Informatica Inc. (INFA) Bundle
A Brief History of Informatica Inc.
Company Overview
As of 2024, Informatica Inc. (NYSE: INFA) is a leader in enterprise AI-powered cloud data management, providing solutions that enable businesses to leverage their data for digital transformation. Founded in 1993, Informatica has evolved significantly over the years, with a focus on integrating data across multi-cloud and hybrid environments.
Recent Financial Performance
Informatica reported robust financial performance for the third quarter of 2024, with total revenues reaching $422.5 million, compared to $408.6 million in the same period of 2023, reflecting a year-over-year growth of approximately 3.3%.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenues | $422.5 million | $408.6 million |
| Net Income (Loss) | $(13.9) million | $79.3 million |
| Adjusted EBITDA | $154.8 million | $132.2 million |
| Operating Cash Flow | $106.5 million | $58.7 million |
| Adjusted Free Cash Flow (after-tax) | $144.0 million | $96.1 million |
Annual Recurring Revenue (ARR)
As of September 30, 2024, Informatica's Total Annual Recurring Revenue (ARR) stood at $1.68 billion, which marks an increase from $1.58 billion in 2023, representing a growth of 6.7%.
| Type of Revenue | 2024 | 2023 |
|---|---|---|
| Cloud Subscription ARR | $747.8 million | $549.5 million |
| Self-managed Subscription ARR | $471.0 million | $527.7 million |
| Maintenance ARR | $462.9 million | $498.7 million |
Key Business Metrics
Informatica has demonstrated strong customer engagement and retention metrics:
- Cloud Subscription Net Retention Rate (End-user level): 120%
- Subscription Renewal Rate: 89%
- Customers spending over $1 million in Subscription ARR: 264
- Cloud transactions processed per month: 101.3 trillion
Debt and Equity Position
Informatica's financial health includes:
- Total net debt as of September 30, 2024: $588 million
- Cash and cash equivalents: $932.6 million
- Weighted-average shares outstanding (diluted): 313.4 million
Future Guidance
Looking ahead, Informatica has provided guidance for the fourth quarter of 2024, expecting total revenues to range between $448 million to $468 million, and a full-year revenue forecast of $1.66 billion to $1.68 billion.
| Metric | Q4 2024 Guidance | Full-Year 2024 Guidance |
|---|---|---|
| Total Revenues | $448 - $468 million | $1.66 - $1.68 billion |
| Subscription ARR | $1.265 - $1.299 billion | $1.265 - $1.299 billion |
| Cloud Subscription ARR | $829 - $843 million | $829 - $843 million |
Market Position and Competitiveness
Informatica operates in a competitive landscape, focusing on AI-driven data management solutions. With clients in approximately 100 countries, including more than 80 of the Fortune 100, Informatica's strategic partnerships and product innovations are essential for maintaining its market leadership.
A Who Owns Informatica Inc. (INFA)
Ownership Structure
As of 2024, the ownership of Informatica Inc. (INFA) is characterized by institutional investors and significant shareholders, particularly Ithaca L.P., which is affiliated with Permira Advisors LLC. Ithaca L.P. holds approximately 33.4 million Class A shares. In early November 2024, Ithaca plans to distribute around 9.3 million shares to its limited partners, with the remaining shares continuing to be held by Ithaca.
Major Shareholders
| Shareholder | Type of Share | Number of Shares (millions) | Ownership Percentage |
|---|---|---|---|
| Ithaca L.P. | Class A | 33.4 | ~11.0% |
| Permira Advisors LLC | Class A | 33.4 (indirectly through Ithaca) | ~11.0% |
| Other Institutional Investors | Various | ~140.0 | ~45.0% |
| Public Float | Class A | ~150.0 | ~49.0% |
Institutional Ownership
As of the latest data, institutional investors collectively hold a significant portion of Informatica's shares, accounting for approximately 45% of the total shares outstanding. This includes a variety of mutual funds and pension funds that have invested in the company, reflecting confidence in its growth potential.
Recent Changes in Share Ownership
Informatica has experienced fluctuations in its stock price and ownership distribution, with the share price hovering around $14.50 in late 2024. The company has been actively managing its capital structure, including share repurchase programs and dividend payments, which can influence ownership dynamics.
Stock Performance Overview
Informatica's stock performance has been closely monitored by analysts, with a notable increase in share value attributed to strong quarterly earnings reports and growth in cloud subscription revenues, which rose by 37% year-over-year.
Shareholder Voting Power
Given the dual-class structure of Informatica's stock, Class A shares typically carry more voting rights compared to Class B shares. This structure allows major shareholders, like Ithaca L.P., to exert significant influence over corporate governance decisions.
Future Ownership Projections
Looking ahead, the ownership landscape may shift due to Ithaca's planned share distribution, which could lead to increased liquidity in the stock and potentially attract new investors. Analysts predict that this could enhance shareholder diversity and influence future company strategies.
Informatica Inc. (INFA) Mission Statement
Informatica Inc. is committed to being the leader in enterprise cloud data management. The company's mission is to empower organizations to unleash the power of data to drive innovation and improve business outcomes, leveraging AI and cloud technologies.
Core Values
- Customer Centricity: Focus on delivering exceptional value to customers.
- Innovation: Continuous investment in technology and R&D to enhance product offerings.
- Integrity: Commitment to ethical practices and transparency in all business dealings.
- Collaboration: Fostering teamwork within the organization and with partners.
Financial Performance Overview
As of Q3 2024, Informatica reported several key financial metrics that highlight its growth trajectory:
| Metric | Q3 2024 | Q3 2023 | Year-over-Year Change |
|---|---|---|---|
| GAAP Total Revenues | $422.5 million | $408.6 million | +3.4% |
| GAAP Subscription Revenues | $287.9 million | $261.8 million | +10.0% |
| Cloud Subscription Revenue | $175.8 million | $128.6 million | +37.0% |
| Total Annual Recurring Revenue (ARR) | $1.68 billion | $1.57 billion | +6.7% |
| Cloud Subscription ARR | $747.8 million | $549.5 million | +36.0% |
| GAAP Operating Income | $50.9 million | $32.1 million | +58.0% |
| Non-GAAP Operating Income | $151.0 million | $128.1 million | +17.8% |
| Adjusted Unlevered Free Cash Flow | $144.0 million | $96.1 million | +50.0% |
Customer Metrics
As of September 30, 2024, Informatica's customer base reflects strong engagement and retention:
| Metric | Q3 2024 | Q3 2023 | Year-over-Year Change |
|---|---|---|---|
| Customers spending > $1 million ARR | 264 | 224 | +18.0% |
| Customers spending > $100,000 ARR | 2,074 | 1,978 | +4.8% |
| Cloud transactions processed (trillions/month) | 101.3 | 71.3 | +42.0% | Cloud Subscription Net Retention Rate (End-user level) | 120% | 118% | +2.0% |
| Cloud Subscription Net Retention Rate (Global Parent level) | 126% | 124% | +2.0% |
Strategic Initiatives
Informatica continues to innovate and expand its offerings, with recent initiatives including:
- Partnership expansion with Oracle for enhanced cloud services integration.
- Launch of Gen AI blueprints aimed at reducing development complexity across major cloud platforms.
- Celebration of the 20th anniversary of its Innovation Labs in Bangalore, India.
Market Position and Recognition
Informatica has received multiple accolades, including:
- Named a Leader in The Forrester Wave™ for Enterprise Data Catalogs, Q3 2024.
- Recognized for outstanding customer service by J.D. Power for four consecutive years.
- Awarded in the 2024 Oracle Partner Awards - Global Business Impact Category.
Conclusion
Informatica's mission to lead in cloud data management is supported by robust financial performance, a growing customer base, and ongoing innovation. With a clear focus on AI and cloud technologies, Informatica is well-positioned for continued success in the data management landscape.
How Informatica Inc. (INFA) Works
Company Overview
Informatica Inc. (NYSE: INFA) specializes in enterprise AI-powered cloud data management solutions. The company's core offering, the Informatica Intelligent Data Management Cloud (IDMC), integrates and manages data across multi-cloud and hybrid environments.
Financial Performance
As of Q3 2024, Informatica reported the following financial highlights:
| Metric | Q3 2024 | Q3 2023 | Year-over-Year Change |
|---|---|---|---|
| Total Revenues | $422.5 million | $408.6 million | 3.4% |
| GAAP Subscription Revenues | $287.9 million | $261.8 million | 10% |
| GAAP Cloud Subscription Revenue | $175.8 million | $128.6 million | 37% |
| Total ARR | $1.68 billion | $1.58 billion | 6.7% |
| Subscription ARR | $1.22 billion | $1.08 billion | 13% |
| Cloud Subscription ARR | $747.8 million | $549.5 million | 36% |
| GAAP Operating Income | $50.9 million | $32.1 million | 58.6% |
| Non-GAAP Operating Income | $151.0 million | $128.1 million | 17.8% |
| GAAP Operating Cash Flow | $106.5 million | $58.7 million | 81.3% |
| Adjusted Unlevered Free Cash Flow | $144.0 million | $96.1 million | 50.0% |
Key Business Metrics
Informatica's operational metrics as of September 30, 2024, include:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Cloud Transactions Processed (Trillions) | 101.3 | 71.3 |
| Customers Spending > $1 Million ARR | 264 | 224 |
| Customers Spending > $100,000 ARR | 2,074 | 1,978 | Cloud Subscription Net Retention Rate (End-user level) | 120% | 118% |
| Cloud Subscription Net Retention Rate (Global Parent level) | 126% | 124% |
Guidance for 2024
Looking forward, Informatica has provided guidance for the fourth quarter and full year 2024:
| Metric | Q4 2024 Guidance | Full-Year 2024 Guidance |
|---|---|---|
| GAAP Total Revenues | $448 million - $468 million | $1.66 billion - $1.68 billion |
| Subscription ARR | $1.265 billion - $1.299 billion | $1.265 billion - $1.299 billion |
| Cloud Subscription ARR | $829 million - $843 million | $829 million - $843 million |
| Non-GAAP Operating Income | $162 million - $182 million | $538 million - $558 million |
| Adjusted Unlevered Free Cash Flow (after-tax) | $545 million - $565 million | $545 million - $565 million |
Balance Sheet Highlights
As of September 30, 2024, Informatica's balance sheet reflects the following:
| Metric | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $932,573 |
| Short-term Investments | $307,558 |
| Accounts Receivable (Net) | $278,998 |
| Total Assets | $5,173,844 |
| Total Liabilities | $2,766,148 |
| Total Stockholders' Equity | $2,407,696 |
Recent Developments
Informatica has made significant advancements and partnerships, including:
- Expansion of its partnership with Oracle to enhance its IDMC platform services.
- Introduction of Gen AI blueprints for major cloud ecosystems.
- Recognition for outstanding customer service and innovation in data management.
How Informatica Inc. (INFA) Makes Money
Revenue Streams
Informatica Inc. primarily generates revenue through its subscription-based business model, focusing on cloud data management solutions. The company’s revenues can be categorized as follows:
- Cloud Subscription Revenue
- Self-managed Subscription Revenue
- Maintenance and Professional Services
Financial Performance Overview
For the third quarter of 2024, Informatica reported total revenues of $422.5 million, representing a year-over-year increase of 3.4%. This growth was influenced by a robust demand for their cloud services.
| Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Total Revenue | $422,481 | $408,563 |
| Cloud Subscription Revenue | $175,809 | $128,581 |
| Self-managed Subscription Revenue | $65,498 | $81,705 |
| Maintenance and Professional Services Revenue | $134,547 | $146,530 |
Annual Recurring Revenue (ARR)
Informatica’s ARR serves as a key performance indicator, reflecting the expected annual billing from active maintenance and subscription agreements. As of September 30, 2024, the total ARR reached $1.68 billion, marking a 6.7% increase year-over-year.
| Metric | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Total ARR | $1,681,776 | $1,575,891 |
| Cloud Subscription ARR | $747,811 | $549,507 |
| Self-managed Subscription ARR | $471,030 | $527,687 | Maintenance ARR | $462,935 | $498,697 |
Customer Base
Informatica has shown significant growth in its customer base, particularly among high-value clients. As of September 30, 2024, the company reported:
- 264 customers spending more than $1 million in subscription ARR, an increase of 18% year-over-year.
- 2,074 customers spending more than $100,000 in subscription ARR, an increase of 5% year-over-year.
Operating Income and Margins
Informatica's GAAP operating income for Q3 2024 was $50.9 million, with a GAAP operating margin of 12.1%. Non-GAAP operating income was reported at $151.0 million, reflecting a non-GAAP operating margin of 35.8%.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| GAAP Operating Income | $50,933 | $32,064 |
| Non-GAAP Operating Income | $151,044 | $128,057 |
| GAAP Operating Margin | 12.1% | 7.8% |
| Non-GAAP Operating Margin | 35.8% | 31.3% |
Cash Flow and Financial Health
Informatica reported a GAAP operating cash flow of $106.5 million for Q3 2024. Adjusted unlevered free cash flow after tax was $144.0 million.
| Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| GAAP Operating Cash Flow | $106,498 | $58,718 |
| Adjusted Unlevered Free Cash Flow | $143,967 | $96,132 |
Market Position and Future Outlook
Informatica continues to strengthen its position in the market, emphasizing cloud-based solutions and AI-driven data management technologies. The company expects to achieve full-year total revenues in the range of $1.660 billion to $1.680 billion, indicating a year-over-year growth of approximately 4.7%.
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Article updated on 8 Nov 2024
Resources:
- Informatica Inc. (INFA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Informatica Inc. (INFA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Informatica Inc. (INFA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.