Financial Data and Key Metrics Changes - In 2024, the company delivered $609 million in Cloud ARR and $1.474 billion in total ARR, with Cloud ARR growing 18% year-over-year and total ARR declining 4% year-over-year in constant currency [8][30] - The cloud net expansion rate was 117% in Q4 2024, while total recurring revenue for Q4 was $351 million, down 6% year-over-year [30][35] - Fiscal year 2024 free cash flow was $277 million, representing a 16% margin, with 78% of free cash flow returned to investors through share repurchases [32][38] Business Line Data and Key Metrics Changes - Recurring revenue as a percentage of total revenue increased to 86%, up from 81% in the prior-year period [35] - Fourth quarter total revenue was $409 million, down 11% year-over-year as reported, and down 9% in constant currency [35] - For the full year, recurring revenue was $1.479 billion, a decrease of 1% as reported and an increase of 1% in constant currency [36] Market Data and Key Metrics Changes - The company anticipates Cloud ARR growth of 14% to 18% and flat to 2% growth in total ARR for 2025 [29][44] - The company expects a negative currency impact year-over-year of 150 to 200 basis points on 2025 revenue outlook [40] - The company is seeing increasing interest in its Hybrid AI differentiation, which should lead to higher on-prem expansion [34] Company Strategy and Development Direction - The company is focused on returning to total ARR growth in 2025, with a disciplined approach to managing its financial plan while investing in technology strengths [12][17] - The company has restructured its go-to-market organization and introduced innovations to strengthen its hybrid trusted AI platform [11][12] - The company is emphasizing the importance of operating effectively across both cloud and on-prem environments to meet diverse business needs [15][16] Management's Comments on Operating Environment and Future Outlook - Management noted that despite a challenging year, significant actions were taken in 2024 to position the company for growth in 2025 [11][28] - Management expressed confidence in returning to total ARR growth, citing improved retention rates and the impact of go-to-market changes [33][50] - The company is optimistic about the potential of its AI and GenAI solutions, which are expected to open new market opportunities [67][78] Other Important Information - Claire Bramley, the Chief Financial Officer, is transitioning to a new role outside the industry, with Charles Smotherman assuming the interim CFO position [9][10] - The company has launched new partnerships, including with Nvidia, to enhance its AI capabilities [12][18] Q&A Session Summary Question: Customer perspectives on cloud migrations - Management noted that customers are balancing their on-prem and cloud footprints, with around 30 different GenAI proof-of-concepts currently in execution [55][56] Question: Confidence in ARR guidance - Management explained that the guidance was set with a different approach, limiting reliance on large deals and factoring in deal timing and stage migrations [59][60] Question: Dynamics of the pipeline for 2025 - Management anticipates a 50-50 mix of migrations and expansions, with new logos contributing less to overall growth [65][66] Question: Need for more decisive actions for growth - Management emphasized the importance of continuing the transformation journey and leveraging new AI capabilities to capture market opportunities [78][79] Question: Factors affecting EPS and free cash flow - Management highlighted FX impacts and the decline in revenue due to negative ARR as key factors affecting EPS and free cash flow guidance [82][84] Question: Expectations for ARR and cloud ARR improvement - Management expects improvements in retention rates and visibility into sales productivity to drive ARR growth in 2025 [91][92] Question: Open table format and its relationship with structured data - Management sees open table format as an opportunity to enhance performance and integrate AI capabilities across various data types [116][118]

Core Insights - Teradata reported $409 million in revenue for Q4 2024, a year-over-year decline of 10.5% and an EPS of $0.53, down from $0.56 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $410.76 million by 0.43%, while the EPS exceeded the consensus estimate of $0.42 by 26.19% [1] Financial Performance Metrics - Annual recurring revenue (ARR) totaled $1.47 billion, below the average estimate of $1.52 billion [4] - Public Cloud ARR was $609 million, compared to the average estimate of $633.39 million [4] - Revenue from perpetual software licenses and hardware was $3 million, significantly lower than the average estimate of $7.51 million, representing a 75% year-over-year decline [4] - Recurring revenue was $351 million, slightly above the estimated $343.30 million, but down 5.7% from the previous year [4] - Consulting services revenue was $55 million, below the average estimate of $60.30 million [4] - Gross profit from recurring revenue was $243 million, slightly below the average estimate of $244.72 million [4] - Gross profit from consulting services was $2 million, compared to the average estimate of $6.85 million [4] - Gross profit from perpetual software licenses and hardware was -$2 million, better than the estimated -$6.19 million [4] Stock Performance - Teradata shares returned +2% over the past month, while the Zacks S&P 500 composite increased by +4.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Core Viewpoint - Teradata reported quarterly earnings of $0.53 per share, exceeding the Zacks Consensus Estimate of $0.42 per share, but down from $0.56 per share a year ago, indicating a 26.19% earnings surprise [1][2] Financial Performance - Teradata's revenues for the quarter ended December 2024 were $409 million, missing the Zacks Consensus Estimate by 0.43% and down from $457 million year-over-year [2] - The company has surpassed consensus EPS estimates four times over the last four quarters [2] Stock Performance - Teradata shares have decreased by approximately 0.7% since the beginning of the year, while the S&P 500 has gained 3.1% [3] - The current Zacks Rank for Teradata is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.55 on revenues of $426.01 million, and for the current fiscal year, it is $2.35 on revenues of $1.65 billion [7] - The trend of estimate revisions for Teradata is mixed, which could change following the recent earnings report [6] Industry Context - The Computer-Storage Devices industry, to which Teradata belongs, is currently in the top 16% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

February 2025 Q4'24 and 2024 Earnings Results Teradata Investor Relations © 2025 Teradata. All rights reserved. Forward-looking statements This release contains 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, liquidity, and market conditions, among other things. These forward-looking statements are ...

Financial Performance - Fourth quarter public cloud ARR reached $609 million, an increase of 15% as reported and 18% in constant currency compared to the prior year[5] - Full-year GAAP diluted EPS was $1.16, up 90% year-over-year, while non-GAAP diluted EPS was $2.42, up 17% year-over-year[5] - Total ARR decreased to $1.474 billion from $1.570 billion, a decrease of 6% as reported and 4% in constant currency[6] - Total revenue for the full year was $1.750 billion, a decrease of 5% as reported and 3% in constant currency[8] - Total revenue guidance for 2025 is projected to decline between 6% to 8% year-over-year in constant currency[8] - Total revenue for Q4 2024 was $409 million, a decrease of 11% compared to $457 million in Q4 2023[26] - Recurring revenue for the fourth quarter was $351 million, down 6% as reported and 4% in constant currency[6] - Recurring revenue decreased by 6% to $351 million in Q4 2024 from $372 million in Q4 2023[26] - For the full year 2024, total segment revenue was $1.75 billion, down 5% from $1.83 billion in 2023[32] Cash Flow and Assets - Cash flow from operations for the full year was $303 million, with free cash flow of $277 million[5] - Free Cash Flow for the twelve months ended December 31, 2024, was $277 million, compared to $355 million in 2023, with a guidance of $250 to $280 million for 2025[20] - Cash provided by operating activities for Q4 2024 was $156 million, down from $176 million in Q4 2023[20] - Cash and cash equivalents increased to $420 million as of December 31, 2024, from $348 million at September 30, 2024[28] - Total assets decreased to $1,704 million as of December 31, 2024, from $1,873 million a year earlier[28] - Total liabilities were $1,571 million as of December 31, 2024, compared to $1,738 million a year earlier[28] Profitability Metrics - GAAP Gross Profit for Q4 2024 was $243 million, a decrease of 13% from $278 million in Q4 2023, representing 59.4% of revenue[16] - Non-GAAP Net Income for the twelve months ended December 31, 2024, was $238 million, up 12% from $212 million in 2023, with a margin of 13.6%[16] - GAAP Operating Income for Q4 2024 was $39 million, down 17% from $47 million in Q4 2023, accounting for 9.5% of revenue[16] - Net income for Q4 2024 was $25 million, compared to a net loss of $7 million in Q4 2023, representing a significant turnaround[26] - Total gross profit for Q4 2024 was $243 million, a decline from $278 million in Q4 2023, representing a gross margin of 59.4%[32] - Total gross profit for the full year 2024 was $1.06 billion, compared to $1.11 billion in 2023[32] Earnings Per Share - GAAP Earnings Per Share for Q4 2024 was $0.26, compared to a loss of $0.07 in Q4 2023, with guidance for Q1 2025 set between $0.33 and $0.37[17] - Non-GAAP Diluted Earnings Per Share for the twelve months ended December 31, 2024, was $2.42, up from $2.07 in 2023, with guidance for 2025 set between $2.15 and $2.25[17] Strategic Initiatives - The company announced a CFO transition plan, with Charles Smotherman appointed as Interim CFO[3] - Significant AI technology advancements were made in 2024, including support for OTFs and BYO-LLM[2] - The company is focused on enhancing its cloud analytics and data platform for AI to drive business results[22] Revenue Breakdown - Product sales revenue decreased by 8% to $354 million in Q4 2024 from $384 million in Q4 2023[32] - Consulting services revenue fell by 25% to $55 million in Q4 2024, down from $73 million in Q4 2023[32] - Full year product sales revenue was $1.50 billion, a decrease of 2% compared to $1.54 billion in 2023[32] - Consulting services revenue for the full year 2024 was $248 million, down 16% from $296 million in 2023[32] Tax Rates - The non-GAAP effective tax rate for Q4 2024 was 17.5%, compared to 26.9% in Q4 2023[17] - The effective tax rate for Q4 2024 was 16.7%, significantly lower than 131.8% in Q4 2023[26] Stock Repurchase - The company repurchased $29 million of common stock in Q4 2024, compared to $7 million in Q4 2023[30]

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.Zacks Premium includes access to the Zacks Style Scores as well. What are the Zacks Style Scores? The ...

A month has gone by since the last earnings report for Teradata (TDC) . Shares have added about 11.3% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Teradata due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Teradata Q3 Earnings Beat Estimates, Revenues Flat Y/YTer ...

Core Insights - Teradata Corporation has launched its AI Unlimited platform for public preview via Microsoft's Fabric Workload Hub, enhancing its competitive position in the AI and data analytics market [1][2] Company Developments - Teradata AI Unlimited is a serverless compute engine designed to accelerate AI innovations for enterprises, integrating advanced analytics and AI/ML capabilities into Microsoft's data analytics platform [2] - Users can access Teradata AI Unlimited on Microsoft Fabric without affecting existing Teradata systems, supporting open data formats and ensuring compatibility with other tools [3] Financial Performance - Teradata's shares have declined 32.2% year to date, underperforming the broader Zacks Computer & Technology Sector's growth of 26.3% and the Computer-Storage Devices industry's rise of 13.6% [4] - The company has struggled to capitalize on the demand for cloud data analytics, with its stock performance lagging behind Oracle, which has returned 79.2%, while outperforming Snowflake, which dropped 34.5% [5] Growth Prospects - Teradata's cloud segment shows promising growth, with public cloud's annual recurring revenues increasing by 26% year over year to $570 million, driven by demand for Teradata VantageCloud and ClearScape Analytics [7] - The integration with NVIDIA's AI platform enhances Teradata's offerings, providing scalable AI capabilities for processing large data sets [8] Earnings Estimates - For FY24, Teradata expects non-GAAP earnings between $2.30 and $2.234 per share, with total revenues projected to decline by 2-4% year over year [9] - The Zacks Consensus Estimate for FY24 revenues is $1.75 billion, indicating a 4.41% year-over-year decline, while the consensus for earnings is $2.30 per share, reflecting a 2.68% increase over the past 30 days and 11.11% year-over-year growth [10]

Core Insights - VIAVI Solutions Inc. has been selected by TDC NET, Denmark's largest digital infrastructure provider, to implement NITRO® AIOps for comprehensive network monitoring [1][2] - The deployment of NITRO AIOps is part of TDC NET's broader transformation strategy, which includes collaboration with Infosys for integration with other vendors [1][3] Group 1: NITRO AIOps Features - NITRO AIOps enhances TDC NET's transformation goals by providing consolidated network monitoring and automation to boost business productivity [2] - The platform utilizes advanced AI/ML techniques for automated topology mapping, event correlation, and AI-driven forecasting, offering a unified dashboard for proactive monitoring [2][3] Group 2: Operational Integration - The solution is designed to function across TDC NET's entire IT and telecommunications ecosystem, including mobile, coax, fiber, core, and transport networks, as well as data centers [3] - VIAVI will collaborate closely with TDC NET to ensure seamless integration, minimize disruptions, and accelerate value realization throughout the infrastructure [3][4] Group 3: Strategic Importance - TDC NET emphasizes the importance of NITRO AIOps for maintaining optimal network performance, enhancing service quality, and improving customer experience [4] - VIAVI aims to transform network monitoring into an intelligent, self-healing process, ensuring stable and future-proof connections for TDC NET [4]

Core Viewpoint - Teradata's shares fell significantly after the third-quarter earnings report, despite beating revenue and adjusted EPS estimates, due to conservative guidance on cloud business growth [1][2]. Financial Performance - For Q3, Teradata reported revenue of $440 million, nearly unchanged from $438 million in the same quarter last year [2]. - Adjusted EPS was $0.69, surpassing analyst expectations of $0.53 [2]. Business Transition - Teradata is transitioning from an on-premises perpetual license model to a recurring cloud subscription model, which typically results in flat or declining revenue as upfront licenses are replaced by ongoing subscriptions [3]. - Public cloud annualized recurring revenue (ARR) increased by 26%, aligning with expectations for an enterprise software-as-a-service business [4]. Future Guidance - Management forecasted a deceleration in public cloud ARR growth to between 18% and 22% for Q4, indicating a slower migration of workloads to the cloud [5]. - Total ARR guidance for the year remains unchanged, projecting a decline of 2% to 4% [5]. Market Position - Following the recent decline, Teradata's shares are considered somewhat cheap, trading at approximately 12.2 times the forecasted 2024 adjusted EPS [6]. - Despite the potential for growth in hybrid cloud data management, the current competitive environment suggests that investors may want to wait for clearer signals before making purchases [6].