Teradata (TDC) Reports Q3 Earnings: What Key Metrics Have to Say

Core Insights - Teradata reported $440 million in revenue for Q3 2024, a year-over-year increase of 0.5% and an EPS of $0.69 compared to $0.42 a year ago, exceeding Zacks Consensus Estimates for revenue and EPS [1] - The company achieved a revenue surprise of +5.02% and an EPS surprise of +23.21% compared to analyst expectations [1] Financial Performance Metrics - Annual recurring revenue (ARR) totaled $1.48 billion, matching the average estimate [3] - Public Cloud ARR was $570 million, below the average estimate of $598.02 million [3] - Revenue from perpetual software licenses and hardware was $7 million, exceeding the estimated $3.79 million [3] - Recurring revenue reached $372 million, surpassing the average estimate of $347.33 million, reflecting a year-over-year increase of +3.3% [3] - Revenue from consulting services was $61 million, below the estimated $70.18 million [3] - Gross profit from consulting services was $3 million, significantly lower than the average estimate of $7.84 million [3] - Gross profit from recurring revenue was $261 million, exceeding the average estimate of $243.66 million [3] Stock Performance - Teradata shares have returned +9.5% over the past month, outperforming the Zacks S&P 500 composite's +0.4% change [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [4]