Teradata(US:TDC) Prnewswireยท2024-06-24 18:06Core Viewpoint - Teradata's financial performance for Q4 and full year 2023 fell short of expectations, leading to a significant decline in stock price and the initiation of a class action lawsuit against the company and its executives [2][3][5]. Financial Performance - Teradata reported that public cloud ARR increased by only 48% and total ARR increased by 6% for the full year 2023, which was below the previously issued expectations [13]. - The company had initially projected public cloud ARR growth in the range of 53% to 57% year-over-year and total ARR growth in the range of 6% to 8% year-over-year [2]. Stock Price Reaction - Following the announcement of disappointing financial results, Teradata's stock price fell by $10.57 per share, or 21.66%, closing at $38.22 per share on February 13, 2024 [3]. Class Action Lawsuit - A class action lawsuit has been filed against Teradata and certain officers, representing all individuals and entities that purchased Teradata securities between February 13, 2023, and February 12, 2024 [5][12]. - The lawsuit alleges that the defendants made materially false and misleading statements regarding the company's business operations and compliance policies, which led to significant losses for investors [12][14]. Strategic Challenges - Teradata's Chief Executive Officer indicated that the company faced "deal timing issues" due to the complexity of engaging with multiple decision-makers within customer organizations, which delayed the finalization of several large transactions [9]. - The company acknowledged that these delays impacted its ability to meet its ARR growth expectations for 2023 [9][12]. Business Model Evolution - Teradata has shifted its business model to engage with additional customer business units beyond just IT departments, which has resulted in longer transaction finalization times [11][12].