Informatica (INFA) - 2025 Q3 - Quarterly Results

Revenue Growth - Cloud Subscription Annualized Recurring Revenue (ARR) increased to $969 million, representing 29.5% year-over-year growth[7] - Total ARR increased to $1.75 billion, representing 3.9% year-over-year growth[7] - GAAP Total Revenues increased to $439.2 million, representing 3.9% year-over-year growth[8] - GAAP Cloud Subscription Revenue increased to $230.4 million, representing 31.0% year-over-year growth[8] - Subscription revenue for Q3 2025 reached $320.661 million, a 11.3% increase from $287.934 million in Q3 2024[41] - Total revenues for the nine months ended September 30, 2025, were $1.250 billion, compared to $1.212 billion for the same period in 2024, reflecting a growth of 3.1%[41] - Total GAAP revenue for Q3 2025 reached $439,161,000, an increase of 3.9% from $422,481,000 in Q3 2024[51] - Total Annual Recurring Revenue (ARR) rose to $1,747,823,000 in Q3 2025, compared to $1,681,776,000 in Q3 2024, marking a 3.9% increase[52] Customer Metrics - Achieved a Cloud Subscription Net Retention Rate (NRR) of 120% as of September 30, 2025[12] - Reported 2,545 Cloud Subscription ARR customers, an increase of 6% year-over-year[12] - The Cloud Subscription Net Retention Rate (NRR) is crucial for measuring the growth from existing customers, reflecting the company's ability to sell additional products[31] - The Cloud Subscription Net Retention Rate decreased to 120% in Q3 2025 from 126% in Q3 2024[52] Operational Performance - Processed 143.3 trillion cloud transactions per month, an increase of 41% year-over-year[12] - Total number of cloud transactions processed per month increased to 143.3 trillion in Q3 2025, up from 101.3 trillion in Q3 2024[54] Profitability - The company reported a net income of $3.998 million for Q3 2025, compared to a net loss of $13.985 million in Q3 2024[41] - Operating income for Q3 2025 was $60.866 million, compared to $50.933 million in Q3 2024, showing an increase of 19.0%[41] - Non-GAAP net income for the three months ended September 30, 2025, reached $115,220 thousand, up from $88,948 thousand in the prior year, representing a year-over-year increase of 29.6%[47] - Non-GAAP income from operations for Q3 2025 was $161,449,000, compared to $151,044,000 in Q3 2024, reflecting a 6.5% growth[48] Expenses and Investments - Research and development expenses for Q3 2025 were $85.356 million, up from $80.316 million in Q3 2024, indicating a continued investment in innovation[41] - Total operating expenses for the nine months ended September 30, 2025, were $912.506 million, slightly up from $901.832 million in the same period of 2024[41] Cash Flow and Financial Position - Cash and cash equivalents at the end of the period were $1,349,474 thousand, compared to $912,460 thousand at the beginning of the period, marking a net increase of 47.9%[45] - The company reported net cash provided by operating activities of $148,707 thousand for the three months ended September 30, 2025, compared to $106,498 thousand in the prior year, an increase of 39.6%[45] - Total current liabilities decreased to $946,200 thousand as of September 30, 2025, down from $1,090,717 thousand at the end of 2024, a reduction of 13.2%[43] - Total stockholders' equity increased to $2,448,570 thousand as of September 30, 2025, from $2,307,314 thousand at the end of 2024, reflecting a growth of 6.1%[43] - Total net debt as of September 30, 2025, was $337 million, down from $591 million as of December 31, 2024[55] Strategic Initiatives - Launched new capabilities in CLAIRE GPT, enhancing natural language understanding and data workflow automation[12] - Announced expansion of partnership with Oracle, including new capabilities on Oracle Cloud Infrastructure[14] - Informatica is in the process of being acquired by Salesforce, expected to close in Q4 FY 2026 or early FY 2027[15] Revenue Components - Maintenance and professional services revenue decreased to $118.500 million in Q3 2025 from $134.547 million in Q3 2024, a decline of 11.9%[41] - The company expects a decrease in Self-managed Subscription ARR as it shifts focus from perpetual licenses to cloud solutions[28]