Loading...
01/11 05:24
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reveals mixed signals: strong public cloud ARR growth and a solid non-GAAP EPS increase contrast with declining total ARR and revenue. The Q&A highlights management's optimism about AI and analytics but reveals uncertainties in retention rates and AI revenue impact. The share repurchase plan is a positive factor, but the decline in gross margin and revenue raises concerns. Given the company's mid-sized market cap, the stock price is likely to remain stable in the short term, resulting in a neutral prediction.
Public Cloud ARR $606 million, a 16% year-on-year increase in constant currency.
Total ARR $1.44 billion, a 2% year-over-year decline on a constant currency basis, which was a two-point improvement from the end of 2024.
Free Cash Flow $7 million, slightly ahead of expectations due to accelerated collections.
Non-GAAP EPS $0.66, an increase of 16% year-on-year.
Recurring Revenue $358 million, down 8% year-over-year as reported and down 6% year-over-year in constant currency.
Total Revenue $418 million, down 10% year-over-year as reported and 8% in constant currency.
Total Gross Margin 60.3%, down 190 basis points year-over-year, primarily due to services.
Operating Margin 21.8%, up 270 basis points year-over-year, largely due to restructuring actions taken last year.
Recurring Revenue as a Percentage of Total Revenue 86%, up from 83% in the prior year period.
Stock Repurchase Approximately $44 million of stock or 1.6 million shares repurchased.
Teradata Enterprise Vector Store: Announced in early March, this end database solution enhances capabilities for managing vector data, crucial for building trusted AI systems.
Public Cloud ARR: Achieved $606 million, a 16% year-on-year increase in constant currency.
Total ARR: Reported at $1.44 billion, in line with expectations on a constant currency basis.
Cloud ARR Growth: Expected growth of 14% to 18% year-over-year.
Free Cash Flow: Generated $7 million in Q1 2025.
Operating Margin: Increased to 21.8%, up 270 basis points year-over-year.
Gross Margin: Total gross margin was 60.3%, down 190 basis points year-over-year.
Executive Appointments: New CFO John Ederer and Chief Product Officer Sumeet Arora announced, aiming to enhance innovation and execution.
Focus on AI: Emphasizing trusted data for AI, with plans for on-prem AI capabilities to meet customer needs.
Market Dynamics: The company is monitoring the dynamic market and working closely with customers to help them navigate the uncertain climate.
Regulatory Issues: Many customers operate in regulated industries with strict requirements for data sovereignty and security.
Economic Factors: The company is taking a more prudent stance with respect to its services business, which is more subject to discretionary spending due to macroeconomic uncertainty.
Supply Chain Challenges: The direct impact from the dynamic tariff situation is expected to be immaterial to the business in 2025.
Competitive Pressures: The company faces competitive pressures in the AI space, emphasizing the need for trusted data and high-performance processing capabilities.
Service Business Volatility: The services business continues to be impacted by lower bookings, which affects overall revenue and profitability.
Retention Rates: While retention rates are improving, the company acknowledges the challenges in maintaining customer engagement and satisfaction.
Public Cloud ARR: $606 million, a 16% year-on-year increase in constant currency.
Total ARR: $1.44 billion, in line with expectations on a constant currency basis.
Free Cash Flow: Generated $7 million in the quarter.
Non-GAAP EPS: $0.66, an increase of 16% year-on-year.
Cloud ARR Growth: Expected growth of 14% to 18% year-over-year.
Enterprise Vector Store: Introduced to enhance AI capabilities and manage trusted data.
Customer Engagements: Collaborating with AWS, Google Cloud, Microsoft Azure, NVIDIA.
Total ARR Growth: Expected to return to growth in Q4 2025.
Total Revenue Outlook: Expanded range to reflect negative 4% to negative 7% year-over-year on a constant currency basis.
Recurring Revenue Q2 2025: Anticipated in the range of negative 5% to negative 7% year-over-year on a constant currency basis.
Non-GAAP EPS Q2 2025: Projected to be in the range of $0.37 to $0.41.
Operating Margin: Expected to remain strong with a focus on AI innovation.
Share Repurchase: In the first quarter, we repurchased approximately $44 million of stock or 1.6 million shares and we continue to expect to return at least 50% of our free cash flow to shareholders in the form of share repurchases.
The earnings call summary indicates mixed signals: while there is confidence in ARR growth and operational improvements, revenue is expected to decline, and guidance lacks specifics. The Q&A reveals optimism in AI and cloud strategies, but also highlights concerns about revenue growth and vague management responses. The company's market cap suggests moderate volatility, leading to a neutral prediction for stock price movement.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
