Teradata Corp

Latest Results (06.10.2025):

Teradata Corp reported strong financial performance for the fourth quarter and full year of 2023, demonstrating significant growth in its cloud services and maintaining robust profitability. The company achieved a substantial increase in Annual Recurring Revenue (ARR) and delivered impressive free cash flow, reflecting its strategic focus on cloud-based solutions and shareholder returns.

Cloud Revenue Growth

In the fourth quarter of 2023, Teradata Corp's public cloud ARR reached $528 million, marking a 48% increase year-over-year both as reported and in constant currency. This growth underscores the company's successful expansion in its cloud offerings, positioning Teradata as a key player in the evolving AI-driven business landscape.

Revenue and Profitability

Total ARR for the fourth quarter increased to $1.570 billion, a 6% rise compared to the same period in 2022. Recurring revenue grew by 4% to $372 million, while total revenue saw a modest 1% increase to $457 million. The company reported a GAAP gross margin of 60.8% and a non-GAAP gross margin of 61.9%, indicating improved operational efficiency.

Operating Income and Earnings

Teradata achieved a GAAP operating income of $47 million and a non-GAAP operating income of $89 million in the fourth quarter. Non-GAAP diluted earnings per share (EPS) were $0.56, up from $0.35 in the previous year, showcasing enhanced profitability and effective cost management.

Cash Flow and Shareholder Returns

For the full year 2023, Teradata generated $375 million in cash from operations and $355 million in free cash flow. The company repurchased $308 million in shares, resulting in an 87% return of free cash flow to shareholders. This strong cash flow performance highlights Teradata’s commitment to delivering ongoing shareholder value.

Outlook for 2024

Looking ahead to 2024, Teradata projects continued growth with public cloud ARR expected to increase by 35% to 41% year-over-year in constant currency. The company aims to maintain its free cash flow return target at 75% and is on track to achieve over one billion dollars of Cloud ARR by 2025, reaffirming its strategic focus on cloud-based solutions and sustainable growth.