Teradata (TDC) risk factors, FY2024 10-K

Other

1. 01In addition, past financial performance may not be a reliable indicator of future performance, and historical trends should not be used to anticipate results or trends in future periods

RISKS RELATED TO OUR BUSINESS AND OPERATIONS

1. 02these investments for several years, if at all. R&D expenses represent a significant portion of our discretionary fixed costs
2. 03We may experience variability in our operating results based on the purchasing behavior of our customers
3. 04As we develop new offerings with enhanced capacity, delivery and performance capabilities, the increased difficulty and complexity associated with producing these offerings may increase the likelihood of reliability, quality, operability, and/or security issues
4. 05A cybersecurity incident, disruption, or failure of our information systems or those of our third-party providers could adversely impact our reputation, business, and financial results
5. 06While we maintain insurance coverage for certain liabilities related to cyber-attacks and/or data breaches, such coverage may not adequately cover all costs, expenses, liability and damages that we or our customers may incur as a result of such incidents
6. 07If our existing customers fail to renew, or cancel, their subscription license arrangements or support agreements, or if customers do not renew on terms favorable to us, our business could be adversely affected
7. 08Our future results depend in part on our relationships with strategic partners, key suppliers, and other third parties
8. 09Demand for the offerings and services we sell could decline if we fail to maintain positive brand perception and recognition
9. 10Increases in the cost of components used in our product, and/or increases in our other costs of doing business, have, and could continue to, adversely affect our profit margins
10. 11Challenges with the design and implementation of our new enterprise resource planning ("ERP") system could adversely impact our business and operations
11. 12Any disruption, including as a result of natural disasters or climate change, at or near any of our facilities or other operations or those of our customers, vendors, data warehouses, distribution channels, and public cloud service providers could adversely affect our business
12. 13Failure to successfully complete reorganization activities in connection with our transformation activities or otherwise could negatively affect our operations
13. 14Our business is affected by the global economies in which we operate and the economic climate of the industries we serve
14. 15Generating substantial revenues from our international operations pose several risks
15. 16Any of these events, among others, could materially and adversely affect our financial condition and operating results
16. 17Inadequate internal control over financial reporting and accounting practices could lead to errors, which could adversely impact our ability to assure timely and accurate financial reporting

RISKS RELATED TO OUR INDUSTRY

1. 18Our cloud and service offerings are designed to offer AI/ML capabilities, which exposes us to an emerging and uncertain regulatory environment and rapidly changing technology where any inability to comply with any such regulations may result in reputational harm, liability and disruption to our business operations
2. 19The IT industry is intensely competitive and evolving, and competitive pressures could adversely affect our pricing practices or demand for our offerings and services
3. 20Current and evolving privacy laws and regulations, cross-border data transfer restrictions and other aspects of data privacy may impact the use and adoption of our solutions and services and adversely affect our business
4. 21difficult to meet expectations from or commitments to customers, lead to significant fines, penalties or liabilities for noncompliance, or slow the pace at which we close sales transactions, any of which could harm our business

RISKS RELATED TO HUMAN CAPITAL

1. 22We depend on key employees and face competition in hiring and retaining qualified employees

RISKS RELATED TO LEGAL AND REGULATORY MATTERS

1. 23We face uncertainties regarding legal proceedings, complex and changing laws and regulations, and other related matters
2. 24Gaps in protection of Teradata’s intellectual property or unlicensed use of third-party intellectual property could impact our business and financial condition
3. 25A change in our effective tax rate can have a significant adverse impact on our business

RISKS RELATED TO OUR FINANCIAL CONDITION

1. 26Our indebtedness could adversely affect our financial condition and limit our financial flexibility
2. 27Fluctuations in foreign currency exchange rates have affected our operating results and could continue to impact our revenue and net earnings