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REDWOOD CITY, Calif. - Informatica (NYSE: INFA), known for its enterprise AI-powered cloud data management solutions and maintaining impressive gross profit margins of 80.35%, has expanded its Intelligent Data Management Cloud (IDMC) services on Google Cloud. According to InvestingPro analysis, the company, currently trading near its 52-week low, is expected to see net income growth this year. This move, announced at Google Cloud Next 2025, aims to enhance data readiness for AI applications by offering new support for the Databricks Data Intelligence Platform, API Center, and Cloud Data Access Management (CDAM) services.
The expansion includes full support for Databricks on Google Cloud, which comes with over 300 connectors for data ingestion. Customers can now create no-code data pipelines within Databricks to streamline data preparation and transformation. Additionally, the service offers data quality and profiling for Databricks data and integrates with Unity Catalog for enterprise-wide data governance.
The API Center is another significant addition, providing next-generation API management. It allows deployment of APIs across various environments and the ability to expose any IDMC process as an API. Enhanced API security features and advanced monitoring for unauthorized access attempts are also part of the package.
Cloud Data Access Management is designed to help organizations manage data sharing and usage while complying with regulatory frameworks like EU GDPR, CPRA, or HIPAA. It features intuitive policy authoring and simplifies the request and approval workflows to access trusted data.
These services are expected to offer cost efficiency for data platforms, integrating with BigQuery for governance and model inference, as well as Vertex AI for advanced use cases. With a market capitalization of $4.8 billion and a solid current ratio of 1.82, Informatica demonstrates strong financial health. For deeper insights into Informatica's financial metrics and growth potential, InvestingPro offers comprehensive analysis with over 15 additional ProTips and detailed valuation metrics.
Ritika Suri of Google Cloud and Roger Murff of Databricks expressed their organizations' support for the enhanced capabilities, highlighting the benefits for joint customers, including the elimination of data silos and holistic data asset management.
Rik Tamm-Daniels from Informatica emphasized the strategic nature of the expansion, noting that it would enable customers to accelerate their AI and analytics initiatives with robust data governance and security.
This partnership is poised to serve a variety of industries, including retail, financial services, and healthcare, by improving customer experiences, optimizing supply chains, and enhancing compliance with trusted data.
The information is based on a press release statement from Informatica.
In other recent news, Informatica has announced several leadership changes and faced adjustments in analyst ratings following its fourth-quarter results for 2024. Krish Vitaldevara has been appointed as the new Executive Vice President and Chief Product Officer, joining the Executive Committee with a focus on advancing AI-powered data management. Additionally, Informatica named Francis Santiago as the new Group Vice President and Chief Accounting Officer, succeeding Mark Pellowski. These appointments highlight Informatica's strategic moves to bolster its executive team.
On the financial front, DA Davidson adjusted its outlook on Informatica, lowering the price target from $25.00 to $20.00 while maintaining a Neutral rating. The revision reflects challenges in subscription revenue growth and cloud renewals. Similarly, Goldman Sachs downgraded Informatica from Buy to Neutral, reducing the price target to $20.00 from $38.00, citing slower-than-expected cloud transition and higher churn rates. BofA Securities also downgraded the stock to Neutral, cutting the price target to $20.00 from $35.00, due to execution challenges and revenue sensitivity.
Despite these downgrades, Informatica reported a reacceleration in cloud migration deals, which is seen as a positive sign for long-term prospects. Analysts from these firms believe that while there are operational challenges, the company's focus on cloud migration could offset some of the recent earnings setbacks. Investors will be closely monitoring Informatica's performance as it addresses these issues and aims to capitalize on the growing trend of cloud services.
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