Core Insights - Snowflake (SNOW) and Teradata (TDC) are significant players in the cloud analytics industry, with Snowflake focusing on a cloud-based platform for data management and analysis, while Teradata offers a hybrid cloud platform that integrates data analytics and management for enterprise workloads [1][2] Market Overview - The global cloud analytics market was valued at $35.7 billion in 2024 and is projected to reach $118.5 billion by 2029, growing at a CAGR of 27.1%, indicating a robust opportunity for both SNOW and TDC as businesses increase investments in data-driven decision-making and AI analytics [2] Teradata (TDC) Performance - TDC has experienced a 16% year-over-year growth in public cloud Annual Recurring Revenues (ARR), reaching $606 million in Q1 2025, with cloud services now constituting 42% of total ARR, up from 35% a year ago [3][10] - TDC launched the Enterprise Vector Store in March 2025, enhancing its AI capabilities and enabling real-time insights from diverse data types [4] - In May 2025, TDC partnered with Fivetran to streamline data integration from over 700 sources into VantageCloud, facilitating low-code integration and accelerating AI adoption [5] - TDC completed the IRAP assessment at the PROTECTED level, enhancing its credibility in sensitive industries and public sector [6] - TDC's partnerships with major cloud providers and global system integrators bolster its enterprise reach and cloud ecosystem [7] Snowflake (SNOW) Performance - SNOW reported a 26% year-over-year growth in product revenues, with 606 customers generating over $1 million in trailing 12-month revenue as of April 30, 2025 [8][10] - The total customer base for SNOW increased to 11,578, including 754 of the Forbes Global 2000, contributing significantly to its revenue growth [9] - SNOW has launched several new tools, including Cortex AI+SQL and SnowConvert, to enhance cloud modernization and AI-driven workflows for enterprise users [11] - Leading enterprises like Canva utilize SNOW's AI Data Cloud for personalized user experiences, indicating strong product-market fit [12] Stock Performance and Valuation - Year-to-date, SNOW shares have increased by 36.8%, while TDC shares have decreased by 28.2%, with SNOW's performance driven by strong AI product momentum and customer growth [13] - SNOW shares are currently considered overvalued with a Value Score of F, while TDC shares are viewed as undervalued with a Value Score of B, trading at 14.49X and 1.3X forward Price/Sales respectively [16] - The Zacks Consensus Estimate for SNOW's fiscal 2026 earnings is $1.06 per share, reflecting a 27.71% year-over-year increase, while TDC's estimate for 2025 is $2.16 per share, indicating a 10.7% year-over-year decrease [19] Investment Outlook - Both SNOW and TDC are well-positioned in the enterprise data and cloud analytics space, but TDC is currently favored due to its strong cloud ARR growth, expanding AI capabilities, and strategic partnerships [20][21] - TDC's hybrid cloud architecture offers greater flexibility for complex enterprise environments, giving it a competitive edge [21] - TDC holds a Zacks Rank 2 (Buy), while SNOW has a Zacks Rank 3 (Hold), suggesting a stronger investment case for TDC at this time [22]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Teradata (TDC) as a strong value stock based on its financial metrics and Zacks Rank [2][4][7]. Company Analysis - Teradata (TDC) has a Zacks Rank of 2 (Buy) and an A grade for Value, indicating strong potential for value investors [4]. - The stock is currently trading at a P/E ratio of 9.70, significantly lower than the industry average of 18.76 [4]. - TDC's Forward P/E has fluctuated between 8.41 and 14.66 over the past 52 weeks, with a median of 12.71 [4]. - The P/S ratio for TDC is 1.23, compared to the industry average of 1.43, suggesting it is undervalued [5]. - TDC has a P/CF ratio of 9.20, which is also lower than the industry average of 18.22, indicating a solid cash outlook [6]. - Over the past 12 months, TDC's P/CF has ranged from 8.10 to 22.09, with a median of 15.44 [6]. - These financial metrics collectively suggest that TDC is likely undervalued and presents a strong investment opportunity [7].

Core Insights - The article highlights the significance of Big Data in enhancing business decision-making, risk management, and operational efficiency through advanced analytics and AI technologies [3][4]. Company Summaries Confluent Inc. (CFLT) - Confluent operates a data streaming platform, providing managed cloud-native SaaS and self-managed software solutions [7]. - Expected revenue and earnings growth rates are 19% and 32.4%, respectively, for the current year, with a 20.5% improvement in earnings estimates over the past 30 days [8]. - The short-term average price target indicates a potential increase of 28.9% from the last closing price of $21.05, with a maximum upside of 71% [9]. Blackbaud Inc. (BLKB) - Blackbaud offers cloud software and services, achieving solid execution of strategic goals with organic revenue growth and stock buybacks [10][11]. - Expected revenue and earnings growth rates are -3.1% and 17.9%, respectively, with an 8.4% improvement in earnings estimates over the past 30 days [12]. - The short-term average price target suggests a 10.7% increase from the last closing price of $62.12, indicating a maximum upside of 36.8% [12]. Sprout Social Inc. (SPT) - Sprout Social provides a web-based social media management platform, offering AI-powered solutions for various social media functions [13][14]. - Expected revenue and earnings growth rates are 11.3% and 20.6%, respectively, with a 10.3% improvement in earnings estimates over the past 30 days [14]. - The short-term average price target indicates a potential increase of 30.7% from the last closing price of $21.55, with a maximum upside of 94.9% [15]. HubSpot Inc. (HUBS) - HubSpot delivers a cloud-based customer relationship management platform, experiencing steady adoption and integration of AI features [16][17]. - Expected revenue and earnings growth rates are 15.4% and over 100%, respectively, with a 49% improvement in earnings estimates over the past 30 days [18]. - The short-term average price target suggests a 19% increase from the last closing price of $621.25, indicating a maximum upside of 49.7% [18]. Teradata Corp. (TDC) - Teradata provides a hybrid cloud analytics platform, benefiting from strong cloud ARR growth and strategic partnerships with major tech companies [19][20]. - Expected revenue and earnings growth rates are -6.5% and -2.1%, respectively, with unchanged earnings estimates over the past 30 days [20]. - The short-term average price target indicates an 18.7% increase from the last closing price of $21.82, with a maximum upside of 60.4% [21].

Contact Information: Bragar Eagel & Squire, P.C. Brandon Walker, Esq. Marion Passmore, Esq. (212) 355-4648 investigations@bespc.com www.bespc.com About Bragar Eagel & Squire, P.C.: Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit w ...

PART I—FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Teradata Corporation's unaudited condensed consolidated financial statements for Q1 2025 and 2024, including income, balance sheets, and cash flows [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Teradata's Q1 2025 total revenue decreased to $418 million, but net income more than doubled to $44 million due to reduced operating expenses Q1 2025 vs Q1 2024 Income Statement Highlights (in millions, except per share data) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | **$418** | **$465** | **-10.1%** | | Total Recurring Revenue | $358 | $388 | -7.7% | | Gross Profit | $248 | $284 | -12.7% | | Total Operating Expenses | $182 | $236 | -22.9% | | **Income from Operations** | **$66** | **$48** | **+37.5%** | | **Net Income** | **$44** | **$20** | **+120.0%** | | Diluted EPS | $0.45 | $0.20 | +125.0% | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, Teradata's total assets increased to $1,752 million, liabilities to $1,594 million, and cash decreased to $368 million Balance Sheet Summary (in millions) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $368 | $420 | | Total current assets | $791 | $749 | | **Total assets** | **$1,752** | **$1,704** | | Total current liabilities | $946 | $930 | | Long-term debt | $449 | $455 | | **Total liabilities** | **$1,594** | **$1,571** | | **Total stockholders' equity** | **$158** | **$133** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 net cash from operations decreased to $8 million, with $68 million used in financing, resulting in a $52 million cash decrease Cash Flow Summary for Three Months Ended March 31 (in millions) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $8 | $27 | | Net cash used in investing activities | $(1) | $(8) | | Net cash used in financing activities | $(68) | $(150) | | **Decrease in cash, cash equivalents and restricted cash** | **$(52)** | **$(148)** | - Financing activities in Q1 2025 included **$44 million** for repurchases of common stock, compared to **$124 million** in Q1 2024[14](index=14&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section details financial statement disclosures, including revenue by geography, SAP litigation, and business segment reorganization Revenue by Geography for Three Months Ended March 31 (in millions) | Region | 2025 | 2024 | | :--- | :--- | :--- | | United States | $214 | $248 | | International | $204 | $217 | | **Total Revenue** | **$418** | **$465** | - As of March 31, 2025, the company had **$1,979 million** in remaining unsatisfied performance obligations, with **$1,128 million** expected to be recognized as revenue in the next year[25](index=25&type=chunk) - The company realigned its business into two operating segments: Product Sales and Consulting Services, effective August 5, 2024[61](index=61&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=20&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial results, highlighting a 3% decrease in Total ARR to **$1,442 million**, a 15% increase in Public Cloud ARR, and a 37.5% rise in operating income Key Performance Metrics as of March 31 | Metric | 2025 | 2024 | Change (Reported) | | :--- | :--- | :--- | :--- | | Total ARR | $1,442 million | $1,480 million | -3% | | Public Cloud ARR | $606 million | $525 million | +15% | | Cloud Net Expansion Rate | 115% | 123% | -8 p.p. | - Management attributes the decrease in total revenue to a decline in on-premises business and consulting services, partially offset by strong growth in Public Cloud revenue[76](index=76&type=chunk) - Operating expenses decreased by **23%** year-over-year, primarily due to cost discipline, prior restructuring actions, and lower stock-based compensation[75](index=75&type=chunk)[83](index=83&type=chunk) - The company is experiencing market trends of elongated deal closing cycles and delayed customer spending due to the uncertain macroeconomic environment[78](index=78&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes occurred in market risk factors, such as foreign currency exchange and interest rate risks, from those disclosed in the 2024 Annual Report - There have been no material changes to the market risk factors previously disclosed in the 2024 Annual Report[109](index=109&type=chunk) [Item 4. Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of March 31, 2025, with a new global cloud ERP system implemented to enhance internal controls - The CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2025[111](index=111&type=chunk) - A new global cloud ERP system was implemented in phases through Q1 2025 to modernize financial processes and enhance internal controls[112](index=112&type=chunk) PART II—OTHER INFORMATION [Item 1. Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) This section details legal proceedings, including ongoing litigation with SAP SE, a putative securities class action, and a shareholder derivative lawsuit - The company is involved in a lawsuit against SAP SE, alleging misappropriation of trade secrets and anticompetitive practices, with a recent Ninth Circuit ruling in Teradata's favor[44](index=44&type=chunk) - A putative securities class action lawsuit was filed concerning the company's business and 2023 financial outlook, which the company intends to vigorously defend[45](index=45&type=chunk) - A shareholder derivative lawsuit was filed based on similar allegations as the securities class action, with potential financial loss currently not reasonably estimable[46](index=46&type=chunk) [Item 1A. Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) No material changes occurred in the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K - There have been no material changes to the risk factors previously disclosed in the 2024 Annual Report[116](index=116&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2025, Teradata repurchased **1.56 million** shares for **$43.6 million**, with **$313.4 million** remaining for future repurchases Share Repurchases for Q1 2025 | Month | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | January 2025 | 634,872 | $31.50 | | February 2025 | 514,547 | $27.39 | | March 2025 | 413,828 | $23.09 | | **First Quarter Total** | **1,563,247** | **$27.92** | - As of March 31, 2025, **$313.4 million** remained authorized for future repurchases under the open market program[118](index=118&type=chunk) [Item 5. Other Information](index=30&type=section&id=Item%205.%20Other%20Information) This section discloses the adoption of Rule 10b5-1 trading plans by Director Timothy C. K. Chou and Chief Legal Officer Margaret A. Treese in Q1 2025 - Director Timothy C. K. Chou adopted a Rule 10b5-1 trading plan on February 21, 2025, to sell up to **6,216 shares**[121](index=121&type=chunk) - Chief Legal Officer Margaret A. Treese adopted a Rule 10b5-1 trading plan on February 28, 2025, to sell up to **37,104 shares**[121](index=121&type=chunk) [Item 6. Exhibits](index=31&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including governance documents, compensatory agreements, executive offer letters, and SOX certifications - Exhibits filed include new forms of performance-based restricted share unit agreements and offer letters for executives Charles Smotherman and Mike Hutchinson[123](index=123&type=chunk) - Certifications from the CEO and CFO pursuant to Sarbanes-Oxley Act Sections 302 and 906 are included as exhibits[123](index=123&type=chunk)

Core Insights - Teradata (TDC) reported first-quarter 2025 non-GAAP earnings of 66 cents per share, exceeding the Zacks Consensus Estimate by 15.79%, with a year-over-year increase of 15.8% [1] - Revenues for the quarter were $418 million, missing the Zacks Consensus Estimate by 1.71%, and reflecting a 10% decline year over year on a reported basis and an 8% decline on a constant-currency basis [1] Revenue Breakdown - Total annual recurring revenues (ARR) at the end of Q1 declined 3% year over year to $1.442 billion, with a 2% decline at constant currency [2] - Public cloud ARR increased by 15% on a reported basis and 16% at constant currency year over year to $606 million, driven by rising demand for cloud solutions [2] - Recurring revenues, which contributed 85.6% to total revenues, fell 8% year over year on a reported basis to $358 million [4] - Perpetual software license and hardware revenues increased by 25% year over year to $10 million, while consulting services revenues dropped by 27.5% year over year to $50 million [4] Operating Performance - The gross margin on a non-GAAP basis was 60.3%, down 190 basis points year over year [5] - Selling, general & administrative (SG&A) expenses decreased by 28% year over year to $116 million, while research & development (R&D) expenses were $66 million, down 12% year over year [5] - The non-GAAP operating margin improved to 21.8%, up 270 basis points year over year [5] Balance Sheet Overview - As of March 31, 2025, Teradata had cash and cash equivalents of $368 million, down from $420 million as of December 31, 2024 [6] - Long-term debt was $449 million, slightly down from $455 million as of December 31, 2024 [6] - The company generated $8 million in cash from operating activities in Q1, a significant decrease from $156 million in the previous quarter [6] Guidance and Projections - For Q2 2025, Teradata expects non-GAAP earnings per share between 37 cents and 41 cents, with total revenues anticipated to decline by 7-9% year over year [8] - For the full year 2025, non-GAAP earnings per share are expected to be between $2.15 and $2.25, with total revenues projected to decrease by 4-7% from the previous year [8] - Public cloud ARR growth is projected between 14% and 18% year over year, while total ARR is expected to be flat to grow by 2% year over year [9]

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 based upon current expectations and assumptions and often can be identified by words such as "expect," "strive," "looking ahead," "outlook, ...

Financial Performance - For the quarter ended March 2025, Teradata reported revenue of $418 million, down 10.1% year-over-year, and EPS of $0.66, compared to $0.57 in the same quarter last year [1] - The reported revenue was below the Zacks Consensus Estimate of $425.28 million, resulting in a surprise of -1.71%, while the EPS exceeded the consensus estimate of $0.57 by +15.79% [1] Key Metrics - Annual recurring revenue (ARR) totaled $1.44 billion, matching the average estimate from two analysts [4] - Public Cloud ARR was reported at $606 million, surpassing the average estimate of $590.05 million [4] - Revenue from perpetual software licenses and hardware was $10 million, significantly above the estimated $4.85 million, reflecting a +25% change year-over-year [4] - Recurring revenue was $358 million, below the average estimate of $368.40 million, indicating a -7.7% change year-over-year [4] - Consulting services revenue was $50 million, slightly below the average estimate of $52.03 million, with a gross profit of -$3 million compared to an estimated $4.64 million [4] - Gross profit from recurring revenue was $250 million, slightly below the estimated $256.11 million [4] Stock Performance - Teradata shares have returned +15.1% over the past month, outperforming the Zacks S&P 500 composite's +11.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - Teradata (TDC) reported quarterly earnings of $0.66 per share, exceeding the Zacks Consensus Estimate of $0.57 per share, and showing an increase from $0.57 per share a year ago, resulting in an earnings surprise of 15.79% [1] - The company posted revenues of $418 million for the quarter ended March 2025, which was 1.71% below the Zacks Consensus Estimate and a decrease from $465 million in the same quarter last year [2] - Teradata has surpassed consensus EPS estimates in all four of the last quarters, but has only topped revenue estimates once during the same period [2] Financial Performance - The earnings surprise of 15.79% indicates strong performance relative to expectations, while the revenue miss suggests challenges in meeting market forecasts [1][2] - Year-to-date, Teradata shares have declined approximately 29.1%, significantly underperforming the S&P 500, which has seen a decline of 3.9% [3] Future Outlook - The company's future stock performance will largely depend on management's commentary during the earnings call and the subsequent revisions of earnings estimates [3][4] - Current consensus EPS estimate for the upcoming quarter is $0.55, with projected revenues of $399.52 million, while the estimate for the current fiscal year is $2.18 on revenues of $1.65 billion [7] Industry Context - The Computer-Storage Devices industry, to which Teradata belongs, is currently ranked in the bottom 7% of over 250 Zacks industries, indicating a challenging environment [8] - Historical data suggests that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than a factor of 2 to 1, highlighting the potential impact of industry performance on Teradata's stock [8]

Teradata (TDC) Q1 2025 Earnings Call May 06, 2025 04:30 PM ET Company Participants Chad Bennett - Senior VP, Investor Relations & Corporate DevelopmentSteve McMillan - President and CEOSumeet Arora - Chief Product OfficerCharles Smotherman - Interim CFOErik Woodring - Managing Director - Equity ResearchYitchuin Wong - Senior Equity Research AssociateChirag Ved - Vice PresidentMichael Richards - Equity Research Senior Associate Conference Call Participants Howard Ma - Director & Equity Research AnalystJared ...