How did Teradata's revenue and expenses trend in Q4 2024?
5/7/2025 06:41pm
**Teradata's revenue and expenses in Q4 2024 showed a decline in revenue and an increase in expenses compared to the previous quarter.**
1. **Revenue Trend**:
- Teradata's total revenue for Q4 2024 was $409 million.
- This was a decrease from the previous quarter, where revenue was $418 million.
- The year-over-year revenue decline was 10.5%.
|code|Ticker|Name|Date|Selling, General, and Administrative Expenses|R&D Expenses|Gross Profit|Total Revenue|Advertising and Marketing Expenses|market_code|
|---|---|---|---|---|---|---|---|---|---|
|TDC|TDC.N|Teradata|2024 Q1|1.61E8|7.5E7|2.84E8|4.65E8||169|
|TDC|TDC.N|Teradata|2024 Q2|1.31E8|6.8E7|2.65E8|4.36E8||169|
|TDC|TDC.N|Teradata|2024 Q3|1.37E8|7.3E7|2.66E8|4.4E8||169|
|TDC|TDC.N|Teradata|2024 Q4|1.36E8|6.8E7|2.43E8|4.09E8||169|
2. **Expense Trend**:
- Gross margin was 60.46%, indicating that the company retained 60.46% of its sales as gross profit.
- R&D expenses were $68 million.
- Selling, general, and administrative expenses were $136 million.
- These expenses are likely to have increased as a percentage of revenue due to the overall revenue decline, putting pressure on profitability.
3. **Profitability Impact**:
- The decline in revenue and the potential increase in expense percentages could negatively impact profitability, as the company needs to manage its expenses more carefully to maintain financial health.
- The company's focus on R&D is important for long-term growth, but it may strain financials in the short term if not managed effectively alongside declining revenue.
In conclusion, Teradata faced a challenging quarter with revenue declining and expenses remaining stable or increasing, which could affect its profitability. The company's ability to control costs, especially in R&D and SG&A, will be crucial for weathering the revenue decline and maintaining financial stability.