Teradata recently unveiled an exciting development in the realm of artificial intelligence with its integration of the DataRobot AI Platform into Teradata VantageCloud and ClearScape Analytics. This strategic move by Teradata is poised to revolutionize enterprises’ AI capabilities, offering a newfound flexibility and scalability when it comes to constructing and deploying AI models.
The collaboration between the two entities allows enterprise customers to seamlessly import and operationalize DataRobot’s advanced AI models within the VantageCloud analytics and data platform. This integration streamlines data access processes, paving the way for accelerated innovation in AI applications.
The integration, facilitated through ClearScape Analytics’ Bring Your Own Model (BYOM) feature, empowers data scientists to leverage their preferred tools while ensuring secure, transparent, and cost-effective deployment of AI models across a multitude of environments, be it cloud-based or on-premises.
Teradata Expands Partner Network for Growth
Teradata’s groundbreaking collaboration with DataRobot underscores the company’s dedication to leveraging the increasing demand through VantageCloud and ClearSpace Analytics solutions.
Positive Momentum in Q1 Adds to Growth Trajectory
In the first quarter of 2024, Teradata witnessed a remarkable surge in Cloud Annual Recurring Revenue (ARR), reaching a significant milestone of $525 million. This impressive figure represents a 36% year-over-year increase at constant currency (cc). The upward trajectory in revenue can be attributed to the widespread adoption of Teradata’s cloud solutions, reflecting a growing preference among customers for cloud-based analytics and data management.
The augmentation of the partner network, which includes tech giants like Alphabet’s cloud business, Google Cloud, Microsoft, Anaconda, and Amazon, has played a pivotal role in driving Teradata’s growth trajectory.
Teradata’s strategic decisions to offer Teradata VantageCloud Lake on Alphabet’s Google Cloud and Microsoft Azure have been met with enthusiasm in the market. These developments are expected to draw in a broader clientele by providing comprehensive support for AI and machine learning workloads.
Moreover, Teradata’s initiatives such as Teradata AI Unlimited on Microsoft Fabric and the renewal of its Strategic Collaboration Agreement with Amazon Web Services (AWS) have underscored the company’s commitment to accelerating cloud migration, enhancing data analytics modernization, and maximizing AI opportunities for its clientele.
Challenges in Q2 Forecast
Despite Teradata’s robust portfolio and extensive partner network, challenges related to on-premises erosion and prolonged deal cycles have adversely impacted the company’s revenue performance.
Year-to-date, Teradata’s shares have seen a decline of 19.8%, contrasting with the Zacks Computer & Technology sector’s rise of 25.5%.
Teradata, a Zacks Rank #5 (Strong Sell) company, reported a 2.3% year-over-year decrease in first-quarter 2024 revenues, amounting to $465 million on a reported basis and a 1% decline at cc.
The Zacks Consensus Estimate for the second quarter of 2024 indicates a projected revenue decline of 3.12% to $447.58 million.
For the forthcoming second quarter, non-GAAP earnings are forecasted to be in the range of 46 to 50 cents per share, with a consensus mark of 48 cents that has remained unchanged over the past 30 days.