Data and analytics software provider Teradata (NYSE:TDC) fell short of analysts' expectations in Q2 CY2024, with revenue down 5.6% year on year to $436 million. It made a non-GAAP profit of $0.64 per share, improving from its profit of $0.48 per share in the same quarter last year.
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Teradata (TDC) Q2 CY2024 Highlights:
Revenue: $436 million vs analyst estimates of $447.3 million (2.5% miss)
Adjusted Operating Income: $96 million vs analyst estimates of $73.23 million (31.1% beat)
EPS (non-GAAP): $0.64 vs analyst estimates of $0.48 (33.5% beat)
Gross Margin (GAAP): 60.8%, up from 59.7% in the same quarter last year
Free Cash Flow of $39 million, up 85.7% from the previous quarter
Annual Recurring Revenue: $1.47 billion at quarter end, down 3.8% year on year
Billings: $389 million at quarter end, up 9% year on year
Market Capitalization: $2.98 billion
“Teradata delivered another quarter of strong growth in Cloud ARR, increasing 32% in constant currency, and we maintained our robust 123% net expansion rate in the cloud,” said Steve McMillan, President and Chief Executive Officer, Teradata.
Part of point-of-sale and ATM company NCR from 1991 to 2007, Teradata (NYSE:TDC) offers a software-as-service platform that helps organizations manage their data across multiple storages and analyze it.
Data Infrastructure
Generating insights from system level data is an increasing priority for most businesses, but to do so requires connecting and analyzing piles of data stored and siloed in separate databases. This is the demand driver for cloud based data infrastructure software providers, who can more readily integrate, distribute and process information vs. legacy on-premise software providers.
Sales Growth
As you can see below, Teradata's revenue has declined over the last three years, shrinking from $491 million in Q2 2021 to $436 million this quarter.
Teradata's revenue was down again this quarter, falling 5.6% year on year.
Looking ahead, analysts covering the company were expecting sales to grow 2.1% over the next 12 months before the earnings results announcement.
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