Key Takeaways Western Digital is seeing solid cloud-driven sales growth from rising demand for high-capacity nearline HDDs. Teradata is expanding Agentic AI platforms and analytics tools to boost ARR, productivity and free cash flow.Seagate Technology has nearline capacity largely booked through 2026 on strong cloud and AI demand.The computer storage devices industry players are likely to gain from solid momentum in cloud computing, Internet of Things (IoT), auto, connected devices, virtual reality and arti ...

Teradata (NYSE:TDC) FY Conference Summary Company Overview - **Company**: Teradata Corporation - **Ticker**: NYSE:TDC - **Conference Date**: December 10, 2025 Key Points Industry Context - Teradata operates in the data analytics and cloud computing industry, focusing on providing solutions for data storage and analytics, particularly in the context of AI advancements [3][36]. Financial Performance - **Q3 Performance**: Teradata reported a solid quarter with Total Annual Recurring Revenue (ARR) in positive territory, exceeding expectations [3][15]. - **Free Cash Flow**: The company highlighted strong Free Cash Flow and Earnings Per Share (EPS) growth, indicating improved financial health [3][12]. - **Stock Valuation**: The stock was perceived as undervalued prior to Q3, with a significant positive reaction following the quarter's results [4][5]. Growth Strategy - **Focus on Total ARR**: There has been a shift in focus from Cloud ARR to Total ARR, emphasizing the importance of overall growth rather than just cloud migration [19][21]. - **Customer Engagement**: Teradata aims to expand its existing customer base, particularly within the Global 1000 companies, leveraging AI as a growth driver [30][31]. - **Product Innovation**: Continued investment in R&D is prioritized to drive product innovation and support growth in both cloud and on-premise solutions [16][18]. Market Dynamics - **Hybrid Solutions**: Teradata competes in both on-premise and cloud markets, offering hybrid solutions that cater to diverse customer needs [35][40]. - **AI Integration**: The company is positioning itself as a key player in the AI landscape, emphasizing the importance of data quality and context in AI applications [36][38]. Operational Focus - **Cost Management**: Teradata is focused on optimizing its cost structure to improve margins and Free Cash Flow, which is seen as essential for supporting stock value [12][14]. - **Sales Strategy**: The sales force is evolving to better articulate use cases around AI, aiming to enhance customer engagement and drive ARR growth [50][54]. Future Outlook - **M&A Opportunities**: Teradata is open to pursuing mergers and acquisitions, particularly in technology sectors that can accelerate its AI roadmap [60][61]. - **Shareholder Value**: The company is committed to driving shareholder value through a balanced approach of growth and margin improvement, with a focus on sustainable financial practices [56][58]. Additional Insights - **Retention Rates**: Improved retention rates have been observed, which is expected to contribute positively to ARR growth [45][46]. - **Market Positioning**: Teradata's historical strength in data management positions it well to capitalize on the growing demand for AI-driven solutions [62][68]. This summary encapsulates the key insights from Teradata's FY conference, highlighting the company's financial performance, growth strategies, market dynamics, and future outlook in the context of the evolving data analytics landscape.

Teradata Conference Call Summary Company Overview - **Company**: Teradata (NYSE:TDC) - **Event**: UBS Global Technology and AI Conference - **Date**: December 03, 2025 Key Points Company and Industry Insights - Teradata has stabilized its business and is experiencing a positive cadence of performance after a period of turnover in leadership [4][5][6] - The company is focusing on transitioning to a cloud business model and enhancing its AI capabilities, referred to internally as "Teradata 3.0" [5][6] AI Integration and Opportunities - AI is becoming increasingly integrated into Teradata's pipeline, with approximately one-third of deals involving AI [7] - The company is on track to complete around 150 proof of concepts (POCs) by the end of the year, indicating strong traction in AI discussions with customers [7][8] - Key AI use cases include anti-money laundering, fraud detection, and customer experience enhancements, particularly in financial services and retail [8][9][10] Product Portfolio and Monetization - Teradata's AI product offerings include Enterprise Vector Store, MCP server, and Agent Builder, with a focus on expanding the use of the Teradata platform [11][12] - The company aims to monetize these offerings through traditional cross-sell activities and by increasing workflow capacity as AI solutions are adopted [11][12] Services Business and AI Services Group - The AI Services group was launched to engage customers in developing AI solutions, serving as a natural extension of the POC work [13][14] - The consulting business is transitioning from cloud migration to AI services, with expectations of stabilizing revenue and improving margins [19][20] Cloud Migration Dynamics - The conversation around cloud migration has shifted towards AI investments, with customers considering both on-premises and cloud solutions based on workload requirements [22][23] - Teradata offers hybrid solutions, allowing customers to choose their preferred deployment method while addressing concerns around security and compliance [23][25] Competitive Landscape - The competitive environment is stabilizing, with a shift in focus from cloud migration to AI solutions, which may benefit Teradata's market position [39][40] - The company is leveraging its existing data estate and industry data models to enhance its competitive advantage in AI discussions [40] Financial Performance and Future Outlook - Teradata has successfully returned to positive annual recurring revenue (ARR) growth, with expectations for continued growth in 2026 [67][69] - The company is focused on maintaining cost efficiency, protecting margins, and enhancing free cash flow while investing in product innovation [68][69] Shareholder Value and Capital Allocation - Teradata has committed to using 50% of its free cash flow for share repurchases, with a renewed program of $500 million for stock buybacks [57][58] - The company is open to M&A opportunities that could accelerate its product roadmap, focusing on technology tuck-in deals [59][60] Conclusion - Teradata is positioned for growth through its focus on AI integration, a stable services business, and a commitment to shareholder value through share repurchases and potential M&A activity. The company aims to leverage its unique capabilities in the evolving landscape of data management and AI solutions [69][70]

Financial Data and Key Metrics Changes - Non-GAAP earnings per share for Q3 was $0.72, exceeding expectations by $0.17 [26] - Total revenue was $416 million, down 5% year-over-year, but above the high end of the outlook due to higher recurring revenue [24] - Total ARR grew 1% as reported and flat in constant currency, marking the second consecutive quarter of positive growth [23][22] Business Line Data and Key Metrics Changes - Cloud ARR grew 11% on both an as-reported and constant currency basis, with a cloud net expansion rate of 109% [23][24] - Recurring revenue was $366 million, down 2% year-over-year, but represented 88% of total revenue, up from 85% in Q3 last year [24] - Services revenue was $47 million, consistent with recent performance, transitioning from migration projects to AI services [24] Market Data and Key Metrics Changes - The company was named a leader in the Forrester Wave data management for analytics platforms, highlighting its suitability for hybrid cloud deployments [9] - Interest in AI, particularly agentic AI, is growing across industries, with most companies still in early stages of deployment [5][6] Company Strategy and Development Direction - The company is shifting from classic EDW to autonomous AI and knowledge platforms, focusing on hybrid environments [5][6] - Investments are being prioritized to capitalize on opportunities as a leading AI and knowledge platform for autonomous enterprises [29] - The company aims to provide a trusted data foundation that enhances AI performance and governance [17][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the return to total ARR growth and expects this trend to continue into 2026 [20][22] - The company is focusing on cost efficiencies and operational improvements to drive free cash flow growth [29][58] - Management noted that the hybrid deployment model is becoming increasingly important for customers [32][48] Other Important Information - The company launched several new AI services and capabilities, including the Teradata Agent Builder and enhancements to Clearscape Analytics [10][11] - The company is on track to complete over 150 AI engagements with customers this year [12] Q&A Session Summary Question: Insights on cloud ARR performance - Management indicated that cloud ARR performance met expectations, with a nuanced decision-making process for customers regarding deployment options [31][32] Question: Confidence in future free cash flow growth - Management attributed confidence in free cash flow growth to ARR growth and operational efficiency initiatives [34][35] Question: AI influence on pipeline and competitive win rates - Management noted an increase in AI-influenced pipeline and highlighted the effectiveness of their technology platform for AI workloads [36][37] Question: Guidance consistency and leading indicators - Management confirmed a consistent approach to guidance, utilizing various KPIs to assess outlook [38] Question: Competitive advantages in the AI space - Management emphasized patented technology and hybrid capabilities as key differentiators in the competitive landscape [40][41][42] Question: Services gross margin improvement - Management explained that improvements in services gross margin were due to right-sizing the organization and aligning costs with revenue [44][45] Question: Trajectory of cloud ARR and on-prem growth - Management indicated stabilization in on-prem growth and an expectation for continued expansion in cloud ARR [47][48] Question: Impact of federal shutdown on revenues - Management confirmed no impact from the federal shutdown on revenues [58] Question: Future free cash flow margin potential - Management highlighted operational efficiency measures that will benefit future margin and cash flow [59]

Teradata (TDC) 2025 Conference Summary Company Overview - **Company**: Teradata (TDC) - **Event**: Citi Tech Conference, September 4, 2025 - **Speaker**: John Ederer, CFO Key Points Company and Industry Context - Teradata is undergoing a business model transformation towards cloud and subscription services, with a focus on AI and data modernization [5][9][10] - The software market is experiencing challenges, particularly in application sectors, but data-related services are showing healthy results [12][13] Financial Performance and Strategy - FY '24 faced challenges, but the company is stabilizing in FY '25 and setting up for growth in FY '26 and beyond [9][11] - Priorities include driving a profitable growth strategy and improving the "Rule of 40" metric, which combines growth rate and profit margin [10][11] - The company aims to achieve durable free cash flow growth, with guidance indicating flat operating margins year-over-year despite headwinds [41][42] AI and Market Trends - Increased demand for AI is reshaping the market, leading to a natural rebalancing of IT investments [14][15] - Teradata is seeing a shift in customer demand towards secure and efficient AI deployment at scale, which bodes well for its business [15][16] - The company is experiencing enthusiasm around new product announcements, such as Enterprise Vector Store and AI Factory, which are positively influencing the sales pipeline [18][19] Customer Engagement and Retention - Improved customer engagement and retention strategies are yielding better results, with a focus on early identification of risk factors [25][26] - The company has seen a reduction in migration dependence, indicating a shift towards hybrid environments where customers can invest in AI without full migration [29][30] Competitive Landscape - Teradata is positioning itself uniquely with a hybrid solution that combines on-premise and cloud capabilities, appealing to customers' needs for efficiency and scalability [62][64] - The competitive landscape includes players like Databricks and Snowflake, but Teradata's focus on hybrid solutions is seen as a differentiator [62][66] Capital Allocation and Shareholder Returns - The company is committed to returning 50% of its free cash flow to shareholders through stock buybacks, indicating confidence in its financial health [79][80] - There is a recognition of the need to balance growth opportunities with shareholder returns [79] Organizational Changes - Recent restructuring efforts have optimized the marketing organization and improved alignment between product development and sales, enhancing overall execution [40][55] - New leadership has been brought in to drive improvements in go-to-market strategies and customer engagement [54][55] Future Outlook - The company is optimistic about returning to positive growth and achieving double-digit growth in the future, driven by AI and hybrid platform opportunities [37][38] - Continued investments in product development and market strategies are essential for long-term growth and shareholder value [46][47] Additional Insights - Teradata is actively pursuing new logo opportunities in both on-premise and cloud environments, indicating a balanced approach to market expansion [72][73] - The company is leveraging AI internally to improve efficiencies, although quantifying specific savings remains challenging [51][52] This summary encapsulates the key insights and strategic directions discussed during the Teradata conference, highlighting the company's focus on growth, AI integration, and shareholder value.

Financial Data and Key Metrics Changes - Total ARR for Q2 2025 was $1,490,000,000, representing a 2% year-over-year increase as reported [6] - Total revenue was $408,000,000, down 6% year-over-year as reported and 7% in constant currency [24] - Non-GAAP diluted earnings per share was $0.47, exceeding the top end of the outlook range [26] - Free cash flow generated in the quarter was $39,000,000, flat year-over-year [27] Business Line Data and Key Metrics Changes - Cloud ARR grew 17% reported and 15% in constant currency, with a net expansion rate of 112% [23] - Services revenue was $51,000,000, down 19% year-over-year as reported and 20% in constant currency [25] - Recurring revenue as a percentage of total revenue increased to 87%, up from 84% in Q2 last year [25] Market Data and Key Metrics Changes - The company experienced better deal execution in Q2, with some deals closing earlier than expected [7] - The cloud segment showed solid growth, with a 15% constant currency growth rate aligning with full-year guidance of 14% to 18% [8] Company Strategy and Development Direction - The company is focusing on integrating its marketing function into go-to-market and product organizations to enhance operational efficiency [10] - New executive leadership has been brought on to support strategic execution and drive long-term returns for investors [8] - The company is positioning itself to leverage AI as a value driver, emphasizing the importance of strong data management capabilities [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year targets due to improved execution and retention rates [6][22] - The company anticipates a modest sequential decline in total ARR from Q2 to Q3 but reaffirms its full-year guidance for total ARR and cloud ARR [29] - Management noted that the interest in AI and GenAI is driving growth across the industry, with a focus on hybrid deployment options [11] Other Important Information - The company announced new partnerships, including one with Fivetran to simplify data integration for AI insights [21] - The introduction of the Teradata AI factory aims to bring AI and machine learning capabilities on-premises, enhancing customer control over AI deployments [12] Q&A Session Summary Question: What does the company see as the opportunity for greater operating leverage and free cash flow? - Management indicated that optimizing costs and returning to growth are key drivers for future free cash flow growth [36][38] Question: What is the outlook for demand and client engagement moving forward? - Management highlighted solid execution and the importance of AI workloads in driving future growth [41][43] Question: What factors contributed to the outperformance in ARR for Q2? - The outperformance was attributed to better deal execution and customer demand for the Teradata platform [46][48] Question: How does the company view the impact of recent R&D tax changes? - Management acknowledged potential positive impacts on cash flow from the recent R&D tax changes [78] Question: How is the company monitoring success in AI initiatives? - Success is defined through partnerships, proof of concept engagements, and the opportunity pipeline influenced by AI workloads [73][75]

Core Insights - Snowflake (SNOW) and Teradata (TDC) are significant players in the cloud analytics industry, with Snowflake focusing on a cloud-based platform for data management and analysis, while Teradata offers a hybrid cloud platform that integrates data analytics and management for enterprise workloads [1][2] Market Overview - The global cloud analytics market was valued at $35.7 billion in 2024 and is projected to reach $118.5 billion by 2029, growing at a CAGR of 27.1%, indicating a robust opportunity for both SNOW and TDC as businesses increase investments in data-driven decision-making and AI analytics [2] Teradata (TDC) Performance - TDC has experienced a 16% year-over-year growth in public cloud Annual Recurring Revenues (ARR), reaching $606 million in Q1 2025, with cloud services now constituting 42% of total ARR, up from 35% a year ago [3][10] - TDC launched the Enterprise Vector Store in March 2025, enhancing its AI capabilities and enabling real-time insights from diverse data types [4] - In May 2025, TDC partnered with Fivetran to streamline data integration from over 700 sources into VantageCloud, facilitating low-code integration and accelerating AI adoption [5] - TDC completed the IRAP assessment at the PROTECTED level, enhancing its credibility in sensitive industries and public sector [6] - TDC's partnerships with major cloud providers and global system integrators bolster its enterprise reach and cloud ecosystem [7] Snowflake (SNOW) Performance - SNOW reported a 26% year-over-year growth in product revenues, with 606 customers generating over $1 million in trailing 12-month revenue as of April 30, 2025 [8][10] - The total customer base for SNOW increased to 11,578, including 754 of the Forbes Global 2000, contributing significantly to its revenue growth [9] - SNOW has launched several new tools, including Cortex AI+SQL and SnowConvert, to enhance cloud modernization and AI-driven workflows for enterprise users [11] - Leading enterprises like Canva utilize SNOW's AI Data Cloud for personalized user experiences, indicating strong product-market fit [12] Stock Performance and Valuation - Year-to-date, SNOW shares have increased by 36.8%, while TDC shares have decreased by 28.2%, with SNOW's performance driven by strong AI product momentum and customer growth [13] - SNOW shares are currently considered overvalued with a Value Score of F, while TDC shares are viewed as undervalued with a Value Score of B, trading at 14.49X and 1.3X forward Price/Sales respectively [16] - The Zacks Consensus Estimate for SNOW's fiscal 2026 earnings is $1.06 per share, reflecting a 27.71% year-over-year increase, while TDC's estimate for 2025 is $2.16 per share, indicating a 10.7% year-over-year decrease [19] Investment Outlook - Both SNOW and TDC are well-positioned in the enterprise data and cloud analytics space, but TDC is currently favored due to its strong cloud ARR growth, expanding AI capabilities, and strategic partnerships [20][21] - TDC's hybrid cloud architecture offers greater flexibility for complex enterprise environments, giving it a competitive edge [21] - TDC holds a Zacks Rank 2 (Buy), while SNOW has a Zacks Rank 3 (Hold), suggesting a stronger investment case for TDC at this time [22]