Teradata Corp.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of Califorinia on behalf of those who acquired Teradata Corporation (“Teradata” or the “Company”) (NYSE: TDC) securities during the period of February 13, 2023 and February 12, 2024, inclusive (“the Class Period”). Investors have until August 13, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On February 12, 2024, Teradata released its fourth quarter and full year 2023 financial results, revealing cloud and total annual recurring revenue falling short of the Company’s original 2023 outlook due to “timing issues” which led “a handful of large deals” that got pushed back into 2024. Teradata also indicated that it was seeing significant declines for its on-premise solutions. Additionally, earnings per share estimates were projected to be between $2.15 and $2.31 per share, coming in below analysts’ estimates of $2.37. On this news, the price of Teradata shares declined by $10.57 per share, or approximately 21.7%, from $48.79 per share on February 12, 2024 to close at $38.22 on February 13, 2024.
The lawsuits alleges that the Company made false and/or misleading statements and/or failed to disclose that: (i) 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; (ii) Teradata thus overstated its ability to close customer transactions within their intended timeframes under its expanded business model; (iii) Teradata failed to timely close several customer transactions that it had factored into its outlook for 2023 ARR growth; (iv) as a result, the Company was unlikely to meet its full year 2023 Total and Public Cloud ARR expectations; and (v) as a result, the Company's public statements were materially false and misleading at all relevant times.
On February 12, 2024, Teradata released its fourth quarter and full year 2023 financial results, revealing cloud and total annual recurring revenue falling short of the Company’s original 2023 outlook due to “timing issues” which led “a handful of large deals” that got pushed back into 2024. Teradata also indicated that it was seeing significant declines for its on-premise solutions. Additionally, earnings per share estimates were projected to be between $2.15 and $2.31 per share, coming in below analysts’ estimates of $2.37. On this news, the price of Teradata shares declined by $10.57 per share, or approximately 21.7%, from $48.79 per share on February 12, 2024 to close at $38.22 on February 13, 2024.
The lawsuits alleges that the Company made false and/or misleading statements and/or failed to disclose that: (i) 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; (ii) Teradata thus overstated its ability to close customer transactions within their intended timeframes under its expanded business model; (iii) Teradata failed to timely close several customer transactions that it had factored into its outlook for 2023 ARR growth; (iv) as a result, the Company was unlikely to meet its full year 2023 Total and Public Cloud ARR expectations; and (v) as a result, the Company's public statements were materially false and misleading at all relevant times.