SAN DIEGO - Teradata Corp. (NYSE: TDC), a cloud analytics and data platform provider, has announced the availability of its VantageCloud Lake on Google (NASDAQ:GOOGL) Cloud, which incorporates advanced artificial intelligence (AI) capabilities through integrations with Google Cloud's AI technologies.
This new offering aims to streamline AI projects for enterprises by providing a trusted platform that combines Teradata's ClearScape Analytics with Google Cloud's Vertex (NASDAQ:VRTX) AI platform and Gemini models.
The collaboration between Teradata and Google Cloud is designed to address common challenges that organizations face with AI, such as lengthy production times and maintaining control over intellectual property.
By offering a joint solution that includes VantageCloud Lake and Google Cloud's AI services, Teradata and Google Cloud intend to help businesses overcome these barriers and leverage AI for significant business opportunities and value creation.
Hillary Ashton, Chief Product Officer at Teradata, emphasized the shared commitment of both companies to assist organizations in the responsible execution of their AI-driven business strategies. The partnership is expected to enable customers to address complex challenges and capitalize on large opportunities through the use of trusted AI.
The Teradata VantageCloud Lake on Google Cloud is engineered to support a range of AI applications, from scaling predictive AI initiatives to powering new generative AI use cases. For instance, the Teradata Customer Complaint Analyzer utilizes Gemini models to provide a more comprehensive analysis of customer complaints across text and audio formats, which can enhance customer insights and drive business improvements.
This offering underscores Teradata's expansion of its cloud-native VantageCloud Lake solution to Google Cloud, providing organizations with a unified and cost-effective data platform to accelerate AI initiatives.
The integration of ClearScape Analytics with the Vertex AI platform is now generally available, while enhancements involving Gemini models are scheduled for a private preview in the first half of 2025.
This development is based on a press release statement from Teradata, a company that offers cloud analytics and data platforms aimed at empowering better decision-making and driving impactful business outcomes.
In other recent news, Teradata Corporation (NYSE:TDC) has announced the private preview of its AI/ML workload, Teradata AI Unlimited, now integrated with Microsoft (NASDAQ:MSFT) Fabric. This collaboration aims to provide data scientists and developers with easy access to AI tools and capabilities within the Microsoft ecosystem.
Teradata AI Unlimited is designed to offer a pay-as-you-go model within Microsoft Fabric, including ClearScape Analytics, which allows users to explore and create AI models and visualizations with ease.
In other recent developments, TD Cowen maintained a Hold rating on Teradata shares, while reducing the price target from $46.00 to $40.00. This adjustment follows Teradata's first-quarter results, which revealed a 1% contraction in annual recurring revenue (ARR) on a constant currency basis, falling short of the 0% estimate. The company's cloud segment grew by 36%, also below the anticipated 40%.
BofA Securities lowered its rating for Teradata from Neutral to Underperform, reducing the price target for Teradata's shares to $39.00 from the previous target of $48.00. The downgrade reflects concerns over the company's near-term execution and ongoing negative estimate revisions.
RBC Capital adjusted its outlook on Teradata Corporation, reducing its price target to $44.00, down from the previous $48.00, while maintaining its Sector Perform rating on the stock. Finally, Evercore ISI revised its price target for Teradata Corporation, lowering it to $46.00 from the previous $58.00, while maintaining its Outperform rating on the stock.
InvestingPro Insights
As Teradata Corp. (NYSE: TDC) forges ahead with its latest AI-driven offerings in collaboration with Google Cloud, the company's financial metrics and management activities provide a backdrop to its strategic moves.
Teradata's market capitalization stands at $3.35 billion, reflecting its position in the market. The company's P/E ratio, a measure of its current share price relative to its per-share earnings, is notably high at 80.59, signaling investor expectations for future growth, which aligns with the company's innovation trajectory.
InvestingPro Tips reveal that Teradata's management has been actively engaged in share buybacks, a sign of confidence in the company's future prospects. Moreover, Teradata is expected to be profitable this year, which could further solidify its financial standing as it expands its cloud-native VantageCloud Lake solution. With 8 analysts having revised their earnings downwards for the upcoming period, it's important for potential investors to keep an eye on these developments.
For those looking to delve deeper into Teradata's financials and future outlook, InvestingPro offers additional insights, with a total of 13 InvestingPro Tips available at https://www.investing.com/pro/TDC. To access these insights, users can apply the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
The company's recent revenue growth of 2.65% over the last twelve months, as of Q1 2024, indicates a steady upward trajectory, albeit with a slight quarterly dip. This growth, coupled with a gross profit margin of 60.21%, suggests that Teradata is maintaining its profitability while investing in innovative AI technologies. As Teradata continues to navigate the competitive landscape of cloud analytics and AI, these financial indicators will be crucial for investors monitoring the company's performance.
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