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Informatica Reports Record Quarterly Revenues of $276.0 Million and Record Annual Revenues of $948.2 Million
Achieves 19 Percent Software Revenue Growth and 18 Percent Total Revenue Growth In Fourth Quarter
- Record fourth quarter software revenues of $134.6 million, up 19 percent year-over-year
- Record fourth quarter total revenues of $276.0 million, up 18 percent year-over-year
- Fourth quarter GAAP earnings per diluted share of $0.36 and record non-GAAP earnings per diluted share of $0.49
- Annual GAAP earnings per diluted share of $0.78 and record non-GAAP earnings per diluted share of $1.44
- Record deferred revenues of $298.1 million
Informatica Corporation (Nasdaq:INFA), the world's number one independent provider of data integration software, today announced financial results for the fourth quarter and year ended December 31, 2013.
"Our 2013 results demonstrate increasing customer demand and improved operational discipline," said Sohaib Abbasi, chairman and chief executive officer, Informatica. "Informatica is well-positioned for sustained growth by maintaining our singular focus and by continuing to innovate for key technology mega-trends that are elevating the role of our technology platform."
Financial Highlights for the Fourth Quarter and Year Ended December 31, 2013
Total revenues for the fourth quarter of 2013 were $276.0 million, an increase of 18 percent from $234.7 million in the fourth quarter of 2012. Software revenues were $134.6 million, an increase of 19 percent from $112.8 million in the fourth quarter of 2012. Within software revenues, license revenues were $120.8 million, up 16 percent year-over-year, and subscription revenues were $13.7 million, up 57 percent year-over-year.
Income from operations for the fourth quarter of 2013, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was $61.0 million, up 37 percent from $44.6 million in the fourth quarter of 2012.
GAAP net income for the fourth quarter of 2013 was $39.9 million, up 28 percent from $31.1 million in the fourth quarter of 2012, and GAAP net income per diluted share was $0.36, up 29 percent from $0.28 per diluted share in the fourth quarter of 2012.
Non-GAAP income from operations for the fourth quarter of 2013 was $81.2 million, up 26 percent from $64.7 million in the fourth quarter of 2012. Non-GAAP net income for the fourth quarter of 2013 was $54.8 million, up 21 percent from $45.2 million in the fourth quarter of 2012 and non-GAAP net income per diluted share was $0.49, up 20 percent from $0.41 per diluted share in the fourth quarter of 2012. Non-GAAP income from operations and non-GAAP net income exclude charges and tax benefits related to the amortization of acquired technology and intangible assets, facilities restructuring and facility lease termination costs, building operating expenses related to the headquarters move, acquisition and other charges, acquisition integration-related tax expenses, and share-based compensation. A reconciliation of GAAP results to non-GAAP results is included below.
For the year ended December 31, 2013, total revenues were $948.2 million, up 17 percent from $811.6 million in 2012. Software revenues for the year ended December 31, 2013 were $413.7 million, up 18 percent from $350.2 million in 2012. Within software revenues, license revenues were $367.1 million, up 14 percent year-over-year, and subscription revenues were $46.7 million, up 60 percent year-over-year. GAAP income from operations for the year ended December 31, 2013 was $138.9 million, up 2 percent from $136.0 million in 2012. GAAP net income for the year ended December 31, 2013 was $86.4 million, compared to $93.2 million in 2012, and GAAP net income per diluted share was $0.78, compared to $0.83 per diluted share in 2012. Non-GAAP income from operations for the year ended December 31, 2013 was $233.0 million, up 10 percent from $212.3 million in 2012. Non-GAAP net income for the year ended December 31, 2013 was $160.7 million, up 9 percent from $147.1 million in 2012 and non-GAAP net income per diluted share was $1.44, up 10 percent from $1.31 per diluted share in 2012.
Additional Highlights Achieved Since October 2013:
- Announced Informatica Vibe Data Stream for Machine Data. Informatica Vibe Data Stream delivers high-performance data streaming technology to capture ultra-high volumes of high-velocity machine data such as sensor data, weblog data, application log data and call detail record data.
- Announced Informatica Dynamic Data Masking support for Hadoop. Informatica Dynamic Data Masking delivers policy-based data security for Hadoop and addresses big data security concerns.
- Announced Informatica Cloud Winter 2014. Informatica Cloud Winter 2014 delivers advances in the areas of Cloud Data, Process Integration, Cloud Master Data Management (MDM), Cloud Test Data Management (TDM) and Cloud Connectors for hybrid IT.
- Announced partnership with Cloudera. A joint solution for data warehouse optimization lowers costs and provides an enterprise-ready data platform that scales to meet the data storage and processing requirements for big data projects.
- Positioned in the visionary quadrant in Gartner's 2013 Magic Quadrant report for Master Data Management (MDM) of Product Data Solutions. The Gartner report states that Informatica MDM advanced in "completeness of vision" and "ability to execute on that vision."
- Positioned in the leaders quadrant in Gartner's 2013 Magic Quadrant report for Data Masking Technology. The Gartner report recommends that enterprises "make data masking technologies and best practices an integral part of the enterprise's software life cycle and data management processes."
- Achieved top marks in customer loyalty for data integration, for the eighth consecutive year. According to the 2013 Data Integration Customer Satisfaction Survey conducted by independent research firm TNS, Informatica led the competitive field in total performance, with the most favorable scores for overall quality of products, product reliability and meeting customer needs for support, professional services and education/training.
- Approved additional $100 million stock repurchase authorization. Informatica's Board of Directors has approved an additional $100 million to augment the existing authorization under the company's common stock repurchase program.
During the first quarter of 2013, Informatica performed a review of the presentation of certain of the company's revenue categories and adopted a revised presentation, which Informatica believes more accurately reflects the company's evolving product and service offerings. A change was made to rename other revenues to subscription revenues and to present subscription revenues and license revenues as software revenues. Other revenues were previously presented in services revenues. A corresponding change was made to present cost of license revenues and cost of other revenues as cost of software revenues. This change in presentation will not affect total revenues, total cost of revenues or total gross margin. Conforming changes have been made for all prior periods presented.
Conference Call and Webcast
Informatica will discuss its fourth quarter and full year 2013 results on a conference call today beginning at 2:00 p.m. PT. The live conference call can be accessed at http://www.informatica.com/... or by dialing 888-895-3521, reservation number 25900440. A replay of the call will also be available by dialing 404-537-3406, reservation number 25900440.
Non-GAAP Financial Information
To supplement Informatica's condensed consolidated financial statements prepared and presented on a GAAP basis, Informatica uses non-GAAP financial measures of income from operations, net income and net income per share. These measures are adjusted from income from operations, net income or net income per share prepared in accordance with GAAP to exclude the charges and expenses discussed above. The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for, or superior to, income from operations, net income or net income per share prepared in accordance with GAAP.
Informatica believes the disclosure of such non-GAAP financial measures is appropriate to enhance an overall understanding of its financial performance, its financial and operational decision making and as a means to evaluate period to period comparisons. These adjustments to the Company's GAAP results are made with the intent of providing both management and investors a more complete understanding of Informatica's performance, by excluding certain expenses and expenditures such as non-cash charges and discrete charges that are infrequent in nature, such as charges related to acquisitions that may not be indicative of its underlying operating results. In addition, Informatica believes these non-GAAP financial measures are useful to investors because they allow for greater transparency into the indicators used by management as a basis for its financial and operational decision making. Informatica believes that the disclosure of these non-GAAP financial measures provides consistency and comparability of its recent financial results with its historical financial results, as well as to the operating results of similar companies in Informatica's industry, many of which present similar non-GAAP financial measures to investors. As an example, Informatica believes that it enhances comparability with similar companies' operating results by excluding stock compensation in its non-GAAP financial measures because of the different types of stock-based awards that companies may grant and because ASC 718 ("Stock Compensation") allows companies to use different valuation methodologies and subjective assumptions. In addition, Informatica believes that both management and investors benefit from referring to these non-GAAP financial measures when planning, analyzing and forecasting future periods. There are a number of limitations related to these non-GAAP financial measures: (1) the non-GAAP measures exclude some costs that are recurring, particularly stock compensation, and we believe that stock compensation will continue to be a significant recurring expense for the foreseeable future; because stock compensation is an important part of our employees' compensation, such payments can impact their performance; and (2) the items we exclude in our non-GAAP measures may differ from the components our peer companies exclude when they report their non-GAAP measures. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP measures and evaluating non-GAAP measures together with the corresponding measures calculated in accordance with GAAP.
Forward Looking Statements
This press release contains forward-looking statements, including those related to our long term growth opportunities. Such statements involve risks and uncertainties and actual results may differ materially from the results described in this press release. The potential risks and uncertainties that could cause actual results to differ include, among others, risks related to competition with larger companies that have longer operating histories or greater financial, technical, marketing and other resources; sales execution; and uncertainty in the state of IT spending and the growth of the market for data integration solutions. Additional risks and uncertainties are included under the caption "Risk Factors" in Informatica's Quarterly Report on Form 10-Q for the quarter ended September 30, 2013, which has been filed with the SEC and is available on our investor relations website at http://www.informatica.com. All information provided in this release is as of January 23, 2014 and Informatica undertakes no duty to update this information.
Note: Informatica, Informatica Vibe, Informatica Platform, Informatica Vibe Data Stream, Informatica Data Masking, Informatica Dynamic Data Masking, Informatica Cloud and Informatica Master Data Management, are trademarks or registered trademarks of Informatica Corporation in the United States and in jurisdictions throughout the world. All other company and product names may be trade names or trademarks of their respective owners.
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