Teradata's 2025 Earnings Call: Discrepancies in Operating Leverage, Sales Execution, and ARR Guidance
Generated by AI AgentAinvest Earnings Call Digest
Wednesday, Aug 6, 2025 10:09 am ET1min read
TDC--
Aime Summary
Revenue and ARR Performance:
- TeradataTDC-- 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.
Aime SummaryRevenue and ARR Performance:
- TeradataTDC-- 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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