Teradata’s International Business Looks Strong



International market performance in fiscal 4Q17

Teradata (TDC) has maintained double-digit growth in its International Data and Analytics segment revenues, buoyed by strong growth in Europe, the Middle East, and Africa as well as the lucrative Asia-Pacific region.

The segment, which contributes around 45.0% of the company’s total revenues, gained from small ticket size revenues across the international market compared to its overheated domestic market.

In the graph above, we can see the revenue growth for Teradata’s International Data and Analytics division in the last five quarters. During the period, it grew at a CAGR (compound annual growth rate) of 3.3%.

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Teradata posted $261.0 million in revenues for fiscal 4Q17 and gained 14.0% YoY (year-over-year). For fiscal 2017, its revenues grew 4.6% on an annualized basis to $961.0 million. The gross profit for the segment in the reported quarter came in at $130.0 million, up 25.0% YoY. The segmental gross margin was 49.8% in 4Q17 versus 45.4% in 4Q16.

What’s driving the international market?

Strong global IT spending trends, driven by improving economic scenarios and shifting of the database to the cloud, has led to solid revenue growth in the international market. An overcrowded domestic market, leading to fierce competition, has fueled revenue expansion in Teradata’s International Data and Analytics division.

The growing need for data analytics in the modern world is significant. Teradata offers complete data solutions to a variety of industries, which include retail and transportation. It supports big industry players such as eBay (EBAY), Comcast, Coca-Cola (COKE), and InterContinental Hotels Group (IHG).


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