1 and add the conversion as you say between the different lines and say the business.
And.
If we convert climate business too if we conversed subscription business declared IRR. There is clearly dot net neutral. However, we do see expansion and growth when we execute that conversion.
Which is positive for us.
Every every corner, we experienced in anticipating some amount of churn.
And the activity this past, Florida was new not really different from prior quarter's nor are we forecasting and it's insignificantly that from from a churn perspective on a year on year basis.
Okay, Thank you and and Claire I imagine, we'll hear more about this at the analyst day, but if we look at past subscription transitions typically.
Company exits with free cash flow, that's 1.1 and a half to 2 times, what the free cash flow of the business was before that transition so for it.
Teradata that would mean you started at $300 million you could end up in the $450 million to $600 million range is normalized free cash flow.
Is that fair for your business is there or is there something different given the the hardware components.
Good afternoon, and thank you for the warm welcome and you're absolutely right. We will be sharing more information with you on a long term plan and free cash flow generation and at capital allocation strategy at our Investor Day in September 1 thing I would say is we are pleased with the cash my generation that we saw in queue too but.
The fact that we were able to increase our fully a guide to at least $400 million.
And Katie I think you're absolutely right you've seen the decline in terms of our perpetual business.
Do you use the town, where famous swallowed the fish now from.
At that convention and we think the fundamentals of the company are well possession to propel us forward.
Great. Thank you.
Our next question comes from Derrick Ward of Colin Quinn is 8 and please go ahead.
Great. Thanks, This is actually Nicole but on predict thanks for taking our questions.
Maybe to start there was a report that you guys were working with IBM and.
Outsourcing some of your on premise support.
So maybe you can you just confirm whether or not that's true and maybe just touch on what drove me to make that change and what kind of savings you guys expect there.
Hey, there get to talk with you.
We are as we look at our business operations, we always put the customer at the center of the decisions that we make and we are always looking to provide the best experience for teradata customers around things like on premise support and execution of that capability for many.
Years source elements of our hardware support business too reliable third party companies.
Can't really get into the details of the names or the details of those agreements.
But they're just a normal part of how we ensure that we deliver the best possible service to Teradata customers, whilst also enabling us to strategically focused on and and invest and.
And our business as we move forward. So clearly we do expect that too.
B a.
Win win for both our customers and Terra data in terms of in terms of execution.
And.
It will have a positive impact too.
Gross margin.
Got it got it that's that's helpful. And then you guys launch consumption based pricing last year I guess, what are you guys see you installed base. There just in terms of the initial commitment vs. The actual usage relative to your expectations.
It's early days still.
Our consumption based pricing clearly has been met with free and transparent say the market.
A good percentage of our sales engagement opportunities have included with a request for consumption based pricing.
And is it really interesting thing because our customers our customers nor was our environment.
It's a very stable business that they tend to execute on top of Teradata the.
C a real value in terms of our blended pricing program, where they came at a fixed amount twos with bursts of consumption on top and many are choosing that option that reduces are full of Kennedy from consumption perspective.
But we're just really happy to be able to give customers choice in terms of how the.
And to ride can engage engaged with teradata, but it's been pretty successful.
We will continue to refine and improve our price and models as we move forward again I would just point you to the general growth that we're seeing an acquired Arif and as I mentioned, a low bay area to 1 of the other questions the cohort growth over existing customers from their operating the pirates.
A lot of best consumption based pricing is as active has been very strong.
Got it okay.
Thank you.
Our next question comes from Matt Ted Bag of RBC capital markets. Your line is 8 and please go ahead.
For my congrats as well.
On your new role.
Going forward to working with you.
Steve.
I think what stood out to me.
The success is not just in the base.
Net new customers new to franchise.
That's what I'm wondering could you talk and obviously you've had a lot of success in the cloud side could could you talk a little about just how you think about operating hybrid environment.
Because clearly.
We sort of 1.4 on both sides at this point, but bigger success of the cloud is interesting and obviously I think.
It's getting all the attention, but the hybrid hybrid approach just talk about how well positioned you're there you're speaking their relative to competition.
Yeah, clearly we see.
The ability that we have from a hybrid perspective has real differentiation when we compared to.
Native are born in the cloud solutions and indeed, what we see in our customer base as they are being very judicious about how they utilize in place the data from both the performance and cost perspective, so they really customers really want not optionality between cloud and on premise.
They also wanted to try and avoid that Hyperscaler closed Fender low can a lot of the enterprises. We work with are seeing that for many of their use cases. They have the kind of economies of scale would make an on premise solution very attractive. So it was great in the prepared remarks, when I referred to taxes.
Alrighty and the middle East selecting is over more traditional competition.
Really demonstrates the fact that we can win on prim, we can give a vision of hybrid close to move forward and the customers can really realize volume quickly whilst optimizing their existing environments and I think as a core strength for teradata as we move forward, especially as.
Financial operations of data management and data in the cloud becomes more important for our customers.
That makes it kind of sounds and then I guess.
Obviously, you are investing a bit more now in front of the opportunity to given the success on the cloud side.
How do you think about.
The go to market focus are you, bringing in a new set of reps with a little bit more or different skillset. Maybe previously just how do you sort of continue to leverage the products that are obviously a lot of investments with continuing to kind of think about the go to market effort.
Yeah, I think just a couple of things.
We announced that we were.
Brought on and you'd go to market.
Leader towards the 1 at the start of this year, we brought in a new.
Leader of our American.
In March.
Of this year.
And they are ramping up really well there they've got a lot of experiencing cloud based failing and they are bringing in up labeling.
Lot of talent throat or organization.
The other thing is we're making sure that we have the right incentive plans in place for our sailors to make sure that they're motivated towards.
Sailing our capabilities in the cloud.
And I think that.
1 of the investments that we're making in the second half of the year that we will ramp up of that I can use the term hunter capability to go after new logos again that is.
A different teradata strategies in order has been in place previously and it was really great to see the end of the quarter new logo wins in each of the 3 regions.
Even though that muscle is fairly.
Small and say that accompanies them.
Okay.
The results base.
Thank you.
Oh sure.
Again, if you would like to ask a question. Please press Star then the number 1 on your telephone keypad.
Our next question comes from pot, well raisins of J P. M. Your line is open. Please go ahead.
Oh, great. Thank you, but my head again.
Add my congratulations so.
It seems like a lot of things are going right.
You built help the team nicely what are your top 2 or 3 sort of strategic imperatives for the next 12 months.
Yeah I think.
Great question, Pat and thanks for asking it I think where you're going to see in terms of our execution.
Perspective is.
A number of investments related to our go to market organization in the belt, continuing build that I'll go to market organization.
The focus on new and additional head Karen from.
New logo hunting.
Incremental advancements in terms of our client focused head count from a go to market perspective.
We're making a lot of investments in terms of enablement.
To really help the transition of the sales force to sell.
Are complete portfolio of more modern client base solutions, because with that comes the ability to execute on expansion also <unk> go to market motion in terms of investment we are really doubling down on our customer success investment leveraging.
Our heritage from an industry data model perspective to really take new use cases through our customer success motion too.
Our customer base from an R&D perspective, really excited about the investments that will make them from an R&D perspective in terms of development of the product will continue to improve the K integration with the first party services of the client service providers were also focused on improving our.
Day of management capabilities and data governance capabilities and finally I gave a highlight in a 0.2 from our technology around free regret we believe the desk possessions teradata uniquely.
We can have a teradata instance, in AWS querying native objects store data and AWS with those that data, beating teradata and combine it with preview yourselves from teradata and assure or on Prem again, either or neither environment, creating native objects store data campaign.
Ending the results of those previous together to provide business and say.
Nobody else can provide in the industry and so our entire focus from Ah clearly fabric data fabric perspective gives us a unique ability to work with our customers and it's great to see our customers getting as excited a bit like keep a belly as we are.
That's great. Thank you very much.
Okay.
There are no further questions at this time, Steve Mcmillan I turn the call back <unk>.
Thank you very much Charlie and thanks to everyone for joining us today.
Really price of the progress that we've made our execution and a differentiate it bumpy quite a data platform is making a difference for customers right now.
Going to continue to drive clear and compelling value for our customers and lasting value for our shareholders. We hope that you all join US on September 9th for Investor Day, We're really looking forward to sharing more information on a strategy or directions, and our long term growth plans with the pandemic ongoing meetings.
Going to be conducted virtually I hope your all keeping safe.
We're going to make sure that we have the opportunity to have lied Q&A with.
A selection of our leadership team in our new leadership team here in Teradata have a great day. Thank you.
This concludes today's conference call you may now disconnect.
Uh-huh.
[music].