Workflow
Teradata(TDC) - 2024 Q4 - Annual Results
TDCTeradata(TDC)2025-02-11 21:09

Financial Performance - Fourth quarter public cloud ARR reached 609million,anincreaseof15609 million, an increase of 15% as reported and 18% in constant currency compared to the prior year[5] - Full-year GAAP diluted EPS was 1.16, up 90% year-over-year, while non-GAAP diluted EPS was 2.42,up172.42, up 17% year-over-year[5] - Total ARR decreased to 1.474 billion from 1.570billion,adecreaseof61.570 billion, a decrease of 6% as reported and 4% in constant currency[6] - Total revenue for the full year was 1.750 billion, a decrease of 5% as reported and 3% in constant currency[8] - Total revenue guidance for 2025 is projected to decline between 6% to 8% year-over-year in constant currency[8] - Total revenue for Q4 2024 was 409million,adecreaseof11409 million, a decrease of 11% compared to 457 million in Q4 2023[26] - Recurring revenue for the fourth quarter was 351million,down6351 million, down 6% as reported and 4% in constant currency[6] - Recurring revenue decreased by 6% to 351 million in Q4 2024 from 372millioninQ42023[26]−Forthefullyear2024,totalsegmentrevenuewas372 million in Q4 2023[26] - For the full year 2024, total segment revenue was 1.75 billion, down 5% from 1.83billionin2023[32]CashFlowandAssets−Cashflowfromoperationsforthefullyearwas1.83 billion in 2023[32] Cash Flow and Assets - Cash flow from operations for the full year was 303 million, with free cash flow of 277million[5]−FreeCashFlowforthetwelvemonthsendedDecember31,2024,was277 million[5] - Free Cash Flow for the twelve months ended December 31, 2024, was 277 million, compared to 355millionin2023,withaguidanceof355 million in 2023, with a guidance of 250 to 280millionfor2025[20]−CashprovidedbyoperatingactivitiesforQ42024was280 million for 2025[20] - Cash provided by operating activities for Q4 2024 was 156 million, down from 176millioninQ42023[20]−Cashandcashequivalentsincreasedto176 million in Q4 2023[20] - Cash and cash equivalents increased to 420 million as of December 31, 2024, from 348millionatSeptember30,2024[28]−Totalassetsdecreasedto348 million at September 30, 2024[28] - Total assets decreased to 1,704 million as of December 31, 2024, from 1,873millionayearearlier[28]−Totalliabilitieswere1,873 million a year earlier[28] - Total liabilities were 1,571 million as of December 31, 2024, compared to 1,738millionayearearlier[28]ProfitabilityMetrics−GAAPGrossProfitforQ42024was1,738 million a year earlier[28] Profitability Metrics - GAAP Gross Profit for Q4 2024 was 243 million, a decrease of 13% from 278millioninQ42023,representing59.4278 million in Q4 2023, representing 59.4% of revenue[16] - Non-GAAP Net Income for the twelve months ended December 31, 2024, was 238 million, up 12% from 212millionin2023,withamarginof13.6212 million in 2023, with a margin of 13.6%[16] - GAAP Operating Income for Q4 2024 was 39 million, down 17% from 47millioninQ42023,accountingfor9.547 million in Q4 2023, accounting for 9.5% of revenue[16] - Net income for Q4 2024 was 25 million, compared to a net loss of 7millioninQ42023,representingasignificantturnaround[26]−TotalgrossprofitforQ42024was7 million in Q4 2023, representing a significant turnaround[26] - Total gross profit for Q4 2024 was 243 million, a decline from 278millioninQ42023,representingagrossmarginof59.4278 million in Q4 2023, representing a gross margin of 59.4%[32] - Total gross profit for the full year 2024 was 1.06 billion, compared to 1.11billionin2023[32]EarningsPerShare−GAAPEarningsPerShareforQ42024was1.11 billion in 2023[32] Earnings Per Share - GAAP Earnings Per Share for Q4 2024 was 0.26, compared to a loss of 0.07inQ42023,withguidanceforQ12025setbetween0.07 in Q4 2023, with guidance for Q1 2025 set between 0.33 and 0.37[17]−Non−GAAPDilutedEarningsPerShareforthetwelvemonthsendedDecember31,2024,was0.37[17] - Non-GAAP Diluted Earnings Per Share for the twelve months ended December 31, 2024, was 2.42, up from 2.07in2023,withguidancefor2025setbetween2.07 in 2023, with guidance for 2025 set between 2.15 and 2.25[17]StrategicInitiatives−ThecompanyannouncedaCFOtransitionplan,withCharlesSmothermanappointedasInterimCFO[3]−SignificantAItechnologyadvancementsweremadein2024,includingsupportforOTFsandBYO−LLM[2]−ThecompanyisfocusedonenhancingitscloudanalyticsanddataplatformforAItodrivebusinessresults[22]RevenueBreakdown−Productsalesrevenuedecreasedby82.25[17] Strategic Initiatives - The company announced a CFO transition plan, with Charles Smotherman appointed as Interim CFO[3] - Significant AI technology advancements were made in 2024, including support for OTFs and BYO-LLM[2] - The company is focused on enhancing its cloud analytics and data platform for AI to drive business results[22] Revenue Breakdown - Product sales revenue decreased by 8% to 354 million in Q4 2024 from 384millioninQ42023[32]−Consultingservicesrevenuefellby25384 million in Q4 2023[32] - Consulting services revenue fell by 25% to 55 million in Q4 2024, down from 73millioninQ42023[32]−Fullyearproductsalesrevenuewas73 million in Q4 2023[32] - Full year product sales revenue was 1.50 billion, a decrease of 2% compared to 1.54billionin2023[32]−Consultingservicesrevenueforthefullyear2024was1.54 billion in 2023[32] - Consulting services revenue for the full year 2024 was 248 million, down 16% from 296millionin2023[32]TaxRates−Thenon−GAAPeffectivetaxrateforQ42024was17.5296 million in 2023[32] Tax Rates - The non-GAAP effective tax rate for Q4 2024 was 17.5%, compared to 26.9% in Q4 2023[17] - The effective tax rate for Q4 2024 was 16.7%, significantly lower than 131.8% in Q4 2023[26] Stock Repurchase - The company repurchased 29 million of common stock in Q4 2024, compared to $7 million in Q4 2023[30]