Teradata Corporation (NYSE:TDC) Q1 2024 Earnings Call Transcript

And the main driver for that is because of the stronger and larger migrations from existing on-prem customers. So, with that, we’re kind of seeing maybe lower on-prem expansion activity. But we know that over the longer term, so as you get out from ’25 and into ’26, given that net expansion rate as we migrate those on-prem customers to the cloud that continues to give us much more growth opportunity, but looking further out into the future. So, we’ll see that additional expansion coming from those migrations in ’24 and ’25 as we progress out and exit ’25 into 2026. I think the other factor to remember when you’re thinking about our overall total growth rate as you look out into the future is the fact that we’ve always said that as a cloud becomes at scale and becomes more than a 50% of our total ARR, which we expect as we exit 2025, that is going to help our growth rate accelerate and increase as we look for ’26 and beyond.

So, that still applies and so we’re looking forward to seeing that total growth uplift from ’26 and beyond.

Unidentified Analyst: Great, thanks.

Operator: Thank you. There are no further questions at this time. I would like to turn the call back over to Steve McMillan for his final remarks.

Steve McMillan: Thank you very much, operator, and thank you everyone for joining us today. We’re looking ahead with confidence as we build on our healthy cloud growth rate and expand our customer base in the cloud. We absolutely believe we’ve got a differentiated position with our enterprise-scale platform for trusted AI. And as the conversation rotates to data and analytics and also about AI, we have the right solution for our customers. We’re going to build on that reputation of driving value for our customers as we accelerate cloud and total ARR growth throughout the year. Thank you very much for joining us today.

Operator: This concludes today’s conference call. You may now disconnect.