Shares of Informatica (NYSE: INFA) are up 14.1% as of 2:30 p.m. ET Thursday after the cloud data management company announced better-than-expected quarterly results.
Informatica closes an "outstanding" year, led by cloud growth
For its fourth quarter of 2023, Informatica's revenue grew 12% year over year (or 10% at constant currency) to $445.2 million, translating to non-GAAP (adjusted) net income of $0.32 per share. Analysts, on average, were only modeling earnings of $0.30 per share on revenue closer to $432 million.
On its top line, Informatica saw a 39% year-over-year increase in cloud subscription revenue to $140.3 million. Cloud subscription annual recurring revenue (ARR) rose 37% to $617 million exiting the year, while total ARR grew 7% to $1.63 million.
Informatica CEO Amit Walia called it an "outstanding" year, noting the company exceeded all of its growth and profitability guidance metrics.
What's next for Informatica investors?
For the full year 2024, Informatica issued guidance for revenue ranging from $1.685 billion to $1.705 billion -- again well above consensus estimates for 2024 sales of $1.68 billion and up 6.3% from 2023 at the midpoint. Within that total, subscription ARR should climb to a range of $1.261 billion to $1.295 billion, up 12.8% at the midpoint, including a 35.1% increase in cloud subscription ARR to a range of $826 million to $840 million.
All told, this was indeed an impressive performance from Informatica as it scales its recurring cloud business. And it should be no surprise to see the leading enterprise AI stock extending its recent gains in response.
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Steve Symington has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
