Investors can Contact the law firm free of charge to learn more about recovering their losses
LOS ANGELES, June 24, 2024 (GLOBE NEWSWIRE) — Portnoy Law Firm advises Teradata Corporation (“Teradata” or the “Company”) (NYSE: TDC) Investors that a class action lawsuit on behalf of a class consisting of all persons and companies who have purchased or otherwise acquired Teradata securities between February 13, 2023 and 12 February 2024, both dates inclusive (the “Claim Period”) were filed.
Teradata investors who have lost money on their investment are encouraged to contact Lesley Portnoy, Esq.
Investors who purchased the class action lawsuit are encouraged to contact Attorney Lesley F. Portnoy by phone at 310-692-8883 or by email at [email protected] to discuss their legal claims, or click here to join the case at www.portnoylaw.com. The Portnoy Law Firm can provide a free case evaluation and discuss investors’ options for pursuing claims to recover their losses.
Teradata, together with its subsidiaries, offers a connected, multi-cloud data platform for enterprise analytics. Initially, Teradata worked primarily with its customers’ IT departments. However, as its business model and strategic goals evolved, the company began to work with other business units of its customers.
To track progress toward these goals, Teradata uses certain 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 in time, including subscriptions, cloud services, software upgrade rights, and maintenance. Public Cloud ARR specifically measures the annual value of contracts related to public cloud implementations. Therefore, Teradata’s total ARR for any period depends heavily on the number of customer transactions completed within that period.
On February 13, 2023, Teradata issued a press release announcing its fourth quarter and full year 2022 financial results. The 2023 outlook called for public cloud ARR to increase 53% to 57% year-over-year and total ARR to increase 6% to 8% year-over-year.
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) transactions with customers under Teradata’s expanded business model were taking longer to complete; (ii) Teradata overstated its ability to complete these transactions within expected timelines; (iii) it failed to complete several transactions included in its 2023 ARR growth forecast on a timely basis; (iv) it was therefore unlikely to meet its expectations for total and public cloud ARR for 2023; and (v) the Company’s public statements were materially false and misleading.
On December 7, 2023, at the Barclays Global Technology Conference, Teradata CFO Claire Bramley revealed the potential delay of a major deal that could impact the company’s cloud ARR expectations. Following this news, Teradata’s stock price fell $2.89 per share, or 6.24%, closing at $43.40 the same day.
Later, on February 12, 2024, Teradata announced its fourth quarter and full year 2023 financial results. The company announced that due to “deal timing issues,” public cloud ARR only increased 48% and total ARR increased 6%, both of which fell short of expectations.
During a conference call to discuss those results, CEO Stephen McMillan explained that the delays were due to the company’s greater strategic involvement in customer relationships, which requires more executive-level decision makers, which has pushed some transactions to 2024. McMillan noted that several large deals, each valued at $2 million or more in cloud ARR growth, have fallen out of December 2023.
Following this announcement, Teradata’s stock price fell $10.57 per share, or 21.66%, to close at $38.22 on February 13, 2024.
As a result of these acts and omissions and the subsequent sharp decline in the Company’s stock value, Plaintiff and other class members have suffered significant losses and damages.
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The Portnoy Law Firm represents investors in claims arising from corporate malpractice. The firm’s founding partner has recovered more than $5.5 billion for injured investors. Attorney Advertising. Past results do not guarantee similar results.
Lesley F. Portnoy, Esq.
Admitted to the bar in California and New York
[email protected]
310-692-8883
www.portnoylaw.com
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