Informatica, an enterprise cloud data management leader, announced financial results for its first quarter 2022, ended March 31, 2022.
"We delivered ARR and non-GAAP Operating Income above the high end of our guidance range and achieved another quarter of operating profitability and positive cash flow while continuing to invest in long-term, durable growth. Demand for our cloud-native IDMC platform and continued momentum from enterprise customers and strategic partners drove cloud ARR growth of 43%," said Amit Walia, Chief Executive Officer at Informatica. "These results highlight the continued customer adoption of our cloud data management solutions, and the execution of our multi-pronged strategy is delivering results. We are off to a great start for the year, and we see total ARR growth in 2022 accelerating."
First Quarter 2022 Financial Highlights:
- GAAP Total Revenues increased 9% year-over-year to $362.3 million.
- GAAP Subscription Revenues increased 26% year-over-year to $197.7 million.
- Total ARR increased 17% year-over-year to $1.4 billion.
- GAAP Operating Income of $6.2 million and Non-GAAP Operating Income of $83.4 million.
- GAAP Operating Cash Flow increased 8% year-over-year to $70.2 million.
- Unlevered Free Cash Flow (after-tax) of $87.5 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 2022 Business Highlights:
- Achieved a subscription net retention rate of 113% at the end of March 31, 2022.
- Processed 32.2 trillion cloud transactions per month for the quarter ended March 31, 2022, as compared to 19.6 trillion cloud transactions per month in the same quarter last year, an increase of 64% year-over-year.
- Reported 164 customers that spend more than $1 million in subscription ARR at the end of March 31, 2022, an increase of 50% year-over-year.
- Reported 1,732 customers that spend more than $100,000 in subscription ARR at the end of March 31, 2022, an increase of 22% year-over-year.
Product Innovation:
- Expanded partnership with Snowflake that will result in deeper, product integrations for data governance, acceleration and scaling of joint marketing and demand-generation activities, and expanded field sales collaboration.
- Launched the Informatica Intelligent Data Management Cloud (IDMC) for Retail -- a cloud-neutral, end-to-end data management solution for the retail industry to drive innovation and business value in a multi-cloud, hybrid environment.
- Launched the Informatica Intelligent Multi-domain Master Data Management (MDM) for enterprises to connect, understand and manage the relationship between multiple domains such as location, customer, product or supplier as well as assets including IoT devices or sensors.
- Expanded global system integrator partnership with Wipro Limited to accelerate cloud modernization for global customers.
Industry Recognition:
- Named to Fast Company's Annual List of the World's 50 Most Innovative Companies for 2022. Informatica ranked #2 in the competitive enterprise category.
- Named a 2022 Gartner Peer Insights Customers' Choice for Data Integration Tools, making Informatica the only vendor to receive this accolade four consecutive times.
- Recognized as an Overall Leader in KuppingerCole Leadership Compass Data Catalogs and Metadata Management Report.
- Recognized as a Champion in the Bloor Stream Processing Market Update.
Second Quarter and Full-Year 2022 Financial Outlook
The Company provides the financial guidance below based on current market conditions and expectations and subject to various important cautionary factors described below. Based on information available as of April 27, 2022, guidance for the second quarter of 2022 and full-year 2022 is as follows:
Second Quarter 2022 Ending June 30, 2022:
- Total Revenues in the range of $358 million to $368 million, representing approximately 6% year-over-year growth at the midpoint of the range.
- Subscription ARR in the range of $875 million to $885 million, representing approximately 28% year-over-year growth at the midpoint of the range.
- Cloud ARR in the range of $365 million to $371 million, representing approximately 40% year-over-year growth at the midpoint of the range.
- Non-GAAP Operating Income in the range of $44 million to $51 million.
Full-Year 2022 Ending December 31, 2022:
- Total Revenues in the range of $1,585 million to $1,605 million, representing approximately 10% year-over-year growth at the midpoint of the range.
- Raising Total ARR to a range of $1,520 million to $1,550 million, representing approximately 13% year-over-year growth at the midpoint of the range. This is an increase from the prior range of $1,510 million to $1,540 million and approximately 12% year-over-year growth at the midpoint of the range.
- Subscription ARR in the range of $990 million to $1,010 million, representing approximately 25% year-over-year growth at the midpoint of the range.
- Cloud ARR in the range of $438 million to $448 million, representing approximately 40% year-over-year growth at the midpoint of the range.
- Non-GAAP Operating Income in the range of $325 million to $345 million.
- Unlevered Free Cash Flow (after-tax) in the range of $323 million to $343 million.
In addition to the above guidance, the Company is also providing second quarter and full-year 2022 weighted-average number of basic and diluted share estimates for modeling purposes. For the second quarter 2022, we expect basic weighted-average shares outstanding to be approximately 280 million shares and diluted weighted-average shares outstanding to be approximately 283 million shares. For the full-year 2022, we expect basic weighted-average shares outstanding to be approximately 281 million shares and diluted weighted-average shares outstanding to be approximately 288 million shares.
Reconciliation of non-GAAP operating income and 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 2022 financial results and financial outlook for the second quarter and full-year 2022 is scheduled for 1:30 p.m. Pacific Time today. To participate, please dial 1-844-200-6205 from the U.S. or 1-646-904-5544 from international locations. The conference passcode is 505719. 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.
