Informatica stock dives on earnings: CEO names 2 'core issues'
Informatica (INFA) CEO Amit Walia joins Asking for a Trend with Julie Hyman and Josh Lipton to discuss the software company's mixed fourth quarter results sending the stock into a sharp decline in extended-hours trading. Revenue was $428.3 million, missing the $456.94 million expected, while adjusted earnings per share (EPS) sat at $0.41, higher than estimates of $0.37. Informatica's 2025 revenue outlook fell short of Wall Street's expectations. "It was definitely a quarter where we did not anticipate and did not meet the results that we had planned for," Walia says, highlighting two "core issues" the company faced during the quarter. "One is that the renewal rates of our cloud and some of the non-cloud business did not meet our expectations, so that reduced the annual recurring revenue," he says, adding, "We actually had a lot more of our on-prem customers wanting to modernize to cloud, but that creates an accounting hiccup where basically we lose some of the on-prem revenue a lot faster." Watch the video above to hear more from the Informatica CEO. To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here. This post was written by Naomi Buchanan.
