Informatica, an enterprise cloud data management leader, announced financial results for its second quarter 2022, ended June 30, 2022.
Informatica Q2' 2022 Highlights (Graphic: Business Wire)
“We are very pleased to deliver Q2 results that exceeded the high-end of guidance for total revenue, subscription and cloud ARR, and non-GAAP operating income. The mix shift from self-managed to the cloud is accelerating and customers are increasingly investing in our Intelligent Data Management Cloud (IDMC) platform for digital transformation. We are strongly positioned to deliver $1 billion in subscription ARR by the end of the year, a milestone few software companies have achieved,” said Amit Walia, Chief Executive Officer at Informatica. “We continue to see healthy demand for IDMC as companies look to Informatica to help them navigate the uncertain macro-environment and process mission-critical workloads.”
Second Quarter 2022 Financial Highlights:
- GAAP Total Revenues increased 9% year-over-year to $372.0 million.
- GAAP Subscription Revenues increased 24% year-over-year to $207.0 million.
- Total ARR increased 16% year-over-year to $1.4 billion.
- GAAP Operating Loss of $12.1 million and Non-GAAP Operating Income of $69.9 million.
- GAAP Operating Cash Flow of $15.9 million.
- Unlevered Free Cash Flow (after-tax) of $32.7 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.”
Second Quarter 2022 Business Highlights:
- Processed 38.5 trillion cloud transactions per month for the quarter ended June 30, 2022, as compared to 21.7 trillion cloud transactions per month in the same quarter last year, an increase of 77% year-over-year.
- Reported 175 customers that spend more than $1 million in subscription ARR at the end of June 30, 2022, an increase of 51% year-over-year.
- Reported 1,791 customers that spend more than $100,000 in subscription ARR at the end of June 30, 2022, an increase of 20% year-over-year.
- Achieved a subscription net retention rate of 113% at the end of June 30, 2022.
Product Innovation:
- Launched a new strategic partnership with Oracle that brings Informatica’s data integration and data governance solutions to Oracle Cloud Infrastructure (OCI). Named a preferred partner for enterprise cloud data integration and governance for data warehouse and lakehouses on OCI.
- Launched Intelligent Data Management Cloud (IDMC) for Healthcare & Life Sciences and Financial Services verticals - an end-to-end integrated data management cloud that enables the entire data lifecycle, including data discovery, ingestion, integration of data and applications, quality improvement, single views and business 360 applications, governance, privacy, and data sharing.
- Launched Informatica Data Loader - a no-cost, zero-code, zero-DevOps, and zero infrastructure required SaaS offering that will help departmental users across the organization move from data to insights in minutes. Data loader is now available for Google BigQuery, Snowflake, and Databricks.
- Launched a SaaS version of Informatica’s multidomain Master Data Management (MDM) for Microsoft Azure that will be generally available for purchase on the Azure Marketplace in August.
- Launched a new API Center that delivers no-code data APIs to build a foundation of trusted data and automate business processes.
- Launched INFACore to bring IDMC platform capabilities to developers, data scientists, and data engineers directly in their own integrated development environment. INFACore is a simple plug-in for any development and data science framework accelerating the ability to consume, transform, and prepare data from any source within an Integrated Development Environment (IDE).
- Expanded partnership with Snowflake that will result in deeper, product integrations for data governance. Announced a new Informatica Enterprise Data Integrator built for Snowflake’s Native Application Framework that will enable Snowflake customers to integrate with enterprise data sources including Google, Microsoft, Oracle, Salesforce, and SAP.
- Joined the Data Cloud Alliance, spearheaded by Google Cloud, which is focused on making data and analytics more accessible via modern data management technologies.
Third 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. Guidance includes the full-year 2022 revenue impact from foreign exchange headwinds estimated at approximately negative $45 million. Based on information available as of July 27, 2022, guidance for the third quarter of 2022 and full-year 2022 is as follows:
Third Quarter 2022 Ending September 30, 2022:
- GAAP Total Revenues are expected to be in the range of $385 million to $395 million, representing approximately 8% year-over-year growth at the midpoint of the range.
- Subscription ARR is expected to be in the range of $920 million to $930 million, representing approximately 26% year-over-year growth at the midpoint of the range.
- Cloud ARR is expected to be in the range of $399 million to $405 million, representing approximately 40% year-over-year growth at the midpoint of the range.
- Non-GAAP Operating Income is expected to be in the range of $77 million to $84 million.
Full-Year 2022 Ending December 31, 2022:
- GAAP Total Revenues are now expected to be in the range of $1,540 million to $1,560 million, representing approximately 7% year-over-year growth at the midpoint of the range.
- Total ARR is expected to be in the range of $1,520 million to $1,550 million, representing approximately 13% year-over-year growth at the midpoint of the range.
- Subscription ARR is expected to be 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 is expected to be 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 is expected to be in the range of $325 million to $345 million.
- Unlevered Free Cash Flow (after-tax) is now expected to be in the range of $290 million to $310 million.
In addition to the above guidance, the Company is also providing a third quarter and full-year 2022 weighted-average number of basic and diluted share estimates for modeling purposes. For the third quarter 2022, we expect basic weighted-average shares outstanding to be approximately 282 million shares and diluted weighted-average shares outstanding to be approximately 285 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 287 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 second quarter 2022 financial results and financial outlook for the third 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 1-929-526-1599 from international locations. The conference passcode is 902394. 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.
