Q2 Earnings Highlights: Teradata (NYSE:TDC) Vs The Rest Of The Data Infrastructure Stocks

Wrapping up Q2 earnings, we look at the numbers and key takeaways for the data infrastructure stocks, including Teradata (NYSE:TDC) and its peers.

Generating insights from system level data is an increasing priority for most businesses, but to do so requires connecting and analyzing piles of data stored and siloed in separate databases. This is the demand driver for cloud based data infrastructure software providers, who can more readily integrate, distribute and process information vs. legacy on-premise software providers.

The 4 data infrastructure stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 1% below.

Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data, and data infrastructure stocks have had a rough stretch. On average, share prices are down 16.6% since the latest earnings results.

Weakest Q2: Teradata (NYSE:TDC)

Part of point-of-sale and ATM company NCR from 1991 to 2007, Teradata (NYSE:TDC) offers a software-as-service platform that helps organizations manage their data across multiple storages and analyze it.

Teradata reported revenues of $436 million, down 5.6% year on year. This print fell short of analysts’ expectations by 2.5%. Overall, it was a weaker quarter for the company with a miss of analysts’ ARR (annual recurring revenue) estimates.

“Teradata delivered another quarter of strong growth in Cloud ARR, increasing 32% in constant currency, and we maintained our robust 123% net expansion rate in the cloud,” said Steve McMillan, President and Chief Executive Officer, Teradata.

Teradata delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Unsurprisingly, the stock is down 6% since reporting and currently trades at $27.40.

Read our full report on Teradata here, it’s free.

Best Q2: Confluent (NASDAQ:CFLT)

Started in 2014 by the team of engineers at LinkedIn who originally built it as an internal tool, Confluent (NASDAQ:CFLT) provides infrastructure software for organizations that makes it easy and fast to collect and move large amounts of data between different systems.

Confluent reported revenues of $235 million, up 24.1% year on year, outperforming analysts’ expectations by 2.1%. It was a solid quarter for the company with accelerating growth in large customers and an improvement in its gross margin.

Confluent scored the biggest analyst estimates beat and fastest revenue growth among its peers. The company added 46 enterprise customers paying more than $100,000 annually to reach a total of 1,306. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 20.5% since reporting. It currently trades at $19.90.

Is now the time to buy Confluent? Access our full analysis of the earnings results here, it’s free.

C3.ai (NYSE:AI)

Founded in 2009 by enterprise software veteran Tom Seibel, C3.ai (NYSE:AI) provides software that makes it easy for organizations to add artificial intelligence technology to their applications.

C3.ai reported revenues of $87.21 million, up 20.5% year on year, in line with analysts’ expectations. It was a decent quarter for the company with an impressive beat of analysts’ billings estimates.

The stock is down 7.6% since the results and currently trades at $21.26.

Read our full analysis of C3.ai’s results here.

Elastic (NYSE:ESTC)

Started by Shay Banon as a search engine for his wife's growing list of recipes at Le Cordon Bleu cooking school in Paris, Elastic (NYSE:ESTC) helps companies integrate search into their products and monitor their cloud infrastructure.

Elastic reported revenues of $347.4 million, up 18.3% year on year, in line with analysts’ expectations. Overall, it was a weak quarter for the company with underwhelming revenue guidance for the next quarter and a miss of analysts’ billings estimates.

Elastic had the weakest full-year guidance update among its peers. The company added 40 enterprise customers paying more than $100,000 annually to reach a total of 1,370. The stock is down 32.2% since reporting and currently trades at $70.25.

Read our full, actionable report on Elastic here, it’s free.

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