NYSE:TDC
TERADATA CORP /DE/
TDC delivers enterprise-grade data analytics platforms and cloud infrastructure that enable large-scale businesses to extract actionable insights from massive datasets.
Key Metrics
Investment Thesis
Bull Case
Investors may find value in TDC's strong balance sheet with $493M in cash equivalents and a healthy current ratio, which provides flexibility to weather economic headwinds or pursue strategic acquisitions. The consistent growth in net income from $33M in 2022 to $130M in 2025 suggests improving operational leverage and potential for margin expansion as the company scales its cloud services portfolio.
Bear Case
The decline in total revenue over the last three years, dropping from $1.83B in 2023 to $1.66B in 2025, signals potential market saturation or loss of key enterprise clients which could threaten future growth trajectories. Additionally, the accumulated deficit of -$1.92B and significant non-operating losses indicate underlying profitability pressures that may require substantial time to resolve before stock valuation improves.
About TERADATA CORP /DE/
TDC Corporation provides enterprise data analytics platforms and software solutions primarily serving large enterprises across North America and Europe. The company focuses on delivering high-performance computing infrastructure, cloud-based analytics services, and proprietary AI-driven tools to help organizations process massive datasets efficiently. Key products include the Vertica analytics platform and comprehensive data management suites utilized for real-time decision-making in complex industries like finance, healthcare, and telecommunications.
Analysis
Management Discussion
Despite a slight revenue contraction in 2025 compared to the previous year, TDC demonstrated strong operational efficiency with operating cash flow of $305M significantly exceeding net income of $130M. The company maintained substantial liquidity with ending cash of $494M while continuing to invest heavily in R&D at $280M, indicating a strategy focused on long-term product innovation rather than short-term cost-cutting.
Industry Overview
The enterprise data analytics sector is rapidly evolving as organizations seek to harness artificial intelligence and machine learning from their existing data lakes without migrating to public cloud providers. Competition intensifies as hyperscalers like AWS and Azure integrate native analytics tools, forcing niche players to differentiate through specialized performance engines and industry-specific knowledge.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $1.79B | $1.83B | $1.75B | $1.66B |
| Cost of Revenue | $714.0M | $718.0M | $692.0M | $676.0M |
| Gross Profit | $1.08B | $1.11B | $1.06B | $987.0M |
| Operating Expenses | $963.0M | $929.0M | $849.0M | $782.0M |
| Operating Income | $118.0M | $186.0M | $209.0M | $205.0M |
| R&D | $313.0M | $294.0M | $284.0M | $280.0M |
| G&A | $650.0M | $635.0M | $565.0M | $502.0M |
| Stock-Based Comp | $126.0M | $126.0M | $119.0M | $112.0M |
| D&A | $134.0M | $116.0M | $100.0M | $90.0M |
| Depreciation | $127.0M | $110.0M | $94.0M | $86.0M |
| Other OpEx | $0 | $0 | $0 | $0 |
| Non-Operating Income | $-51.0M | $-69.0M | $-45.0M | $-27.0M |
| Interest Expense | $24.0M | $30.0M | — | — |
| Interest Income | $15.0M | — | — | — |
| Pre-Tax Income | $67.0M | $117.0M | $164.0M | $178.0M |
| Income Tax | $34.0M | $55.0M | $50.0M | $48.0M |
| Continuing Ops | $33.0M | $62.0M | $114.0M | $130.0M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $33.0M | $62.0M | $114.0M | $130.0M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $33.0M | $62.0M | $114.0M | $130.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $1.03B | $869.0M | $749.0M | $837.0M |
| Cash & Equivalents | $569.0M | $486.0M | $420.0M | $493.0M |
| Accounts Receivable | $364.0M | $286.0M | $234.0M | $251.0M |
| Inventory | $8.0M | $13.0M | $18.0M | $13.0M |
| Other Current Assets | $87.0M | $84.0M | $77.0M | $80.0M |
| Long-Term Assets | $994.0M | $1.00B | $955.0M | $942.0M |
| Intangibles | — | $68.0M | $46.0M | $42.0M |
| Goodwill | $390.0M | $398.0M | $394.0M | $399.0M |
| Operating Leases | $13.0M | $9.0M | $8.0M | $7.0M |
| Other LT Assets | $591.0M | $529.0M | $507.0M | $494.0M |
| Total Assets | $2.02B | $1.87B | $1.70B | $1.78B |
| Current Liabilities | $1.01B | $996.0M | $930.0M | $914.0M |
| Accounts Payable | $94.0M | $100.0M | $106.0M | $96.0M |
| Current Debt | $0 | $19.0M | $25.0M | $25.0M |
| Current Leases | $8.0M | $6.0M | $4.0M | $2.0M |
| Deferred Revenue | $589.0M | $570.0M | $512.0M | $533.0M |
| Taxes Payable | — | — | $52.0M | $4.0M |
| Other Current Liab | $316.0M | $301.0M | $231.0M | $254.0M |
| Long-Term Liabilities | $757.0M | $742.0M | $641.0M | $635.0M |
| Long-Term Debt | $498.0M | $480.0M | $455.0M | $431.0M |
| LT Operating Leases | $10.0M | $6.0M | $5.0M | $4.0M |
| Other LT Liab | $241.0M | $234.0M | $171.0M | $189.0M |
| Total Liabilities | $1.76B | $1.74B | $1.57B | $1.55B |
| Shareholders' Equity | $258.0M | $135.0M | $133.0M | $230.0M |
| Retained Earnings | $-1.56B | $-1.81B | $-1.91B | $-1.92B |
| AOCI | $-119.0M | $-129.0M | $-147.0M | $-153.0M |
| Total L&E | $2.02B | $1.87B | $1.70B | $1.78B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $33.0M | $62.0M | $114.0M | $130.0M |
| Non-Cash Adjustments | $432.0M | $378.0M | $308.0M | $168.0M |
| Working Capital Changes | $-46.0M | $-65.0M | $-119.0M | $7.0M |
| Cash from Operations | $419.0M | $375.0M | $303.0M | $305.0M |
| Capital Expenditures | $14.0M | $19.0M | $24.0M | $19.0M |
| Cash from Investing | $-18.0M | $-49.0M | $-32.0M | $-21.0M |
| Debt Issuances | $500.0M | $0 | $0 | — |
| Debt Repayments | $413.0M | $0 | $19.0M | $25.0M |
| Share Buybacks | $387.0M | $308.0M | $215.0M | $140.0M |
| Cash from Financing | $-381.0M | $-383.0M | $-306.0M | $-233.0M |
| FX Effect | $-44.0M | $-28.0M | $-30.0M | $22.0M |
| Net Change in Cash | $-24.0M | $-85.0M | $-65.0M | $73.0M |
| Beginning Cash | $595.0M | $571.0M | $486.0M | $421.0M |
| Ending Cash | $571.0M | $486.0M | $421.0M | $494.0M |
Frequently Asked Questions
How does TERADATA CORP /DE/ make money?
The company generates revenue through its core analytics platform licensing, professional services and consulting for implementation, and managed cloud services that allow clients to scale their computational resources on demand.
What are the main risks for TDC?
Significant customer concentration risk with reliance on large enterprise contracts, exposure to macroeconomic downturns that could delay IT budgeting cycles, potential erosion of market share from hyperscalers offering integrated analytics features, and the high capital intensity required for R&D and infrastructure maintenance.
What is TDC's competitive advantage?
TDC possesses a robust proprietary data processing engine capable of handling high-velocity streaming data, a highly skilled niche engineering workforce specializing in complex SQL-based analytics, and deep vertical expertise within regulated industries requiring strict data governance.
Related Companies
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.