Teradata Corporation (TDC): Business Model Canvas [Apr-2026 Updated]

You're digging into the engine room of Teradata Corporation right now, and honestly, the story for late 2025 is all about their aggressive pivot to hybrid AI and cloud subscription growth. After years of transformation, the numbers are starting to show it: they are banking on that Public Cloud ARR growing between 14% and 18% for the full year, building on a base of $1.490 billion in total ARR as of Q3 2025, all while leaning on key partnerships like NVIDIA and the hyperscalers. If you want to see exactly how Teradata Corporation is structuring its business-from its proprietary Massively Parallel Processing architecture to its high-ROI value proposition-to make this cloud-first, AI-driven future work, you need to see the full canvas below.

Teradata Corporation (TDC) - Canvas Business Model: Key Partnerships

You're looking at the ecosystem Teradata Corporation is building around its hybrid AI platform, which is crucial for hitting those 2025 targets. Honestly, the partnerships are where the cloud growth story is being written.

Hyperscalers: AWS, Microsoft, and Google Cloud for multi-cloud deployment

The multi-cloud strategy is clearly central, with Teradata Corporation actively driving public cloud Annual Recurring Revenue (ARR) growth. For the full-year 2025, the target for Public cloud ARR growth is a range of 14% to 18% year-over-year in constant currency. This is supported by the latest reported figures; for example, Q3 2025 Public cloud ARR hit $633 million, an 11% reported increase from the prior year. To put the cloud landscape in perspective, as of Q2 2025, the global enterprise cloud infrastructure services market shares were approximately 30% for AWS, ~20% for Azure, and ~13% for Google Cloud.

Here's a quick look at the platform-specific integrations and market context:

The goal for Total ARR for the full-year 2025 remains in the range of flat to 2% growth, with Q3 2025 Total ARR reported at $1.490 billion.

AI/Compute: NVIDIA for GPU acceleration and Generative AI (GenAI) capabilities

The relationship with NVIDIA is foundational to the hybrid AI platform narrative. NVIDIA was named the Global Partner of the Year in October 2025 for its role in powering AI factories with Teradata Corporation and the Enterprise Vector Store. This involves integrating NVIDIA AI Enterprise, using GPU acceleration for scalable embeddings and model fine-tuning. Teradata Corporation seamlessly integrates with NVIDIA NIM microservices to enable native Retrieval-Augmented Generation (RAG) pipelines on-premises. This integration supports over 80 optimized NVIDIA curated foundation models for tasks like summarization and classification.

OEM: Dell Technologies for on-premise/hybrid infrastructure sales

While specific co-sell revenue figures with Dell Technologies aren't public, the strategy supports the on-premises and hybrid component of the platform. Dell Technologies reported full-year fiscal 2025 revenue of $95.6 billion, up 8% year-over-year, showing a strong underlying hardware market for hybrid deployments.

Global System Integrators (SIs) for large-scale customer implementation

System Integrators are key for large-scale customer implementation and migration efforts. The Global System Integrators Market size is calculated at $590.09 billion in 2025, growing at a CAGR of 14.18% through 2034. Teradata Corporation relies on these firms to deploy solutions that harmonize data and enable trusted AI across complex enterprise environments.

Regional partners like Aria PSW for targeted public sector wins

Targeted regional execution is clearly paying off. Aria PSW, for instance, is noted for making an immediate impact in LATAM, specifically transforming a high-risk renewal into a public sector win within months of onboarding. This rapid execution model is being highlighted as a standout new partner success story.

• Aria PSW executed a joint go-to-market strategy positioning Teradata Corporation as the data platform of choice for a leading Colombian government agency.
• Master Works was recognized as the Growth Markets Partner of the Year for delivering measurable impact across public and private sectors, including major national programs like the ZATCA Data Warehouse Modernization.

Finance: review Q4 2025 cash flow projections against the full-year guidance of free cash flow between $260 million to $280 million by end of week.

Teradata Corporation (TDC) - Canvas Business Model: Key Activities

You're looking at the core engine driving Teradata Corporation's strategy as of late 2025. This is where the resources go to keep the platform competitive, especially against the backdrop of ongoing cloud transition.

Developing and maintaining the VantageCloud hybrid AI platform.

The focus here is clearly on the cloud-native offering, which is the primary growth vector for Teradata Corporation.

• Public cloud Annual Recurring Revenue (ARR) reached $633 million in the third quarter of 2025.
• Public cloud ARR growth for the full fiscal year 2025 is projected to be between 14% and 18% year-over-year, in constant currency.
• The cloud net expansion rate was reported at 109% for the third quarter of 2025.
• Total ARR stood at $1.490 billion as of the third quarter of 2025.

R&D for ClearScape Analytics and the Enterprise Vector Store.

Investment in R&D is channeled directly into differentiating the platform for modern AI workloads, particularly around vector data management.

• The Enterprise Vector Store, an in-database solution for vector data management, had its General Availability slated for July 2025.
• This new offering is designed to process billions of vectors with response times as quick as in the tens of milliseconds.
• ModelOps updates to ClearScape Analytics were announced in July 2025, providing native support for open-source ONNX embedding models and cloud LLM APIs like Azure OpenAI, Amazon Bedrock, and Google Gemini.

Executing enterprise cloud migration and data modernization projects.

This activity reflects the ongoing, sometimes bumpy, transition of the existing customer base to the cloud subscription model.

• Guidance for the fourth quarter of 2025 implied year-over-year declines for recurring revenue between -1% and -3%, constant currency.
• Guidance for the fourth quarter of 2025 implied year-over-year declines for total revenue between -2% and -4%, constant currency.
• Management cited customers assessing deployment options between cloud versus on-premise as a source of mix risk that could pressure cloud ARR linearity.

Global sales and co-selling motions with key hyperscaler partners.

Sales activity is increasingly focused on joint motions with the major cloud providers, even as marketplace maturity varies.

Here's a quick look at the general marketplace landscape that Teradata Corporation is operating within:

The execution of these co-sell motions is critical for driving the projected cloud ARR growth.

Ongoing cost defintely optimization efforts to improve margins.

Margin improvement is a direct result of shifting the revenue mix and disciplined operational spending.

• Non-GAAP gross margin reached 62.3% in the third quarter of 2025, an increase of 70 basis points year-over-year.
• The services gross margin swung to +8.5% in the third quarter of 2025, up from -2% in the second quarter.
• Non-GAAP operating margin was 23.6% for the third quarter of 2025.
• Full-year 2025 free cash flow is projected to be in the range of $260 million to $280 million.

Finance: draft the Q4 2025 cash flow forecast by next Tuesday.

Teradata Corporation (TDC) - Canvas Business Model: Key Resources

You're looking at the core assets that power Teradata Corporation's business right now, late in 2025. These aren't abstract concepts; they are the tangible and intellectual properties driving their recurring revenue stream.

Proprietary Technology and Intellectual Property

The foundation of Teradata Corporation's offering is its proprietary technology stack. You can't just replicate this overnight; it's built on decades of specialized engineering.

• Proprietary Massively Parallel Processing (MPP) architecture, designed for high-performance, large-scale data processing.
• ClearScape Analytics Intellectual Property (IP), which includes in-database functions for AI/ML workloads.
• The ClearScape Analytics library contains more than 150 in-database functions, all authored by Teradata developers to optimize for their specific hardware and software environment.
• A patent was filed for the DN18-1001 UNBOUNDED ANALYTIC FRAMEWORK IN A DATA STORE SYSTEM, protecting key aspects of their analytic engine.

This in-database approach is key; for example, in one case study, ClearScape Analytics helped reduce AI model deployment time from five months to one week. Also, they claim to accelerate data preparation time by up to 70%. That's real operational leverage for their clients.

Financial Performance Metrics

The financial health tied to these resources is best seen in the recurring revenue base. This is what gives you a clear view of the business's stickiness.

As of the third quarter of 2025, Teradata Corporation reported a Total Annual Recurring Revenue (ARR) of $1.490 billion. This figure represents a 1% increase as reported compared to the prior year period's $1.482 billion. The cloud component is growing faster, with Public Cloud ARR reaching $633 million, up 11% year-over-year as reported.

Here's a quick look at the key revenue components from Q3 2025:

Note that Recurring Revenue made up 88% of Total Revenue in the quarter.

Human Capital and Customer Base

The talent pool and the established customer relationships are critical for maintaining and expanding the platform's value.

Teradata Corporation maintains a significant global presence, with a workforce reported at approximately 5,700 employees across 41 countries as of early 2025. Engineering is a major focus, with about 1,233 people in that department, which is roughly one-third of the total headcount reported in mid-2025. The company concentrates its go-to-market efforts on large enterprises, viewing data analytics and AI/ML as strategic imperatives for them. While the exact Global 2000 count isn't specified, as of August 2025, verified data shows 1,092 companies use the Teradata Database product specifically.

These relationships are often secured through subscription-based purchasing options, leading to a substantial portion of revenue being recurring.

Teradata Corporation (TDC) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Teradata Corporation, and honestly, the numbers coming out in late 2025 are compelling, especially around AI enablement and proven return on investment.

Trusted AI and harmonized data for mission-critical, enterprise-scale analytics is a key pillar. Teradata Corporation has been recognized as a Leader in The Forrester Wave™: Data Management for Analytics Platforms, Q2 2025. This focus on harmonized data and Trusted AI is validated by their recognition in the 2025 Gartner® Critical Capabilities for Cloud Database Management Systems for Analytical Use Cases. As of 2025, 1,092 verified companies use Teradata Database for large-scale data management.

The platform delivers hybrid cloud flexibility, supporting both cloud and on-premise environments. The company projected exiting 2025 with more than $700 million of cloud business, up from $609 million in Cloud ARR exiting 2024. This is reflected in their Q3 2025 public cloud ARR reaching $633 million, an increase of 11% year-over-year. The full-year 2025 outlook for Public cloud ARR growth remains targeted between 14% and 18%.

The High ROI is not just theoretical; an independent study from Nucleus Research on Teradata VantageCloud customers showed an average 427% ROI over three years, with a payback period of just 11 months. The average annual benefit realized by these organizations was $7,917,573.

For AI/ML pipelines, ClearScape Analytics is positioned to eliminate data movement friction. A Forrester Consulting study from 2024 showed that models enabled by ClearScape Analytics drove $125 million in profits and a 244% ROI over three years for one customer. Furthermore, maintenance time for data scientists on models dropped from 10% to 15% down to only 2% after deploying ClearScape Analytics.

When you look at cost-effective data management, the ROI study provides concrete savings. Administrative overhead was reduced by 43% through the fully managed service model, resulting in annual direct cost savings of $735,000 for the average analyzed organization. One specific customer example showed savings of $350K annually by avoiding a 7-year infrastructure upgrade. The platform also delivered tangible performance gains:

• Data processing performance improved by 25% to 30%.
• Backup operations accelerated by 87% to 90%.

Here's a quick look at the key financial and performance metrics supporting these value claims:

You can see the platform is designed to handle massive scale while delivering immediate financial impact. Finance: draft 13-week cash view by Friday.

Teradata Corporation (TDC) - Canvas Business Model: Customer Relationships

You're looking at how Teradata Corporation (TDC) keeps its enterprise customers engaged and growing their spend, especially as they navigate the shift to hybrid cloud and AI. Honestly, the relationship strategy is a blend of old-school, deep-dive support and modern, outcome-focused metrics. It's about proving value quickly, which is key when you see the payback period for their cloud offering is as short as 11 months.

Dedicated, high-touch enterprise sales and account management.

The sales motion is clearly geared toward large accounts, which makes sense given the scale of their platform. You see this reflected in the Annual Recurring Revenue (ARR) figures, which is the core measure of the ongoing relationship health. For the third quarter of 2025, Total ARR stood at $1.490 billion, which was up 1% as reported from the prior year period. This stabilization, after some earlier declines, suggests the high-touch sales efforts are helping lock in the base. The focus is on the recurring nature of the business, where recurring revenue made up 88% of total revenue in Q3 2025.

Here's a quick look at the recurring revenue base evolution through 2025:

Professional services and Customer Intelligence Maturity workshops.

While the long-term goal is cloud subscription, the professional services arm is still active, though its revenue contribution is shrinking and margins are under pressure. For instance, Consulting Services revenue in the third quarter of 2025 was $47 million, representing a significant year-over-year decrease of 23%. This aligns with the broader trend where consulting services revenue in Q2 2025 was down 19% year-over-year. The workshops, however, tie directly into the platform's evolution; Teradata Corporation launched an autonomous customer intelligence platform in October 2025, which requires customers to mature their intelligence usage to adopt.

Fully managed cloud service model for reduced administrative overhead.

The fully managed cloud service, Teradata VantageCloud, is the engine for driving customer ROI and stickiness. An independent study found that organizations using it achieved an average ROI of 427% over three years, with an average annual benefit of $7.9 million. This value proposition directly addresses the administrative overhead concern by delivering results fast. The company's guidance for 2025 reinforced this focus, projecting Cloud ARR growth between 14% and 18%. The Cloud Net Expansion Rate in Q1 2025 was 115%, meaning existing cloud customers, on average, increased their spend by 15%.

Direct technical support and customer success programs.

Customer Success Managers at Teradata Corporation focus on three main areas to maintain and enhance relationships:

• Customer relationship health checks with stakeholders.
• Tracking usage of the Teradata investment.
• Driving adoption of new platform features.

This proactive engagement is designed to improve key metrics that signal customer health and loyalty. You should be watching these indicators closely:

• Customer Health Score.
• Net Promoter Score (NPS).
• Customer Satisfaction Score (CSAT).
• Renewal Rate.
• Upsell and Cross-sell Rates.

The management noted that improved retention rates seen in late 2024 were projected to continue into 2025, which is a direct outcome of these programs.

Partner-led co-sell motions for accelerated cloud adoption.

The strategy for accelerating cloud adoption heavily relies on ecosystem partnerships, which feed directly into the sales pipeline. Teradata Corporation is actively building out hybrid AI capabilities through announced partnerships with major players like Nvidia, AWS, and Google Cloud. These co-sell motions are critical because they embed Teradata Vantage into broader, modern data and AI initiatives customers are already undertaking. The goal is to stabilize and then grow Total ARR, with the 2025 guidance aiming for Total ARR growth of flat to 2%.

Finance: draft the Q4 2025 customer retention forecast by January 15th.

Teradata Corporation (TDC) - Canvas Business Model: Channels

You're looking at how Teradata Corporation (TDC) gets its platform and services into the hands of enterprise customers as of late 2025. The channel strategy is clearly multi-pronged, balancing high-touch direct sales with the scale of the cloud and partners. Honestly, the shift to recurring revenue is the key metric here, showing how well these channels are converting deals.

Direct Enterprise Sales Force

Teradata Corporation relies heavily on its direct sales force, which is led by the Chief Revenue Officer. This team is the core engine for landing large, strategic enterprise deals. To give you a sense of the scale, the company stated that it has more than 80% of its employees in customer-facing and/or revenue-driving roles, which includes sales, marketing, consulting, and customer services. This structure suggests a significant investment in direct relationship management for complex, high-value transactions.

The focus is on selling the full spectrum of solutions, supporting cloud-only, multi-cloud, and hybrid deployments. This direct effort is supported by marketing designed to drive adoption across the enterprise.

Public Cloud Marketplaces

Public cloud marketplaces are a critical, easy-consumption channel, especially for customers utilizing their existing cloud commitments. Teradata Corporation has expanded its availability significantly across the major hyperscalers. You can transact for Teradata VantageCloud and Teradata AI Unlimited directly through AWS Marketplace. Furthermore, Teradata added Google Cloud availability in addition to Amazon Web Services (AWS) and Microsoft Azure. This multi-cloud marketplace presence helps customers consolidate purchasing and draw down on their existing cloud commitments.

The results show this channel is performing well. For the third quarter of 2025, Public cloud Annual Recurring Revenue (ARR) reached $633 million, up 11% year-over-year. The cloud net expansion rate was reported at 109%, indicating existing cloud customers are expanding their usage. For the full year 2025, Teradata Corporation is projecting Public cloud ARR growth in the range of 14% to 18% in constant currency.

Here's a quick look at the cloud ARR momentum:

Global and Regional System Integrators

System Integrators (SIs) are essential for implementation, modernization, and driving joint opportunities. Teradata Corporation structures its partner program to incentivize these players across different tiers. The Consulting and Systems Integrator partner tiers are Bronze, Silver, and Gold, with associated annual program fees of Free, $1,000, and $2,000, respectively. This tiered structure helps manage engagement levels.

Partnerships are recognized globally. For instance, Dell Technologies was named the Europe, Middle East, and Africa Partner of the Year for 2025 due to exceptional engagement. Other regional winners included ATPeak for Australia, New Zealand, and Japan, and Master Works for Growth Markets. Major firms like Deloitte are positioned as preferred systems integrators, specifically collaborating on migrating customers from on-premise environments to Teradata Vantage in the cloud, aiming for low-risk migrations.

• Europe, Middle East, and Africa Partner of the Year (2025): Dell Technologies
• Australia, New Zealand, and Japan Partner of the Year (2025): ATPeak
• Growth Markets Partner of the Year (2025): Master Works

OEM Channel via Hardware Partners

The OEM channel leverages hardware partners to deliver integrated, optimized solutions, especially for on-premises and hybrid deployments. Dell Technologies is a key OEM partner. Their work with Teradata Corporation's OEM Sales team has been instrumental in fueling pipeline growth and securing new logos in sectors like defense and aerospace. The joint roadmap focuses on delivering AI-powered infrastructure.

Solutions like Teradata VantageCore powered by Dell Technologies combine Teradata's software with Dell's compute, storage, and networking infrastructure. This provides customers with secure, scalable, plug-and-play deployment options for their on-premises and hybrid environments. The goal is to allow customers to start solving business challenges within hours with quick-start options.

Teradata's Own AI Services and Consulting Arm

Teradata Corporation maintains a direct consulting arm that supports its platform sales and drives adoption of advanced capabilities. Services revenue in the third quarter of 2025 was $47 million. However, you should note that consulting services saw a sharp decline of 19% in the second quarter of 2025, reflecting the ongoing shift in revenue mix toward more predictable recurring streams.

The focus here is increasingly on AI-driven offerings. The company launched Autonomous Customer Intelligence, which is described as a software and services offering that embeds Teradata agents across the customer experience journey. This service component is designed to monetize the company's AI platform advancements, such as the Enterprise Vector Store. Overall, recurring revenue-which encompasses cloud subscriptions and maintenance-represented 88% of total revenue in Q3 2025, up from 85% in Q3 2024, showing the success of shifting the business model away from one-time license and services revenue.

Finance: draft 13-week cash view by Friday.

Teradata Corporation (TDC) - Canvas Business Model: Customer Segments

You're looking at the core customer base for Teradata Corporation (TDC) as of late 2025. Honestly, the numbers show a clear focus on the top tier of the market, which makes sense given the complexity and scale of their platform.

The foundation of their customer base is built on large organizations. As of 2025, our data indicates that 1,092 verified companies use the Teradata Database specifically. Furthermore, when looking at their usage across the broader Other BI and Analytics tool category, over 7,490 companies globally use Teradata.

The financial muscle behind this usage is concentrated in the largest firms. Here's a quick look at the revenue-based segmentation:

The profile of these customers points directly to data-intensive, high-stakes environments. You see a strong presence in sectors where data governance and scale are non-negotiable. For instance, Financial Services is cited as a top industry using Teradata.

The strategic shift toward modern workloads is clearly reflected in who they are targeting now. Management has been emphasizing a push into agentic AI. This means their ideal customer isn't just running reports; they need to implement complex, mission-critical AI/ML workloads that demand trusted, governed data foundations. Teradata AI Services are explicitly designed to help customers deploy these agentic systems across both cloud and on-premises environments.

This hybrid focus directly addresses the segment of existing customers. Teradata maintains its 'longstanding strength in on-prem' while pushing cloud growth. This means a significant portion of their customer base is actively engaged in data modernization, looking for flexible deployment options that mix on-premises infrastructure with public cloud capabilities-what they call a hybrid cloud approach.

The value proposition for these segments centers on trust and autonomy in AI. Customers are seeking solutions that deliver 'Trusted AI'. The platform's ability to handle massive, complex query volumes for trusted results is positioned as Teradata's sweet spot for these agentic AI workloads.

Here are the key characteristics defining the target customer segments:

• Large enterprises, with 59% of users being over $1000M in revenue.
• Companies in highly regulated sectors like Financial Services.
• Organizations needing hybrid environments, mixing on-premises and cloud.
• Users focused on complex, mission-critical AI/ML workloads.
• Firms prioritizing data governance for 'Trusted AI' outcomes.

To be fair, the full-year 2025 outlook suggests some near-term pressure, with total revenue projected to decline between -5% and -7% year-over-year in constant currency. Still, the Public Cloud ARR growth projection remains strong, targeted between 14% and 18% year-over-year.

Finance: draft 13-week cash view by Friday.

Teradata Corporation (TDC) - Canvas Business Model: Cost Structure

You're looking at the major drains on Teradata Corporation's cash flow as they push their cloud and AI platform, VantageCloud. Honestly, running a modern, high-performance data platform means certain costs are baked in, and they aren't small. The cost structure is heavily weighted toward innovation and getting that cloud platform into the hands of global enterprises.

High R&D costs for cloud-native and AI platform innovation.

Teradata Corporation is spending heavily to keep its platform competitive, especially with the focus on AI integration like ClearScape Analytics and AI Unlimited. For the full calendar year 2024, Research and Development (R&D) expenses totaled $216 million. This investment fuels the engineering required to maintain and advance the hybrid cloud capabilities of VantageCloud. This is a non-negotiable cost for a company whose value proposition rests on technology leadership.

Sales and Marketing expenses for global enterprise acquisition.

Acquiring and retaining large enterprise customers for subscription and cloud services requires a significant field presence. For the twelve months ending December 31, 2024, Selling, General and Administrative (SG&A) expenses-which capture most Sales and Marketing costs-were $429 million. Looking at the most recent quarter, for the three months ended September 30, 2025, SG&A was $158 million, representing 19.1% of that quarter's total revenue of $418 million. That's a big chunk dedicated to the global sales engine.

Cloud infrastructure costs (COGS) for operating VantageCloud.

While Teradata Corporation doesn't break out cloud infrastructure costs specifically within Cost of Goods Sold (COGS), the gross margin figures tell the story of the cost of service delivery. For the three months ended September 30, 2025, Total Revenue was $418 million, and Total Gross Profit was $252 million. This implies that the cost of revenue, which includes cloud infrastructure hosting fees paid to public cloud providers, was approximately $166 million for that quarter. The Non-GAAP Gross Margin for the full year 2024 was 62.2%, showing the efficiency they aim for in delivering the cloud service.

Personnel costs for specialized engineering and consulting talent.

The talent required to build, sell, and implement a complex data platform is a primary cost driver. Teradata Corporation has approximately 5,700 employees across 41 countries as of mid-2025. A substantial portion of the R&D spend ($216 million in 2024) and SG&A spend ($429 million in 2024) is personnel-related, covering the specialized engineering teams working on AI/ML integration and the consulting talent needed for customer onboarding and complex deployments. Honestly, retaining this specialized talent in a competitive market is a constant pressure point.

Costs associated with restructuring and optimization initiatives.

Teradata Corporation has been actively managing its cost base through organizational changes. The company announced restructuring actions in August 2024, expecting total charges between $20 million and $25 million. Cash expenditures related to these actions were estimated at $45 million to $50 million in total, with approximately $30 million to $35 million expected to occur during 2025. For the three months ended March 31, 2025, Reorganization and other costs recognized were $0.03 million (or $30,000).

Here's a quick look at the scale of these major cost components based on the latest available full-year 2024 and Q3 2025 data:

Finance: draft 13-week cash view by Friday.

Teradata Corporation (TDC) - Canvas Business Model: Revenue Streams

You're looking at the financial streams Teradata Corporation is relying on as we move through late 2025. The focus is clearly on transitioning that installed base to the cloud while maintaining high-margin subscription value.

The primary driver for future growth is the cloud segment, with management reaffirming strong expectations for the full fiscal year 2025.

• Public Cloud ARR, projected to grow between 14% and 18% year-over-year for full-year 2025, in constant currency.
• Full-year 2025 Non-GAAP EPS is expected to be in the range of $2.38 and $2.42 per share.
• Full-year 2025 Recurring revenue is projected to be between -3% and -5% year-over-year, in constant currency.

Looking at the most recent reported quarter, Q3 2025, gives us a clearer picture of the current mix:

Subscription revenue from VantageCloud licenses is captured within the Recurring Revenue line, which stood at $366 million in the third quarter of 2025. This recurring base is the core of the subscription model.

Revenue from on-premise software licenses and maintenance is represented by the portion of Total Annual Recurring Revenue (ARR) that is not Public Cloud ARR. Here's the quick math based on Q3 2025 figures:

• Total ARR was $1.490 billion.
• Public Cloud ARR reached $633 million.
• The implied on-premise/other component of ARR is approximately $857 million ($1.490 billion minus $633 million).

Professional and consulting services revenue, which now includes new offerings like AI Services, was reported at $47 million for the third quarter of 2025. Services gross margin showed substantial improvement, swinging from -2% in Q2 to +8.5% in Q3 2025.