Teradata Corp at Barclays Global Technology Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Raimo Lenschow - Barclays Capital Inc. - Analyst : Let's start more with a bigger picture. So you have your own [bottle]. A lot happened over the last few weeks with election, et cetera. Like how does it play out -- how has it played out for you guys in terms of like did the election impact anything, and we just started chatting here without the microneedle repeat it. how is the world kind of out there for you?

Question: Raimo Lenschow - Barclays Capital Inc. - Analyst : That was my next question. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 11, 2024 / 7:35PM, TDC.N - Teradata Corp at Barclays Global Technology Conference

Question: Raimo Lenschow - Barclays Capital Inc. - Analyst : Is there -- is it a little bit like old time thinking from us as well that we keep asking about budget flush because if you think about like how corporates are buying these days, the subscription, consumption, that sort of stuff. It doesn't feel budget flushes kind of that much will think anymore really?

Question: Raimo Lenschow - Barclays Capital Inc. - Analyst : Yes. And it's like maybe kind of slightly broadening it out a little bit from a time horizon. If you think about Teradata, look, are not been covering you guys for like many, many years, I have to see that the last couple of years were a little bit more uneven. Can you maybe -- and some of that is probably the cloud migration because there's a lot of stuff you kind of guys that is changing, but you have to learn as well. talk a little bit about like how the last couple of years kind of played to come together for you guys?

Question: Raimo Lenschow - Barclays Capital Inc. - Analyst : Can you talk -- maybe kind of remind us like if someone goes to the cloud or kind of that like where did the hiccup start? Or what's different if you do that versus like the old, you just shipped a new box? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 11, 2024 / 7:35PM, TDC.N - Teradata Corp at Barclays Global Technology Conference

Question: Raimo Lenschow - Barclays Capital Inc. - Analyst : And I wanted to go back to -- you said like it's the customer is making -- doing smaller chunks, but the ultimate size is still the same -- is it -- but I'm slightly confused like what's the negative impact and like is it the same, but over a longer duration then? And -- or is it more back-end loaded as -- and you only had the starting point, so you see it later? Like how do you have to think about that?

Question: Raimo Lenschow - Barclays Capital Inc. - Analyst : Oh, I see what you mean, yes.

Question: Raimo Lenschow - Barclays Capital Inc. - Analyst : And where is the expansion coming from when the guys are on the cloud? Is that because they realize, oh, I can do -- I could add more data. So the warehouse gets bigger? Or is it because you're running more queries or more users can easily kind of kind of access the system and so then it gets bigger there? Like how does that 20% come together?

Question: Raimo Lenschow - Barclays Capital Inc. - Analyst : Yes. And then last question on that one. Like if you think back, so now it does sound like the market has shifted for you a little bit because about a year ago, like earlier this year, it was like some guys might not renew at the same rate or like there might be some issues. Now it seems more like a timing issue of like people realizing there is a good cloud product, and I just kind of need to slowly start migrating. Is that like an observation that is kind of true like from your perspective?

Question: Raimo Lenschow - Barclays Capital Inc. - Analyst : And then as part of that, like so -- and that's what we see as well when we talk to some of the customers that like they realize there's a good solid solution, and it's much easier to go with you to the cloud and try to redo everything. Like what are you seeing in terms of your relationships with the hyperscalers? Is there a couple of interesting announcements like -- how are they thinking about it?

Question: Raimo Lenschow - Barclays Capital Inc. - Analyst : It's funny, yes, because I got to talk with one of your big customers about it, and they were like they did have a look, and it was like it was a 10-year project. So they were like, no, no, I'm going with Teradata.

Question: Raimo Lenschow - Barclays Capital Inc. - Analyst : Yes. Okay. Makes sense. And then the like now a CFO-type question, like if you think about that, how does that kind of translate into growth for you? Because like at the end of the day, you were the poor person that has to deliver the growth rent -- like how do you do that? And then like how do you think about that?

Question: Raimo Lenschow - Barclays Capital Inc. - Analyst : Sorry, it's a technical question. But like if you think about like, in theory, the cloud enables you to get customers at a lower kind of size point, and then they can expand from there. And historically, there wasn't like because you were the big guys with the big kind of appliances. Is that kind of a way that we need to think about you? And are you working towards that?

Question: Raimo Lenschow - Barclays Capital Inc. - Analyst : And I'm trying to avoid you mentioning AI, but I don't think I can anymore. So if you think about like I mean you kind of think new fancy names that in public. How do you think you fit in there in the long run? Like you do have a big data estate, that's point one. But like talk about your kind of strategy there? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 11, 2024 / 7:35PM, TDC.N - Teradata Corp at Barclays Global Technology Conference

Question: Raimo Lenschow - Barclays Capital Inc. - Analyst : And then how -- like the CFO question now is like how do you monetize that then? Is it basically it requires more compute. And so you get more -- there's more data coming in, there's more storage or like if there's AI SKU idea? Like how do you think -- how do we think about that?

Question: Raimo Lenschow - Barclays Capital Inc. - Analyst : Yes. I mean, the -- that commitment to stay with you guys, like -- do you see that in your CFO metrics that had changed from like beginning of the year or two now and propensity to renew a net of stuff or --

Question: Raimo Lenschow - Barclays Capital Inc. - Analyst : And if there -- is there anything you did -- I mean, like there's one of the opportunities is obviously like giving the customer more vision, like having a cloud product and doing those kinds of agreements? Is there also something you did from an operational perspective to more handholding, et cetera, like kind of following the renewal path from your clients more? Like is there anything you did as well here?

Question: Raimo Lenschow - Barclays Capital Inc. - Analyst : And the last few minutes, I wanted to talk a little bit more on the operational side. If you think about it, you kind of did -- as you mentioned, you did take out some layers, et cetera. Like going from cloud to -- from on-premise to cloud, sorry, is obviously something that is a challenge for every vendor. Like we've seen it again and again, like where are you on that operational journey of realizing, okay, this is different. I need to kind of change my organization, et cetera?

Question: Raimo Lenschow - Barclays Capital Inc. - Analyst : And like the if you think about your cost base, like if you think -- as a CFO, when you think about it, like you have to deliver like cash and profitability to us, like if you think about a decision there, like how does it feel in terms of like, okay, well, we're just a different organization. So we just need to be differently organized versus like, okay, I need to deliver profits?

Question: Raimo Lenschow - Barclays Capital Inc. - Analyst : Yes. Okay. And then last question for me is like cash, like you've been very focused on delivering on the cash -- operating cash flow side. Like -- can you speak to that, like in terms of like you've been able to kind of actually do really well there and very shown us kind of very good performance there. How do I -- is there -- is that just the operations side? Or like do you have other like CFO levers to kind of you can pull there?

Question: Raimo Lenschow - Barclays Capital Inc. - Analyst : Perfect. That's a great closing statement as well. Thank you I really enjoyed our conversation. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 11, 2024 / 7:35PM, TDC.N - Teradata Corp at Barclays Global Technology Conference