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]

High Growth Subscription ARR Cloud Differentiation Q2 2023 Adjusted Unlevered Free Cash Flow Margin (after-tax)6 Guidance Q2 2023 Results Q2 2023 -3% YoY Change at Midpoint Subscription ARR Product Innovation: • Expanded partnership with Amazon: launched Amazon Web Services (AWS) Point of Delivery (PoD) in Japan to scale our market reach in Asia Pacific; launched Informatica's secure agent, Private Link, on AWS; and announced the availability of Cloud Data Integration-Free service for Amazon Redshift. • Exp ...

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 June 30, 2023 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. ____________________________ ...

Financial Data and Key Metrics Changes - Total revenues increased by 1% year-over-year, driven by a slower-than-expected decline in maintenance revenue and strong renewal rates [4][41] - Non-GAAP operating income was $85 million, with an operating margin of 23.2% [4][68] - Subscription ARR grew by 20% year-over-year, with cloud subscription ARR increasing by 41% year-over-year [20][61] - GAAP total revenues were $365 million, exceeding guidance by over $3 million [41] - Gross margin remained stable at 80% [46][68] Business Line Data and Key Metrics Changes - Cloud subscription ARR was $483 million, representing 47% of total subscription ARR, up from 40% a year ago [37] - Maintenance ARR declined by 6% year-over-year to $513 million, comprising 33% of total ARR [39][61] - Subscription revenue increased by 8% year-over-year to $214 million, representing 59% of total revenue [44] Market Data and Key Metrics Changes - U.S. revenue grew by 1% year-over-year to $233 million, accounting for 64% of total revenue [45] - International revenue was flat year-over-year at $132 million, but would have grown by 5% year-over-year using last year's exchange rates [45] Company Strategy and Development Direction - The company is focused on a cloud-only consumption-driven strategy, with over 90% of the new business pipeline comprised of cloud opportunities [5][20] - The IDMC platform supports multi-hybrid environments, allowing customers to transition from on-premise to cloud solutions [6] - The introduction of a flexible IPU consumption program aims to enhance customer engagement and simplify access to the IDMC platform [21][84] Management's Comments on Operating Environment and Future Outlook - The management noted elongated sales cycles and deal scrutiny due to the macroeconomic environment, but cloud adoption remains healthy [7] - The company expects to maintain its full-year guidance while navigating an uncertain macroeconomic environment [24][70] - Management expressed confidence in the ongoing transition to a cloud-focused sales model, with expectations for continued growth in cloud subscription ARR [21][87] Other Important Information - The company reported a strong cash position with cash plus short-term investments of $798 million and net debt of $1.06 billion [69] - The company was recognized as a leader in the Forrester Wave: Data Management for Analytics, Q1 2023 report [12] - The company plans to host an Investor Day on September 5 in San Francisco [90] Q&A Session Summary Question: How does Informatica play into cloud cost optimization? - Management noted that their consumption model differs from hyperscalers, allowing customers to pay an annual fee for IPUs, which can be deployed across the platform [80][98] Question: What is the outlook for large customer momentum? - Management indicated that new bookings for cloud were primarily from new workloads, not migrations from self-managed customers [122] Question: How has the tone of customer conversations changed? - Management reported no significant changes in customer conversations compared to previous quarters, maintaining a consistent outlook [130] Question: What are the drivers for the cloud net retention rate increase? - Management highlighted that the increase in cloud net retention rate reflects strong customer engagement and usage of the IDMC platform [142] Question: How does the company view the competitive landscape? - Management acknowledged increased competition from API integration companies but emphasized their unique value proposition in the market [146]