Claire Bramley: Yes, so as Steve just mentioned, we are seeing a strong traction with regards to the transparency and visibility that we have with renewals, especially with regards to our cloud business. You can see we mentioned, that in Q1, we were pleased with the renewals that we saw, and we’re expecting that to continue throughout the year. And the expansion rate remains strong at 123%. So, that also gives us a good indication as we’re moving out to the year. And we’re modeling, as I mentioned, in the approximately 120% range, which factors in, obviously, all of our assumptions from a renewal standpoint. So, I don’t think we’re seeing any significant changes or — and I think we’re modeling fairly conservatively from a cloud ARR standpoint considering that we’re currently running at 123%, and we’re modeling approximately 120%, so, happy with that. And that kind of gives us that confidence in the midpoint for the range for the full-year.
Operator: Thank you. The next question is from Bo Erskine with TD Cowen. Your line is now open.
Cole Erskine: Great, thanks, guys. This is Cole on for Derrick. Steve, I want to talk about sales execution, and just see if there’s any changes that Rich is making to drive that rev execution, and make sure that deals get across the finish line as we move towards the second-half of the year, and don’t see a repeat of last year?
Steve McMillan: Yes, so thanks for that, and thanks for brining up Rich. We were delighted to appoint Rich Petley as our CRO. He joined Teradata over two years ago to lead our EMEA region. Given the growth that we’ve had in EMEA and the success he had in EMEA, we actually promoted him to run all of international sales. And during that time, he’s delivered results meaningfully ahead of all of our overall growth rate as a company over the last two years. Rich, as a sales executive, bring a super-disciplined approach to deal management. He has demonstrated success in terms of driving predictability in the business. But not only that, in terms of executing in marketplace, his adoption of partners, the growth in new logos, the execution of expansions and migrations inside his region has been fantastic.
We’re looking forward to him bringing that capability to the entirety of our global sales execution. He really does know our business, knows our technology, knows our people, and we’re delighted to have him in this role.
Cole Erskine: Great, thanks for the color. And then just one follow-up, on the open table format on Iceberg, that’s good to see. Do you guys anticipate any headwind on storage revenue from that?
Steve McMillan: Yes, I think what we see is there’s going to be a requirement to utilize and deploy lots of different storage technologies and storage capability. So, for certain workloads, open table format is going to be absolutely the right choice. And for certain workloads, high-performance storage built right into the Teradata platform is going to be the right choice. We see the capability of opening up and supporting open table format gives us the ability to access and utilize even more data than we could previously. And that will drive a source of expansion for us as we move forward, as we increase the utilization of the Teradata platform to query massively more amounts of data inside our customer ecosystem. I was talking to one of the banks, up in Canada, a couple of weeks ago, and they have an order of magnitude more data stored in Native Object Store than they do and say their structured enterprise data warehouse.
By combining the power of Teradata and the query engine that we have in Teradata to look at these open table format data stores and native object stores, it’s going to massively increase the ability for our customers to get insights from the data no matter where it is. So, we see it as, something that’s going to expand our total addressable market and something that we can leverage to grow our overall cloud ARR and ARR in total.
Operator: Thank you. The next question is from the line of Oliver Crookenden with Citizens JMP. Your line is now open.
Oliver Crookenden: Great. I’m on for Pat. So, I just wanted to touch on one of the customer examples you gave. You noted a major financial institution that selected Vantage Cloud. I’m wondering, is that a new logo or an existing customer migration? And then were they considering competitors heavily? Like what were the main selling points in that deal competitively?
Steve McMillan: That was an existing customers migrating to the cloud with us, and they it was a competitive situation where they did choose Vantage Cloud as their solution. And the reason that they did it was because they saw the migration of the Teradata environment would be least cost, least risk, and the lowest complexity from a migration perspective. They also saw that the real value of ClearScape Analytics and our QueryGrid functionality which are truly differentiated compared to the competition. We also use that to actually do some briefings with their executive team in terms of the value that the Teradata platform can bring to their business. We took a number of different use cases from across banks and the world to bring the very best Teradata to them and our understanding of the industry combined with our technology platform really was a differentiating capability there.
Oliver Crookenden: Great, thank you.
Operator: Thank you. The next question is from the line of Matt Hedberg with RBC. Your line is now open.
Unidentified Analyst: Hey, guys. This is Simran on for Matt Hedberg. Thanks for taking our question. Just one for me, I just wanted to double click on 2025 total ARR and revenue targets being pushed out. Do you still expect to achieve these targets in the back-half of 2025, or could they be delayed further out? And what are the assumptions that are embedded in these targets? And then on achieving a $1 billion in cloud ARR, what are you seeing in 2024 and beyond that gives you the confidence to achieve this target, on time? Thanks.
Claire Bramley: Yes, thank you. I’ll start with the second part of your question, and then I’ll go back to the first part. So, with regards to the $1 billion in cloud ARR, what we’ve done there is assumed, as I mentioned, a net expansion rate of approximately 120% that rolls forward from 2024 into 2025. I know we’re running slightly above that, but we think it’s prudent to assume approximately a 120%, especially as we move out to 2025. I think, given that, and the fact that we have a strong pipeline in ’24 and also pipeline going into 2025, a strong migration, gives us that confidence to be able to deliver the $1 billion in terms of cloud ARR. With regards to our total ARR, as I mentioned in 2024 and we’re kind of expecting a similar trend in 2025, we’re seeing our total ARR growth slightly lower and at the low end of our ’24 guidance and we expect this trend to continue out.
