Q1 2024 Teradata Corp Earnings Call Transcript
Key Points
- Cloud ARR grew by 36% year-over-year in constant currency, demonstrating strong growth in the cloud sector.
- Cloud net expansion rate remained robust at 123%, indicating significant customer expansion within cloud services.
- Successfully closed one of the large deals that had slipped from 2023, showing progress in deal closure and execution.
- Introduced AI Unlimited and support for open table formats, enhancing product offerings and potentially attracting new customers.
- Maintained a strong pipeline for cloud migration and expansion, supporting future growth expectations.
- Total ARR was down 1% in constant currency, showing a slight decline in overall annual recurring revenue.
- Experienced elongated customer decision-making cycles, which could impact the speed and volume of future deal closures.
- On-prem erosion activities occurred as expected, which might affect short-term revenue even though it aligns with long-term cloud transition strategy.
- Sequential growth from migration and expansion activity in Q1 was slightly below expectations, indicating potential challenges in execution.
- Guidance for total ARR and revenue growth metrics for 2025 has been pushed out, suggesting slower than expected progress towards long-term financial goals.
Good afternoon. My name is Joe, and I will be your conference operator today. At this time, I would like to welcome everyone to the Teradata First Quarter 2024 Earnings Call. (Operator Instructions)
I would now like to hand the conference over to your host today, Mike DiLoreti, Vice President of Investor Relations and Corporate Development. You may begin your conference.
Good afternoon, and welcome to Teradata's 2024 First Quarter Earnings Call. Steve McMillan, Teradata's President and Chief Executive Officer, will lead our call today; followed by Claire Bramley, Teradata's Chief Financial Officer, who will discuss our financial results and outlook.
Our discussion today includes forecasts and other information that are considered forward-looking statements. While these statements reflect our current outlook, they are subject to a number of risks and uncertainties that could cause the actual results to differ materially. These risk factors are described in today's earnings release and in our SEC filings, including our most recent Form
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