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 Services Corp - Analyst : To bring everyone up to speed, like can you talk a little bit about what drove the upside of describe the quarter?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yes. Great. That's nice to hear. And then we did also see like -- I see it in my conversation, there's more excitement around Teradata. Again, like from the conversation you had since the quarter ended, like how -- what kind of change in tone do you get from investors?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : If you -- and we talked a little bit about the quarter, but like from my perspective as well, the operating profit, cash flow were kind of like the really big highlights for me. Can you talk a little bit about like the initiatives that drove that? What were the factors there that we should be aware of?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yes. Okay. Yes, it makes sense. And then the like growth is -- but as you mentioned, growth is kind of going to be the main question because you can't kind of do margins forever. Can you talk a little bit about where we are on that journey?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yes. And then talk a little bit about like -- at least for me, I sensed a little bit of change in tone like a few quarters back was all about cloud ARR, and now it's more about total ARR, kind of talk a little bit of what you're seeing here in the market that drives that. And maybe it's just me, but or like --

Question: Raimo Lenschow - Barclays Services Corp - Analyst : And then how do you go about -- like if you think about like the different things like in the past, there was cloud -- like people move to the cloud, so I get my cloud ARR number up. Thank you very much. And it's more like a transfer from one. Now if it's total ARR, like how do you -- what are the initiatives that you can see to kind of drive that number?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yes. Okay. And then the -- if you think about it, there -- what's driving -- if you think about the growth factors, so there's like find new customers, there's upsell, better, there's skew management, et cetera? Like talk a little bit about how you think about the different factors here.

Question: Raimo Lenschow - Barclays Services Corp - Analyst : And then the -- if you think about it, like, obviously, there's a lot of talk about these cloud vendors in your space. But the market has been incredibly broad and it's been very well, aged with so many different players in the market. And I'm just wondering what is the opportunity if you think about new customers around like Netezza, I think IBM put it end-of-life, Vertica is still there? Like how do you think about like customer growth?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : And then you mentioned AI already like -- and I just came out from a start-up session where it's all about like AI is only as good as the data. You always have been like a centerpiece of where customers kind of keep the information which data, clean data, which would be in theory, very valuable. Like how do you think about your role in this world? And what are you doing about it?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yes. Okay. Perfect. And then is there -- do you think it's going to be more like playing out in the public cloud. So it's the cloud ARR that comes back in the focus? Or do you think you can kind of be that player on both sides as well on the on-premise side and on the cloud side?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Okay. So if I put it together, it's like as a data vehicle, you're kind of really important on both cloud and on-premise and then there's the adjacent products? Like how do you think about productizing this now? Like if I'm a customer and I come to you like how do I buy this? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 8:10PM, TDC.N - Teradata Corp at Barclays Global Technology Conference

Question: Raimo Lenschow - Barclays Services Corp - Analyst : And then with your kind of expanding role in this new AI world, like should that show up as well I saw I'm the number guy.

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Should that show up in kind of renewal rates and stuff like that as well as the platform becomes more strategic again or it was always strategic, but you get another layer of strategic on open now with AI. Does that kind of then drive kind of renewal rates, different renewal rates? And can you start seeing that already?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yes. Okay. Perfect. Yes, makes sense. And then the -- if you think about it, like -- and that's more like an operational question. If you think about Cloud ARR as a focus, it's kind of one mindset from a sales perspective. If you look at more total ARR, it's another mindset from a sales perspective. Talk a little bit about the evolution of your go-to-market go to market for us. The other thing is also, like at the moment, the growth is not like not quite there where we wanted. How much can sales capacity help you out there as well?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yes. Okay. And then the -- you as a CFO, like what are you use as a metric to look out for, like, okay, more sales capacity could work here? I mean, like I don't think in the early stages because it's a lot about upselling, kind of working with the existing customers. But like how do you think about that dynamic?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yes. Remind me, what's the -- on that note, like what's the margin framework that you gave out like in terms of like how like margins are evolving from here as part of the journey.

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yes. Okay. And you emphasized quite a bit like cash, cash flow, cash generation is kind of important to you, which kind of makes sense at this stage as well. How do you think about the usage of cash? There's buybacks? Obviously, at some point, as growth is returning, it's a question, do you pull back on that one and maybe M&A becomes more important, et cetera? How do we think about that?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yes. Okay. Yes, it makes sense. And then the -- if you -- if you think about the evolution for you guys, there's -- in this new AI world, there's certain players. If you look at you from a technology perspective, you were always like actually one of the best technology companies out there like the way you kind of work the data was always kind of leading in the industry. If you think about going back to growth as well like now that you're in the cloud, you're well established in the cloud, like how much of that is kind of changing momentum in the market in terms of mind share. And so you talked about R&D, but like there's also then the question is like, is it an R&D problem? Or is it more sales and marketing kind of debate?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yes, yes, yes. Okay. That makes a lot of sense, yes. Okay. Last question for me is like if you think about it from an organizational perspective, as a CFO, like you're there not so long in the company. Like -- so when you came in like when you walked into the organization, what were the things where you realize, okay, this is where I can help them. This is kind of where I can make a difference.

Question: Raimo Lenschow - Barclays Services Corp - Analyst : So then if it's slightly less cloud and more on-premise that would help G&A though.

Question: Raimo Lenschow - Barclays Services Corp - Analyst : No, not G&A, like --

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yes, yes. sure.

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Perfect. John, that's a great closing statement.