Teradata Corp at Citi Global TMT Conference Transcript

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

Question: Tyler Radke - Citi - Analyst : Give us just your -- I think it's been now about four years since you joined Teradata, give us your vision for the company, what are some of the big focus areas that you've done over the last four years? And what do the next four years look like at Teradata?

Question: Tyler Radke - Citi - Analyst : Yes. Yes. Great. And I guess, as we think about the AI opportunity for Teradata, how would you articulate where Teradata fits in. Obviously, you have an industry-leading data warehouse. How does a data warehouse tie into the world of LLMs and AI?

Question: Tyler Radke - Citi - Analyst : Got it. Got it. Now it sounds like pretty interesting use cases. I guess as we think about the impact that all this GenAI excitement has had on budgets. We've heard from some companies that it's exacerbated this macro uncertainty in the sense that, obviously, companies are very hyper-focused on GenAI now, but budgets are still tight. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2024 / 8:40PM, TDC.N - Teradata Corp at Citi Global TMT Conference And so maybe our other parts of the IT wallet are getting constrained. Can you just elaborate on what you're seeing with your customers? And obviously, I guess, the context your growth rates have slowed quite a bit over the last year, presumably due to some of these budget constraints.

Question: Tyler Radke - Citi - Analyst : Okay. Got it. So turning to the most recent quarter and, I guess, Q1 as well. This most recent quarter, you did take down targets for the full year. Q1, you saw some of the on-prem erosions I guess, now that we're past the first half of the year that was challenging. I guess, first of all, could you frame what you saw for the audience here if folks weren't as familiar? And then secondly, what gives you the confidence that, that was the last cut and you can get back to this ARR growth heading into next year?

Question: Tyler Radke - Citi - Analyst : Yes. So on those cost actions that you took, I think it came out to close to 10% total workforce reduction, which was one of the largest you've done in years. I know in your tenure, you've been very focused on taking costs out of the model. What were the areas that were impacted by that 10% impact? And how do you think about the additional margin opportunity post this risk?

Question: Tyler Radke - Citi - Analyst : Okay. And I guess it's a good segue onto the iceberg and open table format conversation that's been very topical in the space, Snowflake data bricks and you guys talking about that. I guess some investors have a concern out there, like, yes, it is theoretically a good opportunity. You've done a lot of things to open up your query engine that can tap into these data sources. But just as you think about the risk of the loss of storage or maybe that decreases the stickiness, if all of a sudden, it's in this open file format. How do you see the puts and takes on that?

Question: Tyler Radke - Citi - Analyst : Okay. Great. Maybe that's a great jump-off point to talk about the competitive environment. So we often get asked how does Teradata fit in with the world, obviously, of Snowflake and Databricks, pretty high-growth players in this emerging data platform player. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2024 / 8:40PM, TDC.N - Teradata Corp at Citi Global TMT Conference Do you see yourselves directly competing with those? And when you bring up some of these on-prem erosion events, is that typically who vendors are spending more with? How do you see yourself coexisting and competing with those vendors?

Question: Tyler Radke - Citi - Analyst : Okay. Great. One of the areas from a go-to-market perspective that's been a focus for the last couple of years is your new logo growth engine and I think you've talked about some improvements in terms of the volume in new logos, but it's still relatively small. Can you speak to what you're seeing on the new logo front? And any sizable deals that you're noticing in the second half?

Question: Tyler Radke - Citi - Analyst : Got it. Okay. On the partnership front, you talked about the relationship with the big hyperscalers and all that. I know about a year ago, you hosted a pretty broad partner event. There are ISPs there as well as system integrators, even some OEM partners. I think Dell is a big one. Some of them, I remember last year talked about some pretty significant pipeline numbers that they're generating. How would you just characterize the pipeline that you see from those partners? And how fast are they investing or growing their practices?

Question: Tyler Radke - Citi - Analyst : Got it. Got it. Okay. Makes sense. As you think about the rest of this year, there's a lot of exciting things going on in the world, elections, Federal fiscal year-end coming up in September. How are you feeling just about the pipeline? You always have a pretty heavy second half, particularly Q4 weighted pipeline. How are things shaping up and how does the election uncertainty play into any of that?

Question: Tyler Radke - Citi - Analyst : Okay. Great. Well, I know you had to get to your flight soon, but I'll just leave it with you, if there's any closing remarks you want to make or anything that you wanted to hit on that we didn't address.

Question: Tyler Radke - Citi - Analyst : Great. Steve, thanks for joining us. Thanks, everyone, for coming to the last session of the day, and we'll see you tomorrow.