Informatica (INFA) - 2025 Q2 - Quarterly Report

Cover Page Information This section provides essential company identification, filing details, and stock information for Informatica Inc Registrant Information This section provides basic company identification, the type of SEC filing (Form 10-Q), and details regarding its Class A Common Stock, including its trading symbol and exchange - The registrant is Informatica Inc., a Delaware corporation, filing a Quarterly Report on Form 10-Q for the period ended June 30, 2025[2] Securities Registered | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :-------------------------------- | :---------------- | :---------------------------------------- | | Class A Common Stock, $0.01 par value per share | INFA | The New York Stock Exchange | - As of July 28, 2025, the company had 260,676,335 shares of Class A common stock and 44,049,523 shares of Class B-1 common stock outstanding[6] Table of Contents This section lists all chapters and sub-sections of the report for easy navigation Special Note Regarding Forward-Looking Statements This section highlights the inherent uncertainties and risks associated with forward-looking statements within the report Nature of Forward-Looking Statements This section clarifies that the report contains forward-looking statements subject to substantial risks and uncertainties, primarily based on current expectations and projections - Forward-looking statements relate to future events or financial/operating performance and involve substantial risks and uncertainties[10] - The company cautions against relying on forward-looking statements as predictions, as actual results could differ materially due to various factors, including those described in the 'Risk Factors' section[12] - The company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the report date, except as legally required[13] Part I. Financial Information This part presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis Item 1. Financial Statements This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, comprehensive income, stockholders' equity, and cash flows, along with detailed notes explaining accounting policies and significant financial activities Condensed Consolidated Balance Sheets The condensed consolidated balance sheets show a slight decrease in total assets and liabilities, while total stockholders' equity increased from December 31, 2024, to June 30, 2025 Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :-------------- | :---------------- | | Total assets | $5,254,719 | $5,279,532 | | Total liabilities | $2,870,182 | $2,972,218 | | Total stockholders' equity | $2,384,537 | $2,307,314 | Condensed Consolidated Statements of Operations The company reported a net loss for the three and six months ended June 30, 2025, compared to net income in the prior year periods, despite an increase in total revenues Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenues | $407,344 | $400,625 | $811,241 | $789,232 | | Gross profit | $326,029 | $317,730 | $648,914 | $624,582 | | (Loss) income from operations | $(89) | $9,464 | $33,738 | $12,689 | | Net (loss) income | $(4,649) | $4,828 | $(3,309) | $14,162 | | Basic Net (loss) income per share | $(0.02) | $0.02 | $(0.01) | $0.05 | | Diluted Net (loss) income per share | $(0.02) | $0.02 | $(0.01) | $0.05 | Condensed Consolidated Statements of Comprehensive Income (Loss) The company reported total comprehensive income for the three and six months ended June 30, 2025, a significant improvement from comprehensive losses in the prior year, primarily due to a positive change in foreign currency translation adjustment Condensed Consolidated Statements of Comprehensive Income (Loss) Highlights (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net (loss) income | $(4,649) | $4,828 | $(3,309) | $14,162 | | Change in foreign currency translation adjustment, net of tax | $65,610 | $(5,352) | $100,972 | $(25,332) | | Total comprehensive income (loss), net of tax effect | $32,660 | $(481) | $56,724 | $(11,168) | Condensed Consolidated Statements of Stockholders' Equity Stockholders' equity increased from December 31, 2024, to June 30, 2025, driven by stock-based compensation, issuance of shares under equity plans, and other comprehensive income, partially offset by share repurchases and net loss Condensed Consolidated Statements of Stockholders' Equity Highlights (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :----------------------------- | :----------------------------- | | Balances, December 31, | $2,307,314 | $2,212,598 | | Stock-based compensation | $130,570 | $129,571 | | Payments for repurchases of common stock | $(100,000) | — | | Net (loss) income | $(3,309) | $14,162 | | Other comprehensive income (loss) | $60,033 | $(25,330) | | Balances, June 30, | $2,384,537 | $2,325,816 | Condensed Consolidated Statements of Cash Flows Net cash provided by operating activities increased for the six months ended June 30, 2025, compared to the prior year, while investing activities shifted from a net use to a net provide, and financing activities saw a significant increase in cash used, primarily due to common stock repurchases Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $178,750 | $156,494 | | Net cash provided by / (used in) investing activities | $45,336 | $(67,210) | | Net cash used in financing activities | $(120,793) | $(15,910) | | Net increase in cash and cash equivalents | $139,815 | $66,022 | | Cash and cash equivalents at end of period | $1,052,275 | $798,465 | Notes to Condensed Consolidated Financial Statements The notes provide detailed explanations of the company's accounting policies, significant transactions, and financial instrument details, offering crucial context for the condensed consolidated financial statements Note 1. Organization and Description of Business This note describes Informatica's core business as an AI-enabled data management platform and details the proposed merger with Salesforce, including terms, expected timeline, and associated termination fees - Informatica delivers AI-enabled data management products on a cloud-native platform, connecting, managing, and unifying data across multi-vendor, multi-cloud, and hybrid systems[28] - On May 26, 2025, Informatica entered into a Merger Agreement with Salesforce, Inc., under which Informatica will become a wholly-owned subsidiary of Salesforce[29] - Class A and Class B-1 common stock holders will receive $25.00 per share in cash, while Class B-2 common stock holders will receive $0.0000100115 per share