Informatica Inc. reported its financial results for the three and nine months ended September 30, 2024, showing a mixed performance compared to the previous fiscal period. Total revenues for Q3 2024 reached $422.5 million, a 3% increase from $408.6 million in Q3 2023. For the nine months ended September 30, 2024, total revenues were $1.211 billion, up 5% from $1.150 billion in the same period last year. Subscription revenue, a key growth area, rose to $287.9 million in Q3 2024, a 10% increase from $261.8 million in Q3 2023, and totaled $804.2 million for the nine months, compared to $703.3 million in 2023.

Despite the revenue growth, Informatica reported a net loss of $13.985 million for Q3 2024, a significant decline from a net income of $79.3 million in Q3 2023. For the nine-month period, the company recorded a net income of $177,000, a stark contrast to a net loss of $189.5 million in the same period last year. The gross profit for Q3 2024 was $340.9 million, up from $324.7 million in Q3 2023, indicating improved operational efficiency.

Informatica's cash and cash equivalents increased to $932.6 million as of September 30, 2024, from $732.4 million at the end of 2023. The company also reported total current assets of $1.841 billion, up from $1.753 billion at the end of 2023. However, total current liabilities decreased to $847.1 million from $1.053 billion, reflecting improved liquidity.

Strategically, Informatica has been undergoing significant restructuring, including a workforce reduction plan announced on November 1, 2023, affecting approximately 500 employees, or 10% of its global workforce. This follows a previous reduction of about 450 employees in January 2023. The company incurred restructuring expenses of $6.8 million related to this plan for the nine months ended September 30, 2024.

Informatica's focus on cloud subscription services is evident, with cloud subscription revenue for Q3 2024 reaching $175.8 million, a 37% increase from $128.6 million in Q3 2023. The company is transitioning from a perpetual license model to a cloud-based subscription model, which is expected to dominate its revenue streams moving forward.

The company also announced a new share repurchase authorization of up to $400 million, replacing a previous $200 million plan. As of September 30, 2024, Informatica had approximately $1.83 billion in outstanding debt, with a credit agreement that includes $1.9 billion in term loans and $250 million in revolving credit commitments.

About Informatica Inc.

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