Q4 Earnings Highlights: Teradata (NYSE:TDC) Vs The Rest Of The Data Infrastructure Stocks
As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the data infrastructure industry, including Teradata (NYSE:TDC) and its peers.
Generating insights from system level data is an increasing priority for most businesses, but to do so requires connecting and analyzing piles of data stored and siloed in separate databases. This is the demand driver for cloud based data infrastructure software providers, who can more readily integrate, distribute and process information vs. legacy on-premise software providers.
The 4 data infrastructure stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 28.2% since the latest earnings results.
Weakest Q4: Teradata (NYSE:TDC)
Part of point-of-sale and ATM company NCR from 1991 to 2007, Teradata (NYSE:TDC) offers a software-as-service platform that helps organizations manage and analyze their data across multiple storages.
Teradata reported revenues of $409 million, down 10.5% year on year. This print fell short of analysts’ expectations by 1.5%. Overall, it was a disappointing quarter for the company with full-year EPS guidance missing analysts’ expectations.
“In 2024, Teradata took decisive actions to improve execution, and met our guidance ranges for both Cloud and Total ARR. We believe we are well positioned to return to growth this year,” said Steve McMillan, President and CEO, Teradata.
Teradata Total Revenue
Teradata delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Unsurprisingly, the stock is down 34.1% since reporting and currently trades at $20.35.
Started by Shay Banon as a search engine for his wife's growing list of recipes at Le Cordon Bleu cooking school in Paris, Elastic (NYSE:ESTC) helps companies integrate search into their products and monitor their cloud infrastructure.
Elastic reported revenues of $382.1 million, up 16.5% year on year, outperforming analysts’ expectations by 3.5%. The business had a strong quarter with an impressive beat of analysts’ billings estimates and EPS guidance for next quarter exceeding analysts’ expectations.
Elastic Total Revenue
Elastic achieved the biggest analyst estimates beat and highest full-year guidance raise among its peers. The company added 40 enterprise customers paying more than $100,000 annually to reach a total of 1,460. The stock is down 23.1% since reporting. It currently trades at $78.
Founded in 2009 by enterprise software veteran Tom Seibel, C3.ai (NYSE:AI) provides software that makes it easy for organizations to add artificial intelligence technology to their applications.
C3.ai reported revenues of $98.78 million, up 26% year on year, exceeding analysts’ expectations by 0.5%. Still, it was a mixed quarter as it posted a significant miss of analysts’ billings estimates.
As expected, the stock is down 26.3% since the results and currently trades at $19.50.
Started in 2014 by the team of engineers at LinkedIn who originally built it as an internal tool, Confluent (NASDAQ:CFLT) provides infrastructure software for organizations that makes it easy and fast to collect and move large amounts of data between different systems.
Confluent reported revenues of $261.2 million, up 22.5% year on year. This print beat analysts’ expectations by 1.7%. Aside from that, it was a satisfactory quarter as it also produced an impressive beat of analysts’ billings estimates but revenue guidance for next quarter missing analysts’ expectations.
Confluent had the weakest full-year guidance update among its peers. The company added 35 enterprise customers paying more than $100,000 annually to reach a total of 1,381. The stock is down 29.4% since reporting and currently trades at $21.26.
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