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: Adjusted EBITDA represents GAAP net income (loss) as adjusted for income tax benefit (expense), interest income, interest expense, debt refinancing costs, other income (expense) net, stock-based compensationrelated charges, inc ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q _____________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-40936 _____________________________ Informatica Inc. ___________________________ ...

First Quarter 2024 Ended March 31, 2024 Financial Measures Forward-looking statements are based on information available at the time those statements are made and/or management's good faith beliefs and assumptions as of that time with respect to future events and are subject to risks and uncertainties 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 ...

Informatica Inc. (INFA) came out with quarterly earnings of $0.22 per share, beating the Zacks Consensus Estimate of $0.20 per share. This compares to earnings of $0.15 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10%. A quarter ago, it was expected that this company would post earnings of $0.29 per share when it actually produced earnings of $0.32, delivering a surprise of 10.34%.Over the last four quarters, the company ha ...

Financial Performance - GAAP Total Revenues increased 6.3% year-over-year to $388.6 million, with adjusted total revenues increasing 5.9% year-over-year when accounting for foreign exchange impacts [4][6]. - Total revenues for Q1 2024 were $388.6 million, a 6.3% increase from $365.4 million in Q1 2023 [42]. - Net income for Q1 2024 was $9.3 million, a significant recovery from a net loss of $116.4 million in Q1 2023 [42]. - Non-GAAP net income for Q1 2024 was $69,224 thousand, compared to $44,641 thousand in Q1 2023, marking an increase of about 55% [48]. - Total GAAP revenue for Q1 2024 was $388,607 thousand, up from $365,431 thousand in Q1 2023, representing a year-over-year increase of approximately 6% [52]. - The company generated $131,642 thousand in net cash provided by operating activities in Q1 2024, compared to $69,882 thousand in Q1 2023, indicating an increase of about 88% [46]. - Adjusted Unlevered Free Cash Flows (after-tax) for Q1 2024 were $182,980 thousand, up from $123,352 thousand in Q1 2023, reflecting a growth of approximately 48% [52]. - Cash and cash equivalents at the end of Q1 2024 were $855,068 thousand, up from $632,907 thousand at the end of Q1 2023, reflecting an increase of about 35% [46]. Subscription and Cloud Metrics - Cloud Subscription Annualized Recurring Revenue (ARR) rose 35% year-over-year to $653 million, while Subscription ARR increased 13% year-over-year to $1.16 billion [5][9]. - Cloud Subscription Annual Recurring Revenue increased to $652,545,000 in 2024 from $483,294,000 in 2023, representing a growth of 35.1% [53]. - Total Annual Recurring Revenue rose to $1,636,494,000 in 2024, up from $1,533,403,000 in 2023, marking an increase of 6.7% [53]. - Subscription revenue increased to $252.0 million in Q1 2024, up 17.8% from $213.9 million in Q1 2023 [42]. - Customers spending over $1 million in Subscription Annual Recurring Revenue increased to 258 in 2024 from 208 in 2023, a growth of 24% [55]. - Subscription Net Retention Rate decreased to 105% in 2024 from 110% in 2023 [53]. - Cloud transactions processed per month surged to 91.8 trillion in 2024, compared to 54.3 trillion in 2023, reflecting a growth of 68.9% [55]. - The company reported a Cloud Subscription Net Retention Rate (NRR) that continues to outpace total Subscription NRR, highlighting strong customer retention and upsell opportunities [34]. Operational Metrics - GAAP Operating Income was $3.2 million, with Non-GAAP Operating Income at $109.3 million, and GAAP Operating Cash Flow of $131.6 million [9]. - Gross profit for Q1 2024 was $306.9 million, compared to $283.5 million in Q1 2023, reflecting a gross margin improvement [42]. - Research and development expenses were $79.7 million in Q1 2024, slightly down from $82.0 million in Q1 2023, indicating a focus on efficiency [42]. - Adjusted EBITDA for Q1 2024 was $111,474 thousand, compared to $89,013 thousand in Q1 2023, indicating a growth of approximately 25% [51]. - Non-GAAP Operating Income for Q2 2024 is expected to be in the range of $107 million to $119 million, representing approximately 29.1% year-over-year growth at the midpoint [15]. Future Projections - Full-Year 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 [15]. - Subscription ARR for Full-Year 2024 is expected to be in the range of $1.261 billion to $1.295 billion, indicating approximately 12.8% year-over-year growth at the midpoint [15]. - The company expects a continued shift from perpetual licenses to cloud subscriptions, which may impact Maintenance ARR in future quarters [32]. Restructuring and Charges - The Company recorded restructuring charges of $4.4 million in Q1 2024 as part of its November 2023 restructuring plan [14]. - The company’s stock-based compensation expense increased to $64,101 thousand in Q1 2024 from $50,342 thousand in Q1 2023, an increase of approximately 27% [48]. Debt and Liabilities - Total net debt decreased to $725,000,000 as of March 31, 2024, down from $850,000,000 as of December 31, 2023, a reduction of 14.7% [57]. - Total liabilities decreased to $2,822,099 thousand as of March 31, 2024, down from $2,989,484 thousand as of December 31, 2023, representing a reduction of approximately 6% [44]. - The company’s total current assets decreased to $1,700,036 thousand as of March 31, 2024, from $1,752,586 thousand as of December 31, 2023, a decline of about 3% [44].

Salesforce isn't going to buy the company.Shares of Informatica (INFA -7.59%) sank on Monday after the company confirmed that Salesforce won't be acquiring it. As of 1:30 p.m. ET, Informatica stock was down about 9%.Did a deal with modest upside fall apart?Informatica stock took a hit earlier in the month after an article from The Wall Street Journal said that Salesforce was looking to acquire the cloud-based data management company for less than its stock price at the time. However, Informatica released a ...

A huge name in the customer-relationship management space is apparently interested in owning the company.Trading was sprightly in enterprise cloud-data management specialist Informatica's (INFA -6.50%) stock on Monday. That wasn't necessarily a good development, as the company is apparently the target of a buyout offer that will see its shares change hands at something of a discount. Informatica's shares closed the day down by nearly 7%, a notably steeper decline than the S&P 500 index's 1.2% fall.Sources s ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File Number 001-40936 Informatica Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorpora ...

Subscription Revenue and Growth - Subscription revenue increased to $703.3 million for the nine months ended September 30, 2023, compared to $618.8 million for the same period in 2022, representing a growth of approximately 13.6%[129] - Total Annual Recurring Revenue (ARR) reached $1,575.9 million as of September 30, 2023, up from $1,467.8 million in 2022, indicating a year-over-year increase of about 7.4%[153] - The average Subscription ARR per customer increased from $252,000 in 2022 to $284,000 in 2023, reflecting a growth of approximately 12.7%[146] - Subscription Annual Recurring Revenue (ARR) is a key metric, reflecting the annualized cash value collected over a 12-month period from subscription contracts, excluding maintenance contracts[158] - Cloud Subscription ARR is a subset of Subscription ARR, providing visibility on the size and growth rate of cloud-based contracts[161] - The company expects subscription revenues to account for substantially all of its software revenues going forward due to the cessation of active selling of perpetual licenses[191] Customer Retention and Acquisition - Subscription Net Retention Rate was 106% as of September 30, 2023, down from 112% in 2022, while Cloud Subscription Net Retention Rate improved to 118% from 115%[153] - 54% of subscription customers as of September 30, 2023, did not have a prior perpetual license maintenance contract, indicating successful new customer acquisition efforts[144] - The subscription renewal rate remained stable at 94% for both September 30, 2023, and 2022, while maintenance renewal rate was 95% in 2023 compared to 96% in 2022[147] Financial Performance - The company reported a GAAP net income of $79,276 thousand for the three months ended September 30, 2023, compared to a net loss of $15,602 thousand in the same period of 2022[167] - Adjusted EBITDA for the three months ended September 30, 2023, was $132,189 thousand, an increase from $88,789 thousand in the same period of 2022[167] - Total revenues increased by 10% to $408.6 million for the three months ended September 30, 2023, compared to $371.9 million for the same period in 2022, primarily driven by a 22% increase in subscription revenues[187] - Subscription revenues reached $261.8 million, accounting for 64% of total revenues for the three months ended September 30, 2023, up from $214.0 million (58%) in the same period last year[189] - Net income for the three months ended September 30, 2023, was $79.3 million, a significant improvement from a net loss of $15.6 million in the same period in 2022[187] Revenue Composition and Changes - Perpetual license revenues decreased by 83% to $0.2 million for the three months ended September 30, 2023, down from $1.2 million in the same period in 2022, due to the cessation of active selling of perpetual licenses[192] - Maintenance revenues decreased to $124.3 million (30% of total revenues) for the three months ended September 30, 2023, from $127.9 million (34%) in the same period last year[195] - The company expects Maintenance ARR to decrease in future quarters as it shifts focus from perpetual licenses to cloud-based subscriptions[157] - Maintenance revenues are expected to continue to decrease gradually in dollar value and as a percentage of total revenue due to the cessation of active sales of perpetual licenses[196] Expenses and Cost Management - Research and development expenses increased to $85.9 million for the three months ended September 30, 2023, compared to $80.4 million in the same period last year[187] - Sales and marketing expenses decreased to $130.0 million (32% of total revenues) during the three months ended September 30, 2023, down from $132.3 million (36% of total revenues) for the same period in 2022, a 2% decrease[212] - General and administrative expenses increased to $41.9 million (10% of total revenues) during the three months ended September 30, 2023, compared to $31.3 million (8% of total revenues) for the same period in 2022, a 34% increase[214] - Research and development expenses are expected to decrease in absolute dollars as the company focuses on cloud products[177] Cash Flow and Investments - As of September 30, 2023, the company had $869.1 million in available cash, cash equivalents, and short-term investments, up from $716.1 million at the end of 2022[227] - Net cash provided by operating activities for the nine months ended September 30, 2023 was $165.3 million, compared to $139.3 million for the same period in 2022[230] - Net cash used in investing activities for the nine months ended September 30, 2023 was $53.0 million, primarily due to $255.1 million in purchases of investments[232] - The company anticipates continuing to acquire businesses and technologies to enhance product offerings, which may require raising additional funds for future acquisitions[235] Debt and Interest - As of September 30, 2023, the company had long-term debt outstanding with a carrying value of $1.83 billion, with a hypothetical interest rate change of 0.25% affecting interest expense by approximately $4.6 million annually[249] - Interest income increased to $10.4 million for the three months ended September 30, 2023, compared to $2.8 million for the same period in 2022, a 271% increase[221] - Interest expense increased to $39.3 million for the three months ended September 30, 2023, compared to $22.2 million for the same period in 2022, a 77% increase[221] Restructuring and Workforce Changes - The company plans to reduce its workforce by approximately 450 employees, representing about 7% of its global workforce, as part of a restructuring plan announced in January 2023[181] - Restructuring costs increased to $28.1 million (2% of revenues) during the nine months ended September 30, 2023, compared to no restructuring costs for the same period in 2022[220] Tax and Legal Matters - Income tax benefit for the three months ended September 30, 2023 was $70.6 million, compared to an expense of $2.8 million in the same period of 2022, reflecting a change of 2637%[224] - The effective tax rate is expected to remain volatile, with a decrease anticipated in Q4 2023 as cumulative pretax losses are expected to decline[225] - The company is not currently involved in any legal proceedings that would have a material adverse effect on its business[260] Currency and Hedging - The company has entered into foreign currency forward contracts to hedge against fluctuations in foreign currency exchange rates, with notional amounts totaling $108.7 million in U.S. dollar equivalents for Indian rupee expenses[253] - The company has cash flow hedges for its Indian Rupee expense exposure, hedging on a rolling twelve-month basis[251] - A hypothetical 10% increase in the value of all applicable foreign currencies relative to the U.S. dollar would have had approximately a $10.3 million negative impact on operating loss for the nine months ended September 30, 2023[251]

Financial Data and Key Metrics Changes - The company raised its non-GAAP operating income and adjusted unlevered free cash flow after tax guidance for the full year, reflecting strong execution in the first half of the year [5][46][73] - Total ARR was $1.55 billion, an increase of 8% year-over-year, driven by new cloud workloads and steady renewal rates [67] - Subscription revenue increased 10% year-over-year to $228 million, representing 61% of total revenue compared to 56% a year ago [20][30] - Operating margin improved to 23.3%, a 4.5 percentage point increase from 18.8% a year ago [45] Business Line Data and Key Metrics Changes - Cloud subscription ARR was $513 million, a 37% increase year-over-year, now representing 49% of total subscription ARR, up from 42% a year ago [41] - Self-managed subscription ARR declined slightly to $530 million, down 1% sequentially and up 1% year-over-year [18] - Maintenance ARR was down 7% year-over-year to $505 million, in line with expectations [42] Market Data and Key Metrics Changes - US revenue declined 1.6% year-over-year to $239 million, while international revenue grew 6% year-over-year to $137 million [44] - Customers spending more than $1 million in subscription ARR increased by 22% year-over-year to over 213 customers [31] Company Strategy and Development Direction - The company is focusing on a cloud-only consumption-driven strategy, aiming to displace legacy and single-point solution vendors [15][30] - Informatica is expanding its cloud-native AI-powered IDMC platform capabilities, integrating recent acquisitions to enhance data access management and privacy solutions [29] - The company is committed to product innovation and has launched several industry-specific solutions, including IDMC for ESG sustainability [31] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro environment remained stable in Q2, with no significant changes expected in the near term [30][79] - The company is optimistic about its cloud growth opportunities and is focused on executing its strategy effectively [39][112] Other Important Information - The company ended the second quarter with cash plus short-term investments of $821 million and net debt of $1.03 billion [22] - Adjusted unlevered free cash flow after tax is expected to be in the range of $370 million to $390 million, representing a 32% year-over-year increase at the midpoint [23] Q&A Session Summary Question: What trends are being observed towards the end of the quarter and the first month of Q3? - Management indicated that Q2 was stable and July showed similar stability, with no significant changes observed [79] Question: How is the adoption of Generative AI progressing among enterprises? - Management noted that enterprises are exploring use cases for Generative AI, with significant value creation opportunities identified [82][84] Question: What is driving the migration activity to the cloud? - The company highlighted that customers are increasingly interested in IPU consumption and better spend visibility, contributing to accelerated migration [99] Question: What is the outlook for cloud NRR in the back half of the year? - Management stated that cloud NRR is expected to remain stable, with a focus on maintaining growth in cloud ARR [150] Question: How is the sales team adjusting to the cloud-only and IPU-led sales motion? - Management expressed confidence in the sales team's ability to adapt and execute effectively under the new model [121]