Teradata Corp (TDC) 2024 Q3 法說會逐字稿

Good afternoon. My name is Cameron, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Teradata third-quarter 2024 earnings call. (Operator Instructions)

午安.我叫卡梅倫，今天我將擔任你們的會議操作員。此時此刻，我謹歡迎大家參加 Teradata 2024 年第三季財報電話會議。 （操作員說明）

I would now like to hand the conference over to your host today, Chad Bennett, Senior Vice President of Investor Relations and Corporate Development. You may begin your conference.

現在，我想將會議交給今天的東道主，投資者關係和企業發展高級副總裁 Chad Bennett。您可以開始您的會議了。

Good afternoon, and welcome to Teradata's 2024 third-quarter earnings call. Steve McMillan, Teradata's President and Chief Executive Officer, will lead our call today; followed by Claire Bramley, Teradata's Chief Financial Officer, who will discuss our financial results and outlook.

下午好，歡迎參加 Teradata 2024 年第三季財報電話會議。 Teradata 總裁兼執行長 Steve McMillan 將主持我們今天的電話會議；接下來是 Teradata 財務長 Claire Bramley，她將討論我們的財務表現和前景。

Our discussion today includes forecasts and other information that are considered forward-looking statements. While these statements reflect our current outlook, they are subject to a number of risks and uncertainties that could cause actual results to differ materially. These risk factors are described in today's earnings release and in our SEC filings, including our most recent Form 10-K and in the Form 10-Q for the quarter ended September 30, 2024, that is expected to be filed with the SEC within the next few days. These forward-looking statements are made as of today, and we undertake no duty or obligation to update them.

我們今天的討論包括預測和其他被視為前瞻性陳述的資訊。雖然這些陳述反映了我們當前的前景，但它們受到許多風險和不確定性的影響，可能導致實際結果出現重大差異。這些風險因素在今天的財報和我們向SEC 提交的文件中進行了描述，包括我們最新的10-K 表格和截至2024 年9 月30 日的季度的10-Q 表格，預計將在2024 年9 月30 日向SEC 提交。這些前瞻性陳述是截至今天作出的，我們不承擔更新這些陳述的責任或義務。

On today's call, we will be discussing certain non-GAAP financial measures, which exclude such items as stock-based compensation expense and other special items described in our earnings release. We will also discuss other non-GAAP items such as free cash flow, constant currency comparisons, and 2024 revenue and ARR growth outlook in constant currency.

在今天的電話會議上，我們將討論某些非公認會計原則財務指標，其中不包括基於股票的薪資費用和我們的收益發布中描述的其他特殊項目等項目。我們還將討論其他非 GAAP 項目，例如自由現金流、固定貨幣比較以及以固定貨幣計算的 2024 年收入和 ARR 成長前景。

Unless stated otherwise, all numbers and results discussed on today's call are on a non-GAAP basis. A reconciliation of non-GAAP to GAAP measures is included in our earnings release, which is accessible on our Investor Relations page of our website at investor.teradata.com. A replay of this conference call will be available later today on our website.

除非另有說明，否則今天電話會議討論的所有數字和結果均基於非公認會計原則。我們的收益報告中包含了非 GAAP 與 GAAP 指標的對賬，您可以在我們網站 Investor.teradata.com 的投資者關係頁面上查看該報告。今天晚些時候，我們的網站將提供本次電話會議的重播。

And now I will turn the call over to Steve.

現在我將把電話轉給史蒂夫。

Thanks, Chad, and thanks, everyone, for joining us today. In Q3, Teradata grew our cloud business, delivered enhanced technology innovations that strengthen our hybrid trusted AI position and added to our partner ecosystem, all core elements of our strategic plan. Cloud ARR grew 26% year over year as reported in Q3 with a solid cloud net expansion rate of 120%, and we have already close to an eight-figure cloud deal in the fourth quarter.

謝謝查德，也謝謝大家今天加入我們。第三季度，Teradata 發展了我們的雲端業務，提供了增強的技術創新，以加強我們的混合可信任人工智慧地位，並將我們策略計畫的所有核心要素添加到我們的合作夥伴生態系統中。根據第三季報告，雲端 ARR 年成長 26%，雲端淨擴張率為 120%，我們在第四季已經接近八位數的雲端交易。

Despite strong growth in cloud ARR, we have recently seen a change in our large transformational deals. Customers are planning to migrate workloads to the cloud in a more staged process. The total customer spend with Teradata is unchanged, and there is no impact on our total ARR. However, this shift results in a reduction to our cloud ARR, and we are, therefore, lowering our 2024 outlook to 18% to 22% for the full year.

儘管雲端 ARR 成長強勁，但我們最近發現大型轉型交易發生了變化。客戶規劃以更分階段的過程將工作負載遷移到雲端。 Teradata 的客戶總支出沒有變化，對我們的總 ARR 沒有影響。然而，這一轉變導致我們的雲端 ARR 下降，因此，我們將 2024 年全年展望下調至 18% 至 22%。

We see an ongoing healthy growth in our cloud business and continued migrations, which we anticipate is going to help us increase the mix of cloud in the future and help drive total ARR growth in 2025. The strength in the fundamentals of our business is clear, serving customers' needs across both our cloud and our on-prem businesses. We are increasingly seeing customers leverage our hybrid capabilities as they look to transform and commit to Teradata technology for the long term.

我們看到我們的雲端業務持續健康成長和持續遷移，我們預計這將幫助我們增加未來的雲端組合，並有助於推動 2025 年總 ARR 成長。雲端和本地業務滿足客戶的需求。我們越來越多地看到客戶在尋求轉型並長期致力於 Teradata 技術時利用我們的混合功能。

As we have shared, we see that Teradata is increasingly becoming more strategic. The very large organizations we work with have both data in the cloud and on-prem, and we believe we are uniquely positioned to address their needs with our differentiated hybrid platform.

正如我們所分享的，我們看到 Teradata 正變得越來越更具策略性。與我們合作的大型組織在雲端和本地都擁有數據，我們相信我們具有獨特的優勢，可以透過我們的差異化混合平台滿足他們的需求。

We remain comfortable in closing deals over time as evidenced by the eight-figure deal I mentioned. We're seeing signs of greater engagement with both customers and prospects and improvement in renewal rates. These are primarily the result of our go-to-market restructuring.

隨著時間的推移，我們仍然能夠輕鬆完成交易，我提到的八​​位數交易證明了這一點。我們看到了與客戶和潛在客戶的更多互動以及續訂率提高的跡象。這些主要是我們進入市場重組的結果。

We're in the early stages of our go-to-market reorganization and expect to see improving execution as we move into 2025. Our teams are taking AI to our customers, and more than 20% of our pipeline includes an active AI sales engagement.

我們正處於上市重組的早期階段，預計隨著進入 2025 年，執行力將得到改善。

In the third quarter, we continued to add new logos and grow our new logo pipeline. Teams are actively working on closing the large deals in the pipeline. Teradata remains true to being customer and market-driven, and we have adjusted the timing of deals to align with our customers' extended decision-making on these strategic opportunities.

在第三季度，我們繼續添加新徽標並擴大新徽標管道。團隊正在積極努力完成正在醞釀中的大型交易。 Teradata 始終堅持以客戶和市場為導向，我們調整了交易時間，以配合客戶對這些策略機會的長期決策。

Teradata remained highly profitable in the third quarter. Profitability increased with non-GAAP earnings per share of $0.69 versus $0.42 in Q3 of 2023 and free cash flow of $69 million compared to $36 million in Q3 of 2023. We will uphold our commitment to maintain margins, protect and grow free cash flow, and return capital to shareholders.

Teradata第三季仍保持高利潤。獲利能力提高，非GAAP 每股盈餘為0.69 美元，而2023 年第三季為0.42 美元；自由現金流為6,900 萬美元，而2023 年第三季為3,600 萬美元。 、保護和增加自由現金流的承諾，並向股東返還資本。

When we look ahead, we see opportunity. As companies embrace AI, they need data at scale. Data at scale is the foundation of GenAI applications and data at scale has always been at the core of Teradata. We've made great strides advancing our perception and our innovations, as I will now explain.

當我們展望未來時，我們會看到機會。隨著公司擁抱人工智慧，他們需要大規模數據。大規模資料是 GenAI 應用的基礎，大規模資料一直是 Teradata 的核心。正如我現在將解釋的那樣，我們在推進我們的認知和創新方面取得了長足進步。

I'll start with recognition received for our market position in trusted AI. Ventana Research rated Teradata as an overall leader and a top-rated analytic data platform company and is one of the best in meeting product and customer experience requirements. Ventana also ranked Teradata as exemplary in Ventana's AI and MLOps platform games.

我將從我們在可信人工智慧領域的市場地位獲得的認可開始。 Ventana Research 將 Teradata 評為整體領導者和頂級分析資料平台公司，並且是滿足產品和客戶體驗要求的最佳公司之一。 Ventana 也將 Teradata 評為 Ventana AI 和 MLOps 平台遊戲的典範。

We're also very pleased with the response from our recent possible events in London and Los Angeles, where we received positive feedback from customers, prospects, partners, and analysts. We heard consistent comments on our clear strategy, differentiation on trusted AI, and have partnerships that strengthen our open and connected ecosystem approach that customers want.

我們也對最近在倫敦和洛杉磯可能舉辦的活動所得到的反響感到非常滿意，在那裡我們收到了來自客戶、潛在客戶、合作夥伴和分析師的正面回饋。我們聽到了對我們明確的策略、可信賴人工智慧差異化的一致評論，並建立了合作夥伴關係，以加強我們客戶想要的開放和互聯的生態系統方法。

Across the board, we heard from attendees that they were impressed with the breadth of customers who shared their insights into the value Teradata brings to their organizations. One analyst noted that customers and partners alike continue to view Teradata as their strategic vendor around analytics and called out the potential we bring to help them with GenAI workloads.

與會者普遍表示，眾多客戶分享了他們對 Teradata 為其組織帶來的價值的見解，給他們留下了深刻的印象。一位分析師指出，客戶和合作夥伴仍然將 Teradata 視為他們在分析方面的策略供應商，並指出我們為幫助他們處理 GenAI 工作負載所帶來的潛力。

Another note is our strong pace of innovation, our differentiated hybrid capabilities, and our superior pricing economics for customers. It was from these customer events that we announced a sweeping set of innovations that support and advance our differentiated possession in trusted AI.

另一個值得注意的是我們強勁的創新步伐、我們差異化的混合能力以及我們為客戶提供的卓越定價經濟性。正是透過這些客戶活動，我們宣布了一系列全面的創新，這些創新支持和推進我們在可信任人工智慧領域的差異化佔有。

Starting with enhancements to ClearScape Analytics, our analytics engine for AI innovation. These enhancements are designed to enable organizations to maximize the return on investment of their AI and ML investments. They are also intended to boost data science productivity to achieve business outcomes faster and more efficiently.

首先是對 ClearScape Analytics 的增強，這是我們用於人工智慧創新的分析引擎。這些增強功能旨在使組織能夠最大限度地提高人工智慧和機器學習投資的投資回報。它們還旨在提高數據科學生產力，以更快、更有效地實現業務成果。

We have brought spark to ClearScape Analytics. Data scientists are now able to easily convert pyspark code to Teradata machine learning, eliminating the need for reengineering or data movement that significantly reduces complexity and costs.

我們為 ClearScape Analytics 帶來了火花。資料科學家現在能夠輕鬆地將 pyspark 程式碼轉換為 Teradata 機器學習，無需重新設計或資料移動，從而顯著降低複雜性和成本。

Customers can leverage VantageCloud's enterprise-grade workload management, security, and data integration that is designed to operationalize trusted AI at scale. And one example, a large Latin American bank recently trialed a migration of some data breaks workloads to VantageCloud using this capability. The workloads were to perform daily data analytics for 16 million credit card records and 75 million consumer transaction records.

客戶可以利用 VantageCloud 的企業級工作負載管理、安全性和資料集成，旨在大規模實施可信任人工智慧。舉一個例子，一家大型拉丁美洲銀行最近嘗試使用此功能將一些資料中斷工作負載遷移到 VantageCloud。工作負載將對 1,600 萬筆信用卡記錄和 7,500 萬筆消費者交易記錄執行每日資料分析。

The results were dramatic, 56% faster processing with VantageCloud and 47% cost savings with VantageCloud compared to Databricks, all without moving data in and out of their data warehouse.

結果非常顯著，與 Databricks 相比，VantageCloud 的處理速度提高了 56%，成本節省了 47%，而且所有這些都無需將資料移入或移出資料倉儲。

In October, we announced our new bring-your-own, or BYO LLM capability, designed to enable customers to simply and cost effectively deploy GenAI use cases at scale. Organizations are recognizing that larger language models aren't best suited for every use case and can be cost prohibitive.

10 月，我們宣布了新的自備或 BYO LLM 功能，旨在使客戶能夠簡單且經濟高效地大規模部署 GenAI 用例。組織認識到較大的語言模型並不適合所有用例，而且成本可能過高。

Bring-your-own language model allows companies to choose the best model for their specific business needs, including small or medium domain-specific language models from open-source providers like hugging face. Many models are free to use and expensive to run and can be tailored to industry and horizontal use cases for real-world value.

自帶語言模型允許公司根據其特定業務需求選擇最佳模型，包括來自開源提供者（如 Hugging Face）的中小型特定領域語言模型。許多模型可以免費使用，但運行成本昂貴，並且可以根據行業和橫向用例進行定制，以實現現實世界的價值。

For customers with more complex generative AI needs, including training or fine-tuning, ClearScape now also provides them with the flexibility to strategically leverage either GPUs or CPUs depending on the complexity and size of the large language model. Teradata's ability to leverage GPUs can allow customers to develop and operate LLMs for purpose-built GenAI business applications and not be constrained to siloed AI tools that require complex workflows or large amounts of data movement.

對於具有更複雜的生成式 AI 需求（包括訓練或微調）的客戶，ClearScape 現在也為他們提供了根據大型語言模型的複雜性和大小策略性地利用 GPU 或 CPU 的靈活性。 Teradata 利用 GPU 的能力可以讓客戶為專門建置的 GenAI 業務應用程式開發和營運 LLM，而不必局限於需要複雜工作流程或大量資料移動的孤立 AI 工具。

In addition to these models being easier to deploy and more cost-effective overall, we bring the language models to the data so that organizations can also minimize the expense of data movement and maximize security, privacy, and trust. With these ClearScape announcements, we are continuing to deliver what we see as the most powerful open and connected AI and ML capabilities in the market today. All VantageCloud customers have access to ClearScape analytics with these new features.

除了這些模型更易於部署且整體更具成本效益之外，我們還將語言模型引入資料中，以便組織還可以最大限度地減少資料移動的費用並最大限度地提高安全性、隱私和信任。透過這些 ClearScape 的發布，我們將繼續提供當今市場上最強大的開放式互聯 AI 和 ML 功能。所有 VantageCloud 客戶都可以透過這些新功能存取 ClearScape 分析。

Our focus on driving innovation has never been stronger, and I'm pleased to report that we have appointed Louis Landry as our Chief Technology Officer. I'm excited that Louis will bring his expertise in advanced engineering and emerging technologies to help accelerate the pace of innovation at Teradata. Louis has led our technology and innovation office, and his knowledge of Teradata technologies, deep engineering, and years of experience leading technology innovations at larger enterprises make them an excellent CTO for Teradata.

我們對推動創新的關注從未如此強烈，我很高興地報告，我們已任命 Louis Landry 為我們的技術長。我很高興 Louis 將利用他在先進工程和新興技術方面的專業知識來幫助加快 Teradata 的創新步伐。 Louis 領導了我們的技術和創新辦公室，他對 Teradata 技術、深入工程的了解以及在大型企業領導技術創新的多年經驗使他們成為 Teradata 的優秀首席技術官。

Hillary Ashton, our Chief Product Officer, will be leaving Teradata at the end of the year and will facilitate a smooth transition out of her role.

我們的首席產品長 Hillary Ashton 將於今年年底離開 Teradata，並將促進她的角色平穩過渡。

As we build on our innovations and strengthen our open and connected ecosystem, our focus on partnerships remains front and center. We recently announced integration of NVIDIA's AI-accelerated computing platform with our Vantage platform for the development and deployment of GenAI applications to accelerate trusted AI workloads, both large and small. VantageCloud Lake integration with NVIDIA's platform is designed to enable our customers to more affordably deploy everyday GenAI use cases faster and in their environment of choice for immediate return on investment.

在我們不斷創新並加強開放和互聯生態系統的過程中，我們對合作夥伴關係的關注仍然是首要和核心。我們最近宣布將 NVIDIA 的 AI 加速計算平台與我們的 Vantage 平台集成，用於開發和部署 GenAI 應用程序，以加速大型和小型的可信任 AI 工作負載。 VantageCloud Lake 與 NVIDIA 平台的整合旨在使我們的客戶能夠以更經濟的方式在他們選擇的環境中更快地部署日常 GenAI 用例，從而立即獲得投資回報。

We also announced that the Teradata platform is now integrated with dbt Cloud. We bring our ability to manage complex, large-scale data sets with enterprise-grade reliability, robust security and governance, and combine that with dbt's transformation tools to turn raw data into actionable insights. Together, we believe that we can enable unparalleled data management and agile analytics, empowering engineering teams to transform data at scale with less manual effort, all in service of helping organizations accelerate their AI and ML initiatives.

我們也宣布 Teradata 平台現已與 dbt Cloud 整合。我們具有管理複雜、大規模資料集的能力，具有企業級可靠性、強大的安全性和治理能力，並將其與 dbt 的轉換工具相結合，將原始資料轉化為可行的見解。我們相信，我們可以共同實現無與倫比的數據管理和敏捷分析，使工程團隊能夠以更少的手動工作大規模轉換數據，所有這些都有助於幫助組織加速其人工智慧和機器學習計畫。

Finally, we introduced a generative AI-driven customer complaint analyzer solution built on VantageCloud Lake in concert with edge solutions and consulting. Customer complaint analyzer is designed to continuously capture data signals in order to identify, address, and prevent customer complaints. The powerful solution is designed to help companies improve their customers' experience and reduce churn, and we already have a healthy opportunity pipeline for this new AI use case.

最後，我們推出了基於 VantageCloud Lake 的生成式人工智慧驅動的客戶投訴分析器解決方案，並與邊緣解決方案和諮詢相結合。客戶投訴分析儀旨在持續捕獲數據訊號，以識別、解決和防止客戶投訴。這個強大的解決方案旨在幫助公司改善客戶體驗並減少客戶流失，而且我們已經為這個新的人工智慧用例擁有了良好的機會管道。

We've had great customer reaction to our announcements. For example, our team demonstrated how we can help companies more effectively integrate signals from customers into their workflows and quickly act on them. We use Hugging Face models, leveraging the bring-your-own model feature in ClearScape analytics to analyze and summarize customer calls for classifying the output and automating treatment of next best action, all in a single integrated analytic workflow without moving data.

客戶對我們的公告反應熱烈。例如，我們的團隊示範如何幫助公司更有效地將客戶的訊號整合到他們的工作流程中並快速採取行動。我們使用Hugging Face 模型，利用ClearScape 分析中的自帶模型功能來分析和總結客戶呼叫，以對輸出進行分類並自動處理下一個最佳操作，所有這些都在一個集成的分析工作流程中進行，無需移動數據。

This AI-driven solution provides faster responses to customers, and we demonstrated how an entity could analyze and address 300,000 calls a day, up from 30,000 a day with our manual process. We are seeing great interest as the benefits can be far reaching, including cost savings, improving customer satisfaction, and increasing the lifetime value of the customer.

這種人工智慧驅動的解決方案可以更快地回應客戶，我們演示了實體如何分析和處理每天 300,000 個呼叫，而手動流程每天處理 30,000 個呼叫。我們看到了極大的興趣，因為它的好處可能是深遠的，包括節省成本、提高客戶滿意度以及增加客戶的終身價值。

These announcements and our customer engagement events are executed with one goal, help our customers achieve massive value for trusted data and trusted AI.

這些公告和我們的客戶參與活動都是為了一個目標而執行的，即幫助我們的客戶實現可信任數據和可信賴人工智慧的巨大價值。

I'll wrap up with a sampling of some of our recent wins that should illustrate this goal in action. A US insurance company and member of the S&P 500 migrated to the cloud with VantageCloud Lake on AWS. Their account had implemented a cloud strategy and migrated its Hadoop data lake to Snowflake years ago before we had a cloud offering.

最後，我將列舉一些我們最近的勝利，以說明這一目標的實際行動。一家美國保險公司和標準普爾 500 強公司成員透過 AWS 上的 VantageCloud Lake 遷移到雲端。幾年前，在我們提供雲端產品之前，他們的帳戶就實施了雲端策略並將其 Hadoop 資料湖遷移到 Snowflake。

Our team introduced VantageCloud Lake and demonstrated that Teradata was the best and most cost-effective solution for the company's complex workloads, and we won this business back. Our lake offering on AWS will support the customers' business insurance division and more. We're collaborating with Cognizant on the migration.

我們的團隊引入了 VantageCloud Lake，並證明 Teradata 是針對公司複雜工作負載的最佳且最具成本效益的解決方案，我們重新贏得了這項業務。我們在 AWS 上提供的 Lake 產品將為客戶的商業保險部門等提供支援。我們正在與 Cognizant 合作進行遷移。

We also had a significant win with one of the largest banks in Asia Pacific. In this competitive win, the bank chose Teradata on AWS to achieve the robust performance and reliability needs. It runs risk, compliance, and regulatory reporting on Teradata. We will also integrate VantageCloud Lake as an innovation platform so that the bank can develop AI/ML use cases with further constraints of working with production data. This move marks a significant evolution to enhance their agility and innovation capabilities.

我們也與亞太地區最大的銀行之一取得了重大勝利。在這場競賽中，該銀行選擇 AWS 上的 Teradata 來滿足強大的效能和可靠性需求。它在 Teradata 上運行風險、合規性和監管報告。我們還將整合 VantageCloud Lake 作為創新平台，以便銀行可以開發 AI/ML 用例，並進一步限制處理生產資料。此舉標誌著增強他們的敏捷性和創新能力的重大演變。

And finally, a Fortune 500 insurance giant added VantageCloud Lake on AWS to run additional analytic workloads for its finance department.

最後，財富 500 強保險巨頭在 AWS 上新增了 VantageCloud Lake，為其財務部門運行額外的分析工作負載。

As I close, I'll reiterate that we remain committed to accelerating growth and innovation. We see strong market opportunity that aligns to our strengths, and we are delivering AI innovations and value for customers. We have proven that Teradata can and does evolve with changing market dynamics as we've grown our cloud ARR business to more than $0.5 billion in under four years while aggressively returning capital to shareholders.

在結束時，我將重申我們仍然致力於加速成長和創新。我們看到了與我們的優勢相符的強大市場機會，我們正在為客戶提供人工智慧創新和價值。我們已經證明，Teradata 能夠而且確實隨著不斷變化的市場動態而發展，我們的雲端 ARR 業務在不到四年的時間內成長到超過 5 億美元，同時積極向股東返還資本。

We believe that we are well positioned with a hybrid trusted AI platform as enterprises begin to commercialize AI uses. We have been and will continue to take actions to improve growth. We have made meaningful leadership changes in products and go-to-market with Rich now in the CRO role for two quarters.

我們相信，隨著企業開始將人工智慧用途商業化，我們在混合可信任人工智慧平台上處於有利地位。我們已經並將繼續採取行動促進成長。我們在產品和上市方面進行了有意義的領導層變動，Rich 擔任 CRO 職位已有兩個季度。

We have made material changes in our go-to-market organization designed to improve execution. We believe we are taking the right actions to return us to growth. And while it's still early in seeing the results from those changes, we firmly believe in our differentiated technology, our people, and in our future.

我們對上市組織進行了重大變革，旨在提高執行力。我們相信，我們正在採取正確的行動來恢復成長。雖然現在看到這些變化的結果還為時過早，但我們堅信我們的差異化技術、我們的員工和我們的未來。

Now I'll pass the call to Claire.

現在我會把電話轉給克萊爾。

Thank you, Steve, and good afternoon, everyone. In the third quarter, cloud ARR grew to 38% of our total ARR, up from 30% at this time last year. We continue to demonstrate strong improvement in operating margin, profitability, and free cash flow generation. Year-over-year free cash flow nearly doubled, and our operating margin increased over 800 basis points.

謝謝史蒂夫，大家下午好。第三季度，雲端 ARR 佔總 ARR 的比例從去年同期的 30% 增加到 38%。我們持續在營業利潤率、獲利能力和自由現金流產生方面展現出強勁的改善。自由現金流年增近一倍，營業利益率成長超過 800 個基點。

As Steve mentioned, we anticipate a different migration product within our large transformational cloud deals. The durable nature of our business model remains intact with over 80% of our revenue being recurring, delivering a gross margin of over 70% and a total operating margin of 20%. With the reiteration of our total ARR outlook, we continue to expect improvement in our overall retention rates going forward.

正如史蒂夫所提到的，我們預計在我們的大型轉型雲端交易中會出現不同的遷移產品。我們業務模式的持久性保持不變，超過 80% 的收入是經常性的，毛利率超過 70%，總營業利潤率達到 20%。隨著我們重申總 ARR 前景，我們繼續預計未來整體保留率將有所改善。

Let me now share more details on our quarterly financial results, starting with revenue. Third-quarter recurring revenue was $372 million, up 3% year over year as reported and 5% year over year in constant currency. Recurring revenue was driven by the strong growth in cloud revenue. We saw a small net benefit from upfront revenue in the quarter.

現在讓我分享有關我們季度財務業績的更多詳細信息，從收入開始。第三季經常性營收為 3.72 億美元，按報告年增 3%，以固定匯率計算年增 5%。經常性收入是由雲端收入的強勁成長所推動的。我們從本季的預付收入中看到了小幅淨收益。

Recurring revenue as a percentage of total revenue was 85%, up from 82% from the prior-year period. Third-quarter total revenue was $440 million, flat year over year as reported and up 2% in constant currency. The year-over-year constant currency growth in recurring revenue was partially offset by lower consulting revenue.

經常性收入佔總收入的比例為 85%，高於去年同期的 82%。第三季總營收為 4.4 億美元，較去年同期持平，以固定匯率計算成長 2%。經常性收入的同比恆定貨幣成長被諮詢收入的下降部分抵消。

Moving to profitability and free cash flow. Total gross margin was 61.6%, up 130 basis points year over year, driven by our strategic focus on recurring revenue. Operating margin was 22.5%, up over 800 basis points year over year.

轉向獲利和自由現金流。在我們對經常性收入的策略重點的推動下，總毛利率為 61.6%，較去年同期成長 130 個基點。營業利益率為 22.5%，較去年同期成長超過 800 個基點。

Non-GAAP diluted earnings per share was $0.69, exceeding the top end of our guidance range. The primary drivers for the EPS outperformance were currency and upfront revenue. We generated $69 million of free cash flow in the quarter, which is a $30 million increase sequentially and nearly doubled on a year-over-year basis.

非 GAAP 稀釋後每股收益為 0.69 美元，超出了我們指導範圍的上限。每股盈餘表現優異的主要驅動因素是貨幣和預付費用。本季我們產生了 6,900 萬美元的自由現金流，比上一季增加了 3,000 萬美元，比去年同期幾乎翻了一番。

In the third quarter, we repurchased approximately $15 million, or 0.5 million shares. Year to date, we have returned 144% of free cash flow in the form of share repurchases, and we remain committed to returning at least 75% on a full-year basis.

第三季度，我們回購了約 1,500 萬美元，即 50 萬股股票。今年迄今為止，我們以股票回購的形式返還了 144% 的自由現金流，我們仍然致力於全年返還至少 75%。

Moving to our full-year 2024 outlook. As a reminder, our outlook ranges are in constant currency for the ARR and revenue metrics. We reaffirm our previous outlook for total ARR, total revenue, recurring revenue, and free cash flow.

展望 2024 年全年。提醒一下，我們的展望範圍是以固定匯率計算的 ARR 和收入指標。我們重申先前對總 ARR、總收入、經常性收入和自由現金流的預期。

Although total ARR is unchanged, we are seeing a different mix between cloud and on-prem. For cloud ARR, we now expect more stage migrations for the large transformational deals and anticipate growth of 18% to 22%.

儘管總 ARR 沒有變化，但我們看到雲端和本地之間的組合有所不同。對於雲端 ARR，我們現在預計大型轉型交易將進行更多階段遷移，並預計將成長 18% 至 22%。

We are increasing the non-GAAP earnings per share outlook. It is now $2.30 to $2.34. Additional full-year outlook assumptions include weighted average shares outstanding of approximately 98 million, other expense of approximately $48 million.

我們正在提高非公認會計準則每股收益的預期。目前價格為 2.30 美元至 2.34 美元。其他全年展望假設包括加權平均已發行股數約 9,800 萬股，其他費用約 4,800 萬美元。

We project a non-GAAP tax rate of approximately 25%. Our net expansion rate, we anticipate a slight deceleration, but to still be in line with historical levels.

我們預計非 GAAP 稅率約為 25%。我們預計淨擴張率將略有放緩，但仍符合歷史水準。

Regarding our outlook for the fourth quarter of 2024, we anticipate non-GAAP diluted earnings per share to be in the range of $0.40 to $0.44. We project the non-GAAP tax rate to be approximately 22.1% and the weighted average shares outstanding of 97.5 million. Previously announced cost reduction actions remain on track and ensure the durability of our margin profile as we return to total ARR growth next year.

關於我們對 2024 年第四季的展望，我們預計非 GAAP 攤薄每股收益將在 0.40 美元至 0.44 美元之間。我們預計非 GAAP 稅率約為 22.1%，加權平均流通股為 9,750 萬股。先前宣布的成本削減行動仍在按計劃進行，並確保我們明年恢復總 ARR 成長時利潤率的持久性。

Free cash flow growth remains our focus, and we are committed to return 75% of free cash flow to shareholders in the form of buybacks. We will provide an update to our fiscal 2025 outlook during our Q4 earnings call in February.

自由現金流成長仍是我們的重點，我們承諾以回購的形式將75%的自由現金流回饋給股東。我們將在 2 月的第四季財報電話會議上提供 2025 財年展望的最新資訊。

Thank you very much for your time today. Let's please open the call for questions.

非常感謝您今天抽出時間。讓我們打開提問電話。

(Operator Instructions) Matt Hedberg, RBC.

（操作員說明）Matt Hedberg，RBC。

Maybe one for Steve and then one for Claire. You noted sort of at the top of your mark, there was a change in how customers are thinking about cloud migration. I'm curious if you could just maybe double-click on that a bit more. Is this an industry-wide thing? Do you think it's something that's sort of unique maybe to your base?

也許一份給史蒂夫，一份給克萊爾。您指出，客戶對雲端遷移的看法改變了。我很好奇你是否可以再雙擊一下。這是全行業的事嗎？你認為這對你的基地來說可能是獨一無二的嗎？

And I'm just sort of curious, has it changed sort of the medium-term outlook on cloud mix and kind of overall growth when obviously that cloud mix is part of a big part of sort of the total company acceleration?

我只是有點好奇，它是否改變了雲端組合的中期前景和整體成長，而顯然雲端組合是公司整體加速的重要組成部分？

Thanks, Matt, for that question, and I'll let you come back to ask a clearer question afterwards. Fundamentally, we are seeing strength in our business, both from a cloud perspective and from an on-prem perspective. But as I said in my prepared remarks, we have seen recently a material change and the buying behavior in a handful of our large conversion deals.

謝謝馬特提出這個問題，之後我會讓你回來問一個更清楚的問題。從根本上講，無論是從雲端角度還是從本地角度來看，我們都看到了我們業務的優勢。但正如我在準備好的演講中所說，最近我們在一些大型轉換交易中看到了重大變化和購買行為。

The way these customers are approaching their cloud strategy is in a more staged nature. They're breaking down that cloud migration into smaller deals. And as they're doing that, they're actually leveraging the hybrid nature of our platform where they can run both in the cloud and on-prem.

這些客戶實施雲端策略的方式更具階段性。他們正在將雲端遷移分解為更小的交易。當他們這樣做時，他們實際上正在利用我們平台的混合性質，他們可以在雲端和本地運行。

So to your point, we are seeing a mix change of committing in the cloud and on-prem. And so while initially, we're less than the cloud, we don't see a change to the total commitment or opportunity, and that's why we reiterated our full year '24 total ARR gain.

因此，就您而言，我們看到了雲端和本地提交的混合變化。因此，雖然最初我們的規模比雲端要小，但我們沒有看到整體承諾或機會發生變化，這就是為什麼我們重申 24 年全年總 ARR 收益的原因。

And in '25, we talked about returning to growth from a total ARR perspective. So we saw a handful of eight-figure deals essentially, in some cases, convert into a set of seven-figure deals.

在 25 年，我們討論了從整體 ARR 角度恢復成長。因此，我們看到一些八位數的交易在某些情況下基本上轉化為一組七位數的交易。

Got it. That's super helpful, Steve. And then maybe sort of a related question for Claire. To me, it feels like there's a bit more higher priority on Q4 on-premise spending within your base. And I guess I'm wondering -- I think a lot of us are wondering, do we see maybe a bit more of a December budget flush this year?

知道了。這非常有幫助，史蒂夫。然後可能是克萊爾的一個相關問題。對我來說，感覺您的基礎上第四季度的本地支出有更高的優先順序。我想我想知道——我想我們很多人都想知道，今年 12 月的預算是否會增加一些？

And I'm wondering, did your guidance contemplate maybe a bit more of that given that historically budget flush, I think, tends to impact more on-prem than cloud? And then when you think about sort of cloud growth and maybe even reacceleration, what are the building blocks of that essentially?

我想知道，考慮到歷史上的預算充裕，您的指導是否考慮了更多這一點，我認為，對本地的影響往往比對雲端的影響更大？然後，當您考慮某種雲端成長甚至重新加速時，其本質上的建置模組是什麼？

Matt, yeah. So just on your first part of your question with regards to budget flush, we haven't factored any uplift from a budget for us. We've done a customer-by-customer pipeline analysis. And as Steve said, look at what we expect to close in '24 and factor that into our updated assumptions for both total ARR and cloud ARR. So no budget flush assumed for on-prem at the end of 2024 in December.

馬特，是的。因此，就您關於預算充裕的問題的第一部分而言，我們沒有考慮到預算的任何增加。我們已經完成了逐一客戶的管道分析。正如 Steve 所說，看看我們預計在 24 年結束的情況，並將其納入我們對總 ARR 和雲端 ARR 的更新假設中。因此，假設 2024 年底 12 月本地部署的預算不會增加。

With regards to as you look forward into the future, so I think just generally on 2025, I would say we're still driving towards the metrics that we talked about last quarter. As Steve just mentioned, that means total ARR growth in 2025 and also growth in our free cash flow year over year in 2025, and we continue to anticipate a robust growth in cloud ARR in 2025 as well.

展望未來，我認為總體而言，到 2025 年，我們仍在朝著上季討論的指標邁進。正如 Steve 剛才提到的，這意味著 2025 年的總 ARR 增長以及 2025 年我們的自由現金流將同比增長，我們繼續預計 2025 年雲端 ARR 也將強勁增長。

So naturally, we're not providing detailed guidance. And this quarter, we'll provide it at our Q4 earnings, which is in line with when we would normally provide it, which is in February of next year.

當然，我們不會提供詳細的指導。本季度，我們將在第四季度收益中提供它，這與我們通常提供它的時間一致，即明年 2 月。

Chirag Ved, Evercore ISI.

Chirag Ved，Evercore ISI。

Steve, if you think about the business over the next couple of quarters, given the mix change and customer approach to cloud, does this change how much you're indexing on cloud versus on-prem in terms of your approach to innovation, contracts, renewals at this point? And what are you seeing to support and guide that decision-making process?

史蒂夫，如果您考慮未來幾季的業務，考慮到雲端的組合變化和客戶方法，這是否會改變您在雲端上與本地部署上的索引在創新、合約、此時續約？您認為什麼可以支持和指導決策過程？

Thanks, Chirag, for the question. So I just want to reiterate, we are completely committed to our cloud-first strategy. We believe it continues to reposition Teradata in the marketplace as modern and relevant for our customers. And we believe that the innovations that we develop from a cloud perspective, they actually enable additional capabilities on-prem.

謝謝奇拉格的提問。所以我想重申，我們完全致力於我們的雲端優先策略。我們相信，它將繼續將 Teradata 在市場上重新定位為現代且與我們的客戶相關的產品。我們相信，我們從雲端角度開發的創新實際上可以在本地實現額外的功能。

So as an example, I was talking about being able to bring your own language model. We are actually able to leverage our technologies and technology development to actually deliver that capability, both in the cloud and on-prem. So the focus from a strategic perspective, it's very much to keep on that cloud first mission, cloud first, but not cloud only, is absolutely our strategy.

舉個例子，我談論的是能夠帶來自己的語言模型。我們實際上能夠利用我們的技術和技術開發來實際提供該功能，無論是在雲端還是在本地。因此，從策略角度來看，重點是堅持雲端優先的使命，雲端優先，但不僅僅是雲，這絕對是我們的策略。

I would say as well that as we look forward, the strength of our cloud pipeline still remains intact. We expect these customers to continue a migration path to the cloud with Teradata and we have continuously demonstrated that we are the least risked path to the cloud for some of the largest organizations in the world to move that complex, large workload to the cloud and utilize the Teradata technology set in the cloud.

我還要說的是，當我們展望未來時，我們的雲端管道的實力仍然完好無損。我們希望這些客戶繼續使用 Teradata 遷移到雲，我們不斷證明，對於世界上一些最大的組織來說，我們是風險最小的雲端路徑，可以將複雜、大量的工作負載遷移到雲端並利用雲端的Teradata技術。

So because we're not seeing any deterioration overall in the pipeline, we're just seeing that timeline of migration pushing out into the future, we remain committed to that cloud strategy and code execution and we believe it will still remain a fundamental part of our growth strategy as we move forward.

因此，因為我們沒有看到管道中的任何惡化，我們只是看到遷移時間表推向未來，我們仍然致力於雲端策略和程式碼執行，我們相信它仍然是雲端運算的基本組成部分。戰略。

Great. And then, Claire, maybe one for you. Recurring revenue came in ahead of where the street was at for Q3, and you maintain the full-year guide. Can you talk through what happened in Q3 and what you're expecting in Q4 from the recurring revenue point of view?

偉大的。然後，克萊爾，也許有一個適合你。經常性收入高於第三季的實際收入，並且您維持全年指南。您能否從經常性收入的角度談談第三季發生的情況以及您對第四季的預期？

Yeah. So I think it's just more of a linearity in the modeling, Chirag, so not a big difference in terms of what we're expecting internally. We did see a slight benefit from more upfront revenue which hits both total revenue and recurring revenue, but that was more of a linearity change. So no overall change to what we're expecting, just a slight shift between Q3 and Q4, which is why the full-year guide remained unchanged.

是的。所以我認為這只是建模中的線性關係，Chirag，所以就我們內部的期望而言並沒有太大差異。我們確實看到更多的前期收入帶來了輕微的好處，這對總收入和經常性收入都有影響，但這更多的是線性變化。因此，我們的預期總體上沒有變化，只是第三季和第四季之間略有變化，這就是全年指南保持不變的原因。

Tyler Radke, Citi.

泰勒·拉德克，花旗銀行。

Steve, I wanted to go back to the commentary you made around the staged migrations that you're seeing with customers in terms of moving the cloud I guess why do you think this is happening? And why now? I mean, is this a macro budgetary-driven decision? I mean it would seem like budgets have been tight for a while. So what's kind of your theory on why this is happening and why now?

史蒂夫，我想回到您對客戶在雲端遷移方面所看到的分階段遷移所做的評論，我想您認為為什麼會發生這種情況？為什麼現在呢？我的意思是，這是一個宏觀預算驅動的決定嗎？我的意思是，預算似乎已經緊張了一段時間了。那麼對於為什麼會發生這種情況以及為什麼現在會發生，您的理論是什麼？

And just to clarify, is this only customers that you saw in Q3? What makes you think that this was just a function of the sample size versus a broader trend that extends into next year?

澄清一下，這只是您在第三季看到的客戶嗎？是什麼讓您認為這只是樣本量與延續到明年的更廣泛趨勢的函數？

So over the past couple of months, we've branded our customer marketing events, both in London and LA, gave us the opportunity to talk in depth with a number of our customers regarding what their plans are and how they plan to move forward. Now we're seeing an impact in a handful of our really very large deals.

因此，在過去的幾個月裡，我們在倫敦和洛杉磯舉辦了客戶行銷活動，讓我們有機會與許多客戶深入討論他們的計劃以及他們計劃如何前進。現在，我們看到一些非常大的交易受到了影響。

So looking at those eight-figure deals and where we've had appetite for customers to make a migration path with this and migrate their entire real estate to the cloud and one program, just like the deal that we signed early in the fourth quarter, the eight-figure deal that we signed.

因此，看看這些八位數的交易，以及我們希望客戶以此為遷移路徑並將其整個房地產遷移到雲端和一個程式的興趣，就像我們在第四季度初簽署的交易一樣，我們簽署的八位數協議

But we are seeing a handful of customers that are choosing to essentially take from their perspective, a less risk approach to these major transformational programs that they are executing. They're still committing to Teradata and in many cases, they're committing incremental spend with Teradata across both on-prem and the cloud. But for the cloud deals, we expect those to close in a more staged process. So instead of one eight-figure deal, we'll close multiple seven-figure deals over a longer time period.

但我們看到少數客戶選擇從本質上從他們的角度出發，採取風險較小的方法來執行他們正在執行的這些重大轉型計劃。他們仍然致力於 Teradata，並且在許多情況下，他們在本地和雲端都承諾在 Teradata 上增加支出。但對於雲端交易，我們預期這些交易將在更分階段的過程中完成。因此，我們將在更長的時間內完成多筆七位數的交易，而不是一筆八位數的交易。

Very helpful. And a follow-up on that for Claire. So last quarter, you talked about seeing similar cloud growth as your prior guide in 2025 is 2024, which I think was around 30% and $1 billion in cloud in 2026. Do you still expect $1 billion in 2026? Or does this sort of change the trajectory of that cloud business ramping to $1 billion?

非常有幫助。克萊爾的後續行動。因此，上個季度，您談到了類似的雲端成長，因為您之前的2025 年指南是2024 年，我認為2026 年雲端運算將成長30% 左右，價值10 億美元。億美元嗎？或者這會改變雲端業務成長至 10 億美元的軌跡？

I guess, Tyler, just on that, I would say we still see a path to the $1 billion for cloud ARR in 2026. Naturally, we're working with these customers on the detailed timing of their stage processes. So we will obviously update the cloud era for 2025 in February.

Tyler，我想，就這一點而言，我們仍然看到 2026 年雲端 ARR 達到 10 億美元的道路。所以我們顯然會在 2 月更新 2025 年的雲端時代。

We don't anticipate to recover all of this in 2025, but definitely, we anticipate as Steve mentioned, some of these additional stages to close in 2025. So we'll come back on the 2025 cloud ARR, but we still see that part to the $1 billion because, as Steve said, they're still committing to migrate with us over time.

我們預計不會在 2025 年恢復所有這些，但正如 Steve 所提到的，我們預計其中一些額外階段將在 2025 年結束。 10 億美元，因為正如史蒂夫所說，他們仍然承諾隨著時間的推移與我們一起遷移。

Erik Woodring, Morgan Stanley.

艾瑞克‧伍德林，摩根士丹利。

Steve, maybe I'll start with you just it feels like Teradata has faced a bit of a perfect storm of headwinds this year between some on-prem erosion, some deal elongation, and now some cloud migration timing dynamics. And I'm just wondering how can you be sure that the headwinds that you have encountered this year have nothing to do with competitive pressures.

Steve，也許我會從你開始，感覺今年 Teradata 面臨著一場完美的逆風風暴，包括一些本地侵蝕、一些交易延長，以及現在的一些雲端遷移時間動態。我只是想知道你如何確定今年遇到的逆風與競爭壓力無關。

For example, elongating sale cycles are taking longer to migrate to the cloud, is there a sign that there's a risk that those customers are potentially evaluating maybe other cloud-native platforms? Just help us gain some comfort that this isn't competitive risk and this is more just related to timing and maybe company-specific issues? And then I have a quick follow-up. Thanks so much.

例如，延長的銷售週期需要更長的時間才能遷移到雲端，是否有跡象表明這些客戶可能有評估其他雲端原生平台的風險？只是幫助我們獲得一些安慰，這不是競爭風險，而這更只是與時機有關，也許與公司特定的問題有關？然後我會進行快速跟進。非常感謝。

Yeah, thanks, Erik. Look, we absolutely expect to convert these opportunities over time that are in the pipeline. And I want to refer to the fact that those customers are actually making commitments to us from both an on-prem and a cloud perspective. So we expect them to start those cloud journeys with us. So we're just seeing essentially a more staged approach to the execution.

是的，謝謝，艾瑞克。看，我們絕對希望隨著時間的推移轉化這些正在醞釀中的機會。我想指出這樣一個事實：這些客戶實際上從本地和雲端的角度向我們做出了承諾。因此，我們希望他們與我們一起開始這些雲之旅。所以我們本質上只是看到一種更分階段的執行方法。

From a competitive perspective, I'm very proud of how we're doing from a competitive perspective. I mentioned in my prepared remarks, one customer that had migrated to Snowflake that has recently made the decision to come back to utilizing the Teradata platform in the cloud. But I'm also really happy with how we're doing from a competitive perspective against the newer players like Databricks.

從競爭的角度來看，我對我們的表現感到非常自豪。我在準備好的發言中提到，一位已遷移到 Snowflake 的客戶最近決定重新使用雲端中的 Teradata 平台。但我也對我們從競爭角度與 Databricks 等新玩家的表現感到非常滿意。

I made the reference to a Latin American bank that had migrated workloads from Databricks. And actually, they are utilizing Teradata, and they're doing it twice as fast in terms of process and speed and it's half the cost. And we're continuously building up that catalog of competitive execution and competitive win backs.

我提到了一家拉丁美洲銀行，該銀行已從 Databricks 遷移了工作負載。事實上，他們正在利用 Teradata，並且在流程和速度方面的速度提高了一倍，而成本卻降低了一半。我們正在不斷建立有競爭力的執行和有競爭力的贏回目錄。

We are absolutely convinced of our lowest cost per query in comparison to the competition. I think what we see as we look at these very large deals and some of the largest organizations in the world, it's really all about risk appetite. And for DC with Teradata as the least risk way of actually migrating to the cloud and getting the benefits of cloud technology.

與競爭對手相比，我們絕對相信我們的每次查詢成本最低。我認為，當我們審視這些非常大的交易和世界上一些最大的組織時，我們所看到的實際上都是關於風險偏好的。對於資料中心來說，Teradata 是實際遷移到雲端並獲得雲端技術優勢的風險最小的方式。

So I think the way that they're using and deploying our technology set in terms of our hybrid capabilities is something that none of the other competition can actually deliver against. And so leveraging that hybrid capability as they execute through in a migration gives us a differentiated position. So that's how we can be more assured that we're doing well from a competition perspective.

因此，我認為他們在混合功能方面使用和部署我們的技術集的方式是其他競爭對手無法真正實現的。因此，在遷移中執行時利用這種混合功能為我們提供了差異化的地位。這樣我們就可以更確信，從競爭的角度來看，我們做得很好。

Okay. That's really helpful. And then maybe my follow-up is for you, Claire, which is, can you maybe just talk a little bit more about the change in growth gross margin profile of your recurring revenue base, given some of these mix shifting dynamics and what -- and really when you expect that recurring revenue gross margin to kind of bottom and stabilize and start to expand? Has that timeline changed as you've now kind of thought about the different underlying mix between on-prem and cloud and your business?

好的。這真的很有幫助。然後，也許我的後續行動是針對你的，克萊爾，也就是說，考慮到其中一些混合變化的動態以及什麼，你能否再多談談你的經常性收入基礎的增長毛利率狀況的變化— —實際上，當您預計經常性收入毛利率會觸底並穩定並開始擴大時？當您現在考慮本地和雲端與您的業務之間不同的底層組合時，時間表是否發生了變化？

Thanks, Erik. Yeah. So just with regards to gross margin, we've actually been very stable with our total gross margin and our recurring gross margin over the last couple of quarters. And I'm pleased that even though we've been increasing the mix of cloud ARR, we've been able to offset the negative impact that, that has by an improvement in our cloud margin rate. So seeing a continued improvement in cloud margin rate year over year and quarter over quarter and expecting that to continue, and we're seeing that offset the negative impact from the mix change.

謝謝，埃里克。是的。因此，就毛利率而言，過去幾季我們的總毛利率和經常性毛利率實際上非常穩定。我很高興的是，儘管我們一直在增加雲端 ARR 的組合，但我們已經能夠透過雲端利潤率的提高來抵消其帶來的負面影響。因此，看到雲端利潤率同比和環比持續改善，並預計這種情況將持續下去，我們看到這抵消了組合變化的負面影響。

And I think as we look out into the future and we continue to increase the mix of cloud ARR, we will continue to maintain that stability.

我認為，當我們展望未來並繼續增加雲端 ARR 的組合時，我們將繼續保持這種穩定性。

Howard Ma, Guggenheim.

霍華德·馬，古根漢。

Steve, I want to -- I understand you already gave a pretty thorough explanation of the stage migrations. But what can you point to further? I mean, maybe -- so I just -- I was just brainstorming. I was thinking maybe it's its verbal customer commits around the timing of migration expansions, even if it's not contractual, maybe you can share some data on conversations or maybe it's telemetry data on that support the stickiness on Teradata. Or maybe you have a pronounced on-premise renewal base next year.

史蒂夫，我想——我知道你已經對舞台遷移給了相當詳盡的解釋。但你還能指出什麼呢？我的意思是，也許——所以我只是——我只是在集思廣益。我在想，也許這是客戶對遷移擴展時間的口頭承諾，即使它不是合約性的，也許你可以共享一些對話數據，或者可能是支持 Teradata 黏性的遙測數據。或者明年您可能會有一個明顯的本地續訂基礎。

So really anything more concrete that could instill confidence that that slower cloud migrations or what you're calling stage migrations won't translate into future competitive losses.

因此，任何更具體的事情都可以讓人們相信，較慢的雲端遷移或所謂的階段遷移不會轉化為未來的競爭損失。

Yeah. Thanks for the question. Look, I'd start off by saying like we are strategically positioned in all of these accounts that we're talking about. And overall, our pipeline remains strong. And our deal opportunity hasn't really changed at the aggregate level. It's just changed shape in terms of timing of execution.

是的。謝謝你的提問。聽著，我首先要說的是，我們在我們正在談論的所有這些帳戶中都處於戰略地位。總體而言，我們的管道仍然強勁。總體而言，我們的交易機會並沒有真正改變。它只是在執行時間方面發生了變化。

And also to the point we were just talking about, we've not had any lost cloud opportunities from that large deal set. And in fact, our total ARR remains unchanged. So the total customer commitment and spend commitment with Teradata has remained unchanged. If I look specifically in the second half in terms of our execution, we've actually got better renewal and retention rates in the second half of 2024. And that's going to help power some of our total ARR growth as we move into 2025.

而且就我們剛剛談到的這一點而言，我們並沒有因為這筆大筆交易而失去任何雲端機會。事實上，我們的總 ARR 保持不變。因此，Teradata 的整體客戶承諾和支出承諾保持不變。如果我特別關注下半年的執行情況，我們實際上在 2024 年下半年獲得了更好的續訂率和保留率。

Got it. And for Claire, speaking of 2025, I respect that you're not giving any discrete guidance so far, but you're making some pretty big initiatives. I mean there's product initiatives at your recent customer conference, your go-to-market reorg is underway. Can you just paint a picture for us and help us understand when these initiatives will kick in.

知道了。對於克萊爾來說，談到 2025 年，我尊重您到目前為止沒有給出任何離散的指導，但您正在製定一些相當大的舉措。我的意思是，你們最近的客戶會議上有一些產品計劃，你們的上市重組正在進行中。您能否為我們描繪一幅圖景，幫助我們了解這些措施何時開始實施。

I mean, we're in November already, right? So as we look around the quarter to next year, how would they kick in into the numbers? And on the back of that, why should we not expect significant acceleration next year?

我的意思是，我們已經十一月了，對吧？因此，當我們環顧明年的季度時，它們將如何影響數字？在此基礎上，為什麼我們不應該期望明年會有顯著的加速呢？

Yeah. So we are committing to a total ARR growth in 2025, Howard. So we are committing to an increase an improvement compared to 2024. And the three main drivers of that that's supporting that total ARR growth in 2025 include a higher percentage of cloud. So that obviously drives more growth. So we are anticipating robust growth in 2025, and that will increase the percentage of cloud.

是的。因此，霍華德，我們致力於在 2025 年實現總 ARR 成長。因此，我們承諾與 2024 年相比有所提高。因此，這顯然會推動更多成長。因此，我們預計 2025 年將出現強勁成長，這將增加雲端的比例。

The other thing as well is we are expecting a meaningful improvement in our retention rates, for the full year in 2025. And finally, we expect on-prem expansion improvement year over year as well. So there's multiple things, including robust cloud growth that will be helping us to move back to total ARR growth next year, which obviously I would say, is a meaningful improvement compared to where we are in 2024.

另一件事情是，我們預計 2025 年全年的保留率將出現有意義的提高。因此，有許多因素，包括強勁的雲端成長，將幫助我們明年恢復總 ARR 成長，顯然我想說，與 2024 年的情況相比，這是一個有意義的進步。

Nehal Chokshi, Northland Capital Markets.

Nehal Chokshi，北國資本市場。

Help us understand what it means in terms of change in year-end total workloads on Teradata given takedown cloud ARR but no change in total ARR.

幫助我們了解在雲端 ARR 被刪除但總 ARR 沒有變化的情況下，Teradata 年終總工作負載的變化意味著什麼。

Nehal, thanks very much for the question. It's as we've been executing these customer events. Recently, I had the opportunity to talk to a lot of our customers. And what we see is that they still have the requirement to operate data at an enormous scale and do that in the most effective and efficient way.

內哈爾，非常感謝你的提問。就像我們一直在執行這些客戶活動一樣。最近，我有機會與許多客戶交談。我們看到的是，他們仍然需要大規模地操作數據，並以最有效和高效的方式做到這一點。

And Teradata is definitely the platform that can enable them to do that. When we talk to them about the most recent capability developments we've had both from and analytics perspective, our analytic capabilities and database or in platform or utilizing the analytic capabilities of the environment in which they're working. These are all ways that our customers want to utilize the Teradata technologies.

Teradata 絕對是可以幫助他們實現這一目標的平台。當我們與他們談論最新的能力發展時，我們從分析的角度，我們的分析能力和資料庫或平台或利用他們工作環境的分析能力。這些都是我們的客戶希望利用 Teradata 技術的方式。

The thing that really resonated with our customers is the fact that we meet our customers where they want to be met. So if they want to leverage the Teradata platform in the cloud, they can do that. If they want to leverage on prem, they can do that. If we want to do that in a hybrid environment, that's something that Teradata can deliver uniquely in the marketplace in terms of giving that one platform across those environments.

真正引起客戶共鳴的是，我們在客戶想要的地方與他們見面。因此，如果他們想利用雲端中的 Teradata 平台，他們就可以做到。如果他們想利用本地資源，他們就可以做到。如果我們想在混合環境中做到這一點，Teradata 可以在市場上提供獨特的服務，即在這些環境中提供一個平台。

So we still see a real demand in terms of utilizing the Teradata platform for these modern workloads and in modern environments.

因此，我們仍然看到在現代環境中利用 Teradata 平台來處理這些現代工作負載的真正需求。

So the reason why I asked that question is because I thought that on an on-premise customer converts or in their on-premise estate to cloud, there's an expansion associated with that. So if we have a slowdown in the cloud migrations, you would actually have less total ARR. Is that not correct?

所以我問這個問題的原因是因為我認為在本地客戶轉換或將他們的本地資產遷移到雲端時，會出現與之相關的擴展。因此，如果雲端遷移速度放緩，實際上總 ARR 會減少。這不正確嗎？

Yeah. So Howard, a good point, we do normally and on average, see an uplift at the point of migration. In the grand scheme of things, in terms of our total ARR range that we guided, we were able to build that in that range. So yes, there is an impact linked to the reduction of the cloud ARR, but we've been able to absorb that in our total AR previous numbers.

是的。所以霍華德，一個很好的觀點，我們通常會在平均水平上看到遷移點的提升。從宏偉的計劃來看，就我們指導的總 ARR 範圍而言，我們能夠在該範圍內建造它。所以，是的，雲 ARR 的減少會產生影響，但我們已經能夠在先前的 AR 總數據中吸收這一影響。

I see. Understood. Okay. And then of the $50 million takedown for cloud ARR for 2024. Is there a significant concentration within that $50 million to like just a couple of customers?

我懂了。明白了。好的。然後是 2024 年雲端 ARR 的 5000 萬美元的削減。 這 5000 萬美元中是否有大量集中於只喜歡幾個客戶的情況？

I mentioned in the prior questions, there is a handful of customers where the deals have moved from eight figures to seven figures. And clearly, you just need a few of those, and you've quite rapidly build up that cloud ARR number. What I would say is, and it goes to the question about is it something systemic inside the marketplace.

我在先前的問題中提到，有少數客戶的交易額從八位數增加到了七位數。顯然，您只需要其中的一些，並且您已經很快建立了雲端 ARR 數量。我想說的是，這牽涉到市場內部是否有系統性的問題。

We're still seeing our customers committed to us and committed to executing that cloud migration with us. And we'll clearly capture the expansion that we've been talking about. But we are also seeing those customers actually looking to expand our overall spend with Teradata and the combination of both on-prem and cloud in many cases.

我們仍然看到我們的客戶對我們做出承諾，並致力於與我們一起執行雲端遷移。我們將清楚地捕捉到我們一直在談論的擴展。但我們也看到，在許多情況下，這些客戶實際上希望透過 Teradata 以及本地和雲端的組合來擴大我們的整體支出。

Got it. And then if I can sneak one more in. Steve, you cited a few customer within the quarter boomeranging back to Teradata. Teradata or Snowflake, what's the frequency of this type of customer case? And any change in that frequency that you're seeing relative to a quarter or a year ago?

知道了。然後，如果我能再偷偷溜進去一次。 Teradata 或 Snowflake，這類客戶個案的頻率為何？相對於一個季度或一年前，您看到的頻率有什麼變化嗎？

Yeah. We're definitely seeing that our platform becomes more and more performing and also the capabilities in our platform from an analytics perspective enabling us to compete for those data science workloads, for example, from Databricks. So as we continue the development in our cloud-first strategy, it's enabling us to go back with a win-back message and the ability to address customer requirements and customer needs that we haven't been able to in the past. So I believe our competitive position will continue to improve over time.

是的。我們確實看到我們的平台效能變得越來越好，從分析的角度來看，我們平台的功能使我們能夠競爭這些資料科學工作負載，例如來自 Databricks 的資料科學工作負載。因此，當我們繼續發展雲端優先策略時，它使我們能夠帶著贏回的資訊回來，並有能力滿足客戶的要求和需求，這是我們過去無法做到的。因此，我相信我們的競爭地位將隨著時間的推移而不斷提高。

Wamsi Mohan, Bank of America.

萬西·莫漢，美國銀行。

Steve, can you perhaps just address the broader macro trends as well, where are you seeing maybe just in terms of expectations of spend going into '25? And large deal cadence, are you seeing any changes in the way those are progressing, not just in these cloud migrations that you've spoken about, but just in the base business as well? And I have a follow-up.

史蒂夫，您能否也談談更廣泛的宏觀趨勢，您認為 25 世紀的支出預期會在哪裡？大型交易的節奏，您是否看到這些進展方式有任何變化，不僅在您談到的這些雲端遷移中，而且在基礎業務中也有變化？我有一個後續行動。

Yes, Wamsi. I'll just reiterate that I think the fundamentals of our business remain very strong. We don't see increased competitive pressures we talked -- I talked in my prepared remarks about winning a bank in the Asia Pacific region against in a highly competitive environment. But we see the customer spend tomato Teradata remaining strong, both now and into the future.

是的，瓦姆西。我只是重申，我認為我們業務的基本面仍然非常強大。我們沒有看到我們談到的競爭壓力增加——我在準備好的發言中談到了在高度競爭的環境中贏得亞太地區一家銀行的情況。但我們看到番茄 Teradata 的客戶支出無論是現在還是未來都保持強勁。

And clearly, you know our business very well. We deal with some of the largest organizations in the world. So having that commitment has given us the confidence to say that we're going to return to total ARR growth next year.

顯然，您非常了解我們的業務。我們與世界上一些最大的組織有業務往來。因此，這項承諾讓我們有信心明年將恢復總 ARR 成長。

From a spend perspective, we are working to increase our addressable market with the capabilities that we're developing from an AI perspective. We're working with some large banks in the US where we're actually deploying generative AI use cases in the Teradata platform, using hugging face language models as an example.

從支出角度來看，我們正在努力利用我們從人工智慧角度開發的功能來擴大我們的潛在市場。我們正在與美國的一些大型銀行合作，實際上在 Teradata 平台中部署生成式 AI 用例，以擁抱臉部語言模型為例。

So we're starting to expand not only make sure that we might maximize our presence in enterprise data warehousing and data lake and data lake house but also in terms of the analytical workloads that we can operate against. So I'm confident in terms of the opportunity that we will have as we move into the future.

因此，我們開始擴展，不僅確保我們可以最大限度地擴大我們在企業資料倉儲、資料湖和資料湖中心的影響力，而且還擴大我們可以操作的分析工作負載。因此，我對我們邁向未來時將擁有的機會充滿信心。

Okay. And I guess just to follow up on your point around AI also. You said 20% of your pipeline includes active AI sales engagement. How would you think about the rate and pace of this business? Is this something that's got pretty long proof of life, proof of concept like timing? Or do you think that you have something that's that will translate much faster and this 20% pipeline will significantly grow a quarter from now?

好的。我想這也是為了跟進你關於人工智慧的觀點。您說您的管道中有 20% 包括積極的人工智慧銷售參與。您如何看待這項業務的速度和節奏？這是有相當長的生命證明、概念證明（如時間）的東西嗎？或者您是否認為您有一些可以更快轉換的東西，而這 20% 的管道將從現在起一個季度後顯著增長？

Yeah. I think as we look at the AI and GenAI, those data science projects, a number of them are failing a recent study. You said that more than 50%, 60% of AI and GenAI workloads are not moving out of proof of concept into production. One of the reasons for that is operating at scale, we are able to demonstrate for our customers is that we can actually take them from that idea and concept and then operationalize that at scale with all of their trusted data inside their ecosystem.

是的。我認為，當我們審視 AI 和 GenAI 這些數據科學項目時，其中許多項目在最近的研究中都失敗了。您說超過 50%、60% 的 AI 和 GenAI 工作負載並未從概念驗證轉向生產。原因之一是大規模運營，我們能夠向客戶證明，我們實際上可以從這個想法和概念中汲取靈感，然後利用其生態系統內的所有可信數據大規模實施該想法和概念。

And so I think as we look at our pipeline of opportunities and we're able to prove that out to our customers that we can pay them not just to lever on a proof of concept but actually help them deploy these solutions at scale in the production environment, that's really going to add to the tailwind for us as we move into the future.

因此，我認為，當我們審視我們的機會管道時，我們能夠向客戶證明，我們可以向他們支付費用，不僅是為了利用概念驗證，而且實際上可以幫助他們在生產中大規模部署這些解決方案環境，這確實會為我們邁向未來增添助力。

Derrick Wood, TD Cowen.

德里克·伍德，TD·考恩。

Great. My first question, Steve, there's a lot of talk about growing adoption of iceberg in the broader data analytics ecosystem. What are you guys seeing from your customers? And do you think this changing cloud migration behavior has anything to do with companies contemplating data storage movements to iceberg?

偉大的。我的第一個問題，史蒂夫，有很多關於在更廣泛的數據分析生態系統中越來越多地採用冰山的討論。你們從顧客身上看到了什麼？您認為這種不斷變化的雲端遷移行為與考慮將資料儲存轉移到冰山的公司有什麼關係嗎？

Yeah. I think we talk to nearly every single one of our customers about how they plan to leverage an open table format on native object store. And we see that as a great opportunity for us. Our cloud lake platform supports open-table formats. And we don't lock our customers into one particular open table format.

是的。我認為我們幾乎與每位客戶討論了他們計劃如何在本機物件儲存上利用開放式表格式。我們認為這對我們來說是一個很好的機會。我們的雲端湖平台支援開放表格式。我們不會將客戶鎖定在特定的開放表格式中。

We have a strategy that we want to support both iceberg and Delta Lake, as an open-table format. If we look at that from a Teradata perspective, we see that again as looking to increase our TAM as we look at the amount of data that is in native object stores and putting structure around that data in native object stores, that's something that the Teradata ecosystem only touches in a light way now.

我們有一個策略，希望以開放表的形式支援 Iceberg 和 Delta Lake。如果我們從Teradata 的角度來看，我們會再次看到，當我們查看本機物件儲存中的資料量並在本機物件儲存中圍繞該資料建立結構時，我們會再次看到增加我們的TAM，這就是Teradata 的目標生態系現在只是以一種輕微的方式接觸。

As we look to the future, we look at that as an opportunity to, again, expand our addressable marketplace and the opportunities that we have in terms of unstructured data is often an order of magnitude larger than the structured data inside an organization.

當我們展望未來時，我們再次將其視為擴大我們的潛在市場的機會，而我們在非結構化資料方面擁有的機會通常比組織內部的結構化資料大一個數量級。

Patrick Walravens, Citizens JMP.

Patrick Walravens，公民 JMP。

So Steve, I think you mentioned in your remarks that Hillary is going to be moving on and you're looking for a new Chief Product Officer. What are sort of the top characteristics that you're looking for in that individual?

史蒂夫，我想你在演講中提到希拉蕊將繼續前進，而你正在尋找一位新的首席產品長。您在該人身上尋找的主要特徵是什麼？

Pat, thanks for your question. Just to be clear, Hillary is going to move on, but we are taking this opportunity to actually leverage the bench strength that we have inside the organization from both a product management, product engineering, and a Chief Technology Officer perspective. So I announced that Louis Landry is going to be appointed as our Chief Technology Officer.

帕特，謝謝你的問題。需要明確的是，希拉蕊將繼續前進，但我們將藉此機會從產品管理、產品工程和技術長的角度實際利用我們組織內部的後備力量。所以我宣布路易斯·蘭德里將被任命為我們的首席技術長。

As we move into the future, I'm nicely elevating the product management focus we have and take the company and the product engineering focus that we have inside the company to have those rules report directly to me.

當我們走向未來時，我很好地提升了我們的產品管理重點，並將公司和公司內部的產品工程重點放在讓這些規則直接向我報告。

Raimo Lenschow, Barclays.

雷莫‧倫肖 (Raimo Lenshow)，巴克萊銀行。

Perfect. Two quick questions. Claire, on the cash flow side, you outperformed this quarter, but less the full year unchanged anything around timing of things that came in, in Q3, et cetera, that you want to point out? And then I have one follow-up for Steve.

完美的。兩個簡單的問題。克萊爾，在現金流方面，您本季的表現優於其他公司，但全年沒有任何變化，您想指出的是，在第三季度等方面發生的事情的時間安排？然後我有一個關於史蒂夫的後續行動。

Yes. To your point, Raimo, we were pleased with the performance of free cash flow. We anticipate there to be a slight linearity impact with regards to our working capital. So slightly overperformed on DSO and BPO compared to our previous expectations.

是的。 Raimo，就您的觀點而言，我們對自由現金流的表現感到滿意。我們預計對我們的營運資金會有輕微的線性影響。因此，與我們先前的預期相比，DSO 和 BPO 的表現略有超出。

And so that would just be a linearity impact between Q3 and Q4. But we feel good about the meeting being in the range of our free cash flow guide for the full year, and it will be a similar increase in cash flow that we saw this time last year.

因此，這只是第三季和第四季之間的線性影響。但我們對這次會議處於我們全年自由現金流指南的範圍內感到滿意，現金流將與去年這個時候看到類似的成長。

Austin Dietz, UBS.

奧斯汀‧迪茨，瑞銀。

Steve, Claire, I know we've spent a lot of time on migrations and they're more stage nature on the call so far. But the cloud net expansion rate this quarter, it seemed to slow several percentage points. And I believe it's a trailing 12-month metric toward that the in-quarter piece would have slowed by more than that.

史蒂夫、克萊爾，我知道我們在遷移上花了很多時間，到目前為止，他們在電話會議上更具舞台性。但本季雲淨擴張速度似乎放緩了幾個百分點。我相信這是一個追蹤 12 個月的指標，季度內的成長速度會比這個指標慢得多。

So do you mind just unpacking what you saw from a net expansion perspective this quarter? And then how should we think about that cloud net expansion rate over the near to medium term?

那麼您介意從本季的淨擴張角度來分析一下您所看到的情況嗎？那我們該如何看待近中期的雲淨擴張速度呢？

Yeah. Thank you, Austin, for the question. So as you mentioned, our net expansion rate was 120% in Q3 and is a trailing 12-month metric. So that's a deceleration. And that was mainly driven by our health care vertical and also some of our European business.

是的。謝謝奧斯汀提出的問題。正如您所提到的，我們第三季的淨擴張率為 120%，並且是過去 12 個月的指標。所以這是一個減速。這主要是由我們的醫療保健垂直領域以及我們的一些歐洲業務所推動的。

We do expect further deceleration into Q4 given the mix of migrations versus expansions. And as we look forward, we will obviously continue to monitor with the stage migrations that we see, what the impact will be in 2025. So as a reminder, expansion at the point of conversion for the first 12 months is not included in our net expansion rate. So we're also impacted by that as we update the migration timing of our customers' migrations.

考慮到遷移與擴張的混合，我們確實預計第四季會進一步減速。展望未來，我們顯然將繼續監控我們所看到的階段遷移，以及 2025 年的影響。 因此提醒一下，前 12 個月轉換時的擴張不包括在我們的淨值中擴張率。因此，當我們更新客戶遷移的遷移時間時，我們也會受到影響。

So there are no further questions at this time. I will now turn the call back over to Steve MacMillan for his final remarks.

所以目前沒有其他問題。現在我將把電話轉回給史蒂夫·麥克米倫，聽他最後的發言。

Thank you, and thanks, everybody, for the questions. The fundamentals of our business are strong, and we firmly believe in Teradata's differentiated technology and future growth. We all remain focused on improving execution and accelerating that growth, and we remain committed to protecting and growing our free cash flow and returning that capital to our shareholders. Thank you, all.

謝謝大家，也謝謝大家提出的問題。我們的業務基礎十分強勁，我們堅信 Teradata 的差異化技術和未來成長。我們仍然專注於提高執行力和加速成長，我們仍然致力於保護和增加我們的自由現金流並將資本返還給我們的股東。謝謝大家。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連線。