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Risks

• RISKS RELATED TO OUR BUSINESS AND OPERATIONS
• Our failure to successfully execute our cloud-first strategy and achieve the anticipated benefits of our business transformation could have a material adverse effect on our business, financial condition, results of operations and cash flows.
• Our success depends on our product innovation, particularly with respect to the advancement of our cloud-based technologies. If we are unable to successfully develop and launch cloud-based products and product enhancements and/or enable our data warehouse platform to operate effectively in cloud environments, our business, financial condition, and results of operations could be harmed.
• As we develop new offerings with greater capacity, delivery and performance capabilities, the increased difficulty and complexity associated with producing these offerings may increase the likelihood of reliability, quality or operability issues.
• If 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.
• Unanticipated delays or accelerations in our sales cycles makes accurate estimation of our revenues difficult and could result in significant fluctuations in our quarterly operating results.
• Demand for the offerings and services we sell could decline if we fail to maintain positive brand perception and recognition.
• Our future results depend in part on our relationships with key suppliers, strategic partners and other third parties.
• The Company's business, results of operations, and financial condition have been adversely affected, and could in the future be materially adversely affected, by the COVID-19 pandemic.
• A breach of security, disruption, or failure of our information systems or those of our third-party providers could adversely impact our business and financial results.
• Inadequate 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.
• Our business is affected by the global economies in which we operate and the economic climate of the industries we serve.
• Generating substantial revenues from our international operations poses several risks.
• RISKS RELATED TO OUR INDUSTRY
• The IT industry is intensely competitive and evolving, and competitive pressures could adversely affect our pricing practices or demand for our offerings and services.
• RISKS RELATED TO HUMAN CAPITAL
• We depend on key employees and face competition in hiring and retaining qualified employees.
• RISKS RELATED TO LEGAL AND REGULATORY MATTERS
• We face uncertainties regarding legal proceedings, complex and changing laws and regulations, and other related matters.
• Inadequate protection of Teradata’s intellectual property or infringement of intellectual property that is owned by others could impact our business and financial condition.
• A change in our effective tax rate can have a significant adverse impact on our business.
• Provision for Income Taxes
• Revenue and Gross Profit by Operating Segment
• FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES
• CRITICAL ACCOUNTING POLICIES AND ESTIMATES
• Goodwill and Acquired Intangible Assets
• Pension and Postemployment Benefits
• Opinions on the Financial Statements and Internal Control over Financial Reporting
• Definition and Limitations of Internal Control over Financial Reporting