Earnings call transcript Q4 2022

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Operator

Good afternoon, and thank you, for attending today’s Informatica Corporation’s Fiscal Fourth Quarter 2022 Financial Results Conference Call. My name is Daniel, and I'll be your moderator for today’s call. All lines will be muted during the presentation portion of the call with an opportunity for questions-and-answers at the end. [Operator Instructions]

It is now my pleasure to pass the conference over to our host Victoria Hyde-Dunn, Vice President of Investor Relations.

Victoria. proceed, now may You

Victoria Hyde-Dunn

Thank you. to earnings for us thank afternoon Informatica's fourth and review XXXX you quarter joining Good and results. full-year

Executive Chief on Amit me call Officer; Chief and Joining Mike Officer. Financial today's McLaughlin, Walia, are

Before we reminders. begin, a of have we couple

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

the concludes. prepared be on posted call Our the Investor conference remarks will Relations website after

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

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

certain These our accordance the with presentation substitute GAAP reconciliation non-GAAP financial be available U.S. in for website. prepared Additionally, a this can we'll these Investor press in items performance afternoon's of financial Informatica's found measures not measure measures be non-GAAP are GAAP. and addition and Relations measures. nearest discussing of to in release to financial on A slide

It is my pleasure to turn the call over to Amit.

Amit Walia

joining Victoria. Well, and today. us for afternoon, thank you Good you, thank everyone,

Mike already McLaughlin, and be incredible for be him CFO the leadership excited track I with to years first the team. successful addition begin, about we XX to experience at proven serving like FICO. and his our us new been would team, leadership to I recently has an Informatica as a has Before couldn't join have more the Officer, call a to himself Mike month Financial record, and to financial Mike with Chief earnings extensive of brings us. welcome

So welcome Mike.

will year. highlights the Now, details and then for XXXX. on I'll and the reflection my with observations for QX share I start full-year my for XXXX

reporting a with So company. year as let’s XXXX know begin all as you full public first XXXX. our was

external environment, guidance the ARR, and growth. macro uncertain the witnessed and operating XXXX. full-year income We fourth delivered year our While to of fluctuations quarter against an balanced exceeded non-GAAP Cloud for Subscription commitment with ARR, we

over In operating fact, Cloud ARR shared were we and earnings expectations We our better achieved of the our year-ago $X total ARR total initial to milestones grew for four million, February a annual surpassed durability both billion, results also in and $XXX new $X.X growth resiliency almost ARR non-GAAP and business call. balanced than a highlight cloud to results These subscription billion model. ARR and revenues. XXXX –

GCP, in All platform, the IDMC continued Snowflake, Azure, products cloud and to now partnerships on Oracle, strategic with accelerated cloud Our AWS, we Databricks. are and the bear our accelerated investments fruit.

from many year. received and partners experts course our also over We industry the awards of the

in CIOs, petabytes for outcomes metadata deliver with active analysts, at of platform only the scientists, data all leveraging powered may our in Our our With platform, architecture, transactions and customer strong metadata-aware XX,XXX processed a cloud, the the data management to the cloud AI measurable CLAIRE enterprises scale the December, XX engine, trillion XX% data year-over-year, by usage. cloud per month in I demonstrating need modern capabilities, IDMC increase is CDOs. say engineers, connections, IDMC data market transactions XX mission-critical and

sales plus renewal XX%, enterprise to up gross by enterprise mission-critical brands evidenced margins wins strong global strengthen, XX% as serving workloads. continues rates, Our motion and with

early the innings, we its solid cloud while ended migration year remains momentum. with Lastly, in

with demand. continued a GSI X.X more to resources practices have up customer Informatica and and X.X% last of their We our IDMC, partners scale ratio. provided installed channel maintenance meet from X.X% base migration migrated trained over to to conversion quarter

customers investment share cloud we focus, and to prioritized of Now, turning accelerating highlights and go-to-market. key with cloud product the innovation modern the more stack takes for platform from partnerships to stitching investments data many our and scale at let risky, critical support strategic our versus which together long-term R&D roadmap then Innovation, more as of is solutions continued now IDMC me our build strategic expensive. areas time, priorities Beginning success. the and is definitely choice

the the innovation Some many over amongst here. the highlights of course year are

their we put Developers, IDMC thousands with our productive two INFACore. our Services, of services, function. Development in Environment, AI/ML of single public Data Scientists, into Integration IDMC. announced of and making INFACore of can action extends new directly With minutes capabilities serverless them ModelServe, code to deployment engineers, lines Integrated with Data in Data more models ModelServe a turning AI the In and preview own into recently IDMC one-click, you platform a by

metrics for In opportunities a and introduced usage relationships, real-time with data their XXX we improved our flexibility services, while new end to allow that enrichment and cross-sell MDM consumption our accelerate more customers. Applications managing multi-domain up-sell framework, and detailed modeling tracked customers and data

In Data Catalog uses discovery, Governance we labeling data and of governance understanding, intelligence automate of classification, assets. entity to metadata helping data and which service, improve data our the Cloud categorization and enabled data assets,

and Now our on IDMC. CLAIRE, to a to about power engine, talk all I our that want has AI little scale continued products

in intelligence the been and Now AI potential drive believers of automation. to we have

it, XXXX, In and back have in still we to scale. grown it CLAIRE operational refining been then fact and it growing now launched subsea we way has

work. two and can Health action. examples CLAIRE give One, of action AI advanced of customer using million and in saves An saving Insurance organizing CLAIRE $X monthly you these relate – data, of capabilities. American thousands classify, operational label, datasets, users provider automatically tedious will manual I hours

tasks, pair to quickly. is data programmer, by engineer automates pipeline other And data repetitive like enabling CLAIRE development, automating by and integrate generation more one AI-based and data providing generating Copilot. users GitHub connect improves This data accelerating pipelines: productivity

XX% this daily. More IDMC developers Additionally, is that use recommendations. accurate and more tell it so Cloud more than CLAIRE of intelligent providing utilization, capability us each targeted more becomes with they

cloud in Magic makes Gartner recognized we to Informatica be once Quadrant management, as a to execute is Now XX innovation. for honored consecutive are Data axis. in our XXXX as Informatica data pioneer ability of the Solutions. times to positioned again the This Quality commitment for and a highest being Leader, product is on recognized a Leader

Scored Rating Highest for and in data three Gartner also Management Solutions “Strong” Informatica XXXX Capabilities Product/Services a rating report received use quality the in Quality in Data XXXX Support/Account Critical cases the report. Vendor by in and Gartner Gartner

Innovator won analyst Lastly, XXXX Informatica the from Intellyx. Award industry Digital

customer go-to-market, allowed customers us IDMC transformations our position role towards solutions the the sizes choosing of me let across This to our and where Now all our digital in platform to plays engagement. with all has of to serve enable scaled their best-of-breed very partner important cloud. in position turn data’ platform ‘Switzerland geographies, a

customers in ARR tripled We million more than of QX a the customers number in increased spending more continued year-over-year in more ARR. from $X than than subscription XXX million X,XXX customers. by XX% $X to year-over-year than Momentum subscription $XXX,XXX ARR, in spending increasing subscription to spending XX% customers. more Customers

to a We also than our number closed the XXXX, over year deals in XX modernization cloud of doubling modernization single date. lifetime deals highest more and in ever

us. Customer an for success important is priority

Service experience” service Certified second the XXXX. outstanding Technology & consecutive Informatica J.D. Support customer year, For in Power Program from “an earned has their

with announced its and core. IDMC to the risk an observability mitigation Assurance Service also optimize advance and customer We at platform, experience on

of of partners in our the Year continued grew year-over-year. as ecosystem and partner the with Now marketplace transactions, of acceleration of our Partner We honored proven cloud XX% has the very Global from with Design partner reflected America the year Data XXXX including Analytics successful, XXXX were North awards which two and the year. co-selling AWS,

We data developers. AWS democratize Informatica’s integrations set scientists access IDMC and data personas, data and AWS a services new These also Redshift Loader included of data from integrations native as new expand into announced with Redshift Data and and of access such user directly new to to developers to user the AWS to integration Sagemaker. data providing IDMC a plugin scientists for experience capabilities to

deliver eight QX. Factory deals by with in part We and from of than that the been have We Centers and migration be have significant the Platinum amount More partners XX of saw Partners. our in as cloud work program and GSIs. our Channel to substantial progress Excellence that closed also of a Migration the built work, including a partners will GSIs now increase certified delivered saw

additional expect the faster more our customers. giving We be to to for value partners, scale delivered by us and trained and our certified time

Innovation Kickoff was Partner Year Partner TCS, We of Sales of January. recognized Global of Year a at Year the few of Partner Modernization our held esteemed was partners in the earlier year Growth was Deloitte, Global was Year and Cloud the of Partner Capgemini. Global KPMG, the our this Global

when their which those close. growth position their We with in to also partners Informatica our new source our incentivizes base. to rewards strong program, opportunities of partners doubled Many and saw customer Partner provides continued Channel opportunities in efforts our

new and customers. We continue to existing opportunities win with

BayWa you focused Supplier give cloud-native the developer, global requirements XXX a as energy. emerging keep is Informatica’s renewable energy with new leading me future they IDMC service MDM and to step remain platform supply Facing shaping solutions energy Let chains provider. of distributor, in examples, with they few on a selected r.e. actively

leading is enterprise work. healthcare cloud analytics Permanente existing well plans. partnership that this as of expanded migration America’s nonprofit we them, the support supporting one This as past Kaiser to quarter XXXX, the recognized providers in founded with and one, Another our as health tools

Informatica to data, in Informatica’s locations their and for communities Federated critical drive experience, sustainable profitability, organizational growth. largest A Western a Canada’s looking its XXX selected customer help them modernize the was differentiating better Canada. customer, across retail IDMC provide throughout centrally to they scale X,XXX PowerCenter a business Co-operatives Limited way systems, FCL manage and for enhance insights, platform future. is long-time co-operative

of So good a gives hopefully you in XXXX QX. perspective that

XXXX XX Data to to Data has IDMC as years, AI-powered Marketplace most platform, to management and the turn Informatica to me Cloud. past inception I and now data Catalog many its let Well Management the in Data back categories data Data Intelligent Management to at-scale cloud-native – Data Now from ETL over management pioneered Master comprehensive strategy. Quality step

and customers, of Insights at XXXX delivery I by will cloud market CIOs, all by in to – state report, is the beyond. digital buyers priority data CDOs, annual and a business and transformation trends, be model with spending enabling partners conversations my enabled continue our that and top across data clearly management CDO IT In a Informatica’s led as including globe, look

thoughtful through a planning, are transitioning to So consumption-driven strategy. cloud-only, now we

primary We creation: objectives are looking achieve for three value long-term strategic to

innovation net business our on First, growth in drive continued investments of the we organic foundation will new cloud-only for IDMC. for

call we IDMC faster for As enables the you all and IDMC growing are growing. IPUs, Processing consumption-based cloud pipeline solutions Cloud most cloud-based. of already is that opportunities a NRR self-managed, Informatica new cloud-only. are higher is than Units, interest in of or business. business it continuously as our pricing our offers all know of suite model Customer

Expanding months. pre-purchased IPUs will and on consumed greater later observed current launch the flex and so meet quarter thus which we can IPUs, we our IPUs for This and choice monthly, this model, for usage be XX customer’s have seasonal consumed pre-purchased with that our success additive, IPU enabling is flexibility is to our to customers. patterns

continue opportunities maintenance while will best-in-class existing we from migration rates. customers accelerating Second, renewal cloud maintaining

to consumption-driven importantly, and by cloud-only, is of plan significantly topline growth drive balanced the a managing Lastly, part leverage. strategy well as improving operating most a as multi-year

multi-year to efficiencies the Focusing This us and plan. better focused. and of to speed hybrid new create improve operating us being allows create our enable to simplify on this by operational from our cloud-only, execution will leverage model organization in synergies,

also cloud-focused Our sales XXXX to navigate that as appropriately context uncertain is an while prudent guidance motion. a transitioning environment in macroeconomic we

committed and We cloud-driven in investing a leverage, cloud sustainable business. and innovation delivering balanced durable operating to growth, growth, and creating are product

great Informatica. for And I’d like to all to and support thank customers, shareholders delivering like continued our also for of results. I partners, thank Informaticians their

turn that Mike? to With let call me Mike. over the

Michael McLaughlin

Thank everyone. good afternoon, you, Amit, and

renewals. be XXXX am to Total As member this you my I’ll begin ARR with remarks today. team, for Subscription the of million high year-over-year the of end driven QX billion, ARR prior guidance afternoon reflects versus fourth with the XX.X% in a to our revised new quarter I range, to of new business Informatica review very strong sales at by This of our total and results. $XXX new a net increased year. the pleased $X.XX

negatively our in we expectations exchange approximately by foreign on million year-over-year set our full-year, ARR basis, in with the $XX total a line guidance when For October. impacted

exceeding ARR our guidance $XX Cloud million, October range $XXX the to over million. high-end XX% increased by of year-over-year

year. shift We expected. to to Cloud ARR, but going from our expected prior total compared the to that – continue We net sales happened Subscription cloud mix into year. added during quarter in XX% in represents to Cloud faster now approximately shift new even than self-managed the $XXX ARR of XX% ARR the we million

pleased the has we products QX As are cloud-native and this our results growth Informatica’s segment. our strategy, are clear, in very made core of Amit with

our $XXX XX% new Turning range, customer renewal our to rates, in of Subscription million result both XX% million of high Subscription cloud total high-end to in $X $XXX the of over in a and represents compared ARR, approximately self-managed the net million products. Subscription subscription XX% QX’s the prior We prior year-over-year ARR driven added above versus now ARR ARR growth year. is year. total guidance increase, new by and

a in We is average year-over-year grew fourth our of base basis. ARR an increase to a quarter. on also approximately an ARR saw It active $XXX,XXX, in subscription XX% XXX of customers roughly the on which customers, growth subscription per year-over-year customer Subscription increase X,XXX

our sequentially. our an indicator Beginning net quarter, to we execute we as disclose performance retention net to strategy. X% next consumption-driven rate rate retention Subscription down as intend measure our cloud-only was cloud-only XXX%, QX additional

to in will QX. add fiscal I QX several this While percentage points would Cloud our rate that quarterly was subscription we XXXX, of not until NRR disclosure reporting retention net than higher note our

year-over-year. in strong renewal ARR with $XXX point year-over-year of rate XX%, X% line with finished one maintenance down at expectations, up a Lastly, million, percentage

the maintenance For full-year, a year-over-year on ARR exchange approximately by million foreign negatively basis. impacted $XX

adding each perpetual are we resulted an sales customers decline license intentionally maintenance a reduced a period. maintenance of in This we As subscription has insignificant since have gradual offerings. amount reminder, in favor in naturally not ARR new to

revenues total the was year-over-year, October in our guidance. GAAP line which quarter, million to fourth $XXX with revenue, X% were down Turning in

expectations. exchange total basis, approximately $XX year-over-year Foreign in million negatively by impacted fourth October on line quarter revenues a the with in

total foreign $XX exchange impacted by million the revenues a approximately For full-year, year-over-year on negatively basis.

approximately regarding revenue of QX Subscription represented reminder year our increased our XX% last mix to XX% GAAP subscription of at deal revenue: a $XXX the One life versus self-managed subscriptions million. each revenue to compared to new revenue cloud contract. X% subscriptions, of less year-ago. total the sales we Subscription as ratably revenue recognize signing GAAP the more shifts from time revenue subscription up-front and over of

mix shifts our this quarter. our than cloud in quarters revenue ARR where GAAP growth of lower growth was renewals case sales more this our For sales, reason, to new the is as and

points from Our two a renewal quarterly subscription rate year-ago. up was XX%, percentage

our reflect Our customer nature continued strong mission-critical and rates outstanding renewal software's support.

were XX% category, QX. consulting, make Stand-alone $XXX services representing in of up represented the professional revenue total Maintenance X% revenue at and of this revenue of in-line with revenue. XX% maintenance expectations of total million, total representing revenue. revenues Implementation, and remainder education

was to distribution XX% million, $XXX revenue which total been to X% year, of revenue international international of decline Turning International million, greater in total $XXX rates QX an revenues. year-over-year. exchange revenue last have million geographic Using would the X% revenue approximately in quarter, from U.S. XX% have $XX represented the year-over-year of of XX% grew business QX, down to representing revenues. representing year-over-year our would

IPU As core is of part pricing we have a emphasized, our consumption strategy. based

to of approximately cloud QX IPU-based XX% report were consumption new are that bookings deals. We pleased

represented of IPUs points ARR, QX, five up XX% sequentially. percentage Cloud total As of

pricing a As IPU are and Amit shifting flexible focus we our more new release mentioned, sales on model efforts consumption-based this later we engagements. to will consumption quarter,

to a result, IPU the course adoption continue As expect XXXX. during to of we increase

discuss that otherwise XX%. to non-GAAP was In like would I our metrics. stated. gross QX, margin move results profitability will Please our note on I to Now unless

even a We shifts gross are our percent pleased stable to the have the throughout to cloud. margin maintained XX-plus as mix year,

gross year-over-year. million, XX% Operating XX.X%, operating Adjusted five guidance income EBITDA net the high-end was margin percentage and the for $XXX point and income and expenses. our Operating $XXX to was XX% October range due quarter, of increase was million, a better-than-expected was respectively. million $XX reduced a margins increase approximately exceeding year-over-year,

expectations into diluted diluted $X.XX we these guidance. $XX QX slightly the based exchange count free guidance going million to commissions per have quarter. items, This outstanding expected working shares. not a free approximately exceeded near we midpoint if for share was below though even cash foreign impact was income flow cash We related income million, was on factors. was The flow, share approximately approximately and taxes, primarily capital on Net than non-GAAP higher million the XXX of our greater-than-expected delivered operating unlevered cash certain unlevered XXX cash higher would basic shares. range after-tax,

We months was EBITDA ended of position the in This investments strong resulted X.Xx. fourth quarter cash in plus twelve of million. $X.XX $XXX a Net our trailing with $XXX short-term ratio million. cash and of was a billion, net leverage adjusted debt

approximately X.Xx end naturally to We expect the business the by of end XXXX to by of then Xx to approximately the and de-lever XXXX.

to I some you context give think this let as year. me XXXX, about regarding turn Now, how guidance we for

First, and guidance. our a somewhat given is model. uncertain environment revenue to our and continued a be in We the topline few transition feel comments consumption-driven with to cloud-only, ARR about cautious prudent XXXX, expectations sales it macro our

what today, can From up opportunities. more products. healthy business And industry-leading for than the we cloud overall new three-quarters our demand generally is cloud appears our but restrained, environment of see of made pipeline

have but However, headwinds other getting face and and our noted, line: is feel cycles Bottom companies pipeline many done, also we as year. expect during it more deal are budget deals to tech some prudent the is elongated scrutiny. strong, deals are

long-term benefits We a our in growth and model have cloud-only believe on focus terms will tremendous profitability. of

new in moving strategy, a going This are long-term our net laser a result Informatica. will most value to consequence the self-managed forward in business model cloud-only Our of XXXX. create focus on in decisively will is that a we crisply and decline new and cloud likely ARR direct convinced for

exchange assume the on year ARR for forecasting FX material planning and results. guidance. impact Full-year When rates the our business, which revenue with based the we constant One respect the rates considerable our XXXX at foreign a start of on our period. more had note volatility, to saw

the on in purposes, and for reference impact a XXXX. ARR included table our release For we revenue press have expectations earnings in FX with

The XXXX growth point regarding guidance profitability. second to I emphasize on our would balanced and is our like focus

go-to-market, streamline of cloud-only, strategy the One the to product efforts consumption-driven our customer of development ability our benefits and is significantly. support,

model in year reflected The to to beyond, margin expect improved of income cloud-only seen operating our full-year non-GAAP operating the unlevered are of As and a the free operating we cash business. more to expect leverage XXXX begin to efficiencies consumption be in us this continue in XX% and guidance. XXXX, long-term improved result, we and income targets leverage meeting path on revenues. Furthermore, our non-GAAP of in flow operating this XX% the total will keeping

As related you structure cost charges know, to our million savings in into to in announced which $XX strategy. month FYXXXX, for employee we expect non-recurring cash better we to and payments, primarily force benefits. last of employee We with approximately transition, to our million approximately reduction cost estimate We $XX these the a benefit align have with million achieve to efficiencies in estimate new we of our QX, $XX expenditures period guidance. notice this and severance actions be factored

our let Third, and expect continue for to discuss rate XXXX that for we reported non-GAAP XXXX. tax tax fiscal at rates. We expectations a and P&L XX% me finally, of non-GAAP income net rate

rate foreign not fiscal higher non-GAAP higher to approximately that and credit where of of XXXX. taxes on higher are a be and at tax U.S. taxable expect and structure taxes than activity. long-term will geographic our lower an and refund U.S. recur $XX tax beyond, operational million federal expect Cash in based due to distribution which in income, XXXX in XXXX taxes our XX%, on million tax XXXX utilization, in XXXX $XX by cash settle we expected reflects eventually Looking to we steady-state

the ending to the that Taking the for all full-year range, establishing into XXXX. refer guidance are rates account, following December all of the mid-point applicable. guidance XX, growth this Note we where

billion, GAAP growth. total X% revenues representing $X.XX year-over-year We of range the be in expect to billion $X.XX to approximately

In was of recognition. assumptions, on-prem ASC net XX% significant business additional to carried in in net by mix driven the further, about XX% ARR self-managed software new GAAP increase XXXX, can cloud upfront approximately cloud our had into forecast In impact mix XXXX, revenue. less the our XXXX XX% on XX% of portion we self-managed. As cloud on-premise guidance reported mentioned versus new in revenues, resulting we If and $XX would our we and forecast mix the cloud on-premise the have a above, accounting the have FYXXXX of million mix revenue period. XXX GAAP same subscription

to expect ARR the growth. We approximately representing $X.XXX to in total X% be range billion $X.XXX of year-over-year billion,

to billion ARR of the billion, XX% growth. Subscription approximately $X.XXX representing in year-over-year expect to We be range $X.XXX

Cloud representing million, in of range $XXX million XX% expect We the to approximately be to year-over-year ARR growth. $XXX

net discussed which our guidance I our reduction calls for As a consequence self-managed ARR in a in FYXXXX, a ago, of minutes direct cloud-only few is strategy.

to be operating non-GAAP to approximately in million, XX% approximately the representing unlevered year-over-year $XXX And million growth. to the flow $XXX range income growth. range in We to we XX% year-over-year of cash $XXX million million, be representing free expect $XXX after-tax expect of

total Our follows, representing expect a revenues to million $XXX million, $XXX guidance XXXX, GAAP for be is year-over-year we X% decrease. quarter approximately XX, the to first March ending as

We representing range ARR XX% growth. in $X.XXX $X.XXX year-over-year of approximately billion, be Subscription to to expect billion the

expect XX% X% be representing million expect non-GAAP Cloud year-over-year range million in to be growth. to $XX $XXX decrease. the we a range operating representing to approximately ARR million, We And income in approximately of year-over-year of $XXX $XX the million, to

to For unlevered the million. million flow modeling expect XXXX, first of cash the purposes, of $XX free range quarter in $XX be we for to after-tax

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

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

how up a I these like fiscal Informatica, I a our month, opportunity year board in and thrilled XXXX opportunities a be short partner had to pivotal about to of weeks, see ahead of have I’d I on quality and and our the been am installed capabilities. but I our about the for to team. am expect the to the and only closing, part opportunity Informatica. unmatched I’ve to excited the the for Before products, share close four go-to-market for direct of base have cloud be brand, strength

you Operator, line questions. open now for can the

Operator

[Operator Deutsche of proceed. from the line first Instructions] Bank. The Zelnick question of Please comes Brad

Brad Zelnick

working Hello, Thank you. Mike. Great. you Amit, you, much. and to Maybe all for with Mike, to start. question very a We welcome forward look

You've come from you you? perhaps, a about to that hoping and successful any low-hanging change see really Informatica, that over talk specifically can what you And company and in you philosophy was the attracted here? fruit I with you bring

Michael McLaughlin

with Hi, to move, attracted Brad. more a customers of that's and company for to product product happy base their that cloud Informatica better. product, very the billion with installed that's is clear Well, segment-only product truly emerge. leader the existing company question. the capability in the or they and capabilities the on Thanks billion data mid-teens to And have the the TAM get $XX are set buy willing was delivered It's in who to leading loyal a Informatica the in I growing And needs $XX to then space as know the and as started a months go-to-market platform, I the tremendous serves. of emerging a my by unmatched. sector more and anxious has really capabilities

engine is that indirect and through and tremendous. and VARs providers partner really a force is very go-to-market capable the sales, integrators, global leads direct go systems experienced sales cloud to which The service

leverage that going it this in it. operating R&D, have we – there growth. the that what to go-to-market leverage, business expectations that all is as the – going to with efficiency more grow in, of I've of if out consumption-driven highly focused as And scale of balanced And grows get continue cloud-only, the with in been with lot I it's as compare where is to an out simplified, to operating turns have a what that combine at to most a what and business that I'm I strategy. profitability You in try is exceeded deliver coming operating to found we been terms find expected model fact,

attracted So delivering way the profitability I'm I've me good been to as been have really of that grow. be a about model surprised pleasantly increased I all its here company potential the what that now happy we frankly, confirm the and and financial for things in found to to

Brad Zelnick

Mike, that's All for cloud results IDMC. speaks maybe Amit, you really to the results But time cloud just ARR the commentary follow-up and migrations look the are of great We for at and Thank cloud really taking migration quarter. industry, to the to we hear. look hear one encouraging we if explain see to value materially. that. they've workload we at what can CSPs, if that slowing overall the just across from last been the Amazon's you.

of we're else So you're other across you than apps, anything the that Thanks. there? workloads reconciling there use types with high-value think more would broadly case AI-related what that different in seeing out feeding is share us to about just in

Amit Walia

Brad. question, Great

stack And are But really AI just digital that pretty every is transformation of about the we much best-of-breed CLAIRE obviously, in, think intelligence, about each what the part where look the if from stack are, a stack not obviously I'm to talk look of talked which automation. to the ARR of, net the differently. capabilities new if the I workloads, benefiting part feeding a growth, looks And obviously, our two data you was going customers I majority cloud platform. is comes not data things, from you not we So only but at at second. is kind of And transformation. be migration. for are great, now

talk the all that they getting it the but can technology, things reducing simplify a leverage that So the to productivity, when them. are platform having Those bring at that best platform. can feeding into things risk I that not and only customers for managing are them, all price on

handy. other comes everybody. partner we look, Switzerland the is really one And of that, data with

CSP best-of-breed So one one all go whether of but we or to the glue and are another to data provider, customers choose want them. they only that can

that of and a to lot nice look, we more said has that – far. All clearly, of behind things you to all what last doing hard create to velocity very snowball effect. curve the those Migrations, saw from scenes than work We X.X, of I've the we're of gradient expect as seen higher a now happen. create have a increase two-point something so a one went year,

the departments. of ones deal want through that this training course the drive done over basically implementation all bear continue the and expect of add to are the I through. year. to You've discovery to work They also hard fruit fully who

saw in down, said, going everything I migration. As was very what we promising QX, while

velocity to So before. that expect increase get is gradient an the and area better I continued do than that

Brad Zelnick

Awesome. for my taking Thanks much guys. so questions

Operator

Instructions] Thank RBC. Matt Hedberg question Please proceed. you. from [Operator The comes next of

Matthew Hedberg

taking my Mike. as question you offer I'd well, for Thanks my guys. congrats Great. to

Looking forward comments to following Amit, with working you. the to on question. last your up

you cloud. this converting I focus cloud was a about guess, this on how I As be year, along to – And how talk, could I be overall does sales year? if maintenance mentioned like you strategy. reps stepped more really guess And go-to-market your wondering there incentivized on go could up will they I'm wondering you that

maybe double-click you Just that well. could you on want if as

Amit Walia

case in were were for Look, again, majority cloud. multiplier here, teams a reps for pivoted They have but all What new [indiscernible]. we've is our last business, and our as a had keep just higher we we over that we with than world, countries were second net self-managed, cloud world, shared things towards selling migration both. I'll hybrid chasing done of product two hybrid a use So hybrid and year our overall.

still the certain percentage and parts than a that much, have. of smaller but the the like because certain that's overall after cloud. those that's has that self-managed Sure, new we cloud they part carry of much there U.S. the [indiscernible] over kept they sector and is the much, world public teams going compensated areas quota some has are appropriately, business we of inhibitor that's So

So It's in pretty platform. teams – cloud and products our the so much are and confused and that running self-manage They're been on they're our and not of pick scale both a just similarly at customer. on and all forth. front They're cloud cloud same are so now our choose. putting

the only thing just very That that and you similar you operational about. So very run or we creates that's efficiency have. talked cloud focus cloud clear, com, simplicity focus, and and code

they we lot with of customers the the will majority which the but customers, and a driving continues last hard grow, may very our will customers saw. are migrations migrations migrations, is net workload I migration us through going are fruit workloads scenes naturally that. much sticky business, behind that, potential grow bigger IDMC, business still I and can to with our business. migration a just get ramping we running when will more least the we later that the business of on yes, new really settle look, said, focused the growth. any the Matt, at say capture to IDMC, because to that velocity new on I of And saying, want look course I'm and partners work keep are platform, give new the not put impressed we they be as didn't workloads. we say it you’ve we've part on become but said to the the did to workload. a over of more on is, who on We make it's fully We and year expect the sure but migration get for

Operator

Wolfe comes Zukin Thank Please line you. The question the of from proceed. next Alex of Research.

Unidentified Analyst

Thank migration the kind any there about appreciate the Is how that I the for ARR full net macro This just you overall, of And to is activity question. guide. migration environment, giving guide in what's on activity Alan about taking continue Alex Zukin. side? both that's for seeing the color basically growth. new maybe growth such again, you're for implying within the way of going Thanks. you're fiscal and to cloud – [indiscernible] kind thinking it that confidence you quantify the that come on to this how of XXXX that's thinking robust high-teens on amount cloud

Amit Walia

the coming demonstrated cases of single better all all has having – globe, that, I our at to about which got transform data data or to some our saw which we that. a headwinds through is management we IDMC, use not lens macro management. QX all, democratize way out that of at So there, customer is only and conversations to data I've it talked point and business that's even as do what every to my in or covenants the the we of remains of through understanding still a first through platform, get them services. look, customers continue What that, that and as out customer has of I the see said, having I’ll Customers healthy. necessarily supplier across are transformation the digital hey, environment, of pipeline talked efforts run are creation I hundreds my know

cycles gives of the to to lens all health the of the continue the pipeline remain deal elongated, help use comfort is on cloud. see but going everything cases We us of

and that of So pivoting we've basically – that are last all through cloud-only year lens, we talking the that about mode. hence, been towards basically

on For maintenance all base. net base, up giving new, our renewal we're not

them continue workloads. On comes customers, have We to our course migration, best-in-class over and time, service rates XX% the business renewal new cloud. plus those from to great we migrate of and of much pretty

So about I we our feel as where of times, scale said will Migration good growth come more, new going many we're but continue and from workloads continue we to from come pretty scale migrations. an area, majority has our to to that. is

Operator

question Please Thank you. Kash of from The Rangan next Sachs. proceed. Goldman comes

Kasthuri Rangan

implementation of January. move and you propensity transition, working you. you the of Hi. back end then respect Mike, the the or forward month way customer new product hear be have and to is as timing very why what of have of functionality cloud you at business any should new and by different? step quarter look the I risk the And in how the with to Curious to the quarter to new tone Thank respect you the of deals the Glad details of here, much. change Amit. with upon of close things expand if the saw can net activity intent And services, or implementation the with how that to forward look you professional cloud, Congratulations. incrementally with the

Michael McLaughlin

Thanks, Kash.

Amit Walia

Yes, Kash.

at the XX% in way, this Kash, So XXXX growth of net new was ARR look cloud.

towards cloud has the the been pace So XXXX. a in with significant of course momentum shifting

actually that on in cloud if in and change put – year. I borne roadmap we earnings focus year-ago, go call, that course the did more a – cloud partnerships. In fruit fact, the that this over we of fact, February my literally, a of We, bunch has back

So momentum is towards cloud.

Our products have scaled up on that platform.

pretty They on-prem a We to wants to Pretty the them efforts want much the I've customer do cloud-centric. new as wants not cloud. innovative who go have many to go help digital and to us much everybody all anymore. will cloud. are seen transformation a features to

you So net see new the can business growth.

yet. great Now in see material see change and tailwinds, any don't don't look, the QX had a we macro – we

So we are were in how thinking we year. about this prudent

to You we what guide heard my year. this saw

we of a being of for over it guide lot gave year, be ARR while – were full-year. cloud And the on more obviously XX% hence, we could last ARR we about quickly. get where the course given cloud of So grew we what the for and a growth. very thoughtful is, as lot implementation, have not the does customers We you complexity good can Kash, cloud business old feel the cloud know, going also, cloud on-prem

drive Our very value business success is to quickly. technical customer and model

compressed. has So the that time been cycle value to

some AI. customers productivity and like quick about talked I increases through value, So get

them that gets customers cloud So on what from excited up pick in of workloads. cloud even world the more and that's to benefit

Operator

next of Koji America. The of question Bank Please proceed. from you. Thank Ikeda comes

Amit Walia

Koji, if you're speaking, you may be on mute.

Koji Ikeda

hear you Can that. okay? about me Sorry

Amit Walia

go you now, ahead. Can hear

Koji Ikeda

does how visibility? any thinking model? model? taking perspective, pricing from Any should pricing be ask this asking we revenue Amit, rec with changes considerations questions. a be we maybe also on your IPU Mike. should create about question for? Okay, Flex the And And about this new rev it thinking the a Thanks, guys. wanted for hey, push-pull were thank guess something customers you was IPU. Hey, you. Flex to Thanks I I

Amit Walia

view, So Koji, been demand of stellar from IPUs have in a fact, success. point the

consume Mike are XX% mentioned also our cloud we customers customers And is traction. on of who see many of IPUs call, want different think, talk new that bookings I IPU great new customers we are The in in to and that IPU. what love. vein, bookings – the IPU-based, ways to simplicity

not our IPU go-to-market It thing customers to is material does changes else additive but we what in Flex with nothing us. running more So any an transact to models. have flexibility to give are

consumers remember, to customers customers and given Again, want basically use. IPUs, our know, adopt. more to if for renewal platform. They we and consume become we more life give of They flexibility rates, more our

and want of course, want want use One IPUs spirit. been IPUs. use cases but that things. in different for Flex seasonal may case, small And we we've customers it's use then a different hearing So on, they case also regular they

which across about business those units. we in the pretty managing serve this, it's many a managing feel So in in sometimes enterprise we It's good and enterprise way we an it. thought about large

we'll think how see the goes I year that. with

Michael McLaughlin

existing to lot that. super a in to simplify difference from think basically And IPUs the just there's Koji, to add an IPU, a the from Flex But To financial model standpoint, it. monthly user Customers versus can buying opposed lose use any as year a to bucket the monthly yearly yearly during a a that it. as it are bucket time they bucket. of

more model. ratable recognition. reason, in you the to the otherwise introduce see continues fully that than be volatility and revenue any usage It For doesn't it doesn't change IP-based would

Operator

Pinjalim you. Please JPMorgan. of from The Bora Thank proceed. next question comes

Noah Herman

for on would just of maybe for you Thanks Noah questions. taking some Hey, ARR in around be just assumptions? incremental on assumptions guidance? guys. This included helpful Thanks. macro the any is Pinjalim. the And Can Herman our commentary to provide those other

Amit Walia

guidance. very I lot from has the today. date I that a There can think still whatever can and – is add fully give a Mike XX the to the are changed special. to macro And not is said see clearly. December – I headwinds. We think where we macro are Look, there

good, customers been Deal about thoughtful thoughtful cycles we've and thoughtful, they still I think but pretty are are I think I So be we are in being remain careful about just remains our remain environment, that. careful. an to very create have elongated.

So guidance. with one that, we to lens our basically put

is in from of you clear model. we where growing. we the part go. heard the very – is, are Second the That's That's us, to business we wanted cloud-only

We working towards it. have been hard

upsell, there opportunities. higher model long-term focused I'd growth have We has model the a for some had here team right okay to. NRR, on rather and the the give of long-term very leverage the we cloud cross-sell, higher if model, the side higher which up self-managed operational right very to are on and absolutely deals tailwinds a all driving sake to focus,

So to could the things that we so on that Mike then think of those about more year have like. it. are the what And we guidance add we our do in I'll be thought all terms took to as how

Michael McLaughlin

of bit Maybe various around can Sure. color little components. give I a the

you self-managed is efforts consequence ARR forecast quarters. over the in in go-to-market seen supported that We for X% that's the our that that And the rate a dividends terms and renewal the of and to that's QX subscription all in starting that's rate XXXX. you've we in of or environment recur was or pay again, the really direct to has a XX% it I to That's our renewal opportunity. material the renewal so a time. with guide rate product focus quarters and down our of Self-managed not products new expecting less outstanding a think expect Maintenance full-year. we've that We're couple products, very was renewal the that's a at on over midpoint that that's XXXX, in well game, XX% our of planning of we consistent and then with on through And of the past. same a cloud as XX. I strategy all to talked a guidance. our cloud-only saw the expect We're number growth year. with hope maintenance is QX, we said, all last XX% more more about our rate been even of as that seen in we consistent in helps. and by think So cloud enhancements we reflects be that and ARR, appropriately pipeline,

Operator

Andrew comes question of from Nowinski proceed. Wells Fargo. of the next line The Please

Andrew Nowinski

guess, XX% the on why a wondering the customer but if customers beat then Great. I cloud, Thanks. cloud. Thank wondering clarifications. appreciate when year-over-year revenue And expect uplift just convert the there? few I'm and that's maintenance you you. on in but know – estimates, converts there's really If ARR Congrats, revenue marketing operating same sales if the in to missing have, was if abnormal I something self-managed I'm QX? to a down income, Mike, Informatica. joining there's uplift I a I despite

Michael McLaughlin

security start Informatica cloud. with self-managed So bug all ARR is absolutely to of a to do sort infrastructure. cloud, takes from conversion self-managed the fixes of me and There because the the the owning impact let responsibility patching, an and for We uplift and when stuff. from you move running all monitoring that

existing a solution. a to the it there's cloud buying a multiple more cases, on-prem that, they're increase. upon their the of capabilities And or customer impact for total versus not capabilities is That they're a lot the there's ARR value depends record of the only terms conversions converting because ARR delivered versus to the platform in and solution what the but often the lot as same statistically it more yes, predictable So to as is an self-managed we in advanced consistent use case uplift. that because there net of of solution, for stuff is maintenance and

sorry, in – a subscription net in self-managed you'd but decrease and the ARR existing increase over increase in on the a see would an you cloud, basis, Now see base. only

executive then deal closed. for less capitalized P&L for to for different years. the year-over-year expense the commissions, in the of question, and in sales I apologize. in The reduction the amount those exceedance segment, in self-managed in those ratably period five for the capitalize but we I expense and the ways of the we end P&L sales cloud two-part marketing hitting was expectations was of the exceedance that based the was the purposes guidance over commissions That mix a to which Sorry, more up when and answer deal, commissions sales cloud our pay neglected versus operator, upon versus of or part. we cloud is The same second how and impact our commissions and GAAP, QX account the

in the less so expense we see And period.

the So reason for the that was the reason – primary that was difference.

Operator

of Havemeyer question The from line next Macquarie. Fred you. Thank comes of proceed. the Please

Frederick Havemeyer

taking cloud I'd welcome, like so I'd with Amit Hey. and you I the the you. ecosystem, to look forward say, to with also ask here. for Mike, broader for working Thank question. perhaps

and with cloud with you're backdrop of of focus cetera, like of would Databricks, sales, in some cloud-first just the BigQuery data going ARR? plays and integration how into cloud? all your amount describe this had the you data how the with Just recent overall the you that for perhaps, and strategic demand partnerships offering and Snowflake, the of et launches some connector of cloud-only on And

Amit Walia

Yes.

cloud. said, if I the market the much all look of that with pretty as at think demand, look, are – work I big you partners

in You the new growth look have at cloud. demand, cloud. Pretty we ARR digital of all that the transformation the that's happening much

can year, and work in and accelerate we cloud. So done of to fulfill so the we the more of cloud more our can you of been – in context we could the And the of has we've see year roadmap, the fulfill more more demand all demand. over course the the

platform demand whole The there is ready. in Our is cloud.

to So year, all fulfill as cloud. going this demand we walk this we're pretty into much that

are may some some where want still areas public the barring basically That's some they a sector asking to be not geographies us, necessarily or customers That's I they're exceptions That's cloud pipeline like could As going because said, parkland how be smaller to self-managed U.S. side. demand is what case delicately is some of going that's what are we the But fulfill created. ready it. do. much to component. the and

Operator

Thank from Securities. of Ma the you. proceed. Guggenheim of next Please The comes line Howard question

Howard Ma

question Amit. you. for a I thank have Hi,

order, do instance, were solutions I IDMC incremental believe MDM. on year? become If multi-tenant, to the maybe to this for you it's forced do drive and fully to most right? the products product which So rank So expect a last was growth MDM you

keep IDMC how were for how Thank the products are customers CDGC. this model, customers positioned maybe to thinking is, consuming use were certain And XXX also with expansion part better cases. your them? Maybe you. consuming relative We specifically the cloud-only to second relative – self-managed

Amit Walia

kids. my don't question. That's Howard, a choose make harsh me

a I customer, the you repeat I’ll of at implementing said, make MDM, quality that So need They of that. when that beauty times need to use a is bring project, core we like and from Look, it. implement front-end that's project example the said ever becomes look MDMs places. right? take sure but hosting, MDM But customer many goes the make that talk application. to basically to way led. never and data the to which an that's data platform. MDM I'll I've there this much customer right ETL are need a into the we I they So said experience basically, they pick the cases, through think pretty They the of Because operational many and that data many that decision. quality

other they be after to use on to And some want by governance but MDM some analytically from the that, also way, if operational to that data to their we an what-if case, put people want get top. do analysis,

basically a many of context in case, quickly very use the So we case, talk when one we with a it morphs begin to may use using capabilities. but into customer

governance platform even MDM analytics has the case, quality gets with used it So used. been ETL, be what project another In may be whole an where Snowflake, could led.

the the we why we it other, look So look case. one at product that's over serve always at never use

way all with way, make it a have capabilities. easy best the customer to the very it to risk-efficient We for most in cost-efficient do the capabilities

Operator

next Thank proceed. comes of question Securities. from Seyrafi you. Shebly Please The FBN

Shebly Seyrafi

Thank very much. you Yes.

negative So in to from positive QX, your X% international QX. declined revenue growth X% in ex-FX

have of was can talk just reduction And Thank you much announced X% versus some geographic headcount trends the seeing. about you. domestic? that about how you're talk international Just the also you in January, of

Amit Walia

a as make mix. right out things the are Look, our But where pretty wanted things we Yes. well when Look, had business. that down I globe. whatever. think we – across headcount, that sure cloud-only disclose of us it the to spread, was course, relatively slowing we and don't we take pretty the our we didn't we or layers It from duplicative to distributed was reduced

or presence. Europe or have we honest, it's be a the where India, large pretty whether Americas to So

So pretty distributed. is it

look, necessarily area weaker exposure In than seen Russia one much demand, that before. other much in We we we've said in is have that way than terms one the anything haven't in particular the or stronger did area any area of as to that other. not

lot have So impact didn't China. don't of that whole to really us exposure a We much.

one, the world, don't the think have large very We that impact whole kind is lot right, all the are a stuff hitting there. of of economies. we inflation them of headwinds. facing pretty much over a So of economies all serve and all It's of unique the I large and same

healthy seeing distributed we're And because So of other, we workloads market when evenly. in and some all we into serving any quite mission-critical them more of serve stuff. grade they well we very the say, of were are pipe crypto kind did went never up across let's never verticals, also with, all or that workloads,

kind we headwinds, markets. big well pretty So tailwinds of balanced, see same across kind our of a same

Michael McLaughlin

international is the only to year. is quarter our just a of remind And Shelby, only business, and about you, one-third of XX%

necessarily to doesn't number a that frankly be to that trend. smaller just get variability is subject you represent So quarter-to-quarter a

how international. I to think that's interpret QX

Operator

from next The comes Thank Please Scotiabank. with proceed. Patrick Colville you. question

Patrick Colville

as in Could I I development strategy? more changed business. a much just color strategy? into dollars exactly bit for have mean product cloud-only the result the sales strategy, And of how Just question. result like mean Hey, thank changed my on cloud-only you kind a cloud-only practice? the will to does what So cloud-only double-click of of taking compensation so as as I this guess, the see a translate

Amit Walia

quickly. public not much, model. In cloud of context, a that code new I have of said, I with very, organic and once here to nature our large account of things we changed. for have growth, move U.S. keep to sector moved has again, and our the saying also pretty as all that exceptions, Absolutely. few leading there, barring do we cloud cloud-only it Cloud-only a regions Yes, that all most very and are will

has have They on Pretty our one our entire cloud, basically giving finished cloud. product they Same confusion cloud. any simple. to development there's and are more they sell only only cloud, much everything get compensation to the but We other. with cloud We've so choose to pivoted cloud. necessarily over there. the They way so They're there, putting cloud. do over code at reps not lead entire only

platform of context our of the cloud, innovation all IDMC, So in majority coming is there. the over

they Now the what it workloads is us. customers very, run a set of not? on who products We very, use mission-critical very great on have

over rates renewal of – course haven't our the didn't budged seen time. You've ever

are In because go rates we renew fact, area. year, any very, fully have to it slightly very tough our and done, self-managed. they that basically see well to back make increased and thought like to going do sure we last it get workloads a didn't those all keep we movement how for We helping in know thing the maintenance, manage Same we customers is fixes. down macro we may and went in

customers area said, to to of team area course, a And migrate support cloud, going that's now of we remain early continues one that renewal a come that the to have that of dilution we to is from the from want view. between where point thing to rate cloud, with the what We in net primarily help and all fund. all sure business But increase want we other. focused an or it's innings, healthy are we're that new cloud-only stuff very I velocity no basically while make to and the of clear, the and energy

Operator

The proceed. comes UBS. of line Keirstead question next the you. of Please Karl Thank from

Karl Keirstead

full-year. revenue the rate the Thanks to could Mike. negative the QX, you've so Obviously, this talk direct we but to one If trajectory positive five much. XXXX. guided growth just for Maybe in I'll calendar throughout of about

meaningful pretty the growth are So half. in anticipating a you clearly acceleration second

little turns there's spending might Some compares. something model Or unpack mostly a mechanical. FX taking optimistic to Is your the bit love it? bit. if more in easier more appreciate just a half, that Or little second that's way, environment of nuanced it. be the if you're a of that? resulting in that that in Much the I'd view

Michael McLaughlin

of what first year or in We we has different question, in down that start many slope for revenue company in like the I'll the typically a of the mixed planning shifts, of the Nothing fourth with that the model is slowest And more unpack and which we're seen changed to quarter, reminder from acceleration ourselves my there's ASC It's one-third Karl. XXXX. the fiscal to XXX that closed the from said, is past years. we've from linearity being the in really what because one. a But a Thanks the the for guess Yes. forth. answer business see of because expect mix kind business year. the in I good of software hard linear our so in quarter-to-quarter quarter quarter, and is

impact there's there's to quarter, yes, first yes, FX in an change And some that. the mix respect that. in With

If back first you at in year last rates FX of versus year. part the this look

While they've favor, in than little in was still dollars bit back July, January. i.e., our stronger a come the it in it June, little it's was than weaker

delivering those make the is structural year. ARR differently about goes and best growth and what should our that nothing we're you which effects think the as each seasonality really to and way it's each in business and quarter actually look two ARR year on, at and linearity So

Operator

next proceed. Please line comes the with Citi. of Tyler from The question Radke

Tyler Radke

you your the and question that to aboard, you wanted Michael. appreciate hearing about kind the it I on and welcome of reasons for direct opportunities. Thanks question joined the why Informatica

that that amount faster efficiency restructuring, wondering I opportunities coming expand do And that long-term you. FYXXXX. that identified low-hanging could Obviously, for think if probably on Just that lot there the just could you of timeframe of A was margin accelerate you're the areas to, about talked is are you fruit a reaching about the Informatica's company targets? than Thank expansion that. the what specific as pretty but in path healthy of you to from think maybe had how you've you to terms targeted? guiding

Michael McLaughlin

three strategy, innovation in we're as achievable be and It's but long-term to more revenue. going going I'm one-third the with won't question, cloud-only Yes. and date one improvement want to Tyler. volunteer specific but of a reasonable percentage keep XXXX could be simplified keep frankly, the Thanks efficient. it's on R&D we coming, to targets. quarters, more to opportunities, as nearer we sorry, for at margin long-term. the roughly We a want to products. They the a more do in to more it's percent expansion to in you two-thirds, and I of less operating quarter. the with respect With the margin put about not going less R&D. marketing me anything leverage feel that. We not can the literally, Maybe look investing over But term guiding sales to XXXX, of dollars, revenue than operating X.X be percent that points specific versus if

Sales focus and marketing more focus sales the described. we the way in the even compensation that and as improves than Amit that force

probably a efficiency improvement so, of the is And this of be XX% and marketing to as sales again, year percent going revenue. in

between to efficiency we of is right the medium waiting long-term scale as probably where the that's to the that, a and of sort is leverage. beyond going two come about recognized from over Looking in terms

Some revenue. will come from grow at than slower G&A we absolutely G&A, of course, grow too. We'll rate a

I'm margin operating confident But that operating long So overall, achieved will deliver time. good can continue there. for be to that year-over-year some be improvement will leverage a there we

Operator

final question of Suisse. line Credit comes the from And proceed. Fred you. Lee Thank of Please the

Frederick Lee

maintenance, I Mike. cloud Hey, – for was the squeezing me install Thanks more the company is expect less in. an progress internal Amit or for expectation for accelerate X% you. maintenance? And base. we wondering, Thank can cloud you're from cloud to the and plans migrations inflection? linear migration Considering than how to

Amit Walia

to and things implementations insurance you one power that companies as running sector. – some migrations I you their It's books I think two about because existing with basically, mission-critical customers are are has Look, have think remember on said, question. workloads our always on-prem you a thoughtful the that closing as be great to as

side the to them take other you the things. committed are the there as to the thoughtful are other very sure be increasing many runs way. to and have make same migrations, velocity business of just you We So think absolutely I and

had it so and the So enabled. wanted the of we that to being that out to partners them partners we give partners. playbook is trained scale can and our are We prove one to

good the It's all and that us. make to get opportunity do to the year. are are the customer a great spent I’m this very That's of things a in as course team over So not on. value-creating we you us we that we focused and of energy with as the about exit go along other We'll feeling that's one great for opportunity, last are by share as and lost they things that and area year value we lot right it want a QX. happen There Informatica.

Operator

would pass to That team remarks. closing you. question-and-answer. management to like for I our concludes the Thank of now conference time the over

Amit Walia

all, operator. you, much thank first Thank the time Well, you look, of today. taking very for

I a talk and Obviously, I'm the As consumption-driven again. question know chance strategy. over excited know will of Mike get the of about cloud-only you them to better. course get him very lots welcome that I to time to

the up us sets to it to to the of be the final think be cloud-only I and company chapter company candid.

unique having are before. to ways model business done We some eight in transition

One I It's the connected. took talk now we I'm opportunity, the over you, conference excited Informatica the over a forward going this given installed of of May. year. more by leverage run sessions be get to in But going look most to user the again. again base, course customers. It's or innovation lot successfully migration last having forward of you of about to see and centricity cloud World – in the have. innovation to you you to again Obviously, World. I'd there earlier seeing our Thank zero, our model, Informatica annual customers, and how customer to see we she to you year. likely are sharing our almost that, out the majority year the is, movement which Reach this come to invite very and can Victoria, we and Vegas to look all where to down you and I and customers. license are once to You

Operator

call. concludes your conference That Thank participation. you the for

now You may disconnect your lines.

Informatica (INFA) 8 Feb 232022 Q4 Earnings call transcript