Informatica Reports First Quarter 2023 Financial Results
-
Subscription annualized recurring revenue (ARR) in the first quarter increased
20% year-over-year to$1.02 billion -
Cloud subscription ARR in the first quarter increased
41% year-over-year to$483 million -
Cloud subscription net retention rate (NRR) of
118%
Informatica Q1 2023 Highlights (Graphic: Business Wire)
“Informatica delivered an outstanding first quarter that exceeded all key operating metrics, highlighted by cloud subscription ARR growth of
First Quarter 2023 Financial Highlights:
-
GAAP Total Revenues increased
1% year-over-year to$365.4 million $7.0 million -
GAAP Subscription Revenues increased
8% year-over-year to$213.9 million -
Total ARR increased
10% year-over-year to$1.53 billion $3.4 million -
GAAP Operating Loss of
$29.9 million $84.8 million -
GAAP Operating Cash Flow of
$69.9 million -
Adjusted Unlevered Free Cash Flow (after-tax) of
$123.4 million $34.5 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.”
First Quarter 2023 Business Highlights:
-
Processed 54.3 trillion cloud transactions per month for the quarter ended March 31, 2023, as compared to 32.2 trillion cloud transactions per month in the same quarter last year, an increase of
69% year-over-year. -
Reported 208 customers that spend more than
$1 million 27% year-over-year. -
Reported 1,921 customers that spend more than
$100,000 11% year-over-year. -
Achieved a Cloud Subscription NRR of
118% at the end of March 31, 2023.*
* Beginning with the first quarter of fiscal 2023, we introduced Cloud Subscription NRR, a new key business metric. Please refer to the section titled Key Business Metrics below for its definition.
Product Innovation:
- Launched Informatica Cloud Data Integration (CDI) Free and PayGo solution — the industry's only free cloud data loading, integration and ELT/ETL service — supported by major data warehouses/lake solutions, including Amazon Redshift, Azure Synapse, Databricks Delta Lake, Google BigQuery, and Snowflake. CDI-Free is an easy-to-use cloud service that allows users to process up to 20 million rows for ELT or reach 10 processing hours for ETL per month for free. CDI-PayGo has all the capabilities of CDI-Free with no limit on processing rows or hours of usage, in addition to customer support and SOC2 compliance.
- Launched Flex Informatica Processing Unit (Flex IPU) consumption-based pricing model in which IPUs expire at the end of the contract anniversary year, providing more flexibility for users with highly variable or seasonal usage patterns.
-
Launched Microsoft Azure Cloud Point of Delivery (PoD) in
Dubai to scale our market reach in theMiddle East .
Industry Recognition:
- Earned "An Outstanding Customer Service Experience" by J.D. Power for Second Consecutive Year in Certified Assisted Technical Support Program.
- Named a Leader in IDC MarketScape: Worldwide Cloud Integration Software and Services (iPaaS) 2023 Vendor Assessment.
- Named a Leader in the Forrester Wave™ Data Management for Analytics, Q1 2023.
- Earned the top #1 ranking in the 2023 Data Engineering Market Study from Dresner Advisory Services.
- Named a Leader in KupperingCole Leadership Compass for Data Quality and Integration Solutions.
- Recognized in Constellation Research ShortList™ for Master Data Management and Integration as a Service for Q1 2023.
- Named a Leader in Product Experience Management 2023 Value Index Vendor Report by Ventana Research.
- Named a Leader in the GigaOm Radar for Data Pipelines.
- Recognized by CRN as a Cloud 100 Company for 2023.
Environmental, Social and Governance ("ESG") Initiatives:
- Published inaugural Informatica 2022 Sustainability Report.
Second 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.
Based on information available as of May 3, 2023, guidance for the second quarter of 2023 is as follows:
Second Quarter 2023 Ending June 30, 2023:
-
GAAP Total Revenues are expected to be in the range of
$355 million $365 million 3% year-over-year decrease at the midpoint of the range. -
Subscription ARR is expected to be in the range of
$1,020 million $1,030 million 14% year-over-year growth at the midpoint of the range. -
Cloud Subscription ARR is expected to be in the range of
$501 million $507 million 35% year-over-year growth at the midpoint of the range. -
Non-GAAP Operating Income is expected to be in the range of
$67 million $77 million 3% year-over-year growth at the midpoint of the range.
Based on information available as of May 3, 2023, the Company reaffirms previously provided guidance for the full-year 2023, as follows:
Full-Year 2023 Ending December 31, 2023:
-
GAAP Total Revenues are expected to be in the range of
$1,570 million $1,590 million 5% year-over-year growth at the midpoint of the range. -
Total ARR is expected to be in the range of
$1,585 million $1,615 million 5% year-over-year growth at the midpoint of the range. -
Subscription ARR is expected to be in the range of
$1,098 million $1,118 million 11% year-over-year growth at the midpoint of the range. -
Cloud Subscription ARR is expected to be in the range of
$604 million $614 million 35% year-over-year growth at the midpoint of the range. -
Non-GAAP Operating Income is expected to be in the range of
$400 million $420 million 17% 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
$340 million $360 million 21% year-over-year growth at the midpoint of the range.
The Company is assuming constant FX rates for the year based on the rates at the start of the planning period. For reference purposes, the assumed FX rates for our top four currencies in full-year 2023 are as follows:
Currency |
|
Planned Rate |
EUR/$ |
|
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 impact into 2023 guidance:
|
Q2 2023 |
|
Full-Year 2023 |
Total Revenues |
|
|
|
Total ARR |
|
|
|
Subscription ARR |
|
|
|
Cloud Subscription ARR |
— |
|
|
In addition to the above guidance, the Company is also providing second quarter and full-year 2023 cash paid for interest estimates for modeling purposes. For the second quarter 2023, we estimate cash paid for interest to be approximately
In addition to the above guidance, the Company is also providing second quarter and full-year 2023 weighted-average number of basic and diluted share estimates for modeling purposes. For the second quarter 2023, we expect basic weighted-average shares outstanding to be approximately 287 million shares and diluted weighted-average shares outstanding to be approximately 291 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 first quarter 2023 financial results and financial outlook for the second 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
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 GAAP and non-GAAP guidance for the second 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, 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 COVID-19 or other 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 first quarter ended March 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
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 restructuring activities and executive severance, 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, 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
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. Subscription NRR 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 price decreases, usage decreases and to cancellations.
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.
IDC Marketscape Disclaimer: IDC MarketScape vendor assessment model is designed to provide an overview of the competitive fitness of ICT (information and communications technology) suppliers in a given market. The research methodology utilizes a rigorous scoring methodology based on both qualitative and quantitative criteria that results in a single graphical illustration of each vendor’s position within a given market. IDC MarketScape provides a clear framework in which the product and service offerings, capabilities and strategies, and current and future market success factors of IT and telecommunications vendors can be meaningfully compared. The framework also provides technology buyers with a 360-degree assessment of the strengths and weaknesses of current and prospective vendors.
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), powered by AI and an end-to-end data management platform that connects, manages and unifies data across any multi-cloud, hybrid system, democratizing data and enabling enterprises to modernize and advance their business strategies. Customers in more than 100 countries and 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 March 31, |
||||||
|
|
2023 |
|
|
|
2022 |
|
|
(unaudited) |
||||||
Revenues: |
|
|
|
||||
Subscriptions |
$ |
213,922 |
|
|
$ |
197,747 |
|
Perpetual license |
|
806 |
|
|
|
2,672 |
|
Software revenue |
|
214,728 |
|
|
|
200,419 |
|
Maintenance and professional services |
|
150,703 |
|
|
|
161,928 |
|
Total revenues |
|
365,431 |
|
|
|
362,347 |
|
Cost of revenues: |
|
|
|
||||
Subscriptions |
|
35,684 |
|
|
|
24,704 |
|
Perpetual license |
|
180 |
|
|
|
153 |
|
Software costs |
|
35,864 |
|
|
|
24,857 |
|
Maintenance and professional services |
|
43,159 |
|
|
|
49,805 |
|
Amortization of acquired technology |
|
2,874 |
|
|
|
9,137 |
|
Total cost of revenues |
|
81,897 |
|
|
|
83,799 |
|
Gross profit |
|
283,534 |
|
|
|
278,548 |
|
Operating expenses: |
|
|
|
||||
Research and development |
|
82,039 |
|
|
|
75,123 |
|
Sales and marketing |
|
128,538 |
|
|
|
128,952 |
|
General and administrative |
|
41,360 |
|
|
|
29,574 |
|
Amortization of intangible assets |
|
34,291 |
|
|
|
38,661 |
|
Restructuring |
|
27,253 |
|
|
|
— |
|
Total operating expenses |
|
313,481 |
|
|
|
272,310 |
|
(Loss) income from operations |
|
(29,947 |
) |
|
|
6,238 |
|
Interest income |
|
7,583 |
|
|
|
366 |
|
Interest expense |
|
(35,051 |
) |
|
|
(12,825 |
) |
Other income, net |
|
630 |
|
|
|
4,220 |
|
Loss before income taxes |
|
(56,785 |
) |
|
|
(2,001 |
) |
Income tax expense |
|
59,569 |
|
|
|
1,185 |
|
Net loss |
$ |
(116,354 |
) |
|
$ |
(3,186 |
) |
Net loss per share attributable to Class A and Class B-1 common stockholders: |
|
|
|
||||
Basic |
$ |
(0.41 |
) |
|
$ |
(0.01 |
) |
Diluted |
$ |
(0.41 |
) |
|
$ |
(0.01 |
) |
Weighted-average shares used in computing net loss per share: |
|
|
|
||||
Basic |
|
284,886 |
|
|
|
278,772 |
|
Diluted |
|
284,886 |
|
|
|
278,772 |
|
INFORMATICA INC. CONSOLIDATED BALANCE SHEETS (in thousands, except par value data) (unaudited) |
|||||||
|
March 31, |
|
December 31, |
||||
|
|
2023 |
|
|
|
2022 |
|
|
(unaudited) |
|
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
632,907 |
|
|
$ |
497,879 |
|
Short-term investments |
|
165,127 |
|
|
|
218,256 |
|
Accounts receivable, net of allowances of |
|
261,634 |
|
|
|
454,759 |
|
Contract assets, net |
|
93,881 |
|
|
|
95,221 |
|
Prepaid expenses and other current assets |
|
125,322 |
|
|
|
132,638 |
|
Total current assets |
|
1,278,871 |
|
|
|
1,398,753 |
|
Property and equipment, net |
|
158,053 |
|
|
|
160,574 |
|
Operating lease right-of-use-assets |
|
62,980 |
|
|
|
67,735 |
|
Goodwill |
|
2,346,596 |
|
|
|
2,337,036 |
|
Customer relationships intangible asset, net |
|
764,492 |
|
|
|
794,898 |
|
Other intangible assets, net |
|
28,401 |
|
|
|
33,094 |
|
Deferred tax assets |
|
13,799 |
|
|
|
13,076 |
|
Other assets |
|
162,421 |
|
|
|
165,733 |
|
Total assets |
$ |
4,815,613 |
|
|
$ |
4,970,899 |
|
Liabilities and Stockholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
20,393 |
|
|
$ |
38,002 |
|
Accrued liabilities |
|
40,758 |
|
|
|
58,844 |
|
Accrued compensation and related expenses |
|
74,563 |
|
|
|
150,118 |
|
Current operating lease liabilities |
|
16,418 |
|
|
|
17,514 |
|
Current portion of long-term debt |
|
18,750 |
|
|
|
18,750 |
|
Income taxes payable |
|
18,629 |
|
|
|
3,758 |
|
Contract liabilities |
|
644,894 |
|
|
|
676,470 |
|
Total current liabilities |
|
834,405 |
|
|
|
963,456 |
|
Long-term operating lease liabilities |
|
51,398 |
|
|
|
55,178 |
|
Long-term contract liabilities |
|
21,921 |
|
|
|
23,007 |
|
Long-term debt, net |
|
1,817,792 |
|
|
|
1,821,760 |
|
Deferred tax liabilities |
|
31,351 |
|
|
|
18,604 |
|
Long-term income taxes payable |
|
32,548 |
|
|
|
30,601 |
|
Other liabilities |
|
4,610 |
|
|
|
3,932 |
|
Total liabilities |
|
2,794,025 |
|
|
|
2,916,538 |
|
Stockholders’ equity: |
|
|
|
||||
Class A common stock; |
|
2,423 |
|
|
|
2,398 |
|
Class B-1 common stock; |
|
440 |
|
|
|
440 |
|
Class B-2 common stock; |
|
— |
|
|
|
— |
|
Additional paid-in-capital |
|
3,352,312 |
|
|
|
3,282,383 |
|
Accumulated other comprehensive loss |
|
(34,032 |
) |
|
|
(47,671 |
) |
Accumulated deficit |
|
(1,299,555 |
) |
|
|
(1,183,189 |
) |
Total stockholders’ equity |
|
2,021,588 |
|
|
|
2,054,361 |
|
Total liabilities and stockholders’ equity |
$ |
4,815,613 |
|
|
$ |
4,970,899 |
|
INFORMATICA INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) |
|||||||
|
Three Months Ended March 31, |
||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
||||||
Operating activities: |
|
|
|
||||
Net loss |
$ |
(116,354 |
) |
|
$ |
(3,186 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
4,198 |
|
|
|
5,727 |
|
Non-cash operating lease costs |
|
5,350 |
|
|
|
4,577 |
|
Stock-based compensation |
|
50,342 |
|
|
|
29,275 |
|
Deferred income taxes |
|
11,477 |
|
|
|
(6,145 |
) |
Amortization of intangible assets and acquired technology |
|
37,165 |
|
|
|
47,798 |
|
Amortization of debt issuance costs |
|
847 |
|
|
|
919 |
|
Amortization of investment discount, net of premium |
|
(851 |
) |
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
197,579 |
|
|
|
177,717 |
|
Prepaid expenses and other assets |
|
10,983 |
|
|
|
(4,485 |
) |
Accounts payable and accrued liabilities |
|
(118,076 |
) |
|
|
(126,339 |
) |
Income taxes payable |
|
22,184 |
|
|
|
(17,981 |
) |
Contract liabilities |
|
(34,962 |
) |
|
|
(37,722 |
) |
Net cash provided by operating activities |
|
69,882 |
|
|
|
70,155 |
|
Investing activities: |
|
|
|
||||
Purchases of property and equipment |
|
(1,224 |
) |
|
|
(644 |
) |
Purchases of investments |
|
(30,297 |
) |
|
|
(17,226 |
) |
Maturities of investments |
|
80,500 |
|
|
|
24,114 |
|
Net cash provided by investing activities |
|
48,979 |
|
|
|
6,244 |
|
Financing activities: |
|
|
|
||||
Payment of debt |
|
(4,688 |
) |
|
|
— |
|
Proceeds from issuance of common stock under employee stock purchase plan |
|
16,131 |
|
|
|
13,644 |
|
Payments of offering costs |
|
— |
|
|
|
(505 |
) |
Payments for dividends related to Class B-2 shares |
|
(12 |
) |
|
|
(24 |
) |
Net activity from derivatives with an other-than-insignificant financing element |
|
— |
|
|
|
(4,586 |
) |
Proceeds from issuance of shares under equity plans |
|
3,481 |
|
|
|
4,706 |
|
Net cash provided by financing activities |
|
14,912 |
|
|
|
13,235 |
|
Effect of foreign exchange rate changes on cash and cash equivalents |
|
1,255 |
|
|
|
(2,429 |
) |
Net increase in cash and cash equivalents |
|
135,028 |
|
|
|
87,205 |
|
Cash and cash equivalents at beginning of period |
|
497,879 |
|
|
|
458,096 |
|
Cash and cash equivalents at end of period |
$ |
632,907 |
|
|
$ |
545,301 |
|
Supplemental disclosures: |
|
|
|
||||
Cash paid for interest |
$ |
34,482 |
|
|
$ |
13,678 |
|
Cash paid for income taxes, net of refunds |
$ |
25,907 |
|
|
$ |
25,311 |
|
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 March 31, |
|||||||
|
|
2023 |
|
|
|
2022 |
|
|
(in thousands) |
||||||
GAAP net loss |
$ |
(116,354 |
) |
|
$ |
(3,186 |
) |
Stock-based compensation |
|
50,342 |
|
|
|
29,275 |
|
Amortization of intangibles |
|
37,165 |
|
|
|
47,798 |
|
Equity compensation |
|
— |
|
|
|
83 |
|
Restructuring |
|
27,253 |
|
|
|
— |
|
Executive severance |
|
— |
|
|
|
33 |
|
Income tax effect |
|
46,235 |
|
|
|
(16,108 |
) |
Non-GAAP net income |
$ |
44,641 |
|
|
$ |
57,895 |
|
|
|
|
|
||||
Net income (loss) per share: |
|
|
|
||||
Net loss per share—basic |
$ |
(0.41 |
) |
|
$ |
(0.01 |
) |
Net loss per share—diluted |
$ |
(0.41 |
) |
|
$ |
(0.01 |
) |
Non-GAAP net income per share—basic |
$ |
0.16 |
|
|
$ |
0.21 |
|
Non-GAAP net income per share—diluted |
$ |
0.15 |
|
|
$ |
0.20 |
|
|
|
|
|
||||
Share count (in thousands): |
|
|
|
||||
Weighted-average shares used in computing net loss per share—basic |
|
284,886 |
|
|
|
278,772 |
|
Weighted-average shares used in computing net loss per share—diluted |
|
284,886 |
|
|
|
278,772 |
|
Weighted-average shares used in computing Non-GAAP net income per share—basic |
|
284,886 |
|
|
|
278,772 |
|
Weighted-average shares used in computing Non-GAAP net income per share—diluted |
|
288,632 |
|
|
|
284,623 |
|
Reconciliation of GAAP (loss) income from operations to Non-GAAP income from operations |
|||||||
|
Three Months Ended March 31, |
||||||
|
|
2023 |
|
|
|
2022 |
|
|
(in thousands) |
||||||
GAAP (loss) income from operations |
$ |
(29,947 |
) |
|
$ |
6,238 |
|
Stock-based compensation |
|
50,342 |
|
|
|
29,275 |
|
Amortization of intangibles |
|
37,165 |
|
|
|
47,798 |
|
Equity compensation |
|
— |
|
|
|
83 |
|
Restructuring |
|
27,253 |
|
|
|
— |
|
Non-GAAP income from operations |
$ |
84,813 |
|
|
$ |
83,394 |
|
INFORMATICA INC. NON-GAAP FINANCIAL MEASURES AND KEY BUSINESS METRICS |
|||||||||||
Adjusted EBITDA Reconciliation |
|||||||||||
|
Three Months Ended March 31, |
|
Trailing Twelve Months ("TTM") Ended March 31, |
||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
(in thousands) |
|
(in thousands) |
||||||||
GAAP net loss |
$ |
(116,354 |
) |
|
$ |
(3,186 |
) |
|
$ |
(166,843 |
) |
Income tax expense |
|
59,569 |
|
|
|
1,185 |
|
|
|
77,862 |
|
Interest income |
|
(7,583 |
) |
|
|
(366 |
) |
|
|
(16,441 |
) |
Interest expense |
|
35,051 |
|
|
|
12,825 |
|
|
|
100,246 |
|
Other income, net |
|
(630 |
) |
|
|
(4,220 |
) |
|
|
(5,406 |
) |
Stock-based compensation |
|
50,342 |
|
|
|
29,275 |
|
|
|
156,929 |
|
Amortization of intangibles |
|
37,165 |
|
|
|
47,798 |
|
|
|
178,192 |
|
Equity compensation |
|
— |
|
|
|
83 |
|
|
|
249 |
|
Restructuring |
|
27,253 |
|
|
|
— |
|
|
|
27,253 |
|
Depreciation |
|
4,200 |
|
|
|
5,725 |
|
|
|
19,482 |
|
Adjusted EBITDA |
$ |
89,013 |
|
|
$ |
89,119 |
|
|
$ |
371,523 |
|
Adjusted Unlevered Free Cash Flows |
|||||||
|
Three Months Ended March 31, |
||||||
|
|
2023 |
|
|
|
2022 |
|
|
(in thousands, except percentages) |
||||||
Total GAAP Revenue |
|
365,431 |
|
|
|
362,347 |
|
Net cash provided by operating activities |
|
69,882 |
|
|
|
70,155 |
|
Less: Purchases of property, plant, and equipment |
|
(1,224 |
) |
|
|
(644 |
) |
Add: Equity compensation payments |
|
68 |
|
|
|
180 |
|
Add: Executive severance |
|
— |
|
|
|
3,919 |
|
Add: Restructuring costs |
|
20,144 |
|
|
|
207 |
|
Adjusted Free Cash Flow (after-tax)(1) |
|
88,870 |
|
|
|
73,817 |
|
Add: Cash paid for interest |
|
34,482 |
|
|
|
13,678 |
|
Adjusted Unlevered Free Cash Flows (after-tax)(1) |
$ |
123,352 |
|
|
$ |
87,495 |
|
|
|
|
|
||||
Adjusted Free Cash Flow (after-tax) margin(1) |
|
24 |
% |
|
|
20 |
% |
Adjusted Unlevered Free Cash Flows (after-tax) margin(1) |
|
34 |
% |
|
|
24 |
% |
(1) |
Includes cash tax payments of |
Key Business Metrics |
|||||||
|
March 31, |
||||||
|
|
2023 |
|
|
|
2022 |
|
|
(in thousands, except percentages) |
||||||
Cloud Subscription Annual Recurring Revenue |
$ |
483,294 |
|
|
$ |
343,482 |
|
Self-managed Subscription Annual Recurring Revenue |
|
537,612 |
|
|
|
505,593 |
|
Subscription Annual Recurring Revenue |
|
1,020,906 |
|
|
|
849,075 |
|
Maintenance Annual Recurring Revenue on Perpetual Licenses |
|
512,497 |
|
|
|
547,953 |
|
Total Annual Recurring Revenue |
$ |
1,533,403 |
|
|
$ |
1,397,028 |
|
|
|
|
|
||||
Subscription Net Retention Rate |
|
110 |
% |
|
|
113 |
% |
Cloud Subscription Net Retention Rate(1) |
|
118 |
% |
|
|
116 |
% |
(1) |
Beginning in the first quarter of 2023, the Company's key business metrics include the Cloud Subscription Net Retention Rates. Presented below are Cloud Subscription Net Retention Rates for the quarters of 2022 and 2021. |
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
||||||||
2022 |
|
2022 |
|
2022 |
|
2022 |
|
2021 |
|
2021 |
|
2021 |
|
2021 |
||||||||
117 |
% |
|
115 |
% |
|
116 |
% |
|
116 |
% |
|
115 |
% |
|
114 |
% |
|
113 |
% |
|
111 |
% |
INFORMATICA INC. SUPPLEMENTAL INFORMATION |
|||||||
Additional Business Metrics |
|||||||
|
March 31, |
||||||
|
2023 |
|
|
2022 |
|
||
Maintenance Renewal Rate |
96 |
% |
|
96 |
% |
||
Subscription Renewal Rate |
93 |
% |
|
93 |
% |
||
Customers that spend more than |
208 |
|
|
164 |
|
||
Customers that spend more than |
1,921 |
|
|
1,732 |
|
||
Cloud transactions processed per month in trillions (3) |
54.3 |
|
|
32.2 |
|
||
(1) |
Total number of customers that spend more than |
(2) |
Total number of customers that spend more than |
(3) |
Total number of cloud transactions processed on our platform per month in trillions, which measures data processed. |
| Net Debt Reconciliation | |||||||
|
March 31, |
|
December 31 |
||||
|
|
2023 |
|
|
|
2022 |
|
|
(in millions) |
||||||
Dollar Term Loan |
$ |
1,856 |
|
|
$ |
1,861 |
|
Less: Cash, cash equivalents, and short-term investments |
|
(798 |
) |
|
|
(716 |
) |
Total net debt |
$ |
1,058 |
|
|
$ |
1,145 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230503005055/en/
Investor Relations:
Victoria Hyde-Dunn
vhydedunn@informatica.com
Public Relations:
prteam@informatica.com
Source: Informatica
