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Teradata
🇺🇸 NYSE:TDC
•
Dec 31, 2024

Teradata Q4 2024 Earnings Report

Key Takeaways

Teradata's Q4 2024 revenue declined by 11% year-over-year, with a total of $409 million. Recurring revenue comprised 86% of total revenue. GAAP EPS improved to $0.26 from a loss of $0.07 in Q4 2023, while non-GAAP EPS decreased slightly to $0.53 from $0.56. Free cash flow was $148 million, down from $168 million.

Total Revenue
$409M
Previous year: $457M
-10.5%
EPS
$0.53
Previous year: $0.56
-5.4%
GAAP Gross Margin
59.4%
Previous year: 60.8%
-2.3%
Non-GAAP Gross Margin
60.9%
Previous year: 61.9%
-1.6%
GAAP Operating Margin
9.5%
Previous year: 10.3%
-7.8%
Gross Profit
$243M
Previous year: $278M
-12.6%
Cash and Equivalents
$420M
Previous year: $486M
-13.6%
Free Cash Flow
$148M
Previous year: $168M
-11.9%
Total Assets
$1.7B
Previous year: $1.87B
-9.0%

Teradata Revenue

Teradata EPS

Teradata Revenue by Segment

Forward Guidance

Teradata expects flat to 2% ARR growth for FY25, with GAAP EPS between $1.05 and $1.15, and non-GAAP EPS between $2.15 and $2.25. Free cash flow is projected between $250M and $280M.

Positive Outlook

  • Public Cloud ARR expected to grow by 14% to 18% year-over-year.
  • Total ARR expected to be flat to 2% growth year-over-year.
  • Strong focus on AI-driven cloud solutions.
  • Free cash flow forecasted to remain strong at up to $280M.
  • Continued transition towards a higher mix of recurring revenue.

Challenges Ahead

  • Total revenue expected to decline by 4% to 6% year-over-year.
  • Recurring revenue forecasted to decline by 3% to 5%.
  • GAAP EPS projected to decline compared to FY24.
  • Lower consulting services revenue continues to impact total revenue.
  • Macroeconomic uncertainties may affect cloud adoption rates.

Revenue & Expenses

Visualization of income flow from segment revenue to net income