Teradata Corp ( (TDC) ) has released its Q4 earnings. Here is a breakdown of the information Teradata Corp presented to its investors.
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Teradata Corp is a leading company in the data analytics industry, offering cloud analytics and data platform solutions for AI, enabling businesses to make informed decisions and drive innovation. Teradata recently announced its financial results for the fourth quarter and full year 2024, highlighting a strong performance in public cloud ARR, which increased by 15% year-over-year, and a significant improvement in GAAP diluted EPS, which rose by 90% year-over-year. The company also noted a decrease in total ARR by 6% and a decline in total revenue by 5% compared to the previous year.
Key financial metrics revealed that while public cloud ARR showed strong growth, total ARR and recurring revenue saw a decline. The GAAP gross margin decreased slightly to 59.4% for the fourth quarter, while the GAAP operating margin also saw a slight reduction. Despite these declines, Teradata reported a substantial increase in GAAP and non-GAAP diluted EPS for the full year, reaching $1.16 and $2.42 respectively, indicating improved profitability.
Strategically, Teradata announced a transition in its CFO position, with Claire Bramley leaving and Charles Smotherman stepping in as interim CFO. This move is expected to ensure a smooth leadership transition, leveraging Smotherman’s extensive experience in financial leadership. The company also highlighted its advancements in AI technology and upcoming innovations aimed at enhancing hybrid AI environments.
Looking ahead, Teradata’s management is optimistic about 2025, projecting public cloud ARR growth between 14% to 18% year-over-year and maintaining a strategic focus on cloud and AI innovations. The company expects to build on its current momentum and continue offering cutting-edge solutions to its customers.
