Teradata Corporation's (TDC) stock plummeted 10.49% in pre-market trading on Wednesday following the release of its fourth-quarter 2024 financial results. The data analytics company reported a 10.5% year-over-year decline in revenue to $409 million, missing analysts' expectations.

The revenue decline was driven by a 25% drop in consulting services revenue and an 8% decline in product sales revenue. Despite the top-line weakness, Teradata's non-GAAP diluted earnings per share (EPS) of $0.53 for Q4 2024 beat analysts' projections, but its guidance for 2025 was disappointing, forecasting a further revenue decline of 4% to 6% and non-GAAP diluted EPS of $2.15 to $2.25, missing analyst estimates.

Additionally, Teradata announced that Chief Financial Officer Claire Bramley will be leaving the company on March 31, adding to investors' concerns. The company cited the challenging macroeconomic conditions and customers' cautious spending as reasons behind the revenue decline, but its focus on cloud and subscription-based offerings, as well as cost-cutting measures, helped bolster its profitability.