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REDWOOD CITY, Calif. - Informatica Inc . (NYSE:INFA) shares plummeted over 25% in after-hours trading on Wednesday after the cloud data management company reported fourth-quarter revenue that fell well short of analyst expectations, despite beating earnings estimates.
The company posted adjusted earnings per share of $0.41, surpassing the consensus forecast of $0.38. However, revenue for the quarter came in at $428.3 million, significantly below the $456.86 million analysts were expecting.
Informatica’s fourth-quarter total revenues decreased 3.8% year-over-year, with the company citing several factors for the revenue miss. These included lower renewal rates and shorter durations of self-managed subscriptions, which led to a roughly $46 million year-over-year reduction in upfront revenue recognition.
"Although we encountered unexpected headwinds in the fourth quarter, we’re entering 2025 with strong fundamentals and clear line of sight to reaching $1 billion in Cloud Subscription ARR by the end of the year," said CEO Amit Walia.
The company’s Cloud Subscription Annual Recurring Revenue (ARR) grew 34% YoY to $827.3 million in Q4, though this was below guidance by $8.7 million due to lower cloud renewal rates and weaker net new bookings.
For the full year 2024, Informatica’s total revenues increased 2.8% to $1.64 billion. The company expects 2025 revenue between $1.67 billion and $1.72 billion, representing about 3.4% growth at the midpoint.
The steep stock decline reflects investor disappointment with the revenue miss and concerns about slowing growth in key cloud metrics.
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