Informatica (INFA) - 2024 Q1 - Quarterly Results

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].