Informatica (INFA, Financial) has deepened its collaboration with Databricks to provide customers with advanced solutions for updating their existing on-premises, Hadoop-based data lakes. This development leverages the strengths of Informatica’s Intelligent Data Management Cloud alongside the Databricks Data Intelligence Platform. The collaboration aims to facilitate a seamless transition to modern data architectures, enhancing the efficiency and capabilities of data management. This announcement was made during the Informatica World event held in Las Vegas.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 16 analysts, the average target price for Informatica Inc (INFA, Financial) is $20.88 with a high estimate of $27.00 and a low estimate of $18.00. The average target implies an upside of 7.25% from the current price of $19.47. More detailed estimate data can be found on the Informatica Inc (INFA) Forecast page.
Based on the consensus recommendation from 17 brokerage firms, Informatica Inc's (INFA, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Informatica Inc (INFA, Financial) in one year is $22.40, suggesting a upside of 15.05% from the current price of $19.47. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Informatica Inc (INFA) Summary page.
INFA Key Business Developments
Release Date: May 07, 2025
- Total ARR: $1.704 billion, 4.1% year-over-year growth.
- Cloud Subscription ARR: $848 million, 30% year-over-year growth.
- Total Revenue: $404 million, 4% year-over-year growth.
- Non-GAAP Operating Income: $121 million, 11% year-over-year growth.
- Cloud Subscription Revenue: $200 million, 32% year-over-year growth.
- Net Income: $69 million.
- Net Income per Diluted Share: $0.22.
- Adjusted Unlevered Free Cash Flow: $186 million.
- Cash and Short-term Investments: $1.25 billion.
- Net Leverage Ratio: 1.0 times.
- Cloud Subscription ARR Customer Count Growth: 8% year-over-year.
- Cloud Subscription ARR Customers Spending >$1 Million: 48% year-over-year growth.
- Average Cloud Subscription ARR per Customer: $343,000, 20% year-over-year growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Informatica Inc (INFA, Financial) reported a strong start to the year with all key growth and profitability metrics exceeding the midpoint of guidance ranges.
- Cloud subscription ARR grew 30% year-over-year to over $848 million, indicating robust growth in the cloud segment.
- The company is on track to reach a milestone of $1 billion in cloud subscription ARR, highlighting successful cloud transformation efforts.
- Informatica Inc (INFA) has seen an increase in new customer acquisitions, with approximately 42% of cloud net new ARR coming from new customers.
- The company has implemented operational changes to improve renewal rates, which are already showing positive results.
Negative Points
- On-premise maintenance and self-managed ARR declined by 13% year-over-year, reflecting the ongoing transition away from these segments.
- The net retention rate for cloud subscriptions decreased to 120%, indicating potential challenges in expanding existing customer accounts.
- There is a noticeable decline in self-managed subscription ARR, down 16% year-over-year, which could impact overall revenue growth.
- The company faces a fluid macroeconomic environment, which could affect customer buying behavior and overall business performance.
- Despite strong cloud growth, the overall revenue guidance for the year remains conservative, reflecting potential uncertainties in the market.
