Teradata Corp.’s (NYSE:TDC) guidance for FQ1 fell short of analysts' expectations, sending the company’s shares tumbling 12% in after-hours trading.
For the fiscal fourth quarter of 2023, the cloud database and analytics software provider reported earnings per share (EPS) of $0.56, surpassing the analysts' prediction of $0.51. Revenue came in at $457 million, while analysts projected $456.34 million.
Looking ahead, Teradata expects its non-GAAP diluted EPS for the coming quarter to be between $0.53 and $0.57, missing the consensus estimate of $0.74.
For the entire year of 2024, Teradata has outlined the following projections:
The company anticipates total revenue growth to be between 0% and 2% year-over-year when adjusted for constant currency.
Public cloud Annual Recurring Revenue (ARR) is expected to increase by 35% to 41% YoY, on a constant currency basis.
Overall ARR is projected to grow by 4% to 8% year-over-year, also in constant currency.
Recurring revenue growth is forecasted to be between 1% and 3% YoY.
“Teradata ended 2023 with $528 million of Cloud ARR, delivering ten-fold growth in less than four years,” said Steve McMillan, President and CEO of Teradata.
“Companies everywhere are experimenting with AI to innovate their business and we are excited to be at the center of the AI era. Trusted data is required for this type of breakthrough innovation, and data and analytics are what we believe Teradata does best.”