Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, June 24, 2024 (GLOBE NEWSWIRE) — The Portnoy Law Firm advises Teradata Corporation (“Teradata” or the “Company”) (NYSE: TDC) investors that a class action on behalf of a class consisting of all persons and entities that purchased or otherwise acquired Teradata securities between February 13, 2023 and February 12, 2024, both dates inclusive (the “Class Period”) has been filed.
Teradata investors that lost money on their investment are encouraged to contact Lesley Portnoy, Esq.
Investors who purchased the Class Period are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
Teradata, along with its subsidiaries, offers a connected multi-cloud data platform for enterprise analytics. Initially, Teradata primarily interacted with the IT departments of its clients. However, as the company evolved its business model and strategic goals, it began engaging with additional customer business units.
To track its progress in achieving these objectives, Teradata uses specific financial and performance metrics such as Total Annual Recurring Revenue (ARR). This metric represents the annual value of all recurring contracts at a given point, including subscriptions, cloud services, software upgrade rights, and maintenance. Within this, Public Cloud ARR specifically measures the annual value of contracts related to public cloud implementations. Thus, Teradata’s Total ARR for any period heavily depends on the number of customer transactions completed within that timeframe.
On February 13, 2023, Teradata released a press statement announcing its Q4 and full-year 2022 financial results. The outlook for 2023 projected a 53% to 57% year-over-year increase in Public Cloud ARR and a 6% to 8% year-over-year increase in Total ARR.
Throughout the Class Period, Defendants made materially false and misleading statements about the company’s business, operations, and compliance policies. They failed to disclose that: (i) under Teradata’s expanded business model, transactions with customers took longer to finalize; (ii) Teradata overstated its ability to close these transactions within the expected timeframes; (iii) it failed to timely close several transactions included in its 2023 ARR growth forecast; (iv) consequently, it was unlikely to meet its 2023 Total and Public Cloud ARR expectations; and (v) the company’s public statements were materially false and misleading.
On December 7, 2023, at the Barclays Global Technology Conference, Teradata’s CFO Claire Bramley revealed the potential delay of a major deal, which could affect the company’s cloud ARR expectations. Following this news, Teradata’s stock price dropped $2.89 per share, or 6.24%, closing at $43.40 on the same day.
Later, on February 12, 2024, Teradata announced its Q4 and full-year 2023 financial results. The company disclosed that due to “deal timing issues,” public cloud ARR increased by only 48%, and total ARR by 6%, both falling short of expectations.
During a conference call to discuss these results, CEO Stephen McMillan explained that the delays were due to the company’s deeper strategic involvement with clients, requiring more executive decision-makers, which pushed some transactions into 2024. McMillan noted that several large deals, each worth $2 million or more in cloud ARR growth, slipped out of December 2023.
Following this announcement, Teradata’s stock price fell $10.57 per share, or 21.66%, closing at $38.22 on February 13, 2024.
As a result of these actions and omissions, and the subsequent sharp decline in the company’s stock value, the Plaintiff and other Class members have suffered significant losses and damages.
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The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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