Teradata (TDC) investor relations material

Executive leadership and strategic priorities

• New CFO brings experience in SaaS transitions and profitable growth from both public and private equity-backed companies.

• Leadership team is newly formed, focused, and moving with urgency, especially in response to AI-driven market changes.

• Priorities include stabilizing the business in FY24–25, setting up for growth in FY26 and beyond, and driving a profitable growth strategy.

• Emphasis on achieving the rule of 40 and durable free cash flow growth through targeted investments and operational improvements.

Market trends and business model evolution

• AI and data modernization are increasing demand for enterprise data solutions, with customers seeking secure, scalable deployments.

• Recent product launches, such as Enterprise Vector Store and AI Factory, are generating strong customer interest and influencing the sales pipeline.

• Hybrid environments are gaining traction as customers balance cloud and on-premise needs, with migration activity slowing as hybrid becomes more attractive.

• Cloud remains the highest growth area, but focus is shifting to growing total ARR across all deployment models.

Operational execution and financial performance

• Improved execution and organizational changes have led to better pipeline hygiene, deal timing, and customer retention in the first half of the year.

• Enhanced telemetry and early risk identification are driving better customer engagement and reducing erosion events.

• Restructuring and cost optimization, especially in marketing, have helped maintain flat operating margins despite top-line headwinds.

• Investments in product, go-to-market, and efficiency levers across the P&L are aimed at supporting innovation and profitability.