Teradata Corp 10-K for FY2024

Teradata Corp /De/ (TDC)

10-K 2025-02-21 For: 2024-12-31

Added on April 10, 2026

About this 10-K

Teradata Corp filed this 10-K on February 21, 2025, covering the fiscal year ended December 31, 2024 (FY2024).

Headline figures

Fiscal year ended December 31, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.75B; down 4.5% from $1.83B a year earlier
Net income: $114M; up 83.9% from net income of $62M a year earlier
Diluted EPS: $1.16; up 90.2% from $0.61 a year earlier

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Delaware						75-3236470
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)



Item	Description	Page
	PART I

1.	Business	5
1A.	Risk Factors	15
1B.	Unresolved Staff Comments	28
1C.	Cybersecurity	28
2.	Properties	31
3.	Legal Proceedings	31
4.	Mine Safety Disclosures	31

	PART II

5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	32
6.	[Reserved]	33
7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	33
7A.	Quantitative and Qualitative Disclosures About Market Risk	44
8.	Financial Statements and Supplementary Data	45
9.	Changes in and Disagreements With Accountants on Accounting and Financial Disclosure	82
9A.	Controls and Procedures	82
9B.	Other Information	84
9C.	Disclosure Regarding Foreign Jurisdictions That Prevent Inspections	84

	PART III

10.	Directors, Executive Officers and Corporate Governance	84
11.	Executive Compensation	84
12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	85
13.	Certain Relationships and Related Transactions, and Director Independence	85
14.	Principal Accounting Fees and Services	85

	PART IV

15.	Exhibits, Financial Statement Schedules	86
16.	Form 10-K Summary	92
	Signatures	93


Name	Age	Position(s)
Stephen McMillan	54	President and Chief Executive Officer
Claire Bramley	47	Chief Financial Officer
Kathleen Cullen-Cote	60	Chief People Officer
Michael Hutchinson	59	Chief Customer Officer
Richard Petley	48	Chief Revenue Officer
Margaret Treese	58	Chief Legal Officer
Jacqueline Woods	63	Chief Marketing Officer


	As of December 31,
Company/Index	2019		2020		2021		2022		2023		2024
Teradata Corporation	$	100	$	84	$	159	$	126	$	163	$	116
S&P 500 Index	$	100	$	116	$	148	$	119	$	148	$	182
S&P Information Technology Index	$	100	$	142	$	190	$	135	$	211	$	286


	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Dilution Offset Program (1)	Total Number of Shares Purchased as Part of Publicly Announced General Share Repurchase Program (2)	Maximum Dollar Value that May Yet Be Purchased Under the Dilution Offset Program		Maximum Dollar Value that May Yet Be Purchased Under the General Share Repurchase Program
Period
First quarter total	3,169,262	$	40.57	165,392	3,003,870	$	2,145,031	$	431,946,444
Second quarter total	1,186,097	$	35.66	58,189	1,127,908	$	44,982	$	391,847,459
Third quarter total	553,862	$	28.89	179,990	373,872	$	317,370	$	380,888,273
October 2024	306,968	$	31.47	—	306,968	$	317,370	$	371,228,609
November 2024	301,660	$	30.23	—	301,660	$	317,370	$	362,109,031
December 2024	326,251	$	32.18	—	326,251	$	421,044	$	351,609,397
Fourth quarter total	934,879	$	31.32	—	934,879	$	421,044	$	351,609,397
2024 Full year total	5,844,100	$	36.99	403,571	5,440,529	$	421,044	$	351,609,397


☒			ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


Part III:			Portions of the registrant’s Notice of Annual Meeting of Stockholders and Proxy Statement, to be filed with the Securities and Exchange Commission pursuant to Regulation 14A within 120 days after registrant’s fiscal year end of December 31, 2024 are incorporated herein by reference.


Item 5.			MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES


Item 7.			MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS ("MD&A")


			% of				% of
In millions	2024		Revenue		2023		Revenue
Recurring	$	1,479	84.5	%	$	1,492	81.4	%
Perpetual software license, hardware and other	23		1.3	%	45		2.5	%
Consulting services	248		14.2	%	296		16.1	%
Total revenue	$	1,750	100.0	%	$	1,833	100.0	%


	Total				2026-		2028-		2030 and
In millions	Amounts		2025		2027		2029		Thereafter
Transition tax	$	29	$	29	$	—	$	—	$	—
Purchase obligations	$	844	312		474		56		2
Total transition tax and purchase obligations	$	873	$	341	$	474	$	56	$	2


Item 7A.			QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK



/s/			PricewaterhouseCoopers LLP
Atlanta, Georgia
February 21, 2025


	For the Years Ended December 31
	2024		2023		2022
Revenue
Subscription software licenses	$	289	$	310	$	289
Services and other	1,190		1,182		1,130
Total recurring	1,479		1,492		1,419
Perpetual software licenses, hardware and other	23		45		65
Consulting services	248		296		311
Total revenue	1,750		1,833		1,795
Cost of revenue
Subscription software licenses	17		20		22
Services and other	424		398		375
Total recurring	441		418		397
Perpetual software licenses, hardware and other	23		38		47
Consulting services	228		262		270
Total cost of revenue	692		718		714
Gross profit	1,058		1,115		1,081
Operating expenses
Selling, general and administrative expenses	565		635		650
Research and development expenses	284		294		313
Total operating expenses	849		929		963
Income from operations	209		186		118
Other expense, net
Interest expense	(29)		(30)		(24)
Interest income	11		25		15
Other expense	(27)		(64)		(42)
Total other expense, net	(45)		(69)		(51)
Income before income taxes	164		117		67
Income tax expense	50		55		34
Net income	$	114	$	62	$	33
Net income per weighted average common share
Basic	$	1.18	$	0.62	$	0.32
Diluted	$	1.16	$	0.61	$	0.31
Weighted average common shares outstanding
Basic	96.4		99.8		103.2
Diluted	98.2		102.4		105.8


Item 1B.			UNRESOLVED STAFF COMMENTS


Item 2.			PROPERTIES


Item 3.			LEGAL PROCEEDINGS


Item 4.			MINE SAFETY DISCLOSURES


	At December 31
	2024		2023
Assets
Current assets
Cash and cash equivalents	$	420	$	486
Accounts receivable, net	234		286
Inventories	18		13
Other current assets	77		84
Total current assets	749		869
Property and equipment, net	185		239
Right of use assets - operating lease, net	8		9
Goodwill	394		398
Capitalized contract costs, net	46		68
Deferred income taxes	226		221
Other assets	96		69
Total assets	$	1,704	$	1,873
Liabilities and stockholders’ equity
Current liabilities
Current portion of long-term debt	$	25	$	19

Current portion of finance lease liability	57		66
Current portion of operating lease liability	4		6
Accounts payable	106		100
Payroll and benefits liabilities	111		130
Deferred revenue	512		570
Other current liabilities	115		105
Total current liabilities	930		996
Long-term debt	455		480
Finance lease liability	30		63
Operating lease liability	5		6
Pension and other postemployment plan liabilities	104		102
Long-term deferred revenue	10		22
Deferred tax liabilities	9		8
Other liabilities	28		61
Total liabilities	1,571		1,738
Commitments and contingencies (Note 10)
Stockholders’ equity
Preferred stock: par value $0.01 per share, 100.0 shares authorized, no shares issued and outstanding at December 31, 2024 and 2023, respectively	—		—
Common stock: par value $0.01 per share, 500.0 shares authorized, 95.1 and 97.9 shares issued and outstanding at December 31, 2024 and 2023, respectively	1		1
Paid-in capital	2,192		2,074
Accumulated deficit	(1,913)		(1,811)
Accumulated other comprehensive loss	(147)		(129)
Total stockholders’ equity	133		135
Total liabilities and stockholders’ equity	$	1,704	$	1,873


	Common Stock			Paid-in		Retained Earnings (Accumulated		Accumulated Other Comprehensive
	Shares	Amount		Capital		Deficit)		(Loss) income		Total
December 31, 2021	107	$	1	$	1,808	$	(1,211)	$	(138)	$	460
Net income	—	—		—		33		—		33
Employee stock compensation, employee stock purchase programs and option exercises, net of tax	3	—		133		—		—		133
Repurchases of common stock, retired	(9)	—		—		(387)		—		(387)
Pension and postemployment benefit plans, net of tax	—	—		—		—		31		31
Unrealized gain on derivatives, net of tax	—	—		—		—		19		19
Currency translation adjustment	—	—		—		—		(31)		(31)
December 31, 2022	101	$	1	$	1,941	$	(1,565)	$	(119)	$	258
Net income	—	—		—		62		—		62
Employee stock compensation, employee stock purchase programs and option exercises, net of tax	4	—		133		—		—		133
Repurchases of common stock, retired	(7)	—		—		(308)		—		(308)
Pension and postemployment benefit plans, net of tax	—	—		—		—		(7)		(7)
Unrealized loss on derivatives, net of tax	—	—		—		—		(4)		(4)
Currency translation adjustment	—	—		—		—		1		1
December 31, 2023	98	$	1	$	2,074	$	(1,811)	$	(129)	$	135
Net income	—	—		—		114		—		114
Employee stock compensation, employee stock purchase programs and option exercises, net of tax	3	—		118		—		—		118
Repurchases of common stock, retired	(6)	—		—		(216)		—		(216)
Pension and postemployment benefit plans, net of tax	—	—		—		—		(1)		(1)
Unrealized gain on derivatives, net of tax	—	—		—		—		1		1
Currency translation adjustment	—	—		—		—		(18)		(18)
December 31, 2024	95	$	1	$	2,192	$	(1,913)	$	(147)	$	133


	Internal-use Software
In millions	2024		2023		2022
Beginning balance at January 1	$	5	$	8	$	10
Capitalized	2		2		3
Amortization	(3)		(5)		(5)
Ending balance at December 31	$	4	$	5	$	8


	Actual		For the years ended (estimated)
In millions	2024		2025		2026		2027		2028		2029
Internal-use software amortization expense	$	3	$	2	$	2	$	2	$	2	$	1



In millions, except earnings per share	2024		2023		2022
Net income attributable to common stockholders	$	114	$	62	$	33
Weighted average outstanding shares of common stock	96.4		99.8		103.2
Dilutive effect of employee stock options, restricted shares and other stock awards	1.8		2.6		2.6
Common stock and common stock equivalents	98.2		102.4		105.8
Earnings per share:
Basic	$	1.18	$	0.62	$	0.32
Diluted	$	1.16	$	0.61	$	0.31


	Twelve Months Ended December 31,
In millions	2024		2023		2022
Other expense
Foreign currency losses	$	8	$	38	$	30
Blue chip swap losses	4		13		—
Other	15		13		12
Total Other expense	$	27	$	64	$	42


In millions	December 31, 2024		Year 1		Year 2 and Thereafter



Remaining unsatisfied obligations	$	2,301	$	1,345	$	956


In millions	Balance December 31, 2023		Segment re-allocation		Currency Translation Adjustments		Balance December 31, 2024
Goodwill
Americas	$	257	$	(257)	$	—	$	—
EMEA	90		(90)		—		—
APJ	51		(51)		—		—
Product Sales	—		391		(4)		387
Consulting Services	—		7		—		7
Total goodwill	$	398	$	—	$	(4)	$	394


		December 31, 2024
In millions	Amortization Life (in Years)	Gross Carrying Amount		Accumulated Amortization Amount
Acquired intangible assets
Intellectual property/developed technology	5	$	14	$	(5)


Shares in thousands	Number of Shares	Weighted- Average Grant Date Fair Value per Share
Unvested shares at January 1, 2024	6,820	$	42.84
Granted	3,457	$	36.33
Vested	(2,915)	$	42.67
Forfeited/canceled	(705)	$	41.15
Unvested shares at December 31, 2024	6,657	$	40.05


Shares in thousands	Number of Shares	Weighted- Average Grant Date Fair Value
Service-based restricted share units	2,758	$	37.22
Performance-based restricted share units	699	$	32.85
Total restricted share unit grants	3,457	$	36.33


	Pension				Postemployment
In millions	2024		2023		2024		2023
Change in benefit obligation
Benefit obligation at January 1	$	116	$	105	$	56	$	58
Service cost	4		4		11		12
Interest cost	3		3		2		2
Plan participant contributions	1		1		—		—
Actuarial loss	—		5		11		13
Benefits paid	(2)		(3)		(24)		(29)

Settlement	(9)		(2)		—		—
Plan Amendment	(6)		—		—		—
Currency translation adjustments	(7)		3		—		—
Benefit obligation at December 31	$	100	$	116	$	56	$	56
Change in plan assets
Fair value of plan assets at January 1	$	60	$	56	$	—	$	—
Actual return on plan assets	4		3		—		—
Company contributions	5		5		—		—
Benefits paid	(2)		(4)		—		—
Currency translation adjustments	(4)		1		—		—
Plan participant contribution	1		1		—		—
Settlements	(9)		(2)		—		—
Other	(6)		—		—		—
Fair value of plan assets at December 31	49		60		—		—
Funded status (underfunded)	$	(51)	$	(56)	$	(56)	$	(56)
Amounts Recognized in the Consolidated Balance Sheet
Non-current assets	$	10	$	8	$	—	$	—
Current liabilities	(2)		(2)		(11)		(16)
Non-current liabilities	(59)		(62)		(45)		(40)
Net amounts recognized	$	(51)	$	(56)	$	(56)	$	(56)
Amounts Recognized in Accumulated Other Comprehensive Income (Loss)
Unrecognized Net actuarial (gain) loss	$	(6)	$	(4)	$	62	$	57
Unrecognized Prior service cost	—		—		3		4
Total	$	(6)	$	(4)	$	65	$	61


	Pension Benefit Obligations		Pension Benefit Cost
	2024	2023	2024	2023	2022
Discount rate	3.2%	3.0%	3.2%	3.1%	1.3%
Rate of compensation increase	3.4%	3.2%	3.2%	3.1%	3.0%
Expected return on plan assets	N/A	N/A	4.0%	3.9%	3.1%
Interest crediting rate assumption	1.6%	1.6%	1.6%	1.5%	0.9%
	Postemployment Benefit Obligations		Postemployment Benefit Cost
	2024	2023	2024	2023	2022
Discount rate	4.6%	4.6%	4.6%	3.8%	2.0%
Rate of compensation increase	4.3%	3.0%	3.0%	3.0%	3.0%
Involuntary turnover rate	5.0%	4.5%	4.5%	4.0%	4.0%


	Actual Asset Allocation as of December 31		Target Asset
	2024	2023	Allocation
Equity securities	33%	33%	34%
Debt securities	56%	47%	55%
Insurance (annuity) contracts	8%	13%	4%
Real estate	3%	6%	4%
Other	—%	1%	3%
Total	100%	100%	100%


			Fair Value Measurements at Reporting Date Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
In millions	December 31, 2024		(Level 1)		(Level 2)		(Level 3)

Equity funds	$	17	$	—	$	17	$	—
Bond/fixed-income funds	26		—		26		—
Real estate indirect investments	3		—		3		—
Insurance contracts	2		—		—		2
Total assets at fair value	$	48	$	—	$	46	$	2


In millions	Insurance Contracts
Balance as of January 1, 2024	$	8
Purchases, sales and settlements, net	(6)
Balance as of December 31, 2024	$	2


			Fair Value Measurements at Reporting Date Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
In millions	December 31, 2023		(Level 1)		(Level 2)		(Level 3)
Money market funds	$	1	$	—	$	1	$	—
Equity funds	20		—		20		—
Bond/fixed-income funds	28		—		28		—
Real estate indirect investments	3		—		3		—

Insurance contracts	8		—		—		8
Total assets at fair value	$	60	$	—	$	52	$	8


In millions	Insurance Contracts
Balance as of January 1, 2023	$	7
Purchases, sales and settlements, net	1
Balance as of December 31, 2023	$	8


			Fair Value Measurements at Reporting Date Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
In millions	Total		(Level 1)		(Level 2)		(Level 3)
Assets
Money Market Funds at December 31, 2024	$	151	$	151	$	—	$	—

Money Market Funds at December 31, 2023*	$	154	$	154	$	—	$	—

Foreign Currency Swap at December 31, 2024	$	1	$	—	$	1	$	—

Interest Rate Swap at December 31, 2024	$	9	$	—	$	9	$	—
Interest Rate Swap at December 31, 2023	$	8	$	—	$	8	$	—

Liabilities

Foreign Currency Swap at December 31, 2023	$	8	$	—	$	8	$	—



In millions, except weighted average calculations	Classification on the Balance Sheet	2024			2023
Assets
Operating lease assets	Right of use assets - operating lease, net	$	8		$	9
Finance lease assets	Property and equipment, net	109			156
Total lease assets		$	117		$	165

Liabilities
Current
Operating	Current portion of operating lease liability	$	4		$	6
Finance	Current portion of finance lease liability	57			66
Non current
Operating	Operating lease liability	5			6
Finance	Finance lease liability	30			63
Total lease liabilities		$	96		$	141

Weighted-average remaining lease term
Operating leases		3.49 years			2.16 years
Finance leases		1.65 years			2.06 years
Weighted-average discount rate
Operating leases(1)		5.40		%	5.00		%
Finance leases		6.83		%	6.28		%