Teradata(TDC) - 2025 Q1 - Quarterly Results

Revenue Performance - Total revenue for the first quarter was $418 million, a 10% decrease as reported and 8% in constant currency[5] - Total revenue for Q1 2025 was $418 million, a decrease of 10% compared to $465 million in Q1 2024[20] - Total ARR decreased to $1.442 billion, down 3% as reported and 2% in constant currency[5] - Recurring revenue was $358 million, an 8% decrease as reported and 6% in constant currency, representing 86% of total revenue[5] - Recurring revenue decreased by 8% to $358 million from $388 million year-over-year[20] - Consulting services revenue fell by 28% to $50 million from $69 million year-over-year[20] Profitability Metrics - GAAP operating margin improved to 15.8%, up 550 basis points year-over-year, while non-GAAP operating margin increased to 21.8%, up 270 basis points[4] - GAAP diluted EPS was $0.45, compared to $0.20 per share in the prior year, while non-GAAP diluted EPS was $0.66, up from $0.57[5] - The company reported a 15.8% operating income margin for Q1 2025, up from 10.3% in Q1 2024[20] - The tax rate for Q1 2025 was 24.1%, significantly lower than 37.5% in Q1 2024[20] Cash Flow and Liquidity - Cash flow from operations was $8 million, down from $27 million, and free cash flow was $7 million, down from $21 million[8] - Cash and cash equivalents decreased to $368 million from $420 million at the end of Q4 2024[22] Future Outlook - For full-year 2025, total revenue is expected to decline in the range of 4% to 7% year-over-year in constant currency[8] - Public cloud ARR growth is projected at 14% to 18% year-over-year in constant currency[8] - Non-GAAP diluted EPS guidance for 2025 is set at $2.15 to $2.25 per share[8] - The company plans to focus on product innovation and demand as part of its future outlook[18] Asset Management - Total assets increased to $1,752 million as of March 31, 2025, compared to $1,704 million at the end of 2024[22] Net Income - Net income for Q1 2025 was $44 million, up from $20 million in Q1 2024, representing a 120% increase[20] Gross Profit Margin - Gross profit margin for total revenue was 59.3% in Q1 2025, down from 61.1% in Q1 2024[20]