Loading...
•
Mar 31
Teradata Q1 2025 Earnings Report
Teradata reported its first quarter 2025 financial results, meeting its outlook for all key metrics due to disciplined execution and accelerating innovation.
Key Takeaways
Teradata announced its first quarter 2025 financial results, with public cloud ARR increasing by 15% to $606 million. Total revenue decreased by 10% to $418 million, while GAAP diluted EPS was $0.45 and non-GAAP diluted EPS was $0.66.
Public cloud ARR increased by 15% as reported and 16% in constant currency from the prior year period, reaching $606 million.
GAAP operating margin improved to 15.8%, up 550 bps year-over-year, and non-GAAP operating margin was 21.8%, up 270 bps year-over-year.
GAAP diluted EPS was $0.45, and non-GAAP diluted EPS was $0.66.
Cash from operations was $8 million and free cash flow was $7 million for the quarter.
Teradata
Teradata
Teradata Revenue by Segment
Revenue by Segment
Recurring Revenue
CapyFin.comPerpetual Software, Hardware & Other Revenue
CapyFin.comConsulting Services Revenue
CapyFin.com Forward Guidance
For the second quarter of 2025, Teradata expects recurring revenue to be in the range of -5% to -7% year-over-year in constant currency, and total revenue in the range of -7% to -9% year-over-year in constant currency. GAAP diluted EPS is expected to be between $0.02 and $0.06, and non-GAAP diluted EPS between $0.37 and $0.41. For the full-year 2025, total revenue range is expanded to -4% to -7% year-over-year in constant currency, and GAAP diluted EPS is increased to be in the range of $1.06 to $1.16. Teradata reaffirms public cloud ARR growth of 14% to 18% year-over-year, total ARR in the range of flat to 2% year-over-year, recurring revenue in the range of -3% to -5% year-over-year, non-GAAP diluted EPS between $2.15 and $2.25, cash flow from operations of $270 million to $300 million, and free cash flow of $250 million to $280 million.
Positive Outlook
- Public cloud ARR growth of 14% to 18% year-over-year in constant currency reaffirmed for full-year 2025.
- Total ARR expected to be flat to 2% year-over-year in constant currency for full-year 2025.
- Non-GAAP diluted EPS for full-year 2025 expected to be in the range of $2.15 to $2.25.
- Cash flow from operations for full-year 2025 expected to be $270 million to $300 million.
- Free cash flow for full-year 2025 expected to be $250 million to $280 million.
Challenges Ahead
- Recurring revenue for Q2 2025 expected to decrease by -5% to -7% year-over-year in constant currency.
- Total revenue for Q2 2025 expected to decrease by -7% to -9% year-over-year in constant currency.
- GAAP diluted EPS for Q2 2025 expected to be low, in the range of $0.02 to $0.06.
- Total revenue for full-year 2025 expected to decrease by -4% to -7% year-over-year in constant currency.
- Recurring revenue for full-year 2025 expected to decrease by -3% to -5% year-over-year in constant currency.
Revenue & Expenses
Visualization of income flow from segment revenue to net income