Teradata Corporation's (TDC) shares plunged 15.51% in after-hours trading on Tuesday following the release of its fourth-quarter and full-year 2024 financial results. The data analytics company reported disappointing numbers and provided a muted outlook for 2025, highlighting the challenges it faces amidst a challenging macroeconomic environment.

In Q4 2024, Teradata's total revenue declined 11% year-over-year to $409 million, missing analysts' expectations. The decrease was driven by a 25% drop in consulting services revenue, partially offset by an 8% decline in product sales revenue. For the full year 2024, total revenue fell 5% to $1.75 billion.

Despite the top-line weakness, Teradata managed to improve its profitability. Non-GAAP diluted earnings per share (EPS) for Q4 2024 came in at $0.53, down 5% from the prior year, but better than analysts' projections. For the full year 2024, non-GAAP diluted EPS increased 17% to $2.42.

Teradata cited the challenging macroeconomic conditions and customers' cautious spending as reasons behind the revenue decline. However, the company's focus on cloud and subscription-based offerings, as well as cost-cutting measures, helped bolster its profitability.

Looking ahead, Teradata provided a muted outlook for 2025, forecasting total revenue to decline between 4% and 6% in constant currency terms. The company expects non-GAAP diluted EPS to be in the range of $2.15 to $2.25 for the full year 2025, reflecting a potential decline from 2024.