• Cloud Subscription Annualized Recurring Revenue (ARR) increased to $848 million, representing 30% year-over-year growth, 30.1% in constant currency
• Total ARR increased to $1.70 billion, representing 4.1% year-over-year growth, 4.1% in constant currency
• Results above all first quarter 2025 guidance metric range midpoints

REDWOOD CITY, Calif.: Informatica (NYSE: INFA), an AI-powered enterprise cloud data management leader, today announced financial results for its first quarter 2025, ended March 31, 2025.

"Informatica’s first quarter results marked a strong start to 2025, reflecting disciplined execution of our strategic initiatives. We exceeded midpoint expectations across all key revenue and profitability metrics with Cloud Subscription ARR growth of 30% year-over-year driven by new cloud workloads, strong cloud net expansion from customers, increased Gen AI usage, and accelerating migrations from our on-premises base to the cloud,” said Amit Walia, Chief Executive Officer at Informatica. “The growth of our cloud platform at scale demonstrates the mission-critical nature of data management. Our product leadership, vast partner ecosystem, and the delivery of data and AI innovation through the IDMC platform reflect our confidence in our ability to perform in the current environment.”

First Quarter 2025 Financial Highlights:

• GAAP Total Revenues increased to $403.9 million, representing 3.9% year-over-year growth or 5.6% year-over-year growth on a constant currency basis(1). Total revenues included a negative impact of approximately $6.6 million from foreign currency exchange rates (FX) year-over-year.
• GAAP Cloud Subscription Revenue increased to $199.9 million, representing 32% year-over-year growth and 70.4% of subscription revenues.
• Total ARR increased to $1.70 billion, representing 4.1% year-over-year growth or 4.1% year-over-year growth on a constant currency basis. Total ARR included a negative impact of approximately $0.6 million from FX rates year-over-year.
• Cloud Subscription ARR increased to $848.4 million, representing 30.0% year-over-year growth or 30.1% year-over-year growth on a constant currency basis. Cloud Subscription ARR included a negative impact of approximately $0.4 million from FX rates year-over-year.
• GAAP Operating Income of $33.8 million and Non-GAAP Operating Income of $121.6 million. GAAP Operating Margin increased by 760 basis points to 8.4% and Non-GAAP Operating Margin increased by 200 basis points to 30.1% compared to the prior year period.
• GAAP Operating Cash Flow of $154.2 million.
• Adjusted Unlevered Free Cash Flow (after-tax) of $186.0 million. Cash paid for interest of $30.0 million.

A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

First Quarter 2025 Business Highlights:

• Processed 119.3 trillion cloud transactions per month for the quarter ended March 31, 2025, as compared to 91.8 trillion cloud transactions per month in the same quarter last year, an increase of 30% year-over-year.
• Achieved a Cloud Subscription Net Retention Rate (NRR) of 120% at the global parent level as of March 31, 2025.
• Reported 2,475 Cloud Subscription ARR customers at the end of March 31, 2025, an increase of 8% year-over-year.

Product Innovation and Business Updates:

• Introduced new cloud data management innovations to simplify and enhance enterprise-wide access to AI-ready data, including:
  • CLAIRE Copilot in preview for Data Integration for users to generate data pipeline using natural language processing (NLP), receive context-aware execution recommendations and automate documentation, enhancing efficiency and transparency in data ingestion, replication and integration;
  • CLAIRE Copilot in preview for Integration Platform as a Service (iPaaS) for users to create complex multi-step, app-to-app integration processes, generate single-app insights, automate object mappings and produce business and technical summaries through an intuitive NLP-based interface; and
  • CLAIRE GPT integration for Master Data Management (MDM) enables NLP-based search and metadata exploration by automatically generating glossary descriptions and aliases, improving data understanding across teams and allowing Data Marketplace users to explore data marketplaces through conversational queries, simplifying data discovery and enhancing accessibility.
• Expanded partnership with Databricks: announced the expansion of Intelligent Data Management Cloud (IDMC) platform services on Google Cloud, including support for the Databricks Data Intelligence Platform with 300+ connectors for data ingestion; no-code data pipelines running natively within Databricks for data preparation and transformation; data quality and profiling for data with Databricks Intelligence platform; and enterprise-wide data governance for seamless integration with Unity Catalog.
• Expanded partnership with Google: announced the expansion of IDMC platform services on Google Cloud, including support for the Databricks Data Intelligence Platform, API Center and Cloud Data Access Management (CDAM) services. These expanded services offer customers cost efficiency for their data platforms with integration to BigQuery for scale, governance, and model inference, as well as integration with Vertex AI for advanced use cases and agentic workflows.
• Appointed Krish Vitaldevara, a NetApp, Microsoft and Google veteran, as chief product officer to lead the product strategy function and play a key role in driving the Company's next phase of innovation and growth.

Industry Recognition:

• Recognized as a Leader in the 2025 Gartner® Magic Quadrant™ for Augmented Data Quality Solutions report. This marks the 17th time of being named a Leader, where Informatica is once again positioned furthest on the Completeness of Vision axis and highest on the Ability to Execute axis.
• Recognized as a Champion in the 2025 Bloor Research Data Integration Market Update.
• Recognized as a Market Leader in the 2025 BARC Score Data Intelligence Platforms report.
• Achieved the Highest Ranking in the 2025 Information Services Group (ISG) Product Information Platform Buyers Guide.

Share Repurchase:

• During the first quarter 2025, the Company spent $100.0 million to repurchase 4.9 million shares of its Class A common stock at an average price of $20.50 through open market purchases. The Company has $596.8 million available under its $800.0 million stock repurchase program. The Company has reduced its total outstanding share count by 2.8% to date.

Upcoming Events:

• From May 13-15, 2025, the Company will host customers and partners at Informatica World 2025 to learn about Al agents, data management best practices and how to accelerate their path to AI-ready data.
• On May 13, 2025, the Company is scheduled to participate in a fireside chat discussion at the J.P. Morgan 53rd Annual Global Technology, Media & Communications Conference at 11:30 a.m. Eastern Time. A live webcast and replay will be available on the Company's Investor Relations website.
• On May 28, 2025, the Company is scheduled to host investor meetings at the TD Cowen 53rd Annual Technology, Media & Telecom Conference.
• On June 4, 2025, the Company is scheduled to participate in a fireside chat discussion at the BofA Securities 2025 Global Technology Conference at 10:00 a.m. Pacific Time. A live webcast and replay will be available on the Company's Investor Relations website.
• On June 10, 2025, the Company is scheduled to host investor meetings at the D.A. Davidson 1st Annual Consumer & Technology Conference.
• On June 11, 2025, the Company is scheduled to host investor meetings at the Mizuho Technology Conference.

Second Quarter and Full-Year 2025 Financial Outlook

The Company provides the financial guidance below based on current market conditions and expectations and it is subject to various important cautionary factors described below. Guidance includes the impact from expected foreign exchange headwinds versus the prior year comparable periods.

Based on information available as of May 7, 2025, guidance for the second quarter of 2025 is as follows:

Second Quarter 2025 Ending June 30, 2025:

• GAAP Total Revenues are expected to be in the range of $391 million to $411 million, representing approximately 0.1% year-over-year growth at the midpoint of the range or approximately -0.5% year-over-year growth on a constant currency basis.
• Total ARR is expected to be in the range of $1.690 billion to $1.714 billion, representing approximately 2.0% year-over-year growth at the midpoint of the range or approximately 2.1% year-over-year growth on a constant currency basis.
• Cloud Subscription ARR is expected to be in the range of $889 million to $901 million, representing approximately 27.4% year-over-year growth at the midpoint of the range or approximately 27.4% year-over-year growth on a constant currency basis.
• Non-GAAP Operating Income is expected to be in the range of $93 million to $107 million, representing approximately -12.9% year-over-year decrease at the midpoint of the range.

Based on information available as of May 7, 2025, the Company reaffirms previously provided guidance for the full-year 2025, as follows:

Full-Year 2025 Ending December 31, 2025:

• GAAP Total Revenues are expected to be in the range of $1.670 billion to $1.720 billion, representing approximately 3.4% year-over-year growth at the midpoint of the range or approximately 3.5% year-over-year growth on a constant currency basis.
• Total ARR is expected to be in the range of $1.755 billion to $1.795 billion, representing approximately 2.9% year-over-year growth at the midpoint of the range or approximately 2.9% year-over-year growth on a constant currency basis.
• Cloud Subscription ARR is expected to be in the range of $1.019 billion to $1.051 billion, representing approximately 25.1% year-over-year growth at the midpoint of the range or approximately 25.2% year-over-year growth on a constant currency basis.
• Non-GAAP Operating Income is expected to be in the range of $546.0 million to $566.0 million, representing approximately 3.5% year-over-year growth at the midpoint of the range.
• Adjusted Unlevered Free Cash Flow (after-tax) is expected to be in the range of $540.0 million to $580.0 million, representing approximately -3.3% year-over-year decrease at the midpoint of the range.

The Company’s forecast is based upon market-based forward FX rates as of the date of the forecast. On a constant currency basis using FX rates experienced in 2024, the FX impact to fiscal 2025 guidance of expected forward FX rates is as follows:

In addition to the above guidance, the Company is also providing second quarter and full-year 2025 cash paid for interest estimates for modeling purposes. For the second quarter 2025, we estimate cash paid for interest to be approximately $30 million. For the full-year 2025, we estimate cash paid for interest to be approximately $116 million, using forward rates based on 1-month SOFR and a credit spread of 225 basis points.

In addition to the above guidance, the Company is also providing a second quarter and full-year 2025 weighted-average number of basic and diluted share estimates for modeling purposes. For the second quarter 2025, we expect basic weighted-average shares outstanding to be approximately 302.7 million shares and diluted weighted-average shares outstanding to be approximately 306.3 million shares. For the full-year 2025, we expect basic weighted-average shares outstanding to be approximately 304.3 million shares and diluted weighted-average shares outstanding to be approximately 309.2 million shares. These share count forecasts do not include the impact of any share buybacks the Company may pursue in the future.

Reconciliation of Non-GAAP Operating Income and Adjusted Unlevered Free Cash Flow after-tax guidance to the most directly comparable GAAP measures is not available without unreasonable effort, as certain items cannot be reasonably predicted because of their high variability, complexity, and low visibility. In particular, the measures and effects of our stock-based compensation expense specific to our equity compensation awards and employer payroll tax-related items on employee stock transactions are directly impacted by the timing of employee stock transactions and unpredictable fluctuations in our stock price, which we expect to have a significant impact on our future GAAP financial results.

Webcast and Conference Call

A conference call to discuss Informatica’s first quarter 2025 financial results and financial outlook for the second quarter and full-year 2025 is scheduled for 2:00 p.m. Pacific Time today. To participate, please dial 1-833-470-1428 from the U.S. or 1-404-975-4839 from international locations. The conference passcode is 203129. A live webcast of the conference call will be available on the Investor Relations section of Informatica’s website at investors.informatica.com where presentation materials will also be posted prior to the conference call. A replay will be available online approximately two hours following the live call for a period of 30 days.

Forward-Looking Statements

This press release and the related conference call and webcast contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements may relate to, but are not limited to, expectations of future operating results or financial performance, including our GAAP and non-GAAP guidance for the second quarter and 2025 fiscal year, the effect of foreign currency exchange rates, the effect of macroeconomic conditions, management’s plans, priorities, initiatives, and strategies, our efforts to reduce operating expenses and adjust cash flows in light of current business needs and priorities, our expected costs related to restructuring and related charges, including the timing of such charges, the impact of the restructuring and related charges on our business, results of operations and financial condition, management's estimates and expectations regarding growth of our business, the potential benefits realized by customers by the use of artificial intelligence and machine learning in our products and the potential benefits realized by customers from our cloud modernization programs, market, and partnerships. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “toward,” “will,” or “would,” or the negative of these words or other similar terms or expressions. You should not put undue reliance on any forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all.

Forward-looking statements are based on information available at the time those statements are made and are based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management as of that time with respect to future events. These statements are subject to risks and uncertainties, many of which involve factors or circumstances that are beyond our control, that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this press release and the related conference call and webcast may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements. These risks, uncertainties, assumptions, and other factors include, but are not limited to, those related to our business and financial performance, the effects of adverse global macroeconomic conditions and geopolitical uncertainty, including tariffs, our ability to attract and retain customers, our ability to develop new products and services and enhance existing products and services, our ability to respond rapidly to emerging technology trends, our ability to execute on our business strategy, including our strategy related to the Informatica IDMC platform and key partnerships, our ability to increase and predict customer consumption of our platform, our ability to compete effectively, and our ability to manage growth.

Further information on these and additional risks, uncertainties, and other factors that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this press release and the related conference call and webcast are included under the caption “Risk Factors” and elsewhere in our Annual Report on Form 10-K that was filed for the fiscal year ended December 31, 2024, and other filings and reports we make with the Securities and Exchange Commission from time to time, including our Quarterly Report on Form 10-Q that will be filed for the first quarter ended March 31, 2025. All forward-looking statements contained herein are based on information available to us as of the date hereof and we do not assume any obligation to update these statements as a result of new information or future events.

Non-GAAP Financial Measures and Key Business Metrics

We review several operating and financial metrics, including the following unaudited non-GAAP financial measures and key business metrics to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans, and make strategic decisions:

Non-GAAP Financial Measures

In addition to our results determined in accordance with U.S. generally accepted accounting principles (GAAP), we believe the following non-GAAP measures are useful in evaluating our operating performance. We use the following non-GAAP financial measures to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that these non-GAAP financial measures, when taken collectively, may be helpful to investors because they provide consistency and comparability with past financial performance. However, non-GAAP financial measures are presented for supplemental informational purposes only, have limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. A reconciliation is provided below for our non-GAAP financial measures to the most directly comparable financial measures stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, and not to rely on any single financial measure to evaluate our business. Starting the second quarter of fiscal year 2024, we adjusted certain of our non-GAAP metrics for employer payroll tax expense related to equity incentive plans, as the amount of employer payroll tax expense is dependent on our stock price and other factors that are beyond our control and does not correlate to the operation of our business. The stock-based compensation related employer tax-related expense for comparative periods were immaterial and are not reflected in the prior period balances.

Non-GAAP Income from Operations and Operating Margin and Non-GAAP Net Income exclude the effect of stock-based compensation expense-related charges, including employer payroll tax-related items on employee stock transactions starting Q2 2024, amortization of acquired intangibles, expenses associated with acquisitions, sponsor-related costs, expenses associated with restructuring efforts, and facility impairment, and are adjusted for income tax effects. We believe the presentation of operating results that exclude these non-cash or non-recurring items provides useful supplemental information to investors and facilitates the analysis of our operating results and comparison of operating results across reporting periods.

Adjusted EBITDA represents GAAP net income (loss) as adjusted for income tax benefit (expense), interest income, interest expense, debt refinancing costs, other income (expense) net, stock-based compensation-related charges, including employer payroll tax-related items on employee stock transactions starting Q2 2024, amortization of intangibles, facility impairment, expenses associated with restructuring efforts, expenses associated with acquisitions, sponsor-related costs and depreciation. We believe adjusted EBITDA is an important metric for understanding our business to assess our relative profitability adjusted for balance sheet debt levels.

Adjusted Unlevered Free Cash Flow (after-tax) represents operating cash flow less purchases of property and equipment and is adjusted for interest payments, sponsor-related costs, expenses associated with acquisitions and restructuring costs (including payments for impaired leases). We believe this measure provides useful supplemental information to investors because it is an indicator of our liquidity over the long term needed to maintain and grow our core business operations. We also provide actual and forecast cash interest expense to aid in the calculation of adjusted free cash flow (after-tax).

Key Business Metrics

Annual Recurring Revenue ("ARR") represents the expected annual billing amounts from all active maintenance and subscription agreements. ARR is calculated based on the contract Monthly Recurring Revenue (MRR) multiplied by 12. MRR is calculated based on the accounting adjusted total contract value divided by the number of months of the agreement based on the start and end dates of each contracted line item. The aggregate ARR calculated at the end of each reported period represents the value of all contracts that are active as of the end of the period, including those contracts that have expired but are still under negotiation for renewal. We typically allow for a grace period of up to 6 months past the original contract expiration quarter during which we engage in the renewal process before we report the contract as lost/inactive.

Fonte: Business Wire