Teradata has explained how the big data and analytics company has improved its sales performance during the third quarter of 2020.
Teradata revenue rose 6 percent to $365 million. ARR increased 8 percent to $1.501 billion and increased $47 million sequentially.
Teradata said gross margin was 55.9 percent versus 53.8 percent.
Operating income was $1 million versus $10 million.
Teradata, as part of its Cloud-first initiatives, released Teradata Vantage on Google Cloud; and added consumption-based pricing or Pay for What is Used on Amazon’s AWS and Microsoft Azure Cloud platforms.
Teradata offered a voluntary separation program (VSP) to certain employees. The cost of the job cutting program in the third quarter was $27 million. The company expects to incur costs related to this program of $5 million in the fourth quarter of 2020.
Teradata will also reduce its workforce and real estate footprint. Teradata expects it will incur charges from these actions of approximately $38 million to $48 million.
Teradata expects revenue between $371 million and $373 million for the fourth quarter of 2020.
Teradata introduced a cloud cost calculator on its website to help people understand the cost advantage in cloud. By answering five questions visitors will see a cost estimate for using Vantage in the cloud, including the recommended consumption model, either blended or consumption. Visitors can get a customized cost report based on their inputs, Teradata said.
Recognitions
Teradata was named by IDC in the FinTech top 100 Rankings as number 34.
Inclusion and Netflix recognized Teradata as the leading supplier of technology to the financial services industry.
IDC also named Teradata and its Asia Pacific MarketScape recognition of major vendors for cloud data analytics platforms. IDC noted that Teradata is a good match for companies that need hybrid cloud flexibility and prioritize security and performance for the analytics workloads.
Teradata was recognised by the Forrester Wave on data management for analytics from earlier this year. Teradata received the highest score in the current offering category. The report noted that Teradata remains a prominent choice, especially for hybrid deployments, for scalability and availability are critical.
New team
Teradata named Nicolas Chapman as the chief strategy officer to have a well-defined strategic and operational plan, as it accelerate transformation to cloud first company.
Teradata appointed Hillary Ashton as chief product officer.
Teradata named Molly Treese as chief legal officer.
Teradata also named Erica Hausheer as chief information officer. Erica will lead Teradata as IT and Security organizations and will drive the ongoing use of our own data analytics technology to advance her business objectives.
Teradata will be announcing a replacement for Scott Brown, chief revenue officer, who departed the company to become the president and CEO of FinancialForce.
