Teradata appoints new Chief Product Officer

SAN DIEGO - Teradata Corporation (NYSE:TDC), a provider of cloud analytics and data platforms for AI with a market capitalization of $1.94 billion and annual revenue of $1.75 billion, has announced the appointment of Sumeet Arora as its new Chief Product Officer effective April 28, 2025. According to InvestingPro analysis, the company maintains a strong 60.7% gross profit margin and is currently trading below its Fair Value. Arora, previously with ThoughtSpot as Chief Development Officer, will now lead Teradata’s product strategy, development, and execution.

Arora brings to Teradata a background in AI-driven analytics and product management. At ThoughtSpot, he was responsible for the global engineering, product, and design teams, enhancing their AI-powered data analytics platform. His tenure at Cisco as SVP and GM of Service Provider Networking saw him managing a multi-billion-dollar product portfolio, driving market share growth. This appointment comes as Teradata demonstrates solid financial health, with InvestingPro data showing a notable free cash flow yield and efficient capital management despite recent share price volatility.

Steve McMillan, President and CEO of Teradata, expressed confidence in Arora’s ability to guide the company through its next phase of product innovation and growth. McMillan highlighted Arora’s strategic vision and collaborative leadership as key to fostering a culture of innovation at Teradata.

Arora commented on the importance of trusted data in the era of autonomous business processes powered by AI. He emphasized Teradata’s position in enabling data-driven decisions across various industries and expressed enthusiasm for contributing to the company’s mission to deliver transformative business outcomes through product innovation.

Teradata, known for its cloud analytics and data platform, focuses on providing harmonized data and trusted AI to facilitate confident decision-making and drive impactful business results. This appointment is based on a press release statement and is intended to further Teradata’s commitment to innovation and customer success in the field of AI and data analytics. For a comprehensive analysis of Teradata’s financial health, growth prospects, and additional insights, investors can access the detailed Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks.

In other recent news, Teradata Corporation reported fourth-quarter revenue of $409 million, which fell short of analyst estimates of $414.95 million, marking an 11% year-over-year decline. Despite this, the company surpassed earnings expectations with adjusted earnings per share of $0.53, compared to the projected $0.44. However, Teradata’s guidance for 2025 disappointed investors, with projected earnings per share of $2.15-$2.25, below the consensus estimate of $2.46. In addition, Teradata’s Cloud Annual Recurring Revenue (ARR) reached $609 million in Q4, reflecting a 15% increase year-over-year, though total ARR declined by 6% to $1.47 billion.

Guggenheim Securities maintained a Buy rating for Teradata but lowered its price target from $42 to $37, citing challenges in meeting financial targets and a management change. The firm expressed concern over Teradata’s revised Cloud ARR target for 2025, now set at approximately $700 million, down from over $1 billion, and a projected revenue decline of 4-6% for the year. Meanwhile, JMP analysts upheld a Market Outperform rating following Teradata’s launch of the Enterprise Vector Store, which integrates NVIDIA’s NeMo Retriever microservices. This product, currently in private preview, is expected to become generally available in July 2025.

In executive news, Teradata appointed Michael Hutchinson as the new Chief Operating Officer, elevating him from his previous role as Chief Customer Officer. Hutchinson will oversee global operations, including IT and security, and continue to lead Teradata Global Customer Services.

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