Dayton, Ohio-based data analytics business Teradata Corp., which has a key campus in Rancho Bernardo with about 1,000 employees, reported a $7 million net loss on revenue in the first quarter of 2018, compared to a net loss of $2 million in the same quarter a year ago.
Revenue rose 3 percent over the year to $506 million.
“We exceeded our plan for revenue and earnings per share, and importantly, we attained these results while achieving a better rate of adoption of subscription licenses," said Vic Lund, president and CEO. "Our increasing sales funnel and the accelerating shift to subscription are clear demonstrations of the value of Teradata to our customers."
The company said the shift of its bookings mix to subscription licenses from perpetual licenses is moving faster than expected. Subscription made up 62 percent of revenue during the first quarter, compared to the company's estimate of 40 percent to 50 percent, Teradata said.
Recurring revenue rose 11 percent year-over-year to $302 million and revenue from consulting services rose 5 percent to $135 million. Revenue from perpetual software licenses and hardware fell 23 percent to $69 million compared to the same quarter the year prior.
The company recorded an 8 percent increase in revenue from its international business, to $242 million, and a 1 percent increase in its Americas revenue, to $264 million.
The company adjusted its guidance for 2018 revenue to $2.15 billion to $2.18 billion from $2.15 billion to $2.2 billion, citing the continued shift in its bookings mix to subscription licenses, for which revenue is recognized over time rather than up front.
Teradata, which trades on the New York Stock Exchange as TDC, has a market cap of about $5 billion.
During the quarter, the company bought back about 2.1 million, or $76 million-worth, of its shares.
Reach reporter Sarah de Crescenzo at email@example.com.