Informatica Announces Approval to Commence Open Market Repurchases

Rhea-AI Summary

Informatica (NYSE: INFA) announced its Board of Directors' approval to begin repurchasing its Class A common stock through open market transactions under a $400 million authorization. The company plans to repurchase approximately $100 million of stock by the end of 2024, funded with cash on hand. The actual repurchase amount will vary based on stock price, trading volume, and market conditions. As of September 30, 2024, Informatica had about 313 million diluted shares outstanding and $1.2 billion in cash, cash equivalents and short-term investments.

Positive

• Board approved substantial $400 million stock repurchase program
• Strong cash position of $1.2 billion available for repurchases
• Immediate commitment to repurchase $100 million by end of 2024

Negative

• None.

Insights

Financial Analyst

This $400 million stock buyback program represents a significant capital allocation decision, with $100 million targeted for 2024. With a cash position of $1.2 billion, the company has ample liquidity to execute this program while maintaining operational flexibility. The buyback, representing about 5.3% of market cap, signals management's confidence in the company's valuation and future prospects.

The timing is strategic, potentially taking advantage of current market conditions. For shareholders, this reduces the float and could provide price support while increasing earnings per share. However, investors should note that actual repurchase execution depends on market conditions and may vary from the announced target.

REDWOOD CITY, Calif.--(BUSINESS WIRE)-- Informatica (NYSE: INFA), a leader in enterprise AI-powered cloud data management, today announced that a committee of its Board of Directors approved the commencement of repurchases of its Class A common stock through open market transactions under a $400 million stock repurchase authorization that was approved by Informatica's Board of Directors on October 29, 2024.

Informatica expects to repurchase approximately $100 million of its Class A common stock by the end of 2024. The actual amount repurchased will depend on a variety of factors, including stock price, trading volume, and general business and market conditions. Therefore, there can be no assurances as to the timing and quantity of any repurchases. Open market repurchases may be structured to occur in accordance with the requirements of Rule 10b-18 under the Securities Exchange Act of 1934, as amended. Informatica may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of shares of its Class A common stock under this authorization.

The repurchases will be funded with Informatica’s cash on hand. As of September 30, 2024, Informatica had approximately 313 million diluted shares outstanding and $1.2 billion in cash, cash equivalents and short-term investments.

Forward-Looking Statements

This news release contains forward-looking statements, including statements that relate to Informatica’s stock repurchase authorization and expected funding for those repurchases. Forward-looking statements contained in this news release relating to expectations about future events or results are based upon information available to Informatica as of the date hereof. Readers are cautioned that these forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. As a result, actual results may differ materially and adversely from those expressed in any forward-looking statement.

The foregoing and other risks are detailed from time to time in our periodic reports filed with the Securities and Exchange Commission ("SEC"), including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on February 22, 2024, and our latest Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, which was filed with the SEC on November 5, 2024. Informatica undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

About Informatica

Informatica (NYSE: INFA), a leader in enterprise AI-powered cloud data management, 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 more than 80 of the Fortune 100, rely on Informatica to drive data-led digital transformation. Informatica. Where data and AI come to life.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241118988914/en/

Investor Relations

Victoria Hyde-Dunn

vhydedunn@informatica.com

Source: Informatica

FAQ

How much stock will Informatica (INFA) repurchase by the end of 2024?

Informatica plans to repurchase approximately $100 million of its Class A common stock by the end of 2024.

What is the total amount authorized for Informatica's (INFA) stock repurchase program?

Informatica's Board of Directors approved a $400 million stock repurchase authorization on October 29, 2024.

How many shares does Informatica (INFA) have outstanding as of September 2024?

As of September 30, 2024, Informatica had approximately 313 million diluted shares outstanding.

How much cash does Informatica (INFA) have available for the stock repurchase?

As of September 30, 2024, Informatica had $1.2 billion in cash, cash equivalents and short-term investments.