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Sep 30, 2023
Informatica Q3 2023 Earnings Report
Informatica's Q3 2023 financial results were reported, demonstrating strong performance and exceeding guidance across key metrics.
Key Takeaways
Informatica reported a strong Q3 2023, exceeding guidance for both top and bottom line. Key highlights include a 15% year-over-year increase in Subscription ARR to $1.08 billion and a 37% year-over-year increase in Cloud Subscription ARR to $550 million. The company also announced a restructuring plan to streamline costs and is raising its full-year Non-GAAP Operating Income and Adjusted Unlevered Free Cash Flow guidance.
Subscription ARR increased by 15% year-over-year, reaching $1.08 billion.
Cloud Subscription ARR grew by 37% year-over-year, totaling $550 million.
GAAP Total Revenues increased 10% year-over-year to $408.6 million.
The company is implementing a restructuring plan to reduce the global workforce by 10%.
Informatica
Informatica
Informatica Revenue by Segment
Revenue by Segment
Subscription Revenue
CapyFin.comMaintenance & Professional Services Revenue
CapyFin.com Forward Guidance
Informatica provided financial guidance for Q4 and full-year 2023, including GAAP Total Revenues, Subscription ARR, Cloud Subscription ARR and Non-GAAP Operating Income.
Positive Outlook
- GAAP Total Revenues are expected to be in the range of $420 million to $440 million for Q4 2023.
- Subscription ARR is expected to be in the range of $1,098 million to $1,118 million for Q4 2023.
- Cloud Subscription ARR is expected to be in the range of $604 million to $614 million for Q4 2023.
- Non-GAAP Operating Income is expected to be in the range of $130 million to $150 million for Q4 2023.
- GAAP Total Revenues are expected to be in the range of $1,570 million to $1,590 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 ARR is expected to be in the range of $1,585 million to $1,615 million for full year 2023.
- Subscription ARR is expected to be in the range of $1,098 million to $1,118 million for full year 2023.
- Cloud Subscription ARR is expected to be in the range of $604 million to $614 million for full year 2023.
- Non-GAAP Operating Income is expected to be in the range of $130 million to $150 million for Q4 2023.
Revenue & Expenses
Visualization of income flow from segment revenue to net income