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Teradata(TDC) - 2025 Q1 - Quarterly Results
TDCTeradata(TDC)2025-05-06 20:07

Revenue Performance - Total revenue for the first quarter was 418million,a10418 million, a 10% decrease as reported and 8% in constant currency[5] - Total revenue for Q1 2025 was 418 million, a decrease of 10% compared to 465millioninQ12024[20]−TotalARRdecreasedto465 million in Q1 2024[20] - Total ARR decreased to 1.442 billion, down 3% as reported and 2% in constant currency[5] - Recurring revenue was 358million,an8358 million, an 8% decrease as reported and 6% in constant currency, representing 86% of total revenue[5] - Recurring revenue decreased by 8% to 358 million from 388millionyear−over−year[20]−Consultingservicesrevenuefellby28388 million year-over-year[20] - Consulting services revenue fell by 28% to 50 million from 69millionyear−over−year[20]ProfitabilityMetrics−GAAPoperatingmarginimprovedto15.869 million year-over-year[20] Profitability Metrics - GAAP operating margin improved to 15.8%, up 550 basis points year-over-year, while non-GAAP operating margin increased to 21.8%, up 270 basis points[4] - GAAP diluted EPS was 0.45, compared to 0.20pershareintheprioryear,whilenon−GAAPdilutedEPSwas0.20 per share in the prior year, while non-GAAP diluted EPS was 0.66, up from 0.57[5]−Thecompanyreporteda15.80.57[5] - The company reported a 15.8% operating income margin for Q1 2025, up from 10.3% in Q1 2024[20] - The tax rate for Q1 2025 was 24.1%, significantly lower than 37.5% in Q1 2024[20] Cash Flow and Liquidity - Cash flow from operations was 8 million, down from 27million,andfreecashflowwas27 million, and free cash flow was 7 million, down from 21million[8]−Cashandcashequivalentsdecreasedto21 million[8] - Cash and cash equivalents decreased to 368 million from 420millionattheendofQ42024[22]FutureOutlook−Forfull−year2025,totalrevenueisexpectedtodeclineintherangeof4420 million at the end of Q4 2024[22] Future Outlook - For full-year 2025, total revenue is expected to decline in the range of 4% to 7% year-over-year in constant currency[8] - Public cloud ARR growth is projected at 14% to 18% year-over-year in constant currency[8] - Non-GAAP diluted EPS guidance for 2025 is set at 2.15 to 2.25pershare[8]−Thecompanyplanstofocusonproductinnovationanddemandaspartofitsfutureoutlook[18]AssetManagement−Totalassetsincreasedto2.25 per share[8] - The company plans to focus on product innovation and demand as part of its future outlook[18] Asset Management - Total assets increased to 1,752 million as of March 31, 2025, compared to 1,704millionattheendof2024[22]NetIncome−NetincomeforQ12025was1,704 million at the end of 2024[22] Net Income - Net income for Q1 2025 was 44 million, up from $20 million in Q1 2024, representing a 120% increase[20] Gross Profit Margin - Gross profit margin for total revenue was 59.3% in Q1 2025, down from 61.1% in Q1 2024[20]