Teradata Corporation
| Company Name | Teradata Corporation |
| Stock Symbol | TDC |
| Class Period | February 13, 2023 to February 12, 2024 |
| Lead Plaintiff Motion Deadline | August 13, 2024 |
On December 7, 2023, Teradata’s CFO stated that the Company had “an eight-figure deal that potentially [. . .] could get pushed out [of Q4 2023]”, which “could put [the Company] towards the low end or slightly below the range for cloud [annual recurring revenue (“ARR”)] that [it] previously gave.”
On this news, Teradata’s stock price fell $2.89, or 6.2%, to close at $43.40 per share on December 7, 2023, thereby injuring investors.
Then, on February 12, 2024, Teradata released its fourth quarter and full year 2023 financial results, revealing cloud and total ARR falling short of the Company’s original 2023 outlook due to “timing issues” and “a handful of large deals” that got pushed back into 2024. Additionally, the Company indicated that it was seeing significant declines for its on-premise solutions.
On this news, Teradata’s stock price fell $10.57, or 21.7%, to close at $38.22 per share on February 13, 2024, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) under Teradata’s expanded business model, which involved engagement with additional customer business units and decisionmakers, transactions with the Company’s customers took longer to finalize; (2) Teradata thus overstated its ability to close customer transactions within their intended timeframes under its expanded business model; (3) Teradata failed to timely close several customer transactions that it had factored into its outlook for 2023 ARR growth; (4) as a result, the Company was unlikely to meet its full year 2023 Total and Public Cloud ARR expectations; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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