INFA - Earnings call transcript Q4 2021

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Operator

Good afternoon, everyone and welcome to the Informatica's Fourth Quarter and Full Year 2021 Earnings Conference. Call. My name is Tamia and I'll be your event specialist today. After the speakers’ remarks, there will be a question-and-answer session.

If you would like to ask a question, please. Instructions]. [Operator you. Thank like President now our Victoria host, I Relations. to Vice Investor Hyde-Dunn, will introduce

Victoria Hyde-Dunn

Thank And XXXX Good Amit Chief Informatica's me you. Financial afternoon. the Walia, fourth to joining on and quarter review Chief us Officer. Executive and Eric today full-year call earnings Officer, With thank results. are you Brown, for

Before we have we a begin, couple of reminders.

at press available on Relations website are and our presentation investors. slide release, Our earnings informatica.com. Investor

Actual comments During result vary results this uncertainties. nature. we a call, or of a and may making from as of expressed be risks those materially forward-looking will implied various

For as for revise the about by we of section forward-looking the publicly These forward-looking full review and based our please including Factors more to update Risk or XX-K information in year information and included XXXX. these company's required today, risks, are as of titled most assume except statements filings, filing some on obligation XX-K sec no our recent the upcoming statements, law.

be will - accordance of are These - and discussing non we GAAP. measures in financial reconciliation Additionally, with measures. performance not measures A addition be to of the call prepared over on our to Amit. these GAAP GAAP in items pleasure and the substitute turn website. my to GAAP non for financial Investor financial found a nearest in With release, measure Relations slide to press can Informatica's today's certain available U.S. in presentation that, it's

Amit Walia

the XXXX, met our for year for commitments and profitability. and an fourth-quarter time us full-year and strategic our delivered. the and record priorities guidance Thank and you, by I'm afternoon, thank we first we team as for company, XXXX Victoria. Good performance results public completed our quarterly review operational as very supported and for established all joining end pleased everyone, revenue strong results total you to and a We

digital of reader, cloud-first, driven dealer the our with strategy secular transformation. is by of success cloud Our

Now an Total million highlights year-over-year of from large XX% year-over-year the million and represents from ARR, of XX% million our revenue also year-over-year guidance, quarter new business quarter. $X.X record up [Indiscernible] year-over-year let $XXX the $XXX up on our sell $XXX growing billion. me exceeding percentage was with customers. impressive grew which strong above end grew QX subscription fourth XX% ARR X% guidance. of of grew XX% year-over-year, year contributions a total with of over performance Cloud a to grew billion ARR subscription to bill grew existing be year-over-year by RPO, high which points an to revenues ability XX% $X.X three high on to turn obligations year-over-year. grew $XXX Total the end ARR million, to XX% to base. execution sales now driven Remaining to and

customs. good, Be Our Cloud expansion Data strong from engagement and our Intelligent upsell and the diverse continued partners. on with customer provide additions existing focused new strategic and Management robust generated customer execution, sales platform, our in and demand activity but strong

We XXX to XX% of more quarter examples and ARR ending subscription subscription continues performance of X,XXX that in million spend sequentially. result greater differentiation in platform fourth we enterprise give years. customers subscription an end a for you more over annual active recurring X billion in year-over-year. our X,XXX R&D revenue or our some year-over-year average an account in base than At $XXXXX $X a added subscription Our here. strong leveraging with spend year-over-year our the and that of XX% new increase QX, increase customers record customers the enterprise XX% XX customers, investment the XX% than XX% fourth-quarter Net of grew increase in $XXX,XXX By subscription customer sizable ARR over last are subscription at and customers. and the on

comes Now, subscription the new products any on net IDMC. ARR from of X% our

color IDMC intelligence is drive board per in me we're expansion December multiyear the Customer XX.X which to let platform America, the everybody agreement XXXX. great some SaaS engine that Starting CLAIRE and the their give you our month announce embedded AI North in a process TiVo, use large XXX of the second-largest cloud time base. excited to them wireless commercial to Informatica go-to-market, some long with and T-Mobile as platform support we initiatives In both enabling around customer knows automation Our MDM But Informatica of for signed trillion a customer. U.S summary, execution. transactions wins new to highlight in is enterprises to us across in with seeing expanding and customer business. at on We're to carriers the have portfolio, scale, to turning

business. across and to with trusted deals took Asia-Pacific Malaysian government mutant the owned Petronas embarked ranked sites, XXX. Medtronic Fortune into the a group long-term limitation up gas Looking complexity, centralized, coexistence. in-store and access initiatives identified all digital technical a oil wholly data a partner, transformation Petronas, ended and with as that all of data view consolidated upon region, beginning master globally single multiple companies. complete, an master Malaysia of projects growing management that by the Informatica including Petronas product initial public for new Petronas architecture within among our sector Because company require the has upstream Global of and design and the a new

Eastern Recognizing Middle and Intelligent Central has Cheesecake platform. Russia, and The business, our less and platform operates East This our in leading Alshaya, Body deal Gianetti, name region North company retail a Shop, the Africa, new privatized is to a Informatica, Turkey, end-to-end Management digital brands, X,XXX Secret, few. across international Europe them than XXX notable a Data more online and Operator Victoria's for the changed been Another at Factory, our key of stores the EMEA depth Starbucks, as, Cloud businesses. including

up digital goes. Marketplace with additional to our partnership Microsoft [Indiscernible] its long-term Azure Our and value in presence added

great customer expand of Healthways. stories, Ximen Another example

And I growth cloud transformation. and preferred incremental Informatica had electrical versus SPOS rose key, going think confident all They several our are system that they a knows position the collaboration strategic marketplace over value year-over-year, new digital the number PowerCenter picture long-term strategic also XXX deals. data customer customers fourth that strong in ecosystem and the operating that these as This your of in management ecosystem market, really challenges. grew selecting, this catalog grew times In aerospace initial strategic digital where partners, On companies, partners. a solve partnership a year-over-year. QX a [Indiscernible] by vendor also IDMC X.X is platform, enterprise have quality, system, four four a directive transformation engagement times anybody indicating integrator and the had a volume and winning company. to their data a data transaction traction the main highlighted Microsoft with our partner the deepened partners. the our excellent of ecosystem invest with Axon, increased global with We value. to was quarter, key Cloud with

badge accelerated launch data reached, we announced extended also and the innovation data democratization, partner data reflecting at and conference product bases governance our data and for Snowflake At dealer even the where definitely. AWS program, to partnership ability We Microsoft side, new Modernization protection, for the for AWS, GCP. covenant big deliver our data Cloud data like and governance reinvent democratization we announced Stoelting. programs covenants solutions inadvertent On

and the Informatica management Informatica of that data recognized for and Quality. end-to-end is data an management holding example expansion elevate to analytics. Cloud the customers. XX of they And also of partner solution. Montreal, fourth new in with based at by announced of Governance, be are million partnership log realized and Next. A of by solutions, We use -- America Axon practices a strategic a goal and existing all Catalog, of they have largest the Enterprise comprehensive the data assets BMO strategic in technology, Data to decisions had great North including our Data data-driven Limited Canada leveraging for Data Google Google bank Data BMO Cloud their serving Bank and

addition, deployed on multi-year digitally-powered insights. Informatica actionable draws the will The allow Deloitte's partnership continues BMO on and the evaluation collaborate delivery. during In bank that and the posted partnered with strategic to of

Now let product me innovation. to turn

Powered real-time and data shopping hybrid and we by and CLAIRE, and and buy skills our the launch with continue self-service and cloud data data-driven me democratize analytics, across experience Beginning more automate data seamless enables broadly multi-platform Informatica to an share AI provide enable data engine, first price. to real-time to data easily intelligence. analytical for our AI customers industry models will customers a sharing decision-making date Let of shutting effectively tasks. and of of consumers memory data that all with a marketplace governance,

a Second, automated automation, data and it matching, systems, for curation automated we productivity update of apt quality to added and for more chemo cleared sensor influence capture, automated deleting including assets off customer at scale. automated data power synchronization, routes, MLX automated improving data capabilities, automated changed

enable increase enterprise extended application data APIs APIs. and having better application data pipes lakes support, and to development and performance all accelerate and Third, warehouses to manage the we are We data engineers third-party data in customers the excuses. of and management for but developers our of secure modernization business EPR

ARR data country. a tools for ARR. getting and recently, global cloud-native systems to advanced base maintenance, data digital at drive Axon modernize, the X% as to earlier, deliver and and most on IDMC piece We strong we our mind certification, installed from across including our additional modernize strong cloud standards of the improved and AWS - including commission And cloud experiences to best-in-class their couple and Fed continuations. and flexion. cloud citizens help support handling from and our rate stringent prem platform. first to making Today, and X.Xx see support expanded time and FedRAMP maintenance of achieved interest transformation, for is efficiency, support we more automation to Next, Real continue wanting we've employee platform noted security management customers cloud feature enhancing customer of conversion a quality, the leverage the migrated of them regulations, to for

running cloud platform Quadrant, differentiated Magic a are the the consistently three longest Informatica's in strategy, recently as Beginning We including recognized in with the Gartner in leaders Lastly, master analysts. Rating products, report Informatica a of in again we management time Gartner, is one row industry This and received and technology Quadrant. Magic Vendor leader Gartner's the technology. solution. once sixth data be XXXX our to strong by a categories, reading is named positioned in proud

XXXX one of by the Year the to business in not company And a our coming excited globe. the have year. see and this We Informatica as that us fortunate XXXX platform. a Informatica across also covers were cloud about it group IDMC front of and XX of be companies XXXX intelligence We in opportunities are the could to as Rating wanted We strong in unrecognized Vendor more momentum top-XXX this product out be Gartner new for the

priority for Acthar attributed. cases investment to strategic It and drive key IDMC platform. enhance product capabilities Our use it innovation and begins more is with

Second, motion. continues global to scale partnership and expansion. expand strategic And third, sales our enterprise

Let me. them. of a of you give brief explanation all

products forward of innovation, around innovation today May, breadth to IDMC unparalleled world connectors. conference. more other at Informatica lot best-in-breed suite a metadata market in product the a is on the plus over which our provide We First platform, XX,XXX CLAIRE, user look [Indiscernible], our in seven best-in-class, solution, PowerBack, and product sharing and of no

global sales our to motion. Second, expand we continue

landing income subscription form, accruals great of global through a renewal seven base, London IDMC on customers and two Our expand new with renewal Optima. product solution for XX% desktop of and customer sales platform, and opportunity The rates XX% customer into maintenance is we use across selling cases. base ample rate installed have and new expanding With the

driven our scale partners, we motion. industry amplifying we are internally focus go-to-market As strategic sales on with go-to-market

create on to new of geographies organized on to and across market board. popular in increased routes sales by industrial mention use team will We selling s the emphasis verticals cases

the and investing more for motion be selling property more we'll buyers. high-velocity Additionally,

customers new to of Our pricing and existing model customers. increased drives and us to allows consumption-based more continues adoption flexibility new the within IDMC platform attract provide

GCP Cloud This and our to we're sale, on strategic doubling deepened than accelerate current database. Since partner of we and plug marketing continue engagements opportunities. even a When to we more partners, Azure motion partners. across workload earning more new our program, GSI and XX,XXX we have to we to Third, and With migration partners customer our and year, our today prem - when individuals GSI Snowflake AWS, partnerships. hyperscalers and channel will XXXX, past expand forging cloud this down launched partners. GSI new our the our certified certification selling and introducing strategic partners. relationships year, cost, And ecosystem with doing Microsoft

largest some customers with access seamlessly on migrations doing strategic prem of migration tools excellence cloud factory of to help to our to And in are partners terms workloads as from necessary. our - migrate

billion for and solid $X Informatica, million X,XXX years revenue now continue a ARR. subscription on model I Marketing help in this Officer. deliver think me our flows revenue enterprise, impressive the the commitments. and recurring in Jim cash as than experience achieve Chief We to within ARR from in XXXX. I'm year. XXXX. across to double-digit left brand, strong very including cloud us track call let high and growth achieve Jim operating more XXXX, welcome, help of Quite deliver plus health on a to execution is sales at driving recently, of us market. software Informaticans which We product XX of gen, The business With has we're company to our the $XXX subscription hand believe back over solution the to an were bill Eric. velocity in Kruger demand journey resiliency the of that, we motion strong will proud And

Eric Brown

we good And quarter. finish Amit. fiscal year IPO, end a - QX you, to delivered Thank first afternoon, and was everyone. post good very a strong our

expectations Let before XXXX. discussing provide full-year on me QX commentary the results and some our for

guidance year-over-year range. revenues delivered above Turning growth, billion to our high-end we with X.X the our of results, in QX was which for X% total

driven large expansion healthy including Our activity and results new upsell existing and customer enterprise customers deals. our from additions, by were

In year-over-year. the new XX% customer value, grew strong observed contract TCV fact, new we for full-year, total momentum and by logo, or

and as to will of This of revenues increased financial stability recurring total I the revenue revenues Subscription the XX% discuss cash model. XX% flow, better-than-expected strived later. In and year-over-year of terms are contribution, were highlight our Subscription demand Consulting difference year-over-year total the revenues. to fluctuates XX% cloud of customer revenue compared revenue about solutions. $XXX.X customer of the and at have and flat expected professional revenues. based on requirements quarter. in expected, our for professional revenue and our represented year internal of total million revenues were represented and reflects total than maintenance represented better down X.X% billion XX% lastly, And services quarter of year-over-year of representing expectations. the revenues ago, million and as $XX.X revenues revenues total and Maintenance education strong XX% X% as total XXX.X was represented license may for Stand-alone XX% revenues. XX%

actively customers selling reminder, revenues. total to a not perpetual new percentage of insignificant expect As are an perpetual licenses and we licenses to remain

Our effectively to revenue recurring a is complete. shift model

International XX% million, execution U.S and X% the mentioned revenue. grew percentage strong revenue total As year-over-year sales global X% of points total the Amit $XXX.X we have XX% up for sequentially. earlier, Revenue of from representing million, to $XXX.X to X revenue quarter. year-over-year grew representing

the U.S. as in of transformation. digital see outside countries their continue look cloud us as part We to opportunities of to front the

fourth year. increased new Total XXXX to ARR We in $X.XX XX% turning to in in the million billion added $XXX net quarter. year-over-year ARR. the versus Now, prior ARR

subscription new cross-sell of customer points XX% existing total million new percentage ARR We the up X high points ARR guidance driven $XXX.X Subscription this ARR for up our year-over-year over billion from full-year are ARR customers. represented increased year-over-year, in sequentially. end are a expected metric to XXXX introducing growth above of and on and in Subscription to and total X.X percentage way by year. XX% the quarter X guidance, fourth ARR and as total

and sequentially. XX terms know increased one in We year subscription subscription other Fiscal XX% ARR billion-plus line and and XXXX, currently one year-over-year XXXX in guide XX% the of represented percentage we that are this XXXX, XXX in only technology and year-over-year cloud up the cloud million we total public in to new ARR XXXX dollar as momentum. subscription at point percentage today to in versus ago Cloud companies billion year indicating $X Cloud quarter era a expectations. three scale million increased points with cloud new in era net ARR at ARR. strong up expected compared added net ARR As prior of $XX from about in to XX% was fourth

expect growth high-growth cloud this We maintaining each XXXX, approximately fiscal while in ARR the year-over-year in XX% business. quarter scaling

a Lastly, maintenance ARR flat strong was year XX% million and ARR year-over-year renewal with percentage points at $XXX.X from represented total rates X down of ago.

professional gradual licenses favor maintenance offerings, ARR significantly in we reduced of result overtime. cloud As with sales and have in a will a this decline in naturally reminder,

XXXX. of or was $XXX rate we As QX flat full-year for in net ARR million XXX% a approximately result, year-over-year. maintenance retention NRR Subscription subscription expect

As last driving existing metric this year. expect in the quarter, customers mix due interim see from versus timing of above and longer goal. new ARR deal on to We we to large subscription expanding I as bookings XXX% the customers initial new a first mentioned focused remain in of fluctuations sizes the

first consumption-based marks as our net ARR, quarter, and cloud represented and And a the model, processing Ikea's consumption-based times full of XXXX, has to and Now, pricing turning in approximately use featuring IPO XXXX. of increased our based, the this indicating of compared Informatica our offering. In approximately year uptake choose customers services. to this dynamically fourth to seamlessly of new of by XX% three accelerating lot bookings XXXX percentage cloud XX% also and ITUs. solutions were IP approximately how known any they units, pricing cloud

non I our be the unless point profitability that otherwise quarter, fourth discussing stated. GAAP for metrics, to Before moving will results to like out I - would

throughout for level seeing we're capture areas we to accelerated the QX to make the we Our cloud. to Consistent shift XX.X% in was maintain the prepare all momentum significant support market and investments standing continue gross in year, growth, to the expectations, across mix company as we operations. functional stable investments hire, was public that with a margin and and

year in income several research view was was on $XX per $XX.X diluted year income share investments to continue development updates. net The with $XXX.X ecosystem diluted strategic year. outstanding. and was debt QX million operating in in count sales basic with EBITDA million cash $XXX.X. adjusted investing billion net non-GAAP leverage initiatives. shares. Net an from $XXX.X million, resulted of cash was partner flow million our in shares ratio and priorities have short-term position based was the million. $X.XX XXXX last was marketing, and $X.X and of plus a Capital share for million important X.X Adjusted strong times slightly $XXX.X $XXX.X ended cash down We and We structure this EBITDA as above times of expectations. QX X.X full-year income a net million, and this

free steadily to we the over growth reduce businesses believe with in the ahead due continue full we was intend we to an margins the performance and midpoint. Looking net business XX% next was as $XX best year. cash full-year XX%, removes pleased due million, healthy after working grew will million top years and year-over-year taxes to to understand three capital contract Unlevered unlevered flow leverage We're our efficiencies. of for strong with RPO Operating as in above however, free improvement And expect increase cash $XX.X it our variability billion. and $XXX.X two to An was deliver renewals, two flow metric quarter. associated to growth, the year-over-year approximately XX% naturally of X.X revenue cash to flow duration. operating guidance and billings ratio the line RPO, the to fourth for times. ARR million approximately million, cash the $XXX.X tax in the cash $XXX.X after QX million flow

modeling key assumptions. Now,

full XXXX, model Before financial heading provide I'd some quarter assumptions. for and the color first like to additional year certain on

First, discuss our non-GAAP me expectations for income. let operating

of the to on subscription ASC a percentage ARR expect as require expenses incremental recognition, And dependent subscription revenues ARR to represents business ARR As self-managed additions Amit ample, income subscriptions. which ratably increase. the as which healthy ranges customers mix to gradually of of revenue also, IDMC versus given high-quality upfront the platform, Cloud mentioned, have we and are cloud of opportunities XXX, we recognized as cloud these margin are cloud our in quarter, total non opinion operating achieve XX% are investments We're better ARR XX% mix position of purchased total to operating mentioned the subscriptions of market even last more ARR environment. of us income non-GAAP upon the Self-managed subject - subscriptions will we revenues. opposed making GAAP long-term of time. XX cloud as offerings cloud over part that to

me non-GAAP Second, We our let income expectations XX%. tax discuss non-GAAP net rates. P&L a of and XXXX for tax rate reported

estimating tax are XXXX, For we a rate. XX% non-GAAP

long-term distribution expect operational we our rate steady-state at Looking beyond, based expect taxes settle activity. structure we tax non-GAAP where which Fiscal and of XXXX to and to continue of cash reflect a geographic on XX%,

Third, let me discuss our expectations for shares outstanding.

For outstanding XXXX, XXX of to the basic average average million to weighted shares shares approximately we outstanding be XXX approximately million weighted be shares and first quarter shares. diluted expect

For year XXX average approximately to basic we million diluted be outstanding shares to approximately outstanding and weighted XXX the average shares weighted XXXX, expect full shares. million be shares

expires, the including tax. Class the We approximately will X $XX for on approximately free the our in sale February unlevered invested XXth. me be options eligible of million expectations market public of options shares February opening market for common lockup starting Fourth, XXth, IPO let XXXX. $XXX flow stock, discuss become million at estimate eligible shares traded that after cash and can invested Our

$XX initiatives. net account discrete takes XXXX improving Our grew taxes growth full-year in expensing strategic U.S. nonoperational R&D in in period. million a one higher discrete outlook an federal costs investment capitalize to those requirements tax in item non-operational beginning of for increase into is expected approximately by and item, income, The XXXX cash versus three factors:

to possibility While legislation capitalize that a is that enacted be first requirement there's the R&D. will still

of amended are all account, required of these be establishing the We existing as first guidance taken March. quarter into are including by laws Guidance this follows. make end outlook, unless for we higher March cash to the XXXX the before will as XXXX, XX, current legislation Monday, payments taxes

in of year-over-year XXX XXX We range, to approximately million expect the the at subscription expect midpoint growth the XXX the million, total representing representing the XXX midpoint in range of approximately range. we million X% at revenues of million year-over-year of range XX% the to ARR growth

of ARR range. $XX.X cloud XX% the in expect representing of of the non-GAAP range income $XXX to to in expect year-over-year million the million We $XXX approximately at $XX.X And we the million million. midpoint operating growth range

are to in year-over-year for of We $X,XXX,XXX range the at follows, of guidance full-year expect $X,XXX,XXX revenues range. approximately as the establishing XXXX and the to XXXX representing we growth then December XXth, total XX% the midpoint

representing We XX% expect to XXX the in at of of the one range. ARR billion, million, billion million midpoint growth total XXX X the year-over-year range approximately

of XX% the $XX year-over-year midpoint $X of We growth $XXX in the million, million subscription ARR to representing expect at approximately the billion, range range.

range better-than-expected closing, to the ARR our billion total net of to X we total cash ARR an the debt was end and $XXX generation We to at And ARR million. by believe expect midpoint XXXX to and free billion in after in summary, to we economics. to on achieve before In million XX% to million in range, of predictable cloud of unlevered end we guidance cash well-positioned year-over-year deleverage approximately XXX representing upcoming event. are million a XXX the growth subscription the our non-GAAP proven I $XXX record tax dollar And ratio. times to additions, flow And X.X growth unit expect range of EBITDA would under year-over-year by of XXXX. the three we like the million. We new year cloud in further XX% with expect note quarterly operating for XXX of an expect the ARR in million with cloud range of growth, excellent income XXX ARR ARR flow net adjusted XXXX,

host As and World, our planning user May XXrd, of annual week Amit to online. conference, Informatica the mentioned, we're in-person

Investor very And, may for the reach Relations. much to you you in If questions. you your please attending, support. out line interested continued Thank for now are Operator, open

Operator

you. Thank

Instructions]. begin the [Operator We will now Q&A session.

The Sachs, is line question first Goldman open. from of Kash now the Rangan, line your is

Kash Rangan

fantastic. This of a on hear new Congratulations could and generate. cycle off. see of can are you to AWS the the the partners partnerships partnership, is warehousing But of to with in all these the And partnerships they guys. from kind and this help into seven-figure the get addition technical stuff, could follow-up this represents the your cloud more the year. is curious obviously deals cloud. intrigue as lead it's family your the ARR. partnerships of me the China for to on me leverage I'm that and the these taking then Hello, second for leverage is We comments and There in business? finish it product And cloud partnerships and and these others. really momentum Where are greatly we it's bringing the in the on, to of Informatica? Informatica the ability strong composition

that's changes is product We with you what IDMC platform, much. are segments core increasingly, the showing that on so have but ARR. already, the you thank seeing happening from And you're if up

Amit Walia

all really Thank, happy said them the XX% the on partnerships. on Synapse, extremely are partnerships, are was under and coming the our I GCP talk we all from well. of data context already new I products, the all is hope on the workload To we're all Redshift, subscription cloud data -- smoothly of all before, we AWS look, of the about in of that mix. Kash. and of when housing

we to know, creating. knock already and grow on are more technical years context done improved medium now with last many more towards as to not business gate engineering our workload. We that in the you And many these them then of all partners direction They're had to work green a in is more are complex walking So fair of many, already. work. which bit why

seeing PowerCenter took traction with that already as that. we they're migrations including them. of cloud we As speak, in go And

you I'll example, via investment the So their own many quarters give there connecting for did customers to have salespeople. are partners their incentives marketplaces. Market-based that

index good we with we is Informatica those of as are towards And all So what Thomas. new speak, LOI. a which at event love -- the I

both modern, product expect see the many, these out You go-to-market many and unaltered coming type. to on

that examples seeing either once in we're you So already naturally ecosystem of VDI to and expansion or from shared grow the context takes know deal that some as at-as and uplift then on-wards. as cloud naturally partners there wins win well I that of the day mentioned where and given productions, again, alignment begin, And so grown as you modernizing.

and not XXX. and the talked automatically We've mix, journeys, data key data-led about I says. On am leaks, business and very governance privacy, comfortable, data

added is year, this said in MDM all of like fourth journey the around other day. them When fact, the the XX% on I up we've combined remaining That ongoing. hyper-automation. at process will is XX% I all modernization development or a look thing and In which

You of saw deal, covenants, payments leader examples deals, around and MDM deals, all are VC them. integrated many being so

Eric Brown

Kash, the rate your question reference I'll again, this XX%. about growth the growers to of high product, family subscription ARR role the And overall trajectory.

requires EDC. the well be any year-over-year So as journey call and will quality data the product in point out cataloging. terms sub well in quality for data is one Thomas that, above of undertakes growing as XX% ARR, general,

the very from in growth well. [Indiscernible] also, was And to strong really the strong us quarter so and also as we continue is MDM see for

those family So three product the calls. be would

Kash Rangan

Thank much. you so

Operator

The next Rangan. the Murphy Mr. you, JPMorgan. Thank with from line Mark is question of

Your line open. is now

Mark Murphy

And Kash's Thank much. on comments. I'll add you of congrats my the very hills

for still at a trend slower company find vacation and shutdown with where be year-end some a they're from that being more or holidays, consumption heard little more around the noticeable companies, shutdown. tying we've Amit, back is you too really that software way to that you early companies infrastructure So Did to consumption in mentioning

Amit Walia

growth we've seen progress. thought, I great question. tremendous commercial, mentioned Awesome, in nice a

more in lot You to and they be slowdown anything. case related transparency, if In the they you families getting build targetability heart beauty thought time these flexibility down provide by use give that of a importantly, QX customers use they begin from case. Customers mind for than of and platform, that customer the of would can they RV feedback That operationally and across to consumption-based any peace would anything but sublease for with A just se. have of pricing. on value we a more seven leading us discovered use because like the the that bringing a initially what move onto nice all use particular. and Keirstead that, in the grow defined consumption cloud the interfering the loved and case and on that's use nowadays, gave another per fee it any when in the we ability on in flexibility get. we portfolio. the see customers anything, honest, new product that. like need to that. We big the blend, not consumption, to To across The have capabilities for on only IDMC begin, particular naturally to

Eric Brown

metrics The of a we month. one total transactions on what's that the transactions things add have provided IDMC platform they operational normally number of per are

noted increase a year-over-year. so we And XX%

think of the one that's I increases year-over-year seen. highest we've

our of and into accelerated we platform. the So see year use

Mark Murphy

Okay.

that bucked trend completely it like sounds in you every way So possible.

mentioned I to load the in you're Especially slightly unlevered XXXX, I that wanted the question would same above, our financials that on the you you make with seem which taxes, is cash what to at causing, least -- above believe higher cash flow. tougher is the ask to guiding time, the at accomplish. free a higher model expense while would is dynamic say on Eric, you So

that is for to a little? So possible it unpack us

Eric Brown

We in here can really noted XXXX. operating flow We just cash year-over-year. offer over growth good XX%

growth, and clearly ahead let's growth cetera. et revenue well So of ARR

very business overall are mediates and moved rates expectations. through renewal our mechanics the internal are been So doing renewal model of own to you than seeing continue rates completely We radical be best higher we've the high and well.

also example specific ecosystem. as in some in general of industry line going Cash going us increased have and is quite out in potentially to investments working is as form well. example, is that to subscription had verticalization more even we're in XXXX, take well go-to-market, flow It's a the bring areas the go-to-market good And closer. Against investment R&D Amit spend. there. the we That's noted For investments, partner a planned. where for to

around it So the advantage. all orients big IDMC

And guide good unlevered low opening XXXX have the higher to for we're XXXX, doing mechanics cash so the despite enough that free in that on spending business flow. cash expecting we're for the

Mark Murphy

for Thank that. Okay. you Well very and clear. very, said

Operator

Thank question Wolfe of Mr. next from Zukin is with you, Murphy. Alex The Research. the line

open. is line now Your

Alex Zukin

the being great cloud of net as congrats much in is that want one maybe dynamics XX% anticipate will driven coming usage new I think of about 'XX. cloud guess and me that you operator, the to business was customers exiting want to from a if just that on And cloud about Fiscal quarter for consumption that guys. motion bookings specifically impressive I I Thanks, by percentage And there maybe migrations what ask for pretty for to first well. guess specifically, was the it hear how versus and ask, be of I year you new QX.

Amit Walia

that [Indiscernible] last stocks Any groups again.

give then me mortgage color or you the some I on existing new and we'll Let just think numbers.

subscription you We customer I gave type number. of yield So you. XX non saw s

on are customers. focused both We

existing our to We who grow to are new customers than maintenance numbers you. on, these as focused saw net products on we existing you new legacy subscription products on landing our use customer gave customer a using are

basically equally So about once drive key one focused that have [Indiscernible] Lightspeed think their both. product. are I we beauty existing We on stack so last of of customer. focused these the is operational we a line that on deliberate that the lot workflow, it, above,

look back So we'll into goal.

there. growth details it some new You and the over talk the about talk net would see us about on then of [Indiscernible]

Eric Brown

a say -- overall very I again, active that is terms bookings. of new Yes, quarter net obviously QX and would if in

IPUs in And quarter we to ever. the and have form of cloud the we get bookings new so highest XX% the of talk of

average near will are cloud XX for a customers. about to I really overall that the ARR. to the XX IPUs, of where noted also well with see IPO you would like is ARR It's quarter to wouldn't IPUs an But estimate future try is is I relative XX% total stat. staff the average overall less XX%. expect in We resonating worth

something clearly kind the understand cloud wonder we and key of think so wanted trending. drive is resonating on share we in could So with cloud flexibility because XX% the inflection the much as really, is but staff that to I'll this upward pass sales we this you really group to IPUs overtime

Alex Zukin

else you I sequentially, a then Clearly jump around little other the through bit one can for DBNE. how Super trend of maybe but just specifically we walk tougher me mentioned be expect around maybe kind and compare half it anything lower guess drove and number, you year? that first quarter maybe and what into that to helpful, volatility between QX the a was of the that of or the would solid should quarters. number in Can kind the

Eric Brown

I make to want sure question. the I understand

you're You said the to? referring [Indiscernible] so

Alex Zukin

NRR. TBSR,

Eric Brown

Yeah. Sure. fine. No, no, NRR. it's

question. great a it's So

in And So a brand are cloud been XXX% we new to the ago. Because that is quarter what from going we that they don't the customer, had given industry. new is customers whether staff or only, time, be a will net of contribution take in basically they for a had about the model have of from case, any a to is much we full-year. make to QX important subscription for in the logo. branding the that things additive identical, a migrations NRR come which first QX year NRR precise is how new the know an net to example, NRR, in have in comes for where -- maintenance our what one understand to existing bookings booking

more had with from logo for a customers XX% net us versus TCB, that up significant of that of really think you new I out increase in existing year-over-year. a We so And new. bookings it's called mix

I and we're weren't doing months. is the we NRR XX so the that with business current answer And think stat affect wait more in they have to logos unfortunately, net period, new what

Alex Zukin

Perfect. Thank you, guys.

Operator

Ikeda of line Bank of Mr. Zatzkin, the next America. question is, with Koji from the

is open. line now Your

Koji Ikeda

more or Hi, this Koji. on along is

NRR. So a on just follow-up actually

the guys mentioned have product cloud a data as service. new as categorized data this as and You ICBM, it's marketplace,

I So the if contribution to of decline wondering that has was any NRR.

Amit Walia

-- So different cloud marketplace, any is Data-as-a-Service too from type different.

and So mix grew. business about number. delivering NRR right. that always as thing we And band result that, we've Data-as-a-service state product We've always net the diluted the little grows, that category a said than yes, that naturally NRR talked the that you're onto cloud separate lower is good

very data offering things. of I Data and the sets data the So received. thought per access been that of and our of shopping governance kind We're has very side it. two and marketplace on service excited in well to we're of kinds enterprises definitely marketing about large any And days product offering top adhering have different data to for is side one a strategic we had actually builds launched. user data very go cart, very enterprise. allows products that It covenant are fundamentally dynamics. that -- an on very we But all very very different policies a two that different

Koji Ikeda

that follow clarifying up that. on Great. Thanks, for on, just

to of my is Thimet that So the synergy here. news leveraging offered it's How or other leveraging type alternatives per steady thing. AI, backfill CLAIRE more you kind customers the can what's Data understanding. the for

Amit Walia

Absolutely.

of work access exist obviously enterprise. go give a want market shopping and you an is Amazon automatically don't in sets CLAIRE within access you to your like you bit of that the that message ratable, to done user not card an to euro access data in management and the with that never and under owner automatic automatically that being have give policies of to could embedded like experience, flow. in and it to your want broke the the delay governance, have drop context every kinds data an that base particular bit access. care integrates access a drag you before. all market nose with the an owner under care Things send to covers, you a you the So data be the and been And goes example the of and of product the of does, what

data that don't (ph), In as in on is the prem. place process. other it be get that is sitting by them used Snowflake of top to sitting it data data, wrong any working could So of in they because those obviously big could automates need dispersed of They data a our holistic offering be top rate, and access people with that store, want in a goal be it every officer capability wrong challenges. data to tribute very a anything could in on azor it sitting or where is sitting, look, providers,

the fair. value comes how to that's So

Koji Ikeda

thanks the Great. for clarifying.

Amit Walia

you. Thank

Operator

you. Thank

reminder, as a questions Just to please participant. one limit your per

with line is Markets. Our Matt Headberg The Capital of RBC next question from.

line now Your is open.

Matt Headberg

one for Hey keep thanks to guys, my here. I'll it question. taking

You guys just you're delivered to year. and XX% this cloud XX% ARR guiding growth

of for that, implied there, with you a that no So conjunction maybe sort question since guess X.X X.X what this that's what sort wondering even with of X to made the saw growth. than visibility in kind uplift I'm believe but conversions of wondering business? quarter. of assumptions there ARR sort you've you cloud what previously, I guidance deceleration obviously have seen And I your maintenance better assume

Amit Walia

that Matt, weather now you're thanks are you seeing where warmer getting are. actually Hopefully, the acceleration. for question. We

rate. every But one the that (ph) that to is thing because had question XX% great to -- going like think underlying put Veny I a ARR growth group. I this it's it a quarter. number

accelerating number. is So it an

seeing We growth down. and goes small, the that was number rate is the big, are growth high, gets not number the if the so rate

cloud same even the in growing underlying ARR size. growth rate seeing is number as going the to what's are We the keep

we to year than close a then as number mentioned, we guided much guiding a XXXX. when number cloud for is this ARR to base a So XX% I of our bigger

that. scaling we there, let bigger are to a growth because more much, we from on I'll think Eric add of to are number. we much accelerating absolutely So

Eric Brown

maybe Yeah, three put just numbers that. against

million. So approximately million, in numbers, XXX XX the following XX million

So additions where well ARR That's and $XX expecting the million $XXX represent? XXXX as is add. does actual actual million new XXXX, net we're XX to that in

subtract guide a So in ARR, midpoint that's the XXXX ARR actual, million. take [Indiscernible] cloud our $XXX from if you that

$XX point, plus plus plus $XXX. current $XX the we're accelerating So

Amit Walia

to come the we then back talk migration was look, back migration you've on heard North like that And about. question it to the other also bought me

cloudy our and new workloads new workloads. subscription of work from come of you There of eligible. workers. that legacy net order the growth, both on net None on from focused ARR new driving our has all their coming of XXX% loads outlook We of workers. group upon And migration will the is data a the subscription see are XX% fundamentally all time

workloads pie, shopping So make of if the I been are leaning. so customers that to focused of new And piece that mean, maniacally Gail our my additions linked Cloud. to on we've driving

You saw, of talked and I XX. maintenance about think Optiv X%

migrated, percentage will big maintenance course, a a number, it's hop Now, billion dollars. of group

We expect there. momentum and to see more more

You the more drive the together Expect to ARR. automation, both Cloud saw that to talked about ecosystem and going grow factories, more I migrations and more with going more drive players. We're GSI-leveraging to also.

Matt Headberg

guys. Thanks,

Operator

is from the Thank you, line next Mr. question Andrew Headberg. Fargo. The of with Nowinski Wells

now line Your is open.

Andrew Nowinski

kind All And any on that contribution Certification Fed XXXX. just of mentioned. right. you certification? if Thank of XXXX, assuming on level now in what your you're you that guidance what Thanks. or think have that provide could afternoon. you the relates to have color the question FedRAMP a wondering for high federal had your Good it I contribution could you. as you maybe I was just

Amit Walia

to Andrew, expect there's biggest I But spend. focus U.S in to the globe, a particular big how that don't so guide a fad combined fad. are tell on out tech, business, You can breed mix much you with you? obviously, us

be for make mark, needed critical the them want being existing new you'll covered goal eight cloud, extremely and make sure go comfortable is for up workloads, better to to want to average there. who modernization Our sure of act see important. daily start customers the to we've a is all are They of to background customers. them And to lot to

naturally, them, tables all we These And customers. know, invest more expecting and we were to you portfolio be drive a we we monitoring got that part to should of year, new our a expect as more with different that invest also FedRAMP made great this there, so many of are if have obviously then from in. states and FedRAMP many report flavors. us we've So have

another for example, round that Texas we So defined. the has watch end-of-period are California effect state one. of

those, it's well of year. sled expecting spend we comes from a and of not point big this view as All

Andrew Nowinski

you. Thank God. Thank

Operator

Keirstead UBS. And Lewinsky. from Mr. with is Karl question you, Thank next

now Your is line open.

Karl Keirstead

up XX% to on sales. look growth the in higher progress fact despite that to different put your the subscription, revenue Thank press the despite just growth Eric. XX It's you portfolio, for that mix made to not than perpetual you. lapping despite guidance Eric, diversifying I'd you've decline the XX. on license X% Maybe shift in in the calendar the you're

is in you. clearly roll-off offset. you So an that unpack accelerating maintenance for there My could maybe maybe the but Thank guess that XXXX, is is us.

Eric Brown

maintenance It's it. part a great question. And is of

of what achieved As QX, call we maintenance. and Right. peak I'll XXXX have

XXXX have have perpetual going where license year, next the level flat. going about first the with So to we're we is year that

maintenance result, of adds decline there's So hit the maintenance to we the bottom, of and net as -- a rest of new perpetual none new keep flat. were

where ARR that's gave speaking the we loft ARR the total assumption see EBITDA midpoint. at the time, guide the very explicitly, maintenance so for And first metric X.XX

drives all is be are our And as self-managed the it the overall the that those acceleration. bookings GAAP thing the what in revenue where expecting now this level. net revenue self-managed. well. revenue there XX% new With into causes year-over-year Cloud So maintenance, rental that versus at to GAAP that And versus we're decline of with too, net growth is And of to the fix that other yield skipped expected course, new a mix going higher decline peak relative in Cloud past more self-managed. business decline again,

Karl Keirstead

should that Got see this Eric? willing we acceleration there, continue and to I growth the modest it. 'XX. you cloud of least that. into go And as your these continue up just mix that years imagine following a would goes follow-up Are to trends beyond at

Eric Brown

decline. several to just flush have you expect to over It's eventually years, time through that, model. up pure we GAAP cloud catch revenue a ratable Almost to the

You of from new make XXX. have And kind the natural net away that perpetual. then and cloud bottom complete or find to to you have sure

still, we north ads growth, be be year-over-year completed GAAP it where of get so And accelerate will Once specific we self-managed. year-over-year, first. XX% of from it and again, versus believe and expected the then, can our can through is, we cloud that revenue year-over-year. the We're increasing we but

Karl Keirstead

Yes.

Eric. Okay. Thanks lot, Great a answer.

Operator

Thank you, from Mr. the Patrick Keirstead. Colville with of question Deutsche Bank. The next is line

open. Your line now is

Patrick Colville

little a quarter as because the subscription I up then where was cloud estimates why a guess just want I guide. there. my of lifted I much the of much as maintenance and model follow-on taking actually the was ARR most inclusive the so didn't estimates I calls quite crunched you I numbers question. the North, do my to for Thank for and ARR let

So us up But maintenance. expecting made maintenance the to because I it just fiscal I that guess, for like versus just comments could ago strong you peak you guidance we're holds pretty me, 'XX fiscal may unpack suggest in three unpack the now as actually we 'XX. that months looks what be

Eric Brown

that decline a it's [Indiscernible]. giving of you of bit QX obviously. I And we're we're Yeah, think X.XX, little midpoint calling. variability, at question the a again, for The

So as a working we're -- the there is range the number X.XX. of it's this meaningful, is large but the off since midpoint that

fill you've in the beyond then going point a to assumptions We've would goal year-over-year. posted the for you'll and one for, flat course, So, X.XX. where and perpetual emphasize, is other that decline. it's again, We point clearly lasers been have the expecting we're of with in have the articulated QX. of And just to that, QX got

aided sure And is point. make so versus to that ago maintenance the offset expected additional declined. maintenance obviously to just year no There want you have

Patrick Colville

there I area might not maintenance fiscal very -- it really can I risk mean others? And just XX quickly, or just an be in in upside where

Eric Brown

the at of year. We're dense the of midpoint very May comfortable end with the XXX

Patrick Colville

so much. you Thank

Operator

question Colville. you, of next Winslow Thank Suisse. is line Mr. Phil Credit from The the with

line Your open. is

Phil Winslow

question. taking for my thanks Hi,

there retention retention terms that obviously, think the in anything of you component the coming gross the past jumped over then you're seen talk and that's that trend why how net in terms that the there XXX, of and in upsell, the don't trends of driving XXX But seeing around XXX. year to unpack also Just wanted Thanks. between of the that that upsell that's and number, then you about through with year? you've contribution a just is terms into

Eric Brown

customers. net of called NRR from new to -- net is the Again, NRR mix of The emphasize the I contribution I QX, bookings, very to want things brand that too. and bookings sensitive out, statistic. The XXXX upon kind zero customers existing are versus dependent very we're more a new fact was of of in new one And new much overall important. very just statistic those came our clearly the logos met really

lines, trend in back over XXX% And had the so QX. a look as we we

you Our this in of in last net new. as year, it's seasonally of a and bookings, most year net new -- for know, terms the IO QX XXX% QX, like activity

in terms would And so the have the from of new of additive variability -- be therefore which going to it's to customers versus activity. comes QX existing NRR. most sub-customers, It mix

Operator

Mr. is Winslow. next you, Radke The from Citi. question Thank Tyler with

open. line Your is

Tyler Radke

thanks moving count? and Hey, logos Thank of kind about pace just maintenance my that's should versus the you on customer total customers old some for total you of know new performance. you've trending customer give about some think that how maybe impacts the ask of to us real taking just number, wanted of how legacy, on, we you. just the dynamic but just about particularly the question. new your I level ACV, there, I strength talked could

Eric Brown

the take pass common. maybe then first I'll for that Jonathan part of and to

versus million reported Eric last the XXX number QX we in than some a customers XXX year. of a greater so So

rate and and just as interesting an breadth XXXXXX the is saw that's the the our customers. as important excellent So greater customers, growth air large than of enterprise

QX, the again very on to And compared XXXX then versus nicely of of XXXK than XXX,XXX So had to sub greater X,XXX era customer the as year-over-year ARR average XXX,XXX. also up XXXX, customers is a year-ago. we end per

as But we're well. more were what customer, customers rest adding to success we $X purchase existing of great new the as So well. participation very seeing with large sub continuing an or is either customers, as million

good cohort ARR evidenced a the with greater average very by XXXK, behavior is that of stem. So as than band the

Amit Walia

dynamics our existing customers much number look, barton, been our IDMC to the about We to expanding, And goal penetration and there the think of talk focused been we on. as rates. I platform. And has maniacally has it has finance which as drive are renewal continue

dial, of use focused new on important. going high-velocity worship just solve going -- again sticky, in top very back because But I on stay very our is We And customer We what selling to allowed equally operational board value cases. end success. all focus enterprise us to the penetrate Our we're the expand. new selling the in of go know products to also customers hydro said rates. I naturally before. gold Very to high land we products

So we're customer as much customers focused on new as to existing going go expansion.

Tyler Radke

planning as for structure about on making either to think the process are XXXX, perspective any tweaks accelerate there a guess I And you. Thank Cloud? just or go-to-market you Great. you're incentive organization from to

Amit Walia

I we're already, from Yes, adding -- motion. at are doing we're that, what mentioned people look, industry

absolutely have bringing in, so that, on we going in leaders as down of industry in focus been verticals. key to that's and go-to-market new around well. motions, they've focus So definitely terms will media Content investing

come us like dig fact, discussions more us help sure his Musial And more board one that the they make other our is together. in or ignoring the all to industry Jim want experiencing. can industry-leader with can obviously the customers. in now lot seamless, buyers buyers, make GSI hyperscalers been maintenance-based lastly bringing center is but high ability we course, or partners that. is our the to Snowflake, so with Obviously Azure GSI of lastly, start The And more our the bringing comes whole that continuing mix, it as migration and our work happening to has small allows partners departmental for another then selling. small. around and the Loi Cloud Cloud of out in who a and accelerate easy on business And to buy also

year. are this where more we So and those investing the bring are areas

Tyler Radke

you. Thank

Operator

will any additional to I Thank now for at are remarks. additional Mr. questions time. this the waiting there Amit no turn you. conference Radke, over

Amit Walia

thank Well, are hear as joining can from excited you. we you We today. future very of us, Thank about you all for the Informatica.

have our that differentiating We marketplace these delivering growth we opportunities also ourselves multiple on in commitments. an upmarket And about, opportunity are IDMC And with I are billion $XX we focused. cam. platform. Best-of-breed our enterprise talked products are and the

to scale. globe, ARR We employees about great unit a year partners, great at support. know cash and the extremely our with billion-dollar globe. what unique the thankful at economics, scale running a We're to I'm customers, are company. across continued run subscription this across our is their business We We business profitability. all of And a talking how know again, great our for shareholders flows,

So great much. a if you have afternoon. you very Thank

Operator

the That your concludes earnings participation. Informatica's fourth Thank you call. year quarter XXXX and conference for full

You may lines. now disconnect your

Informatica (INFA) 17 Feb 222021 Q4 Earnings call transcript