Teradata Corporation · NYSE:TDC

Teradata — Q2 2025 Earnings Presentation

39 slides from Teradata's earnings presentation, August 2025

1. Slide 1: Q2'25 Earnings Results

   August 2025 Q2’25 Earnings Results Teradata Investor Relations © 2025 Teradata. All rights reserved.

2. Slide 2: Forward-looking statements and Non-GAAP Financial Measures

   Forward-looking statements Non-GAAP Financial Measures This release contains forward-looking statements within business transformation program or restructuring, sales This presentation and the accompanying discussion the meaning of Section 21E of the Securities and and operational execution initiati

3. Slide 3: Teradata – at a glance

   Teradata – at a glance Corporate purpose What we do How we do it We believe people thrive when We are the hybrid cloud platform We deliver harmonized data, empowered with trusted for Trusted AI. We drive value and Trusted AI, and faster innovation information. innovation at scale, making it faster f

4. Slide 4: Q2'25 Financials

   Q2’25 Financials © 2025 Teradata. All rights reserved. 4

5. Slide 5: Teradata – by the numbers Q2'25

   Teradata – by the numbers Q2’25 Public Cloud ARR Total ARR Recurring Revenue Total Revenue $634M $1.489B $354M $408M + 17% YoY + 2% YoY - 4% YoY - 6% YoY + 15% YoY in CC + 0% YoY in CC - 4% YoY in CC - 7% YoY in CC GAAP Diluted EPS Non-GAAP Diluted EPS Cash Flow from Operations Free Cash Flow $0.09

6. Slide 6: ARR by product

   ARR by product 1,524 1,570 1,480 1,482 1,474 1,489 1,465 1,442 173 198 139 121 119 99 99 95 $1.489B 872 869 816 802 793 766 741 756 + 2% YoY + 0% YoY in CC 570 609 606 634 528 525 542 454 43% Cloud ARR as a % of Total ARR Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Cloud Subscription Maint & SW

7. Slide 7: Cloud ARR & TTM Net Expansion Rate

   Cloud ARR & TTM Net Expansion Rate 635 625 615 605 595 $634M 585 575 565 555 545 535 525 515 505 + 17% YoY 495 485 475 + 15% YoY in CC 465 455 445 435 425 415 112% Cloud Net 405 395 Expansion Rate 385 375 365 355 345 335 454 528 525 542 570 609 606 634 325 315 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'

8. Slide 8: Revenue by type

   Revenue by type $408M 457 465 438 436 440 409 418 408 73 69 71 8 63 61 50 12 5 7 55 51 7 3 10 3 - 6% YoY - 7% CC 360 372 388 368 372 351 358 354 87% Recurring Revenue as a % of Total Revenue Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Recurring Perpetual Consulting Q3’23 Q4’23 Q1’24 Q2’24 Q3’24

9. Slide 9: Gross Margin

   $300 75% Gross Margin ($M) Non-GAAP gross margin 72% 72% 72% $275 71% 71% 70% 70% $250 Recurring 70% 68% $225 $200 65% Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Total Gross Margin % of Revenue $300 $10 80% Gross Margin ($M) 70% 33% 29% 60% 10% 40% $5 65% Perpetual 0% 0% 0% 0% 20% 0% 62% 62% 62

10. Slide 10: Non-GAAP operating expenses

    Non-GAAP operating expenses SG&A R&D 150 40% 70 20% 68 66 64 62 125 30% 29% 29% 29% 60 30% 58 16% 16% 26% 26% 56 25% 54 15% 24% 52 100 50 14% 14% 14% 14% 14% 48 46 20% 44 42 75 40 38 36 133 131 134 114 109 117 101 107 34 68 63 66 61 63 60 60 64 32 50 10% 30 10% Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1

11. Slide 11: Non-GAAP operating margin & earnings per share

    Non-GAAP operating margin & earnings per share Non-GAAP Operating Margin Earnings per Share $125 23% 25% 22% 22% $2.50 2.35 19% 19% 2.19 $100 18% 20% 16% $2.00 14% $75 15% $1.50 1.13 $50 10% $1.00 0.63 0.64 $25 5% 0.38 0.47 $0.50 0.09 $0 0% $0.00 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 LTM24

12. Slide 12: Free cash flow & capital allocation

    Free cash flow & capital allocation 287 284 Q2'25 Capital Allocation 264 263 Stock repurchase $28M Approximately 1.3 million shares 43 39 43 39 Return of Q2'25 FCF = 72% LTM24 LTM25 Q2'24 Q2'25 Cash from Operations Free Cash Flow Notes: Amounts in U.S. Dollars in Millions. Free cash flow (FCF) is a

13. Slide 13: Select cash and debt balances

    Select cash and debt balances Net Cash (Debt) $600 $ Millions Q2’24 Q3’24 Q4’24 Q1'25 Q2'25 $400 Cash and cash $ 301 $ 348 $ 420 $ 368 $ 369 equivalents $200 $ Millions Total debt $ (492) $ (486) $ (480) $ (474) $ (468) $- Finance lease $ (110) $ (100) $ (87) $ (105) $ (106) $(200) liabilities $(400

14. Slide 14: 2025 Financial Outlook

    2025 Financial Outlook © 2025 Teradata. All rights reserved. 14

15. Slide 15: FY25 financial outlook

    FY25 financial outlook Public cloud ARR Recurring revenue Non-GAAP diluted EPS growth of 14% to 18% YoY in CC in the range of -3% to -5% YoY in CC in the range of $2.17 to $2.25 Total ARR Total revenue Free cash flow growth of flat to 2% YoY in CC in the range of -5% to -7% YoY in CC of $250 to $280

16. Slide 16: Q3'25 financial outlook

    Q3’25 financial outlook Recurring revenue Total revenue Non-GAAP diluted EPS in the range of -4% to -6% YoY in CC in the range of -7% to -9% YoY in CC in the range of $0.51 to $0.55 Notes: Non-GAAP diluted earnings per share (EPS) is a non-GAAP measures. Please see the Appendix for reconciliation of

17. Slide 17: FY25 key modeling assumptions

    FY25 key modeling assumptions Non-GAAP Tax Rate WASO 23.1% 96.5 million Return of FCF Other Expense Target at least 50% Approximately $45 million © 2025 Teradata. All rights reserved. 17

18. Slide 18: Industry and ESG Recognition

    Industry and ESG Recognition © 2025 Teradata. All rights reserved. 18

19. Slide 19: Industry recognition

    Industry recognition Leader in The Forrester Teradata recognized Wave : Data for our vision and Management for execution in the Analytics Platforms, 2024 Gartner® Magic Q2 2025 Quadrant for Cloud Database Strong Performer in Management Systems The Forrester Wave: Data Lakehouse Q2 2024 550+ ratings

20. Slide 20: Teradata recognized in Gartner Magic Quadrant for Cloud Database Management Systems

    Figure 1. Magic Quadrant to Cloud Database Management Systems Teradata recognized for our Ability to Execute and Completeness of Vision in the Gartner® Magic Quadrant for Cloud Database Management Systems We offer a bold vision for how trusted AI will impact business and transform enterprises amid t

21. Slide 21: Strong performance across all evaluated Use Cases in Gartner Critical Capabilities

    Strong performance across all evaluated Use Cases in Gartner® Critical Capabilities for Cloud Database Management Systems for Analytical Use Cases • Tied for second in the Enterprise Data Warehouse Use Case • Placed among the highest ranked five vendors across every evaluated Use Case—highlighting t

22. Slide 22: Teradata is a Customers' Choice

    Teradata is a Customers’ Choice Teradata receives a 2024 Customers’ Choice for Cloud Database Management Systems in the Gartner® Peer Insights ‘Voice of the Customer’ report! Recognition is based on reviews and ratings from verified end- users, reflecting genuine satisfaction and positive experience

23. Slide 23: Teradata named a Leader in The Forrester Wave Data Management for Analytics Platforms

    The Forrester Wave Data Management for Analytics Platforms, Q2 2025 Teradata named a Leader in the The Forrester Wave Data Management for Analytics Platforms, Q2 2025 Teradata earned the highest scores possible (5/5) in the criteria of Vision, In-Platform Analytics, Data Transformation, Data Modelin

24. Slide 24: Teradata is strongly committed to ESG

    Teradata is strongly committed to ESG Accolades Recognition Affiliations © 2025 Teradata. All rights reserved. 24

25. Slide 25: Appendix

    Appendix © 2025 Teradata. All rights reserved. 25

26. Slide 26: GAAP to Non-GAAP Reconciliations and Additional Information

    GAAP to Non-GAAP Reconciliations and Additional Information Use of Non-GAAP Measures Teradata reports its results in accordance with GAAP. However, as described below, the Company believes that certain non- GAAP measures such as free cash flow, non-GAAP gross profit, non-GAAP operating expenses, non

27. Slide 27: Three months ended June 30, 2025 and 2024

    GAAP to Non-GAAP Reconciliation Three months ended June 30, 2025 and 2024 Amounts in U.S. Dollars in Millions, except per share amounts. Amounts are unaudited. NOTES: 1. While Teradata reports its results using generally accepted accounting principles in the U.S. (GAAP), certain non-GAAP financial m

28. Slide 28: Six months ended June 30, 2025 and 2024

    GAAP to Non-GAAP Reconciliation Six months ended June 30, 2025 and 2024 Amounts in U.S. Dollars in Millions, except per share amounts. Amounts are unaudited. NOTES: 1. While Teradata reports its results using generally accepted accounting principles in the U.S. (GAAP), certain non-GAAP financial mea

29. Slide 29: Three months ended March 31, 2025 and 2024

    GAAP to Non-GAAP Reconciliation Three months ended March 31, 2025 and 2024 Amounts in U.S. Dollars in Millions, except per share amounts. Amounts are unaudited. NOTES: 1. While Teradata reports its results using generally accepted accounting principles in the U.S. (GAAP), certain non-GAAP financial

30. Slide 30: Three months ended December 31, 2024 and 2023

    GAAP to Non-GAAP Reconciliation Three months ended December 31, 2024 and 2023 Amounts in U.S. Dollars in Millions, except per share amounts. Amounts are unaudited. NOTES: 1. While Teradata reports its results using generally accepted accounting principles in the U.S. (GAAP), certain non-GAAP financi

31. Slide 31: Three months ended September 30, 2024 and 2023

    GAAP to Non-GAAP Reconciliation Three months ended September 30, 2024 and 2023 Amounts in U.S. Dollars in Millions, except per share amounts. Amounts are unaudited. NOTES: 1. While Teradata reports its results using generally accepted accounting principles in the U.S. (GAAP), certain non-GAAP financ

32. Slide 32: Three months ended June 30, 2024 and 2023

    GAAP to Non-GAAP Reconciliation Three months ended June 30, 2024 and 2023 Amounts in U.S. Dollars in Millions, except per share amounts. Amounts are unaudited. NOTES: 1. While Teradata reports its results using generally accepted accounting principles in the U.S. (GAAP), certain non-GAAP financial m

33. Slide 33: Three months ended March 31, 2024 and 2023

    GAAP to Non-GAAP Reconciliation Three months ended March 31, 2024 and 2023 Amounts in U.S. Dollars in Millions, except per share amounts. Amounts are unaudited. NOTES: 1. While Teradata reports its results using generally accepted accounting principles in the U.S. (GAAP), certain non-GAAP financial

34. Slide 34: Twelve months ended December 31, 2024 and 2023

    GAAP to Non-GAAP Reconciliation Twelve months ended December 31, 2024 and 2023 Amounts in U.S. Dollars in Millions, except per share amounts. Amounts are unaudited. NOTES: 1. While Teradata reports its results using generally accepted accounting principles in the U.S. (GAAP), certain non-GAAP financ

35. Slide 35: Last twelve months ended June 30, 2025 and 2024

    GAAP to Non-GAAP Reconciliation 2024 2025 June 30, 2025 Q3 Q4 Q1 Q2 LTM Net cash provided by operating activities (GAAP) 77 156 8 43 $ 284 Last twelve months Less capital expenditures for: Expenditures for property and equipment Additions to capitalized softw are (8) - (7) (1) (1) - (4) - (20) (1) e

36. Slide 36: Earnings per share

    GAAP to Non-GAAP Reconciliation Earnings per share NOTES: i. Represents the income tax effect of the pre-tax adjustments to reconcile GAAP to Non-GAAP income based on the applicable jurisdictional statutory tax rate of the underlying item. Including the income tax effect assists investors in underst

37. Slide 37: Free cash flow reconciliation – June 30, 2025 and 2024

    GAAP to Non-GAAP Reconciliation Free cash flow reconciliation – June 30, 2025 and 2024 NOTES: The Company believes that free cash flow is a useful non-GAAP measure for investors. Free cash flow does not have a uniform definition under GAAP in the United States and therefore, Teradata's definition ma

38. Slide 38: Thank you

    Thank you © 2025 Teradata. All rights reserved.

39. Slide 39: Teradata

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