Financial Data and Key Metrics Changes - Total ARR finished the year at $1.73 billion, an increase of 6.1% year-over-year, which was 1% below the midpoint of guidance [34] - Cloud subscription ARR was $827 million, a 34% increase year-over-year, representing 48% of total ARR, up from 38% a year ago [35] - GAAP total revenues for Q4 were $428 million, a decrease of 3.8% year-over-year [42] Business Line Data and Key Metrics Changes - Cloud subscription ARR grew 34% year-over-year, with approximately 68% of cloud net new ARR coming from new cloud workloads [15][36] - Self-managed subscription ARR declined to $447 million, down 5% sequentially and 13% year-over-year [37] - Maintenance ARR was down approximately 9% year-over-year to $451 million, greater than expected due to modernization roll-off [38] Market Data and Key Metrics Changes - US revenue declined 6% year-over-year to approximately $264 million, representing 62% of total revenue [48] - International revenue declined 1% year-over-year to $164 million, representing 38% of total revenue [48] Company Strategy and Development Direction - The company is in the final phase of its transformation to a cloud-only consumption-driven strategy, having fully committed to this direction at the beginning of 2023 [13] - The company aims to reach $1 billion in cloud subscription ARR by 2025, accounting for almost 60% of total ARR [15] - The company continues to focus on modernization of its on-prem customer base to the IDMC platform, with 9.4% of maintenance and self-managed ARR modernized to the cloud [40] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the fourth quarter did not meet expectations due to lower renewal rates and execution issues related to the cloud-only transformation [7][28] - The company remains confident in the long-term health of its cloud business despite short-term challenges [14] - Management has adjusted expectations for 2025 growth and profitability projections based on recent performance [12][56] Other Important Information - The company processed over 110 trillion cloud transactions per month on the IDMC platform, growing over 29% year-over-year [20] - The company has a strong cash position with cash plus short-term investments of $1.2 billion, an increase of $240 million year-over-year [55] Q&A Session Summary Question: What happened with cloud retention rates and how is the company addressing it? - Management identified operational and organizational issues affecting retention rates, including changes in project sponsorship and internal communication failures [70][72] - The company is implementing changes to improve collaboration and incentives among teams to enhance renewal rates [76] Question: Why are renewals more difficult now despite being mission-critical? - Management noted that operational execution issues contributed to the decline in renewals, but did not observe significant changes in competitive dynamics or customer budgets [88][90] - The churn observed was often partial, indicating customers are still engaged but may be reducing their spend [91] Question: Why is GAAP total revenue difficult to guide? - The complexity arises from ASC 606 accounting standards, where renewal rates and contract term lengths significantly impact revenue recognition [101][104] - A decline in renewal rates and shorter contract terms can lead to outsized negative impacts on revenue forecasts [102][104] Question: What is the outlook for modernization deals? - The company expects a mix of 30-70 for modernization versus net new customers, with modernization deals primarily driven by Power Center Cloud Edition [109] - Management anticipates variability in quarterly results but expects overall growth in modernization opportunities [110] Question: What specific actions are being taken to address execution issues? - Management is focusing on operational improvements and has not factored in potential improvements into the 2025 guidance, indicating a cautious approach [123]

Informatica Inc. (INFA) came out with quarterly earnings of $0.41 per share, beating the Zacks Consensus Estimate of $0.38 per share. This compares to earnings of $0.32 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.89%. A quarter ago, it was expected that this company would post earnings of $0.30 per share when it actually produced earnings of $0.28, delivering a surprise of -6.67%.Over the last four quarters, the company ...

Investor Presentation Fourth Quarter 2024 Ended December 31, 2024 February 13, 2025 Safe Harbor and Statement Regarding Use of Non-GAAP Financial Measures This presentation contains forward-looking statements about Informatica and the environment in which Informatica operates. These statements may relate to, but are not limited to, expectations of future operating results or financial performance, market size and growth opportunities, the calculation of certain of our key financial and operating metrics, ca ...

Revenue Performance - GAAP Total Revenues for Q4 2024 decreased 3.8% year-over-year to $428.3 million, missing guidance by $29.7 million[3]. - Total revenues for Q4 2024 were $428.3 million, a decrease of 3.9% compared to $445.2 million in Q4 2023[49]. - Total ARR for the full-year 2024 increased 6% year-over-year to $1.73 billion[4]. - Subscription revenue for the full year 2024 reached $1.1 billion, up 9.4% from $1.0 billion in 2023[49]. - Total Annual Recurring Revenue (ARR) increased to $1.725 billion in 2024 from $1.626 billion in 2023, marking a growth of 6.1%[61]. Cloud Subscription Metrics - Cloud Subscription Annual Recurring Revenue (ARR) increased 34% year-over-year to $827 million in Q4 2024[4]. - Cloud Subscription ARR rose to $827.3 million in 2024, up from $616.8 million in 2023, indicating a significant increase of 34.1%[61]. - The company reported 284 customers spending over $1 million in subscription ARR, an 18% increase year-over-year[13]. - Subscription Net Retention Rate at the end-user level was 104% in 2024, down from 106% in 2023[61]. - Maintenance Renewal Rate decreased to 92% in 2024 from 95% in 2023[63]. Profitability and Income - GAAP Operating Income for the full-year 2024 was $127 million, with a GAAP Operating Margin of 7.7%[8]. - Non-GAAP Operating Income for the full-year 2024 was $537.5 million, with a Non-GAAP Operating Margin of 32.8%[8]. - Net income for Q4 2024 was $9.8 million, compared to a net income of $64.3 million in Q4 2023[49]. - Non-GAAP net income for Q4 2024 was $128,601, up 32.2% from $97,297 in Q4 2023[55]. - GAAP income from operations for Q4 2024 was $63,426, compared to $36,832 in Q4 2023, reflecting a growth of 72.1%[56]. Cash Flow and Financial Position - Cash and cash equivalents increased to $912.5 million as of December 31, 2024, up from $732.4 million in 2023[51]. - Total cash provided by operating activities for the twelve months ended December 31, 2024, was $409,850, an increase of 53.7% from $266,347 in 2023[53]. - Adjusted Unlevered Free Cash Flow (after-tax) is expected to be in the range of $540.0 million to $580.0 million, representing approximately -3.3% year-over-year decrease at the midpoint[23]. - Adjusted Free Cash Flows (after-tax) margin improved to 35% in Q4 2024 from 26% in Q4 2023[59]. - Net Debt as of December 31, 2024, was $1.823 billion, compared to $1.842 billion in 2023[67]. Future Guidance and Expectations - The company expects Cloud Subscription ARR to reach $1 billion by the end of 2025[2]. - Guidance for Q1 2025 projects Total Revenues between $380 million and $400 million, representing approximately 0.4% year-over-year growth at the midpoint[18]. - GAAP Total Revenues are expected to be in the range of $1.670 billion to $1.720 billion, representing approximately 3.4% year-over-year growth at the midpoint[23]. - Total ARR is expected to be in the range of $1.755 billion to $1.795 billion, representing approximately 2.9% year-over-year growth at the midpoint[23]. - Cloud Subscription ARR is expected to be in the range of $1.019 billion to $1.051 billion, representing approximately 25.1% year-over-year growth at the midpoint[23]. Operational Insights - The company processed 110.7 trillion cloud transactions per month in Q4 2024, a 29% increase year-over-year[13]. - The transition from perpetual licenses to cloud offerings is expected to impact Maintenance ARR in future quarters[36]. - The company emphasizes the importance of Cloud Subscription NRR as a metric for understanding growth within its cloud subscription customer base[37]. - The company is focusing on reducing operating expenses and adjusting cash flows in light of current business needs and priorities[25]. - The company plans to provide a reconciliation of non-GAAP financial measures to GAAP measures for better transparency[28].

Financial Data and Key Metrics - Total revenues grew 3.4% YoY, and total ARR grew 6.7% YoY, both exceeding the midpoint of guidance ranges [8] - Cloud subscription ARR grew 36% YoY, reaching $748 million, representing 44% of total ARR [33] - Non-GAAP operating income grew 18% YoY, exceeding the high end of the guidance range [8] - Adjusted EBITDA was $155 million, and net income was $89 million, with net income per diluted share at $0.28 [43] - Cash plus short-term investments increased by $371 million YoY to $1.24 billion, with a net leverage ratio of 1.1x [45] Business Line Performance - Cloud subscription ARR is well diversified, with approximately 50% from integration (data integration, app, and API integration) and the other 50% from master data management, data catalog, and data governance use cases [11] - Customers spending over $1 million in subscription ARR increased by 18% YoY, while those spending over $5 million almost doubled YoY [10] - Average subscription ARR per customer reached over $327,000, a 15% increase YoY [10] - PowerCenter Cloud Edition represented over 90% of all modernization deals in Q3 [15] Market Performance - U.S. revenue declined 1% YoY to $262 million, while international revenue grew 11% YoY to $161 million [41] - Approximately 76% of cloud net new ARR in the trailing 12 months came from new cloud workloads and expansions [9] - 24% of cloud net new ARR in the trailing 12 months came from on-prem to cloud migrations [15] Strategic Direction and Industry Competition - The company is executing a cloud-only, consumption-driven strategy, focusing on AI-powered data management and GenAI capabilities [5][7] - Informatica is recognized as a leader in enterprise data catalogs and master data management, with high ratings in industry reports [20] - The company has expanded its GenAI Blueprints to all six strategic ecosystems, including AWS, Azure, Databricks, Google Cloud, Oracle, and Snowflake [18] Management Commentary on Operating Environment and Future Outlook - The macro environment remained stable during Q3, consistent with observations throughout the year [9] - Management reaffirmed full-year guidance, expecting cloud subscription ARR to grow 35.5% YoY in Q4 [47] - The company plans to expand CLAIRE GPT to EMEA, Asia Pacific, and Canada later in the quarter [27] Other Important Information - The company achieved a historic milestone, processing over 100 trillion cloud transactions per month [6] - Informatica was recognized as Oracle Cloud's Global ISV Business Impact Partner of the Year [17] - The Board of Directors approved a new share repurchase authorization of up to $400 million [50] Q&A Session Summary Question: Medium-term cloud subscription ARR growth expectations - The company remains confident in its medium-term guidance of 31% to 33% cloud subscription ARR growth between fiscal 2023 and 2026, with current performance exceeding expectations [56][57][58] Question: Sequential decline in $1M+ customers - The decline was attributed to state and local customers downsizing post-COVID use cases and some customers completing large migrations, leading to maintenance roll-offs [59][60] Question: Q4 guidance and budget flush expectations - Management expects a solid Q4, with no significant changes in tone or linearity compared to previous quarters [62][63][64] Question: Cloud growth breakdown and trends - Growth is well-diversified across data integration, master data management, and governance, with customers shifting from defensive cost-cutting to transformational initiatives [65][66][67] Question: Migration trends and PowerCenter Cloud momentum - Migration momentum remains strong, with PowerCenter Cloud driving modernization efforts, and the company expects this trend to continue into 2025 [69][71][72] Question: Public sector trends - Public sector customers are accelerating digital transformation and modernization efforts, with a strong focus on cloud adoption and GenAI [81][82] Question: Open Table formats and Informatica utilization - Early adoption of Open Table formats like Iceberg is driving increased demand for data preparation and quality services, benefiting Informatica's IP consumption [84][85][86] Question: Migration vs. net new ARR contribution - Migration contribution to net new ARR saw a slight downtick in Q3 but is expected to remain in the 25% to 30% range for the year, with long-term growth potential [95][96][97] Question: Confidence in Q4 net new ARR guidance - The company's confidence in Q4 net new ARR guidance is driven by a larger base, increased pipeline, and strong renewal rates [91][92][93]

Informatica Inc. (INFA) came out with quarterly earnings of $0.28 per share, missing the Zacks Consensus Estimate of $0.30 per share. This compares to earnings of $0.27 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -6.67%. A quarter ago, it was expected that this company would post earnings of $0.22 per share when it actually produced earnings of $0.23, delivering a surprise of 4.55%. Over the last four quarters, the compan ...

Company Performance - Informatica Inc. reported quarterly earnings of $0.23 per share, surpassing the Zacks Consensus Estimate of $0.22 per share, and showing an increase from $0.17 per share a year ago [8] - The company posted revenues of $400.63 million for the quarter ended June 2024, which was a 6.5% increase from $375.99 million in the same quarter last year, but missed the Zacks Consensus Estimate by 0.34% [2] - Informatica has exceeded consensus EPS estimates four times over the last four quarters [9] Stock Performance - Informatica Inc. shares have declined approximately 14.2% since the beginning of the year, while the S&P 500 has gained 14.5% [3] - The current consensus EPS estimate for the upcoming quarter is $0.30 on revenues of $433.15 million, and for the current fiscal year, it is $1.11 on revenues of $1.69 billion [5] Industry Outlook - The Internet - Software industry, to which Informatica belongs, is currently ranked in the top 41% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [13] - The performance of Informatica's stock may be influenced by the overall industry outlook and trends in earnings estimate revisions [4][11]

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 ...