Teradata(TDC) ZACKS·2025-02-12 19:06Core Viewpoint - Teradata (TDC) reported mixed financial results for the fourth quarter of 2024, with non-GAAP earnings exceeding estimates but revenues declining significantly year over year, leading to a sharp drop in share price [1][3]. Financial Performance - Non-GAAP earnings for Q4 2024 were 53 cents per share, beating the Zacks Consensus Estimate by 26.19%, but down 5.4% year over year [1]. - Revenues totaled 1.474 billion, with a 4% decline at constant currency [2]. Revenue Breakdown - Recurring revenues, which account for 85.8% of total revenues, fell 6% year over year to 3 million [4]. - Consulting services revenues decreased 24.7% year over year to 354 million [5]. Operating Metrics - Non-GAAP gross margin was 60.9%, down 100 basis points year over year [6]. - Selling, general and administrative (SG&A) expenses decreased 10.7% year over year to 117 million, while research and development (R&D) expenses were 60 million, down 4.8% year over year [6]. - Non-GAAP operating margin was 17.6%, a decline of 190 basis points year over year [6]. Balance Sheet and Cash Flow - As of December 31, 2024, cash and cash equivalents were 348 million as of September 30, 2024 [7]. - Long-term debt remained stable at 156 million in Q4, compared to 148 million [7]. Guidance - For Q1 2025, non-GAAP earnings are expected to be between 55 and 59 cents per share, with total revenues projected to decline 6-8% year over year [8]. - For the full year 2025, non-GAAP earnings are anticipated to be between 2.25 per share [8]. - Public cloud ARR growth is projected between 14% and 18% year over year, while total ARR is expected to be flat to 2% growth [8]. - Recurring revenues are anticipated to decline 3-5% year over year [8]. Market Reaction - Following the earnings report, TDC shares fell 26.88% in pre-market trading to $22.65, reflecting concerns over revenue decline [3].