Teradata Corp at RBC Capital Markets Technology, Internet, Media and Telecommunications Conference Transcript

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

Question: Dan Bergstrom - RBC Capital Markets - Analyst : Steve, maybe we could just start at a high level. Could you talk about where Teradata sits competitively? Maybe the company's focus on analytics in a hybrid multi-cloud world. Ultimately, what's your vision for the company versus peers, talk about pricing, customer ROI, et cetera.

Question: Dan Bergstrom - RBC Capital Markets - Analyst : That's great. And two, maybe more background questions, then we'll get into it. You mentioned you've been there four years and you started to talk a little bit about it, but you've really undergone quite the transformation of the company in four years. Maybe you could review that a little deeper, what you saw some of the decisions that you made? What's going on here really in four years to really reposition the company?

Question: Dan Bergstrom - RBC Capital Markets - Analyst : Great. And then a couple of names that came up in your introductory comment there, Databricks and Snowflake. I mean that's -- as investors, that's a common question that we get and maybe help level set us where do you play within the this new data platform layer?

Question: Dan Bergstrom - RBC Capital Markets - Analyst : Great. Got some good background questions there. Maybe into the details a little more here. A lot of moving pieces over the last couple of quarters. Could you just help us think back to Q2, what happened there in terms of the demand environment? Details around the [RIF] recently, what organizational changes have you made in making in light of the restructuring efforts, I guess?

Question: Dan Bergstrom - RBC Capital Markets - Analyst : That's great. And then maybe if we think about this past quarter here, could you talk about maybe the change in customer behavior for some of those cloud -- large cloud migration deals? It seemed like maybe there was some downsizing. Is that something trends you've been seeing? We've talked about the last couple of quarters. Is that specific to you? Is it just cloud migrations in general?

Question: Dan Bergstrom - RBC Capital Markets - Analyst : That's great. You talked about the confidence there around spend commitments, et cetera. Maybe drill down into some of that a little more. What gives you confidence around your cloud growth, ARR guidance at this point? It sounds like the deals are pushed out, some are closing, confidence around that deal pipeline and then the ARR growth outlook.

Question: Dan Bergstrom - RBC Capital Markets - Analyst : Great. And then maybe thinking about cloud growth into next year, what are some guardrails or maybe building blocks for 2025? What are the most important drivers to continue on with that cloud growth into next year? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 19, 2024 / 3:00PM, TDC.N - Teradata Corp at RBC Capital Markets Technology, Internet, Media and Telecommunications Conference

Question: Dan Bergstrom - RBC Capital Markets - Analyst : Great. And then maybe thinking about that $1 billion goal. I think it's a '26 number. What are some keys to that? Or what maybe not needs to go right, but continues to go right or could move in your favor to create a better path to that target?

Question: Dan Bergstrom - RBC Capital Markets - Analyst : Great. And then maybe GenAI has come up a couple of times here. Maybe where does Teradata sit in the GenAI world? Why would a customer use Teradata over competitors for GenAI workloads? And then maybe beyond what you're doing, what else could you do from a GenAI perspective to drive the traction there? And finally, around GenAI, everyone wants to know monetization. How do you monetize it?

Question: Dan Bergstrom - RBC Capital Markets - Analyst : That's great. Very comprehensive. And I just -- I wanted to flip back because you'd mentioned cloud expansion rates, and we had a couple of different directions we could go there. But could you just talk about or weigh maybe the expansions, migrations and net new customers. I think retention is the expansion maybe ticking down a little bit again in the fourth quarter here. But if you could just weigh those three maybe versus expectations? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 19, 2024 / 3:00PM, TDC.N - Teradata Corp at RBC Capital Markets Technology, Internet, Media and Telecommunications Conference

Question: Dan Bergstrom - RBC Capital Markets - Analyst : That's great. And then we're bumping up on last five minutes or so. Are there any audience questions? We're happy to entertain those. No questions. All right. A couple of things that we're asking all companies at the conference. We're past the election here, uncertainty around that's cleared up. Are you seeing customers more willing to spend here perhaps? Any thoughts around two things here, I guess, against around, one, the new administration and then two, perhaps calendar year-end budget flush.

Question: Dan Bergstrom - RBC Capital Markets - Analyst : Great. And then you mentioned this earlier, but how do we think about the balance between growth and profits? I know Steve, you're very focused on the cost and profit side of that. What controls do you have over the business internally to optimize costs and drive that margin higher? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 19, 2024 / 3:00PM, TDC.N - Teradata Corp at RBC Capital Markets Technology, Internet, Media and Telecommunications Conference

Question: Dan Bergstrom - RBC Capital Markets - Analyst : That's great. Then lots going on. Maybe one question to wrap it up here. What excites you the most about future Teradata?

Question: Dan Bergstrom - RBC Capital Markets - Analyst : Great ending there. Appreciate it, Steve. Thank you. Thank you, Chad.