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]

Subscription Revenue and Growth - Subscription revenue for Q1 2023 reached $213.9 million, up from $197.7 million in Q1 2022, representing a growth of approximately 8.9%[137] - Total Annual Recurring Revenue (ARR) increased to $1,533.4 million in Q1 2023 from $1,397.0 million in Q1 2022, reflecting a growth of about 9.7%[160] - Cloud Subscription ARR rose to $483.3 million in Q1 2023, compared to $343.5 million in Q1 2022, marking an increase of approximately 40.7%[160] - The average Subscription ARR per customer increased from $231,000 in Q1 2022 to $270,000 in Q1 2023, showing a growth of about 16.9%[152] - Subscription revenues rose to $213.9 million, accounting for 59% of total revenues, an increase of 8% from $197.7 million in the prior year[198] Customer Retention and Acquisition - Subscription Net Retention Rate (NRR) was 110% for Q1 2023, down from 113% in Q1 2022, indicating a slight decline in customer retention[160] - Approximately 54% of subscription customers as of March 31, 2023, did not have a prior perpetual license maintenance contract, indicating successful new customer acquisition efforts[151] - Subscription Net Retention Rate (NRR) measures the contract value from the same set of customers year-over-year, indicating growth from price increases and additional sales[170] Revenue Composition and Strategic Shift - The perpetual license revenue as a percentage of total software revenue was 0% for Q1 2023, down from 1% in Q1 2022, reflecting a strategic shift towards subscription revenue[141] - Perpetual license revenues are expected to be less than 1% of total revenues as the company focuses on subscription-based licensing[178] - The company expects subscription revenues to account for substantially all software revenues going forward, as it has ceased active selling of perpetual licenses[199] Cost and Expense Management - Maintenance and professional services revenues decreased to $150.7 million in Q1 2023 from $161.9 million in Q1 2022, a decline of approximately 6.9%[143] - Total cost of revenues decreased by 2% to $81.9 million, with software revenue costs increasing by 44% to $35.9 million, now 17% of software revenues[203] - Research and development expenses increased by 9% to $82.0 million, representing 23% of total revenues, driven by higher personnel-related costs[208] - General and administrative expenses rose by 40% to $41.4 million, accounting for 11% of total revenues, primarily due to increased personnel-related expenses[211] - Restructuring costs increased to $27.3 million, representing 7% of revenues, due to a restructuring plan initiated in January 2023[213] Financial Performance - Adjusted EBITDA for Q1 2023 was $89,013, compared to $89,119 in Q1 2022, reflecting relative profitability adjusted for various expenses[175] - Total revenues increased by 1% to $365.4 million for the three months ended March 31, 2023, compared to $362.3 million for the same period in 2022, primarily driven by a 7% increase in software revenues[197] - Maintenance revenues fell to $125.4 million, representing 34% of total revenues, a decrease of 5% from $132.5 million[201] - Professional services revenues decreased by 14% to $25.3 million, accounting for 7% of total revenues, primarily due to reduced demand for consulting services[202] Cash Flow and Investments - Cash provided by operating activities was $69.9 million in Q1 2023, slightly down from $70.2 million in Q1 2022, with a net loss of $116.4 million adjusted for non-cash charges[221][222] - Net cash provided by investing activities reached $49.0 million in Q1 2023, significantly up from $6.2 million in Q1 2022, driven by $80.5 million in maturities of investments[223][224] - Net cash provided by financing activities was $14.9 million in Q1 2023, compared to $13.2 million in Q1 2022, mainly due to $16.1 million from the issuance of common stock under the ESPP[227][228] Debt and Interest - Long-term debt outstanding was $1.84 billion as of March 31, 2023, with a potential interest expense change of approximately $5 million annually for a 0.25% change in 3-month LIBOR[239] - The company plans to transition from one-month LIBOR to one-month SOFR starting in the second half of 2023, following the phase-out of LIBOR[240] - Interest income increased to $7.6 million for Q1 2023, up 1972% from $366 thousand in Q1 2022, while interest expense rose to $(35.1) million, a 173% increase from $(12.8) million[214] Tax and Currency Exposure - Income tax expense surged to $59.6 million in Q1 2023, compared to $1.2 million in Q1 2022, reflecting a 4927% increase primarily due to a higher valuation allowance[215] - Approximately 25% of cash, cash equivalents, and short-term investments are held by foreign subsidiaries, exposing the company to foreign currency exchange risks[220][241] - The company utilizes foreign currency forward contracts to hedge against fluctuations in foreign currency expenses, with notional amounts totaling $101.2 million for Indian rupees as of March 31, 2023[244]

Customer Base and Growth - The company has approximately 5,600 customers in approximately 100 countries and territories worldwide as of December 31, 2022[68] - The number of customers contributing more than $1 million in Subscription ARR increased from 104 in 2020 to 206 in 2022[68] - The number of customers contributing more than $100,000 in Subscription ARR increased from 1,361 in 2020 to 1,916 in 2022[68] - Approximately 90% of the company's total Subscription ARR for the year ended December 31, 2022, was generated from existing subscription customers[136] Customer Satisfaction and Retention - The company's renewal rates for subscription and maintenance in 2022 were 94% and 96%, respectively[81] - The Customer Satisfaction (CSAT) score for Q4 2022 was 4.7/5.0, with 77% of respondents rating the company 5/5[81] - The company's global customer support and success team consists of approximately 900 employees as of December 31, 2022[81] Revenue and Financial Performance - Subscription revenue growth rates were 15%, 26%, and 26% for the years ended December 31, 2022, 2021, and 2020, respectively, with subscription revenues of $857.2 million, $747.7 million, and $593.8 million for those years[134] - Maintenance revenue was $520.0 million in 2022, representing 35% of total revenue, compared to $558.5 million in 2021, which was 39% of total revenue[138] - The company incurred net losses of $53.7 million, $99.9 million, and $167.9 million for the years ended December 31, 2022, 2021, and 2020, respectively, with an accumulated deficit of $1,183.2 million as of December 31, 2022[191] - Amortization expense from acquired technology and intangible assets was $185.6 million, $241.0 million, and $284.0 million for the years ended December 31, 2022, 2021, and 2020, respectively[191] - Interest expense recognized due to debt incurred from the 2015 Privatization Transaction was $78.0 million, $132.4 million, and $149.4 million in the fiscal years 2022, 2021, and 2020, respectively[191] Cloud Strategy and Transition - The company has migrated approximately 3.6% of its installed base maintenance revenue to its cloud solution as part of its strategy to transition from perpetual licenses to cloud-based offerings[143] - The company's Intelligent Data Management Cloud (IDMC) platform is a key focus of its cloud-focused strategy, with increasing revenue derived from subscription-based offerings[142] - The company's agreements with AWS, Microsoft Azure, and Google Cloud have 3-year terms through 2024 or 2025, with termination clauses that could impact operations if triggered[144] - The company is directing significant financial and operating resources to implement a robust cloud offering, but there is a risk that the cloud offering may not develop as quickly as expected or scale to meet requirements[189] Market and Competitive Risks - The company faces risks related to security breaches and vulnerabilities, particularly as it integrates acquired companies and migrates self-managed products to its cloud platform[131] - Market competition is intensifying with new entrants, evolving customer requirements, and emerging technologies, particularly in cloud-based solutions[162] - The company’s ability to compete depends on factors like platform comprehensiveness, AI/ML integration, multi-cloud interoperability, and responsiveness to customer needs[164] - Increased competition and bundling strategies could impede the company's ability to sell additional products and services on favorable terms[165] - Consolidation among software vendors may lead to reduced market share or price reductions, harming the company's business and financial condition[166] Economic and Operational Challenges - Foreign currency exchange volatility negatively impacted revenues by approximately $48 million year-over-year in 2022[124] - The company experienced lengthening sales cycles, decreased pipeline conversion rates, and slower revenue growth in 2022[124] - High inflation in the U.S. and other geographies is increasing expense pressure to adjust salary structures to align with higher cost of living, potentially leading to higher voluntary attrition[152] - Sales force turnover, particularly in Q1, impacts software revenue generation, with new hires typically requiring nine months to reach full productivity[151] - Competition for skilled personnel, especially sales engineers with data management and cloud expertise, is intense, with competitors offering greater financial resources[150] Workforce and Organizational Changes - Company announced a workforce reduction plan in January 2023, cutting approximately 450 employees, representing 7% of its global workforce, with estimated non-recurring charges of $25 million to $35 million, primarily for employee transition and severance payments[147] - The company's corporate culture is considered a key contributor to its success, and maintaining this culture as the company grows is crucial to fostering innovation and creativity[213] Legal and Regulatory Risks - The company faces risks from legal and regulatory changes, particularly in data privacy and localization laws, which could reduce demand for cloud and professional services[148] - Data protection and privacy regulations, such as GDPR and CCPA, pose risks of enforcement actions, fines, and reputational damage[226] - Security breaches or unauthorized access to personal information could result in costly notifications, lawsuits, and negative publicity[227] - The company may face fines up to 20 million Euros or 4% of its annual global turnover under GDPR for non-compliance[230] - The company has incurred substantial expenses to comply with GDPR and may need further operational changes, potentially impacting revenue[230] International Operations and Risks - Approximately 31%, 33%, and 33% of the company's revenue was derived from outside the North American region for the years ended December 31, 2022, 2021, and 2020, respectively[254] - The company has approximately 2,700 employees in India as of December 31, 2022, making it susceptible to significant operating expense impacts due to exchange rate changes[262] - The company faces risks in international markets, including geopolitical disruptions, exchange rate fluctuations, slower collections, increased operating costs, and challenges in protecting intellectual property[255] - The company's international operations are exposed to risks such as wage inflation in India and Brazil, regulatory changes, and compliance with U.S. and foreign laws, including GDPR and FCPA[255] Debt and Financial Obligations - The company's total indebtedness as of December 31, 2022, was $1.84 billion[289] - Cash flows dedicated for debt service requirements totaled $98.6 million in 2022, including $14.1 million in principal payments and $84.6 million in interest payments[292] - Net cash provided by operating activities was $200.1 million in 2022, with $284.6 million before interest payments[292] - Approximately 35% of net cash provided by operating activities (before interest payments) was dedicated to debt service in 2022[292] - A breach of covenants under the credit agreement could result in an event of default, potentially accelerating debt repayment[300] Product and Market Acceptance - The company's traditional data management products, such as PowerCenter and PowerExchange, continue to comprise a significant portion of revenues, and a decline in market acceptance could decrease revenues[207] - Newer products may face market acceptance challenges due to customer budget priorities, macroeconomic uncertainty, and technical difficulties[210] - Market acceptance of products could be impacted by increased competition, technological shifts to cloud-based solutions, and customer confusion[211] Seasonal and Quarterly Fluctuations - The company's business is seasonal, with highest demand in Q4 and lowest in Q1, leading to fluctuations in quarterly bookings and cash flows[215] - Quarterly and annual results may fluctuate significantly due to factors like customer retention, market growth rates, and economic conditions[216] Strategic Investments and Acquisitions - Company acquired GreenBay Technologies in August 2020 for AI/ML solutions and Compact Solutions in July 2020 for metadata connectivity tools to enhance its CLAIRE-powered IDMC platform[157] - The company acquired GreenBay Technologies in August 2020 and Compact Solutions in July 2020, which present risks such as integration challenges and potential financial impacts[201][202] Open Source and Intellectual Property Risks - The company faces risks related to the use of open source software, including potential litigation and compliance with open source licenses[278] - The company has been subject to patent infringement claims, such as a suit filed by Akoloutheo LLC in March 2020, which was resolved for an immaterial amount[281] - The company's agreements with customers and partners require placing the source code of products into escrow, limiting control over third-party actions[286] Government Contracts and Compliance - Sales to government entities accounted for approximately 10% or less of the company's revenue for the past three fiscal years ended December 31, 2022[266] - Government contracts may require the maintenance of certain security clearances for facilities and employees, which can entail additional costs and delays[267] - The company's subsidiary, Informatica Federal Operations Corporation, is required to maintain facility security clearances and be insulated from foreign ownership, control, or influence[271] - Government contracts contain provisions that give the government rights to terminate contracts for convenience or default, potentially leading to unrecovered costs and liabilities[273] - The company reached a settlement of $21.9 million in March 2019 related to a civil False Claims Act investigation[276]

Financial Data and Key Metrics Changes - Total ARR for Q4 2022 increased by 11.5% year-over-year to $1.52 billion, driven by strong new business sales and subscription renewals [66] - Subscription ARR reached $994 million in Q4, representing a 24% year-over-year increase, with a net retention rate of 111% [67][68] - GAAP total revenues were $399 million in Q4, down 2% year-over-year, impacted by foreign exchange fluctuations [69][70] - Gross margin for Q4 was 82%, maintaining a stable margin throughout the year [71] Business Line Data and Key Metrics Changes - Cloud ARR increased over 42% year-over-year to $451 million, now representing approximately 45% of total Subscription ARR [99] - Maintenance ARR finished at $523 million, down 6% year-over-year, with a strong renewal rate of 96% [101] - Subscription revenue increased approximately 4% year-over-year to $238 million, representing 60% of total revenue [102] Market Data and Key Metrics Changes - U.S. revenue grew 6% year-over-year to $262 million, representing 66% of total revenues, while international revenue decreased 14% year-over-year to $137 million [103] - The company has migrated 3.6% of its maintenance installed base to the IDMC platform, up from 2.8% the previous quarter [53] Company Strategy and Development Direction - The company is transitioning to a cloud-only, consumption-driven strategy, focusing on expanding IPU adoption and launching a flexible IPU pricing model [1][63] - The strategic objectives include accelerating cloud migration opportunities and maintaining high renewal rates [63][64] - The company aims to streamline operations and improve efficiencies through its cloud-only model, which is expected to enhance operating leverage [73][96] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the uncertain macroeconomic environment but remains optimistic about the company's cloud-focused growth strategy [72][94] - Deal cycles are elongated, but the health of the pipeline remains strong, with a focus on digital transformation through data management [15][94] - The company expects total ARR growth of approximately 5% year-over-year for 2023, with a focus on balanced growth and profitability [107] Other Important Information - The company reported a net income per diluted share of $0.24 for Q4, with unlevered free cash flow after-tax of approximately $92 million [104] - A reduction in force was announced to align the cost structure with the new strategy, with estimated cost savings of approximately $50 million in FY2023 [106] Q&A Session All Questions and Answers Question: What attracted the new CFO to Informatica? - The new CFO was attracted by the company's financial model and its potential for delivering increased profitability as it grows [109] Question: Can you elaborate on the go-to-market strategy and sales incentives? - The company is focusing on converting maintenance to cloud and expects to see more net new workloads driving growth [112][113] Question: What are the assumptions around the ARR guidance? - The company sees headwinds in the macro environment but remains thoughtful about customer spending and deal cycles [122]

Where data comes to GAAP Financial Measures Investor Presentation 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, capital expenditures, plans for future operations, competitive position, technological capa ...

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 September 30, 2022 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. _______________________ ...

Informatica Inc. (NYSE:INFA) Q3 2022 Earnings Conference Call October 26, 2022 4:30 PM ET Company Participants Victoria Hyde-Dunn - Vice President of Investor Relations Amit Walia - Chief Executive Officer Eric Brown - Executive Vice President & Chief Financial Officer Conference Call Participants Alex Zukin - Wolfe Research Matthew Hedberg - RBC Capital Markets Brad Zelnick - Deutsche Bank Andrew Nowinski - Wells Fargo Koji Ikeda - BofA Securities Tyler Radke - Citigroup Pinjalim Bora - JPMorgan Frederi ...

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, 2022 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. ____________________________ ...

Informatica Inc. (NYSE:INFA) Q2 2022 Earnings Conference Call July 28, 2022 4:30 PM ET Company Participants Victoria Hyde-Dunn - Vice President of Investor Relations Amit Walia - Chief Executive Officer Eric Brown - Executive Vice President & Chief Financial Officer Conference Call Participants Matt Hedberg - RBC Capital Markets Pinjalim Bora - JPMorgan Strecker Backe - Wolfe Research Koji Ikeda - Bank of America Tyler Radke - Citi Fred Havemeyer - Macquarie Andrew Nowinski - Wells Fargo Operator Good after ...