Informatica Reports Fourth Quarter and Full-Year 2024 Financial Results

• Cloud Subscription Annual Recurring Revenue (ARR) in the fourth quarter and full-year 2024 increased 34% year-over-year to $827 million
• Total ARR in the fourth quarter and full-year 2024 increased 6% year-over-year to $1.73 billion
• GAAP Total Revenues in the full-year 2024 increased 3% year-over-year to $1.64 billion
• Guides to $1.0 billion in Cloud Subscription ARR for the full-year 2025

REDWOOD CITY, Calif.–(BUSINESS WIRE)–Informatica (NYSE: INFA), an enterprise cloud data management leader, today announced financial results for its fourth quarter and full-year 2024, ended December 31, 2024.

“The power of our cloud-only, consumption-driven strategy was evident throughout 2024, as highlighted by 34% growth in Cloud Subscription ARR, a Cloud Subscription Net Revenue Retention of 124% and 32.8% Non-GAAP Operating Margin,” said Amit Walia, Chief Executive Officer at Informatica. “Although we encountered unexpected headwinds in the fourth quarter, we’re entering 2025 with strong fundamentals and clear line of sight to reaching $1 billion in Cloud Subscription ARR by the end of the year.”

Fourth Quarter 2024 Financial Highlights:

• GAAP Total Revenues decreased 3.8% year-over-year to $428.3 million. Fourth quarter total revenues included a positive impact of approximately $1.3 million from foreign currency exchange rates (FX) year-over-year. Adjusted for FX, total revenues decreased 4.1% year-over-year. This result was below the midpoint of our guidance by $29.7 million, due primarily by four factors. First, the Company recognized lower upfront self-managed subscription license revenue due to lower renewal rates of self-managed subscriptions. Second, the lower average duration of those self-managed subscription renewals further reduced up-front recognized revenue. Both factors drove lower revenue as the Company recognizes self-managed subscription license revenue upfront at a point-in-time in accordance with ASC 606 accounting standards. These two factors contributed to an approximately $46.0 million year-over-year reduction in upfront self-managed subscription license revenue recognition in the fourth quarter. Third, as a direct result of our strategy to shift more of our customers’ implementation and support work to our professional service partners, the Company observed a further decline in professional services. Fourth, due to the recent strengthening of the U.S. dollar, the Company experienced FX-related revenue headwinds compared to our forecast.
• GAAP Subscription Revenues decreased 2% year-over-year to $297.4 million. GAAP Cloud Subscription Revenue increased 33% year-over-year to $186.8 million and represented 63% of subscription revenues.
• Total ARR increased 6% year-over-year to $1.73 billion. Fourth quarter total ARR included a negative impact of approximately $2.0 million from FX year-over-year.
• Subscription ARR increased 13% year-over-year to $1.27 billion. Fourth quarter subscription ARR included a negative impact of approximately $1.5 million from FX year-over-year.
• Cloud Subscription ARR increased 34% year-over-year to $827.3 million. Fourth quarter cloud subscription ARR included a negative impact of approximately $0.7 million from FX year-over-year. This result was below the midpoint of our guidance by $8.7 million, due primarily by two factors. First, cloud renewal rates were lower than forecast. Second, net new bookings were lower than forecast due primarily to a higher-than-expected contribution to bookings from on-premises maintenance and self-managed migrations to the cloud.
• GAAP Operating Income was $63.4 million and Non-GAAP Operating Income was $162.3 million. GAAP Operating Margin increased 650 basis points to 14.8% and Non-GAAP Operating Margin increased 150 basis points to 37.9% compared to the prior year period.
• GAAP Operating Cash Flow of $146.9 million.
• Adjusted Unlevered Free Cash Flow (after-tax) of $180.9 million. Cash paid for interest of $32.5 million. This was higher than the midpoint of our guidance by $24 million.

Full-Year 2024 Financial Highlights:

• GAAP Total Revenues increased 2.8% year-over-year to $1.64 billion. Full-year total revenues included a positive impact of approximately $0.2 million from FX year-over-year. Adjusted for FX, total revenues increased 2.8% year-over-year.
• GAAP Subscription Revenues increased 9% year-over-year to $1.1 billion. GAAP Cloud Subscription Revenue increased 35% year-over-year to $675.5 million and represented 61% of subscription revenues.
• Total ARR increased 6% year-over-year to $1.73 billion. Full-year total ARR included a negative impact of approximately $3.8 million from FX year-over-year. This result was below the midpoint of our guidance by $19.0 million, primarily due to three factors. First, renewal rates were lower than forecast. Second, net new cloud bookings were lower than forecast, primarily due to a higher-than-expected contribution to bookings from on-premises maintenance and self-managed migrations to the cloud. Third, Maintenance and Self-Managed ARR that was terminated after completing a cloud migration was higher than forecast.
• Subscription ARR increased 13% year-over-year to $1.27 billion. Full-year subscription ARR included a negative impact of approximately $2.9 million from FX year-over-year.
• Cloud Subscription ARR increased 34% year-over-year to $827.3 million. Full-year cloud subscription ARR included a negative impact of approximately $1.9 million from FX year-over-year.
• GAAP Operating Income was $127.0 million and Non-GAAP Operating Income was $537.5 million. GAAP Operating Margin increased 560 basis points to 7.7% and Non-GAAP Operating Margin increased 380 basis points to 32.8% compared to the prior year period.
• GAAP Operating Cash Flow of $409.9 million.
• Adjusted Unlevered Free Cash Flow (after-tax) of $579.1 million. Cash paid for interest of $144.4 million.

The Company has included a new eight-quarter table in this press release titled “Disaggregation of Revenues” to help better understand the timing of the components of total revenue, including revenue recognized ratably over time and revenue recognized at a point in time per ASC 606 accounting standards.

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 2024 Business Highlights:

• Processed 110.7 trillion cloud transactions per month for the quarter ended December 31, 2024, as compared to 86.0 trillion cloud transactions per month in the same quarter last year, an increase of 29% year-over-year.
• Reported 284 customers that spend more than $1 million in subscription ARR at the end of December 31, 2024, an increase of 18% year-over-year.
• Reported 2,110 customers that spend more than $100,000 in subscription ARR at the end of December 31, 2024, an increase of 6% year-over-year.
• Achieved a Cloud Subscription Net Retention Rate (NRR) of 124% at the global parent level as of December 31, 2024.
• Reported 2,468 Cloud Subscription ARR customers at the end of December 31, 2024, an increase of 8% year-over-year.

Product Innovation:

• Announced the availability of GenAI blueprints for AWS, Databricks, Google Cloud, Microsoft Azure, Oracle Cloud and Snowflake ecosystems. These blueprints include standard reference architectures, prebuilt, ecosystem-specific “recipes” and GenAI model-as-a-service and vector database connectors to minimize GenAI development complexity and accelerate implementation.
• Expanded partnership with Databricks: announced support for Databricks AI functions in Informatica’s Native SQL ELT, enabling customers to use GenAI capabilities, including sentiment analysis, similarity matching, and translation from SQL with 50+ out-of-the-box transformations and support for 250+ native Databricks SQL functions.
• Expanded partnership with Google Cloud: announced the general availability of Informatica’s Cloud Data Governance and Catalog on Google Cloud and Google Cloud marketplace in North America, EMEA and Saudi Arabia markets.
• Announced the expansion of CLAIRE® GPT, Informatica’s enterprise GenAI powered data management assistant, to Europe, Asia Pacific and Canada, following the launch in North America.

Industry Recognition:

• Recognized as a Leader in the 2025 Gartner® Magic Quadrant™ for Data and Analytics (D&A) Governance Platforms report. Informatica is positioned furthest on the Completeness of Vision axis and highest on the Ability to Execute axis.
• Recognized as a Leader in the 2024 Gartner® Magic Quadrant™ for Data Integration Tools report. This marks our 19th consecutive time of being named a Leader, where Informatica is once again positioned furthest on the Completeness of Vision axis and highest on the Ability to Execute axis.
• Achieved the Highest Rating for Products and Technology categories in the 2024 Gartner® Vendor Rating.
• Recognized as a Leader in the IDC MarketScape: Worldwide Data Intelligence Platform Software 2024 Vendor Assessment.
• Recognized as a Leader in the IDC MarketScape: Worldwide Product Information Management Applications for Commerce 2024–2025 Vendor Assessment.
• Recognized as a Champion in Bloor Research Data Governance 2024 Market Update.
• Achieved the Highest Ranking in the 2024 Information Services Group (ISG) DataOps Buyers Guide.
• Recognized as a Leader in the 2024 Information Services Group (ISG) Data Products Buyers Guide.

Secondary Offering:

• In November 2024, Permira and Canada Pension Plan Investment Board completed an underwritten secondary offering of 16 million shares of Informatica Class A common stock. Informatica did not receive any proceeds from the sale.

Share Repurchase:

• During the fourth quarter, the Company spent $103.2 million to repurchase 3.8 million shares of its Class A common stock at an average price of $26.66 through open market purchases. From January 1, 2025, through February 12, 2025, the Company spent $27.1 million to repurchase 1.1 million shares of its Class A common stock at an average price of $25.36 through open market purchases. In total, the Company reduced its total outstanding share count as of February 12, 2025, by 1.6% as a result of these repurchases.
• On February 10, 2025, the Company’s Board of Directors approved an additional $400.0 million stock repurchase authorization. This brings the total stock repurchase authorization to $800.0 million. The Company has $669.8 million available under its $800.0 million stock repurchase program.
• The Company expects to repurchase approximately $100 million of its Class A common stock in the first quarter 2025 through open market purchases. The actual amount repurchased will depend on a variety of factors, including stock price, trading volume, and general business and market conditions. A committee of the Board will determine the timing, amount and terms of any repurchase.

Upcoming Events:

• On February 26, 2025, the Company is scheduled to host investor meetings at the Wolfe Research Technology, Media & Telecom Conference.
• On February 27, 2025, the Company is scheduled to host investor meetings at the Susquehanna 14th Annual Technology Conference.
• On March 3, 2025, the Company is scheduled to participate in a fireside chat discussion at the Morgan Stanley Technology, Media & Telecom Conference at 3:20 p.m. Pacific Time. A live webcast and replay will be available on the Company’s Investor Relations website.
• On March 11, 2025, the Company is scheduled to participate in a fireside chat discussion at the Cantor Fitzgerald Global Technology Conference at 1:40 p.m. Eastern Time. A live webcast and replay will be available on the Company’s Investor Relations website.

First Quarter and Full-Year 2025 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 expected foreign exchange headwinds versus the prior year comparable periods.

Based on information available as of February 13, 2025, guidance for the first quarter 2025 is as follows:

First Quarter 2025 Ending March 31, 2025:

• GAAP Total Revenues are expected to be in the range of $380 million to $400 million, representing approximately 0.4% year-over-year growth at the midpoint of the range or approximately 2.1% year-over-year growth on a constant currency basis.
• Total ARR is expected to be in the range of $1.673 billion to $1.697 billion, representing approximately 3.0% year-over-year growth at the midpoint of the range or approximately 3.0% year-over-year growth on a constant currency basis.
• Cloud Subscription ARR is expected to be in the range of $840 million to $852 million, representing approximately 29.6% year-over-year growth at the midpoint of the range or approximately 29.7% year-over-year growth on a constant currency basis.
• Non-GAAP Operating Income is expected to be in the range of $98 million to $112 million, representing approximately -3.9% year-over-year decrease at the midpoint of the range.

Based on information available as of February 13, 2025, guidance for the full-year 2025 is as follows:

Full-Year 2025 Ending December 31, 2025:

• 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 of the range or approximately 4.6% year-over-year growth on a constant currency basis.
• 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 of the range or approximately 3.2% year-over-year growth on a constant currency basis.
• 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 of the range or approximately 25.3% year-over-year growth on a constant currency basis.
• Non-GAAP Operating Income is expected to be in the range of $546.0 million to $566.0 million, representing approximately 3.5% 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 $540.0 million to $580.0 million, representing approximately -3.3% year-over-year decrease at the midpoint of the range.

The Company’s forecast is based upon market-based forward FX rates as of the date of the forecast. On a constant currency basis using FX rates experienced in 2024, the FX impact to fiscal 2025 guidance of expected forward FX rates is as follows:

In addition to the above guidance, the Company is also providing first quarter and full-year 2025 cash paid for interest estimates for modeling purposes. For the first quarter 2025, we estimate cash paid for interest to be approximately $30 million. For the full-year 2025, we estimate cash paid for interest to be approximately $118 million, using forward rates based on 1-month SOFR and a credit spread of 225 basis points.

In addition to the above guidance, the Company is also providing a first quarter and full-year 2025 weighted-average number of basic and diluted share estimates for modeling purposes. For the first quarter 2025, we expect basic weighted-average shares outstanding to be approximately 304.4 million shares and diluted weighted-average shares outstanding to be approximately 312.0 million shares. For the full-year 2025, we expect basic weighted-average shares outstanding to be approximately 308.6 million shares and diluted weighted-average shares outstanding to be approximately 316.4 million shares. These share count forecasts do not include the impact of any share buybacks the Company may pursue in the future.

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 2024 financial results and financial outlook for the first quarter and full-year 2025 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 968255. 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 2025 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 the distribution of Class A common stock by certain of our stockholders, 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 and the related conference call and webcast 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, 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 press release and the related conference call and webcast 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, 2023, and other filings and reports we make with the Securities and Exchange Commission from time to time, including our Annual Report on Form 10-K that will be filed for the fiscal year ended December 31, 2024. 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.

Contacts

Investor Relations:

Victoria Hyde-Dunn

vhydedunn@informatica.com

Public Relations:

prteam@informatica.com

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