Updates First Quarter 2024 Financial
Outlook
Company Not Engaged in Acquisition
Discussions
Announces Chief Product Officer Jitesh Ghai
Departure
Informatica (NYSE: INFA), (the “Company”), an enterprise cloud
data management leader, today provided the following business and
financial updates.
The Company announced today it is updating its first quarter
2024, ended March 31, 2024, financial outlook. The Company expects
GAAP Total Revenues, Subscription ARR, Cloud Subscription ARR and
Non-GAAP Operating Income to be all within the upper half of the
guidance ranges previously provided by the Company in its February
14, 2024, earnings press release. In addition, the Company expects
to report Adjusted Unlevered Free Cash Flow (after-tax) that
significantly exceeds 100% of Non-GAAP Operating Income. The
Company also reaffirmed its full-year 2024 financial outlook. First
quarter 2024 financial results will be released on May 1, 2024,
after market close, as previously announced.
“Our business fundamentals continue to be very strong and we
look forward to discussing our first quarter financial results and
outlook on May 1,” said Amit Walia, CEO of Informatica.
In addition, on April 12, 2024, The Wall Street Journal
published a story that the Company was in advanced talks to be
acquired, according to sources familiar with the matter. Although
Informatica’s policy is not to comment on market rumors or media
speculation, the Company announced that it is not currently engaged
in any discussions to be acquired.
The Company also announced that Jitesh Ghai, Executive Vice
President and Chief Product Officer, is resigning to pursue an
executive opportunity at another company. “On behalf of the
Informatica team, I thank Jitesh for his many contributions,”
continued Mr. Walia. “We wish Jitesh all the best in this exciting
next step of his career.”
Forward-Looking Statements
This press release contains 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 relate to expectations of operating
results or financial performance for the first quarter and
full-year of fiscal 2024. Forward-looking 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. These risks,
uncertainties, assumptions, and other factors include, but are not
limited to, completion of closing accounting books for the quarter
and potential quarter-end adjustments, those related to our
business and financial performance, the effects of adverse global
macroeconomic conditions and geopolitical uncertainty, the effects
of public health crises on our business, results of operations, and
financial condition, 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 release 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, 2023, and other
filings and reports we make with the Securities and Exchange
Commission from time to time. 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 and Key Business Metrics
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. Investors are
encouraged to not rely on any single financial measure to evaluate
our business.
Non-GAAP Income from Operations and Non-GAAP Net Income
exclude the effect of stock-based compensation expense-related
charges, amortization of acquired intangibles, equity compensation
related payments, expenses associated with acquisitions, and
expenses associated with restructuring efforts, 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 Unlevered Free Cash Flow (after-tax) represents
operating cash flow less purchases of property and equipment and is
adjusted for interest payments, equity compensation payments,
restructuring costs (including payments for impaired leases), and
executive severance. 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. This grace-period ARR amount has been less than 2%
of the reported ARR in each period presented. If there is an actual
cancellation of an ARR contract, we remove that ARR value at that
time. We believe ARR is an important metric for understanding our
business since it tracks the annualized cash value collected over a
12-month period for all our recurring contracts, irrespective of
whether it is a maintenance contract on a perpetual license, a
ratable cloud contract, or a self-managed term-based subscription
license. ARR should be viewed independently of total revenue and
deferred revenue related to our software and services contracts and
is not intended to be combined with or to replace either of those
items.
Subscription Annual Recurring Revenue represents the
portion of ARR only attributable to our subscription contracts. We
believe that Subscription ARR is a helpful metric for understanding
our business since it represents the approximate annualized cash
value collected over a 12-month period for all our recurring
subscription contracts. Subscription ARR excludes maintenance
contracts on our perpetual licenses to provide information
regarding the period-to-period performance and overall size and
scale of our subscription business as we continue to focus our
efforts on subscription-based licensing. Subscription ARR should be
viewed independently of subscription revenue and deferred revenue
related to our subscription contracts and is not intended to be
combined with or to replace either of those items.
Cloud Subscription Annual Recurring Revenue represents
the portion of ARR that is attributable to our hosted cloud
contracts. We believe that Cloud Subscription ARR is a helpful
metric for understanding our business since it represents the
approximate annualized cash value collected over a 12-month period
for all our recurring Cloud contracts. Cloud Subscription ARR is a
subset of our overall Subscription ARR, and by providing this
breakdown of Cloud Subscription ARR, it provides visibility on the
size and growth rate of our Cloud Subscription ARR within our
overall Subscription ARR. Cloud Subscription ARR should be viewed
independently of subscription revenue and deferred revenue related
to our subscription contracts and is not intended to be combined
with or to replace either of those items.
About Informatica
Informatica (NYSE: INFA), an Enterprise Cloud Data Management
leader, brings data to life by empowering businesses to realize the
transformative power of their most critical information. We have
pioneered a new category of software, the Informatica Intelligent
Data Management Cloud™ (IDMC), powered by AI and an end-to-end data
management platform that connects, manages and unifies data across
any multi-cloud, hybrid system, democratizing data to modernize and
advance their business strategies. Customers in more than 100
countries, including more than 80 of the Fortune 100, rely on
Informatica to drive data-led digital transformation. Informatica.
Where data and AI comes to life.
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version on businesswire.com: https://www.businesswire.com/news/home/20240422338277/en/
Investor Relations: Victoria Hyde-Dunn
vhydedunn@informatica.com
Public Relations: pr@informatica.com
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