Teradata betting big on the cloud

STEVE McMillan, the chief executive of Teradata, is facing a test of conviction for his “cloud first” strategy. Shares of the New York-listed data analytics software vendor have declined by close to 50 per cent over the past year, as an attempt to pivot the company’s focus begins to weigh on revenue and earnings.

The company’s latest quarterly revenue fell 12 per cent on-year to US$430 million, and it reported a loss of US$0.04 per share, versus earnings per share of US$0.39 a year ago.

Shares of Teradata closed at US$29.46 last Friday (Oct 14), giving it a market capitalisation of US$3 billion. It now trades at 40 times its historical earnings.