Core Insights - The performance of AI products increasingly relies on data quality and freshness rather than just model size [1][2][3] - Companies like Salesforce and IBM are acquiring data infrastructure firms to enhance their AI capabilities with real-time, structured data [2][5][6] - The definition of "good data" includes being domain-specific, continuously updated, structured, deduplicated, and real-time actionable [4][5][6] Data Infrastructure Importance - Data collection is now seen as a critical infrastructure rather than a secondary task, emphasizing the need for reliable, real-time access to data [2][9][22] - The modern AI data stack has evolved into a value chain that includes data acquisition, transformation, organization, and storage [10][22] - Effective data retrieval quality surpasses prompt engineering, as outdated or irrelevant data can hinder model performance [7][19] Strategic Data Collection - Data collection must be strategic, providing structured and immediate data for AI agents [12][13] - It should handle dynamic user interfaces, CAPTCHAs, and mixed extraction methods to ensure comprehensive data gathering [14][15] - Data collection infrastructure should be scalable and compliant with legal standards, moving beyond fragile scraping tools [16][22] Future of AI Systems - The future of AI performance will depend more on knowledge acquisition speed and context management rather than just model size [23][24] - Companies that view data collection as a foundational capability will likely achieve faster and more cost-effective success [25]

Core Insights - Informatica reported a healthy revenue beat with GAAP revenue of $407.3 million, exceeding analysts' expectations of $401.8 million, while Non-GAAP EPS fell to $0.18, below prior year levels [1][5][6] - The company is transitioning to a cloud-first model, with significant growth in its cloud subscription business, which saw a 28.2% year-over-year increase in annualized recurring revenue (ARR) to $901.0 million [1][5][9] - Despite revenue growth, profit margins are under pressure, with Non-GAAP operating margin declining to 26.9% from 28.7% in the previous year [6][8] Financial Performance - Q2 2025 Non-GAAP EPS was $0.18, down 21.7% from $0.23 in Q2 2024 [2] - GAAP revenue increased by 1.7% year-over-year from $400.6 million in Q2 2024 [2] - Adjusted unlevered free cash flow decreased to $58.7 million, down 17.5% from $71.2 million in the previous year [2][6] Strategic Direction - The company is focused on enhancing its Intelligent Data Management Cloud (IDMC) platform, which integrates data management, governance, and AI capabilities [3][10] - Informatica's strategy includes moving away from legacy systems to cloud-based subscriptions, expanding AI features, and forming partnerships with major cloud providers [4][7] - The cloud customer base grew to 2,509, a 7% increase year-over-year, while the Net Retention Rate for the cloud segment decreased to 120% from 126% in Q2 2024 [8][9] Product Innovation - New product launches include AI Agent Engineering and CLAIRE Copilot, aimed at automating data tasks and integrating generative AI [7][10] - Partnerships with AWS, Databricks, Microsoft, NVIDIA, Oracle, Salesforce, and Snowflake are enhancing Informatica's market reach and product integration [7][10] Future Outlook - Informatica did not provide forward financial guidance due to a pending acquisition by Salesforce, which limits visibility on future growth [12][13] - Key factors to monitor include the pace of cloud ARR expansion, the transition from legacy revenue, and the adoption of new AI features [13]

Core Viewpoint - Informatica Inc. reported quarterly earnings of $0.18 per share, missing the Zacks Consensus Estimate of $0.21 per share, and showing a decline from $0.23 per share a year ago, indicating an earnings surprise of -14.29% [1] Financial Performance - The company posted revenues of $407.34 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.68%, and showing an increase from $400.63 million year-over-year [2] - Over the last four quarters, Informatica has surpassed consensus revenue estimates three times [2] Stock Performance - Informatica shares have declined approximately 4.7% since the beginning of the year, contrasting with the S&P 500's gain of 7.1% [3] Future Outlook - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.35 on revenues of $436.93 million, and for the current fiscal year, it is $1.15 on revenues of $1.69 billion [7] Industry Context - The Internet - Software industry, to which Informatica belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

[Second Quarter 2025 Financial Results Overview](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Results%20Overview) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) Informatica CEO Amit Walia highlighted strong Q2 2025 performance, exceeding key revenue and profit targets driven by significant cloud subscription ARR growth, reaffirming IDMC's AI data management leadership and Salesforce transaction progress - The company demonstrated strong performance in Q2, with all key revenue and profitability metrics exceeding the midpoint of expectations, and cloud subscription ARR growing by **28% year-over-year**[4](index=4&type=chunk) - Informatica's CLAIRE AI-powered IDMC platform maintains a leading position in AI, assisting customers and partners in building trusted data foundations, simplifying governance, and achieving seamless data asset integration[4](index=4&type=chunk) - The company continues to advance its transaction with Salesforce[4](index=4&type=chunk) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) In Q2 2025, Informatica's cloud subscription ARR reached **$901 million**, growing **28.2%**, with total ARR at **$1.72 billion**, up **3.1%**, and GAAP total revenue increasing **1.7%** to **$407.3 million** Key Financial Metrics for Q2 2025 | Metric | Q2 2025 | Year-over-Year Growth (Constant Currency) | | :-------------------------------- | :---------------- | :----------------------------- | | Cloud Subscription Annual Recurring Revenue (ARR) | $901 million USD | 28.2% | | Total Annual Recurring Revenue (ARR) | $1.72 billion USD | 2.9% | | GAAP Total Revenue | $407.3 million USD | 0.7% | | GAAP Cloud Subscription Revenue | $209.9 million USD | 30.1% | | GAAP Operating Loss | $(0.1) million USD | N/A | | Non-GAAP Operating Income | $109.4 million USD | N/A | | GAAP Operating Cash Flow | $24.6 million USD | N/A | | Adjusted Unlevered Free Cash Flow (After-Tax) | $58.7 million USD | N/A | [Business Highlights: Product Innovation and Partnerships](index=2&type=section&id=Business%20Highlights%3A%20Product%20Innovation%20and%20Partnerships) Informatica achieved significant Q2 2025 business growth and product innovation, with cloud transactions up **33%**, cloud subscription NRR at **120%**, and cloud subscription ARR customer growth of **7%**, launching new AI services and expanding key cloud partnerships - As of June 30, 2025, **128.2 trillion cloud transactions** were processed monthly, representing a **33% year-over-year increase**[11](index=11&type=chunk) - As of June 30, 2025, the cloud subscription Net Retention Rate (NRR) reached **120%**[11](index=11&type=chunk) - As of June 30, 2025, the number of cloud subscription ARR customers reached **2,509**, a **7% year-over-year increase**[11](index=11&type=chunk) - Announced the launch of AI Agent Engineering and CLAIRE Agents, designed to build, connect, and manage intelligent multi-agent AI systems and automate complex cloud data operations through a unified no-code environment[11](index=11&type=chunk) - Expanded partnerships with AWS, Databricks, Microsoft, NVIDIA, Oracle, Salesforce, and Snowflake, introducing new products and features such as GenAI capability certifications, AI agent integrations, data integration, and Master Data Management (MDM) extensions[11](index=11&type=chunk)[12](index=12&type=chunk)[15](index=15&type=chunk) [Strategic Business Developments](index=3&type=section&id=Strategic%20Business%20Developments) [Pending Acquisition by Salesforce](index=3&type=section&id=Pending%20Acquisition%20by%20Salesforce) Informatica announced a definitive acquisition agreement with Salesforce on May 27, 2025, and will not hold an earnings call or provide financial guidance due to the pending transaction - Informatica announced on May 27, 2025, that it has entered into a definitive agreement to be acquired by Salesforce[13](index=13&type=chunk) - Due to the pending transaction with Salesforce, Informatica will not host an earnings conference call or provide financial guidance[14](index=14&type=chunk) [Industry Recognition](index=3&type=section&id=Industry%20Recognition) Informatica was recognized as a leader in multiple industry reports, including the 2025 Gartner® Magic Quadrant™ for Integration Platform as a Service and Forrester Wave™: Master Data Management Solutions, Q2 2025 - Recognized as a leader in the 2025 Gartner® Magic Quadrant™ for Integration Platform as a Service[15](index=15&type=chunk) - Recognized as a leader in the Forrester Wave™: Master Data Management Solutions, Q2 2025[15](index=15&type=chunk) - Recognized as a leader in the Nucleus Research iPaaS Technology Value Matrix 2025 and a Champion in the Bloor Research Master Data Management Market Update 2025[15](index=15&type=chunk) [Definitions of Non-GAAP Measures and Key Metrics](index=4&type=section&id=Definitions%20of%20Non-GAAP%20Measures%20and%20Key%20Metrics) [Non-GAAP Financial Measures Definitions](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20Definitions) This section defines Informatica's non-GAAP financial measures, including non-GAAP operating income and margin, Adjusted EBITDA, and Adjusted Unlevered Free Cash Flow (After-Tax), explaining how they provide a clearer view of operating performance by excluding non-cash or non-recurring items - Non-GAAP operating income and margin, along with non-GAAP net income, exclude stock-based compensation, amortization, restructuring, and acquisition-related costs, adjusted for income tax effects, to provide comparable operating performance analysis[21](index=21&type=chunk) - Adjusted EBITDA assesses the company's profitability relative to its balance sheet debt by adjusting GAAP net income (loss) for income taxes, interest, stock-based compensation, and amortization, among other items[22](index=22&type=chunk) - Adjusted unlevered free cash flow (after-tax) represents operating cash flow less purchases of property and equipment, adjusted for interest payments, sponsor-related costs, and acquisition and restructuring costs, serving as a measure of the company's long-term liquidity[23](index=23&type=chunk) [Key Business Metrics Definitions](index=5&type=section&id=Key%20Business%20Metrics%20Definitions) This section defines Informatica's key business metrics, including Annual Recurring Revenue (ARR) and its segments (Cloud Subscription ARR, Self-Managed Subscription ARR, Maintenance ARR), and Cloud Subscription Net Retention Rate (NRR), used to track the annual cash value of recurring contracts and existing customer growth - Annual Recurring Revenue (ARR) represents the annualized billing amount for all active maintenance and subscription agreements, serving as a key indicator of the annual cash value of all recurring contracts[24](index=24&type=chunk) - Cloud Subscription ARR, Self-Managed Subscription ARR, and Maintenance ARR represent the portions of ARR attributable to hosted cloud contracts, self-managed subscription contracts, and maintenance contracts, respectively[25](index=25&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk) - Cloud Subscription Net Retention Rate (NRR) measures the company's ability to sell additional products to its existing cloud subscription customer base, calculated by comparing contract values for the same customer cohort across different periods[29](index=29&type=chunk) [Revenue Disaggregation Principles](index=6&type=section&id=Revenue%20Disaggregation%20Principles) This section outlines Informatica's revenue recognition methods, categorizing revenue as recognized over time (cloud subscription, self-managed subscription support, maintenance), at a point in time (self-managed subscription license), and as services are rendered (professional services), noting the reclassification of perpetual license revenue to reflect a cloud-first strategy - Cloud subscription revenue, self-managed subscription support and other revenue, and maintenance revenue are all recognized over the contract term[30](index=30&type=chunk) - Self-managed subscription license revenue is recognized at a point in time when the software license is made available or the subscription term commences[31](index=31&type=chunk) - Professional services revenue is recognized as services are rendered[32](index=32&type=chunk) - Due to the transition to a cloud-first, consumption-driven strategy, perpetual license revenue has been combined with self-managed subscription license revenue, with prior periods retrospectively adjusted for comparability[33](index=33&type=chunk) [Consolidated Financial Statements (GAAP)](index=9&type=section&id=Consolidated%20Financial%20Statements%20%28GAAP%29) [Consolidated Statements of Operations](index=9&type=section&id=Consolidated%20Statements%20of%20Operations) Informatica reported a GAAP net loss of **$46.49 million** in Q2 2025, compared to a net income of **$48.28 million** in the prior year, with total revenue increasing to **$407.3 million** from **$400.6 million**, but operating income shifting to an operating loss of **$0.089 million** Consolidated Statements of Operations Summary (As of June 30) | Metric | Q2 2025 (thousand USD) | Q2 2024 (thousand USD) | H1 2025 (thousand USD) | H1 2024 (thousand USD) | | :-------------------------------- | :----------------------- | :----------------------- | :-------------------- | :-------------------- | | Subscription Revenue | 287,034 | 264,306 | 571,044 | 516,304 | | Maintenance and Professional Services Revenue | 120,310 | 136,319 | 240,197 | 272,928 | | Total Revenue | 407,344 | 400,625 | 811,241 | 789,232 | | Operating Income (Loss) | (89) | 9,464 | 33,738 | 12,689 | | Net Income (Loss) | (4,649) | 4,828 | (3,309) | 14,162 | | Basic Net Income (Loss) Per Share | (0.02) | 0.02 | (0.01) | 0.05 | | Diluted Net Income (Loss) Per Share | (0.02) | 0.02 | (0.01) | 0.05 | [Consolidated Balance Sheets](index=10&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, Informatica's total assets slightly decreased to **$5.2547 billion** from **$5.2795 billion** at December 31, 2024, with cash and cash equivalents increasing to **$1.0523 billion**, total liabilities decreasing to **$2.8702 billion**, and total stockholders' equity rising to **$2.3845 billion** Consolidated Balance Sheets Summary (As of) | Metric | June 30, 2025 (thousand USD) | December 31, 2024 (thousand USD) | | :-------------------------------- | :----------------------- | :----------------------- | | Cash and Cash Equivalents | 1,052,275 | 912,460 | | Total Current Assets | 1,934,423 | 1,987,519 | | Total Assets | 5,254,719 | 5,279,532 | | Total Current Liabilities | 961,282 | 1,090,717 | | Total Liabilities | 2,870,182 | 2,972,218 | | Total Stockholders' Equity | 2,384,537 | 2,307,314 | [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In Q2 2025, Informatica's operating cash flow was **$24.576 million**, investing cash flow was **$51.675 million**, and financing cash outflow was **$1.291 million**, resulting in a net increase of **$96.01 million** in cash and cash equivalents, with H1 operating cash flow significantly increasing to **$178.8 million** Consolidated Statements of Cash Flows Summary (As of June 30) | Metric | Q2 2025 (thousand USD) | Q2 2024 (thousand USD) | H1 2025 (thousand USD) | H1 2024 (thousand USD) | | :-------------------------------- | :----------------------- | :----------------------- | :-------------------- | :-------------------- | | Net Cash from Operating Activities | 24,576 | 24,852 | 178,750 | 156,494 | | Net Cash from Investing Activities | 51,675 | (71,640) | 45,336 | (67,210) | | Net Cash from Financing Activities | (1,291) | (8,025) | (120,793) | (15,910) | | Net Increase (Decrease) in Cash and Cash Equivalents | 96,010 | (56,603) | 139,815 | 66,022 | | Cash and Cash Equivalents at End of Period | 1,052,275 | 798,465 | 1,052,275 | 798,465 | [Non-GAAP Reconciliations and Supplemental Metrics](index=12&type=section&id=Non-GAAP%20Reconciliations%20and%20Supplemental%20Metrics) [GAAP to Non-GAAP Net Income Reconciliation](index=12&type=section&id=GAAP%20to%20Non-GAAP%20Net%20Income%20Reconciliation) This section reconciles GAAP net income (loss) to non-GAAP net income by adding back non-cash or non-recurring items like stock-based compensation, amortization, restructuring, and acquisition-related costs, adjusted for income tax effects, to provide a more comparable view of profitability, with Q2 2025 non-GAAP net income at **$56.985 million** and diluted non-GAAP net income per share at **$0.18** GAAP to Non-GAAP Net Income Reconciliation (As of June 30) | Metric | Q2 2025 (thousand USD) | Q2 2024 (thousand USD) | H1 2025 (thousand USD) | H1 2024 (thousand USD) | | :-------------------------------- | :----------------------- | :----------------------- | :-------------------- | :-------------------- | | GAAP Net Income (Loss) | (4,649) | 4,828 | (3,309) | 14,162 | | Stock-Based Compensation Expense | 71,886 | 68,576 | 133,502 | 132,677 | | Amortization of Intangible Assets | 25,548 | 32,745 | 50,870 | 65,518 | | Acquisition-Related Costs | 12,028 | 2,403 | 12,028 | 7,205 | | Non-GAAP Net Income | 56,985 | 71,232 | 126,052 | 140,456 | | Non-GAAP Diluted Net Income Per Share | 0.18 | 0.23 | 0.41 | 0.45 | [GAAP to Non-GAAP Operating Income Reconciliation](index=14&type=section&id=GAAP%20to%20Non-GAAP%20Operating%20Income%20Reconciliation) This section reconciles GAAP operating income (loss) to non-GAAP operating income by adding back items such as stock-based compensation and amortization of intangible assets, with Q2 2025 non-GAAP operating income at **$109.4 million** and a non-GAAP operating margin of **26.9%** GAAP to Non-GAAP Operating Income Reconciliation (As of June 30) | Metric | Q2 2025 (thousand USD) | Q2 2024 (thousand USD) | H1 2025 (thousand USD) | H1 2024 (thousand USD) | | :-------------------------------- | :----------------------- | :----------------------- | :-------------------- | :-------------------- | | GAAP Operating Income (Loss) | (89) | 9,464 | 33,738 | 12,689 | | Stock-Based Compensation Expense | 71,886 | 68,576 | 133,502 | 132,677 | | Amortization of Intangible Assets | 25,548 | 32,745 | 50,870 | 65,518 | | Non-GAAP Operating Income | 109,373 | 114,860 | 230,938 | 224,116 | | Non-GAAP Operating Margin | 26.9% | 28.7% | 28.5% | 28.4% | [Adjusted EBITDA Reconciliation](index=15&type=section&id=Adjusted%20EBITDA%20Reconciliation) This section reconciles GAAP net income (loss) to Adjusted EBITDA by adding back income taxes, interest, stock-based compensation, and amortization, with Q2 2025 Adjusted EBITDA at **$112.7 million** and H1 at **$237.5 million** Adjusted EBITDA Reconciliation (As of June 30) | Metric | Q2 2025 (thousand USD) | Q2 2024 (thousand USD) | H1 2025 (thousand USD) | H1 2024 (thousand USD) | | :-------------------------------- | :----------------------- | :----------------------- | :-------------------- | :-------------------- | | GAAP Net Income (Loss) | (4,649) | 4,828 | (3,309) | 14,162 | | Income Tax Benefit | (30,807) | (19,081) | (30,187) | (44,545) | | Interest Expense | 29,552 | 38,333 | 59,009 | 77,430 | | Stock-Based Compensation Expense | 71,886 | 68,576 | 133,502 | 132,677 | | Amortization of Intangible Assets | 25,548 | 32,745 | 50,870 | 65,518 | | Adjusted EBITDA | 112,674 | 118,713 | 237,543 | 230,187 | [Adjusted Unlevered Free Cash Flow Reconciliation](index=15&type=section&id=Adjusted%20Unlevered%20Free%20Cash%20Flow%20Reconciliation) This section reconciles operating cash flow to Adjusted Unlevered Free Cash Flow (After-Tax) by adjusting for property and equipment purchases, interest payments, and other specific costs, with Q2 2025 Adjusted Unlevered Free Cash Flow at **$58.705 million** and a margin of **14%** Adjusted Unlevered Free Cash Flow Reconciliation (As of June 30) | Metric | Q2 2025 (thousand USD) | Q2 2024 (thousand USD) | H1 2025 (thousand USD) | H1 2024 (thousand USD) | | :-------------------------------- | :----------------------- | :----------------------- | :-------------------- | :-------------------- | | Net Cash from Operating Activities | 24,576 | 24,852 | 178,750 | 156,494 | | Less: Purchases of Property and Equipment | (1,561) | (1,175) | (4,708) | (1,565) | | Adjusted Free Cash Flow (After-Tax) | 28,480 | 33,315 | 184,453 | 178,513 | | Add: Interest Paid | 30,225 | 37,922 | 60,227 | 75,704 | | Adjusted Unlevered Free Cash Flow (After-Tax) | 58,705 | 71,237 | 244,680 | 254,217 | | Adjusted Unlevered Free Cash Flow (After-Tax) Margin | 14% | 18% | 30% | 32% | [Key Business Metrics (ARR, NRR, Customers, Transactions)](index=16&type=section&id=Key%20Business%20Metrics%20%28ARR%2C%20NRR%2C%20Customers%2C%20Transactions%29) This section presents Informatica's key business metrics, including various Annual Recurring Revenue (ARR) types, Cloud Subscription Net Retention Rate (NRR), cloud subscription ARR customer count, and monthly cloud transaction volume, demonstrating the company's continuous cloud business growth and expanding customer base Key Business Metrics (As of June 30) | Metric | 2025 (thousand USD) | 2024 (thousand USD) | | :---------------------------------------- | :---------------- | :---------------- | | Cloud Subscription Annual Recurring Revenue | 900,963 | 702,600 | | Self-Managed Subscription Annual Recurring Revenue | 399,177 | 493,935 | | Perpetual License Maintenance Annual Recurring Revenue | 419,548 | 471,697 | | Total Annual Recurring Revenue | 1,719,688 | 1,668,232 | | Cloud Subscription Net Retention Rate (Global Parent Level) | 120% | 126% | | Total Cloud Subscription Annual Recurring Revenue Customers | 2,509 | 2,340 | | Cloud Transactions Processed Monthly (trillion) | 128.2 | 96.6 | [Disaggregation of Revenues](index=17&type=section&id=Disaggregation%20of%20Revenues) This section details Informatica's revenue sources by recognition method and type, highlighting strong cloud subscription revenue growth and declining self-managed subscription support, maintenance, and license revenues, reflecting the company's ongoing shift to a cloud-first strategy Disaggregation of Revenues (As of June 30) | Revenue Type | Q2 2025 (thousand USD) | Q2 2024 (thousand USD) | H1 2025 (thousand USD) | H1 2024 (thousand USD) | | :---------------------------------------- | :----------------------- | :----------------------- | :-------------------- | :-------------------- | | Cloud Subscription | 209,931 | 161,422 | 409,866 | 312,860 | | Self-Managed Subscription Support and Other | 40,964 | 48,908 | 82,460 | 97,499 | | Maintenance | 102,919 | 116,482 | 206,128 | 234,160 | | Total Revenue Recognized Over Time | 353,814 | 326,812 | 698,454 | 644,519 | | Self-Managed Subscription License (Recognized at a Point in Time) | 36,139 | 53,976 | 78,718 | 105,945 | | Professional Services | 17,391 | 19,837 | 34,069 | 38,768 | | Total Revenue | 407,344 | 400,625 | 811,241 | 789,232 | [Net Debt Reconciliation](index=17&type=section&id=Net%20Debt%20Reconciliation) This section provides Informatica's net debt reconciliation, showing the company's net debt decreased to **$515 million** as of June 30, 2025, from **$591 million** at December 31, 2024 Net Debt Reconciliation (As of) | Metric | June 30, 2025 (million USD) | December 31, 2024 (million USD) | | :---------------------------------------- | :----------------------- | :----------------------- | | USD Term Loan | 1,814 | 1,823 | | Less: Cash, Cash Equivalents, and Short-Term Investments | (1,299) | (1,232) | | Total Net Debt | 515 | 591 | [Additional Company Information](index=3&type=section&id=Additional%20Company%20Information) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements regarding Informatica's proposed acquisition by Salesforce, management plans, product advantages, and market partnerships, which inherently involve risks and uncertainties that could cause actual results to differ materially from expectations, advising investors to exercise caution and refer to SEC filings - The press release contains forward-looking statements regarding Informatica's proposed acquisition by Salesforce, management plans, the potential benefits of AI and machine learning in products, and market and partnership relationships[15](index=15&type=chunk)[16](index=16&type=chunk) - Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations, including those related to the Salesforce acquisition, macroeconomic conditions, customer attraction and retention, product development, and competition[17](index=17&type=chunk) - Investors should not place undue reliance on forward-looking statements and should consult the "Risk Factors" sections in the company's annual report on Form 10-K and quarterly reports on Form 10-Q filed with the SEC for additional information[16](index=16&type=chunk)[18](index=18&type=chunk) [About Informatica & Contacts](index=7&type=section&id=About%20Informatica%20%26%20Contacts) Informatica is an AI-driven enterprise cloud data management leader, empowering businesses to unlock the full value of data and AI through its CLAIRE® AI-powered Intelligent Data Management Cloud (IDMC) platform, natively integrated with major cloud providers, serving over 5,000 global customers, with investor and public relations contacts also provided - Informatica is an AI-driven enterprise cloud data management leader, empowering businesses to unlock the full value of data and AI through its Intelligent Data Management Cloud (IDMC) platform[36](index=36&type=chunk) - The IDMC platform, powered by CLAIRE® AI, offers a suite of industry-leading integrated solutions to connect, manage, and unify data across any cloud, hybrid, or multi-cloud environment[36](index=36&type=chunk) - The platform is natively integrated with all major cloud providers, data warehouses, and analytics tools, serving over **5,000 customers** in nearly **100 countries**, including more than **80 Fortune 100 companies**[36](index=36&type=chunk)

Core Viewpoint - The market anticipates a year-over-year decline in earnings for Informatica Inc. (INFA) with flat revenues when it reports results for the quarter ended June 2025, making the comparison between actual results and estimates crucial for stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on August 6, with a consensus EPS estimate of $0.21 per share, reflecting an 8.7% decline year-over-year. Revenues are projected to be $400.61 million, unchanged from the previous year [3][2]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly reassessed their initial estimates during this period [4]. Earnings Surprise Prediction - The Zacks Earnings ESP (Expected Surprise Prediction) model suggests that a positive Earnings ESP reading indicates a likely earnings beat, particularly when combined with a strong Zacks Rank. Informatica Inc. has a positive Earnings ESP of +0.96% and a Zacks Rank of 3, suggesting a higher likelihood of beating the consensus EPS estimate [11][9]. Historical Performance - In the last reported quarter, Informatica Inc. met the consensus EPS estimate of $0.22 per share, resulting in no surprise. Over the past four quarters, the company has beaten consensus EPS estimates two times [12][13]. Industry Comparison - Porch Group, Inc. (PRCH), another player in the Zacks Internet - Software industry, is expected to report a loss per share of $0.13 for the same quarter, indicating an 80% year-over-year change. Its revenues are expected to decline by 12.9% to $96.56 million [17].

Group 1 - The article compares two stocks in the Internet - Software sector: Nice (NICE) and Informatica Inc. (INFA), evaluating which presents a better value opportunity for investors [1] - NICE has a Zacks Rank of 2 (Buy), indicating a stronger improvement in its earnings outlook compared to INFA, which has a Zacks Rank of 3 (Hold) [3][7] - Value investors utilize various valuation metrics, including P/E ratio, P/S ratio, earnings yield, and cash flow per share, to assess whether a company is undervalued [4] Group 2 - NICE has a forward P/E ratio of 13.76, while INFA has a forward P/E of 21.17, suggesting that NICE is more attractively priced [5] - The PEG ratio for NICE is 1.25, compared to INFA's PEG ratio of 2.79, indicating that NICE may offer better value relative to its expected earnings growth [5] - NICE's P/B ratio is 3.08, while INFA's P/B ratio is 3.24, further supporting the notion that NICE is the superior value option based on these metrics [6]

Core Insights - The acquisition of Informatica by Salesforce for approximately $8 billion signifies a strategic shift in the SaaS landscape, emphasizing data governance as a core platform capability rather than a supplementary feature [1][2][18] - The competition in AI is transitioning from isolated functionalities to the integration of AI within enterprise operational logic, focusing on building a "trustworthy, controllable, and sustainable" intelligent system [1][18] Group 1: Salesforce and Informatica Acquisition - Salesforce's acquisition of Informatica is seen as a structural enhancement to its SaaS platform capabilities, marking a deep-seated shift towards prioritizing data governance [1][18] - The market reacted positively to Informatica's stock, which rose by 11% within 24 hours post-announcement, indicating recognition of the value of data governance [2] - Salesforce's AI strategy is evolving from a model-first approach to ensuring data safety and accessibility, with Informatica's capabilities being crucial for this transition [7][11] Group 2: Informatica's Value Proposition - Informatica has been a pioneer in data integration and governance since the 1990s, providing essential components for enterprise data architecture, including master data management and data quality control [3][6] - The company operates on a subscription model, focusing on stable revenue growth rather than explosive hits, which aligns with the needs of large enterprises [3] - Informatica's comprehensive governance capabilities, including a metadata-driven unified data lineage map, are increasingly indispensable in today's fragmented data landscape [6][10] Group 3: Industry Trends and Challenges - The SaaS industry is experiencing a collective transformation where AI is no longer an add-on but is being integrated into the foundational architecture of platforms, reshaping data, permissions, and compliance systems [14][18] - The challenges faced by SaaS companies include issues like data duplication, interface chaos, and lack of unified data standards, which necessitate robust governance mechanisms [15][17] - According to Gartner, by 2026, over 70% of enterprise-level large model deployment projects will rely on independent data governance modules, highlighting the growing importance of governance in AI investments [15] Group 4: Future Implications - The acquisition of Informatica is a strategic bet on "data autonomy," positioning Salesforce to leverage trustworthy data management as a competitive advantage in the evolving SaaS landscape [13][18] - As AI becomes central to enterprise automation, the ability to manage and govern data effectively will dictate the future of software platforms [18]

Group 1 - Five9 (FIVN) has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Informatica Inc. (INFA) has a Zacks Rank of 3 (Hold) [3] - Value investors typically analyze traditional metrics such as P/E ratio, P/S ratio, earnings yield, and cash flow per share to identify undervalued stocks [4] - FIVN has a forward P/E ratio of 9.66 and a PEG ratio of 0.62, while INFA has a forward P/E of 20.90 and a PEG ratio of 2.75, suggesting FIVN is more attractively valued [5][6] Group 2 - FIVN's P/B ratio is 3.06, compared to INFA's P/B of 3.2, further indicating FIVN's relative valuation strength [6] - Based on the valuation metrics and improving earnings outlook, FIVN is considered the superior value option at this time [7]

Core Insights - Salesforce, the world's leading CRM platform, has acquired AI Agent platform Moonhub to enhance its Agentforce platform [1] - The entire Moonhub team will join Salesforce to collaborate on the development of Agentforce, which focuses on intelligent agent development [1] - This acquisition follows Salesforce's recent $8 billion acquisition of Informatica, indicating a strategic push to strengthen its capabilities in the intelligent agent sector [1] Company Developments - The acquisition of Moonhub is part of Salesforce's ongoing strategy to expand its Agentforce platform [1] - Salesforce is committed to significantly developing the intelligent agent space, as evidenced by its recent acquisitions [1] Industry Trends - The move reflects a broader trend in the CRM industry towards integrating AI and intelligent agents to enhance customer relationship management [1] - The focus on intelligent agents is likely to drive innovation and competition within the CRM sector [1]

Core Viewpoint - Investors in the Internet - Software sector should consider StoneCo Ltd. (STNE) and Informatica Inc. (INFA) for potential value opportunities, with STNE currently showing stronger performance metrics [1]. Valuation Metrics - STNE has a forward P/E ratio of 9.37, significantly lower than INFA's forward P/E of 20.91 [5]. - The PEG ratio for STNE is 0.36, indicating a more favorable valuation compared to INFA's PEG ratio of 2.75 [5]. - STNE's P/B ratio stands at 1.96, while INFA has a P/B ratio of 3.20, further highlighting STNE's relative undervaluation [6]. Analyst Outlook - STNE holds a Zacks Rank of 1 (Strong Buy), indicating a positive earnings estimate revision activity, while INFA has a Zacks Rank of 3 (Hold) [3]. - The stronger estimate revision activity for STNE suggests a more favorable analyst outlook compared to INFA [7]. Value Grades - STNE has a Value grade of B, whereas INFA has a Value grade of D, reflecting the overall assessment of their valuation metrics [6].