Industry Summary Articles

Informatica, an AI-powered enterprise cloud data management leader, announced financial results for its first quarter 2025, ended March 31, 2025.

"Informatica’s first quarter results marked a strong start to 2025, reflecting disciplined execution of our strategic initiatives. We exceeded midpoint expectations across all key revenue and profitability metrics with Cloud Subscription ARR growth of 30% year-over-year driven by new cloud workloads, strong cloud net expansion from customers, increased Gen AI usage, and accelerating migrations from our on-premises base to the cloud,” said Amit Walia, Chief Executive Officer at Informatica. “The growth of our cloud platform at scale demonstrates the mission-critical nature of data management. Our product leadership, vast partner ecosystem, and the delivery of data and AI innovation through the IDMC platform reflect our confidence in our ability to perform in the current environment.”

First Quarter 2025 Financial Highlights:

• GAAP Total Revenues increased to $403.9 million, representing 3.9% year-over-year growth or 5.6% year-over-year growth on a constant currency basis⁽¹⁾. Total revenues included a negative impact of approximately $6.6 million from foreign currency exchange rates (FX) year-over-year.
• GAAP Cloud Subscription Revenue increased to $199.9 million, representing 32% year-over-year growth and 70.4% of subscription revenues.
• Total ARR increased to $1.70 billion, representing 4.1% year-over-year growth or 4.1% year-over-year growth on a constant currency basis. Total ARR included a negative impact of approximately $0.6 million from FX rates year-over-year.
• Cloud Subscription ARR increased to $848.4 million, representing 30.0% year-over-year growth or 30.1% year-over-year growth on a constant currency basis. Cloud Subscription ARR included a negative impact of approximately $0.4 million from FX rates year-over-year.
• GAAP Operating Income of $33.8 million and Non-GAAP Operating Income of $121.6 million. GAAP Operating Margin increased by 760 basis points to 8.4% and Non-GAAP Operating Margin increased by 200 basis points to 30.1% compared to the prior year period.
• GAAP Operating Cash Flow of $154.2 million.
• Adjusted Unlevered Free Cash Flow (after-tax) of $186.0 million. Cash paid for interest of $30.0 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 2025 Business Highlights:

• Processed 119.3 trillion cloud transactions per month for the quarter ended March 31, 2025, as compared to 91.8 trillion cloud transactions per month in the same quarter last year, an increase of 30% year-over-year.
• Achieved a Cloud Subscription Net Retention Rate (NRR) of 120% at the global parent level as of March 31, 2025.
• Reported 2,475 Cloud Subscription ARR customers at the end of March 31, 2025, an increase of 8% year-over-year.

Product Innovation and Business Updates:

• Introduced new cloud data management innovations to simplify and enhance enterprise-wide access to AI-ready data, including:
• CLAIRE Copilot in preview for Data Integration for users to generate data pipeline using natural language processing (NLP), receive context-aware execution recommendations and automate documentation, enhancing efficiency and transparency in data ingestion, replication and integration;
• CLAIRE Copilot in preview for Integration Platform as a Service (iPaaS) for users to create complex multi-step, app-to-app integration processes, generate single-app insights, automate object mappings and produce business and technical summaries through an intuitive NLP-based interface; and
• CLAIRE GPT integration for Master Data Management (MDM) enables NLP-based search and metadata exploration by automatically generating glossary descriptions and aliases, improving data understanding across teams and allowing Data Marketplace users to explore data marketplaces through conversational queries, simplifying data discovery and enhancing accessibility.
• Expanded partnership with Databricks: announced the expansion of Intelligent Data Management Cloud (IDMC) platform services on Google Cloud, including support for the Databricks Data Intelligence Platform with 300+ connectors for data ingestion; no-code data pipelines running natively within Databricks for data preparation and transformation; data quality and profiling for data with Databricks Intelligence platform; and enterprise-wide data governance for seamless integration with Unity Catalog.
• Expanded partnership with Google: announced the expansion of IDMC platform services on Google Cloud, including support for the Databricks Data Intelligence Platform, API Center and Cloud Data Access Management (CDAM) services. These expanded services offer customers cost efficiency for their data platforms with integration to BigQuery for scale, governance, and model inference, as well as integration with Vertex AI for advanced use cases and agentic workflows.
• Appointed Krish Vitaldevara, a NetApp, Microsoft and Google veteran, as chief product officer to lead the product strategy function and play a key role in driving the Company's next phase of innovation and growth.

Industry Recognition:

• Recognized as a Leader in the 2025 Gartner® Magic Quadrant™ for Augmented Data Quality Solutions report. This marks the 17th time of being named a Leader, where Informatica is once again positioned furthest on the Completeness of Vision axis and highest on the Ability to Execute axis.
• Recognized as a Champion in the 2025 Bloor Research Data Integration Market Update.
• Recognized as a Market Leader in the 2025 BARC Score Data Intelligence Platforms report.
• Achieved the Highest Ranking in the 2025 Information Services Group (ISG) Product Information Platform Buyers Guide.

Share Repurchase:

• During the first quarter 2025, the Company spent $100.0 million to repurchase 4.9 million shares of its Class A common stock at an average price of $20.50 through open market purchases. The Company has $596.8 million available under its $800.0 million stock repurchase program. The Company has reduced its total outstanding share count by 2.8% to date.

Upcoming Events:

• From May 13-15, 2025, the Company will host customers and partners at Informatica World 2025 to learn about Al agents, data management best practices and how to accelerate their path to AI-ready data.
• On May 13, 2025, the Company is scheduled to participate in a fireside chat discussion at the J.P. Morgan 53rd Annual Global Technology, Media & Communications Conference at 11:30 a.m. Eastern Time. A live webcast and replay will be available on the Company's Investor Relations website.
• On May 28, 2025, the Company is scheduled to host investor meetings at the TD Cowen 53rd Annual Technology, Media & Telecom Conference.
• On June 4, 2025, the Company is scheduled to participate in a fireside chat discussion at the BofA Securities 2025 Global Technology Conference at 10:00 a.m. Pacific Time. A live webcast and replay will be available on the Company's Investor Relations website.
• On June 10, 2025, the Company is scheduled to host investor meetings at the D.A. Davidson 1st Annual Consumer & Technology Conference.
• On June 11, 2025, the Company is scheduled to host investor meetings at the Mizuho Technology Conference.

Second Quarter and Full-Year 2025 Financial Outlook

The Company provides the financial guidance below based on current market conditions and expectations and it is subject to various important cautionary factors described below. Guidance includes the impact from expected foreign exchange headwinds versus the prior year comparable periods.

Based on information available as of May 7, 2025, guidance for the second quarter of 2025 is as follows:

Second Quarter 2025 Ending June 30, 2025:

• GAAP Total Revenues are expected to be in the range of $391 million to $411 million, representing approximately 0.1% year-over-year growth at the midpoint of the range or approximately -0.5% year-over-year growth on a constant currency basis.
• Total ARR is expected to be in the range of $1.690 billion to $1.714 billion, representing approximately 2.0% year-over-year growth at the midpoint of the range or approximately 2.1% year-over-year growth on a constant currency basis.
• Cloud Subscription ARR is expected to be in the range of $889 million to $901 million, representing approximately 27.4% year-over-year growth at the midpoint of the range or approximately 27.4% year-over-year growth on a constant currency basis.
• Non-GAAP Operating Income is expected to be in the range of $93 million to $107 million, representing approximately -12.9% year-over-year decrease at the midpoint of the range.

Based on information available as of May 7, 2025, the Company reaffirms previously provided guidance for the full-year 2025, as follows:

Full-Year 2025 Ending December 31, 2025:

• GAAP Total Revenues are expected to be in the range of $1.670 billion to $1.720 billion, representing approximately 3.4% year-over-year growth at the midpoint of the range or approximately 3.5% year-over-year growth on a constant currency basis.
• Total ARR is expected to be in the range of $1.755 billion to $1.795 billion, representing approximately 2.9% year-over-year growth at the midpoint of the range or approximately 2.9% year-over-year growth on a constant currency basis.
• Cloud Subscription ARR is expected to be in the range of $1.019 billion to $1.051 billion, representing approximately 25.1% year-over-year growth at the midpoint of the range or approximately 25.2% year-over-year growth on a constant currency basis.
• Non-GAAP Operating Income is expected to be in the range of $546.0 million to $566.0 million, representing approximately 3.5% year-over-year growth at the midpoint of the range.
• Adjusted Unlevered Free Cash Flow (after-tax) is expected to be in the range of $540.0 million to $580.0 million, representing approximately -3.3% year-over-year decrease at the midpoint of the range.

The Company’s forecast is based upon market-based forward FX rates as of the date of the forecast. On a constant currency basis using FX rates experienced in 2024, the FX impact to fiscal 2025 guidance of expected forward FX rates is as follows:

In addition to the above guidance, the Company is also providing second quarter and full-year 2025 cash paid for interest estimates for modeling purposes. For the second quarter 2025, we estimate cash paid for interest to be approximately $30 million. For the full-year 2025, we estimate cash paid for interest to be approximately $116 million, using forward rates based on 1-month SOFR and a credit spread of 225 basis points.

In addition to the above guidance, the Company is also providing a second quarter and full-year 2025 weighted-average number of basic and diluted share estimates for modeling purposes. For the second quarter 2025, we expect basic weighted-average shares outstanding to be approximately 302.7 million shares and diluted weighted-average shares outstanding to be approximately 306.3 million shares. For the full-year 2025, we expect basic weighted-average shares outstanding to be approximately 304.3 million shares and diluted weighted-average shares outstanding to be approximately 309.2 million shares. These share count forecasts do not include the impact of any share buybacks the Company may pursue in the future.

Reconciliation of Non-GAAP Operating Income and Adjusted 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 2025 financial results and financial outlook for the second quarter and full-year 2025 is scheduled for 2:00 p.m. Pacific Time today. To participate, please dial 1-833-470-1428 from the U.S. or 1-404-975-4839 from international locations. The conference passcode is 203129. 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.

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