The company said it is excited about its upcoming innovations in 2025, which are designed to help customers extend their hybrid AI environments and build towards an agentic AI future.

Teradata Corp. (TDC) shares plunged in Wednesday’s premarket session after the provider of multi-cloud platform reported mixed results for its fiscal year 2024 fourth quarter and issued mixed forward guidance.

The company also announced that its CFO is leaving by the end of the current quarter.

The San Diego, California-based company reported fourth-quarter adjusted earnings per share (EPS) of $0.53 and revenue of $405 million. While the bottom line exceeded the consensus estimate of $0.43 and the guidance, the top line missed the $414.5 million estimate.

The headline numbers marked a decline from the year ago’s $0.56 and $457 million, respectively.

Recurring revenue fell 6%, and the total annual recurring revenue (ARR) declined by a similar magnitude. 

Adjusted gross margin contracted by a percentage point year over year (YoY), and operating margin fell to 17.6% from 19.5%.

CEO Steve McMillan said, “In 2024, Teradata took decisive actions to improve execution, and met our guidance ranges for both Cloud and Total ARR.”

Last August, the company announced a restructuring exercise that included eliminating 9% to 10% of its global workforce to improve operating profits.

He noted that the company delivered significant artificial intelligence (AI) technology, including broad support for OTFs, BYO-LLM, and GPU-accelerated compute.

“We are excited about our upcoming innovations in 2025, which are designed to help our customers extend their hybrid AI environments and build towards an agentic AI future,” he added.

Teradata said CFO Claire Bramley will leave effective March 31 and that it has initiated a search process for a replacement. Chief Accounting Officer Charles Smotherman will be the interim CFO, effective March 24.

Looking ahead, Teradata expects total revenue to decline 6%- 8% year over year in the first quarter of 2025 and by 4%- 5% for the full year. This compares to the declines of 9% and 7% forecast by analysts, according to Yahoo Finance.

The company guided to adjusted EPS of $0.55-$0.59 for the quarter and $2.15-$2.25 for the year. The consensus estimates are at $0.60 and $2.35, respectively. 

TDC sentiment and message volume February 12, premarket as of 8:44 am ET | Source: Stocktwits

On Stocktwits, sentiment toward Teradata stock remained ‘extremely bearish’ (23/100), and the message volume was ‘high.’

In premarket trading, Teradata stock slumped 18.66% to $25.12, marking the lowest level since August 2024.

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