TERADATA CORP /DE/0000816761false00008167612025-02-072025-02-07

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
__________________
 
FORM 8-K
__________________
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
 
Date of Report (date of earliest event reported): February 7, 2025
 

 
TERADATA CORPORATION
(Exact name of registrant as specified in its charter)

Commission File Number 001-33458
 
Delaware75-3236470
(State or other jurisdiction of
incorporation or organization)		(I.R.S. Employer
Identification No.)
 
17095 Via Del Campo
San Diego, California 92127

(Address of principal executive offices and zip code)
 
Registrant’s telephone number, including area code: (866) 548-8348
 
N/A
(Former name or former address, if changed since last report)
 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, $0.01 par valueTDCNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company  ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐


Item 2.02    Results of Operations and Financial Condition.
Teradata Corporation ("Teradata" or the "Company") is furnishing the following information as required under Item 2.02 “Results of Operations and Financial Condition” of Form 8-K. Such information, including Exhibit 99.1 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934.
On February 11, 2025, the Company issued a press release setting forth its fourth quarter and full-year 2024 operating results as well as current outlook estimates for the first quarter of 2025 and for the full-year 2025 (the "Earnings Press Release"). A copy of the Earnings Press Release is attached hereto as Exhibit 99.1 and hereby incorporated by reference.

The Company also posted supplemental material dated February 11, 2025, on the Investor Relations page of its website at investor.teradata.com. Except as specifically noted herein, information on the Company’s website is not, and will not be deemed to be, a part of this Current Report on Form 8-K or incorporated into any other filings the Company may make with the Securities and Exchange Commission.

Item 5.02    Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
(b)    On February 7, 2025, Claire Bramley notified the Company of her decision to resign from her position as Chief Financial Officer of the Company (including as its principal financial officer and principal accounting officer) to take a Chief Financial Officer position with another company that is outside of the Company’s industry. Ms. Bramley’s last day with the Company will be March 31, 2025. Her resignation is not due to any disagreement with the Company on any matter relating to the Company’s financial reporting or the operations, policies, or practices of the Company. The Company is performing an executive search to identify a permanent replacement for Ms. Bramley.

(c)    On February 10, 2025, the Board elected Charles Smotherman, the Company’s Senior Vice President, Chief Accounting Officer, as the Company’s interim Chief Financial Officer, effective as of March 24, 2025 (the “Appointment Effective Date”). Mr. Smotherman will also serve, on an interim basis, as the Company’s principal financial officer and principal accounting officer beginning on the Appointment Effective Date.

Mr. Smotherman, age 59, has served in various leadership roles in the Company’s finance department, most recently as Senior Vice President, Chief Accounting Officer, a position he has held since 2019. Mr. Smotherman has over 25 years of accounting and finance leadership experience. He joined the Company in 2009 as Assistant Controller and was promoted to Corporate Controller in 2010, a position he held until 2019. Mr. Smotherman is a certified public accountant and holds a B.S. in Accounting from Auburn University.

There are no family relationships between Mr. Smotherman and any director or executive officer of the Company, and no arrangements or understandings between Mr. Smotherman and any other person pursuant to which he was designated to serve as interim Chief Financial Officer. Mr. Smotherman is not a party to any current or proposed transaction with the Company for which disclosure is required under Item 404(a) of Regulation S-K.  The information required by Item 5.02(c)(3) of Form 8-K will be provided once such information is determined. A copy of the Earnings Press Release is attached hereto as Exhibit 99.1 and the items disclosing the transitions covered by this Item 5.02 are hereby incorporated by reference.



Item 9.01        Financial Statements and Exhibits.
(d)    Exhibits:
The following exhibits are attached with this current report on Form 8-K:
Exhibit No.Description
104
Cover Page Interactive Data (embedded within the Inline XBRL document).


Safe Harbor Statement

This Current Report on Form 8-K contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934. Forward-looking statements generally relate to opinions, beliefs, and projections of expected future financial and operating performance, business trends, liquidity, and market conditions, among other things. These forward-looking statements are based upon current expectations and assumptions and often can be identified by words such as “expect,” “strive,” “looking ahead,” “outlook,” “guidance,” “forecast,” “anticipate,” “continue,” “plan,” “estimate,” “believe,” “focus,” “see,” “commit,” “should,” “project,” “will,” “would,” “likely,” “intend,” “potential,” or similar expressions. All statements, other than statements of historical facts, included in this Current Report on Form 8-K which address activities, events or developments that the Company expects or anticipates will or may occur in the future, including statements about our 2025 first quarter and full year 2025 financial outlook and the transition of our Chief Financial Officer described herein and in the accompanying press release are forward-looking statements. These forward-looking statements are based upon current expectations and assumptions and involve risks and uncertainties that could cause the Company’s actual results to differ materially. In addition to the factors discussed in this Form 8-K filing, other risks and uncertainties could affect the Company’s future results, and could cause actual results to differ materially from those expressed in such forward-looking statements, including those relating to: the global economic environment and business conditions in general, including inflation and/or recessionary conditions; the ability of our suppliers to meet their commitments to us; the timing of purchases, migrations, or expansions by our current and potential customers, including our ability to retain customers; the rapidly changing and intensely competitive nature of the information technology industry, the data analytics business, and artificial intelligence capabilities; fluctuations in our operating, capital allocation, and cash flow results; our ability to execute and realize the anticipated benefits of our refreshed brand, business transformation program or restructuring, sales and operational execution initiatives, and cost saving initiatives, including the 2024 restructuring actions; risks inherent in operating in foreign countries, including sanctions, foreign currency fluctuations, and/or acts of war; risks associated with data privacy, cyberattacks and maintaining secure and effective products for our customers, as well as, internal information technology and control systems; the timely and successful development, production or acquisition, availability and/or market acceptance of new and existing products, product features and services, including for artificial intelligence; tax rates; turnover of our workforce and the ability to attract and retain skilled employees; protecting our intellectual property; availability and successful execution of new alliance and acquisition opportunities; subscription arrangements that may be cancelled or fail to be renewed; the impact on our business and financial reporting from the implementation of a new ERP system and changes in accounting rules; and other factors described from time to time in Teradata’s filings with the U.S. Securities and Exchange Commission, including its most recent annual report on Form 10-K, and subsequent quarterly reports on Forms 10-Q or current reports on Forms 8-K, as well as Teradata’s annual report to stockholders. Teradata does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.



SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
TERADATA CORPORATION
Date: February 11, 2025By:/s/ Margaret A. Treese
Margaret A. Treese
Chief Legal Officer & Corporate Secretary






Exhibit 99.1
image.jpg
INVESTOR CONTACT
Chad Bennett
chad.bennett@teradata.com


MEDIA CONTACT
Jennifer Donahue
jennifer.donahue@teradata.com
                

Teradata Reports Fourth Quarter and Full-Year 2024 Financial Results

•Fourth quarter public cloud ARR of $609 million, an increase of 15% as reported and 18% in constant currency from the prior year period(1)
•Full-year GAAP diluted EPS was $1.16, up 90% year-over-year
•Full-year non-GAAP diluted EPS was $2.42, up 17% year-over-year(2)
•Full-year cash from operations of $303 million and free cash flow of $277 million(3)
•Announces CFO transition plan

SAN DIEGO – February 11, 2025 -- Teradata (NYSE: TDC) today announced its fourth quarter and full year 2024 financial results.

“In 2024, Teradata took decisive actions to improve execution, and met our guidance ranges for both Cloud and Total ARR. We believe we are well positioned to return to growth this year,” said Steve McMillan, President and CEO, Teradata. “Last year, we delivered significant AI technology, including broad support for OTFs, BYO-LLM and GPU-accelerated compute. We are excited about our upcoming innovations in 2025, which are designed to help our customers extend their hybrid AI environments and build towards an agentic AI future.”

CFO Transition Plan

Claire Bramley, Chief Financial Officer, will be leaving Teradata, effective March 31, to take a Chief Financial Officer position at another company outside of Teradata’s industry. The Company has initiated a search process, with the assistance of a leading executive search firm, to identify a permanent successor. Charles Smotherman, Teradata’s Chief Accounting Officer, has been appointed Interim Chief Financial Officer, effective March 24. Smotherman has served as Teradata’s Chief Accounting Officer since 2019 and has more than 25 years of finance and accounting leadership experience.

Mr. McMillan continued, “Claire has been instrumental in supporting the company’s transformation to a cloud leader, guiding Teradata with a solid foundation of operational excellence and strong financial discipline in driving durable profitability and free cash flow. Charles brings deep knowledge of Teradata and extensive experience in financial leadership, and we expect a seamless transition.”


Fourth Quarter 2024 Financial Highlights Compared to Fourth Quarter 2023

•Public cloud ARR increased to $609 million from $528 million, an increase of 15% as reported and 18% in constant currency(1)
•Total ARR decreased to $1.474 billion from $1.570 billion, a decrease of 6% as reported and 4% in constant currency(1)
•Recurring revenue was $351 million versus $372 million a decrease of 6% as reported and 4% in constant currency (1)


•Total revenue was $409 million versus $457 million, a decrease of 11% as reported and 9% in constant currency(1)
•Recurring revenue was 86% of total revenue versus 81%
•GAAP gross margin was 59.4% versus 60.8%
•Non-GAAP gross margin was 60.9% versus 61.9%(2)
•GAAP operating margin was 9.5% versus 10.3%
•Non-GAAP operating margin was 17.6% versus 19.5%(2)
•GAAP diluted EPS was $0.26 versus ($0.07) per share
•Non-GAAP diluted EPS was $0.53 versus $0.56 per share(2)
•Cash flow from operations was $156 million compared to $176 million
•Free cash flow was $148 million compared to $168 million(3)

Full-Year 2024 Financial Highlights Compared to Full-Year 2023

•Public cloud ARR increased to $609 million from $528 million, an increase of 15% as reported and 18% in constant currency(1)
•Total ARR decreased to $1.474 billion from $1.570 billion, a decrease of 6% as reported and 4% in constant currency(1)
•Recurring revenue was $1.479 billion versus $1.492 billion, a decrease of 1% as reported and an increase of 1% in constant currency (1)
•Total revenue was $1.750 billion versus $1.833 billion, a decrease of 5% as reported and 3% in constant currency(1)
•Recurring revenue was 85% of total revenue versus 81%
•GAAP gross margin was 60.5% versus 60.8%
•Non-GAAP gross margin was 61.7% versus 61.8%(2)
•GAAP operating margin was 11.9% versus 10.1%
•Non-GAAP operating margin was 20.3% versus 18.1%(2)
•GAAP diluted EPS was $1.16 versus $0.61 per share
•Non-GAAP diluted EPS was $2.42 versus $2.07 per share(2)
•Cash flow from operations was $303 million compared to $375 million
•Free cash flow was $277 million compared to $355 million(3)
•Share repurchases of $215 million, resulting in a return of free cash flow of 78%

Outlook
For the full-year 2025:
•Public cloud ARR growth of 14% to 18% year-over-year, in constant currency(4)
•Total ARR in the range of flat to 2% year-over-year, in constant currency(4)
•Recurring revenue in the range of -3% to -5% year-over-year, in constant currency(4)
•Total revenue in the range of -4% to -6% year-over-year, in constant currency(4)
•GAAP diluted EPS is expected to be in the range of $1.05 to $1.15 per share
•Non-GAAP diluted EPS is expected to be in the range of $2.15 to $2.25 per share(2)
•Cash flow from operations of $270 million to $300 million
•Free cash flow of $250 million to $280 million(3)

For the first quarter of 2025:
•Recurring revenue in the range of -4% to -6% year-over-year, in constant currency(4)
•Total revenue in the range of -6% to -8% year-over-year, in constant currency(4)


•GAAP diluted EPS is expected to be in the range of $0.33 to $0.37 per share
•Non-GAAP diluted EPS is expected to be in the range of $0.55 to $0.59 per share(2)

Earnings Conference Call
The conference call will begin at 1:30 p.m. PT on February 11, 2025. Investors and participants may attend the call by dialing (404) 975-4839 and entering access code 357044. For investors and participants outside the United States, see global dial-in numbers at netroadshow.com/events/global-numbers?confId=71997, and use access code 357044.

The live webcast, as well as a replay, will be available on the Investor Relations page of the Teradata website at investor.teradata.com.




Supplemental Financial Information
Additional information regarding Teradata’s operating results is provided below as well as on Teradata’s website at investor.teradata.com.

1.The impact of currency is determined by calculating the prior-period results using the current-year monthly average currency rates. See the foreign currency fluctuation schedule, which is used to determine revenue on a constant currency (“CC”) basis, on the Investor Relations page of the Company’s website at investor.teradata.com.
Revenue
(in millions)
For the Three Months ended December 31
20242023% Change as Reported% Change in CC
Recurring revenue$351 $372 (6)%(4)%
Perpetual software licenses, hardware and other3 12 (75)%(69)%
Consulting services55 73 (25)%(21)%
  Total revenue$409 $457 (11)%(9)%
Product Sales$354 $384 (8)%(6)%
Consulting Services55 73 (25)%(21)%
   Total revenue$409 $457 (11)%(9)%
Revenue
(in millions)
For the Twelve Months ended December 31
20242023% Change as Reported% Change in CC
Recurring revenue$1,479 $1,492 (1)%1%
Perpetual software licenses, hardware and other23 45 (49)%(47)%
Consulting services248 296 (16)%(13)%
  Total revenue$1,750 $1,833 (5)%(3)%
Product Sales$1,502 $1,537 (2)%(1)%
Consulting Services248 296 (16)%(13)%
   Total revenue$1,750 $1,833 (5)%(3)%
As of December 31
20242023% Change as Reported% Change in CC
Annual recurring revenue*$1,474 $1,570 (6)%(4)%
Public cloud ARR**$609 $528 15%18%


The impact of currency on ARR is determined by calculating the prior period ending ARR using the current period end currency rates.

*Annual recurring revenue (ARR) is defined as the annual value at a point in time of all recurring contracts, including subscription, cloud, software upgrade rights and maintenance. ARR does not include managed services and third-party software. The Company believes this is a useful metric to investors as it demonstrates progress toward achieving our strategic objectives as outlined in the Form 10-K and Form 10-Q.

**Public cloud ARR is defined as the annual value at a point in time of all contracts related to public cloud implementations of Teradata VantageCloud and does not include ARR related to private or managed cloud implementations. The Company believes this is a useful metric to investors as it demonstrates progress toward achieving our strategic objectives as outlined in the Form 10-K and Form 10-Q.


2.Teradata reports its results in accordance with GAAP. However, as described below, the Company believes that certain non-GAAP measures such as free cash flow, non-GAAP gross profit, non-GAAP operating income, non-GAAP net income, and non-GAAP diluted earnings per share, all of which exclude certain items, and which may be reported on a constant currency basis, are useful for investors. Our non-GAAP measures are not meant to be considered in isolation to, as substitutes for, or superior to, results determined in accordance with GAAP, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Each of our non-GAAP measures do not have a uniform definition under GAAP and therefore, Teradata's definition may differ from other companies' definitions of these measures.

The following tables reconcile Teradata's actual and projected results and EPS under GAAP to the Company's actual and projected non-GAAP results and EPS for the periods presented, which exclude certain specified items. Our management internally uses supplemental non-GAAP financial measures, such as gross profit, operating income, net income, and EPS, excluding certain items, to understand, manage and evaluate our business and support operating decisions on a regular basis. The Company believes such non-GAAP financial measures (1) provide useful information to investors regarding the underlying business trends and performance of the Company’s ongoing operations, (2) are useful for period-over-period comparisons of such operations and results, that may be more easily compared to peer companies and allow investors a view of the Company’s operating results excluding stock-based compensation expense and special items, (3) provide useful information to management and investors regarding present and future business trends, and (4) provide consistency and comparability with past reports and projections of future results.

For the
Three Months		For the
Twelve Months
(in millions, except per share data)ended December 31ended December 31
Gross Profit:20242023% Chg.20242023% Chg.
 GAAP Gross Profit$243 $278 (13)%$1,058 $1,115 (5)%
   % of Revenue59.4 %60.8 %60.5 %60.8 %
  Excluding:
   Stock-based compensation expense4 5 17 17 
   Reorganization and other costs2 — 5 1 
 Non-GAAP Gross Profit$249 $283 (12)%$1,080 $1,133 (5)%
   % of Revenue60.9 %61.9 %61.7 %61.8 %
Operating Income
 GAAP Operating Income$39 $47 (17)%$209 $186 12%
   % of Revenue9.5 %10.3 %11.9 %10.1 %
 Excluding:
   Stock-based compensation expense27 30 119 126 
Reorganization and other costs6 12 28 20 
 Non-GAAP Operating Income$72 $89 (19)%$356 $332 7%
   % of Revenue17.6 %19.5 %20.3 %18.1 %
Net Income / (Loss)
 GAAP Net Income / (Loss) $25 $(7)-$114 $62 84%
   % of Revenue6.1 %(1.5)%6.5 %3.4 %
  Excluding:
   Stock-based compensation expense27 30 119 126 
Reorganization and other costs6 13 28 21 
Argentina Blue Chip Swap
— 13 2 13 
   Income tax adjustments (i)
(6)8 (25)(10)
 Non-GAAP Net Income$52 $57 (9)%$238 $212 12%
   % of Revenue12.7 %12.5 %13.6 %11.6 %


For the Three MonthsFor the Twelve Months
ended December 31ended December 312025 Outlook
Earnings / (Loss) Per Share:20242023202420232025 Q1
Guidance		2025 FY
Guidance
GAAP Earnings / (Loss) Per Share$0.26 $(0.07)$1.16 $0.61 $0.33 - $0.37$1.05 - $1.15
 Excluding:
   Stock-based compensation expense0.27 0.31 1.21 1.23 0.29 1.24 
Reorganization and other costs0.06 0.13 0.28 0.20 0.05 0.15 
Argentina Blue Chip Swap
— 0.13 0.02 0.13 — — 
   Income tax adjustments(i)
(0.06)0.08 (0.25)(0.10)(0.12)(0.29)
Impact of dilution(ii)
— (0.02)— — — — 
 Non-GAAP Diluted Earnings Per Share$0.53 $0.56 $2.42 $2.07 $0.55 - $0.59$2.15 - $2.25
i.Represents the income tax effect of the pre-tax adjustments to reconcile GAAP to Non-GAAP income based on the applicable jurisdictional statutory tax rate of the underlying item. Including the income tax effect assists investors in understanding the tax provision associated with those adjustments and the effective tax rate related to the underlying business and performance of the Company’s ongoing operations. As a result of these adjustments, the Company’s non-GAAP effective tax rate for the three months ended December 31, 2024, was 17.5% and December 31, 2023, was 26.9%. For the twelve months ended December 31, 2024, was 24.0% and December 31, 2023, was 23.5%. In addition, for the first quarter and full year 2025, we included a discrete tax adjustment of ($0.06) for the expected reversal of tax reserves due to the final settlement of an IRS audit in the first quarter of 2025.

ii.Represents the impact to earnings per share as a result of moving from basic to diluted shares.

3.As described below, the Company believes that free cash flow is a useful non-GAAP measure for investors. Free cash flow does not have a uniform definition under GAAP in the United States and therefore, Teradata's definition may differ from other companies' definitions of this measure. Teradata defines free cash flow as cash provided by/used in operating activities, less total capital expenditures. Teradata’s management uses free cash flow to assess the financial performance of the Company and believes it is useful for investors because it relates the operating cash flow of the Company to the capital that is spent to continue and improve business operations. In particular, free cash flow indicates the amount of cash generated after capital expenditures which can be used for among other things, investments in the Company's existing businesses, strategic acquisitions, strengthening the Company’s balance sheet, repurchase of Company stock and repay the Company’s debt obligations. Free cash flow does not represent the residual cash flow available for discretionary expenditures since there may be other non-discretionary expenditures that are not deducted from the measure. This non-GAAP measure should not be considered as a substitute for, or superior to, cash flows from operating activities under GAAP.

For the Three MonthsFor the Twelve Months
ended December 31ended December 31Outlook
(in millions)20242023202420232025
Cash provided by operating activities (GAAP)$156 $176 $303 $375 
$270 to $300
Less total capital expenditures
(8)(8)(26)(20)(~20)
Free Cash Flow (non-GAAP measure)
$148 $168 $277 $355 $250 to $280

4.     We are providing an outlook for the 2025 growth rates for public cloud ARR, total ARR, recurring revenue, and total revenue in constant currency to provide better visibility into the underlying growth of the business. Teradata calculates public cloud ARR and total ARR in constant currency by calculating the prior period ending public cloud ARR or total ARR, as applicable, using the current period end currency rates. It is impractical to provide a schedule on currency period end rates at a future point in time. Teradata calculates recurring revenue and total revenue in constant currency by using the prior-period results with the current-year monthly average currency rates. See the foreign currency fluctuation schedule on the Investor Relations page of the Company’s website at investor.teradata.com to calculate the anticipated impact of currency on the revenue outlook.





Note to Investors
This release contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934. Forward-looking statements generally relate to opinions, beliefs, and projections of expected future financial and operating performance, business trends, liquidity, and market conditions, among other things. These forward-looking statements are based upon current expectations and assumptions and often can be identified by words such as “expect,” “strive,” “looking ahead,” “outlook,” “guidance,” “forecast,” “anticipate,” “continue,” “plan,” “estimate,” “believe,” “focus,” “see,” “commit,” “should,” “project,” “will,” “would,” “likely,” “intend,” “potential,” or similar expressions. Forward-looking statements in this release include our 2025 first quarter and full year 2025 financial outlook and the transition of our Chief Financial Officer. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially, including those relating to: the global economic environment and business conditions in general, including inflation and/or recessionary conditions; the ability of our suppliers to meet their commitments to us; the timing of purchases, migrations, or expansions by our current and potential customers, including our ability to retain customers; the rapidly changing and intensely competitive nature of the information technology industry, the data analytics business, and artificial intelligence capabilities; fluctuations in our operating, capital allocation, and cash flow results; our ability to execute and realize the anticipated benefits of our refreshed brand, business transformation program or restructuring, sales and operational execution initiatives, and cost saving initiatives, including the 2024 restructuring actions; risks inherent in operating in foreign countries, including sanctions, foreign currency fluctuations, and/or acts of war; risks associated with data privacy, cyberattacks and maintaining secure and effective products for our customers, as well as, internal information technology and control systems; the timely and successful development, production or acquisition, availability and/or market acceptance of new and existing products, product features and services, including for artificial intelligence; tax rates; turnover of our workforce and the ability to attract and retain skilled employees; protecting our intellectual property; availability and successful execution of new alliance and acquisition opportunities; subscription arrangements that may be cancelled or fail to be renewed; the impact on our business and financial reporting from the implementation of a new ERP system and changes in accounting rules; and other factors described from time to time in Teradata’s filings with the U.S. Securities and Exchange Commission, including its most recent annual report on Form 10-K, and subsequent quarterly reports on Forms 10-Q or current reports on Forms 8-K, as well as Teradata’s annual report to stockholders. Teradata does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.


About Teradata
At Teradata, we believe that people thrive when empowered with trusted information. We offer the most complete cloud analytics and data platform for AI. By delivering harmonized data and trusted AI, we enable more confident decision-making, unlock faster innovation, and drive the impactful business results organizations need most.

See how at Teradata.com.

# # #
The Teradata logo is a trademark, and Teradata is a registered trademark of Teradata Corporation and/or its affiliates in the U.S. and worldwide.


SCHEDULE A

TERADATA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in millions, except per share amounts - unaudited)
For the Period Ended December 31
Three MonthsTwelve Months
20242023% Chg20242023% Chg
Revenue
Recurring$351 $372 (6)%$1,479 $1,492 (1)%
Perpetual software licenses, hardware and other3 12 (75)%23 45 (49)%
Consulting services55 73 (25)%248 296 (16)%
Total revenue409 457 (11)%1,750 1,833 (5)%
Gross profit
Recurring 243 264 1,038 1,074 
% of Revenue69.2 %71.0 %70.2 %72.0 %
Perpetual software licenses, hardware and other(2)4 — 7 
% of Revenue(66.7)%33.3 %— %15.6 %
Consulting services2 10 20 34 
% of Revenue3.6 %13.7 %8.1 %11.5 %
Total gross profit243 278 1,058 1,115 
% of Revenue59.4 %60.8 %60.5 %60.8 %
Selling, general and administrative expenses136 159 565 635 
Research and development expenses68 72 284 294 
Income from operations39 47 209 186 
% of Revenue9.5 %10.3 %11.9 %10.1 %
Other expense, net(9)(25)(45)(69)
Income before income taxes30 22 164 117 
% of Revenue7.3 %4.8 %9.4 %6.4 %
Income tax expense5 29 50 55 
% Tax rate16.7 %131.8 %30.5 %47.0 %
Net income (loss)$25 $(7)$114 $62 
% of Revenue6.1 %(1.5)%6.5 %3.4 %
Net income (loss) per common share
Basic $0.26 $(0.07)$1.18 $0.62 
Diluted$0.26 $(0.07)$1.16 $0.61 
Weighted average common shares outstanding
Basic95.5 97.9 96.4 99.8 
Diluted97.4 97.9 98.2 102.4 



SCHEDULE B

TERADATA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions - unaudited)
December 31, 2024September 30, 2024December 31, 2023
Assets
Current assets
Cash and cash equivalents$420 $348 $486 
Accounts receivable, net234 247 286 
Inventories18 16 13 
Other current assets77 92 84 
Total current assets749 703 869 
Property and equipment, net185 202 239 
Right of use assets- operating lease, net8 6 9 
Goodwill394 399 398 
Capitalized contract costs, net46 49 68 
Deferred income taxes226 215 221 
Other assets96 85 69 
Total assets$1,704 $1,659 $1,873 
Liabilities and stockholders' equity
Current liabilities
Current portion of long-term debt$25 $25 $19 
Current portion of finance lease liability57 60 66 
Current portion of operating lease liability4 4 6 
Accounts payable106 85 100 
Payroll and benefits liabilities111 105 130 
Deferred revenue512 482 570 
Other current liabilities115 114 105 
Total current liabilities930 875 996 
Long-term debt455 461 480 
Finance lease liability30 40 63 
Operating lease liability5 3 6 
Pension and other postemployment plan liabilities104 96 102 
Long-term deferred revenue10 13 22 
Deferred tax liabilities9 8 8 
Other liabilities28 38 61 
Total liabilities1,571 1,534 1,738 
Stockholders' equity
Common stock1 1 1 
Paid-in capital2,192 2,166 2,074 
Accumulated deficit(1,913)(1,908)(1,811)
Accumulated other comprehensive loss(147)(134)(129)
Total stockholders' equity133 125 135 
Total liabilities and stockholders' equity$1,704 $1,659 $1,873 



SCHEDULE C

TERADATA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions - unaudited)
For the Period Ended December 31
Three MonthsTwelve Months
2024202320242023
Operating activities
Net income (loss)$25 $(7)$114 $62 
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Depreciation and amortization22 30 100 116 
Stock-based compensation expense27 30 119 126 
Deferred income taxes(16)(12)(11)(11)
Loss on Blue Chip Swap1 13 4 13 
Changes in assets and liabilities:
Receivables13 — 52 78 
Inventories (2)(5)(5)(5)
Current payables and accrued expenses36 16 (1)7 
Deferred revenue27 99 (70)(5)
Other assets and liabilities23 12 1 (6)
Net cash provided by operating activities156 176 303 375 
Investing activities
Expenditures for property and equipment(7)(8)(24)(19)
Additions to capitalized software(1)— (2)(1)
Business acquisitions and other investing activities, including loss on Blue Chip Swap(1)(13)(6)(29)
Net cash used in investing activities(9)(21)(32)(49)
Financing activities
Repurchases of common stock(29)(7)(215)(308)
Repayments of long-term borrowings(6)— (19)— 
Payments of finance leases(17)(20)(71)(82)
Other financing activities, net— 1 (1)7 
Net cash used in financing activities(52)(26)(306)(383)
Effect of exchange rate changes on cash and cash equivalents(22)8 (30)(28)
Increase (decrease) in cash, cash equivalents and restricted cash73 137 (65)(85)
Cash, cash equivalents and restricted cash at beginning of period348 349 486 571 
Cash, cash equivalents and restricted cash at end of period$421 $486 $421 $486 
Supplemental cash flow disclosure:
Non-cash investing and financing activities:
Assets acquired by finance leases$4 $10 $29 $90 
Assets acquired by operating leases$4 $— $5 $6 



SCHEDULE D

TERADATA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions - unaudited)
For the Three Months Ended December 31For the Twelve Months Ended December 31
20242023% Change As Reported
%
 Change Constant Currency(2)
20242023% Change As Reported
%
 Change Constant Currency(2)
Segment Revenue
Product Sales$354 $384 (8)%(6)%$1,502 $1,537 (2)%(1)%
Consulting services55 73 (25)%(21)%248 296 (16)%(13)%
Total segment revenue409 457 (11)%(9)%1,750 1,833 (5)%(3)%
Segment gross profit
Product Sales244 271 1,049 1,091 
% of Revenue68.9 %70.6 %69.8 %71.0 %
Consulting services5 12 31 42 
% of Revenue9.1 %16.4 %12.5 %14.2 %
Total segment gross profit249 283 1,080 1,133 
% of Revenue60.9 %61.9 %61.7 %61.8 %
Reconciling items(1)
(6)(5)(22)(18)
Total gross profit$243 $278 $1,058 $1,115 
% of Revenue59.4 %60.8 %60.5 %60.8 %
(1) Reconciling items include stock-based compensation, amortization of acquisition-related intangible assets and acquisition, integration and reorganization-related items.
'(2) The impact of currency is determined by calculating the prior period results using the current-year monthly average currency rates.

v3.25.0.1
Document and Entity Information Document
Feb. 07, 2025
Cover [Abstract]  
Document Type 8-K
Document Period End Date Feb. 07, 2025
Entity Registrant Name TERADATA CORP /DE/
Entity File Number 001-33458
Entity Incorporation, State or Country Code DE
Entity Tax Identification Number 75-3236470
Entity Address, Address Line One 17095 Via Del Campo
Entity Address, City or Town San Diego
Entity Address, State or Province CA
Entity Address, Postal Zip Code 92127
City Area Code 866
Local Phone Number 548-8348
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $0.01 par value
Trading Symbol TDC
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0000816761
Amendment Flag false
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