Teradata Misses Revenue Estimates, Stock Drops 12.5%
Key Metrics:
- Revenue: $409 million (missed estimates by $6.3 million, 1.5%)
- Adjusted EPS: $0.53 (beat estimates by $0.10, 22.1%)
- Revenue Guidance for Q1 2025: $432.5 million (below estimates by $6.8 million, 1.6%)
Company Overview:
Teradata provides a SaaS platform for data management and analytics. The company focuses on integrating, distributing, and processing data from multiple storage sources.
Sales Growth:
Teradata's sales have declined at a 3% annual rate over the past three years, indicating inconsistent demand generation. The company reported a 10.5% year-over-year revenue decline in Q4 2024.
Annual Recurring Revenue (ARR):
Teradata's ARR was $609 million in Q4 2024, with a 61.2% year-over-year decline. This suggests that the recurring revenue portion of the business is growing slower than other revenue streams.
Customer Acquisition Efficiency:
Teradata's customer acquisition cost (CAC) payback period is 52.6 months, indicating a relatively expensive and competitive market.
Key Takeaways:
* Teradata missed Wall Street's revenue estimates and provided underwhelming guidance for Q1 2025.
* The company faces challenges in generating consistent demand and increasing recurring revenue.
* The stock price dropped significantly after the earnings release, presenting a potential buying opportunity.
Research Report:
For a comprehensive analysis of Teradata's financial performance and investment potential, access our free full research report here: [Research Report Link]