Q4 2024 Teradata Corp Earnings Call Transcript
Key Points
- Teradata Corp (TDC) delivered $609 million in Cloud ARR and $1.474 billion in total ARR, advancing their hybrid cloud platform strategy.
- The company has formed new partnerships with NVIDIA and strengthened relationships with major cloud service providers, enhancing their AI capabilities.
- Teradata Corp (TDC) expects a meaningful improvement in retention rates for both total and on-prem ARR in 2025.
- The company has introduced innovations such as the enterprise vector store and integration with Amazon Bedrock, expanding their AI and analytics offerings.
- Teradata Corp (TDC) returned 78% of free cash flow to investors through share repurchases, demonstrating strong capital return practices.
- Total ARR declined by 4% year-over-year in constant currency, indicating challenges in maintaining growth.
- The company anticipates a decline in total recurring revenue and total revenue for 2025, with consulting revenue expected to decrease in the high single-digit range.
- Cloud ARR growth is projected to be lower than some expectations, with a guidance range of 14% to 18% for 2025.
- The company faces a $20 million headwind on 2025 operating income due to currency exchange rate movements.
- Teradata Corp (TDC) expects a negative impact on free cash flow due to FX headwinds and the total ARR exit rate in 2024.
Good afternoon. My name is Joe, and I will be your conference operator today. At this time, I would like to welcome everyone to the Teradata 2024 Fourth Quarter and Full Year Earnings Call. (Operator Instructions) I would now like to hand the conference over to your host today, Chad Bennett, Senior Vice President of Investor Relations and Corporate Development. You may begin your conference.
Good afternoon, and welcome to Teradata's Fourth Quarter and Full Year 2024 Earnings Call. Steve McMillan, Teradata's President and Chief Executive Officer, will lead our call today. followed by Claire Bramley, Teradata's Chief Financial Officer, who will discuss our financial results and outlook.
Our discussion today includes forecasts and other information that are considered forward-looking statements. While these statements reflect our current outlook, they are subject to a number of risks and uncertainties that could cause actual results to differ materially. These risk factors are
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