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Dec 31, 2023

Informatica Q4 2023 Earnings Report

Informatica's Q4 2023 financial results were reported, demonstrating strong growth in cloud subscription ARR and overall revenue.

Key Takeaways

Informatica reported a 12% increase in GAAP total revenue to $445.2 million for Q4 2023. The company's cloud subscription ARR grew by 37% year-over-year to $616.8 million, and subscription ARR increased by 14% to $1.13 billion. Informatica exceeded the high end of guidance across all fourth quarter metrics.

GAAP Total Revenues increased 12% year-over-year to $445.2 million.

GAAP Cloud Subscription Revenue increased 39% year-over-year to $140.3 million, representing 47% of subscription revenues.

Cloud Subscription ARR increased 37% year-over-year to $616.8 million.

Processed 86.0 trillion cloud transactions per month, a 62% increase year-over-year.

Total Revenue
$445M
Previous year: $399M
+11.6%
EPS
$0.32
Previous year: $0.24
+33.3%
Cloud Subscription NRR
119%
Previous year: 111%
+7.2%
Cloud Transactions/Month
86
Previous year: 53T
-100.0%
Cloud ARR Customers
240
Previous year: 206
+16.5%
Gross Profit
$324M
Previous year: $313M
+3.6%
Cash and Equivalents
$992M
Previous year: $498M
+99.3%
Free Cash Flow
$99.4M
Previous year: $91.5M
+8.6%
Total Assets
$5.2B
Previous year: $4.97B
+4.7%

Informatica

Informatica

Forward Guidance

Informatica provided financial guidance for Q1 2024 and full year 2024, including expectations for 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 $375 million to $395 million for Q1 2024, representing approximately 5.4% year-over-year growth at the midpoint of the range.
  • Subscription ARR is expected to be in the range of $1.135 billion to $1.155 billion for Q1 2024, representing approximately 12.2% year-over-year growth at the midpoint of the range.
  • Cloud Subscription ARR is expected to be in the range of $645 million to $655 million for Q1 2024, representing approximately 34.5% year-over-year growth at the midpoint of the range.
  • Non-GAAP Operating Income is expected to be in the range of $97 million to $117 million for Q1 2024, representing approximately 26.2% year-over-year growth at the midpoint of the range.
  • GAAP Total Revenues are expected to be in the range of $1.685 billion to $1.705 billion for full year 2024, representing approximately 6.3% year-over-year growth at the midpoint of the range.

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 $1.718 billion to $1.772 billion for full year 2024, representing approximately 7.3% year-over-year growth at the midpoint of the range.
  • Subscription ARR is expected to be in the range of $1.261 billion to $1.295 billion for full year 2024, representing approximately 12.8% year-over-year growth at the midpoint of the range.
  • Cloud Subscription ARR is expected to be in the range of $826 million to $840 million for full year 2024, representing approximately 35.1% year-over-year growth at the midpoint of the range.
  • Non-GAAP Operating Income is expected to be in the range of $533 million to $553 million for full year 2024, representing approximately 17.5% year-over-year growth at the midpoint of the range.