Core Insights - Teradata faced significant stock price declines following revelations of delayed large deals and missed annual recurring revenue (ARR) guidance, with a drop of 6% on December 7, 2023, and 22% on February 13, 2024 [1] Group 1: Stock Performance - On December 7, 2023, Teradata's stock price fell by $2.89, or 6%, closing at $43.40 per share after the announcement of potential delays in large deals [1] - Following the announcement of "deal timing issues" on February 12, 2024, Teradata's stock price dropped by $10.57, or 22%, closing at $38.22 per share on February 13, 2024 [1] Group 2: Legal Issues - Teradata was sued on June 16, 2024, for violations of federal securities laws, with allegations of materially false and misleading statements made by the company and its executives regarding the success of its business model and revenue growth prospects [8] - The lawsuit claims that Teradata's expanded business model led to significant delays in closing large customer transactions, resulting in an overstatement of the health of its pipeline and revenue growth [8]

Financial Performance - Teradata reported its fourth quarter and full year 2022 financial results on February 13, 2023, projecting a public cloud Annual Recurring Revenue (ARR) increase of 53% to 57% year-over-year and total ARR growth of 6% to 8% year-over-year for 2023 [2] - On February 12, 2024, Teradata announced that public cloud ARR increased by only 48% for the full year 2023, which was below the company's guidance, while total ARR increased by only 6%, at the low end of its expectations [3] - The disappointing results were attributed to "deal timing issues," which the company was aware of when issuing its guidance in February 2023 [3] Stock Market Reaction - Following the announcement of the fourth quarter and full year 2023 results, Teradata's stock price fell by $10.57 per share, or 21.66%, from $48.79 to $38.22 on February 13, 2024 [3] - On December 7, 2023, a revelation regarding a potential delay of an eight-figure deal led to a stock price drop of $2.89 per share, or 6.24%, from $46.29 to $43.40 [10] Legal Actions - A securities class action lawsuit has been filed against Teradata in the United States District Court for the Southern District of California, alleging violations of federal securities laws due to misleading statements and omissions [8] - Investors have until August 13, 2024, to seek appointment as lead plaintiff in the class action [4][8]

Core Viewpoint - Teradata Corp. is facing a securities class action lawsuit due to allegations of making materially false and misleading statements regarding its business model, pipeline robustness, and revenue growth prospects between February 13, 2023, and February 12, 2024 [4]. Group 1: Lawsuit Details - The lawsuit was filed on June 16, 2024, claiming violations of federal securities laws [4]. - Allegations include that Teradata's expanded business model led to significant delays in closing large customer transactions, resulting in an overstatement of the company's pipeline health and revenue growth prospects [4]. - Investors reportedly began to learn the truth about the company's situation on December 7, 2023, when Teradata disclosed potential delays in large deals, causing a stock price decline of $2.89 per share, or 6%, to close at $43.40 [5]. Group 2: Stock Price Impact - Following the announcement of "deal timing issues" on February 12, 2024, Teradata's stock price fell by $10.57 per share, or 22%, closing at $38.22 on February 13, 2024 [5]. Group 3: Legal Representation - Bleichmar Fonti & Auld LLP is representing investors in this case, operating on a contingency fee basis, meaning shareholders are not responsible for court costs or litigation expenses [8]. - The firm has a strong track record, having recovered over $900 million from Tesla's Board of Directors and $420 million from Teva Pharmaceutical Industries [9].

Core Viewpoint - A securities class action lawsuit has been filed against Teradata Corporation for alleged violations of federal securities laws, including fraudulent misrepresentations and omissions regarding its business and financial outlook, leading to significant investor losses [1]. Financial Performance and Guidance - On February 13, 2023, Teradata projected a 53% to 57% year-over-year increase in public cloud Annual Recurring Revenue (ARR) and a 6% to 8% increase in total ARR for 2023 [3]. - The company's CFO indicated on December 7, 2023, that a significant deal might be delayed, potentially affecting the ARR guidance, which led to a 6.24% drop in stock price [4]. - On February 12, 2024, Teradata reported a 48% increase in public cloud ARR for 2023, which was below the initial guidance, and total ARR increased by only 6%, at the low end of expectations [5]. Stock Price Impact - Following the announcement of disappointing financial results on February 12, 2024, Teradata's stock price fell by $10.57 per share, or 21.66%, from $48.79 to $38.22 [5]. Legal Proceedings - The lead plaintiff deadline for the class action lawsuit is set for August 13, 2024, allowing affected investors to seek representation [1][10].

Core Viewpoint - Teradata's stock appears undervalued, but concerns about customer retention and growth prospects raise questions about its future performance [1][6]. Group 1: Stock Performance and Analyst Ratings - Teradata's stock fell approximately 8% following a new sell rating from UBS, indicating potential customer attrition [4][6]. - Analysts project a long-term earnings growth rate of around 13% for Teradata, despite current concerns [5]. Group 2: Revenue Projections and Risks - Teradata aims to achieve $1 billion in annual recurring revenue from its public cloud business by 2025, up from $528 million last year, which represents a tenfold increase over four years [7]. - UBS analyst Austin Dietz forecasts that Teradata may fall short of its targets, estimating $935 million in cloud annual recurring revenue and $405 million in free cash flow [5][7]. - A concerning survey revealed that 6 out of 7 Teradata customers plan to migrate away from the platform within the next 6 to 24 months, raising alarms about future revenue stability [5][7]. Group 3: Valuation Metrics - Teradata's stock trades at over 80 times earnings, which may seem expensive, but it is valued at just 7.4 times its expected free cash flow for 2025, suggesting it could be inexpensive based on that metric [8]. - Even if UBS's survey results hold true, Teradata's shares would still trade at a relatively low multiple of 8.2 [8].

Core Insights - Teradata is experiencing significant growth in Cloud Annual Recurring Revenue (ARR), reaching $525 million in Q1 2024, a 36% year-over-year increase at constant currency, driven by strong adoption of cloud solutions [3] - The company has expanded its partner base, including collaborations with major players like Google Cloud, Microsoft, and Amazon Web Services, which are key growth drivers [4][6] - Despite the positive cloud growth, Teradata faces challenges with on-premises erosion and elongated deal cycles, leading to a 2.3% year-over-year decline in Q1 2024 revenues, totaling $465 million [7][8] Company Developments - Teradata announced the integration of the DataRobot AI Platform with Teradata VantageCloud and ClearScape Analytics, enhancing AI capabilities for enterprises [10] - The availability of Teradata VantageCloud Lake on Microsoft Azure is expected to broaden the customer base by supporting AI and machine learning workloads [5] - The renewal and expansion of the Strategic Collaboration Agreement with AWS aims to accelerate cloud migration and enhance data analytics modernization [6] Financial Outlook - The consensus estimate for Q2 2024 revenues is $447.58 million, indicating a projected 3.12% year-over-year decline [8] - Non-GAAP earnings for Q2 2024 are expected to be between 46 and 50 cents per share, with the consensus mark at 48 cents [9]

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of Teradata Corporation regarding a class action lawsuit due to alleged misleading statements and failure to disclose critical information during the specified class period [1][2]. Group 1: Allegations - The complaint alleges that Teradata's expanded business model led to longer transaction finalization times with customers, which was not disclosed [2]. - It is claimed that Teradata overstated its ability to close customer transactions within intended timeframes, impacting its outlook for 2023 Annual Recurring Revenue (ARR) growth [2]. - The company reportedly failed to close several customer transactions that were factored into its ARR expectations for 2023, leading to a likelihood of not meeting its public cloud ARR goals [2]. Group 2: Class Action Details - The class period for the lawsuit is defined as February 13, 2023, to February 12, 2024, with a deadline for shareholders to register by August 13, 2024 [2][3]. - Shareholders who register will be enrolled in a portfolio monitoring system to receive updates on the case's progress [3]. - There is no cost or obligation for shareholders to participate in the class action [3]. Group 3: Law Firm Background - The Gross Law Firm is a nationally recognized class action law firm focused on protecting investors' rights against deceit and fraud [4]. - The firm aims to ensure companies adhere to responsible business practices and seeks recovery for investors affected by misleading statements that inflate stock prices [4].

Core Viewpoint - Teradata Corporation is facing a class action securities lawsuit due to allegations of false statements and misleading information regarding its business model and financial outlook for 2023 [2][5]. Group 1: Allegations and Impact - The lawsuit claims that Teradata's expanded business model led to longer transaction finalization times with customers, which was not disclosed [2]. - It is alleged that Teradata overstated its ability to close customer transactions within intended timeframes, impacting its 2023 Annual Recurring Revenue (ARR) growth outlook [2]. - The company reportedly failed to close several customer transactions that were factored into its ARR expectations, leading to doubts about meeting its full-year 2023 public cloud ARR goals [2]. Group 2: Class Definition and Participation - The lawsuit seeks to recover losses for Teradata investors who were adversely affected by the alleged securities fraud between February 13, 2023, and February 12, 2024 [5]. - Investors have until August 13, 2024, to request the Court to appoint them as lead plaintiffs, although participation in any recovery does not require serving as a lead plaintiff [6]. Group 3: Legal Representation - Levi & Korsinsky, LLP has a strong track record in securities litigation, having secured hundreds of millions of dollars for shareholders over the past 20 years [7]. - The firm has been recognized as one of the top securities litigation firms in the United States for seven consecutive years [7].

Core Viewpoint - Teradata Corp. is facing a securities class action lawsuit for allegedly making false and misleading statements regarding its business model, pipeline, and revenue growth prospects between February 13, 2023, and February 12, 2024 [9] Group 1: Allegations and Impact - The lawsuit claims that Teradata's expanded business model, aimed at marketing products beyond IT units, led to significant delays in closing large customer transactions [9] - It is alleged that Teradata overstated the health of its pipeline and revenue growth prospects, which misled investors [9] - Following the revelation of potential delays in large deals on December 7, 2023, Teradata's stock price fell by $2.89 per share, or 6%, closing at $43.40 [11] - On February 12, 2024, the company announced "deal timing issues" that caused it to miss its annual recurring revenue (ARR) guidance, resulting in a stock price decline of $10.57 per share, or 22%, closing at $38.22 [11] Group 2: Legal Representation - Bleichmar Fonti & Auld LLP, a prominent law firm specializing in securities class actions, is representing the plaintiffs in this case [6] - The firm has a strong track record, having recovered over $900 million from Tesla's Board of Directors and $420 million from Teva Pharmaceutical Industries [6]

SAN DIEGO, July 15, 2024 (GLOBE NEWSWIRE) -- Robbins LLP reminds investors that a shareholder filed a class action on behalf of persons and entities that purchased or otherwise acquired Teradata Corporation (NYSE: TDC) securities between February 13, 2023 and February 12, 2024. Teradata provides a connected multi-cloud data platform for enterprise analytics. For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003. The Allegations: Robbins LLP is Investigatin ...