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Sep 30, 2024

Teradata Q3 2024 Earnings Report

Teradata's cloud business grew, innovations were delivered, and new customers and partners were added.

Key Takeaways

Teradata reported its Q3 2024 financial results, with a 26% increase in public cloud ARR, reaching $570 million. GAAP EPS increased by 175% year-over-year to $0.33, and non-GAAP EPS increased by 64% to $0.69. The company is focused on accelerating growth and improving execution.

Public cloud ARR increased by 26% year-over-year, reaching $570 million.

Cloud net expansion rate was 120%.

GAAP diluted EPS increased by 175% year-over-year to $0.33.

Free cash flow increased by 92% year-over-year to $69 million.

Total Revenue
$440M
Previous year: $438M
+0.5%
EPS
$0.69
Previous year: $0.42
+64.3%
GAAP Gross Margin
60.5%
Previous year: 59.1%
+2.4%
Non-GAAP Gross Margin
61.6%
Previous year: 60.3%
+2.2%
GAAP Operating Margin
12.7%
Previous year: 6.2%
+104.8%
Gross Profit
$266M
Previous year: $259M
+2.7%
Cash and Equivalents
$348M
Previous year: $348M
+0.0%
Free Cash Flow
$69M
Previous year: $36M
+91.7%
Total Assets
$1.66B
Previous year: $1.74B
-4.7%

Teradata

Teradata

Teradata Revenue by Segment

Forward Guidance

For the fourth quarter of 2024, GAAP diluted EPS is expected to be in the range of $0.09 to $0.13 per share, and non-GAAP diluted EPS is expected to be in the range of $0.40 to $0.44 per share. For the full-year 2024, Teradata increases the GAAP diluted EPS to be in the range of $1.02 to $1.06 per share and non-GAAP diluted EPS to be in the range of $2.30 to $2.34 per share.

Positive Outlook

  • GAAP diluted EPS is expected to be in the range of $0.09 to $0.13 per share for Q4 2024.
  • Non-GAAP diluted EPS is expected to be in the range of $0.40 to $0.44 per share for Q4 2024.
  • GAAP diluted EPS is expected to be in the range of $1.02 to $1.06 per share for full year 2024.
  • Non-GAAP diluted EPS is expected to be in the range of $2.30 to $2.34 per share for full year 2024.
  • Public cloud ARR growth of 18% to 22% year-over-year, in constant currency.

Challenges Ahead

  • 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.
  • Free cash flow of $270 million to $290 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income