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Informatica Reports Fourth Quarter and Full-Year 2024 Financial Results

In This Article:

Source: Informatica Q4 2024
Source: Informatica Q4 2024
  • Cloud Subscription Annual Recurring Revenue (ARR) in the fourth quarter and full-year 2024 increased 34% year-over-year to $827 million

  • Total ARR in the fourth quarter and full-year 2024 increased 6% year-over-year to $1.73 billion

  • GAAP Total Revenues in the full-year 2024 increased 3% year-over-year to $1.64 billion

  • Guides to $1.0 billion in Cloud Subscription ARR for the full-year 2025

REDWOOD CITY, Calif., February 13, 2025--(BUSINESS WIRE)--Informatica (NYSE: INFA), an enterprise cloud data management leader, today announced financial results for its fourth quarter and full-year 2024, ended December 31, 2024.

"The power of our cloud-only, consumption-driven strategy was evident throughout 2024, as highlighted by 34% growth in Cloud Subscription ARR, a Cloud Subscription Net Revenue Retention of 124% and 32.8% Non-GAAP Operating Margin," said Amit Walia, Chief Executive Officer at Informatica. "Although we encountered unexpected headwinds in the fourth quarter, we're entering 2025 with strong fundamentals and clear line of sight to reaching $1 billion in Cloud Subscription ARR by the end of the year."

Fourth Quarter 2024 Financial Highlights:

  • GAAP Total Revenues decreased 3.8% year-over-year to $428.3 million. Fourth quarter total revenues included a positive impact of approximately $1.3 million from foreign currency exchange rates (FX) year-over-year. Adjusted for FX, total revenues decreased 4.1% year-over-year. This result was below the midpoint of our guidance by $29.7 million, due primarily by four factors. First, the Company recognized lower upfront self-managed subscription license revenue due to lower renewal rates of self-managed subscriptions. Second, the lower average duration of those self-managed subscription renewals further reduced up-front recognized revenue. Both factors drove lower revenue as the Company recognizes self-managed subscription license revenue upfront at a point-in-time in accordance with ASC 606 accounting standards. These two factors contributed to an approximately $46.0 million year-over-year reduction in upfront self-managed subscription license revenue recognition in the fourth quarter. Third, as a direct result of our strategy to shift more of our customers’ implementation and support work to our professional service partners, the Company observed a further decline in professional services. Fourth, due to the recent strengthening of the U.S. dollar, the Company experienced FX-related revenue headwinds compared to our forecast.

  • GAAP Subscription Revenues decreased 2% year-over-year to $297.4 million. GAAP Cloud Subscription Revenue increased 33% year-over-year to $186.8 million and represented 63% of subscription revenues.

  • Total ARR increased 6% year-over-year to $1.73 billion. Fourth quarter total ARR included a negative impact of approximately $2.0 million from FX year-over-year.

  • Subscription ARR increased 13% year-over-year to $1.27 billion. Fourth quarter subscription ARR included a negative impact of approximately $1.5 million from FX year-over-year.

  • Cloud Subscription ARR increased 34% year-over-year to $827.3 million. Fourth quarter cloud subscription ARR included a negative impact of approximately $0.7 million from FX year-over-year. This result was below the midpoint of our guidance by $8.7 million, due primarily by two factors. First, cloud renewal rates were lower than forecast. Second, net new bookings were lower than forecast due primarily to a higher-than-expected contribution to bookings from on-premises maintenance and self-managed migrations to the cloud.

  • GAAP Operating Income was $63.4 million and Non-GAAP Operating Income was $162.3 million. GAAP Operating Margin increased 650 basis points to 14.8% and Non-GAAP Operating Margin increased 150 basis points to 37.9% compared to the prior year period.

  • GAAP Operating Cash Flow of $146.9 million.

  • Adjusted Unlevered Free Cash Flow (after-tax) of $180.9 million. Cash paid for interest of $32.5 million. This was higher than the midpoint of our guidance by $24 million.