Teradata (TDC) 6 May 242024 Q1 Earnings call transcript

Good afternoon. My name is Joe, and I will be your conference operator today. At this time, I would like to welcome everyone to the Teradata First Quarter 2024 Earnings Call. [Operator Instructions] I would now like to hand the conference over to your host today, Mike DiLoreti, Vice President of Investor Relations and Corporate Development.

You may begin your conference.

to First welcome Earnings and afternoon, Teradata's Quarter XXXX Call. Good Officer, Executive Teradata's Claire lead Financial our President McMillan, outlook. Officer, results Bramley, will and financial and Chief by Steve followed Chief will discuss today; our Teradata's who call

and includes forward-looking information that Our statements. forecasts are discussion other today considered

earnings are duty While described are the will release. we materially. and and the to to expense actual recent filed release to with measures, our differ and a in other made within that number or filings, they reflect expected our most as ended XX-Q that of these statements be items such uncertainties SEC undertake XX, in cause certain compensation outlook, of update discussing today, March which risk we in for obligation and earnings call, could next exclude are them. On today's items factors These today's statements described current SEC XXXX, few our to our subject no the risks and financial Form is in non-GAAP quarter as the results be the including days. forward-looking XX-K special These Form stock-based

such as on today's comparisons call We will discuss growth numbers results discussed cash currency. all and basis. other non-GAAP XXXX Unless flow, are constant constant also a currency revenue in free items and outlook ARR and stated non-GAAP otherwise, on

our available our Investor this is measures of at on in Relations will A website GAAP earnings our on call which of investor.teradata.com. to non-GAAP conference today included website. of reconciliation be page is release, A accessible the later replay

over call And now I will the to Steve. turn

of QX, X% our and our our us. everyone, for currency. Today, billion initiatives with in results comments was with will outlook. Total and customer new in growth changes leadership an down to success. Thanks, Claire examples update conclude recent financial ARR our some results, will $X.XX I Mike, detailed and quarterly start constant team, joining thanks, on on

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we we first I'll remain to a are long-term part an positive In do maintain the will to actions for customer net year. of continue that taking the as expect are expansion more success our We relationships. taking and view moment, total rate outlier, success customer about the we XXXX address actions

non-GAAP our total earnings $X.XX, per generated range. of at quarterly we Finally, of the share end

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monitoring. company predict patients. ClearScape run care decade-long on Analytics Azure early a became to risk was and health and solutions patient AI on-prem in digital its Python an and customer to clinicians patient database models adopter to health Their using U.S. for A remote deliver identify population of Teradata

examples better foundational our patient seen to with forward cloud their a and just technology. We the care our to hybrid to customer health a road recently As These few our mesh our and briefing transition C-level customers announcements and data the layer. as OTFs OTFs most business to and held we remain a data. data the believe ecosystem single announced excited their capabilities on AI business Unlimited and including this as Unlimited, for aligning the is of walked their AI industry We analytics without we are to in cost priority XXX% enable leading regulatory and needs. We this and This preview trusted the Iceberg to developers, a lowest-cost time outcomes. engineers work programs them with Unlimited, both increase with result, AI They job us improving compliance has operates in highest are over about ML conduct a apply in we connected engine to Teradata that outcomes, major QX. as engagement, functionality to committed support for in seamlessly scale the we value to broadens use Lake away to financial and see of the and AI. with leveraging we AI, mission-critical our allow goals. into for and best first from AI their our that ClearScape to deliver our AI least-risk cloud-native data, Analysts, looking needs. selected ability us. location explore the Delta innovation for designed partnering for map well VantageCloud investing and AWS and for all their Unlimited. XX that looking example We support fastest, Foundation institution in Companies data are our next AI ability deliver Lake at Linux at to storage ClearScape's execs, accelerate a announced the their that open drive the operationalize AI experiments our as An formats, is engine scientists customers environments. Along disruption, trusted for production value to They VantageCloud QueryGrid marketplaces. to ability and that Microsoft have with recently Apache in countries. and round on-demand platform made foundation table public technology strengthened open We at to is risk lowest and cases and store moving with best the possible to quarter

confident already announcement, is AI with understanding customers to With in care a predictive AI In data, better open customer connected experiment quality behavior strength with of parallel and we believe and is offering unparalleled enhances health another, for Our integration. From and seeing are value. airline one that Unlimited this OTF order a coupled the major exploring performance Analytics, adding offer gain we and power a different ClearScape processing with is how ecosystem management. their we leveraging major Unlimited, we data Unlimited of data high to AI private robustness experience. In uses, of models. provider choice are we in most of in the sets and preview shared the optimized are example,

systems employ for and open Because users the commitment trusted connected strategies AI sets enterprises use freely to can Unlimited to workloads that this our at up the new announcements and to These opportunity allows highlight affecting production AI experiment on data a new scale. cases is approach modern VantageCloud. explore without and fully on-demand, execute

continues also acknowledged in be technology Our the to leadership market.

strong the partnership and road supports superior our our language report deployments. and map, enterprise Teradata which in excels fabric recently highlights Forrester on report on fabric large ecosystem its data that leader It named focuses notes fabric. AI that The us complex additionally and models. large, data acknowledges

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expect drivers positioned benefit customer governance and we analytics, Machine we through security in real-time big cloud migrate cloud the technology ARR as data Learning, this and Our firmly expand adoption, non-cloud the data and progress ARR is streaming attract from and AI at base believe and and growth to secular analytics and cloud, well embedded In to time, total term, new the to reaccelerate to logos. enterprise scale. Over we growth customers year. near our to ability our in in

As detail, describe growth more for provided. XXXX Claire within the we've our outlook in ranges will remains

growing not line, capital. the flow we and expect, protecting focused but on shareholders on as and also cash return only profitability, Importantly, top on our free of are

technology now margin, differentiation, equally our our We will free continue invest to in Claire. and we committed are and flow turn call return capital over targets. I achieving the to to will

in growth and constant rate Even ARR activity cloud afternoon, healthy lowest of QX first traditionally from growth XX% our at quarter, is Thank expectations. by supported expansion you, Steve, cloud below currency, and quarter, the migration In slightly were good net growth the though everyone. sequential XXX%. year-over-year remained expansion a

quarter, decline X $XX February we ARR basis, on The a the point. within in we driven As erosions. to the currency expected provided on-prem ARR, sequential percentage from had specific first in range The million of decreased was by a total X%. total by currency X% of constant impact we

our Let me now details financial starting more revenue. results, quarterly on share with

$XXX First quarter recurring revenue, and in from in X% headwinds year-over-year upfront million, revenue constant as and by the currency. cloud erosions on-prem was flat anticipated saw strong currency. growth We reported revenue, offset growth

total was year, quarter a $XX was million X-point the revenue driving as QX percentage revenue million revenue of in positive upfront a year-over-year. Recurring $XX XX%. of Net versus headwind last in a

X% in and primarily to and year-over-year currency. lower reported revenues. year-over-year consulting The First down quarter as constant change $XXX revenue is million, X% perpetual total down was due

X.X profitability Total was Both cloud with million flow by a Operating offset therefore, due by was revenue, still the $XX income to higher on continued We working million free remaining of approximately margin in the change year-over-year the in were lower dynamics, from largely and cloud and million cash billings. $XX which $XX impact net gross outlook, lower margin expansion margin the full our margin a track share cash due of is to and with per million quarter, and to profit to quarter. we $XX these operating was operating $XX margin approximately at by land XX% basis of capital are we None cash part year outlook rate. Non-GAAP free within of stock committed of least gross percentage the free diluted Moving earnings pleased were flow generated in form flow. million $X.XX, XXXX remain We to share the was on million shareholders is repurchases. our our at million XX.X%. repurchased public first of approximately impacted or shares. our cash $XXX million, top the lower $XXX flow quarter, range. We and to returning in of profitability. in free end range. In

year outlook. our XXXX Moving full to

currency As a reminder, and constant for outlook our metrics. the ARR ranges are in revenue

end We customers continue to expect lower of provided are as February, currently ranges, come in driven by but the retaining cloud. the ARR the ranges total to migrate we the at expansion on-prem in low to

planning total we as in confident us remain the range with relates migrate earnings to a of in the outlook dollar it the of and strong list However, the refer Cloud year. Relations cloud our our QX anticipate ARR, the to midpoint to due and to provided. complete acceleration pipeline on previously throughout of cloud. Please We expand ranges XXXX our Investor customers ARR of growth presentation website for

QX fourth We flat in from QX. and to the or the the relatively total be ARR quarter growth, expect to quarter of more strongest line to historical deliver anticipate seasonality. We with be XX%

XXX using points Some XXX points headwinds of cloud XXX the April is to on January of ARR; XXX rate, basis basis incremental updated currency year-over-year compared modeling $XX.X revenue, total and rate; points average of end assumptions million; approximately approximately other an of points outstanding basis expense the which shares for we on anticipate on XXXX approximately basis weighted million. $XX ARR include:

project our approximately non-GAAP to tax of XX.X%. continue rate We

XX anticipate growth. outstanding to per XX% We $X.XX we non-GAAP the of free remain cash approximately focused the to shares XXXX, of in million. share We the profitability of project rate be range quarter second the highly and flow weighted for tax $X.XX. outlook be our and Regarding diluted average non-GAAP on earnings to

growth, increase generation. and to available, and levers further gross beyond, multiple expansion, optimization top margin flow including improvements line expense cash we As capital working look free operating to we have XXXX

We growth, continue to AI, that including long-term invest demand in areas perception. creation drive will brand and

of free path the of goals ARR operating on range in $X still million. in XX% the the cash are achieve billion and cloud at low flow XXXX $XXX We and to least margin at least

it revenue ARR growth to longer achieve However, slightly our we expect XXXX take total and will metrics.

and in profitable to about your differentiated optimistic with remain strong very this much customer for time growing product continue capabilities and loyalty, today. ahead. Thank therefore, We operate opportunities you growth the market

the questions. please call Let's open for

first Morgan The with Erik of question Woodring Instructions] Stanley. [Operator line the is from

ARR Steve, total you cloud of bit total the ARR expand the -- year. now kind start just slipped end Clearly, you we the maybe demand for ranges of mentioned Can a closing on if you. you're the deal can for full your broader landscape. but with in guiding to one of and deals, lower

So what holdups? to a you're boots are kind maybe So seeing any April. customers? love the that any ground I of months hear have just and into from follow-up. decision-making how continued Are you on longer hearing ago? cycles then And kind new has of I'd of X Kind than there what are behavior

still and demand Yes. did full for call. elongation refer really the into seeing that's Thanks, that last our hasn't the guide, year Erik, to a positive been question. earnings full very We're environment in changed. across factored some quarter's And year. deal We

and As year involved our more into customers, data people decision-making in those a been we full point our decision factored that becomes that customer But has see base. AI within journeys guidance. getting inside analytics strategic our

and expectation, are because perspective midpoint supported by outlook below it a really that cloud Although that we in platform. have our from QX our is was the confident pipeline the cloud in strong of we the have interest slightly we

turning then, just on you, ask And cloud to All maybe question maybe side. similar right. Claire, the to just ARR a

down in $X about quarter, last cloud obviously talked expansion million we sequentially. slight sequential I think ARR about dollars,

or kind kind XQ were in and just unchanged? little XQ more of in that that as you headwinds if factor some we love the and keeping into the can the me. you obviously, for why cloud into of that dig metric just underperformed faced year of of and ARR for maybe changes kind unpackage full go the then, bit XQ? What specifically can What factors So a main quarter? Would slightly midpoint you

Yes. Thanks, Erik.

growth digits expecting to as $X million on of to our our So low single did anticipate grow. our kind constant digits point, as currency a the we we in the mix international we currency see slight about cloud from came QX. continues in ARR as regards are of is negative mid-single impact your with to We actually business what into to quarter

given in was constant low dollars slightly a then basis. we few expecting what to strong growth It's QX currency slight anticipated decline. lowest to always a is So pipeline materially that, overall in. believe did It our we growth have ability Steve below hit of point will the your a a impact be that see support currency And to that. net that that the reported on were midpoint we single-digit we mentioned, as quarter, below of to guide. And million don't our coming

keep to So enables midpoint. to able that's an always us We acceleration what that of be growth. that anticipate

see we that. So

growth seasonality XXXX. is the what we're acceleration QX, approximately line remaining we've expect XX% QX so and QX in anticipating with in QX, with same our in historically, in QX, We our historical seen quarter biggest

next is from question Mohan The America. the line Bank of Wamsi with of

wondering your below was I expectations. expansion I statements, impact. activity this down in migration as But Yes. point also prepared go cloud again from trends. was the slightly FX, you called ARR to Obviously, growth think out sequential Claire, sequential you just said maybe, on an

comments sort of migration you your point reacceleration, do Now look in around and expansion. at I confidence when to

just hesitancy or of the maybe we we spending and as there the through conversion will sense see, comfortable should pipeline be year? us what's with that pipeline about that convert more more of in feel that that area? that confidence maybe you pause the won't able Why course that of kind driving you to of some give So could be you the go

Steve. if Claire Thanks it for take any color hand she's question. it's I'll got and other add. Wamsi, then the it to to

cloud a to going And broader faster recognize our grew step I market. says important than the ARR to in we we we're XXXX, XXXX same. think take that as do that outlook our it's the back,

One of expand in over And and couple have is our base to to our we in then to that the us, cloud. once cloud growth overall business to that's migrated. A growing of our confidence substantial impact once they a are with with and cloud Teradata lead ability things going customers they've great rate. us So time, be to that that get we're more tend that business the to going conclusion.

great do thing so for The us. best for terms recognition major path building pipeline execution. want great in they are cloud, we cost, we've to customers that cloud risk, if I in best to the and our new of that's a the way There's we're with And lease overall got is pipeline to these take enterprises pipeline a cloud of lease the quickest capabilities other the think migrating migration advantage the that path that. AI/ML in to definitely terms of the our our still

into always QX. our largest and our Claire good execute as half environment a As that our year good to move is -- of quarter. pointed of out, do more business it. we seasonally in market QX a the to tend second XX% But than we're We always the pipeline seeing

had Thank of this you expect sort previously? Appreciate traction? where size over pipeline. $X the well more In to or remarks, billion, sense you your XXX Should is part you're to some anticipated Okay. also Steve. And your important us now added in logo we you've of sort seeing give your of any seen continued than net traction to logos? logos what noted Can new getting prepared bridge new more you comments. of the the larger new any you,

using pipeline in to Yes, logos. to be with they to over They any new time. it over quarter, move lessons added we lot really we're great those into seeing shape our of we've to dig in we think months, to business last we by and was win global there's in and the traction see few not drive grow continue into and an we new learn forward. activities, in the If terms start example generation great bringing that we bit, to change logos to that our can XXX motions small more logos in tend partners, some in demand the that there and but of logos little seen as new partner sales a Americas relationships as the a international new

Unlimited, I on prepared we buying gives with a the AI to pipeline Teradata of to for logo new refer the like the which an remarks, a think new of set us with and set offers ability users interact new platform.

being be only is being think I in materiality with in terms logos. going XXXX a query offering ISPs our -- new to cloud migration of fabric of being from Microsoft From perspective, one engine the exciting is expansions integrated and a activity. natively be integrated really perspective the into still to driven a generating by going business though,

The line Ma next Guggenheim. Howard is with of question from the

need and hoping to in second about that just you that your And mostly guidance, as mentioned comment million versus QX, Steve which cloud want and migration. $XXX ask to was add of you the of I you I X terms you half Claire, in about about implies expansion could ARR in so quarters. in

essentially then material maybe acceleration expansion maybe? that side, starting best flat growth the will year side, next On And are pricing benefits the renew? expecting migration year? a assume be become cloud then should rates ARR you then contracts to and an perhaps expansion Or subscription contributor on in as any this at we

Yes. question, for Thanks the Howard.

our XXX%. this rate acceleration We of net an saw in a expansion So rate. quarter we're again not confirm, net modeling good just expansion to

are get we would mentioned strong of XXX% approximately to existing even XXXX of we seeing to migration. our we rest that guide us out get pipeline then the model to billion our the And come We in to pipeline from and really remarks, as midpoint customers cloud. model as we number to in as The increasing migrate also large to XXXX. with out and the to a to expect model of prepared we continue enterprise want the $X

to So regards your that's subscription, of once regards to cloud, anticipating we be anticipate we're take comfortable into the impact those acceleration. To to point obviously, about feel from with we migrations expansions you not with account, an assumptions, subscription positive. subscription, to still why the

but still you've single the subscriptions, expect taken in low impact growth out of migrations. So once regards to we with digits the

that Okay. terms a either of about I to ask or or AWS. there margins? that Are I of either follow-up impact for revenue out Steve. have with would gross And agreement just strategic the you worth calling for wanted economic the in collaboration any quick agreement changes terms

Howard. that Thanks, happy in strength, go really continues It strength from really environment. to upon business relationship Yes. and Yes, our the we're cloud felt with AWS AWS. growing to with it's

One cloud is margins discussed of forward. relationships the And strategic continue scale expand continue and AWS how have always that us and to of going thus is the our will of terms agreements with we it one our things better that the opportunity agreement hyperscalers business, in those. we the it see as we and to element another we as give up out scale cloud have to strategic

is Nehal next Chokshi The of Northland question from with the Capital Markets. line

I do have questions. X

why you little activity give is a bit one on Claire, that, expectations? was below slightly migration can First and detail expansion more

Yes, certainly.

significant in our growth by expectations kind was QX. below mentioned, million expecting a between few split of So we equally a slightly It migrations and dollars, expansions. was yes, as that weren't I and

see, you As continue a can we rate. see expansion strong do to net

to So that is the is an be concern, we issue as throughout year. that growth any believe our and it's doesn't not us going cause we -- anything accelerate

in but expecting few were that close overall standpoint issues potentially sort or So an just environment outlook -- a couple changes to and QX, we there no with and competitive anything. potentially no from here deals of a to regards

compared dollars and a puts few driving million the of kind as takes just would So see we the usual our quarter, to in expectations. in lower QX

sticking to flow you into Claire, then you, in you continuing confidence levers drive cash And with multiple free give mentioned 'XX. calendar growth Okay.

are actually being or those line margin in the being expansion, working improvement? have levers driver levers. the capital biggest gross do X expense confidence of X that greatest optimization What You operating listed you top growth with

drivers. how those I'm -- going actually, operating of we're them No, to mentioned my of linked confidence, expect our of all I in improve can Yes. terms margins. confident we to for X across

regards as XX% to confidence I good the with have low And in XXXX, -- by our to and very be so I margin margins increase and operating get range mentioned, to expansion. is driven cloud that

to margin continue as see within cloud, expansion. size continue our we scale to increase see that As we and we

So confidence me that. that gives good with

which regards great we see that. we conversion a we regards record with DSOs. have growth They're dynamics, is days' cycle. example, OpEx, driven XX a gives very -- improving, with strong cloud, I as by range. We to the opportunity in working line going top our have optimizing track still regards especially to to kind of to in the small growth in be with see We capital low for then the me a grow. continued And confidence cash

we think days still time improvement over get well. as in I our few DSOs a can

say expansions across would I operating the from margin of drivers confidence So those top growth, all and the biggest have great line but come also do drivers.

is question next The with from Raimo Lenschow Barclays.

Or in ask Unlimited, for pipeline the partnership. is workloads format McMeans you newer it announcements, is Raimo. embedded This any giving of your open AWS in reacceleration AI wanted impacts to support, guidance? for of the Are confidence? some what your first Sheldon existing you're I seeing in existing table on that's about more expanded these

the supporting announcements both really the there in for our you for a AI new table enable workloads facility and are is table ecosystem. a open Thank is and AI about Teradata differentiated super into perspective. us an Yes. support we Iceberg users to to believe going the format. new most Lake that's industry, The We questions. open attract ecosystem Yes, certainly and the Teradata Unlimited into capability Unlimited Delta excited from formats format around

uniquely or a impact have ARR and that pipeline for strength pipeline of and so that our is have of of overall conversations And expansion an out, VantageCloud the customers, as but and these when meaningful technology value we discuss map the as creating had for across new the I can environment offers accelerate It's us the total added total XXX to us with and impact and logos that months. existing move the pointed see of cloud to into catalyst logos. fueling a over our put road enabling our a VantageCloud also ARR, terms proposition. customers our think strength to those that's we those our was In we differentiated those in last few new we

offers landscape have made technology over the last of that available and that about couple excited months. the we really the we've So

quarter-over-quarter quick Great. expected QX? why And Or a is a then erosions that to headwinds is QX? follow-up. relatively flat from And fall in Did the QX? still play fully is impact expected ARR of out to some that -- there large in couple expected in is be on-prem

Yes.

from are see ARR -- customer an QX, base, impacts total From much QX. we terms will overall we pretty we -- we for So as executed ARR in we of our a perspective expected. in saw what in the some

change we pretty call, full There's XX landscape, last noted consistent. good faith year and in in have our terms days the we As terms it's of in been quarter's still last no the guide. in overall of

ISI. Evercore of line the Chirag from is with question Ved next The

to from Good hear you.

companies to companies modernized stages want as this capabilities. many don't start implementation were heard these of on of We've continue So overall, the for quality AI the we dynamics inroads and data get that AI market whether these incorporating tailwind initial cycle, required many of was as a wanted whether through making on Teradata have you data companies to support stack addressing new GenAI issue level there I the your to ahead? looking view today. today how just in market this some thoughts

Yes. Thanks for the question.

out we marketplace the warehouse, the with that data data see most but the that have combine where can way that their playing enterprise is data leverage also is from exists, I and data trusted modern a that which going late deployment an underpins So a platform enterprise a lake having AI organizations stack strategy in think construct in our with is house a that really construct, be choice also and data winning formula to platforms of certainly it of going terms forward, the options. and is broadest data the for that technology

letting is analytics environments to to something costs of control. and That those The those that able models at governance advanced that run other without financial out be very is is GenAI to. deploy efficiently AI analytics accustomed really thing something Teradata scale very in is in important

complex into terms moving differentiated production has these scale. capabilities at most platform of in of some Our models unique

health in against looking multiple Some organizations care have at examples prepared models outcomes it they solution that traction the all the be Teradata the terms scale, to data we that does of industries from customers with at to Teradata to and multiple data patient actually. sources great trust some governance were and we're then effectively, by that all something enable for data remarks, enable getting improving always that the perspective, now of patients running trusted just really do has just added looking their discussions in combine having have strong that. And that from data that's in and our that ecosystem. And our say, at across in, really massive to been we're have the to do a that's lineage them AI a capabilities, in of we from that governance a organization,

a really technology So perspective. placed from well

I for think think what and solution customers from today. to is deliver the are what point looking that a you that's brought Teradata I up, can

question next with Tyler Radke The Citi. from is

for [indiscernible] is This Tyler.

have ARR and was around around hear was erosion? trying going lot already, provide a on-track is and go for the this questions this to have taken of for erosion. this some expected year. if that But you investors, I'm not on as that for My comfort We the to question an erosion so Could event? of actions to seek onetime what accounted already you've outlier they're we is there. some Good a

for Yes. the Thanks question.

factored versus to As at is we outlook for all any the see year, our year. don't look and ago, days XX changes that full outlook into today erosions the we for our

absolutely on now engaging run really of for we're And customer, I created that back, how detailed world's a we have and As very engagement, our And success disciplined have we level and we approach customer do the enterprises. function the those mission-critical a that step We a partners on inside telemetry years what's says most going the what's customers. inside few what's largest complex they can going a we workloads on help, organization. ago. take for have the a in understanding save going terms environment, understanding of of

XXX-degree really have the of great what's and a customer view happening. we do So

XXXX, and being And improve XXXX into we so of a do outlier that as an on we see and to do rates, all the anticipate we've renewal handle our got to levers that. to

I That the aged around time excluding on like for slipped sense. of the some that half a like 'XX, looks does back the how deals the confidence same year of versus a for specifically have your Got follow-up it. renewal renewal from makes year, for Claire the ago?

Yes.

visibility we year. XXX%. transparency Steve just continue expansion renewals mentioned, we that as at to the a with with expecting seen And we're and were especially we seeing we strong have to and So net regards saw, in QX, We've that are traction that that with remains pleased throughout rate strong renewals. the the

So from that renewal a we're mentioned, assumptions as And as I which out all we're of XXX% moving also standpoint. approximate us obviously a the factors modeling, range, good year. in in gives our indication kind of the

at cloud XXX% we're any considering we're significant we're from modeling changes at So I I fairly seeing don't running standpoint, modeling and a and ARR we're conservatively that currently approximately XXX%. think think -- or

for of the that, range happy in the gives midpoint that and So year. with us for the confidence that kind full

Cole The from Cowen. TD next Erskine question with is

Cole is of year? line the that changes repeat making execution as if the Rich kind is any about want that of the for talk a year to last move Derrick. and I second drive This towards see across make half sure sales we execution of on there's rep see deals Steve, finish better and and just don't get to

Yes.

up ago and our our Petley EMEA lead were So region. He Teradata that, to thanks appoint joined years delighted CRO. for to Rich. bringing We thanks Rich for as over X

in executing of had terms EMEA only his had logos, adoption of and the all growth the in in that, disciplined promoted results that the We're execution our management. overall as in not us the of ahead inside international his in fantastic. expansions business. of marketplace, has been growth of growth But partners, migrations X delighted sales looking bringing deal to the that over and know our to does region terms super meaningfully new and has the our he's we forward we actually He in really we're knows a demonstrated technology, sales as sales. the this rate that knows role. He to our in to time, during success And success predictability him last Given brings in business, run have EMEA, we've him of execution. entirety executives delivered of driving to of capability years. Rich people global all our company the approach

follow-up. one just then And Great.

On Iceberg, that? storage open headwind good on anticipate guys revenue the any it's you to format, table on from see. Do

Yes.

technologies going be what storage capabilities. and think see different requirement deploy utilize we to is lots I there's to a storage of and

our And going to move right utilization as increase of query to ability We stores right a certain native up increase workloads, data massively store power inside support our drive do Canada more ability native table open customer of object more to data no is. to query for insights of data of access be massively the and will format warehouse. their and of we the workloads, that previously. a gives these ecosystem. I they in be weeks choice. stored the for see stores, could data is was and one built customers capability they structured It the to us that couple in enterprise platform talking order and to the forward, By certain format. open table And banks source have ago, Teradata into the an it of utilize of of as than format, open in us than we the the even choice. So the the engine to more at matter data combining open and we from Teradata, get have going object data going for for expansion look right it's Teradata the amount inside platform an table the it's Teradata magnitude, storage we where absolutely to high-performance

and cloud ARR market to leverage grow something it ARR see total. can our our we as total and So overall that expand addressable in going we something that's to

the question Citizens with [ next JMP The Crookenden of Oliver from is ]. line

Great. I'm for on Pat.

you So one wanted examples of gave. the touch to I just on customer

major considering they deal a then competitively? heavily? customer existing is were wondering a selling I'm competitors financial that main that or what noted an logo that You Like VantageCloud. are selected institution in migration? points And new the

did least to risk competitive the an which And the environment least competition. the situation existing saw that it because complexity was value customers are And they the choose a be migrating That also QueryGrid to compared ClearScape that and saw truly our the us. lowest VantageCloud it the migration their cloud the -- they of and of they functionality, did would Analytics cost, was was solution. as reason migration they with differentiated Teradata real perspective. a from where They

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of line with The RBC. Hedberg Matt next question is from the

on Hedberg. Simran for Matt is This

in Or I from targets me. of are the double-click total to being and billion ARR, in targets? XXXX embedded and XXXX? out. revenue further expect XXXX you one you seeing target Just you And pushed on cloud to achieve delayed this the achieving these could $X beyond And still on they the what ARR half time? in these gives what wanted out? Do are achieve confidence to be assumptions in just are that then on that targets back

first your start of Yes. part the I'll back and question, I'll go part. Thank second to you. the then with

slightly is we think $X prudent and rate assumed, roll as there to out especially we've it's expansion in forward from but ARR, mentioned, that approximately XXX%, approximately we running XXXX above XXX% cloud done net regards with a XXXX. to of billion into as that, what move So now assume the to we're XXXX I

mentioned pipeline to trend we're trend the lower I a of 'XX and to on-prem kind stronger billion ARR. With we're in at able of strong the to and of out. customers. deliver in that strong pipeline going think to 'XX our because into confidence I a XXXX, and cloud gives migration this for $X similar in us as that migrations a regards lower fact ARR And total total end continue also slightly growth larger given the that have and that expect we of our XXXX, expecting main the be and these is existing and seeing we XXXX, terms driver guidance, ARR, from in

we with longer but further So activity. as of that, looking lower we're kind into the cloud, net But that term, future. over out get opportunity, growth expansion given the to give the that 'XX, seeing as that know customers from migrate continues rate more expansion maybe on-prem those out 'XX we on-prem we us and to into much

an coming out in exit into and from migrations 'XX So XXXX. 'XX we we'll 'XX progress as expansion that additional see those

our I rate the that out into thinking rate scale we've ARR, remember future growth our as to and the look overall than the cloud as accelerate growth total beyond. more XX% think always is of said becomes you about help factor becomes that we we fact to other our that when increase as going to we XXXX, is and and 'XX as total exit expect which you're look

applies. still that So

looking we're forward seeing total from that and 'XX so to And beyond. growth uplift

the would I time. remarks. McMillan no are this at for back Steve final turn his There further over to call questions like to

for we build rate joining year. the to today. cloud. growth We're in as customers. build with Thank differentiated our rotates value analytics AI. got cloud base on driving expand total on the of for We conversation We're ARR cloud the very joining Thank our you, have accelerate a AI, absolutely we've customers for much and right our and as we us solution growth confidence platform operator, for position trusted us thank customer everyone, And and ahead you throughout believe our today. much, the and to looking also data and reputation our you about as healthy with for going very that enterprise scale we

today's This call. concludes conference

may You disconnect. now