- Cloud Subscription Annual Recurring Revenue (ARR) in the fourth
quarter and full-year 2023 increased 37% year-over-year to $617
million
- Subscription ARR in the fourth quarter and full-year 2023
increased 14% year-over-year to $1.13 billion
- Total ARR in the fourth quarter and full-year 2023 increased 7%
year-over-year to $1.63 billion
- GAAP Total Revenues in the fourth quarter 2023 increased 12%
year-over-year to $445 million and in the full-year 2023 increased
6% year-over-year to $1.60 billion
- Exceeds high end of guidance across all fourth quarter and
full-year 2023 metrics
Informatica (NYSE: INFA), an enterprise cloud data management
leader, today announced financial results for its fourth quarter
and full-year 2023, ended December 31, 2023.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20240214165029/en/
Source: Informatica
“Informatica closed an outstanding fiscal 2023. Once again, we
outperformed all growth and profitability guidance metrics,
showcasing Informatica’s relentless focus on executing a
cloud-only, consumption-driven strategy. We delivered cloud
subscription ARR growth of 37% year-over-year, $500 million in
cloud subscription revenue, and surpassed $1 billion in
subscription revenues,” said Amit Walia, Chief Executive Officer of
Informatica. “Our momentum is driven by demand for our AI-powered
IDMC platform and category leadership in data management as a
mission-critical component of the modern data stack. We are
committed to delivering the best data management products on the
industry’s only AI-powered data platform, solving complex workloads
that are multi-cloud, multi-vendor, and hybrid while delivering
significant value to our customers.”
Fourth Quarter 2023 Financial Highlights:
- GAAP Total Revenues increased 12% year-over-year to $445.2
million. Fourth quarter total revenues included a positive impact
of approximately $6.8 million from foreign currency exchange rates
(FX) year-over-year. Adjusted for FX, total revenues increased 10%
year-over-year.
- GAAP Subscription Revenues increased 26% year-over-year to
$300.1 million. GAAP Cloud Subscription Revenue increased 39%
year-over-year to $140.3 million and represented 47% of
subscription revenues.
- Total ARR increased 7% year-over-year to $1.63 billion. Fourth
quarter total ARR included a negative impact of approximately $0.4
million from FX year-over-year.
- Subscription ARR increased 14% year-over-year to $1.13 billion.
Fourth quarter subscription ARR included a negative impact of
approximately $1.4 million from FX year-over-year.
- Cloud Subscription ARR increased 37% year-over-year to $616.8
million. Fourth quarter cloud subscription ARR included a negative
impact of approximately $0.8 million from FX year-over-year.
- GAAP Operating Income of $36.8 million and Non-GAAP Operating
Income of $161.9 million.
- GAAP Operating Cash Flow of $101.0 million.
- Adjusted Unlevered Free Cash Flow (after-tax) of $154.8
million. Cash paid for interest of $38.3 million.
Full-Year 2023 Financial Highlights:
- GAAP Total Revenues increased 6% year-over-year to $1.60
billion. Full-year total revenues included a positive impact of
approximately $2.6 million from FX year-over-year.
- GAAP Subscription Revenues increased 17% year-over-year to $1.0
billion. GAAP Cloud Subscription Revenue increased 39%
year-over-year to $499.9 million and represented 50% of
subscription revenues.
- Total ARR increased 7% year-over-year to $1.63 billion.
Full-year total ARR included a negative impact of approximately
$7.0 million from FX year-over-year.
- Subscription ARR increased 14% year-over-year to $1.13 billion.
Full-year subscription ARR included a negative impact of
approximately $5.6 million from FX year-over-year.
- Cloud Subscription ARR increased 37% year-over-year to $616.8
million. Full-year cloud subscription ARR included a negative
impact of approximately $2.3 million from FX year-over-year.
- GAAP Operating Income of $33.6 million and Non-GAAP Operating
Income of $462.3 million.
- GAAP Operating Cash Flow of $266.3 million.
- Adjusted Unlevered Free Cash Flow (after-tax) of $451.2
million. Cash paid for interest of $147.3 million.
A reconciliation of GAAP to non-GAAP financial measures has been
provided in the tables included in this press release. An
explanation of these measures is also included below under the
heading “Non-GAAP Financial Measures.”
Fourth Quarter 2023 Business Highlights:
- Processed 86.0 trillion cloud transactions per month for the
quarter ended December 31, 2023, as compared to 53.0 trillion cloud
transactions per month in the same quarter last year, an increase
of 62% year-over-year.
- Reported 240 customers that spend more than $1 million in
subscription ARR at the end of December 31, 2023, an increase of
17% year-over-year.
- Reported 1,988 customers that spend more than $100,000 in
subscription ARR at the end of December 31, 2023, an increase of 4%
year-over-year.
- Achieved a Cloud Subscription Net Retention Rate (NRR) of 119%
at the end-user level and 125% at the global parent level as of
December 31, 2023.
Product Innovation:
- Expanded partnership with Microsoft: announced Informatica’s
Intelligent Data Management Cloud (IDMC) capabilities will be
directly embedded as a native application within Microsoft Fabric
for data profiling, quality, observability, and integration in the
first half of 2024; launched Azure Point of Delivery (POD) in
Canada to scale our market reach; showcased integrations and
solutions with Microsoft Azure Open AI to enable enterprise Gen AI
use cases with a trusted data foundation from IDMC; and built
high-scale, high-performance IDMC connectors for Fabric OneLake,
Lakehouse and DataWarehouse to serve customers’ analytics use
cases.
- Expanded partnership with Amazon Web Services (AWS): announced
IDMC support for Amazon Bedrock customers to improve the accuracy
of key generative AI use cases; earned AWS certification for IDMC
integrations with AWS HealthLake, a HIPAA-eligible service that
provides Fast Healthcare Interoperability Resource (FHIR)
Application Programming Interfaces (APIs) to help healthcare and
life sciences companies securely store, transform, transact and
analyze health data; and named a launch Partner for Amazon S3
Access Grants, delivering scalable permission management for S3
data lakes with Informatica's Cloud Data Marketplace.
- Expanded partnership with Snowflake: announced availability of
Superpipe for Snowflake integrating complex ERP and CRM data into
Snowflake up to 3.5X faster than previous approaches; and announced
the public preview of our first Snowflake native application, the
Enterprise Data Integrator, enabling users to use Superpipe
seamlessly from within the Snowflake product experience.
- Expanded partnership with Databricks: announced
Databricks-verified Unity catalog support for Cloud Data
Integration and Cloud Data Integration Free services.
- Launched a new strategic partnership with MongoDB to deliver
modern, cloud-native, trusted, data-driven applications across
financial services, insurance and healthcare verticals to combine
the benefits of MongoDB Atlas with Informatica’s Master Data
Management (MDM) SaaS solution.
Industry Recognition:
- Recognized as a Leader in the 2023 Gartner® Magic Quadrant™ for
Data Integration Tools report. This marks our 18th consecutive time
of being named a Leader, where Informatica is once again positioned
highest on the ability to execute axis and furthest on the
completeness of vision axis.
- Recognized as a Leader rating in the inaugural Forrester Wave™
Cloud Data Pipelines, Q4 2023 report.
- Recognized as a Leader rating in The Forrester Wave™ Production
Information Management, Q4 2023.
- Received “Strong” rating by Gartner in the Product/Service and
Technology/Methodology categories in the 2023 Gartner® Vendor
Rating report.
- Recognized as a Champion in the Bloor Research Master Data
Governance 2023 report.
- Recognized as a Leader and Outperformer in GigaOM Radar for
Data Security Platforms report.
November 2023 Restructuring Plan:
- In conjunction with the previously announced November 2023
restructuring plan (the “November Plan”), the Company recorded
restructuring charges of $31.6 million in the fourth quarter 2023.
The November Plan is intended to further streamline the Company’s
cost structure as a direct result of its cloud-only,
consumption-driven (“CoCd”) strategy announced in January
2023.
- The Company expects to record approximately $3.0 million to
$5.0 million of additional restructuring charges in the first
quarter 2024.
Upcoming Events:
- On February 27, 2024, the Company is scheduled to host investor
meetings at the Wolfe Research Software Conference in New
York.
- On March 4, 2024, the Company is scheduled to participate in a
fireside chat discussion at the Morgan Stanley Technology, Media
& Telecom Conference in San Francisco at 2:10 p.m. Pacific
Time. A live webcast and replay will be available on the Company's
Investor Relations website.
First Quarter and Full-Year 2024 Financial Outlook
The Company provides the financial guidance below based on
current market conditions and expectations and it is subject to
various important cautionary factors described below. Guidance
includes the impact from macroeconomic conditions and expected
foreign exchange headwinds versus the prior year comparable
periods.
Based on information available as of February 14, 2024, guidance
for the first quarter 2024 is as follows:
First Quarter 2024 Ending March 31, 2024:
- GAAP Total Revenues are expected to be in the range of $375
million to $395 million, representing approximately 5.4%
year-over-year growth at the midpoint of the range.
- Subscription ARR is expected to be in the range of $1.135
billion to $1.155 billion, representing approximately 12.2%
year-over-year growth at the midpoint of the range.
- Cloud Subscription ARR is expected to be in the range of $645
million to $655 million, representing approximately 34.5%
year-over-year growth at the midpoint of the range.
- Non-GAAP Operating Income is expected to be in the range of $97
million to $117 million, representing approximately 26.2%
year-over-year growth at the midpoint of the range.
Based on information available as of February 14, 2024, guidance
for the full-year 2024 is as follows:
Full-Year 2024 Ending December 31, 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 of the range.
- Total ARR is expected to be in the range of $1.718 billion to
$1.772 billion, representing approximately 7.3% year-over-year
growth at the midpoint of the range.
- Subscription ARR is expected to be in the range of $1.261
billion to $1.295 billion, representing approximately 12.8%
year-over-year growth at the midpoint of the range.
- Cloud Subscription ARR is expected to be in the range of $826
million to $840 million, representing approximately 35.1%
year-over-year growth at the midpoint of the range.
- Non-GAAP Operating Income is expected to be in the range of
$533 million to $553 million, representing approximately 17.5%
year-over-year growth at the midpoint of the range.
- Adjusted Unlevered Free Cash Flow (after-tax) is expected to be
in the range of $535 million to $555 million, representing
approximately 20.8% year-over-year growth at the midpoint of the
range.
The Company is assuming constant FX rates for the year based on
the rates at the start of the planning period. For reference
purposes, the assumed FX rates for our top four currencies in
full-year 2024 are as follows:
Currency
Planned Rate
EUR/$
1.10
GBP/$
1.27
$/CAD
1.32
$/JPY
141
Using the foreign exchange rate assumptions noted above, the
Company has incorporated the following FX impact into 2024
guidance:
Q1 2024
Full-Year 2024
Total Revenues
~$2.5m positive impact y/y
~$6.0m positive impact y/y
Total ARR
~$1.0m negative impact y/y
~$1.0m positive impact y/y
Subscription ARR
~$1.0m negative impact y/y
-
Cloud Subscription ARR
~$1.0m negative impact y/y
~$1.0m negative impact y/y
In addition to the above guidance, the Company is also providing
first quarter and full-year 2024 cash paid for interest estimates
for modeling purposes. For the first quarter 2024, we estimate cash
paid for interest to be approximately $39 million. For the
full-year 2024, we estimate cash paid for interest to be
approximately $144 million, using forward rates based on a 1-month
SOFR (Secured Overnight Financing Rate).
In addition to the above guidance, the Company is also providing
a first quarter and full-year 2024 weighted-average number of basic
and diluted share estimates for modeling purposes. For the first
quarter 2024, we expect basic weighted-average shares outstanding
to be approximately 297 million shares and diluted weighted-average
shares outstanding to be approximately 310 million shares. For the
full-year 2024, we expect basic weighted-average shares outstanding
to be approximately 302 million shares and diluted weighted-average
shares outstanding to be approximately 315 million shares.
Reconciliation of Non-GAAP Operating Income and Adjusted
Unlevered Free Cash Flow after-tax guidance to the most directly
comparable GAAP measures is not available without unreasonable
effort, as certain items cannot be reasonably predicted because of
their high variability, complexity, and low visibility. In
particular, the measures and effects of our stock-based
compensation expense specific to our equity compensation awards and
employer payroll tax-related items on employee stock transactions
are directly impacted by the timing of employee stock transactions
and unpredictable fluctuations in our stock price, which we expect
to have a significant impact on our future GAAP financial
results.
Webcast and Conference Call
A conference call to discuss Informatica’s fourth quarter and
full-year 2023 financial results and financial outlook for the
first quarter and full-year 2024 is scheduled for 2:00 p.m. Pacific
Time today. To participate, please dial 1-833-470-1428 from the
U.S. or 1-404-975-4839 from international locations. The conference
passcode is 148703. A live webcast of the conference call will be
available on the Investor Relations section of Informatica’s
website at investors.informatica.com where presentation materials
will also be posted prior to the conference call. A replay will be
available online approximately two hours following the live call
for a period of 30 days.
Forward-Looking Statements
This press release and the related conference call and webcast
contain forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. These statements
may relate to, but are not limited to, expectations of future
operating results or financial performance, including our GAAP and
non-GAAP guidance for the first quarter and 2024 fiscal year, the
effect of foreign currency exchange rates, the effect of
macroeconomic conditions, management’s plans, priorities,
initiatives, and strategies, our efforts to reduce operating
expenses and adjust cash flows in light of current business needs
and priorities, our expected costs related to restructuring and
related charges, including the timing of such charges, the impact
of the restructuring and related charges on our business, results
of operations and financial condition, plans regarding our stock
repurchase authorization, management's estimates and expectations
regarding growth of our business, the potential benefits realized
by customers by the use of artificial intelligence and machine
learning in our products and the potential benefits realized by
customers from our cloud modernization programs, market, and
partnerships. Forward-looking statements are inherently subject to
risks and uncertainties, some of which cannot be predicted or
quantified. In some cases, you can identify forward-looking
statements because they contain words such as “anticipate,”
“believe,” “contemplate,” “continue,” “could,” “estimate,”
“expect,” “intend,” “may,” “plan,” “potential,” “predict,”
“project,” “should,” “target,” “toward,” “will,” or “would,” or the
negative of these words or other similar terms or expressions. You
should not put undue reliance on any forward-looking statements.
Forward-looking statements should not be read as a guarantee of
future performance or results and will not necessarily be accurate
indications of the times at, or by, which such performance or
results will be achieved, if at all.
Forward-looking statements are based on information available at
the time those statements are made and are based on current
expectations, estimates, forecasts, and projections as well as the
beliefs and assumptions of management as of that time with respect
to future events. These statements are subject to risks and
uncertainties, many of which involve factors or circumstances that
are beyond our control, that could cause actual performance or
results to differ materially from those expressed in or suggested
by the forward-looking statements. In light of these risks and
uncertainties, the forward-looking events and circumstances
discussed in this press release may not occur and actual results
could differ materially from those anticipated or implied in the
forward-looking statements. These risks, uncertainties,
assumptions, and other factors include, but are not limited to,
those related to our business and financial performance, the
effects of adverse global macroeconomic conditions and geopolitical
uncertainty, the effects of public health crises on our business,
results of operations, and financial condition, our ability to
attract and retain customers, our ability to develop new products
and services and enhance existing products and services, our
ability to respond rapidly to emerging technology trends, our
ability to execute on our business strategy, including our strategy
related to the Informatica IDMC platform and key partnerships, our
ability to increase and predict customer consumption of our
platform, our ability to compete effectively, and our ability to
manage growth.
Further information on these and additional risks,
uncertainties, and other factors that could cause actual outcomes
and results to differ materially from those included in or
contemplated by the forward-looking statements contained in this
release are included under the caption “Risk Factors” and elsewhere
in our Annual Report on Form 10-K that was filed for the fiscal
year ended December 31, 2022, and other filings and reports we make
with the Securities and Exchange Commission from time to time,
including our Form 10-K that will be filed for the fiscal year
ended December 31, 2023. All forward-looking statements contained
herein are based on information available to us as of the date
hereof and we do not assume any obligation to update these
statements as a result of new information or future events.
Non-GAAP Financial Measures and Key Business Metrics
We review several operating and financial metrics, including the
following unaudited non-GAAP financial measures and key business
metrics to evaluate our business, measure our performance, identify
trends affecting our business, formulate business plans, and make
strategic decisions:
Non-GAAP Financial Measures
In addition to our results determined in accordance with U.S.
generally accepted accounting principles (GAAP), we believe the
following non-GAAP measures are useful in evaluating our operating
performance. We use the following non-GAAP financial measures to
evaluate our ongoing operations and for internal planning and
forecasting purposes. We believe that these non-GAAP financial
measures, when taken collectively, may be helpful to investors
because they provide consistency and comparability with past
financial performance. However, non-GAAP financial measures are
presented for supplemental informational purposes only, have
limitations as an analytical tool, and should not be considered in
isolation or as a substitute for financial information presented in
accordance with GAAP. In addition, other companies, including
companies in our industry, may calculate similarly titled non-GAAP
measures differently or may use other measures to evaluate their
performance, all of which could reduce the usefulness of our
non-GAAP financial measures as tools for comparison. A
reconciliation is provided below for our non-GAAP financial
measures to the most directly comparable financial measures stated
in accordance with GAAP. Investors are encouraged to review the
related GAAP financial measures and the reconciliation of these
non-GAAP financial measures to their most directly comparable GAAP
financial measures, and not to rely on any single financial measure
to evaluate our business.
Non-GAAP Income from Operations and Non-GAAP Net Income
exclude the effect of stock-based compensation expense-related
charges, amortization of acquired intangibles, equity compensation
related payments, expenses associated with acquisitions, and
expenses associated with restructuring efforts, and are adjusted
for income tax effects. We believe the presentation of operating
results that exclude these non-cash or non-recurring items provides
useful supplemental information to investors and facilitates the
analysis of our operating results and comparison of operating
results across reporting periods.
Adjusted EBITDA represents GAAP net loss as adjusted for
income tax benefit (expense), interest income, interest expense,
loss on debt refinancing, other income (expense) net, stock-based
compensation, amortization of intangibles, equity compensation
related payments, restructuring, acquisition costs, sponsor-related
costs and depreciation. Equity compensation-related payments are
related to the repurchase of employee stock options. We believe
adjusted EBITDA is an important metric for understanding our
business to assess our relative profitability adjusted for balance
sheet debt levels.
Adjusted Unlevered Free Cash Flow (after-tax) represents
operating cash flow less purchases of property and equipment and is
adjusted for interest payments, equity compensation payments,
restructuring costs (including payments for impaired leases), and
executive severance. We believe this measure provides useful
supplemental information to investors because it is an indicator of
our liquidity over the long term needed to maintain and grow our
core business operations. We also provide actual and forecast cash
interest expense to aid in the calculation of adjusted free cash
flow (after-tax).
Key Business Metrics
Annual Recurring Revenue (ARR) represents the expected
annual billing amounts from all active maintenance and subscription
agreements. ARR is calculated based on the contract Monthly
Recurring Revenue (MRR) multiplied by 12. MRR is calculated based
on the accounting adjusted total contract value divided by the
number of months of the agreement based on the start and end dates
of each contracted line item. The aggregate ARR calculated at the
end of each reported period represents the value of all contracts
that are active as of the end of the period, including those
contracts that have expired but are still under negotiation for
renewal. We typically allow for a grace period of up to 6 months
past the original contract expiration quarter during which we
engage in the renewal process before we report the contract as
lost/inactive. This grace-period ARR amount has been less than 2%
of the reported ARR in each period presented. If there is an actual
cancellation of an ARR contract, we remove that ARR value at that
time. We believe ARR is an important metric for understanding our
business since it tracks the annualized cash value collected over a
12-month period for all our recurring contracts, irrespective of
whether it is a maintenance contract on a perpetual license, a
ratable cloud contract, or a self-managed term-based subscription
license. ARR should be viewed independently of total revenue and
deferred revenue related to our software and services contracts and
is not intended to be combined with or to replace either of those
items.
Maintenance Annual Recurring Revenue represents the
portion of ARR only attributable to our maintenance contracts. We
believe that Maintenance ARR is a helpful metric for understanding
our business since it represents the approximate annualized cash
value collected over a 12-month period for all our maintenance
contracts. Maintenance ARR includes maintenance contracts
supporting our perpetual licenses. Maintenance ARR should be viewed
independently of maintenance revenue and deferred revenue related
to our maintenance contracts and is not intended to be combined
with or to replace either of those items.
Subscription Annual Recurring Revenue represents the
portion of ARR only attributable to our subscription contracts. We
believe that Subscription ARR is a helpful metric for understanding
our business since it represents the approximate annualized cash
value collected over a 12-month period for all our recurring
subscription contracts. Subscription ARR excludes maintenance
contracts on our perpetual licenses to provide information
regarding the period-to-period performance and overall size and
scale of our subscription business as we continue to focus our
efforts on subscription-based licensing. Subscription ARR should be
viewed independently of subscription revenue and deferred revenue
related to our subscription contracts and is not intended to be
combined with or to replace either of those items.
Cloud Subscription Annual Recurring Revenue represents
the portion of ARR that is attributable to our hosted cloud
contracts. We believe that Cloud Subscription ARR is a helpful
metric for understanding our business since it represents the
approximate annualized cash value collected over a 12-month period
for all our recurring Cloud contracts. Cloud Subscription ARR is a
subset of our overall Subscription ARR, and by providing this
breakdown of Cloud Subscription ARR, it provides visibility on the
size and growth rate of our Cloud Subscription ARR within our
overall Subscription ARR. Cloud Subscription ARR should be viewed
independently of subscription revenue and deferred revenue related
to our subscription contracts and is not intended to be combined
with or to replace either of those items.
Subscription Net Retention Rate (NRR) compares the
contract value for Subscription ARR from the same set of customers
at the end of a period compared to the prior year. We treat
divisions, segments, or subsidiaries inside companies as separate
customers when defining the End-user level. To calculate our
Subscription NRR for a particular period, we first establish the
Subscription ARR value at the end of the prior-year period. We
subsequently measure the Subscription ARR value at the end of the
current period from the same cohort of customers. The net retention
rate is then calculated by dividing the aggregate Subscription ARR
in the current period by the prior-year period. An increase in the
Subscription NRR occurs as a result of price increases on existing
contracts, higher consumption of existing products, and sales of
additional new subscription products to existing customers
exceeding losses from subscription contracts due to cancellations.
We believe Subscription NRR is an important metric for
understanding our business since it measures the rate at which we
are able to sell additional products into our subscription customer
base.
Cloud Subscription Net Retention Rate compares the
contract value for Cloud Subscription ARR from the same set of
customers at the end of a period compared to the prior year. We
treat divisions, segments or subsidiaries inside companies that
contract with us as separate customers when defining the End-user
level. We treat divisions, segments, or subsidiaries of a company
as one customer when defining the Global Parent level. Global
parent customers are determined using Dun & Bradstreet GDUNS
identifiers. To calculate our Cloud Subscription NRR for a
particular period, we first establish the Cloud Subscription ARR
value at the end of the prior year period. We subsequently measure
the Cloud Subscription ARR value at the end of the current period
from the same cohort of customers. Cloud Subscription NRR is then
calculated by dividing the aggregate Cloud Subscription ARR in the
current period by the prior year period. An increase in the Cloud
Subscription NRR occurs as a result of price increases on existing
contracts, higher consumption of existing products, and sales of
additional new subscription products to existing customers
exceeding losses from subscription contracts due to price
decreases, usage decreases and cancellations. We believe Cloud
Subscription NRR is an important metric for understanding our
business since it measures the rate at which we are able to sell
additional products into our cloud subscription customer base.
Supplemental Information
Subscription revenue disaggregation:
- Cloud subscription revenue represents revenues from
cloud subscription offerings, which deliver applications and
infrastructure technologies via cloud-based deployment models for
which we develop functionality, provide unspecified updates and
enhancements, host, manage, upgrade, and support, and that
customers access by entering into a subscription agreement with us
for a stated period.
- Self-managed subscription license revenue represents
revenues from customers and partners contracted to use our
self-managed software during a subscription term.
- Self-managed subscription support and other revenue
represents revenues generated primarily through the sale of license
support contracts sold together with the self-managed subscription
license purchased by the customer. Self-managed subscription
license support contracts provide customers with rights to
unspecified software product upgrades, maintenance releases and
patches released during the term of the support period and include
internet access to technical content, as well as internet and
telephone access to technical support personnel.
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Forrester and Forrester Wave™ are trademarks of Forrester Research,
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About Informatica
Informatica (NYSE: INFA), an Enterprise Cloud Data Management
leader, brings data and AI to life by empowering businesses to
realize the transformative power of their most critical assets. We
have created a new category of software, the Informatica
Intelligent Data Management Cloud™ (IDMC). IDMC is an end-to-end
data management platform, powered by CLAIRE® AI, that connects,
manages and unifies data across any multi-cloud or hybrid system,
democratizing data and enabling enterprises to modernize and
advance their business strategies. Customers in approximately 100
countries, including 86 of the Fortune 100, rely on Informatica to
drive data-led digital transformation. Informatica. Where data and
AI come to life.
INFORMATICA INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(in thousands, except per
share data)
(Unaudited)
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2022
2023
2022
Revenues:
Subscriptions
$
300,145
$
238,364
$
1,003,484
$
857,163
Perpetual license
2,283
4,217
3,307
10,397
Software revenue
302,428
242,581
1,006,791
867,560
Maintenance and professional services
142,750
156,200
588,369
637,558
Total revenues
445,178
398,781
1,595,160
1,505,118
Cost of revenues:
Subscriptions
43,786
27,814
157,229
105,387
Perpetual license
232
160
787
636
Software costs
44,018
27,974
158,016
106,023
Maintenance and professional services
39,957
49,552
168,513
202,126
Amortization of acquired technology
2,990
8,578
11,766
35,354
Total cost of revenues
86,965
86,104
338,295
343,503
Gross profit
358,213
312,677
1,256,865
1,161,615
Operating expenses:
Research and development
79,464
79,179
335,072
318,769
Sales and marketing
135,218
130,849
528,253
535,680
General and administrative
40,681
35,631
162,708
128,092
Amortization of intangible assets
34,394
38,120
137,514
153,471
Restructuring
31,624
—
59,755
—
Total operating expenses
321,381
283,779
1,223,302
1,136,012
Income from operations
36,832
28,898
33,563
25,603
Interest income
11,736
4,916
39,686
9,224
Interest expense
(39,552
)
(26,450
)
(151,396
)
(78,020
)
Other (expense) income, net
(7,705
)
(3,024
)
975
8,996
Income (loss) before income taxes
1,311
4,340
(77,172
)
(34,197
)
Income tax (benefit) expense
(62,950
)
8,721
48,111
19,478
Net income (loss)
$
64,261
$
(4,381
)
$
(125,283
)
$
(53,675
)
Net income (loss) per share attributable
to Class A and Class B-1 common stockholders - basic
$
0.22
$
(0.02
)
$
(0.43
)
$
(0.19
)
Net income (loss) per share attributable
to Class A and Class B-1 common stockholders - diluted
$
0.21
$
(0.02
)
$
(0.43
)
$
(0.19
)
Weighted-average shares used in computing
net income (loss) per share - basic
292,851
283,410
288,581
281,129
Weighted-average shares used in computing
net income (loss) per share - diluted
304,826
283,410
288,581
281,129
INFORMATICA INC.
CONSOLIDATED BALANCE
SHEETS
(in thousands, except par
value data)
(Unaudited)
December 31,
December 31,
2023
2022
Assets
Current assets:
Cash and cash equivalents
$
732,443
$
497,879
Short-term investments
259,828
218,256
Accounts receivable, net of allowances of
$4,414 and $4,608, respectively
500,068
454,759
Contract assets, net
79,864
95,221
Prepaid expenses and other current
assets
180,383
132,638
Total current assets
1,752,586
1,398,753
Property and equipment, net
149,266
160,574
Operating lease right-of-use-assets
57,799
67,735
Goodwill
2,361,643
2,337,036
Customer relationships intangible asset,
net
669,781
794,898
Other intangible assets, net
17,393
33,094
Deferred tax assets
15,237
13,076
Other assets
178,377
165,733
Total assets
$
5,202,082
$
4,970,899
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
18,050
$
38,002
Accrued liabilities
61,194
58,844
Accrued compensation and related
expenses
167,427
150,118
Current operating lease liabilities
16,411
17,514
Current portion of long-term debt
18,750
18,750
Income taxes payable
4,305
3,758
Contract liabilities
767,244
676,470
Total current liabilities
1,053,381
963,456
Long-term operating lease liabilities
46,003
55,178
Long-term contract liabilities
19,482
23,007
Long-term debt, net
1,805,960
1,821,760
Deferred tax liabilities
22,425
18,604
Long-term income taxes payable
37,679
30,601
Other liabilities
4,554
3,932
Total liabilities
2,989,484
2,916,538
Stockholders’ equity:
Class A common stock; $0.01 par value per
share; 2,000,000 and 2,000,000 shares authorized as of December 31,
2023 and December 31, 2022, respectively; Total of 250,874 and
239,749 shares issued and outstanding as of December 31, 2023 and
December 31, 2022, respectively
2,510
2,398
Class B-1 common stock; $0.01 par value
per share; 200,000 and 200,000 shares authorized as of December 31,
2023 and December 31, 2022, respectively ; Total of 44,050 shares
issued and outstanding as of December 31, 2023 and December 31,
2022, respectively
440
440
Class B-2 common stock; $0.00001 par value
per share, 200,000 and 200,000 shares authorized as of December 31,
2023 and December 31, 2022, respectively ; Total of 44,050 shares
issued and outstanding as of December 31, 2023 and December 31,
2022, respectively
—
—
Additional paid-in-capital
3,540,502
3,282,383
Accumulated other comprehensive loss
(22,370
)
(47,671
)
Accumulated deficit
(1,308,484
)
(1,183,189
)
Total stockholders’ equity
2,212,598
2,054,361
Total liabilities and stockholders’
equity
$
5,202,082
$
4,970,899
INFORMATICA INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended December
31,
Twelve Months Ended
December 31,
2023
2022
2023
2022
Operating activities:
Net income (loss)
$
64,261
$
(4,381
)
$
(125,283
)
$
(53,675
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization
4,839
4,747
17,513
21,208
Non-cash operating lease costs
3,525
3,427
16,325
16,268
Stock-based compensation
56,041
37,874
218,099
135,862
Deferred income taxes
(3,365
)
(793
)
991
(85,579
)
Amortization of intangible assets and
acquired technology
37,384
46,698
149,280
188,825
Amortization of debt issuance costs
883
872
3,457
3,607
Amortization of investment discount, net
of premium
(1,446
)
(722
)
(4,422
)
(1,002
)
Changes in operating assets and
liabilities:
Accounts receivable
(220,851
)
(191,965
)
(38,301
)
(17,249
)
Prepaid expenses and other assets
(24,003
)
(35,852
)
1,891
(25,511
)
Accounts payable and accrued
liabilities
87,309
62,095
(20,758
)
(50,697
)
Income taxes payable
(67,792
)
(10,464
)
(35,218
)
12,127
Contract liabilities
164,257
149,174
82,773
55,873
Net cash provided by operating
activities
101,042
60,710
266,347
200,057
Investing activities:
Purchases of property and equipment
(1,624
)
(3,892
)
(6,543
)
(5,465
)
Purchases of investments
(73,400
)
(108,795
)
(328,473
)
(290,040
)
Maturities of investments
72,100
41,960
252,107
109,548
Sales of investments
—
—
39,510
—
Business acquisitions, net of cash
acquired
—
—
(12,476
)
—
Net cash used in investing activities
(2,924
)
(70,727
)
(55,875
)
(185,957
)
Financing activities:
Proceeds from issuance of common stock
under employee stock purchase plan
—
—
28,229
32,790
Payments of offering costs
—
—
—
(2,085
)
Payments for dividends related to Class
B-2 shares
—
—
(12
)
(24
)
Payment of debt
(4,688
)
(4,687
)
(18,752
)
(14,063
)
Payments for taxes related to net share
settlement of equity awards
(18,624
)
—
(44,876
)
—
Net activity from derivatives with an
other-than-insignificant financing element
—
7,087
—
2,236
Proceeds from issuance of shares
37,087
2,410
56,779
19,947
Net cash provided by financing
activities
13,775
4,810
21,368
38,801
Effect of foreign exchange rate changes on
cash, cash equivalents, and restricted cash
8,443
3,223
2,724
(13,118
)
Net increase in cash, cash equivalents,
and restricted cash
120,336
(1,984
)
234,564
39,783
Cash, cash equivalents, and restricted
cash at beginning of period
612,107
499,863
497,879
458,096
Cash, cash equivalents, and restricted
cash at end of period
$
732,443
$
497,879
$
732,443
$
497,879
Supplemental disclosures:
Cash paid for interest
$
38,251
$
30,329
$
147,340
$
84,563
Cash paid for income taxes, net of
refunds
$
8,232
$
19,978
$
82,342
$
92,930
INFORMATICA INC.
NON-GAAP FINANCIAL MEASURES
AND KEY BUSINESS METRICS
(in thousands, except per
share data)
(unaudited)
RECONCILIATIONS OF GAAP TO
NON-GAAP
Reconciliation of GAAP net income
(loss) to Non-GAAP net income
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2022
2023
2022
(in thousands)
(in thousands)
GAAP net income (loss)
$
64,261
$
(4,381
)
$
(125,283
)
$
(53,675
)
Stock-based compensation
56,041
37,874
218,099
135,862
Amortization of intangibles
37,384
46,698
149,280
188,825
Equity compensation
—
185
—
332
Restructuring
31,624
—
59,755
—
Acquisition costs
—
—
1,584
—
Executive severance
—
33
—
132
Income tax effect
(92,013
)
(11,779
)
(32,744
)
(47,441
)
Non-GAAP net income
$
97,297
$
68,630
$
270,691
$
224,035
Net income (loss) per share:
Net income (loss) per share—basic
$
0.22
$
(0.02
)
$
(0.43
)
$
(0.19
)
Net income (loss) per share—diluted
$
0.21
$
(0.02
)
$
(0.43
)
$
(0.19
)
Non-GAAP net income per share—basic
$
0.33
$
0.24
$
0.94
$
0.80
Non-GAAP net income per share—diluted
$
0.32
$
0.24
$
0.92
$
0.78
Share count (in thousands):
Weighted-average shares used in computing
Net loss per share—basic
292,851
283,410
288,581
281,129
Weighted-average shares used in computing
Net loss per share—diluted
304,826
283,410
288,581
281,129
Weighted-average shares used in computing
Non-GAAP net income per share—basic
292,851
283,410
288,581
281,129
Weighted-average shares used in computing
Non-GAAP net income per share—diluted
304,826
287,009
295,279
285,682
Reconciliation of GAAP income (loss)
from operations to Non-GAAP income from operations
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2022
2023
2022
(in thousands)
(in thousands)
GAAP income from operations
$
36,832
$
28,898
$
33,563
$
25,603
Stock-based compensation
56,041
37,874
218,099
135,862
Amortization of intangibles
37,384
46,698
149,280
188,825
Equity compensation
—
185
—
332
Restructuring
31,624
—
59,755
—
Acquisition costs
—
—
1,584
—
Non-GAAP income from operations
$
161,881
$
113,655
$
462,281
$
350,622
INFORMATICA INC.
NON-GAAP FINANCIAL MEASURES
AND KEY BUSINESS METRICS
Adjusted EBITDA Reconciliation
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2023
2022
2023
2022
(in thousands)
(in thousands)
GAAP net income (loss)
$
64,261
$
(4,381
)
$
(125,283
)
$
(53,675
)
Income tax (benefit) expense
(62,950
)
8,721
48,111
19,478
Interest income
(11,736
)
(4,916
)
(39,686
)
(9,224
)
Interest expense
39,552
26,450
151,396
78,020
Other expense (income), net
7,705
3,024
(975
)
(8,996
)
Stock-based compensation
56,041
37,874
218,099
135,862
Amortization of intangibles
37,384
46,698
149,280
188,825
Equity compensation
—
185
—
332
Restructuring
31,624
—
59,755
—
Acquisition costs
—
—
1,584
—
Depreciation
4,543
4,721
17,083
21,007
Adjusted EBITDA
$
166,424
$
118,376
$
479,364
$
371,629
Adjusted Unlevered Free Cash
Flows
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2022
2023
2022
(in thousands, except
percentages)
(in thousands, except
percentages)
Total GAAP Revenue
$
445,178
$
398,781
$
1,595,160
$
1,505,118
Net cash provided by operating
activities
$
101,042
$
60,710
$
266,347
$
200,057
Less: Purchases of property, plant, and
equipment
(1,624
)
(3,892
)
(6,543
)
(5,465
)
Add: Equity compensation payments
257
134
425
638
Add: Executive severance
—
4,050
—
7,969
Add: Restructuring costs
16,829
178
43,593
753
Adjusted Free Cash Flows
(after-tax)(1)
$
116,504
$
61,180
$
303,822
$
203,952
Add: Cash paid for interest
38,251
30,329
147,340
84,563
Adjusted Unlevered Free Cash Flows
(after-tax)(1)
$
154,755
$
91,509
$
451,162
$
288,515
Adjusted Free Cash Flows (after-tax)
margin(1)
26
%
15
%
19
%
14
%
Adjusted Unlevered Free Cash Flows
(after-tax) margin(1)
35
%
23
%
28
%
19
%
(1) Includes cash tax payments of $8.2
million and $20.0 million for the three months ended December 31,
2023 and 2022, respectively, and cash tax payments of $82.3 million
and $92.9 million for the year ended December 31, 2023 and 2022,
respectively.
Key Business Metrics
The following are our key
business metrics as of December 31, 2023 and 2022.
December 31,
2023
2022
(in thousands, except
percentages)
Cloud Subscription Annual Recurring
Revenue
$
616,792
$
451,188
Self-managed Subscription Annual Recurring
Revenue
515,874
543,035
Subscription Annual Recurring Revenue
1,132,666
994,223
Maintenance Annual Recurring Revenue on
Perpetual Licenses
493,579
522,837
Total Annual Recurring Revenue
$
1,626,245
$
1,517,060
Subscription Net Retention Rate (End-user
level)
106
%
111
%
Cloud Subscription Net Retention Rate
(End-user level)
119
%
117
%
Cloud Subscription Net Retention Rate
(Global Parent level)
125
%
123
%
INFORMATICA INC.
SUPPLEMENTAL
INFORMATION
Additional Business Metrics
December 31,
2023
2022
Maintenance Renewal Rate
95
%
96
%
Subscription Renewal Rate
92
%
94
%
Customers that spend more than $1 million
in Subscription Annual Recurring Revenue (1)
240
206
Customers that spend more than $100,000 in
Subscription Annual Recurring Revenue (2)
1,988
1,916
Cloud transactions processed per month in
trillions (3)
86.0
53.0
(1) Total number of customers that spend
more than $1 million in Subscription Annual Recurring Revenue.
(2) Total number of customers that spend
more than $100,000 in Subscription Annual Recurring Revenue.
(3) Total number of cloud transactions
processed on our platform per month in trillions, which measures
data processed.
Disaggregation of Subscription
Revenues
Three Months Ended December
31,
Year Ended December
31,
2023
2022
2023
2022
(in thousands)
(in thousands)
Revenues:
Cloud subscription
$
140,319
$
100,645
$
499,922
$
359,380
Self-managed subscription license
108,916
86,135
298,048
294,671
Self-managed subscription support and
other
50,910
51,584
205,514
203,112
Subscription revenues
$
300,145
$
238,364
$
1,003,484
$
857,163
Net Debt Reconciliation
December 31,
2023
2022
(in millions)
Dollar Term Loan
$
1,842
$
1,861
Less: Cash, cash equivalents, and
short-term investments
(992
)
(716
)
Total net debt
$
850
$
1,145
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240214165029/en/
Investor Relations: Victoria Hyde-Dunn
vhydedunn@informatica.com
Public Relations: pr@informatica.com
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