- Subscription annual recurring revenue (ARR) in the second
quarter increased 16% year-over-year to $1.04 billion
- Cloud Subscription ARR in the second quarter increased 37%
year-over-year to $513 million
- Completed the acquisition of Privitar
- Exceeds high end of guidance across all Q2 2023 metrics; raises
full-year 2023 non-GAAP operating income and adjusted unlevered
free cash flow (after-tax) guidance
Informatica (NYSE: INFA), an enterprise cloud data management
leader, today announced financial results for its second quarter
2023, ended June 30, 2023.
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the full release here:
https://www.businesswire.com/news/home/20230802263241/en/
Informatica Q2 2023 Highlights (Source:
Informatica)
“Q2 was another strong quarter for Informatica as we exceeded
the high end of our guidance range for all our key performance
metrics. Our intelligent data management cloud platform, IDMC,
powered by our AI engine CLAIRE, uniquely positions us in the ‘AI
and data-first world’ as we continue to deliver durable growth and
profitability,” said Amit Walia, Chief Executive Officer at
Informatica. “We are also excited to have closed on the acquisition
of Privitar in July. We believe IDMC is becoming the most
comprehensive and differentiated AI-powered platform at scale as we
continue on our journey to be the enterprise standard for data
management.”
Second Quarter 2023 Financial Highlights:
- GAAP Total Revenues increased 1% year-over-year to $376.0
million. Second quarter total revenues included a negative impact
of approximately $2.2 million from foreign currency exchange rates
(“FX”) year-over-year.
- GAAP Subscription Revenues increased 10% year-over-year to
$227.6 million.
- Total ARR increased 8% year-over-year to $1.55 billion. Second
quarter total ARR included a negative impact of approximately $1.9
million from FX year-over-year.
- GAAP Operating Loss of $5.4 million and Non-GAAP Operating
Income of $87.5 million.
- GAAP Operating Cash Flow of $36.7 million.
- Adjusted Unlevered Free Cash Flow (after-tax) of $76.9 million.
Cash paid for interest of $36.6 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.”
Second Quarter 2023 Business Highlights:
- Processed 60.7 trillion cloud transactions per month for the
quarter ended June 30, 2023, compared to 38.5 trillion cloud
transactions per month in the same quarter last year, an increase
of 58% year-over-year.
- Reported 213 customers that spend more than $1 million in
subscription ARR at the end of June 30, 2023, an increase of 22%
year-over-year.
- Reported 1,940 customers that spend more than $100,000 in
subscription ARR at the end of June 30, 2023, an increase of 8%
year-over-year.
- Achieved a Cloud Subscription net retention rate (NRR) of 116%
at the end of June 30, 2023.
Product Innovation:
- Announced CLAIRE GPT, a generative AI-powered capability that
will deliver the advancements of a natural language-based interface
to Informatica’s Intelligent Data Management Cloud (IDMC),
dramatically simplifying and accelerating how enterprises consume,
process, manage, and analyze data. Alongside CLAIRE GPT,
Informatica will extend AI copilot capabilities to automate more
data management tasks and processes and provide greater
observability across data. CLAIRE GPT will be available in private
preview in the third quarter 2023.
- Announced Cloud Data Integration for PowerCenter, a new cloud
modernization capability to help customers accelerate modernizing
on-premises PowerCenter assets to IDMC while significantly lowering
migration time, costs, and risk. Available in the third quarter
2023.
- Launched Independent Software Vendor (ISV) Innovate, a new
ecosystem partner program empowering ISV partners to create and
integrate solutions exclusively for IDMC.
- Launched IDMC for environmental, social and governance (ESG)
Sustainability, which enables end-to-end data lifecycle, including
discovery, ingestion, integration of data and applications, quality
improvements, a single view of ESG data, governance, privacy, and
data sharing, helping enterprises satisfy ESG initiatives and
regulations.
- Expanded partnership with Microsoft: launched IDMC as an Azure
Native ISV service; integrated IDMC with Microsoft Fabric; launched
Informatica’s Cloud Data Governance and Catalog natively on
Microsoft Azure; and announced that Informatica's secure agent,
Private Link, will be available on Azure in late 2023.
- Expanded partnership with Amazon: launched Amazon Web Services
(AWS) Point of Delivery (PoD) in Japan to scale our market reach in
Asia Pacific; launched Informatica's secure agent, Private Link, on
AWS; and announced the availability of Cloud Data Integration-Free
service for Amazon Redshift.
- Expanded partnership with Google: launched Master Data
Management SaaS natively on Google Cloud Platform (GCP); and
launched GCP PoD in EMEA.
- Expanded partnership with Snowflake: launched new integration
capabilities with the public preview of Superpipe; added support
for the private preview of Informatica’s Snowflake native
application for enterprise data integration offering via Snowflake
Partner Connect; and added support for Apache Iceberg tables.
- Expanded partnership with Databricks: added support for
Databricks Unity catalog across data integration, data quality, and
data catalog and governance; added support for Databricks Connect;
and added support for Databricks SQL and Databricks delta lake for
Informatica’s PowerCenter to IDMC migration program.
- Expanded partnership with ZS, a global consulting firm:
embedded IDMC with ZS’s cloud-native ZAIDYN platform for life
sciences.
Industry Recognition:
- Ranked #1 in IDC's "Worldwide Data Integration and Intelligence
Software Market Shares, 2022: Controlling Data Amid Uncertainty
Report" for the seventh consecutive year. Recognized in five
submarkets: Data Ingestion & Transformation, Data Quality, Data
Intelligence, Master Data Management and Dynamic Data
Movement.
- Named a Leader in The Forrester Wave™ Master Data Management,
Q2 2023 Report for the fifth consecutive time.
- Named a Champion in the Bloor Research Market Update for Data
Quality 2023.
- Named a Leader in the Nucleus Research 2023 iPaaS Technology
Value Matrix.
Corporate Updates:
- Completed the acquisition of Privitar, a leader in data access
management and privacy software, on July 12, 2023. The acquisition
expands Informatica's IDMC offerings, providing a richer set of
capabilities to support new mission-critical workloads and use
cases across data governance, data integration, catalog and
privacy, data quality and master data management.
- Rescheduled Investor Day for December 5, 2023, in San
Francisco, CA.
Third Quarter and Full-Year 2023 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. The acquisition of Privitar is expected to be immaterial
to revenue and earnings in 2023.
Based on information available as of August 2, 2023, guidance
for the third quarter 2023 is as follows:
Third Quarter 2023 Ending September 30, 2023:
- GAAP Total Revenues are expected to be in the range of $395
million to $405 million, representing approximately 8%
year-over-year growth at the midpoint of the range.
- Subscription ARR is expected to be in the range of $1,050
million to $1,060 million, representing approximately 13%
year-over-year growth at the midpoint of the range.
- Cloud Subscription ARR is expected to be in the range of $537
million to $543 million, representing approximately 35%
year-over-year growth at the midpoint of the range.
- Non-GAAP Operating Income is expected to be in the range of
$110 million to $120 million, representing approximately 37%
year-over-year growth at the midpoint of the range.
Based on information available as of August 2, 2023, guidance
for the full-year 2023 is as follows:
Full-Year 2023 Ending December 31, 2023:
- GAAP Total Revenues are expected to be in the range of $1,570
million to $1,590 million, representing approximately 5%
year-over-year growth at the midpoint of the range.
- Total ARR is expected to be in the range of $1,585 million to
$1,615 million, representing approximately 5% year-over-year growth
at the midpoint of the range.
- Subscription ARR is expected to be in the range of $1,098
million to $1,118 million, representing approximately 11%
year-over-year growth at the midpoint of the range.
- Cloud Subscription ARR is expected to be in the range of $604
million to $614 million, representing approximately 35%
year-over-year growth at the midpoint of the range.
- Raising Non-GAAP Operating Income from $400 million to $420
million to a range of $420 million to $440 million, representing
approximately 23% year-over-year growth at the midpoint of the
range.
- Raising Adjusted Unlevered Free Cash Flow (after-tax) from $340
million to $360 million to a range of $370 million to $390 million,
representing approximately 32% year-over-year growth at the
midpoint of the range.
The Company is assuming constant FX rates for the year based on
the rates at the start of the full-year 2023 planning period. For
reference purposes, the assumed FX rates for our top four
currencies in full-year 2023 are as follows:
Currency
Planned Rate
EUR/$
1.07
GBP/$
1.20
$/CAD
1.35
$/JPY
132
Using the foreign exchange rate assumptions noted above, the
Company has incorporated the following FX impacts into 2023
guidance:
Q3 2023
Full-Year 2023
Total Revenues
—
~$1m negative impact y/y
Total ARR
~$1m negative impact y/y
~$11m negative impact y/y
Subscription ARR
~$1m negative impact y/y
~$8m negative impact y/y
Cloud Subscription ARR
—
~$3m negative impact y/y
In addition to the above guidance, the Company is also providing
third quarter and full-year 2023 cash paid for interest estimates
for modeling purposes. For the third quarter 2023, we estimate cash
paid for interest to be approximately $39 million. For the
full-year 2023, we estimate cash paid for interest to be
approximately $149 million.
In addition to the above guidance, the Company is also providing
a third quarter and full-year 2023 weighted-average number of basic
and diluted share estimates for modeling purposes. For the third
quarter 2023, we expect basic weighted-average shares outstanding
to be approximately 289 million shares and diluted weighted-average
shares outstanding to be approximately 294 million shares. For the
full-year 2023, we expect basic weighted-average shares outstanding
to be approximately 288 million shares and diluted weighted-average
shares outstanding to be approximately 293 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 second quarter 2023
financial results and financial outlook for the third quarter and
full-year 2023 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 237691. 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 expectations
regarding achieving profitability and our GAAP and non-GAAP
guidance for the third quarter and 2023 fiscal year, the effect of
foreign currency exchange rates, the effect of macroeconomic
conditions, management’s plans, priorities, initiatives, and
strategies, and management's estimates and expectations regarding
growth of our business, 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 Quarterly Report on Form 10-Q that will be filed for
the second quarter ended June 30, 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
strategic investments, 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), stock-based
compensation, amortization of intangibles, equity compensation
related payments, restructuring, acquisition and other charges, 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 an on-premise term-based subscription
license.
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 on-premise 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. 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 as
separate customers. 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.
About Informatica
Informatica (NYSE: INFA), an Enterprise Cloud Data Management
leader, brings data 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 more than 100 countries, including 85 of
the Fortune 100, rely on Informatica to drive data-led digital
transformation. Informatica. Where data comes to life.
INFORMATICA INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(in thousands, except per
share data)
(unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Revenues:
Subscriptions
$
227,589
$
207,043
$
441,511
$
404,790
Perpetual license
13
2,300
819
4,972
Software revenue
227,602
209,343
442,330
409,762
Maintenance and professional services
148,386
162,696
299,089
324,624
Total revenues
375,988
372,039
741,419
734,386
Cost of revenues:
Subscriptions
38,626
25,177
74,310
49,881
Perpetual license
213
176
393
329
Software costs
38,839
25,353
74,703
50,210
Maintenance and professional services
43,864
52,120
87,023
101,925
Amortization of acquired technology
2,889
8,936
5,763
18,073
Total cost of revenues
85,592
86,409
167,489
170,208
Gross profit
290,396
285,630
573,930
564,178
Operating expenses:
Research and development
87,707
84,064
169,746
159,187
Sales and marketing
134,500
143,597
263,038
272,549
General and administrative
38,756
31,632
80,116
61,206
Amortization of intangible assets
34,348
38,459
68,639
77,120
Restructuring
471
—
27,724
—
Total operating expenses
295,782
297,752
609,263
570,062
Loss from operations
(5,386
)
(12,122
)
(35,333
)
(5,884
)
Interest income
9,920
1,129
17,503
1,495
Interest expense
(37,466
)
(16,560
)
(72,517
)
(29,385
)
Other income, net
2,531
3,837
3,161
8,057
Loss before income taxes
(30,401
)
(23,716
)
(87,186
)
(25,717
)
Income tax expense
122,065
6,790
181,634
7,975
Net loss
$
(152,466
)
$
(30,506
)
$
(268,820
)
$
(33,692
)
Net loss per share attributable to Class A
and Class B-1 common stockholders:
Basic
$
(0.53
)
$
(0.11
)
$
(0.94
)
$
(0.12
)
Diluted
$
(0.53
)
$
(0.11
)
$
(0.94
)
$
(0.12
)
Weighted-average shares used in computing
net loss per share:
Basic
287,109
280,417
286,004
279,599
Diluted
287,109
280,417
286,004
279,599
INFORMATICA INC.
CONSOLIDATED BALANCE
SHEETS
(in thousands, except par
value data)
June 30,
December 31,
2023
2022
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$
632,803
$
497,879
Short-term investments
188,693
218,256
Accounts receivable, net of allowances of
$4,736 and $4,608, respectively
299,909
454,759
Contract assets, net
85,805
95,221
Prepaid expenses and other current
assets
121,321
132,638
Total current assets
1,328,531
1,398,753
Property and equipment, net
155,335
160,574
Operating lease right-of-use-assets
59,897
67,735
Goodwill
2,349,881
2,337,036
Customer relationships intangible asset,
net
732,541
794,898
Other intangible assets, net
23,598
33,094
Deferred tax assets
19,765
13,076
Other assets
158,299
165,733
Total assets
$
4,827,847
$
4,970,899
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
15,594
$
38,002
Accrued liabilities
42,553
58,844
Accrued compensation and related
expenses
95,741
150,118
Current operating lease liabilities
16,285
17,514
Current portion of long-term debt
18,750
18,750
Income taxes payable
119,534
3,758
Contract liabilities
645,249
676,470
Total current liabilities
953,706
963,456
Long-term operating lease liabilities
48,214
55,178
Long-term contract liabilities
18,146
23,007
Long-term debt, net
1,813,835
1,821,760
Deferred tax liabilities
30,431
18,604
Long-term income taxes payable
37,668
30,601
Other liabilities
3,749
3,932
Total liabilities
2,905,749
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 June 30,
2023 and December 31, 2022, respectively; 243,948 and 239,749
shares issued and outstanding as of June 30, 2023 and December 31,
2022, respectively
2,440
2,398
Class B-1 common stock; $0.01 par value
per share; 200,000 and 200,000 shares authorized as of June 30,
2023 and December 31, 2022 respectively; 44,050 and 44,050 shares
issued and outstanding as of June 30, 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 June 30,
2023 and December 31, 2022, respectively; 44,050 and 44,050 shares
issued and outstanding as of June 30, 2023 and December 31, 2022,
respectively
—
—
Additional paid-in-capital
3,400,575
3,282,383
Accumulated other comprehensive loss
(29,336
)
(47,671
)
Accumulated deficit
(1,452,021
)
(1,183,189
)
Total stockholders’ equity
1,922,098
2,054,361
Total liabilities and stockholders’
equity
$
4,827,847
$
4,970,899
INFORMATICA INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Operating activities:
Net loss
$
(152,466
)
$
(30,506
)
$
(268,820
)
$
(33,692
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization
4,273
5,643
8,471
11,370
Non-cash operating lease costs
3,674
4,140
9,024
8,717
Stock-based compensation
55,208
34,558
105,550
63,833
Deferred income taxes
(7,479
)
(51,202
)
3,998
(57,347
)
Amortization of intangible assets and
acquired technology
37,237
47,395
74,402
95,193
Amortization of debt issuance costs
857
918
1,704
1,837
Amortization of investment discount, net
of premium
(900
)
—
(1,751
)
—
Changes in operating assets and
liabilities:
Accounts receivable
(38,332
)
(37,563
)
159,247
140,154
Prepaid expenses and other assets
16,098
8,176
27,081
3,691
Accounts payable and accrued
liabilities
14,749
16,289
(103,327
)
(110,050
)
Income taxes payable
106,566
32,844
128,750
14,863
Contract liabilities
(2,780
)
(14,759
)
(37,742
)
(52,481
)
Net cash provided by operating
activities
36,705
15,933
106,587
86,088
Investing activities:
Purchases of property and equipment
(1,891
)
(356
)
(3,115
)
(1,000
)
Purchases of investments
(117,628
)
(31,442
)
(147,925
)
(48,668
)
Maturities of investments
71,200
23,187
151,700
47,301
Sales of investments
23,798
—
23,798
—
Net cash (used in) / provided by investing
activities
(24,521
)
(8,611
)
24,458
(2,367
)
Financing activities:
Payment of debt
(4,688
)
(4,688
)
(9,376
)
(4,688
)
Proceeds from issuance of common stock
under employee stock purchase plan
—
—
16,131
13,644
Payments of offering costs
—
(1,580
)
—
(2,085
)
Payments for dividends related to Class
B-2 shares
—
—
(12
)
(24
)
Payments for taxes related to net share
settlement of equity awards
(11,100
)
—
(11,100
)
—
Net activity from derivatives with an
other-than-insignificant financing element
—
(2,548
)
—
(7,134
)
Proceeds from issuance of shares under
equity plans
4,172
7,768
7,653
12,474
Net cash (used in) / provided by financing
activities
(11,616
)
(1,048
)
3,296
12,187
Effect of foreign exchange rate changes on
cash and cash equivalents
(672
)
(8,374
)
583
(10,803
)
Net (decrease) / increase in cash and cash
equivalents
(104
)
(2,100
)
134,924
85,105
Cash and cash equivalents at beginning of
period
632,907
545,301
497,879
458,096
Cash and cash equivalents at end of
period
$
632,803
$
543,201
$
632,803
$
543,201
Supplemental disclosures:
Cash paid for interest
$
36,580
$
16,803
$
71,062
$
30,481
Cash paid for income taxes, net of
refunds
$
22,979
$
25,149
$
48,886
$
50,459
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 loss to
Non-GAAP net income
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
(in thousands)
(in thousands)
GAAP net loss
$
(152,466
)
$
(30,506
)
$
(268,820
)
$
(33,692
)
Stock-based compensation
55,208
34,558
105,550
63,833
Amortization of intangibles
37,237
47,395
74,402
95,193
Equity compensation
—
45
—
128
Restructuring
471
—
27,724
—
Executive severance
—
33
—
66
Income tax effect
107,687
(6,622
)
153,922
(22,730
)
Non-GAAP net income
$
48,137
$
44,903
$
92,778
$
102,798
Net loss per share:
Net loss per share—basic
$
(0.53
)
$
(0.11
)
$
(0.94
)
$
(0.12
)
Net loss per share—diluted
$
(0.53
)
$
(0.11
)
$
(0.94
)
$
(0.12
)
Non-GAAP net income per share—basic
$
0.17
$
0.16
$
0.32
$
0.37
Non-GAAP net income per share—diluted
$
0.17
$
0.16
$
0.32
$
0.36
Share count (in thousands):
Weighted-average shares used in computing
Net loss per share—basic
287,109
280,417
286,004
279,599
Weighted-average shares used in computing
Net loss per share—diluted
287,109
280,417
286,004
279,599
Weighted-average shares used in computing
Non-GAAP net income per share—basic
287,109
280,417
286,004
279,599
Weighted-average shares used in computing
Non-GAAP net income per share—diluted
290,980
284,028
289,812
284,335
Reconciliation of GAAP loss from
operations to Non-GAAP income from operations
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
(in thousands)
(in thousands)
GAAP loss from operations
$
(5,386
)
$
(12,122
)
$
(35,333
)
$
(5,884
)
Stock-based compensation
55,208
34,558
105,550
63,833
Amortization of intangibles
37,237
47,395
74,402
95,193
Equity compensation
—
45
—
128
Restructuring
471
—
27,724
—
Non-GAAP income from operations
$
87,530
$
69,876
$
172,343
$
153,270
INFORMATICA INC.
NON-GAAP FINANCIAL MEASURES
AND KEY BUSINESS METRICS
Adjusted EBITDA Reconciliation
Three Months Ended
June 30,
Six Months Ended
June 30,
Trailing Twelve Months ("TTM")
Ended June 30,
2023
2022
2023
2022
2023
(in thousands)
(in thousands)
(in thousands)
GAAP net loss
$
(152,466
)
$
(30,506
)
$
(268,820
)
$
(33,692
)
$
(288,803
)
Income tax expense
122,065
6,790
181,634
7,975
193,137
Interest income
(9,920
)
(1,129
)
(17,503
)
(1,495
)
(25,232
)
Interest expense
37,466
16,560
72,517
29,385
121,152
Other income, net
(2,531
)
(3,837
)
(3,161
)
(8,057
)
(4,100
)
Stock-based compensation
55,208
34,558
105,550
63,833
177,579
Amortization of intangibles
37,237
47,395
74,402
95,193
168,034
Equity compensation
—
45
—
128
204
Restructuring
471
—
27,724
—
27,724
Depreciation
4,208
5,469
8,408
11,194
18,221
Adjusted EBITDA
$
91,738
$
75,345
$
180,751
$
164,464
$
387,916
Adjusted Unlevered Free Cash
Flows
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
(in thousands, except
percentages)
(in thousands, except
percentages)
Total GAAP Revenue
$
375,988
$
372,039
$
741,419
$
734,386
Net cash provided by operating
activities
$
36,705
$
15,933
$
106,587
$
86,088
Less: Purchases of property, plant, and
equipment
(1,891
)
(356
)
(3,115
)
(1,000
)
Add: Equity compensation payments
53
165
121
345
Add: Executive severance
—
—
—
3,919
Add: Restructuring costs
5,476
186
25,620
393
Adjusted Free Cash Flow (after-tax)(1)
$
40,343
$
15,928
$
129,213
$
89,745
Add: Cash paid for interest
36,580
16,803
71,062
30,481
Adjusted Unlevered Free Cash Flows
(after-tax)(1)
$
76,923
$
32,731
$
200,275
$
120,226
Adjusted Free Cash Flow (after-tax)
margin(1)
11
%
4
%
17
%
12
%
Adjusted Unlevered Free Cash Flows
(after-tax) margin(1)
20
%
9
%
27
%
16
%
(1) Includes cash tax payments of $23.0
million and $25.1 million for the three months ended June 30, 2023
and 2022, respectively and $48.9 million and $50.5 million for the
six months ended June 30, 2023 and 2022, respectively.
Key Business Metrics
June 30,
2023
2022
(in thousands, except
percentages)
Cloud Subscription Annual Recurring
Revenue
$
512,615
$
373,303
Self-managed Subscription Annual Recurring
Revenue
529,723
522,815
Subscription Annual Recurring Revenue
1,042,338
896,118
Maintenance Annual Recurring Revenue on
Perpetual Licenses
505,186
540,708
Total Annual Recurring Revenue
$
1,547,524
$
1,436,826
Subscription Net Retention Rate
107
%
113
%
Cloud Subscription Net Retention Rate
116
%
116
%
INFORMATICA INC.
SUPPLEMENTAL
INFORMATION
Additional Business Metrics
June 30,
2023
2022
Maintenance Renewal Rate
94
%
95
%
Subscription Renewal Rate
92
%
94
%
Customers that spend more than $1 million
in Subscription Annual Recurring Revenue(1)
213
175
Customers that spend more than $100,000 in
Subscription Annual Recurring Revenue(2)
1,940
1,791
Cloud transactions processed per month in
trillions(3)
60.7
38.5
(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.
Net Debt Reconciliation
June 30,
December 31
2023
2022
(in millions)
Dollar Term Loan
$
1,852
$
1,861
Less: Cash, cash equivalents, and
short-term investments
(821
)
(716
)
Total net debt
$
1,031
$
1,145
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230802263241/en/
Investor Relations: Victoria Hyde-Dunn
vhydedunn@informatica.com
Public Relations: prteam@informatica.com
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