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Here's What Key Metrics Tell Us About Teradata (TDC) Q4 Earnings

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Teradata (TDC - Free Report) reported $409 million in revenue for the quarter ended December 2024, representing a year-over-year decline of 10.5%. EPS of $0.53 for the same period compares to $0.56 a year ago.

The reported revenue represents a surprise of -0.43% over the Zacks Consensus Estimate of $410.76 million. With the consensus EPS estimate being $0.42, the EPS surprise was +26.19%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Teradata performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Annual recurring revenue (ARR) - Total: $1.47 billion compared to the $1.52 billion average estimate based on two analysts.
  • Annual recurring revenue (ARR) - Public Cloud: $609 million versus the two-analyst average estimate of $633.39 million.
  • Revenue- Perpetual software licenses and hardware: $3 million compared to the $7.51 million average estimate based on three analysts. The reported number represents a change of -75% year over year.
  • Revenue- Recurring: $351 million versus $343.30 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -5.7% change.
  • Revenue- Consulting services: $55 million versus $60.30 million estimated by three analysts on average.
  • Gross profit- Recurring: $243 million versus the two-analyst average estimate of $244.72 million.
  • Gross profit- Consulting services: $2 million compared to the $6.85 million average estimate based on two analysts.
  • Gross profit- Perpetual software licenses and hardware: -$2 million versus -$6.19 million estimated by two analysts on average.
View all Key Company Metrics for Teradata here>>>

Shares of Teradata have returned +2% over the past month versus the Zacks S&P 500 composite's +4.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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