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Jun 30, 2024
Teradata Q2 2024 Earnings Report
Teradata's financial performance in Q2 2024 showed strong growth in Cloud ARR and maintained a robust net expansion rate.
Key Takeaways
Teradata reported a 32% increase in Cloud ARR in constant currency and maintained a 123% net expansion rate in the cloud. The company is taking actions to improve execution and efficiency to reaccelerate profitable growth.
Public cloud ARR of $542 million, an increase of 31% as reported and 32% in constant currency from the prior year period.
Cloud net expansion rate of 123%.
GAAP operating margin was 15.1%, up 800 basis points year-over-year.
Non-GAAP operating margin was 22.0%, up 640 basis points year-over-year.
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 third quarter of 2024, GAAP diluted EPS is expected to be in the range of $0.14 to $0.18 per share, and non-GAAP diluted EPS is expected to be in the range of $0.54 to $0.58 per share. For the full-year 2024, Teradata expects public cloud ARR growth of 28% to 32% year-over-year, in constant currency and free cash flow of $270 million to $290 million.
Positive Outlook
- Public cloud ARR growth of 28% to 32% year-over-year, in constant currency
- Total ARR in the range of -2% to -4% year-over-year, in constant currency
- Recurring revenue in the range of flat to -2% year-over-year, in constant currency
- Total revenue in the range of -2% to -4% year-over-year, in constant currency
- Cash flow from operations of $290 million to $310 million
Challenges Ahead
- Global economic environment and business conditions in general, including inflation and/or recessionary conditions
- The ability of our suppliers to meet their commitments to us
- The timing of purchases, migrations, or expansions by our current and potential customers
- The rapidly changing and intensely competitive nature of the information technology industry, the data analytics business, and artificial intelligence capabilities
- Fluctuations in our operating, capital allocation, and cash flow results
Revenue & Expenses
Visualization of income flow from segment revenue to net income