Technology
D2L Inc. Announces Second Quarter Fiscal 2025 Financial Results
Published
2 years agoon
By
Total revenue increased 11% year-over-year to US$49.2 millionSubscription and support revenue grew 12% year-over-year to US$44.0 millionAnnual Recurring Revenue1 reached US$198.3 million, up 11% over the prior year, and Constant Currency Annual Recurring Revenue1 grew 12%Adjusted EBITDA2 of US$4.2 million (8.6% margin) in the quarterCompany increases revenue guidance to $199 million to $202 million and Adjusted EBITDA guidance to $22 million to $24 million
TORONTO, Sept. 4, 2024 /CNW/ – D2L Inc. (TSX: DTOL) (“D2L” or the “Company”), a leading global learning technology company, today announced financial results for its Fiscal 2025 second quarter ended July 31, 2024. All amounts are in U.S. dollars and all figures are prepared in accordance with International Financial Reporting Standards (“IFRS”) unless otherwise indicated.
“Our second-quarter results demonstrate continued execution on our balanced growth and profitability plan, highlighted by strong growth in Annual Recurring Revenue, subscription revenue, and Free Cash Flow generation,” said John Baker, CEO of D2L. “Our year-to-date performance positions us for continued growth and meaningful Adjusted EBITDA margin expansion in the second half of the year. At the same time, we are reinforcing our commitment to innovation that empowers our customers to create greater impact, achieve better outcomes, and deepen the human connection to learning. In recent months, we have significantly expanded our products and solutions, both through internal development and acquisition, which gives us more opportunity to create even deeper relationships with our growing customer base.”
Second Quarter Fiscal 2025 Financial Highlights
Total revenue was $49.2 million, up 11% from the same period in the prior year.Subscription and support revenue was $44.0 million, an increase of 12% over the same period of the prior year.Annual Recurring Revenue1 as at July 31, 2024 increased by 11% year-over-year, from $178.5 million to $198.3 million. Constant Currency Annual Recurring Revenue1 increased 12% to $200.6 million.Cash flow from operating activities was $31.4 million, up 37% versus $22.9 million in the same period in the prior year, and Free Cash Flow2 was $31.2 million, up 53% from $20.4 million in the same period in the prior year. Cash flows from operations have a seasonal low in the first quarter each year and a seasonal high in the second quarter each year.Cash flow from operating activities for the trailing 12-month period ended July 31, 2024 was $26.4 million, compared with $8.7 million for the trailing 12-month period ended July 31, 2023.Gross profit increased 12% to $33.4 million (67.9% gross profit margin) from $29.7 million (66.7% gross profit margin) in the same period of the prior year.Gross profit margin for subscription and support revenue increased to 72.9%, from 72.5% in the same period of the prior year.Adjusted EBITDA2 increased to $4.2 million from a loss of $0.5 million for the same period in the prior year, and grew to $8.2 million year to date from $2.3 million in the comparative six-month period in the prior year.Loss for the period was $0.3 million, compared with a loss of $4.8 million for the comparative period of the prior year. The Q2 2025 results included approximately $1.2 million in non-recurring expenses and transaction-related costs. These expenses are net of a gain of $0.9 million on the disposal of the Company’s majority ownership stake in SkillsWave.During the quarter, the Company completed the acquisition of H5P Group for an initial total consideration of $31.3 million.Strong balance sheet at quarter end, with cash and cash equivalents of $98.1 million and no debt.During the quarter ended July 31, 2024, the Company repurchased and canceled 106,900 Subordinate Voting Shares under its normal course issuer bid (“NCIB”). The Company has repurchased 279,480 shares since the inception of the NCIB on December 3, 2024.
1 Refer to “Key Performance Indicators” section of this press release.
2 A non-IFRS financial measure or non-IFRS ratio. Refer to “Non IFRS Financial Measures” section of this press release.
Second Quarter Fiscal 2025 Financial Results – Selected Financial Measures
(in thousands of U.S. dollars, except for percentages)
Three months ended July 31
Six months ended July 31
2024
2023
Change
Change
2024
2023
Change
Change
$
$
$
%
$
$
$
%
Subscription & Support Revenue
44,017
39,405
4,612
11.7 %
86,971
78,595
8,376
10.7 %
Professional Services & Other Revenue
5,151
5,065
86
1.7 %
10,692
10,103
589
5.8 %
Total Revenue
49,168
44,470
4,698
10.6 %
97,663
88,698
8,965
10.1 %
Constant Currency Revenue1
49,568
44,470
5,098
11.5 %
98,019
88,698
9,321
10.5 %
Gross Profit
33,373
29,681
3,692
12.4 %
66,050
59,561
6,489
10.9 %
Adjusted Gross Profit 1
33,522
29,853
3,669
12.3 %
66,345
59,844
6,501
10.9 %
Adjusted Gross Margin1
68.2 %
67.1 %
67.9 %
67.5 %
Loss for the period
(262)
(4,828)
4,566
94.6 %
310
(3,718)
4,028
108.3 %
Adjusted EBITDA (Loss)1
4,213
(534)
4,747
889.0 %
8,232
2,277
5,955
261.5 %
Cash Flows From Operating Activities
31,443
22,888
8,555
37.4 %
16,617
5,853
10,764
183.9 %
Free Cash Flow1
31,223
20,449
10,774
52.7 %
16,271
1,765
14,506
821.9 %
1 A non-IFRS financial measure or non-IFRS ratio. Refer to the “Non-IFRS Financial Measures and Reconciliation of Non-IFRS Financial Measures” section of this press release for more details.
Second Quarter Business & Operating Highlights
D2L continued to grow its customer base in education in North America, including the additions of Stark State College and University of Texas at Rio Grande Valley.D2L continued to expand its international customer base, including Hanze University of Applied Sciences and SteelCorp Construction S.A.Signed new corporate customers, including Ontario Nurses’ Association and a large healthcare non-profit with 50,000 learners.Acquired H5P Group, a leading SaaS learning solution and provider of interactive content creation software with a global user base serving millions of individuals spanning more than 50 countries.Hosted its annual, sold-out user-conference, Fusion 2024, where global edtech leaders had access to inspiring keynotes, engaging discussions on the future of learning, and demonstrations of learning innovation.Launched D2L Lumi, a new artificial intelligence (AI)-powered feature in Brightspace to help build better content, assessments, and activities, saving educators valuable time.Launched D2L Achievement+ for Brightspace, a new add-on package that can help institutions and organizations implement a competency-based learning model, allowing learners to advance and master material at a pace that suits them best.Completed the previously announced transaction to spin-out SkillsWave into a new independent standalone company.Subsequent to quarter end, appointed Marta DeBellis to the Company’s Board of Directors. DeBellis is an executive leader and leadership coach bringing over 30-years of global go-to-market experience focused on technology, for brands such as Adobe, Intel, and Instructure.
Financial Outlook
D2L updated its previously issued financial guidance for the year ended January 31, 2025 (“Fiscal 2025”) as follows:
Subscription and support revenue in the range of $178 million to $181 million, implying growth of 11% at the midpoint over Fiscal 2024, an increase from previously issued guidance of $177 million to $180 million (growth of 10% at the midpoint);Total revenue in the range of $199 million to $202 million, implying growth of 10% at the midpoint over Fiscal 2024, an increase from previously issued guidance of $197 million to $201 million (growth of 9% at the midpoint); andAdjusted EBITDA in the range of $22 million to $24 million, an increase from previously issued guidance of $21 million to $23 million (implying Adjusted EBITDA margin of 11% at the midpoint, consistent with previous guidance).
The Company expects revenue and Adjusted EBITDA to increase as Fiscal 2025 progresses, enabling the Company to exit the year with low-to-mid-teen Adjusted EBITDA Margin.
These guidance revisions reflect the Company’s continued progress in balancing revenue growth with operating efficiency improvements, as well as the partial year contributions in the Company’s third and fourth quarter from the acquisition of H5P on July 9, 2024, inclusive of business combination accounting.
For additional details on the Company’s outlook, including the principal underlying assumptions and risk factors regarding achievement, refer to the “Financial Outlook” section of the Company’s Management’s Discussion and Analysis for the three and 12 months ended January 31, 2024 (the “Annual MD&A”), as well as the “Forward-Looking Information” section therein, below and in the Company’s Management’s Discussion and Analysis for the three months ended July 31, 2024 (the “Interim MD&A”).
Conference Call & Webcast
D2L management will host a conference call on Thursday, September 5, 2024 at 8:30 am ET to discuss its second quarter Fiscal 2025 financial results.
Date:
Thursday, September 5, 2024
Time:
8:30 am (ET)
Dial in number:
Canada/US: 1 (833) 470-1428
International: 1 (404) 975-4839
Access code: 540799
Webcast:
A live webcast will be available at ir.d2l.com/events-and-presentations/events/
The webcast will also be archived
Forward-Looking Information
This press release includes statements containing “forward-looking information” within the meaning of applicable securities laws. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects”, “budget”, “scheduled”, “estimates”, “outlook”, “target”, “forecasts”, “projection”, “potential”, “prospects”, “strategy”, “intends”, “anticipates”, “seek”, “believes”, “opportunity”, “guidance”, “aim”, “goal” or variations of such words and phrases or statements that certain future conditions, actions, events or results “may”, “could”, “would”, “should”, “might”, “will”, “can”, or negative versions thereof, “be taken”, “occur”, “continue” or “be achieved”, and other similar expressions. Statements containing forward-looking information are not historical facts, but instead represent management’s expectations, estimates and projections regarding future events or circumstances.
This forward-looking information relates to the Company’s future financial outlook and anticipated events or results and includes, but is not limited to, statements under the heading “Financial Outlook” and information regarding: the Company’s financial position, financial results, business strategy, performance, achievements, prospects, objectives, opportunities, business plans and growth strategies, including the Company’s balanced growth and profitability plan; the Company’s budgets, operations and taxes; and judgments and estimates impacting on financial statements.
Forward-looking information is based on certain assumptions, expectations and projections, and analyses made by the Company in light of management’s experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate, including the following: the Company’s ability to win business from new customers and expand business from existing customers; the timing of new customer wins and expansion decisions by existing customers; the Company’s ability to generate revenue and expand its business while controlling costs and expenses; the Company’s ability to manage growth effectively; the Company’s ability to hire and retain personnel effectively; the effects of foreign currency exchange rate fluctuations on our operations; the ability to seek out, enter into and successfully integrate acquisitions, including the acquisition of H5P; business and industry trends, including the success of current and future product development initiatives; positive social development and attitudes toward the pursuit of higher education; the Company’s ability to maintain positive relationships with its customer base and strategic partners; the Company’s ability to adapt and develop solutions that keep pace with continuing changes in technology, education and customer needs; the ability to patent new technologies and protect intellectual property rights; the Company’s ability to comply with security, cybersecurity and accessibility laws, regulations and standards; the assumptions underlying the judgments and estimates impacting on financial statements; and the Company’s ability to retain key personnel; the factors and assumptions discussed under the “Financial Outlook” of the Annual MD&A; and that the list of factors referenced in the following paragraph, collectively, do not have a material impact on the Company.
Although the Company believes that the assumptions underlying such forward-looking information were reasonable when made, they are inherently uncertain and are subject to significant risks and uncertainties and may prove to be incorrect. The Company cautions investors that forward-looking information is not a guarantee of the future and that actual results may differ materially from those made in or suggested by the forward-looking information contained in this press release. Whether actual results, performance or achievements will conform to the Company’s expectations and predictions is subject to a number of known and unknown risks, uncertainties and other factors, including but not limited to the risks identified herein, or at “Summary of Factors Affecting Our Performance” of the Company’s Interim MD&A or in the “Risk Factors” section of the Company’s most recently filed annual information form, in each case filed under the Company’s profile on SEDAR+ at www.sedarplus.com. If any of these risks or uncertainties materialize, or if assumptions underlying the forward-looking information prove incorrect, actual results might vary materially from those anticipated in the forward-looking information.
Given these risks and uncertainties, investors are cautioned not to place undue reliance on forward-looking information, including any financial outlook. Any forward-looking information that is contained in this press release speaks only as of the date of such statement, and the Company undertakes no obligation to update any forward-looking information or to publicly announce the results of any revisions to any of those statements to reflect future events or developments, except as required by applicable securities laws. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless specifically expressed as such, and should only be viewed as historical data.
About D2L Inc. (TSX: DTOL)
D2L is transforming the way the world learns—helping learners of all ages achieve more than they dreamed possible. Working closely with customers all over the world, D2L is supporting millions of people learning online and in person. Our global workforce is dedicated to making the best learning products to leave the world better than they found it. Learn more at www.D2L.com.
D2L Inc.
Condensed Consolidated Interim Statements of Financial Position
(In U.S. dollars)
As at July 31, 2024 and January 31, 2024
(Unaudited)
July 31, 2024
January 31, 2024
Assets
Current assets:
Cash and cash equivalents
$ 98,059,870
$ 116,943,499
Trade and other receivables
28,519,428
23,025,690
Uninvoiced revenue
3,542,139
3,971,861
Prepaid expenses
7,643,525
10,517,226
Deferred commissions
5,365,809
5,334,864
143,130,771
159,793,140
Non-current assets:
Other receivables
476,385
537,056
Prepaid expenses
290,583
119,872
Deferred income taxes
544,501
529,674
Right-of-use assets
8,642,646
8,774,960
Property and equipment
7,729,392
8,427,734
Deferred commissions
7,785,682
7,730,724
Investment in associate
341,334
—
Loan receivable from associate
5,031,127
—
Intangible assets
18,416,205
770,707
Goodwill
26,051,803
10,440,091
Total assets
$ 218,440,429
$ 197,123,958
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable and accrued liabilities
$ 27,839,548
$ 32,635,926
Deferred revenue
113,252,795
93,727,368
Lease liabilities
1,366,283
1,002,464
Contingent consideration
311,549
271,479
142,770,175
127,637,237
Non-current liabilities:
Deferred income taxes
4,334,057
587,075
Lease liabilities
11,096,375
11,707,534
Contingent consideration
4,529,000
311,839
19,959,432
12,606,448
162,729,607
140,243,685
Shareholders’ equity:
Share capital
367,404,918
364,830,884
Additional paid-in capital
46,517,830
47,485,107
Accumulated other comprehensive loss
(7,471,175)
(4,998,317)
Deficit
(350,740,751)
(350,437,401)
55,710,822
56,880,273
Total liabilities and shareholders’ equity
$ 218,440,429
$ 197,123,958
D2L INC.
Condensed Consolidated Interim Statements of Comprehensive Loss
(In U.S. dollars)
For the three and six months ended July 31, 2024 and 2023
(Unaudited)
Three months ended July 31
Six months ended July 31
2024
2023
2024
2023
Revenue:
Subscription and support
$ 44,017,554
$ 39,405,679
$ 86,971,029
$ 78,595,340
Professional service and other
5,150,798
5,064,462
10,692,215
10,102,740
49,168,352
44,470,141
97,663,244
88,698,080
Cost of revenue:
Subscription and support
11,928,116
10,852,459
23,874,726
22,093,199
Professional services and other
3,867,294
3,936,514
7,738,162
7,043,818
15,795,410
14,788,973
31,612,888
29,137,017
Gross profit
33,372,942
29,681,168
66,050,356
59,561,063
Expenses:
Sales and marketing
14,591,271
14,961,079
27,496,210
27,401,746
Research and development
11,863,787
12,519,168
24,154,558
23,664,521
General and administrative
8,480,828
7,312,207
16,580,259
13,501,710
34,935,886
34,792,454
68,231,027
64,567,977
Loss from operations
(1,562,944)
(5,111,286)
(2,180,671)
(5,006,914)
Interest and other income (expense):
Interest expense
(153,886)
(142,866)
(314,546)
(298,874)
Interest income
944,693
840,405
2,028,738
1,716,512
Other income (expense)
(59,433)
(211)
43
15,252
Gain on SkillsWave disposal transaction
917,395
—
917,395
—
Foreign exchange gain (loss)
(147,067)
(364,693)
83,714
65,479
1,501,702
332,635
2,715,344
1,498,369
(Loss) income before income taxes
(61,242)
(4,778,651)
534,673
(3,508,545)
Income taxes (recovery):
Current
305,923
316,769
356,668
391,411
Deferred
(104,581)
(267,464)
(131,677)
(182,451)
201,342
49,305
224,991
208,960
(Loss) income for the period
(262,584)
(4,827,956)
309,682
(3,717,505)
Other comprehensive gain (loss):
Foreign currency translation gain (loss)
(1,677,168)
746,510
(2,472,858)
535,299
Comprehensive loss
$ (1,939,752)
$ (4,081,446)
$ (2,163,176)
$ (3,182,206)
(Loss) earnings per share – basic
$ (0.00)
$ (0.09)
$ 0.01
$ (0.07)
(Loss) earnings share – diluted
$ (0.00)
$ (0.09)
$ 0.01
$ (0.07)
Weighted average number of common shares – basic
54,374,056
53,430,984
54,195,897
53,328,052
Weighted average number of common shares – diluted
54,374,056
53,430,984
55,770,096
53,328,052
D2L INC.
Condensed Consolidated Interim Statements of Changes in Shareholders’ Equity
(In U.S. dollars)
For the six months ended July 31, 2024 and 2023
(Unaudited)
Share Capital
Additional paid-in
capital
Accumulated other
comprehensive loss
Deficit
Total
Shares
Amount
Balance, January 31, 2024
53,978,085
$ 364,830,884
$ 47,485,107
$ (4,998,317)
$ (350,437,401)
$ 56,880,273
Issuance of Subordinate Voting Shares on exercise of options
351,007
3,043,827
(1,593,216)
—
—
1,450,611
Issuance of Subordinate Voting Shares on settlement of restricted share units
355,840
1,287,144
(4,290,550)
—
—
(3,003,406)
Stock-based compensation
—
—
4,916,489
—
—
4,916,489
Repurchase of share capital for cancellation under NCIB
(238,280)
(1,756,937)
—
—
—
(1,756,937)
Change in share repurchase commitment under ASPP
—
—
—
—
(613,032)
(613,032)
Other comprehensive loss
—
—
—
(2,472,858)
—
(2,472,858)
Income for the period
—
—
—
—
309,682
309,682
Balance, July 31, 2024
54,446,652
$ 367,404,918
$ 46,517,830
$ (7,471,175)
$ (350,740,751)
$ 55,710,822
Balance, January 31, 2023
53,146,530
357,639,824
46,084,161
(5,001,805)
(344,630,902)
54,091,278
Issuance of Subordinate Voting Shares on exercise of options
301,494
2,702,550
(1,146,774)
—
—
1,555,776
Issuance of Subordinate Voting Shares on settlement of restricted share units
209,695
961,800
(2,405,427)
—
—
(1,443,627)
Stock-based compensation
—
—
5,169,006
—
—
5,169,006
Other comprehensive gain
—
—
—
535,299
—
535,299
Loss for the period
—
—
—
—
(3,717,505)
(3,717,505)
Balance, July 31, 2023
53,657,719
$ 361,304,174
$ 47,700,966
$ (4,466,506)
$ (348,348,407)
$ 56,190,227
D2L INC.
Condensed Consolidated Interim Statements of Cash Flows
(In U.S. dollars)
For the six months ended July 31, 2024 and 2023
(Unaudited)
2024
2023
Operating activities:
(Loss) income for the period
$309,682
$(3,717,505)
Items not involving cash:
Depreciation of property and equipment
861,831
721,635
Depreciation of right-of-use assets
612,221
643,910
Amortization of intangible assets
179,233
32,572
Gain on disposal of property and equipment
(47,194)
(15,670)
Stock-based compensation
4,916,489
5,169,006
Net interest income
(1,714,192)
(1,417,638)
Income tax expense
224,991
208,960
Gain on SkillsWave disposal transaction
(917,395)
—
Loss from equity accounted investee
96,764
—
Changes in operating assets and liabilities:
Trade and other receivables
(4,478,486)
(7,434,422)
Uninvoiced revenue
325,811
(615,095)
Prepaid expenses
2,528,054
1,573,388
Deferred commissions
(271,090)
(1,331,109)
Accounts payable and accrued liabilities
(6,439,504)
(4,182,827)
Deferred revenue
19,061,544
14,936,043
Right-of-use assets and lease liabilities
(49,476)
—
Interest received
1,984,358
1,717,429
Interest paid
(17,757)
—
Income taxes paid
(548,991)
(435,663)
Cash flows from operating activities
16,616,893
5,853,014
Financing activities:
Payment of lease liabilities
(853,965)
(262,024)
Proceeds from exercise of stock options
1,450,611
1,555,776
Taxes paid on settlement of restricted share units
(3,003,406)
(1,443,627)
Repurchase of share capital for cancellation under NCIB
(1,756,937)
—
Cash flows used in financing activities
(4,163,697)
(149,875)
Investing activities:
Purchase of property and equipment
(393,023)
(4,103,826)
Proceeds from disposal of property and equipment
47,194
15,670
Acquisition of business, net of cash acquired
(22,308,927)
(2,766,284)
Payment of contingent consideration
(249,436)
—
Transfer of cash on disposal of SkillsWave
(1,483,357)
—
Proceeds from sale of majority ownership stake in SkillsWave
809,038
—
Issuance of loan to SkillsWave
(5,000,000)
—
Cash flows used in investing activities
(28,578,511)
(6,854,440)
Effect of exchange rate changes on cash and cash equivalents
(2,758,314)
690,427
Decrease in cash and cash equivalents
(18,883,629)
(460,874)
Cash and cash equivalents, beginning of period
116,943,499
110,732,236
Cash and cash equivalents, end of period
98,059,870
110,271,362
Non-IFRS Financial Measures and Reconciliation of Non-IFRS Financial Measures
The information presented within this press release refers to certain non-IFRS financial measures (including non-IFRS ratios) including Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Gross Profit, Adjusted Gross Margin, Free Cash Flow, Free Cash Flow Margin, and Constant Currency Revenue. These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS. Non-IFRS financial measures should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under IFRS and are unlikely to be comparable to similar measures presented by other issuers. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company’s results of operations, financial performance and liquidity from management’s perspective and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS measures. The Company believes that securities analysts, investors and other interested parties frequently use non-IFRS financial measures in the evaluation of the Company. The Company’s management also uses non-IFRS financial measures to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts, and to assess our ability to meet our capital expenditures and working capital requirements.
Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA is defined as net income (loss), excluding interest, taxes, depreciation and amortization (or EBITDA), adjusted for stock-based compensation, foreign exchange gains and losses, non-recurring expenses, transaction-related expenses, fair value adjustment of acquired deferred revenue, income (loss) from equity accounted investee, impairment charges and other income and losses. Adjusted EBITDA Margin is calculated as Adjusted EBITDA expressed as a percentage of total revenue. For an explanation of recent changes to and management’s use of Adjusted EBITDA and Adjusted EBITDA Margin see “Non-IFRS and Other Financial Measures – Non-IFRS Financial Measures and Non-IFRS Financial Ratios – Adjusted EBITDA and Adjusted EBITDA Margin” section in the Company’s Interim MD&A, which section is incorporated by reference herein.
The following table reconciles Adjusted EBITDA to income (loss) for the period, and discloses Adjusted EBITDA Margin, for the periods indicated:
(in thousands of U.S. dollars, except for percentages)
Three months ended July 31
Six months ended July 31
2024
2023
2024
2023
(Loss) income for the period
(262)
(4,828)
310
(3,718)
Stock-based compensation
2,584
3,095
4,917
5,169
Foreign exchange loss (gain)
147
365
(84)
(65)
Non-recurring expenses(1)
1,045
150
1,866
150
Transaction-related costs(2)
151
552
823
552
Fair value adjustment of acquired deferred revenue
139
—
139
—
Loss from equity accounted investee
97
—
97
—
Net interest income
(791)
(698)
(1,714)
(1,418)
Income tax expense
201
49
225
209
Depreciation and amortization
902
781
1,653
1,398
Adjusted EBITDA
4,213
(534)
8,232
2,277
Adjusted EBITDA Margin
8.6 %
-1.2 %
8.4 %
2.6 %
Notes:
(1)
These expenses relate to non-recurring activities, such as certain legal fees incurred that are not indicative of continuing operations, and changes of workforce or technology whereby certain functions were realigned to optimize operations.
(2)
These expenses include certain legal and professional fees that were incurred in connection with acquisition and other strategic transactions, including the disposal of our majority ownership stake in SkillsWave and our acquisition of H5P. These expenses also include post-combination compensation costs from the acquisition of H5P. These expenses are net of a gain of $0.9 million recognized on the disposal of our majority ownership stake in SkillsWave. These expenses would not have been incurred if not for these transactions and are not considered expenses indicative of the Company’s continuing operations.
Adjusted Gross Profit and Adjusted Gross Margin
Adjusted Gross Profit is defined as gross profit excluding related stock-based compensation expenses. Adjusted Gross Margin is calculated as Adjusted Gross Profit expressed as a percentage of total revenue. For an explanation of management’s use of Adjusted Gross Profit and Adjusted Gross Margin see “Non-IFRS and Other Financial Measures – Non-IFRS Financial Measures and Non-IFRS Financial Ratios – Adjusted Gross Profit and Adjusted Gross Margin” section in the Company’s Interim MD&A, which section is incorporated by reference herein.
The following table reconciles Adjusted Gross Margin to gross profit expressed as a percentage of revenue, for the periods indicated:
(in thousands of U.S. dollars, except for percentages)
Three months ended July 31
Six months ended July 31
2024
2023
2024
2023
Gross profit for the period
33,373
29,681
66,050
59,561
Stock based compensation
149
172
295
283
Adjusted Gross Profit
33,522
29,853
66,345
59,844
Adjusted Gross Margin
68.2 %
67.1 %
67.9 %
67.5 %
Free Cash Flow and Free Cash Flow Margin
Free Cash Flow is defined as cash provided by (used in) operating activities less net additions to property and equipment. Free Cash Flow Margin is calculated as Free Cash Flow expressed as a percentage of total revenue. For an explanation of management’s use of Free Cash Flow and Free Cash Flow Margin see “Non-IFRS and Other Financial Measures – Non-IFRS Financial Measures and Non-IFRS Financial Ratios – Free Cash Flow and Free Cash Flow Margin” section in the Company’s Interim MD&A, which section is incorporated by reference herein.
The following table reconciles our cash flow from (used in) operating activities to Free Cash Flow, and discloses Free Cash Flow Margin, for the periods indicated:
(in thousands of U.S. dollars, except for percentages)
Three months ended July 31
Six months ended July 31
2024
2023
2024
2023
Cash flow from operating activities
31,443
22,888
16,617
5,853
Net addition to property and equipment
(220)
(2,439)
(346)
(4,088)
Free Cash Flow
31,223
20,449
16,271
1,765
Free Cash Flow Margin
63.5 %
46.0 %
16.7 %
2.0 %
Constant Currency Revenue
Constant Currency Revenue is defined as foreign-currency-denominated revenues translated at the historical exchange rates from the comparable prior period into our U.S. dollar functional currency. For an explanation of management’s use of Constant Currency Revenue see “Non-IFRS and Other Financial Measures – Non-IFRS Financial Measures and Non-IFRS Financial Ratios – Constant Currency Revenue” section in the Company’s Interim MD&A, which section is incorporated by reference herein.
The following table reconciles our Constant Currency Revenue to revenue, for the periods indicated:
Three months ended July 31
Six months ended July 31
(in thousands of U.S. dollars)
2024
2023
2024
2023
$
$
$
$
Total revenue for the period
49,168
44,470
97,663
88,698
Negative impact of foreign exchange rate changes over the prior period
400
—
356
—
Constant Currency Revenue
49,568
44,470
98,019
88,698
Key Performance Indicators
Management uses a number of metrics, including the key performance indicators identified below, to help us evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions. Our key performance indicators may be calculated in a manner different than similar key performance indicators used by other issuers. These metrics are estimated operating metrics and not projections, nor actual financial results, and are not indicative of current or future performance.
Annual Recurring Revenue and Constant Currency Annual Recurring Revenue: We define Annual Recurring Revenue as the annualized equivalent value of subscription revenue from all existing customer contracts as at the date being measured, exclusive of the implementation period. Our calculation of Annual Recurring Revenue assumes that customers will renew their contractual commitments as those commitments come up for renewal. We believe Annual Recurring Revenue provides a reasonable, real-time measure of performance in a subscription-based environment and provides us with visibility for potential growth to our cash flows. We believe that increasing Annual Recurring Revenue indicates the continued strength in the expansion of our business, and will continue to be our focus on a go-forward basis. We define Constant Currency Annual Recurring Revenue as foreign-currency-denominated Annual Recurring Revenue translated at the historical exchange rates from the comparable prior period into our U.S. dollar functional currency.
As at July 31
(in millions of U.S. dollars, except percentages)
2024
2023
Change
$
$
%
Annual Recurring Revenue
198.3
178.5
11.1 %
Constant Currency Annual Recurring Revenue
200.6
178.5
12.4 %
For further information, please contact:
Craig Armitage, Investor Relations
ir@d2l.com
(416) 347-8954
SOURCE D2L Inc.
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Technology
Teradata Introduces New Privacy, Security, and Resiliency Capabilities as AI Forces Change in Enterprise Data Protection
Published
27 minutes agoon
October 20, 2026By
New capabilities protect the sensitive data and intelligence behind enterprise AI while keeping mission-critical operations available and recoverable
SAN DIEGO, Oct. 20, 2026 /PRNewswire/ — Teradata (NYSE: TDC) today announced new privacy, security, and resiliency capabilities designed to address one of the defining challenges of enterprise AI: how sensitive data is protected, who and what can access it, and whether it remains available and recoverable when something goes wrong. Teradata addresses all three through an integrated approach that reduces raw identity exposure, enforces protection closer to the data, and keeps the intelligence powering AI available and recoverable. In practice, that means protecting the intelligence behind AI without diminishing what makes it valuable.
Key Capabilities
Poly-Anonymization®: reduces raw identity exposure while preserving the relationships and utility AI and analytics requireFormat-preserving encryption: protects sensitive values without changing their format or breaking downstream systemsPost-quantum security and readiness: strengthens protection against emerging quantum-era threats through Anonomatic PII Vault® and TLS 1.3 hybrid-key exchange for data in transitImmutable backup protection: prevents recovery points from being modified or deleted, strengthening cyber-recovery readinessDatabase-level high availability: an additional availability layer for mission-critical workloads, distinct from disaster recovery
Why It Matters Now
As AI becomes mission-critical, it expands both the value and the vulnerability of enterprise data. Sensitive information now moves among users, applications, models, and agents, making it harder to secure at the boundary alone. AI is designed to combine disparate information to find patterns and make decisions, which means data that isn’t individually identifiable can become so when AI brings it together.
Executive Quote
“Privacy, security, and resiliency have historically been treated as separate problems with separate solutions. That approach doesn’t hold up when AI is moving sensitive data across users, applications, models, and agents simultaneously. This announcement reflects how we think those capabilities need to work together, and it’s the foundation for how we intend to extend that protection as AI environments grow more complex and the actors operating within them multiply.”
-Sumeet Arora, Chief Product Officer, Teradata
Privacy Protection
Access control determines who can see sensitive data. Identity reduction changes how much identifying information needs to be present in the analytical environment in the first place. Teradata combines both, through an OEM partnership with Anonomatic, whose privacy capabilities are natively available to Teradata customers.
Poly-Anonymization replaces PII fields with a stable identifier while holding underlying identity separately within Anonomatic PII Vault, a post-quantum-secure environment built with multiple layers of overlapping security controls designed to protect sensitive identity information. Authorized users can restore identity when a legitimate use case requires it, but everyone else works with data that retains its analytical structure, its relationships, and its utility. The result is an analytical environment where sensitive data can be used for AI, analytics, testing, and approved collaboration without broadly exposing who the data is about.
Unlike approaches that rely solely on mathematically reversible encryption, PII Vault combines identity separation, Poly-Anonymization, access controls, and additional layered protections to reduce identity exposure while retaining the utility required for AI and analytics. Format-preserving encryption extends that protection to situations where a value’s structure matters to downstream systems, protecting sensitive data without breaking the applications and workflows built around it.
Testing at large scale demonstrated that Teradata’s Anonomatic-powered privacy-preserving controls can support enterprise analytical workloads without the performance tradeoffs organizations typically associate with data privacy. Multi-table join queries on protected data used fewer Teradata resources than equivalent queries on unprotected data, though results will vary by workload and configuration.
Partner Quote
“Enterprise AI creates a fundamentally different privacy challenge. Organizations need to use sensitive, individual-level data to build effective AI, but the traditional tools for protecting that data weren’t designed to preserve what AI needs to work. Our partnership with Teradata makes it possible to reduce identity exposure at enterprise scale without forcing organizations to choose between protection and utility.”
-Matt Fleck, Founder and CEO at Anonomatic, a data security software company focused on making PII data privacy secure, simple and cost effective
Native Data Security
Protection that follows the data requires controls enforced at the data layer, not just at the systems surrounding it. Teradata applies classification, policy enforcement, and access controls closer to the data itself. Together, these capabilities provide a governance-led foundation for protecting data and intelligence across users, applications, and workloads.
For data in transit, Teradata introduces post-quantum protection via TLS 1.3 hybrid-key exchange, which combines classical and post-quantum cryptographic algorithms in a single handshake. As quantum computing advances make current encryption standards increasingly vulnerable, organizations that establish cryptographic readiness now will be better positioned for what’s ahead.
New native capabilities including dynamic data masking, data classification and tagging, column-level encryption, and global identity extend that protection across the data layer. Through a partnership with Immuta, a data authorization platform between identity and enterprise data, dynamic ABAC brings identity-aware, attribute-driven access control that enforces policy consistently across users and AI workloads without duplicating data or rewriting governance rules.
Teradata’s security architecture is designed to extend as AI environments evolve, with ongoing investment in controls that govern how AI agents access and act on enterprise data within policy boundaries.
Enterprise Data Protection
For enterprises running AI at scale, a cyberattack is a threat to the data, context, and operational knowledge that AI depends on to function. Teradata Enterprise Data Protection addresses that reality through a workload-aligned approach that lets organizations match protection levels to business criticality rather than applying the same resiliency architecture to every workload. The objective is not simply to restore data, but to restore the trusted context AI needs to resume mission-critical operations.
Database-level high availability via real-time replication introduces an additional availability layer designed for continuous synchronization and low recovery objectives.
Immutable backup protection strengthens cyber-recovery readiness by ensuring recovery points cannot be modified, encrypted, or deleted, even by privileged administrators. As ransomware increasingly targets backup data specifically, protected recovery points have become as critical as the protection strategies built around them. Teradata’s resiliency architecture is designed to extend as cyber threats and recovery requirements evolve.
Additional capabilities including backup and recovery, scheduled data synchronization, and disaster recovery round out a more consistent Enterprise Data Protection experience.
Availability
Privacy capabilities, powered by Anonomatic and delivered by Teradata, are available now for Teradata Cloud on AWS, Azure, and Google Cloud.Native data security capabilities including dynamic data masking, data classification and tagging, and column-level encryption are available on Teradata Cloud across AWS, Azure, and Google Cloud. Dynamic data masking, data classification and tagging are available for Teradata Factory and on-premises deployment options.Teradata Enterprise Data Protection including immutable backup protection is available now on Teradata Cloud across AWS, Azure, and Google Cloud with availability on Teradata Customer Cloud planned in the coming months.
About Teradata
Teradata empowers enterprises to turn intelligence into autonomous action, grounding AI agents in deep business context and trusted data. As AI agents multiply, Teradata is the context foundation, governance layer, and performance backbone that companies need now. The Teradata Autonomous Knowledge Platform puts AI into production across cloud, on-premises, and hybrid environments.
Forward-Looking Statements
This press release contains “forward-looking statements” about the expectations, beliefs, plans, and intentions relating to Teradata’s privacy, security, and resiliency capabilities. Such statements include statements regarding future product availability, capabilities, and offerings, and expected benefits to Teradata customers. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, Teradata’s results could differ materially from the results expressed or implied by the forward-looking statements made. Teradata undertakes no obligation, and does not intend to update the forward-looking statements. Factors that may cause actual results to differ materially from those in any forward-looking statements include: (i) delays and unexpected difficulties and expenses in executing the planned product capabilities and offerings, (ii) changes in the regulatory landscape related to AI and (iii) uncertainty as to whether customer adoption will justify the investments in the product capabilities and offerings. Further information on factors that could affect Teradata’s financial and other results is included in the filings Teradata makes with the Securities and Exchange Commission from time to time.
The Teradata logo is a trademark, and Teradata is a registered trademark of Teradata Corporation and/or its affiliates in the U.S. and worldwide.
Poly-Anonymization and PII Vault are registered trademarks of Anonomatic, Inc.
MEDIA CONTACT
Jennifer Donahue
Jennifer.Donahue@Teradata.com
View original content:https://www.prnewswire.com/news-releases/teradata-introduces-new-privacy-security-and-resiliency-capabilities-as-ai-forces-change-in-enterprise-data-protection-302913579.html
SOURCE Teradata
Technology
Teradata Expands Sovereign AI Across On-Premises and Air-Gapped Cloud Environments
Published
27 minutes agoon
October 20, 2026By
New Teradata Factory and Teradata Sovereign Cloud on Google Distributed Cloud capabilities give enterprises greater control over where their most sensitive data and AI operate
SAN DIEGO, Oct. 20, 2026 /PRNewswire/ — Teradata (NYSE: TDC) today announced a portfolio of deployment and platform capabilities designed to give governments and enterprises greater control over the data, AI, and technology that power their most critical operations. This includes expanded capabilities for Teradata Factory with AI Studio and the availability of Teradata Sovereign Cloud on Google Distributed Cloud air-gapped environment.
What’s New
Teradata’s portfolio spans two complementary deployment models designed to address different sovereignty requirements.
The expanded capabilities for Teradata Factory with AI Studio bring a unified AI environment to operate on data, vectors, models, and agents directly into customer-controlled on-premises infrastructure. These capabilities include:
Tera, the agentic coworker for enterprise data work, including Tera Harness and Tera Context EngineAgentStack, the complete AI agent development capabilities to build, manage, observe and operate agents through natural language, pro-code, low-code, and Model Context Protocol (MCP) interfacesModel services, which provide machine learning operations and AI model management with pre-integrated model and bring-your-own-model supportData pipelines for ingesting multimodal unstructured data, vector embeddings, vector storage and hybrid search for RAGAnalytics, native notebooks backed by in-database analytics and Teradata’s Elastic Python Compute, built on Ray and Arrow, bring AI to where data lives
Teradata Sovereign Cloud on Google Distributed Cloud air-gapped brings Teradata’s high-performance enterprise-scale analytics into fully isolated environments. Key benefits of running Teradata Sovereign Cloud on Google Distributed Cloud air-gapped include:
Full isolation: Deploy Teradata in an air-gapped environment with no external connectivity— keeping classified and regulated data fully containedSecurity and compliance: Meet stringent regulatory requirements while maintaining complete audit trails and governanceHigh-performance analytics and AI at scale: Run complex queries across billions of rows and petabytes of data with predictable performance
Why it Matters
Research points to growing urgency. According to a 2026 BARC global study of 320 business and IT decision-makers, 62 percent of organizations cite data and AI in core business processes as a key driver of sovereignty requirements. A separate IBM study found that 91 percent of executives say they do not fully understand their organization’s dependencies across AI vendors, models and infrastructure. And Gartner predicts that by 2030, more than 75 percent of enterprises outside the United States will have a digital sovereignty strategy, supported by a sovereign cloud strategy.
As AI moves into mission-critical operations, sovereignty is no longer only about where data resides. Organizations must also consider where AI runs, which models are used, how enterprise information is accessed, who operates the environment, and which external technologies their AI depends on.
This is particularly relevant for governments, defense organizations, regulated industries and critical infrastructure, where data residency, privacy, jurisdiction, operational continuity or national-security requirements can limit the use of traditional public-cloud AI services.
Teradata frames sovereignty across three dimensions: data sovereignty (where data lives and who can access it), operational sovereignty (who controls the environment and whether it can operate independently), and digital sovereignty (which technologies and AI models the organization depends on). An organization can satisfy data residency requirements and still lack full sovereignty if AI processing occurs externally, external administrators can access the environment, or operations stop when public connectivity is unavailable.
Teradata’s sovereign portfolio is designed to address these requirements, bringing enterprise analytics and AI inside the boundaries that organizations control.
The Deployment Portfolio
Teradata Factory and Teradata Sovereign Cloud on Google Distributed Cloud air-gapped address different sovereignty requirements.
Teradata Factory is an integrated hardware and software rack that brings a private enterprise data and AI environment into customer-controlled on-premises infrastructure. It is designed for organizations that require direct physical control over their infrastructure and AI execution.
Teradata Sovereign Cloud on Google Distributed Cloud air-gapped provides a cloud operating model inside a sovereign boundary. The environment has no connection to the public internet and is operated by the customer. It is designed for organizations that need the operational model of cloud within a fully isolated, sovereign environment. Teradata provides the enterprise analytics layer within the air-gapped boundary, enabling organizations to support use cases such as operational reporting, mission analysis, intelligence fusion, training and simulation analytics, and defense logistics and sustainment inside the sovereign boundary.
Together, Teradata Factory and Teradata Sovereign Cloud on Google Distributed Cloud air-gapped support a hybrid approach to sovereign deployment, giving organizations the flexibility to run enterprise analytics and AI inside whichever boundary their requirements demand.
Executive Perspectives
“As AI becomes embedded in mission-critical decisions, organizations can no longer treat sovereignty as a data-location requirement. They need control over where AI runs, which models are used, who can operate the environment, and whether critical workloads can continue if external connectivity disappears. And increasingly, sovereignty is not a single location. It is an architecture that spans public cloud, sovereign cloud, and on-premises infrastructure. Teradata is uniquely built for that reality. We can run in all of those environments, connect them through Teradata Fabric without requiring data to move, and give organizations the freedom to choose the AI models and infrastructure that work for them.”
— Sumeet Arora, Chief Product Officer, Teradata
“Google Distributed Cloud is purpose-built, air-gapped infrastructure that delivers complete technical, operational and software sovereignty. By combining Google Distributed Cloud’s sovereign infrastructure with Teradata’s AI and knowledge capabilities, we are giving enterprise customers in regulated industries the ability to innovate without sacrificing control over their data.”
— Muninder Singh Sambi, VP of Product Management, Google Distributed Cloud
Availability
The expanded Teradata sovereign capabilities for Teradata Factory with AI Studio will be available in Q1 2027. Teradata Sovereign Cloud on Google Distributed Cloud air-gapped is available in Private Preview.
About Teradata
Teradata empowers enterprises to turn intelligence into autonomous action, grounding AI agents in deep business context and trusted data. As AI agents multiply, Teradata is the context foundation, governance layer, and performance backbone that companies need now. The Teradata Autonomous Knowledge Platform puts AI into production across cloud, on-premises, and hybrid environments.
Teradata Forward-Looking Statements
This press release contains “forward-looking statements” about the expectations, beliefs, plans, and intentions relating to Teradata’s sovereign portfolio. Such statements include statements regarding future product availability, capabilities, and offerings, and expected benefits to Teradata customers. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, Teradata’s results could differ materially from the results expressed or implied by the forward-looking statements made. Teradata undertakes no obligation, and does not intend to update the forward-looking statements. Factors that may cause actual results to differ materially from those in any forward-looking statements include: (i) delays and unexpected difficulties and expenses in executing the planned product capabilities and offerings, (ii) changes in the regulatory landscape related to AI and (iii) uncertainty as to whether customer adoption will justify the investments in the product capabilities and offerings. Further information on factors that could affect Teradata’s financial and other results is included in the filings Teradata makes with the Securities and Exchange Commission from time to time.
The Teradata logo is a trademark, and Teradata is a registered trademark of Teradata Corporation and/or its affiliates in the U.S. and worldwide.
MEDIA CONTACT
January Machold
January.Machold@Teradata.com
View original content:https://www.prnewswire.com/news-releases/teradata-expands-sovereign-ai-across-on-premises-and-air-gapped-cloud-environments-302913587.html
SOURCE Teradata Corporation
Technology
State Farm® and MIT AgeLab Collaborate to Study What’s Driving Distraction Behind the Wheel
Published
28 minutes agoon
October 20, 2026By
Drivefulness™ research explores the human side of a nearly $100 billion roadway risk
BLOOMINGTON, Ill., Oct. 20, 2026 /PRNewswire/ — As vehicles become more connected and technology-enabled, the challenge of distracted driving is becoming more complex across the country. The question is no longer simply what distracts drivers, but understanding why people make certain choices behind the wheel and how technology may influence those decisions.
State Farm® and the MIT AgeLab are exploring those questions through a research initiative examining driver attention, distraction, and the behaviors that influence decision-making behind the wheel. Researchers have coined the term “drivefulness” to describe a state in which a driver is safe, aware, appropriately engaged, and ready to respond to the road, while being supported in having the best possible driving experience for them.
The study brings together State Farm’s decades of experience understanding crash risk, driver behavior, and the real-world consequences of distraction with MIT AWARE initiative’s multidisciplinary research expertise in transportation safety, human factors, behavioral science, and how people interact with technology.
Distracted driving carries significant human and economic consequences. According to U.S. Department of Transportation research, distraction was involved in 29% of motor vehicle crashes studied, contributing to more than 10,000 deaths, 1.3 million injuries, and an estimated $98.2 billion in economic costs.
Understanding the relationship among driver attention, distraction, and behaviors could help inform how automakers, organizations, regulators, and insurers approach roadway safety, risk prevention, and the design of future driving experiences.
“Distracted driving is not simply about whether a driver knows what is safe or unsafe. It reflects a much more complex interaction between the driver’s state, the demands of the driving environment, and the technologies that compete for or support their attention,” said Dr. Pnina Gershon of the MIT AgeLab. “With this research, we are looking beyond individual moments of distraction to understand what drivers need to be prepared, attentive, and appropriately engaged during the driving task. That allows us to think differently about safety and about how technology, information, and interventions can support drivers before, during, and after the drive.”
Dr. Gershon is the director of the MIT AWARE initiative and a co-director of the MIT Advanced Vehicle Technology Consortium. With more than two decades of research experience, she leads work at the intersection of driving safety, human behavior, health, and human-centered AI. Her research uses sensing, real-world data, and behavioral analytics to understand human states and to develop technologies and interventions that support safer, more effective interactions between people and increasingly automated systems.
Understanding the behavior behind the risk
Drivers may know distraction is dangerous, but State Farm research shows that knowledge doesn’t always change what happens behind the wheel. Sixty-eight percent of drivers admit to engaging in distracting behaviors while driving, and 44% say they have crashed or experienced a near-crash while doing so.
Perception may be part of the challenge. Sixty-two percent of drivers believe taking their eyes off the road for two or more seconds is safe, even though a two-second glance away doubles crash risk.
“Technology is changing the driving experience, creating new opportunities to better understand and support drivers,” said Jeff Legner, technology executive at State Farm. “The more we learn about how people interact with technology behind the wheel, the better positioned we are to anticipate evolving risks, improve driver experiences and explore new approaches to accident prevention. This research can help turn those insights into meaningful ways to support drivers before, during and after every drive.”
Combining real-world risk with behavioral science
State Farm has worked to address distracted driving from multiple angles, including advocating for stronger hands-free laws, supporting cross-industry safety research and advancing technology that can help drivers better understand their behavior. That work includes telematics-based tools for customers and collaboration with companies such as Cambridge Mobile Telematics to explore how technology and data can help reduce roadway risk. The MIT AgeLab brings deep expertise in understanding the human side of a rapidly changing driving environment.
The collaboration builds on an established research relationship between State Farm and MIT, including State Farm’s participation in the MIT Advanced Vehicle Technology Consortium, which studies how drivers interact with increasingly automated and technology-enabled vehicles.
First findings expected in October
The first phase of the research is focused on establishing a deeper understanding of how people perceive and manage attention behind the wheel.
Findings from the first phase of the drivefulness study are expected later in October 2026, providing an early look at what the research is uncovering about driver attention, distraction and behavior through consumer survey findings.
The findings will help inform the next phase of drivefulness research, beginning in January 2027, on how people, technology and the driving environment can work together to support safer driving.
About State Farm®
For over 100 years, the mission of State Farm has been to help people manage the risks of everyday life, recover from the unexpected and realize their dreams. State Farm Mutual Automobile Insurance Company and its affiliates are the largest providers of auto and home insurance combined in the United States. Its more than 19,200 agent offices and over 62,000 employees serve over 96 million policies and accounts – including auto, fire, life, health, commercial policies and financial services accounts. Commercial auto insurance, along with coverage for renters, business owners, boats and motorcycles, is also available. State Farm Mutual Automobile Insurance Company is the parent of the State Farm family of companies. State Farm is ranked No. 32 on the 2025 Fortune 500 list of largest companies. For more information, please visit http://www.statefarm.com.
About the AWARE initiative at the MIT AgeLab
AWARE is an MIT research initiative focused on developing intelligent vehicle systems that can better understand drivers and support them in real-world conditions. Based at the MIT AgeLab and Center for Transportation & Logistics, AWARE brings together naturalistic driving research, advanced simulation, behavioral science, and artificial intelligence to study how driver state, behavior, and context interact across the driving journey. Its research examines areas such as distraction, fatigue, impairment, workload, automation use, driver monitoring, and human-machine interaction, with the goal of moving beyond simply detecting driver behavior toward systems that can sense, interpret, respond, and promote safer and more appropriate driver engagement. Through this work, AWARE is building the evidence and methods needed to support the next generation of adaptive, human-centered mobility technologies. For more information about AWARE, visit https://ctl.mit.edu/aware-initiative, and about the AgeLab, visit https://agelab.mit.edu/.
View original content to download multimedia:https://www.prnewswire.com/news-releases/state-farm-and-mit-agelab-collaborate-to-study-whats-driving-distraction-behind-the-wheel-302913331.html
SOURCE State Farm
Teradata Introduces New Privacy, Security, and Resiliency Capabilities as AI Forces Change in Enterprise Data Protection
Teradata Expands Sovereign AI Across On-Premises and Air-Gapped Cloud Environments
State Farm® and MIT AgeLab Collaborate to Study What’s Driving Distraction Behind the Wheel
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