Informatica Corporation (Nasdaq:INFA), the world's number one independent provider of data integration software, today announced financial results for the first quarter ended March 31, 2014.
“The first quarter highlights included strong subscription revenue growth and improved sales operational discipline in Europe,” said Sohaib Abbasi, chairman and chief executive officer, Informatica. “Informatica is well positioned for sustainable, profitable growth with our investments to benefit from secular, disruptive trends that are redefining next-generation analytics, business computing and data security.”
Total revenues for the first quarter of 2014 were $243.1 million, an increase of 13 percent from $214.3 million in the first quarter of 2013. Software revenues were $103.0 million, an increase of 17 percent from $87.9 million in the first quarter of 2013. Within software revenues, license revenues were $88.5 million, up 13 percent year-over-year, and subscription revenues were $14.5 million, up 49 percent year-over-year.
Income from operations for the first quarter of 2014, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was $36.8 million, up 49 percent from $24.7 million in the first quarter of 2013.
GAAP net income for the first quarter of 2014 was $24.9 million, up 39 percent from $17.9 million in the first quarter of 2013, and GAAP net income per diluted share was $0.22, up 38 percent from $0.16 per diluted share in the first quarter of 2013.
Non-GAAP income from operations for the first quarter of 2014 was $56.7 million, up 18 percent from $48.2 million in the first quarter of 2013. Non-GAAP net income for the first quarter of 2014 was $39.5 million, up 14 percent from $34.8 million in the first quarter of 2013 and non-GAAP net income per diluted share was $0.35, up 13 percent from $0.31 per diluted share in the first quarter of 2013. These non-GAAP results exclude charges and tax benefits related to the amortization of acquired technology and intangible assets, building operating expenses related to the headquarters move, acquisition and other charges, acquisition integration-related tax expenses, and stock-based compensation. A reconciliation of GAAP results to non-GAAP results is included below.
Informatica will discuss its first quarter 2014 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 888-895-3521, reservation number 23159403. A replay of the call will also be available by dialing 404-537-3406, reservation number 23159403.
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.
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.
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 Annual Report on Form 10-K for the year ended December 31, 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 April 24, 2014 and Informatica undertakes no duty to update this information.
Note: Informatica, Informatica Vibe, Informatica Platform, Informatica Cloud and Informatica Data Archive are trademarks or registered trademarks of Informatica Corporation in the United States and in jurisdictions throughout the world. All other company and product names may be trade names or trademarks of their respective owners.