Teradata Stock

Teradata Corporation (Teradata) operates as a technology company.

The company focuses on helping organizations improve business performance, enrich customer experiences, and integrate data across the enterprise.

The company strives to innovate and deliver trusted solutions for their toughest data and analytics challenges. That is why the company builds its open and connected cloud analytics and data platform for artificial intelligence (‘AI’). With the company’s Teradata Vantage platform, underpinned by the company’s extensive patented workload management optimization, the company is well positioned to help enterprises solve business problems and deliver business breakthroughs with its capabilities to provide harmonized data, trusted AI, and faster innovation.

Harmonized Data: The company strives to empower its customers to make more confident decisions with integrated data using the company’s cloud-native platform that is designed to be efficient, flexible, and secure.

Trusted AI: The company’s platform provides its customers with powerful, open, and connected analytics that perform with speed and deliver better insights.

Faster Innovation: The company’s Teradata Vantage platform is designed to fuel the company’s customer’s growth opportunities with AI/ML innovation that's cost-effectively operationalized at scale.

Complete Analytics and Data Platform

Teradata Vantage is the company’s open and connected platform that is designed to allow organizations to leverage all their data across an enterprise, whether in public or private clouds, in a multi-cloud environment, or on-premises, and at the scale. Teradata Vantage comprises deployment options that are designed to address the full span of analytics and data needs while providing optimized total cost of ownership and financial governance:

Teradata VantageCloud: The company’s flexible, connected, and modern cloud platform and includes Teradata VantageCloud Lake, which is built on the company’s cloud-native lake architecture, and Teradata VantageCloud Enterprise for managed enterprise workloads.

Teradata VantageCore: The company’s on-premises data and analytics offering, which seamlessly integrates with the company’s cloud offerings to enable hybrid environments that many large enterprises demand.

Key capabilities of Teradata Vantage across all deployments are:

ClearScape Analytics: ClearScape Analytics provides the analytics capabilities of the company’s Vantage platform and is designed to be a secure, highly concurrent, and resilient analytics offering that provides robust in-database analytics functionality across advanced calculations and data preparation to enable end-to-end AI and machine learning (‘ML’) capabilities. The company’s ClearScape Analytics capabilities provide the analytics enterprises need to improve business performance and drive profitable growth. ClearScape Analytics is available across all of the company’s Vantage deployment options.

Query Grid: Query Grid is the company’s ‘data fabric’ is a data integration and management layer included with the company’s Teradata Vantage offering. QueryGrid serves as the connective tissue in multi-cloud and between cloud, and on-premises environments. This technology innovation is designed to reduce data silos, as it brings data together and enables consistent data access across the ecosystem, so that users can query data regardless of where it lies. With the company’s data fabric, the company enables analytics and data integration across public clouds for a multi-cloud experience that large enterprises are investing in to leverage diverse capabilities across multiple ecosystems and mitigate risk. As AI is deployed across the enterprise, the company’s data fabric is designed to provide its customers with the analytic capabilities to deliver trusted data, that is secure and well governed.

Cloud Transformation

Across Teradata, the company is executing to advance in its transformation as a leading cloud analytics and data platform. Teradata is recognized by industry analysts as offering a cloud analytics and data platform with next-generation, cloud-native deployment and expansive analytics capabilities. Whether their first move into the cloud or moving from other vendors, the company helps companies smoothly move to the cloud, offering a fast path to cloud modernization with the company’s extensive cloud migration capabilities.

2023 Innovations

During 2023, the company delivered several innovations and executed transactions that position Teradata to lead in trusted AI, including:

Teradata VantageCloud Lake: The company made Teradata VantageCloud Lake available on both Amazon Web Services (‘AWS’) and Microsoft Azure, and expects to have it available on Google Cloud in 2024.

Stemma Technologies Acquisition: With a focus on AI-enhanced data search and exploration, the company expects this acquisition to broaden Teradata’s capacity to provide analytics value from discovery through delivery. Stemma’s automated data catalog capabilities is expected to help Teradata deliver an enhanced user experience and accelerate growth in AI/ML analytics, including through AI Unlimited.

Teradata ask.ai: Teradata ask.ai is the company’s generative AI capability for VantageCloud Lake. This natural language interface is designed to allow users to ask questions of their company’s data and receive instant responses from VantageCloud Lake.

ModelOps: Teradata included new ModelOps capabilities in ClearScape Analytics, which is intended to provide no-code capabilities to enable customers to quickly scale AI and advanced analytics with enterprise governance.

Teradata AI Unlimited: The company launched Teradata AI Unlimited, the company’s AI and ML experience in the cloud. AI Unlimited can enable customers to drive faster, easier, and more cost-effective AI innovation. It is designed to provide access to vast amounts of data, flexibility, and the ability to cost-effectively and securely explore, experiment and operationalize new AI use cases, at scale. Further, the company announced that Teradata AI Unlimited will be natively integrated with Microsoft's AI-powered platform, Microsoft Fabric.

Integration with both Microsoft Azure Machine Learning (‘Azure ML’) and Google Vertex AI: Already available on Amazon Sagemaker, the integrations of Teradata VantageCloud and ClearScape Analytics with Microsoft Azure ML and Google Cloud's Vertex AI are designed to operationalize AI/ML models with the scalability and performance of ClearScape Analytics. These integrations are designed to enable companies to access the full value of their data, put AI models into production, and to scale those models across the organization.

Dataiku AI Models in ClearScape Analytics: Teradata launched new ClearScape Analytics capabilities that are designed to allow customers the ability to import and operationalize Dataiku AI models inside the Vantage platform. The combination of Dataiku and ClearScape Analytics is intended to empower customers to accelerate digital transformations and deliver AI-led business value.

Dell Technologies (‘Dell’) Integration: The company further deepened its relationship with Dell by co-engineering and bringing together the company’s companies’ best-of-breed technologies, as the company integrated Teradata Vantage with Dell’s converged infrastructure. As a result, the company is jointly offering private cloud solutions that are designed to give the flexibility of the cloud with the control and security of on-premises environment.

Market Dynamics with AI Focus

The company’s target market focuses on organizations that are large-scale users of data. Teradata addresses the full spectrum of analytics needs and varying cloud adoption strategies—from cloud-only to multi-cloud to hybrid and on-premises.

The company can help enterprises accelerate AI value, including by:

Managing uncontrolled data growth: AI requires volumes of high-quality data. The company delivers AI capabilities for its customers by providing a platform that is designed to integrate and harmonize data across the organization.

Building a flexible, open, and connected ecosystem: Teradata’s Vantage architecture is designed to provide a flexible, open, and connected ecosystem to allow companies freedom to use their preferred tools and technologies with public or custom large language models (‘LLM’) to produce generative AI.

Providing secure and trusted AI: Teradata’s Vantage platform is designed to deliver a secure environment.

The company’s customers use Teradata technologies and innovations in leveraging data to solve their business challenges and drive business outcomes, which can include, among other things: AI/ML, digital identity management, financial visibility, resilient supply chains, fraud prevention, customer acquisition, experience and retention, regulatory compliance, and operational resilience.

Consulting Services and Third-Party Relationships

The company’s experienced consultants offer a broad range of services, including helping organizations establish a data and analytics vision, enabling a modern, multi-cloud ecosystem architecture, and identifying and operationalizing opportunities to ensure their data and analytics ecosystem investments deliver significant value. The company’s support and maintenance services are designed to provide an optimal experience with Teradata and the company’s managed services offerings are designed to provide an enhanced experience to the company’s customers by helping their analytic environments operate efficiently. The company also works with the top global systems integrators to accelerate innovation, enable digital transformation and maximize customer value from their Teradata technologies.

Subscription Options

Teradata offers subscription offerings that are flexibly priced ranging from capacity-based to consumption-based pricing. These flexible pricing options are designed to enable the company’s customers to reduce complexity, risk, and cost and expand their analytics and data capabilities to fit their data and budget needs.

Segments

For the year ended December 31, 2023, the company derived approximately 59% of the revenue from the Americas region (North America and Latin America) and 41% from the EMEA (Europe, the Middle East and Africa) and APJ regions (the Asia Pacific and Japan).

Strategy

The company continues to focus on its strategy of providing the most complete cloud analytics and data platform for AI. The company is continuing to execute its transformation to be ‘cloud-first’ across all parts of the company’s business, as the company consistently drives for profitable growth.

The company’s analytics and data offering is designed to be scalable, secure, highly concurrent and resilient in order to help companies solve complex data challenges at scale. The company provides a data management solution that enables enterprises to support their data and analytic ecosystems, enable consistent data across business units, and easily grow and scale. Furthermore, as demand shifts to the cloud, the company provides enterprise customers with the flexibility to address their hybrid and multi-cloud data and analytics needs, empowering operational, ad-hoc analytic and mixed workloads, whether in the cloud or on-premises.

The company is differentiated by providing its analytics and data platform offering across a secure, multi-cloud ecosystem. The company’s differentiated approach spans deployments in the top public cloud service provider platforms of AWS, Microsoft Azure, and Google Cloud, as well as private cloud platform instances, on-premises, and hybrid environments.

As customers increasingly grow their cloud-based analytic ecosystems, the company’s strategy supports existing customers on that journey with a fast path to migration that is enabled through a data fabric that connects all environments, as well as data and workload migration tools and services.

With a focus on delivering an outstanding user experience and an ability to start small and easily scale in the cloud, the company is attracting new customers, migrating existing customers to the cloud with Teradata VantageCloud, and seeing customers expand their Teradata cloud environments.

The company’s strategy is further supported by its commitment to be a responsible corporate citizen. It is the company’s responsibility to make a positive impact on and support important issues, such as addressing the climate crisis and environmental sustainability, responsible use of AI, promoting diversity, equity and inclusion, supporting communities where the company lives and works, protecting data privacy, and acting ethically in everything the company does.

Customers

Teradata concentrates the company’s marketing and go-to-market efforts on companies that are seeking to improve business performance and view data as a strategic asset in achieving that objective. The company focuses on business, analytics, and technology buyers and users. The company’s platform differentiates Teradata in industries with high-data requirements, including Financial Services, Government, Healthcare and Life Sciences, Manufacturing, Retail, Telecommunications, and Travel/Transportation. These industries provide a good fit for the company’s analytic solutions and services as they typically have the greatest analytic potential with large and growing data volumes, as well as complex data management requirements, and large and varied groups of users.

Seasonality

Historically, the company’s new contract bookings and renewals are seasonal, in line with customer spending patterns, with lower volume typically in the first quarter and higher volume generally in the fourth quarter of each calendar year (year ended December 2023). Such seasonality causes the company’s working capital cash flow requirements to vary from quarter to quarter depending on the variability in the volume, timing of invoices and subsequent collection, and mix of platform sales. Historically, cash provided by operating activities is higher in the first half of the year due to collections of the higher receivable balances at December 31 driven by the higher contract bookings in the fourth quarter and receipts from annual renewals of the company’s maintenance support agreements. In addition, contract bookings in the third month of each quarter have historically been significantly higher than in the first and second months, with the majority occurring in the last quarter of the company’s fiscal year. In addition, the size and complexity of the company’s sales transactions have resulted in lengthy sales cycles with multiple levels of customer approvals.

The company has transitioned the majority of its customers from perpetual to subscription-based purchasing options. As a result, the company’s revenue from sales is recurring, which generally increases the predictability of the company’s revenue and the durability of the company’s cash flows in the future. The majority of the company’s customer contracts are based on a blended pricing model, which provides a fixed capacity but also offers the customer optional consumption for times when they experience increased activity.

Sales, Marketing, Customer Services and Partners

Sales and Marketing

The company primarily sells and markets its solutions and services through a direct sales force. The company has more than 80% of its employees in customer-facing and/or revenue-driving roles (including sales, marketing, consulting, customer services, and product engineering).

The company supports its sales force with marketing and training programs that are designed to:

Grow awareness of Teradata as a hybrid multi-cloud leader, highlighting the company’s technology leadership and innovation, differentiation, cloud, and analytics and AI expertise;

Lead customers on their migration to the cloud with the benefits of multi-cloud and hybrid cloud capabilities, and then help them easily expand their environment when needed;

Create demand for, and adoption and expanded use of, the company’s technologies, including Teradata VantageCloud Enterprise, Teradata VantageCloud Lake, ClearScape Analytics, and Teradata AI Unlimited, as well as related services; and

Educate and enable the sales force with the skills and knowledge to deliver the company’s value proposition.

The company’s brand messaging is intended to highlight Teradata’s role as a leader in AI, analytics, and cloud data and on the company’s strength as a leading connected multi-cloud data platform for enterprise analytics. To support the company’s growth objectives, the company employs a broad range of modern marketing strategies, including programs designed to inform, educate and generate demand with customers and prospects. These strategies include the company’s global website, digital marketing, demos and trials of the company’s software, webinars, conferences and events, public and media relations, social media, a customer reference program, and targeted account-based marketing.

Customer Services

The company’s global customer services organization is dedicated to creating and sustaining an optimal customer experience and working with the company’s customers to help them achieve the best use and outcomes for the data that they produce in the company’s Vantage platform so they are empowered with the full potential of Teradata’s data analytics solutions. The company’s global customer services organization is consisted of cloud operations, customer support, customer experience, consulting and managed services, and customer education. The company’s customer services organization supports the company’s cloud-first strategy by facilitating a customer’s migration to the VantageCloud platform and managing the day-to-day operations of a customer’s VantageCloud environment. This organization focuses on delivering business value throughout the customer journey, enabling innovative use of the Vantage platform, extracting additional efficiencies, and maximizing customer impact and satisfaction—which are designed to retain customers and drive greater consumption of the company’s technology.

Strategic Partnerships

Strategic partnerships are a key element in the company’s ability to leverage the value and expand the scope of the company’s data and analytics platform offering in the marketplace.

Cloud Service Providers: Teradata has established partnerships with the top three global public cloud service providers: AWS, Microsoft Azure, and Google Cloud. The company works to continuously strengthen these strategic partnerships so that Teradata can provide companies around the world access to Teradata VantageCloud Enterprise and VantageCloud Lake.

Alliance Partners: Teradata has a focus on working collaboratively with independent software vendors in several areas, including AI/ML and large language models (‘LLMs’), tools, data and application integration solutions, data mining, analytics, business intelligence, and specific analytic and industry solutions. The company’s intention is to provide choices to its customers with partner offerings that are optimized and certified to work with the Teradata Vantage platform to deliver end-to-end analytic and data solutions and to provide comprehensive capabilities that support the customer’s business goals and work within their analytic ecosystem.

Systems Integrators and Consultants: The company works with a range of systems integrators and consultants who engage in the design, implementation, and integration of analytic solutions for the company’s joint customers. The company’s strategic partnerships with select global and regional consulting and systems integration firms provide broad industry and technology expertise in the design of business solutions that leverage Teradata technologies to enable enterprise analytics.

Intellectual Property

The company owns 594 patents in the United States. The company is also the exclusive licensee of four additional patents in the United States and counterpart patents in foreign countries.

The company owns the Teradata word and logo trademarks, which are registered in the United States and in many foreign countries, as well as other trade names, service marks, and trademarks.

Sources of Materials

The company’s hardware components are assembled and configured by Flex Ltd. (‘Flex’). Flex also procures a wide variety of components used in the assembly process on the company’s behalf.

Competition

The company’s competitors include established companies within the company’s industry, including Amazon, Google, IBM, Oracle, Microsoft, and SAP, which are well-capitalized companies with widespread distribution, brand recognition and penetration of the company’s product platforms and service offerings.

History

Teradata Corporation was founded in 1979. The company was incorporated in 1979 as a Delaware corporation.