Contradictions Unveiled: Examining ARR Growth, Cloud Expectations, and Customer Retention in 2025Q1 Earnings Call

None



ARR and Cloud Revenue Growth:
- Teradata delivered public cloud ARR of $606 million, a 16% year-on-year increase in constant currency, with total ARR at $1.44 billion.
- The growth was driven by improved execution, increased focus on advanced analytics and industry use cases, and the hybrid capabilities meeting macroeconomic volatility.

Retention Rate Improvement:
- Teradata's total ARR declined 2% year-over-year on a constant currency basis, but retention rates showed improvement.
- The improvement is attributed to the customer success team's efforts to enhance customer health metrics and the value proposition of Teradata's platform and services.

Vector Store and AI Capabilities:
- The introduction of the Enterprise Vector Store has been enthusiastically received by customers, with examples of integrated solutions yielding significant business value.
- This innovation is a crucial component in addressing the rising demand for trusted data in AI applications, positioning Teradata well for enabling Agentic AI.

Financial Performance and Outlook:
- Teradata generated $7 million in free cash flow, with non-GAAP EPS at $0.66, an increase of 16% year-on-year.
- The company maintained a positive outlook despite macroeconomic uncertainty, attributing it to effective cost management and new executive appointments.