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Dec 31, 2024
Informatica Q4 2024 Earnings Report
Informatica reported a decline in revenue but strong growth in cloud subscription ARR.
Key Takeaways
Informatica's Q4 2024 revenue declined by 3.78% YoY, primarily due to lower self-managed subscription renewals. However, Cloud Subscription ARR grew 34% YoY, highlighting the company's continued cloud transition. Operating margin improved significantly, driven by cost efficiencies.
Revenue declined 3.78% YoY to $428,305,000 due to lower self-managed subscription renewals.
Cloud Subscription ARR grew 34% YoY to $827,307,000, reflecting strong demand.
Non-GAAP EPS increased 28.13% YoY to $0.41, indicating profitability improvements.
Operating margin rose 650 basis points to 14.80%, driven by cost optimizations.
Informatica
Informatica
Informatica Revenue by Segment
Revenue by Segment
Cloud Subscription Revenue
CapyFin.comSelf-managed Subscription Support Revenue
CapyFin.comMaintenance Revenue
CapyFin.comSelf-managed Subscription License Revenue
CapyFin.comProfessional Services Revenue
CapyFin.com Forward Guidance
Informatica expects moderate revenue growth in FY25, driven by continued cloud transition but offset by foreign exchange headwinds and weaker self-managed subscription renewals.
Positive Outlook
- Cloud Subscription ARR expected to reach approximately $1 billion by FY25-end.
- Total revenue guidance for FY25 in the range of $1.67B - $1.72B (+3.4% YoY at midpoint).
- Non-GAAP operating income expected to grow 3.5% YoY to a range of $546M - $566M.
- Strategic partnerships with AWS, Databricks, and Google Cloud expanding.
- Cost efficiencies expected to drive improved profitability metrics.
Challenges Ahead
- Lower-than-expected self-managed subscription renewals impacting revenue.
- FX headwinds projected to negatively impact total revenue by $20M in FY25.
- Subscription renewal rates slightly declining YoY.
- Net new bookings for cloud subscriptions were below expectations in Q4.
- Maintenance ARR expected to decline as customers transition to cloud offerings.