REDWOOD CITY, Calif.--(BUSINESS WIRE)--Informatica from Salesforce, a leader in enterprise AI- powered cloud data management, today announced it has been named a Leader in the Gartner® Magic Quadrantâ"¢ for Data and Analytics Governance Platforms. The evaluation was based on criteria which analyzed the company's overall Completeness of Vision and Ability to Execute. To be included in this Gartner evaluation, Data & Analytics Governance platforms must meet requirements spanning across general a. ...

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Informatica from Salesforce, a leader in enterprise AI- powered cloud data management, today announced that Gartner, Inc. has once again recognized the company as a Leader in the 2025 Gartner® Magic Quadrant™ for Data Integration Tools report. Additionally, Gartner positioned Informatica as the furthest on the Completeness of Vision axis for the 12th consecutive year. Gartner states, "By 2027, AI assistants and AI-enhanced workflows within data integration. ...

Core Insights - Robbins Geller Rudman & Dowd LLP is investigating potential violations of U.S. federal securities laws involving Informatica Inc., focusing on whether the company and its executives made false or misleading statements or failed to disclose material information to investors [1] Company Overview - Informatica develops an artificial intelligence-powered platform that connects, manages, and unifies data across multi-vendor, multi-cloud, and hybrid systems [3] Financial Performance - On February 13, 2025, Informatica reported its fourth quarter of 2024 and fiscal 2024 financial results, missing financial projections. The company experienced a 3.8% year-over-year decrease in GAAP total revenues, a 2% year-over-year decrease in GAAP subscription revenues, and a 3.9% year-over-year decrease in non-GAAP operating income at the midpoint of the range. Following this announcement, Informatica's share price fell by more than 21% [4]

The must-haves for building a market-leading business include vision, talent, culture, product innovation and customer focus. But what’s the secret to success with a merger or acquisition? I was asked about this in the wake of Salesforce’s recently completed $8 billion acquisition of Informatica. In part, I believe that people are paying attention because deal-making is up in 2025. M&A volume reached $2.2 trillion in the first half of the year, a 27% increase compared to a year ago, according to JP Morgan ...

Core Insights - The leasing industry is facing increasingly complex data management demands, leading to the emergence of various big data governance platforms that provide robust solutions [2][3][6] - These platforms enhance data organization efficiency, ensure data consistency and accuracy, and facilitate seamless data integration across departments, thereby promoting overall business collaboration [2][3][4] - Innovative technologies such as intelligent analytics enable real-time access to critical business insights, significantly improving decision-making efficiency during digital transformation [2][4][7] Data Management Solutions - The solutions offered by companies like Jiangsu New and Huawei Cloud FusionInsight MDM focus on comprehensive data classification and management, ensuring data accuracy and consistency through effective quality control measures [3][4] - IBM InfoSphere MDM and Informatica provide strong data integration capabilities, allowing enterprises to manage data from multiple sources and enhance data availability and accuracy [5][6] - The MDG (Master Data Governance) solution from SAP emphasizes master data management, quality control, and compliance checks, significantly reducing data error rates by over 30% for 85% of surveyed companies [4] Industry Trends - The importance of data governance in the leasing industry is growing, with companies needing to select appropriate big data governance platforms to achieve efficient management [7][8] - The platforms are designed to support both large enterprises and small to medium-sized companies, helping streamline processes and ensure compliance with industry regulations [8] - Successful implementation of data governance strategies can lead to improved data accuracy and reduced time costs during digital transformation [7][8]

Core Insights - Informatica from Salesforce has been recognized as a Leader in the 2025 Gartner® Magic Quadrant™ Metadata Management Solutions report, highlighting its strong position in the industry [1] Company Summary - The recognition is based on Informatica's "Ability to Execute" and "Completeness of Vision," indicating its robust capabilities in metadata management [1]

Revenue Growth - Subscription revenue increased to $891.7 million for the nine months ended September 30, 2025, compared to $804.2 million for the same period in 2024, reflecting a growth of approximately 10.5%[163] - Cloud Subscription Annual Recurring Revenue (ARR) increased to $968,623,000 in 2025 from $747,811,000 in 2024, representing a growth of 29.5%[186] - Total Annual Recurring Revenue reached $1,747,823,000 in 2025, up from $1,681,776,000 in 2024, marking an increase of 3.9%[186] - Total revenues increased to $439.2 million during the three months ended September 30, 2025, a 4% increase from $422.5 million in the same period of 2024[220] - Subscription revenues rose to $320.7 million (73% of total revenues) for the three months ended September 30, 2025, an 11% increase from $287.9 million (68% of total revenues) in 2024[222] - Cloud subscription revenues increased by 31% to $230.4 million (52% of total revenues) for the three months ended September 30, 2025, compared to $175.8 million (42% of total revenues) in 2024[228] - Total revenues for the nine months ended September 30, 2025, reached $1,250.4 million, a 3% increase from $1,211.7 million in the same period of 2024[221] Customer Retention and Migration - Cloud Subscription Net Revenue Retention (NRR) was 120% for the nine months ended September 30, 2025, compared to 126% for the same period in 2024[179] - The company signed agreements to migrate approximately 16.6% of its installed base maintenance and self-managed on-premises revenue to its cloud solution[173] - Cloud Subscription Net Retention Rate decreased to 120% in 2025 from 126% in 2024, indicating a decline in customer retention[186] - The company expects a continued decrease in Self-managed Subscription ARR and Maintenance ARR as it shifts focus from perpetual licenses to cloud offerings[192][194] - The company expects self-managed subscription support and maintenance revenues to continue to decrease gradually as migrations to cloud subscription offerings persist[233][236] Expenses and Cost Management - Adjusted EBITDA for the three months ended September 30, 2025, was $164,832,000, compared to $154,789,000 in 2024, reflecting a year-over-year increase of 6.7%[199] - Total operating expenses for the three months ended September 30, 2025, were $297.3 million, a slight increase from $289.9 million in 2024[216] - Research and development expenses are anticipated to decrease as a percentage of total revenues due to a focus on cloud subscription offerings[208] - Sales and marketing expenses are also expected to decline as a percentage of total revenues, aligning with the company's cloud-only strategy[209] - Research and development expenses increased to $85.4 million (19% of total revenues) for the three months ended September 30, 2025, compared to $80.3 million (19% of total revenues) for the same period in 2024, an increase of $5.1 million (6%)[249] - Sales and marketing expenses increased to $139.5 million (32% of total revenues) during the three months ended September 30, 2025, compared to $133.5 million (32% of total revenues) during the same period in 2024, an increase of $6.0 million (5%) due to higher personnel-related expenses[251] Profitability and Income - GAAP net income for the three months ended September 30, 2025, was $3,998,000, a significant improvement from a net loss of $13,985,000 in 2024[199] - Income from operations increased to $60.9 million for the three months ended September 30, 2025, compared to $50.9 million in 2024[216] - Net income for the three months ended September 30, 2025, was $4.0 million, a recovery from a net loss of $14.0 million in the same period of 2024[216] Merger and Acquisition - A merger agreement with Salesforce is expected to close in the fourth quarter of Salesforce's fiscal year 2026 or early in fiscal year 2027, subject to regulatory approvals[158] - The merger consideration includes $25.00 per share in cash for Class A and Class B-1 common stock, and $0.0000100115 per share for Class B-2 common stock[157] - A termination fee of $253 million will be payable by the company to Salesforce under certain circumstances if the merger agreement is terminated[159] - The company entered into a Merger Agreement with Salesforce on May 26, 2025, agreeing to conduct business in the ordinary course and requiring Salesforce's consent for certain actions[287] Cash Flow and Financial Position - Cash provided by operating activities was $327.5 million for the nine months ended September 30, 2025, compared to $263.0 million in 2024[273] - Net cash provided by investing activities was $200.6 million for the nine months ended September 30, 2025, primarily due to $460.4 million in maturities of investments[275] - Net cash used in financing activities was $118.2 million for the nine months ended September 30, 2025, primarily due to $101.4 million in repurchases of common stock[279] - As of September 30, 2025, the company had $1,472.1 million in available cash, cash equivalents, and short-term investments, up from $1,232.4 million at the end of 2024[266] - The company has a credit agreement with JPMorgan Chase Bank for $1.9 billion in term loans and $250.0 million in commitments under a Revolving Credit Facility[267] - As of September 30, 2025, the company had long-term debt outstanding with a carrying value of $1.8 billion, with a hypothetical change in interest rate of 0.25% potentially increasing or decreasing interest expense by approximately $4.5 million annually[292] Foreign Exchange and Hedging - The company has cash flow hedges for Indian Rupee expense exposure, with a hypothetical 10% increase in foreign currencies relative to the U.S. dollar potentially resulting in an approximate $18.1 million positive impact on operating income for the nine months ended September 30, 2025[294] - The notional amounts of foreign exchange forward contracts as of September 30, 2025, were to buy $95.3 million worth of Indian rupees[296] - The company has entered into float-to-float cross-currency swap contracts with an aggregate notional amount of €300 million to hedge a portion of its net investment in European operations[297] Compliance and Governance - The company was in compliance with all covenants of the Credit Agreement as of September 30, 2025[285] - The Credit Agreement stipulates that if the aggregate principal amount of certain loans exceeds $15 million, the total net first lien leverage ratio cannot exceed 6.25 to 1.00[283] - There were no material changes in contractual and lease obligations for the nine months ended September 30, 2025, compared to the previous annual report[286] - The company has not experienced material changes to its critical accounting policies and estimates compared to those described in its Annual Report on Form 10-K filed on February 25, 2025[290]

Core Insights - Informatica Inc. reported quarterly earnings of $0.37 per share, exceeding the Zacks Consensus Estimate of $0.34 per share, and up from $0.28 per share a year ago, representing an earnings surprise of +8.82% [1] - The company posted revenues of $439.16 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.51% and increasing from $422.48 million year-over-year [2] - Informatica Inc. has surpassed consensus EPS estimates two out of the last four quarters and topped consensus revenue estimates three times in the same period [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.40 on revenues of $452.26 million, and for the current fiscal year, it is $1.11 on revenues of $1.7 billion [7] - The estimate revisions trend for Informatica Inc. was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Internet - Software industry, to which Informatica belongs, is currently in the top 34% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Revenue Growth - Cloud Subscription Annualized Recurring Revenue (ARR) increased to $969 million, representing 29.5% year-over-year growth[7] - Total ARR increased to $1.75 billion, representing 3.9% year-over-year growth[7] - GAAP Total Revenues increased to $439.2 million, representing 3.9% year-over-year growth[8] - GAAP Cloud Subscription Revenue increased to $230.4 million, representing 31.0% year-over-year growth[8] - Subscription revenue for Q3 2025 reached $320.661 million, a 11.3% increase from $287.934 million in Q3 2024[41] - Total revenues for the nine months ended September 30, 2025, were $1.250 billion, compared to $1.212 billion for the same period in 2024, reflecting a growth of 3.1%[41] - Total GAAP revenue for Q3 2025 reached $439,161,000, an increase of 3.9% from $422,481,000 in Q3 2024[51] - Total Annual Recurring Revenue (ARR) rose to $1,747,823,000 in Q3 2025, compared to $1,681,776,000 in Q3 2024, marking a 3.9% increase[52] Customer Metrics - Achieved a Cloud Subscription Net Retention Rate (NRR) of 120% as of September 30, 2025[12] - Reported 2,545 Cloud Subscription ARR customers, an increase of 6% year-over-year[12] - The Cloud Subscription Net Retention Rate (NRR) is crucial for measuring the growth from existing customers, reflecting the company's ability to sell additional products[31] - The Cloud Subscription Net Retention Rate decreased to 120% in Q3 2025 from 126% in Q3 2024[52] Operational Performance - Processed 143.3 trillion cloud transactions per month, an increase of 41% year-over-year[12] - Total number of cloud transactions processed per month increased to 143.3 trillion in Q3 2025, up from 101.3 trillion in Q3 2024[54] Profitability - The company reported a net income of $3.998 million for Q3 2025, compared to a net loss of $13.985 million in Q3 2024[41] - Operating income for Q3 2025 was $60.866 million, compared to $50.933 million in Q3 2024, showing an increase of 19.0%[41] - Non-GAAP net income for the three months ended September 30, 2025, reached $115,220 thousand, up from $88,948 thousand in the prior year, representing a year-over-year increase of 29.6%[47] - Non-GAAP income from operations for Q3 2025 was $161,449,000, compared to $151,044,000 in Q3 2024, reflecting a 6.5% growth[48] Expenses and Investments - Research and development expenses for Q3 2025 were $85.356 million, up from $80.316 million in Q3 2024, indicating a continued investment in innovation[41] - Total operating expenses for the nine months ended September 30, 2025, were $912.506 million, slightly up from $901.832 million in the same period of 2024[41] Cash Flow and Financial Position - Cash and cash equivalents at the end of the period were $1,349,474 thousand, compared to $912,460 thousand at the beginning of the period, marking a net increase of 47.9%[45] - The company reported net cash provided by operating activities of $148,707 thousand for the three months ended September 30, 2025, compared to $106,498 thousand in the prior year, an increase of 39.6%[45] - Total current liabilities decreased to $946,200 thousand as of September 30, 2025, down from $1,090,717 thousand at the end of 2024, a reduction of 13.2%[43] - Total stockholders' equity increased to $2,448,570 thousand as of September 30, 2025, from $2,307,314 thousand at the end of 2024, reflecting a growth of 6.1%[43] - Total net debt as of September 30, 2025, was $337 million, down from $591 million as of December 31, 2024[55] Strategic Initiatives - Launched new capabilities in CLAIRE GPT, enhancing natural language understanding and data workflow automation[12] - Announced expansion of partnership with Oracle, including new capabilities on Oracle Cloud Infrastructure[14] - Informatica is in the process of being acquired by Salesforce, expected to close in Q4 FY 2026 or early FY 2027[15] Revenue Components - Maintenance and professional services revenue decreased to $118.500 million in Q3 2025 from $134.547 million in Q3 2024, a decline of 11.9%[41] - The company expects a decrease in Self-managed Subscription ARR as it shifts focus from perpetual licenses to cloud solutions[28]

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Informatica Inc. due to allegations of materially misleading business information issued by the company [1] Group 1 - The investigation is focused on potential securities claims related to Informatica Inc. (NYSE: INFA) [1] - Shareholders who purchased Informatica securities may be entitled to compensation [1] - Compensation may be available without any out-of-pocket fees or costs through a contingency fee arrangement [1]