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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.
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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