Attorney Advertising--Bronstein, Gewirtz & Grossman, LLC, a nationally recognized law firm, notifies investors that a class action lawsuit has been filed against Teradata Corporation (“Teradata” or “the Company”) (NYSE: TDC) and certain of its officers.

Class Definition

This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Teradata securities between February 13, 2023, and February 12, 2024, inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: bgandg.com/TDC.

Case Details

Teradata and its subsidiaries provide a connected multicloud data platform for enterprise analytics, as stated in the Complaint. Historically, Teradata primarily dealt with the information technology departments of its customers. However, the Company broadened its business model and strategic objectives, leading to increased engagement with additional customer business units.

The Complaint indicates that the Company measures its progress in achieving its strategic objectives using certain financial and performance metrics. These include Total Annual Recurring Revenue (ARR)—the annual value of all recurring contracts at a given point in time including subscription, cloud, software upgrade rights, and maintenance. Public Cloud ARR, which is part of Total ARR, represents the annual value of all contracts related to public cloud implementations of its cloud data platform. Therefore, the Total ARR for a specific period significantly depends on the number of customer transactions the Company can close during that period.

On February 13, 2023, as stated in the Complaint, Teradata issued a press release reporting its Q4 and full year 2022 financial results. In providing an outlook for the full-year 2023, the press release stated that “Public cloud ARR is expected to increase in the range of 53% to 57% year-over-year” and “Total ARR is expected to increase in the range of 6% to 8% year-over-year.”

The Complaint alleges that throughout the Class Period Teradata made materially false and misleading statements regarding the Company’s business, operations, and compliance policies. Specifically, Teradata made false and/or misleading statements and/or failed to disclose that:

(1) under Teradata’s expanded business model, which involved engagement with additional customer business units and decisionmakers, transactions with the Company’s customers took longer to finalize;

(2) Teradata thus overstated its ability to close customer transactions within their intended timeframes under its expanded business model;

(3) Teradata failed to timely close several customer transactions that the Company had factored into its outlook for 2023 ARR growth;

(4) as a result, the Company was unlikely to meet its full year 2023 Total and Public Cloud ARR expectations; and

(5) consequently, the Company’s public statements were materially false and misleading at all relevant times.

On December 7, 2023, per the Complaint, at a Barclays Global Technology Conference Teradata’s Chief Financial Officer (“CFO”) Defendant Claire Bramley revealed that the Company had “an eight-figure deal that potentially [. . .] could get pushed out [of Q4 2023]”, the effect of which “could put [the Company] towards the low end or slightly below the range for cloud ARR that [it] previously gave.”

On this news, Teradata’s stock price fell $2.89 per share, or 6.24%, to close at $43.40 per share on December 7, 2023.

Then, on February 12, 2024, as the Complaint outlines, Teradata announced its Q4 and full year 2023 financial results. Among other things, the Company stated that due to “deal timing issues” public cloud ARR increased by only 48% and total ARR increased by only 6% for the full year 2023, falling well short of the Company’s previously issued expectations for these performance metrics.

On a conference call held that same day to discuss the Company’s Q4 and full year 2023 results (the “Q4 2023 Earnings Call”), Teradata’s Chief Executive Officer (“CEO”) Defendant Stephen McMillan (“McMillan”) confirmed that the “deal timing issues” related to the Company’s failure to timely finalize certain transactions that would have contributed to full year ARR growth if they had been closed in 2023. Specifically, Defendant McMillan claimed that because “Teradata is becoming even more strategic to corporations and touching all levels of [its] customers’ organizations,” there were “more executive decision makers” required to close these deals and that “[t]hese dynamics cause a number of transactions to move into 2024.” As a result, Defendant McMillan revealed that “there was a handful of large deals that slipped out of December [2023] and each were worth $2 million or more of cloud ARR growth.”

On this news, Teradata’s stock price fell $10.57 per share, or 21.66%, to close at $38.22 per share on February 13, 2024.

Therefore, the Complaint alleges that because of Teradata’s wrongful acts and omissions, and the precipitous decline in the market value of the Company’s securities, investors have suffered significant losses and damages.

What's Next?

A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm’s site: bgandg.com/TDC or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 332-239-2660. If you suffered a loss in Teradata you have until August 13, 2024, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.

There is No Cost to You

We represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys’ fees, usually a percentage of the total recovery, only if we are successful.

Why Bronstein, Gewirtz & Grossman

Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide.

Attorney advertising. Prior results do not guarantee similar outcomes.

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