- Third quarter software revenues of $99.8 million, up 35 percent year-over-year
- Third quarter total revenues of $235.4 million, up 24 percent year-over-year
- Third quarter GAAP earnings per diluted share of $0.09 and non-GAAP earnings per diluted share of $0.33
- Signed 87 deals over $300,000 and 23 deals over $1 million
Informatica Corporation (Nasdaq:INFA), the world's number one independent provider of data integration software, today announced financial results for the third quarter ended September 30, 2013.
“Our third quarter results demonstrate that the leadership, organizational and operational changes we have implemented over the past five quarters are leading to record revenues,” said Sohaib Abbasi, chairman and chief executive officer, Informatica. “Based on our firm conviction in Informatica's long-term growth opportunity, we are increasing our investments in pioneering new technologies to benefit from emerging mega-trends such as cloud computing, big data and the Internet of Things.”
Financial Highlights for the Third Quarter Ended September 30, 2013
Total revenues for the third quarter of 2013 were $235.4 million, an increase of 24 percent from $190.3 million in the third quarter of 2012. Software revenues were $99.8 million, an increase of 35 percent from $73.9 million in the third quarter of 2012. Within software revenues, license revenues were $88.0 million, up 34 percent year-over-year, and subscription revenues were $11.8 million, up 48 percent year-over-year.
Income from operations for the third quarter of 2013, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was $27.2 million, compared to $25.1 million in the third quarter of 2012.
GAAP net income for the third quarter of 2013 was $10.4 million, compared to $15.5 million in the third quarter of 2012, and GAAP net income per diluted share was $0.09, compared to $0.14 per diluted share in the third quarter of 2012.
Non-GAAP income from operations for the third quarter of 2013 was $54.0 million, up 20 percent from $45.2 million in the third quarter of 2012. Non-GAAP net income for the third quarter of 2013 was $37.1 million, up 24 percent from $30.0 million in the third quarter of 2012 and non-GAAP net income per diluted share was $0.33, up 22 percent from $0.27 per diluted share in the third quarter of 2012. Non-GAAP income from operations and non-GAAP net income exclude charges and tax benefits related to the amortization of acquired technology and intangible assets, facilities restructuring and facility lease termination costs, building operating expenses related to the headquarters move, acquisition and other charges, acquisition integration-related tax expenses, and share-based compensation. A reconciliation of GAAP results to non-GAAP results is included below.
For the nine month period ended September 30, 2013, total revenues were $672.1 million, up 17 percent from $576.8 million in the first nine months of 2012. Software revenues for the first nine months of 2013 were $279.2 million, up 18 percent from $237.3 million in the first nine months of 2012. Within software revenues, license revenues were $246.2 million, up 14 percent year-over-year, and subscription revenues were $32.9 million, up 61 percent year-over-year. GAAP income from operations for the first nine months of 2013 was $77.8 million, compared to $91.4 million in the first nine months of 2012. GAAP net income for the first nine months of 2013 was $46.5 million, compared to $62.1 million in the first nine months of 2012, and GAAP net income per diluted share was $0.42, compared to $0.55 per diluted share in the first nine months of 2012. Non-GAAP income from operations for the first nine months of 2013 was $151.8 million, up 3 percent from $147.7 million in the first nine months of 2012. Non-GAAP net income for the first nine months of 2013 was $106.0 million, up 4 percent from $101.9 million in the first nine months of 2012 and non-GAAP net income per diluted share was $0.95, up 4 percent from $0.91 per diluted share in the first nine months of 2012.
Additional Highlights Achieved Since July 2013:
- Announced the general availability of PowerCenter Express. Designed for departments and small or mid-sized businesses, PowerCenter Express expands Informatica’s end-to-end data integration offering.
- Announced strategic collaboration with Tableau Software. The combined solution enables business users to derive actionable insights from big data, cloud and operational information through a common trusted data access layer.
- Named Anil Chakravarthy as Executive Vice President and Chief Product Officer. Chakravarthy brings a world-class leadership track record at enterprise software category leaders, including Symantec Corporation and VeriSign.
- Positioned in the leaders quadrant in Gartner’s 2013 Magic Quadrant for Data Integration Tools report. The report notes that, “data integration is central to enterprises’ information infrastructure. Enterprises pursuing the frictionless sharing of data are increasingly favoring technology tools that are flexible in regard to time-to-value demands, integration patterns, optimization for cost and delivery models, and synergies with data management programs.”
- Positioned as a leader in the Gartner 2013 Magic Quadrant for Data Quality Tools report. “The importance of the data quality discipline continues to grow,” Gartner wrote in the report. “Data quality tools provide automation for activities that would otherwise be difficult, if not impossible, to accomplish given the volumes of data and complexity of the technology landscape common in modern enterprises.”
- Positioned as a leader in Gartner’s October 2013 Magic Quadrant for Master Data Management of Customer Data Solutions report. Gartner wrote in the report that, “The ability to create, maintain and draw on a single, trusted, shareable version of customer master data is increasingly seen as an essential requirement in commercial and noncommercial organizations to support business processes and business decision making.”
- Included in Forrester's Top Vendors for Data Virtualization. The independent research firm, Forrester Research, cited Informatica’s “advanced” and “strong and broad data virtualization offering” across 18 key data virtualization criteria as the basis for ranking Informatica as a top vendor in its "Information Fabric 3.0, Forrester’s Reference Architecture for Enterprise Data Virtualization" report.
- Won Ventana Research Award for Information Optimization in the IT Innovation category. Informatica Vibe, the industry’s first and only embeddable virtual data machine (VDM), was the foundation for innovation, according to Ventana.
During the first quarter of 2013, Informatica performed a review of the presentation of certain of the company's revenue categories and adopted a revised presentation, which Informatica believes more accurately reflects the company's evolving product and service offerings. A change was made to rename other revenues to subscription revenues and to present subscription revenues and license revenues as software revenues. Other revenues were previously presented in services revenues. A corresponding change was made to present cost of license revenues and cost of other revenues as cost of software revenues. This change in presentation will not affect total revenues, total cost of revenues or total gross margin. Conforming changes have been made for all prior periods presented.
Conference Call and Webcast
Informatica will discuss its third quarter 2013 results on a conference call today beginning at 2:00 p.m. PT. The live conference call can be accessed at http://www.informatica.com/investor or by dialing 866-652-3154, reservation number 21099349. A replay of the call will also be available by dialing 404-537-3406, reservation number 21099349.
Informatica Corporation (Nasdaq:INFA) is the world's number one independent provider of data integration software. Organizations around the world rely on Informatica to realize their information potential and drive top business imperatives. Informatica Vibe, the industry’s first and only embeddable virtual data machine (VDM), powers the unique “Map Once. Deploy Anywhere.” capabilities of the Informatica Platform. Worldwide, over 5,000 enterprises depend on Informatica to fully leverage their information assets from devices to mobile to social to big data residing on-premise, in the Cloud and across social networks. For more information, call +1 650-385-5000 (1-800-653-3871 in the U.S.), or visit www.informatica.com.
Non-GAAP Financial Information
To supplement Informatica's condensed consolidated financial statements prepared and presented on a GAAP basis, Informatica uses non-GAAP financial measures of income from operations, net income and net income per share. These measures are adjusted from income from operations, net income or net income per share prepared in accordance with GAAP to exclude the charges and expenses discussed above. The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for, or superior to, income from operations, net income or net income per share prepared in accordance with GAAP.
Informatica believes the disclosure of such non-GAAP financial measures is appropriate to enhance an overall understanding of its financial performance, its financial and operational decision making and as a means to evaluate period to period comparisons. These adjustments to the Company's GAAP results are made with the intent of providing both management and investors a more complete understanding of Informatica's performance, by excluding certain expenses and expenditures such as non-cash charges and discrete charges that are infrequent in nature, such as charges related to acquisitions that may not be indicative of its underlying operating results. In addition, Informatica believes these non-GAAP financial measures are useful to investors because they allow for greater transparency into the indicators used by management as a basis for its financial and operational decision making. Informatica believes that the disclosure of these non-GAAP financial measures provides consistency and comparability of its recent financial results with its historical financial results, as well as to the operating results of similar companies in Informatica's industry, many of which present similar non-GAAP financial measures to investors. As an example, Informatica believes that it enhances comparability with similar companies' operating results by excluding stock compensation in its non-GAAP financial measures because of the different types of stock-based awards that companies may grant and because ASC 718 (“Stock Compensation”) allows companies to use different valuation methodologies and subjective assumptions. In addition, Informatica believes that both management and investors benefit from referring to these non-GAAP financial measures when planning, analyzing and forecasting future periods. There are a number of limitations related to these non-GAAP financial measures: (1) the non-GAAP measures exclude some costs that are recurring, particularly stock compensation, and we believe that stock compensation will continue to be a significant recurring expense for the foreseeable future; because stock compensation is an important part of our employees' compensation, such payments can impact their performance; and (2) the items we exclude in our non-GAAP measures may differ from the components our peer companies exclude when they report their non-GAAP measures. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP measures and evaluating non-GAAP measures together with the corresponding measures calculated in accordance with GAAP.
Forward Looking Statements
This press release contains forward-looking statements, including those related to our long term growth opportunities. Such statements involve risks and uncertainties and actual results may differ materially from the results described in this press release. The potential risks and uncertainties that could cause actual results to differ include, among others, risks related to competition with larger companies that have longer operating histories or greater financial, technical, marketing and other resources; sales execution; and uncertainty in the state of IT spending and the growth of the market for data integration solutions. Additional risks and uncertainties are included under the caption “Risk Factors” in Informatica's Quarterly Report on Form 10-Q for the quarter ended June 30, 2013, which has been filed with the SEC and is available on our investor relations website at http://www.informatica.com. All information provided in this release is as of October 24, 2013 and Informatica undertakes no duty to update this information.