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Jun 30, 2023
Informatica Q2 2023 Earnings Report
Informatica's Q2 2023 financial results were reported, demonstrating strong performance and exceeding guidance.
Key Takeaways
Informatica reported a strong second quarter in 2023, exceeding the high end of its guidance range across all key performance metrics. GAAP Total Revenues increased 1% year-over-year to $376.0 million, and GAAP Subscription Revenues increased 10% year-over-year to $227.6 million. The company also completed the acquisition of Privitar and raised its full-year 2023 non-GAAP operating income and adjusted unlevered free cash flow guidance.
Subscription ARR increased 16% year-over-year to $1.04 billion.
Cloud Subscription ARR increased 37% year-over-year to $513 million.
GAAP Total Revenues increased 1% year-over-year to $376.0 million.
Processed 60.7 trillion cloud transactions per month, an increase of 58% year-over-year.
Informatica
Informatica
Informatica Revenue by Segment
Revenue by Segment
Cloud Subscription Revenue
CapyFin.com Forward Guidance
Informatica provided guidance for the third quarter and full year 2023, including expectations for GAAP Total Revenues, Subscription ARR, Cloud Subscription ARR, and Non-GAAP Operating Income. The acquisition of Privitar is expected to be immaterial to revenue and earnings in 2023.
Positive Outlook
- GAAP Total Revenues are expected to be in the range of $395 million to $405 million for Q3 2023.
- Subscription ARR is expected to be in the range of $1,050 million to $1,060 million for Q3 2023.
- Cloud Subscription ARR is expected to be in the range of $537 million to $543 million for Q3 2023.
- Non-GAAP Operating Income is expected to be in the range of $110 million to $120 million for Q3 2023.
- Raising Adjusted Unlevered Free Cash Flow (after-tax) from $340 million to $360 million to a range of $370 million to $390 million for full year 2023.
Challenges Ahead
- Guidance includes the impact from macroeconomic conditions and expected foreign exchange headwinds versus the prior year comparable periods.
- Total Revenues are expected to have ~$1m negative impact y/y for Q3 2023 due to FX.
- Total ARR is expected to have ~$1m negative impact y/y for Q3 2023 due to FX.
- Subscription ARR is expected to have ~$1m negative impact y/y for Q3 2023 due to FX.
- Cash paid for interest to be approximately $39 million for Q3 2023