Revenue and ARR Performance:
-
reported
total ARR of
$1.49 billion for Q2,
up 2% year-over-year as reported.
- The company experienced improved deal execution with some deals closing earlier than expected, contributing to the revenue growth.
Cloud ARR Growth:
- Teradata's
cloud ARR was
$634 million, showing a
15% constant currency growth rate, aligning with full-year guidance of
14% to 18%.
- The growth was supported by cloud migrations and expansions, with a balanced mix of both driving revenue.
Improved Retention Rates:
- Teradata achieved better retention rates, with improvements extending customer contracts into the second half of the year.
- This was due to effective contract management and customer satisfaction with Teradata's AI and data management capabilities.
Focus on AI and Innovation:
- Teradata introduced several new AI capabilities, including the Teradata AI Factory, Enterprise Vector Store, and MCP server.
- These innovations are aimed at leveraging AI to enhance customer experience and drive more value from trusted data, enhancing Teradata's competitive position in the AI landscape.
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