Informatica Reports Second Quarter Results

  • Total revenues up 4 percent to $261.9 million and up 10 percent on a constant currency basis
  • Record subscription revenues, up 39 percent year-over-year to $22.5 million and up 44 percent on a constant currency basis
  • Software revenues up 7 percent year-over-year to $110.8 million and up 13 percent on a constant currency basis
  • Record deferred revenues, up 12 percent year-over-year to $349.3 million and up 19 percent on a constant currency basis

Redwood City, Calif., July 30, 2015- Informatica Corporation (Nasdaq:INFA), the world's number one independent provider of enterprise data integration software and services, today announced financial results for the second quarter ended June 30, 2015.

“Our business model evolution is progressing well with year-over-year growth of 44%, on a constant currency basis, for subscriptions that now represent 20% of software revenue,” said Sohaib Abbasi, chairman and chief executive officer, Informatica. “Our team continues to deliver transformative innovations for our customers.  At our largest-ever Informatica World event, we showcased the latest innovations for cloud integration, social MDM, data integration for next generation analytics and data security.”

Financial Highlights for the Second Quarter Ended June 30, 2015

Total revenues for the second quarter of 2015 were $261.9 million, up 4 percent year-over-year and up 10 percent on a constant currency basis. Software revenues were $110.8 million, up 7 percent year-over-year and up 13 percent on a constant currency basis. Within software revenues, license revenues were $88.3 million, up 1 percent year-over-year and up 7 percent on a constant currency basis and subscription revenues were $22.5 million, up 39 percent year-over-year and up 44 percent on a constant currency basis. Using currency exchange rates from the second quarter of 2014, total revenues would have been $15.0 million higher, license revenue would have been $5.2 million higher, subscription revenue would have been $0.8 million higher and software revenue would have been $6.0 million higher.

Income from operations for the second quarter of 2015, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was $29.5 million, down 13 percent from the second quarter of 2014 due to $8.8 million in costs  incurred related to the pending acquisition of Informatica, with $6.6 million paid during the three months ended June 30, 2015.

GAAP net income for the second quarter of 2015 was $18.9 million, down 17 percent from the second quarter of 2014, and GAAP net income per diluted share was $0.18, down 10 percent from the second quarter of 2014.

Non-GAAP income from operations for the second quarter of 2015 was $57.0 million, up 4 percent from the second quarter of 2014. Non-GAAP net income for the second quarter of 2015 was $39.8 million, up 3 percent from the second quarter of 2014 and non-GAAP net income per diluted share was $0.37, up 6 percent from the second quarter of 2014. These non-GAAP results exclude charges and tax benefits related to the amortization of acquired technology and intangible assets, acquisition and other charges, stock-based compensation, gain on an investment in an equity interest, gain on foreign currency impacts of hedging foreign cash repatriation, and income tax expense related to current plans to not indefinitely reinvest undistributed earnings of foreign subsidiaries. A reconciliation of GAAP results to non-GAAP results is included below.

Deferred revenue as of June 30, 2015 was $349.3 million, up from $310.8 million as of June 30, 2014. Using currency exchange rates from the second quarter of 2014, deferred revenue would have been $20.7 million higher, and growth would have been 19 percent in the second quarter of 2015.

Additional Highlights since April 2015:

  • Hosted 16th annual Informatica World Conference. Informatica's largest-ever data management event focused on “All Things Data” featured more than 2,500 attendees and the highest number ever of presentations by customers, signifying that Informatica is becoming a more strategic partner to our customers.
  • Showcased key innovations in the Informatica Intelligent Data Platform (IDP) to integrate, prepare, master and secure data. Informatica's innovation momentum continues with product releases in cloud data integration, big data integration, MDM, data preparation and data security.
  • Honored the winners of the 2015 Informatica Innovation Awards, which recognize data-centric organizations that have demonstrated leadership in using Informatica solutions to help drive innovation and business advantage. The winners were honored in six categories: Analytics (Winner: Johnson & Johnson), Application Consolidation (Winner: Depository Trust and Clearing Corporation), Cloud Modernization (Winner: BT), Data Governance (Co-winners: Cleveland Clinic and The World Bank Group), Total Customer Relationship (Winner: Hyatt Hotels & Resorts) and Architectural Platform (Winner: Fidelity Investments).
  • Extended Informatica Master Data Management with Total Supplier Relationship (TSR) Application for end-to-end management of information about suppliers and products they supply.
  • Showcased the Intelligent Data Platform for operationalizing Hadoop projects in the Big Data Ready Enterprise.  At the 2015 Hadoop Summit, Informatica demonstrated its big data management, big data governance, big data mastering and big data security capabilities for delivering more timely and trusted data on Hadoop.
  • Rated a “Hot Vendor” in the Ventana Research 2015 Product Information Management Value Index. Informatica was identified as a “Current Leader” and “New Market Force” in Product Information Management.
  • Obtained stockholder approval for the acquisition by the Permira Funds and the Canada Pension Plan Investment Board. The transaction is expected to be completed in the third quarter of 2015, subject to the receipt of certain regulatory approvals and the satisfaction of other customary closing conditions.

Informatica will not be holding an earnings conference call to discuss its second quarter 2015 results.

About Informatica

Informatica Corporation (Nasdaq:INFA) is the world's number one independent provider of enterprise data integration software and services. 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 5,500 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 constant currency license revenues, constant currency subscription revenues, constant currency software revenues, constant currency total revenues, and constant currency deferred revenues, income from operations, percentage of income from operations to total revenues, net income and net income per share. These measures are adjusted from license revenues, subscription revenues, software revenues, total revenues, deferred revenues, income from operations, net income or net income per share prepared in accordance with GAAP to exclude the charges and expenses discussed below. The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for, or superior to, license revenues, subscription revenues, software revenues, total revenues, deferred revenues, 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 that may not be indicative of its underlying operating results. In addition, Informatica believes that 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 other companies in Informatica's industry, many of which present non-GAAP financial measures to investors.  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 limitations in using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP, do not reflect a comprehensive system of accounting, may have a material impact on our reported financial results, and exclude some recurring expenses, particularly stock-based compensation. Stock-based compensation will continue to be a significant recurring expense for the foreseeable future and such stock-based compensation is an important part of employees' compensation, which can impact their performance.  Informatica's non-GAAP financial measures may differ from those of other companies in our industry due to potential differences in their financing and accounting methods, the book value of their assets, their capital structures, the method by which their assets were acquired and the manner in which they define non-GAAP measures.  Furthermore, the items Informatica excludes in its non-GAAP financial measures may differ from the components its peer companies exclude when they report their non-GAAP measures. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which charges are excluded from the non-GAAP financial 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 includes forward looking statements, such as those related to our growth opportunities and the timing of the pending transaction. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from the statements made in this press release. Potential risks and uncertainties that could cause actual results to differ include, among others, risks and uncertainties related to competition, product introductions and enhancements, quarterly and seasonal fluctuations, macroeconomic and geopolitical conditions, our ability to forecast sales and trends in our business, reductions in our sales pipeline and pipeline conversion rates, changes to our sales cycles, changes in our product offering strategies, our international operations and the loss of key personnel.  A discussion of these and other risks and uncertainties is included in our recent SEC filings, including our most recent report on Form 10-Q. Copies of these documents may be obtained from the SEC, by contacting our investor relations department or from our investor relations website at www.informatica.com/investor.  All information provided in this press release is as of July 30, 2015, and Informatica assumes no obligation and does not intend to update or revise any forward-looking statements made in this press release as a result of new information or future events.

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Note: Informatica, PowerCenter, Informatica Vibe, Informatica Platform, Informatica Cloud, Informatica Master Data Management, and Informatica Big Data Edition, 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.