- Cloud Subscription Annualized Recurring Revenue (ARR) increased
35% year-over-year to $653 million
- Subscription ARR increased 13% year-over-year to $1.16
billion
- Exceeds mid-point of guidance across all first quarter 2024
metrics
Informatica (NYSE: INFA), an enterprise cloud data management
leader, today announced financial results for its first quarter
2024, ended March 31, 2024.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20240501063501/en/
Source: Informatica
“We achieved strong first quarter results as we continue to
execute our cloud-only strategy and have become the AI-powered data
management platform for mission-critical operational workloads for
enterprises," said Amit Walia, Chief Executive Officer at
Informatica. "We continuously innovate and focus on the most
impactful initiatives to create value for our customers, partners,
and shareholders. Our powerful IDMC platform, CLAIRE AI, expanding
ecosystem, cloud modernization program, and increasing scale puts
us in a unique position to capitalize on the GenAI revolution and
deliver the modern data management stack for enterprises.”
First Quarter 2024 Financial Highlights:
- GAAP Total Revenues increased 6.3% year-over-year to $388.6
million. Total revenues included a positive impact of approximately
$1.7 million from foreign currency exchange rates (FX)
year-over-year. Adjusted for FX, total revenues increased 5.9%
year-over-year.
- GAAP Subscription Revenues increased 18% year-over-year to
$252.0 million. GAAP Cloud Subscription Revenue increased 35%
year-over-year to $151.4 million and represented 60% of
subscription revenues.
- Total ARR increased 6.7% year-over-year to $1.64 billion. Total
ARR included a negative impact of approximately $1.2 million from
FX rates year-over-year.
- Subscription ARR increased 13% year-over-year to $1.16 billion.
Subscription ARR included a negative impact of approximately $1.1
million from FX rates year-over-year.
- Cloud Subscription ARR increased 35% year-over-year to $653
million. Cloud subscription ARR included a negative impact of
approximately $0.8 million from FX rates year-over-year.
- GAAP Operating Income of $3.2 million and Non-GAAP Operating
Income of $109.3 million.
- GAAP Operating Cash Flow of $131.6 million.
- Adjusted Unlevered Free Cash Flow (after-tax) of $183.0
million. Cash paid for interest of $37.8 million.
A reconciliation of GAAP to non-GAAP financial measures has been
provided in the tables included in this press release. An
explanation of these measures is also included below under the
heading “Non-GAAP Financial Measures.”
First Quarter 2024 Business Highlights:
- Processed 91.8 trillion cloud transactions per month for the
quarter ended March 31, 2024, as compared to 54.3 trillion cloud
transactions per month in the same quarter last year, an increase
of 69% year-over-year.
- Reported 258 customers that spend more than $1 million in
subscription ARR at the end of March 31, 2024, an increase of 24%
year-over-year.
- Reported 2,007 customers that spend more than $100,000 in
subscription ARR at the end of March 31, 2024, an increase of 4%
year-over-year.
- Achieved a Cloud Subscription Net Retention Rate (NRR) of 119%
at the end-user level and 124% at the global parent level as of
March 31, 2024.
Product Innovation:
- Launched Cloud Data Access Management (CDAM), a data access and
governance solution based on Informatica's 2023 acquisition of
Privitar, now integrated into Informatica's Intelligent Data
Management Cloud (IDMC) platform.
- Launched Informatica Master Data Management (MDM) extension for
Google Cloud BigQuery, making it easier and faster to get trusted
MDM data that can be leveraged for analytics and enabling customers
to develop enterprise-grade GenAI applications with Informatica’s
IDMC, Google Vertex AI platform, BigQuery and Gemini models.
- Launched Google Cloud Point of Delivery (PoD) in Riyadh to
scale our market reach in Saudi Arabia.
Industry Recognition:
- Recognized as a Leader in the 2024 Gartner® Magic Quadrant™ for
Integration Platform as a Service, Worldwide (iPaaS). This is the
ninth time that Gartner has positioned Informatica as a Leader in
this report.
- Recognized as a Leader in the 2024 Gartner® Magic Quadrant™ for
Augmented Data Quality Solutions report. Gartner positioned
Informatica as the furthest on the Completeness of Vision axis and
highest on the Ability to Execute axis.
- Recognized as a Leader in The Forrester Wave™ Enterprise Data
Fabric, Q1 2024. Informatica received the highest score for current
offering.
- Ranked #1 in the Dresner Advisory Services 2024 Data
Engineering Market Study.
- Earned Editors’ Choice: Best Big Data Product: Data Fabric/Data
Mesh at the Eighth Annual BigDATAwire Readers’ and Editors’ Choice
Awards.
- Earned Best Practices New Product Innovation Award in the
global cloud-native data management industry from Frost &
Sullivan.
- Recognized in 2024 Constellation Research ShortList™ for iPaaS
for the ninth consecutive year.
- Recognized in 2024 Constellation Research ShortList™ for Master
Data Management for the seventh consecutive year.
- Recognized as a Full Spectrum Enterprise Data Integration
vendor with an Advanced rating, and overall leader of the space in
Enterprise Contribution Ranking report for Enterprise Data
Integration 2024 by McKnight Consulting Group.
November 2023 Restructuring Plan:
- In conjunction with the previously announced November 2023
restructuring plan (the “November Plan”), the Company recorded
restructuring charges of $4.4 million in the first quarter 2024.
The November Plan is intended to further streamline the Company’s
cost structure as a direct result of its cloud-only,
consumption-driven (“CoCd”) strategy announced in January
2023.
- The Company expects to record approximately $4.0 million of
additional restructuring charges for the remainder of full-year
2024.
Upcoming Events:
- From May 20-23, 2024, the Company will host customers and
partners in Las Vegas, NV, at Informatica World 2024, where Cloud,
Data and AI come together.
- On May 20, 2024, the Company is scheduled to participate in a
fireside chat discussion at the J.P. Morgan 52nd Annual Global
Technology, Media & Telecom Conference in Boston, MA, at 2:30
p.m. Eastern Time. A live webcast and replay will be available on
the Company's Investor Relations website.
- On May 29, 2024, the Company is scheduled to host investor
meetings at the Jefferies Software Conference in Newport Coast,
CA.
- On June 4, 2024, the Company is scheduled to participate in a
fireside chat discussion at the Baird 2024 Global Consumer,
Technology, & Services Conference in New York, NY, at 10:50
a.m. Eastern Time. A live webcast and replay will be available on
the Company's Investor Relations website.
- On June 5, 2024, the Company is scheduled to participate in a
fireside chat discussion at the BofA Securities 2024 Global
Technology Conference in San Francisco, CA, at 10 a.m. Pacific
Time. A live webcast and replay will be available on the Company's
Investor Relations website.
Second Quarter and Full-Year 2024 Financial Outlook
The Company provides the financial guidance below based on
current market conditions and expectations and it is subject to
various important cautionary factors described below. Guidance
includes the impact from macroeconomic conditions and expected
foreign exchange headwinds versus the prior year comparable
periods.
Based on information available as of May 1, 2024, guidance for
the second quarter of 2024 is as follows:
Second Quarter 2024 Ending June 30, 2024:
- GAAP Total Revenues are expected to be in the range of $394
million to $410 million, representing approximately 6.9%
year-over-year growth at the midpoint of the range.
- Subscription ARR is expected to be in the range of $1.168
billion to $1.188 billion, representing approximately 13.0%
year-over-year growth at the midpoint of the range.
- Cloud Subscription ARR is expected to be in the range of $687
million to $697 million, representing approximately 35.0%
year-over-year growth at the midpoint of the range.
- Non-GAAP Operating Income is expected to be in the range of
$107 million to $119 million, representing approximately 29.1%
year-over-year growth at the midpoint of the range.
Based on information available as of May 1, 2024, the Company
reaffirms previously provided guidance for the full-year 2024, as
follows:
Full-Year 2024 Ending December 31, 2024:
- GAAP Total Revenues are expected to be in the range of $1.685
billion to $1.705 billion, representing approximately 6.3%
year-over-year growth at the midpoint of the range.
- Total ARR is expected to be in the range of $1.718 billion to
$1.772 billion, representing approximately 7.3% year-over-year
growth at the midpoint of the range.
- Subscription ARR is expected to be in the range of $1.261
billion to $1.295 billion, representing approximately 12.8%
year-over-year growth at the midpoint of the range.
- Cloud Subscription ARR is expected to be in the range of $826
million to $840 million, representing approximately 35.1%
year-over-year growth at the midpoint of the range.
- Non-GAAP Operating Income is expected to be in the range of
$533 million to $553 million, representing approximately 17.5%
year-over-year growth at the midpoint of the range.
- Adjusted Unlevered Free Cash Flow (after-tax) is expected to be
in the range of $535 million to $555 million, representing
approximately 20.8% year-over-year growth at the midpoint of the
range.
The Company is assuming constant FX rates for the year based on
the rates at the start of the planning period. For reference
purposes, the assumed FX rates for our top four currencies in
full-year 2024 are as follows:
Currency
Planned Rate (as of
1/1/24)
Forecast Rate (as of
4/1/24)
EUR/$
1.10
1.08
GBP/$
1.27
1.26
$/CAD
1.32
1.35
$/JPY
141
151
Using the forecast foreign exchange rate assumptions noted
above, the Company has incorporated the following FX impact into
2024 guidance:
Q2 2024
Full-Year 2024
Total Revenues
~$1.0m negative impact y/y
~$3.0m negative impact y/y
Total ARR
~$1.0m negative impact y/y
~$3.0m negative impact y/y
Subscription ARR
~$1.0m negative impact y/y
~$2.0m negative impact y/y
Cloud Subscription ARR
~$1.0m negative impact y/y
~$2.0m negative impact y/y
In addition to the above guidance, the Company is also providing
second quarter and full-year 2024 cash paid for interest estimates
for modeling purposes. For the second quarter 2024, we estimate
cash paid for interest to be approximately $39 million. For the
full-year 2024, we estimate cash paid for interest to be
approximately $152 million, using forward rates based on a 1-month
SOFR (Secured Overnight Financing Rate).
In addition to the above guidance, the Company is also providing
a second quarter and full-year 2024 weighted-average number of
basic and diluted share estimates for modeling purposes. For the
second quarter 2024, we expect basic weighted-average shares
outstanding to be approximately 301 million shares and diluted
weighted-average shares outstanding to be approximately 313 million
shares. For the full-year 2024, we expect basic weighted-average
shares outstanding to be approximately 302 million shares and
diluted weighted-average shares outstanding to be approximately 315
million shares.
Reconciliation of Non-GAAP Operating Income and Adjusted
Unlevered Free Cash Flow after-tax guidance to the most directly
comparable GAAP measures is not available without unreasonable
effort, as certain items cannot be reasonably predicted because of
their high variability, complexity, and low visibility. In
particular, the measures and effects of our stock-based
compensation expense specific to our equity compensation awards and
employer payroll tax-related items on employee stock transactions
are directly impacted by the timing of employee stock transactions
and unpredictable fluctuations in our stock price, which we expect
to have a significant impact on our future GAAP financial
results.
Webcast and Conference Call
A conference call to discuss Informatica’s first quarter 2024
financial results and financial outlook for the second quarter and
full-year 2024 is scheduled for 2:00 p.m. Pacific Time today. To
participate, please dial 1-833-470-1428 from the U.S. or
1-404-975-4839 from international locations. The conference
passcode is 740918. A live webcast of the conference call will be
available on the Investor Relations section of Informatica’s
website at investors.informatica.com where presentation materials
will also be posted prior to the conference call. A replay will be
available online approximately two hours following the live call
for a period of 30 days.
Forward-Looking Statements
This press release and the related conference call and webcast
contain forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. These statements
may relate to, but are not limited to, expectations of future
operating results or financial performance, including our GAAP and
non-GAAP guidance for the second quarter and 2024 fiscal year, the
effect of foreign currency exchange rates, the effect of
macroeconomic conditions, management’s plans, priorities,
initiatives, and strategies, our efforts to reduce operating
expenses and adjust cash flows in light of current business needs
and priorities, our expected costs related to restructuring and
related charges, including the timing of such charges, the impact
of the restructuring and related charges on our business, results
of operations and financial condition, plans regarding our stock
repurchase authorization, management's estimates and expectations
regarding growth of our business, the potential benefits realized
by customers by the use of artificial intelligence and machine
learning in our products and the potential benefits realized by
customers from our cloud modernization programs, market, and
partnerships. Forward-looking statements are inherently subject to
risks and uncertainties, some of which cannot be predicted or
quantified. In some cases, you can identify forward-looking
statements because they contain words such as “anticipate,”
“believe,” “contemplate,” “continue,” “could,” “estimate,”
“expect,” “intend,” “may,” “plan,” “potential,” “predict,”
“project,” “should,” “target,” “toward,” “will,” or “would,” or the
negative of these words or other similar terms or expressions. You
should not put undue reliance on any forward-looking statements.
Forward-looking statements should not be read as a guarantee of
future performance or results and will not necessarily be accurate
indications of the times at, or by, which such performance or
results will be achieved, if at all.
Forward-looking statements are based on information available at
the time those statements are made and are based on current
expectations, estimates, forecasts, and projections as well as the
beliefs and assumptions of management as of that time with respect
to future events. These statements are subject to risks and
uncertainties, many of which involve factors or circumstances that
are beyond our control, that could cause actual performance or
results to differ materially from those expressed in or suggested
by the forward-looking statements. In light of these risks and
uncertainties, the forward-looking events and circumstances
discussed in this press release may not occur and actual results
could differ materially from those anticipated or implied in the
forward-looking statements. These risks, uncertainties,
assumptions, and other factors include, but are not limited to,
those related to our business and financial performance, the
effects of adverse global macroeconomic conditions and geopolitical
uncertainty, the effects of public health crises on our business,
results of operations, and financial condition, our ability to
attract and retain customers, our ability to develop new products
and services and enhance existing products and services, our
ability to respond rapidly to emerging technology trends, our
ability to execute on our business strategy, including our strategy
related to the Informatica IDMC platform and key partnerships, our
ability to increase and predict customer consumption of our
platform, our ability to compete effectively, and our ability to
manage growth.
Further information on these and additional risks,
uncertainties, and other factors that could cause actual outcomes
and results to differ materially from those included in or
contemplated by the forward-looking statements contained in this
release are included under the caption “Risk Factors” and elsewhere
in our Annual Report on Form 10-K that was filed for the fiscal
year ended December 31, 2023, and other filings and reports we make
with the Securities and Exchange Commission from time to time,
including our Quarterly Report on Form 10-Q that will be filed for
the first quarter ended March 31, 2024. All forward-looking
statements contained herein are based on information available to
us as of the date hereof and we do not assume any obligation to
update these statements as a result of new information or future
events.
Non-GAAP Financial Measures and Key Business Metrics
We review several operating and financial metrics, including the
following unaudited non-GAAP financial measures and key business
metrics to evaluate our business, measure our performance, identify
trends affecting our business, formulate business plans, and make
strategic decisions:
Non-GAAP Financial Measures
In addition to our results determined in accordance with U.S.
generally accepted accounting principles (GAAP), we believe the
following non-GAAP measures are useful in evaluating our operating
performance. We use the following non-GAAP financial measures to
evaluate our ongoing operations and for internal planning and
forecasting purposes. We believe that these non-GAAP financial
measures, when taken collectively, may be helpful to investors
because they provide consistency and comparability with past
financial performance. However, non-GAAP financial measures are
presented for supplemental informational purposes only, have
limitations as an analytical tool, and should not be considered in
isolation or as a substitute for financial information presented in
accordance with GAAP. In addition, other companies, including
companies in our industry, may calculate similarly titled non-GAAP
measures differently or may use other measures to evaluate their
performance, all of which could reduce the usefulness of our
non-GAAP financial measures as tools for comparison. A
reconciliation is provided below for our non-GAAP financial
measures to the most directly comparable financial measures stated
in accordance with GAAP. Investors are encouraged to review the
related GAAP financial measures and the reconciliation of these
non-GAAP financial measures to their most directly comparable GAAP
financial measures, and not to rely on any single financial measure
to evaluate our business.
Non-GAAP Income from Operations and Non-GAAP Net Income
exclude the effect of stock-based compensation expense-related
charges, amortization of acquired intangibles, equity compensation
related payments, expenses associated with acquisitions, and
expenses associated with restructuring efforts, and are adjusted
for income tax effects. We believe the presentation of operating
results that exclude these non-cash or non-recurring items provides
useful supplemental information to investors and facilitates the
analysis of our operating results and comparison of operating
results across reporting periods.
Adjusted EBITDA represents GAAP net income (loss) as
adjusted for income tax benefit (expense), interest income,
interest expense, loss on debt refinancing, other income (expense)
net, stock-based compensation, amortization of intangibles,
restructuring, expenses associated with acquisitions, and
depreciation. We believe adjusted EBITDA is an important metric for
understanding our business to assess our relative profitability
adjusted for balance sheet debt levels.
Adjusted Unlevered Free Cash Flow (after-tax) represents
operating cash flow less purchases of property and equipment and is
adjusted for interest payments, equity compensation payments, and
restructuring costs (including payments for impaired leases). We
believe this measure provides useful supplemental information to
investors because it is an indicator of our liquidity over the long
term needed to maintain and grow our core business operations. We
also provide actual and forecast cash interest expense to aid in
the calculation of adjusted free cash flow (after-tax).
Key Business Metrics
Annual Recurring Revenue ("ARR") represents the expected
annual billing amounts from all active maintenance and subscription
agreements. ARR is calculated based on the contract Monthly
Recurring Revenue (MRR) multiplied by 12. MRR is calculated based
on the accounting adjusted total contract value divided by the
number of months of the agreement based on the start and end dates
of each contracted line item. The aggregate ARR calculated at the
end of each reported period represents the value of all contracts
that are active as of the end of the period, including those
contracts that have expired but are still under negotiation for
renewal. We typically allow for a grace period of up to 6 months
past the original contract expiration quarter during which we
engage in the renewal process before we report the contract as
lost/inactive. This grace-period ARR amount has been less than 2%
of the reported ARR in each period presented. If there is an actual
cancellation of an ARR contract, we remove that ARR value at that
time. We believe ARR is an important metric for understanding our
business since it tracks the annualized cash value collected over a
12-month period for all of our recurring contracts, irrespective of
whether it is a maintenance contract on a perpetual license, a
ratable cloud contract, or a self-managed term-based subscription
license. ARR should be viewed independently of total revenue and
deferred revenue related to our software and services contracts and
is not intended to be combined with or to replace either of those
items.
Cloud Subscription Annual Recurring Revenue ("Cloud
Subscription ARR") represents the portion of ARR that is
attributable to our hosted cloud contracts. We believe that Cloud
Subscription ARR is a helpful metric for understanding our business
since it represents the approximate annualized cash value collected
over a 12-month period for all of our recurring Cloud contracts.
Cloud Subscription ARR is a subset of our overall Subscription ARR,
and by providing this breakdown of Cloud Subscription ARR, it
provides visibility on the size and growth rate of our Cloud
Subscription ARR within our overall Subscription ARR. Cloud
Subscription ARR should be viewed independently of subscription
revenue and deferred revenue related to our subscription contracts
and is not intended to be combined with or to replace either of
those items.
Subscription Annual Recurring Revenue ("Subscription
ARR") represents the portion of ARR only attributable to our
subscription contracts. Subscription ARR includes Cloud
Subscription ARR and Self-managed Subscription Annual Recurring
Revenue. We believe that Subscription ARR is a helpful metric for
understanding our business since it represents the approximate
annualized cash value collected over a 12-month period for all of
our recurring subscription contracts. Subscription ARR excludes
maintenance contracts on our perpetual licenses. Subscription ARR
should be viewed independently of subscription revenue and deferred
revenue related to our subscription contracts and is not intended
to be combined with or to replace either of those items.
Maintenance Annual Recurring Revenue ("Maintenance ARR")
represents the portion of ARR only attributable to our maintenance
contracts. We believe that Maintenance ARR is a helpful metric for
understanding our business since it represents the approximate
annualized cash value collected over a 12-month period for all our
maintenance contracts. Maintenance ARR includes maintenance
contracts supporting our perpetual licenses. Maintenance ARR should
be viewed independently of maintenance revenue and deferred revenue
related to our maintenance contracts and is not intended to be
combined with or to replace either of those items. As we continue
to shift our focus from perpetual to cloud, we expect Maintenance
ARR will decrease in future quarters.
Cloud Subscription Net Retention Rate ("Cloud
Subscription NRR") compares the contract value for Cloud
Subscription ARR from the same set of customers at the end of a
period compared to the prior year. We treat divisions, segments or
subsidiaries inside companies with us as separate customers when
defining the End-user level. We treat divisions, segments, or
subsidiaries of a company as one customer when defining the Global
Parent level. Global Parent customers are determined using Dun
& Bradstreet GDUNS identifiers. To calculate our Cloud
Subscription NRR for a particular period, we first establish the
Cloud Subscription ARR value at the end of the prior year period.
We subsequently measure the Cloud Subscription ARR value at the end
of the current period from the same cohort of customers. Cloud
Subscription NRR is then calculated by dividing the aggregate Cloud
Subscription ARR in the current period by the prior year period. An
increase in the Cloud Subscription NRR occurs as a result of price
increases on existing contracts, higher consumption of existing
products, and sales of additional new subscription products to
existing customers exceeding losses from subscription contracts due
to price decreases, usage decreases and cancellations. We believe
Cloud Subscription NRR is an important metric for understanding our
business since it measures the rate at which we are able to sell
additional products into our cloud subscription customer base.
Subscription Net Retention Rate ("Subscription Net
Retention" NRR) compares the contract value for Subscription ARR
from the same set of customers at the end of a period compared to
the prior year. We treat divisions, segments, or subsidiaries
inside companies as separate customers when defining the End-user
level. To calculate our Subscription NRR for a particular period,
we first establish the Subscription ARR value at the end of the
prior-year period. We subsequently measure the Subscription ARR
value at the end of the current period from the same cohort of
customers. The net retention rate is then calculated by dividing
the aggregate Subscription ARR in the current period by the
prior-year period. An increase in the Subscription NRR occurs as a
result of price increases on existing contracts, higher consumption
of existing products, and sales of additional new subscription
products to existing customers exceeding losses from subscription
contracts due to price decreases, usage decreases and
cancellations. Our Cloud Subscription NRR continues to outpace
total Subscription NRR as self-managed subscription customers are
moving to cloud offerings which is net neutral to Subscription NRR
but will be additive to Cloud Subscription NRR for the same cohort
of customers.
Supplemental Information
Subscription revenue disaggregation:
- Cloud subscription revenue represents revenues from
cloud subscription offerings, which deliver applications and
infrastructure technologies via cloud-based deployment models for
which we develop functionality, provide unspecified updates and
enhancements, host, manage, upgrade, and support, and that
customers access by entering into a subscription agreement with us
for a stated period.
- Self-managed subscription license revenue represents
revenues from customers and partners contracted to use our
self-managed software during a subscription term.
- Self-managed subscription support and other revenue
represents revenues generated primarily through the sale of license
support contracts sold together with the self-managed subscription
license purchased by the customer. Self-managed subscription
license support contracts provide customers with rights to
unspecified software product upgrades, maintenance releases and
patches released during the term of the support period and include
internet access to technical content, as well as internet and
telephone access to technical support personnel.
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Forrester and Forrester Wave™ are trademarks of Forrester Research,
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About Informatica
Informatica (NYSE: INFA), an Enterprise Cloud Data Management
leader, brings data and AI to life by empowering businesses to
realize the transformative power of their most critical assets. We
have created a new category of software, the Informatica
Intelligent Data Management Cloud™ (IDMC). IDMC is an end-to-end
data management platform, powered by CLAIRE AI, that connects,
manages and unifies data across any multi-cloud or hybrid system,
democratizing data and enabling enterprises to modernize and
advance their business strategies. Customers in approximately 100
countries, including more than 80 of the Fortune 100, rely on
Informatica to drive data-led digital transformation. Informatica.
Where data and AI come to life.
INFORMATICA INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(in thousands, except per
share data)
(unaudited)
Three Months Ended March
31,
2024
2023
(unaudited)
Revenues:
Subscriptions
$
251,977
$
213,922
Perpetual license
21
806
Software revenue
251,998
214,728
Maintenance and professional services
136,609
150,703
Total revenues
388,607
365,431
Cost of revenues:
Subscriptions
46,838
35,684
Perpetual license
5
180
Software costs
46,843
35,864
Maintenance and professional services
33,878
43,159
Amortization of acquired technology
1,034
2,874
Total cost of revenues
81,755
81,897
Gross profit
306,852
283,534
Operating expenses:
Research and development
79,654
82,039
Sales and marketing
137,433
128,538
General and administrative
50,446
41,360
Amortization of intangible assets
31,739
34,291
Restructuring
4,355
27,253
Total operating expenses
303,627
313,481
Income (loss) from operations
3,225
(29,947
)
Interest income
13,407
7,583
Interest expense
(39,097
)
(35,051
)
Other income, net
6,335
630
Loss before income taxes
(16,130
)
(56,785
)
Income tax (benefit) expense
(25,464
)
59,569
Net income (loss)
$
9,334
$
(116,354
)
Net income (loss) per share attributable
to Class A and Class B-1 common stockholders:
Basic
$
0.03
$
(0.41
)
Diluted
$
0.03
$
(0.41
)
Weighted-average shares used in computing
net income (loss) per share:
Basic
296,897
284,886
Diluted
312,499
284,886
INFORMATICA INC.
CONSOLIDATED BALANCE
SHEETS
(in thousands, except par
value data)
(Unaudited)
March 31,
December 31,
2024
2023
Assets
Current assets:
Cash and cash equivalents
$
855,068
$
732,443
Short-term investments
258,219
259,828
Accounts receivable, net of allowances of
$4,669 and $4,414, respectively
274,724
500,068
Contract assets, net
85,953
79,864
Prepaid expenses and other current
assets
226,072
180,383
Total current assets
1,700,036
1,752,586
Property and equipment, net
147,572
149,266
Operating lease right-of-use-assets
55,136
57,799
Goodwill
2,349,119
2,361,643
Customer relationships intangible asset,
net
639,078
669,781
Other intangible assets, net
13,074
17,393
Deferred tax assets
15,322
15,237
Other assets
165,577
178,377
Total assets
$
5,084,914
$
5,202,082
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
20,084
$
18,050
Accrued liabilities
52,706
61,194
Accrued compensation and related
expenses
77,956
167,427
Current operating lease liabilities
15,701
16,411
Current portion of long-term debt
18,750
18,750
Income taxes payable
2,916
4,305
Deferred revenue
708,568
767,244
Total current liabilities
896,681
1,053,381
Long-term operating lease liabilities
43,255
46,003
Long-term deferred revenue
13,502
19,482
Long-term debt, net
1,802,033
1,805,960
Deferred tax liabilities
21,817
22,425
Long-term income taxes payable
37,840
37,679
Other liabilities
6,971
4,554
Total liabilities
2,822,099
2,989,484
Stockholders’ equity:
Class A common stock; $0.01 par value per
share; 2,000,000 shares authorized as of March 31, 2024 and
December 31, 2023, respectively; 255,502 and 250,874 shares issued
and outstanding as of March 31, 2024 and December 31, 2023,
respectively
2,556
2,510
Class B-1 common stock; $0.01 par value
per share; 200,000 shares authorized as of March 31, 2024 and
December 31, 2023, respectively; 44,050 and 44,050 shares issued
and outstanding as of March 31, 2024 and December 31, 2023,
respectively
440
440
Class B-2 common stock; $0.00001 par value
per share, 200,000 shares authorized as of March 31, 2024 and
December 31, 2023, respectively; 44,050 and 44,050 shares issued
and outstanding as of March 31, 2024 and December 31, 2023,
respectively
—
—
Additional paid-in-capital
3,601,372
3,540,502
Accumulated other comprehensive loss
(42,391
)
(22,370
)
Accumulated deficit
(1,299,162
)
(1,308,484
)
Total stockholders’ equity
2,262,815
2,212,598
Total liabilities and stockholders’
equity
$
5,084,914
$
5,202,082
INFORMATICA INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended March
31,
2024
2023
Operating activities:
Net income (loss)
$
9,334
$
(116,354
)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization
2,193
4,198
Non-cash operating lease costs
3,902
5,350
Stock-based compensation
64,101
50,342
Deferred income taxes
(831
)
11,477
Amortization of intangible assets and
acquired technology
32,773
37,165
Amortization of debt issuance costs
887
847
Amortization of investment discount, net
of premium
(1,440
)
(851
)
Changes in operating assets and
liabilities:
Accounts receivable
220,708
197,579
Prepaid expenses and other assets
(233
)
10,983
Accounts payable and accrued
liabilities
(97,023
)
(118,076
)
Income taxes payable
(43,507
)
22,184
Deferred revenue
(59,222
)
(34,962
)
Net cash provided by operating
activities
131,642
69,882
Investing activities:
Purchases of property and equipment
(390
)
(1,224
)
Purchases of investments
(146,997
)
(30,297
)
Maturities of investments
149,939
80,500
Other
1,878
—
Net cash provided by investing
activities
4,430
48,979
Financing activities:
Payment of debt
(4,688
)
(4,688
)
Proceeds from issuance of common stock
under employee stock purchase plan
13,797
16,131
Payments for dividends related to Class
B-2 shares
(12
)
(12
)
Payments for taxes related to net share
settlement of equity awards
(45,843
)
—
Proceeds from issuance of shares under
equity plans
28,861
3,481
Net cash (used in) / provided by financing
activities
(7,885
)
14,912
Effect of foreign exchange rate changes on
cash and cash equivalents
(5,562
)
1,255
Net increase in cash and cash
equivalents
122,625
135,028
Cash and cash equivalents at beginning of
period
732,443
497,879
Cash and cash equivalents at end of
period
$
855,068
$
632,907
Supplemental disclosures:
Cash paid for interest
$
37,782
$
34,482
Cash paid for income taxes, net of
refunds
$
18,873
$
25,907
INFORMATICA INC.
NON-GAAP FINANCIAL MEASURES
AND KEY BUSINESS METRICS
(in thousands, except per
share data)
(unaudited)
RECONCILIATIONS OF GAAP TO
NON-GAAP
Reconciliation of GAAP net income
(loss) to Non-GAAP net income
Three Months Ended March
31,
2024
2023
(in thousands)
GAAP net income (loss)
$
9,334
$
(116,354
)
Stock-based compensation
64,101
50,342
Amortization of intangibles
32,773
37,165
Restructuring
4,355
27,253
Acquisition related costs
4,802
—
Income tax effect
(46,141
)
46,235
Non-GAAP net income
$
69,224
$
44,641
Net income (loss) per share:
Net income (loss) per share—basic
$
0.03
$
(0.41
)
Net income (loss) per share—diluted
$
0.03
$
(0.41
)
Non-GAAP net income per share—basic
$
0.23
$
0.16
Non-GAAP net income per share—diluted
$
0.22
$
0.15
Share count (in thousands):
Weighted-average shares used in computing
net income (loss) per share—basic
296,897
284,886
Weighted-average shares used in computing
net income (loss) per share—diluted
312,499
284,886
Weighted-average shares used in computing
Non-GAAP net income per share—basic
296,897
284,886
Weighted-average shares used in computing
Non-GAAP net income per share—diluted
312,499
288,632
Reconciliation of GAAP income (loss)
from operations to Non-GAAP income from operations
Three Months Ended March
31,
2024
2023
(in thousands)
GAAP income (loss) from operations
$
3,225
$
(29,947
)
Stock-based compensation
64,101
50,342
Amortization of intangibles
32,773
37,165
Restructuring
4,355
27,253
Acquisition related costs
4,802
—
Non-GAAP income from operations
$
109,256
$
84,813
INFORMATICA INC.
NON-GAAP FINANCIAL MEASURES
AND KEY BUSINESS METRICS
Adjusted EBITDA Reconciliation
Three Months Ended
March 31,
Trailing Twelve
Months ("TTM")
Ended March 31,
2024
2023
2024
(in thousands)
(in thousands)
GAAP net income (loss)
$
9,334
$
(116,354
)
$
405
Income tax (benefit) expense
(25,464
)
59,569
(36,922
)
Interest income
(13,407
)
(7,583
)
(45,510
)
Interest expense
39,097
35,051
155,442
Other income, net
(6,335
)
(630
)
(6,680
)
Stock-based compensation
64,101
50,342
231,858
Amortization of intangibles
32,773
37,165
144,888
Restructuring
4,355
27,253
36,857
Acquisition related costs
4,802
—
6,386
Depreciation
2,218
4,200
15,101
Adjusted EBITDA
$
111,474
$
89,013
$
501,825
Adjusted Unlevered Free Cash
Flows
Three Months Ended March
31,
2024
2023
(in thousands, except
percentages)
Total GAAP Revenue
388,607
365,431
Net cash provided by operating
activities
131,642
69,882
Less: Purchases of property, plant, and
equipment
(390
)
(1,224
)
Add: Equity compensation payments
—
68
Add: Restructuring costs
13,946
20,144
Adjusted Free Cash Flow (after-tax)(1)
145,198
88,870
Add: Cash paid for interest
37,782
34,482
Adjusted Unlevered Free Cash Flows
(after-tax)(1)
$
182,980
$
123,352
Adjusted Free Cash Flow (after-tax)
margin(1)
37
%
24
%
Adjusted Unlevered Free Cash Flows
(after-tax) margin(1)
47
%
34
%
(1)
Includes cash tax payments of $18.9
million and $25.9 million for the three months ended March 31, 2024
and 2023, respectively.
Key Business Metrics
March 31,
2024
2023
(in thousands, except
percentages)
Cloud Subscription Annual Recurring
Revenue
$
652,545
$
483,294
Self-managed Subscription Annual Recurring
Revenue
505,148
537,612
Subscription Annual Recurring Revenue
1,157,693
1,020,906
Maintenance Annual Recurring Revenue on
Perpetual Licenses
478,801
512,497
Total Annual Recurring Revenue
$
1,636,494
$
1,533,403
Subscription Net Retention Rate (End-user
level)
105
%
110
%
Cloud Subscription Net Retention Rate
(End-user level)
119
%
118
%
Cloud Subscription Net Retention Rate
(Global Parent level)
124
%
124
%
INFORMATICA INC.
SUPPLEMENTAL
INFORMATION
Additional Business Metrics
March 31,
2024
2023
Maintenance Renewal Rate
94
%
96
%
Subscription Renewal Rate
91
%
93
%
Customers that spend more than $1 million
in Subscription Annual Recurring Revenue(1)
258
208
Customers that spend more than $100,000 in
Subscription Annual Recurring Revenue(2)
2,007
1,921
Cloud transactions processed per month in
trillions(3)
91.8
54.3
(1)
Total number of customers that spend more
than $1 million in Subscription Annual Recurring Revenue.
(2)
Total number of customers that spend more
than $100,000 in Subscription Annual Recurring Revenue.
(3)
Total number of cloud transactions
processed on our platform per month in trillions, which measures
data processed.
Disaggregation of Subscription
Revenues
Three Months Ended March
31,
2024
2023
(in thousands)
Revenues:
Cloud subscription
$
151,438
$
111,778
Self-managed subscription license
51,948
50,549
Self-managed subscription support and
other
48,591
51,595
Subscription revenues
$
251,977
$
213,922
Net Debt Reconciliation
March 31,
December 31
2024
2023
(in millions)
Dollar Term Loan
$
1,838
$
1,842
Less: Cash, cash equivalents, and
short-term investments
(1,113
)
(992
)
Total net debt
$
725
$
850
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240501063501/en/
Investor Relations: Victoria Hyde-Dunn
vhydedunn@informatica.com
Public Relations: pr@informatica.com
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