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RADNOR, Pa., Aug. 07, 2024 (GLOBE NEWSWIRE) -- The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors that a securities class action lawsuit has been filed in the United States District Court for the Southern District of California against Teradata Corporation ("Teradata") (NYSE: TDC). The action charges Teradata with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to the company's business, operations, and prospects. As ...

Core Insights - Teradata's stock experienced a significant decline of 14.06% due to a mixed earnings report and weak guidance targets [1] - The company reported a 33% year-over-year increase in adjusted earnings, but revenues fell by 6% to $436 million, missing the consensus estimate of $447 million [2] - Management anticipates continued revenue declines despite solid profit expectations [2] Financial Performance - Adjusted earnings rose by 33% year-over-year [2] - Revenues decreased by 6% to $436 million, below the expected $447 million [2] Management Commentary - CEO Steve McMillan indicated that macroeconomic factors are impacting Teradata's performance, with clients taking longer to finalize deals [3] - The company is implementing a cost-cutting program targeting approximately 10% of its workforce [3] Market Position - Teradata's stock has dropped 54% over the past year, indicating ongoing challenges [4] - The company faces stiff competition from cloud-computing giants and emerging market players, making it difficult to capitalize on the AI boom [5] Strategic Outlook - While a cost-cutting program could improve earnings, the primary issue remains weak sales performance [6] - The company is attempting a turnaround but faces significant hurdles in a competitive landscape [6]

For the quarter ended June 2024, Teradata (TDC) reported revenue of $436 million, down 5.6% over the same period last year. EPS came in at $0.64, compared to $0.48 in the year-ago quarter. The reported revenue represents a surprise of -2.59% over the Zacks Consensus Estimate of $447.58 million. With the consensus EPS estimate being $0.48, the EPS surprise was +33.33%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their ...

ATLANTA, Aug. 06, 2024 (GLOBE NEWSWIRE) -- A shareholder class action lawsuit has been filed against officers of Teradata Corporation ("Teradata" or the "Company") (NYSE: TDC). The lawsuit alleges that Defendants made materially false and misleading statements and/or failed to disclose material adverse information, regarding the Company's business, operations, and compliance policies, including allegations that: (i) under Teradata's expanded business model, which involved engagement with additional customer ...

Financial Data and Key Metrics - Cloud ARR grew by 32% year-over-year in constant currency, with a cloud net expansion rate of 123% [4][20] - Total ARR declined by 3% year-over-year, driven by on-prem erosions and lower expansion activity [4][20] - Non-GAAP earnings per share was $0.64, exceeding the top-end of the guidance range [23] - Free cash flow was $39 million, an $18 million increase sequentially [23] - Total revenue was $436 million, down 6% year-over-year as reported, and down 3% in constant currency [22] - Recurring revenue was $368 million, down 1% year-over-year as reported, but up 2% in constant currency [22] Business Line Performance - Cloud revenue showed strong growth, offset by declines in perpetual and consulting revenues [22] - The number of eight-figure cloud ARR customers doubled year-over-year [4] - Cloud ARR grew $19 million sequentially in constant currency [20] - The company closed an eight-figure deal that had slipped from 2023 [20] Market Performance - EMEA region outperformed other regions under the new Chief Revenue Officer's leadership [5] - The pipeline of large eight-figure ARR deals increased to three times what it was in Q2 of last year [6] - New logo pipeline momentum is strong, with ARR from new logos expected to double in the second half of 2024 compared to the prior year [6] Company Strategy and Industry Competition - The company is focusing on cost reduction, including a 9% to 10% reduction in headcount, to improve profitability and free cash flow [8][24] - Teradata is investing in cloud growth and maintaining its competitive position in the data and analytics market [19] - The company is embracing open table formats like Apache Iceberg and Delta Lake to enable broader AI access to data [12] - Teradata AI Unlimited, an on-demand AI/ML engine, is now integrated into Microsoft Fabric and available in public preview on AWS and Microsoft marketplaces [13][14] Management Commentary on Operating Environment and Future Outlook - The company is experiencing longer customer decision cycles, which are impacting deal closures and cloud ARR growth [5][6][21] - Management expects deal elongation to continue, with a more pronounced back-end weighting in 2024 [21] - The revised outlook for 2024 includes a total ARR decline of 2% to 4%, cloud ARR growth of 28% to 32%, and free cash flow of $270 million to $290 million [25] - For 2025, the company anticipates low- to mid-single-digit year-over-year growth in total ARR, operating margin in the low 20% range, and free cash flow of $320 million to $370 million [28] Other Important Information - Teradata was recognized as a Customers' Choice for Cloud DBMS in Gartner's Peer Insights Voice of the Customer report [16] - The company expanded its Strategic Collaboration Agreement with AWS to help customers modernize their data analytic ecosystems and maximize AI opportunities [18] - Teradata unveiled VantageCloud Lake on Google Cloud, making its data lake solution available on all three major CSP platforms: AWS, Google Cloud, and Microsoft Azure [11] Q&A Session Summary Question: What is driving the shortfall in cloud ARR growth despite strong net expansion rates? [29] - Answer: The shortfall is primarily due to deal elongation, with customers delaying decisions to migrate to the cloud. The pipeline remains strong, but deals are taking longer to close [30][31] Question: What gives the company confidence in its 2025 outlook given the volatility in 2024? [32] - Answer: The company has thoroughly reviewed its pipeline, applied heavily discounted assumptions, and is focusing on cost reductions and reinvestments to drive growth. Cloud ARR growth and improved retention rates are expected to support 2025 performance [33][34] Question: How is the restructuring impacting the company's go-to-market strategy? [42] - Answer: The restructuring has streamlined the go-to-market organization, reducing management layers and focusing on industry and geographic alignment. The company is confident in its ability to close large deals despite the restructuring [42][43] Question: What steps is the company taking to mitigate future erosion and retain customers? [47] - Answer: The company is executing a cloud-first strategy, enhancing customer success management, and offering commercial incentives to encourage cloud migration. Most customers who move to the cloud with Teradata also expand their usage [48][49][50] Question: How is the competitive environment evolving, and how is Teradata positioned? [51] - Answer: The competitive environment remains consistent, with Teradata well-positioned due to its hybrid cloud platform and new technologies like VantageCloud Lake on Google Cloud and Teradata AI Unlimited integrated with Microsoft Fabric [51] Question: What is the expected impact of the restructuring on free cash flow and EBIT? [39][67] - Answer: The restructuring is expected to save $75 million to $80 million annually, with $15 million to $20 million benefiting 2024 EBIT. The company anticipates incremental EBIT benefits in 2025, with free cash flow improving due to lower severance payments and cost reductions [40][67][68] Question: How is the company addressing the shift towards open table formats like Iceberg? [81] - Answer: Teradata is embracing open table formats and supporting multiple OTS to provide flexibility and dynamic solutions for customers. The company believes the battle for the best query engine will be key in the future [82][83]

August 2024 | --- | --- | --- | |---------------------------------------|-----------------------------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | Q2'24 | | | | Earnings Results | | | | Teradata Investor Relations | | | © 2024 Teradata. All rights reserved. | | | Forward-looking statements This presentation and the accompanying discussion contain forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934. Forward-looking statements generally rela ...

Core Viewpoint - A class action has been filed against Teradata Corporation for allegedly misleading investors about its business prospects, particularly regarding its ability to close customer transactions and meet annual recurring revenue (ARR) expectations [2]. Group 1: Allegations Against Teradata - The complaint states that Teradata did not disclose that its expanded business model led to longer transaction finalization times with customers [2]. - It is alleged that Teradata overstated its ability to close transactions within intended timeframes under this new business model [2]. - The company reportedly failed to close several customer transactions that were included in its outlook for 2023 ARR growth, leading to doubts about meeting full-year expectations for Total and Public Cloud ARR [2]. - Following the revelation of these issues, Teradata's stock price dropped by $10.57 per share, or 21.66%, closing at $38.22 on February 13, 2024 [2]. Group 2: Class Action Participation - Shareholders may be eligible to participate in the class action against Teradata and must file motions to serve as lead plaintiff by August 13, 2024 [3]. - A lead plaintiff represents other class members in directing the litigation, but participation is not required to be eligible for recovery [3]. Group 3: Robbins LLP Overview - Robbins LLP is a law firm that specializes in securities class actions and has a history of recovering over $1 billion for shareholders since its inception in 2002 [4].

RADNOR, Pa., Aug. 01, 2024 (GLOBE NEWSWIRE) -- The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors that a securities class action lawsuit has been filed in the United States District Court for the Southern District of California against Teradata Corporation ("Teradata") (NYSE: TDC). The action charges Teradata with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to the company's business, operations, and prospects. As ...

WHY GROSS LAW FIRM? The Gross Law Firm is a nationally recognized class action law firm, and our mission is to protect the rights of all investors who have suffered as a result of deceit, fraud, and illegal business practices. The Gross Law Firm is committed to ensuring that companies adhere to responsible business practices and engage in good corporate citizenship. The firm seeks recovery on behalf of investors who incurred losses when false and/or misleading statements or the omission of material informat ...