Teradata(US:TDC) Prnewswireยท2024-06-22 15:00Core 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 operations, leading to significant investor losses [1]. Financial Performance - Teradata's CFO disclosed at a Barclays Global Technology Conference that an "eight-figure deal" might be delayed, potentially affecting the company's cloud Annual Recurring Revenue (ARR) guidance, which led to a stock price drop of $2.89 per share, or 6.24%, on December 7, 2023 [2]. - In its fourth quarter and full year 2023 financial results announced on February 12, 2024, Teradata reported a 48% increase in public cloud ARR, which was below the previously issued guidance, and a total ARR increase of only 6%, at the low end of its guidance [10]. - The CEO attributed the disappointing results to "deal timing issues," which the company was aware of when it issued its guidance in February 2023, despite continuously reaffirming this guidance [10]. Allegations of Misconduct - The lawsuit claims that Teradata's misleading statements and omissions regarding its financial outlook and performance metrics have caused significant losses to investors [1]. - In February 2023, Teradata projected a public cloud ARR increase of 53% to 57% year-over-year and a total ARR increase of 6% to 8% year-over-year, which it failed to meet in its subsequent financial disclosures [11].