Teradata Corp (NYSE:TDC)

$ 29.76 0.31 (1.05%) Market Cap: 2.85 Bil Enterprise Value: 3.06 Bil PE Ratio: 35.43 PB Ratio: 22.89 GF Score: 68/100

Q3 2024 Teradata Corp Earnings Call Transcript

Nov 04, 2024 / 09:30PM GMT

Release Date Price: $33.38 (+0.45%)

Transcript 10-Q8-K

Key Points

Positve

Teradata Corp (TDC) reported a 26% year-over-year growth in cloud ARR for Q3, with a solid cloud net expansion rate of 120%.
The company achieved a significant increase in profitability, with non-GAAP earnings per share rising to $0.69 from $0.42 in Q3 2023.
Free cash flow nearly doubled year-over-year, reaching $69 million compared to $36 million in Q3 2023.
Teradata Corp (TDC) received recognition from Ventana Research as a leader in trusted AI and top-rated analytic data platform company.
The company announced several innovations, including enhancements to ClearScape Analytics and integration with NVIDIA's AI-accelerated computing platform, aimed at boosting AI and ML capabilities.

Negative

Teradata Corp (TDC) lowered its 2024 cloud ARR growth outlook to 18% to 22% due to a shift in customer cloud migration strategies.
The company is experiencing a change in customer behavior, with large transformational deals being broken down into smaller, staged migrations.
There is a noted deceleration in the cloud net expansion rate, particularly impacted by the healthcare vertical and European business.
The company is facing challenges with elongated sales cycles and cloud migration timing dynamics, which could impact future growth.
Teradata Corp (TDC) anticipates further deceleration in the cloud net expansion rate into Q4, influenced by the mix of migrations versus expansions.

Operator

Good afternoon. My name is Cameron, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Teradata third-quarter 2024 earnings call. (Operator Instructions)

I would now like to hand the conference over to your host today, Chad Bennett, Senior Vice President of Investor Relations and Corporate Development. You may begin your conference.

Chad Bennett

Teradata Corp - Senior Vice President, Investor Relations & Corporate Development

Good afternoon, and welcome to Teradata's 2024 third-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 actual results to differ materially. These risk factors

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