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Mar 31
Informatica Q1 2025 Earnings Report
Informatica delivered modest revenue growth in Q1 2025 with strong gains in cloud ARR and operating margins, outperforming guidance midpoints.
Key Takeaways
Informatica exceeded Q1 2025 expectations with strong cloud subscription ARR growth of 30% YoY, improved operating margins, and robust cash flow. Total revenue rose nearly 4%, driven by cloud momentum and strategic product innovation.
Cloud Subscription ARR grew 30% YoY to $848 million.
Total revenue reached $403.9 million, up 3.9% YoY.
Cloud transactions processed hit 119.3 trillion per month, up 30%.
Adjusted unlevered free cash flow reached $186 million.
Informatica
Informatica
Informatica Revenue by Segment
Revenue by Segment
Subscription Revenue
CapyFin.comMaintenance & Professional Services Revenue
CapyFin.com Forward Guidance
Informatica reaffirmed its FY25 guidance, projecting modest revenue and ARR growth, strong cloud ARR gains, and healthy cash generation amid macro pressures.
Positive Outlook
- Cloud Subscription ARR expected to grow 25.1% YoY to $1.019–$1.051 billion.
- Total revenue forecasted at $1.67–$1.72 billion, up ~3.4% YoY.
- Adjusted unlevered free cash flow guidance of $540–$580 million.
- Robust GenAI and cloud adoption trends driving growth.
- Expanded partnerships with Databricks and Google Cloud.
Challenges Ahead
- Cloud Subscription NRR decreased from 124% to 120% YoY.
- Non-GAAP operating income expected to decline in Q2.
- Macroeconomic conditions and FX headwinds persist.
- Lower self-managed and maintenance ARR projected as cloud transition continues.
- No near-term EPS growth; GAAP net income remained minimal.
Revenue & Expenses
Visualization of income flow from segment revenue to net income