Teradata(US:TDC) Prnewswireยท2024-07-13 15:45Core Viewpoint - Teradata is facing significant challenges with its cloud Annual Recurring Revenue (ARR) growth, leading to a decline in stock price and a class action lawsuit due to alleged misleading statements regarding its business performance [2][4][7]. Financial Performance - Teradata's CFO indicated a potential delay in an eight-figure deal that could impact the company's cloud ARR, suggesting it may fall towards the low end or slightly below previous guidance [2]. - In its 2023 outlook, Teradata projected a 53% to 57% year-over-year increase in public cloud ARR and a 6% to 8% increase in total ARR [6]. - However, the actual results for 2023 showed public cloud ARR increased by only 48%, and total ARR increased by just 6%, which was at the low end of guidance [7]. Stock Market Reaction - Following the announcement of potential deal delays, Teradata's stock price dropped by $2.89, or 6.24%, from $46.29 to $43.40 per share [2]. - After the disappointing financial results for 2023 were disclosed, the stock price fell by $10.57, or 21.66%, from $48.79 to $38.22 per share [7]. Legal Actions - A securities class action lawsuit has been filed against Teradata for alleged violations of federal securities laws, claiming that the company made misleading statements that resulted in significant investor losses [4][8]. - Investors have until August 13, 2024, to seek appointment as lead plaintiffs in the class action [8].