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].

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Table of Contents _____________________________ _____________________________ 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 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 September 30, 2024 OR o TRANS ...

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 ...

Press release dated October 30, 2024 Informatica Reports Third Quarter 2024 Financial Results • Cloud Subscription Annualized Recurring Revenue (ARR) increased 36% year-over-year to $748 million • Total ARR increased 6.7% year-over-year to $1.68 billion • Surpassed 100 trillion in monthly processed cloud transactions REDWOOD CITY, CA, October 30, 2024 - Informatica (NYSE: INFA), a leader in enterprise AI-powered cloud data management, today announced financial results for its third quarter 2024, ended Septe ...

Subscription Revenue and Growth - Subscription revenue increased to $516.3 million for the six months ended June 30, 2024, compared to $441.5 million for the same period in 2023, representing a growth of 17.5%[102] - The average Subscription Annual Recurring Revenue (ARR) per subscription customer rose from $275 thousand as of June 30, 2023, to $321 thousand as of June 30, 2024, an increase of 16.7%[108] - Total Annual Recurring Revenue reached $1,668.2 million for the six months ended June 30, 2024, compared to $1,547.5 million for the same period in 2023, marking an increase of 7.8%[113] - Subscription ARR includes Cloud Subscription ARR and Self-managed Subscription ARR, reflecting the annualized cash value from recurring subscription contracts[117] - Cloud Subscription ARR is a subset of overall Subscription ARR, providing visibility on the size and growth rate of cloud contracts[115] Customer Retention and Acquisition - The Cloud Subscription Net Retention Rate at the Global Parent level was 126% for the six months ended June 30, 2024, up from 122% in the same period of 2023[113] - The subscription renewal rate was 90% as of June 30, 2024, down from 92% in 2023, while the maintenance renewal rate improved to 96% from 94%[109] - Approximately 54% of subscription customers as of June 30, 2024, did not have a prior perpetual license maintenance contract, indicating successful new customer acquisition[106] - Cloud Subscription Net Retention Rate (NRR) measures the contract value from the same set of customers, indicating growth from price increases and additional product sales[119] Financial Performance - Adjusted EBITDA for 2024 is reported at $118.713 million, compared to $91.738 million in 2023, reflecting improved profitability[124] - Total revenues increased by 7% to $400.6 million for the three months ended June 30, 2024, compared to $375.9 million for the same period in 2023[141] - Total revenues for the six months ended June 30, 2024, increased by 6% to $789.2 million, up from $741.4 million in the same period of 2023[141] - The company reported a net income of $4.8 million for the three months ended June 30, 2024, compared to a net loss of $152.5 million in the same period of 2023[137] - The company reported a net income of $14.2 million for the six months ended June 30, 2024, adjusted for non-cash charges, while the net loss for the same period in 2023 was $268.8 million[167] Revenue Composition - Cloud subscription revenues rose by 35%, accounting for 40% of total revenues for the three months ended June 30, 2024[141] - Subscriptions revenue for the three months ended June 30, 2024, was $264.3 million, a 16% increase from $227.6 million in the prior year[140] - Maintenance revenues decreased to $116.5 million (29% of total revenues) for Q2 2024, down from $124.9 million (33% of total revenues) in Q2 2023, a decline of 7%[144] - Professional services revenues decreased to $19.8 million (5% of total revenues) for Q2 2024, down from $23.5 million (6% of total revenues) in Q2 2023, a decrease of 16%[146] Cost Management - Research and development expenses are expected to lead to cost savings as a percentage of total revenues due to a focus on cloud subscription offerings[129] - Sales and marketing expenses are also expected to decrease as the company concentrates on cloud subscription strategies[130] - General and administrative expenses increased to $48.9 million for the three months ended June 30, 2024, from $38.8 million in the same period of 2023[137] - Total cost of revenues decreased to $82.9 million for Q2 2024, down from $85.6 million in Q2 2023, a decrease of 3%[147] Strategic Initiatives - The company plans to continue strengthening relationships with strategic partners to enhance co-selling efforts and expand market reach[109] - The company has entered into agreements to migrate approximately $59.2 million of maintenance and self-managed ARR to cloud solutions since the fourth fiscal quarter of 2020[105] - The company introduced a new pricing model called Flex IPUs in Q1 2023, allowing customers to pre-purchase a number of Flex IPUs to be consumed annually[102] Economic and Market Factors - Global macroeconomic factors, including inflation and geopolitical pressures, have impacted customer purchasing decisions and may continue to affect operations[110] - The company anticipates a continued decrease in maintenance revenues as a percentage of total revenue due to the shift from perpetual licenses to subscription offerings[144] Cash and Debt Management - As of June 30, 2024, the company had $1,128.5 million in available cash, cash equivalents, and short-term investments, an increase from $992.3 million as of December 31, 2023[162] - The company refinanced its Credit Agreement on June 11, 2024, reducing the applicable margin from 2.75% to 2.25%[165] - As of June 30, 2024, the company had long-term debt outstanding with a carrying value of $1.82 billion, with a hypothetical change in interest rate of 0.25% affecting interest expense by approximately $4.6 million annually[175] - The company has a credit agreement with JPMorgan Chase Bank, N.A., which includes $1.9 billion of dollar term loans and $250 million under the Revolving Facility[171] Foreign Currency and Investments - Approximately one third of the company's cash, cash equivalents, and short-term investments are held by foreign subsidiaries[166] - The company has entered into foreign currency forward contracts to hedge against fluctuations in foreign currency expenses, with notional amounts totaling $108.4 million worth of Indian rupees as of June 30, 2024[177]