- Record quarterly software revenues of $150.2 million, up 12 percent year-over-year
- Record quarterly GAAP earnings per diluted share of $0.40 compared to $0.36 the previous year and non-GAAP earnings per diluted share of $0.56 compared to $0.49 the previous year
- Signed a record 41 deals greater than $1 million and 145 deals greater than $300,000
- Generated record quarterly cash from operations of $90.1 million
- Announced $500 million stock repurchase program
REDWOOD CITY, Calif., Jan. 27, 2015 (GLOBE NEWSWIRE) -- Informatica Corporation INFA, the world's number one independent provider of enterprise data integration software and services, today announced financial results for the fourth quarter ended December 31, 2014.
"Our record quarterly software and total revenues in the fourth quarter reflect improved execution and growing customer adoption of our products," said Sohaib Abbasi, chairman and chief executive officer, Informatica. "To attain higher long-term growth, we are making good progress in delivering innovative products and in scaling go-to-market resources to pursue four distinct billion dollar market opportunities: cloud integration, MDM, data integration for next generation analytics and data security."
Financial Highlights for the Fourth Quarter and Year Ended December 31, 2014
Total revenues for the fourth quarter of 2014 were $303.7 million, an increase of 10 percent from $276.0 million in the fourth quarter of 2013. Software revenues were $150.2 million, an increase of 12 percent from $134.6 million in the fourth quarter of 2013. Within software revenues, license revenues were $129.2 million, up 7 percent year-over-year, and subscription revenues were $21.1 million, up 53 percent year-over-year. Total revenues were negatively impacted by currency fluctuations. Using currency exchange rates from the fourth quarter of 2013, total revenues growth would have been 12% and software revenue growth would have been 14% in the fourth quarter of 2014.
Income from operations for the fourth quarter of 2014, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was $65.4 million, up 7 percent from $61.0 million in the fourth quarter of 2013.
GAAP net income for the fourth quarter of 2014 was $43.6 million, up 9 percent from $39.9 million in the fourth quarter of 2013, and GAAP net income per diluted share was $0.40, up 11 percent from $0.36 per diluted share in the fourth quarter of 2013.
Non-GAAP income from operations for the fourth quarter of 2014 was $85.1 million compared to $81.2 million in the fourth quarter of 2013. Non-GAAP net income for the fourth quarter of 2014 was $61.5 million, up 12 percent from $54.8 million in the fourth quarter of 2013 and non-GAAP net income per diluted share was $0.56, up 14 percent from $0.49 per diluted share in the fourth quarter of 2013. These non-GAAP results exclude charges and tax benefits related to the amortization of acquired technology and intangible assets, building operating expenses related to the headquarters move, acquisition and other charges, acquisition integration-related tax expenses, equity investment loss and stock-based compensation. A reconciliation of GAAP results to non-GAAP results is included below.
For the year ended December 31, 2014, total revenues were $1.05 billion, up 11 percent from $948.2 million in 2013. Software revenues for the year ended December 31, 2014 were $457.4 million, up 11 percent from $413.7 million in 2013. Within software revenues, license revenues were $387.7 million, up 6 percent year-over-year, and subscription revenues were $69.7 million, up 49 percent year-over-year. GAAP income from operations for the year ended December 31, 2014 was $169.5 million, up 22 percent from $138.9 million in 2013. GAAP net income for the year ended December 31, 2014 was $114.1 million, up 32 percent from $86.4 million in 2013, and GAAP net income per diluted share was $1.03, up 32 percent from $0.78 per diluted share in 2013. Non-GAAP income from operations for the year ended December 31, 2014 was $249.0 million, up 7 percent from $233.0 million in 2013. Non-GAAP net income for the year ended December 31, 2014 was $176.9 million, up 10 percent from $160.7 million in 2013 and non-GAAP net income per diluted share was $1.59, up 10 percent from $1.44 per diluted share in 2013.
Additional Highlights Since October 2014:
- Announced a $500 million stock repurchase program. Demonstrating Informatica's continuing commitment to returning capital to stockholders, Informatica's Board of Directors has approved an additional $337 million to augment its existing authorization under the company's stock repurchase program. Informatica plans to repurchase an aggregate of $500 million of common stock, through a $300 million accelerated share repurchase (ASR) program to begin within the next week and subsequent open market purchases or privately negotiated transactions.
- Launched Informatica Cloud Data Preparation. Informatica Rev, formerly known as Project Springbok, empowers business users to be self-sufficient in data integration and preparation for analytics. More than 4,000 users across more than 900 organizations have adopted Informatica Rev.
- Broadened partnership with Tableau Software. The expanded partnership between Informatica and Tableau relationship will deliver greater value to business users for self-service data visualization and analytics.
- Announced Informatica Big Data Edition integration with Cloudera Navigator. Informatica extends Cloudera Navigator beyond Hadoop with data lineage and audit capabilities for upstream data sources and downstream analytic and operational applications.
- Announced Informatica Cloud for Salesforce Analytics Cloud, Wave. Informatica Cloud enables business analysts and IT developers to productively integrate enterprise data, from both Cloud and on-premise sources, for analytics using Salesforce Wave Cloud.
- Joined ranks with T-Systems to provide a comprehensive Cloud-based integration and data management service. The service enables customers to integrate data from virtually all sources, including those in public or private clouds and those in on-premise systems.
- Positioned as leader in Gartner's 2014 Magic Quadrant for Data Masking with the right-most placement on "Completeness of Vision" dimension.
- Positioned as leader in Gartner's 2014 Magic Quadrant for Data Quality Tools report with distinguished placement on both "Ability to Execute" and "Completeness of Vision" dimensions.
- Positioned as leader in Gartner's 2014 Magic Quadrant for Master Data Management of Customer Data Solutions report. Informatica's placement moved up and to the right on both "Ability to Execute" and "Completeness of Vision" dimensions.
- Achieved top marks in customer loyalty for data integration for the ninth consecutive year. According to the 2014 Data Integration Customer Satisfaction Survey conducted by independent research firm TNS, Informatica led the competitive field in key areas such as overall value received relative to price paid, support programs meeting customer needs, and ability to provide global support.
Conference Call and Webcast
Informatica will discuss its fourth quarter and full year 2014 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/investor or by dialing 888-339-2688, passcode 82435474. A replay of the call will also be available by dialing (888) 286-8010, passcode 82997566.
About Informatica
Informatica Corporation INFA is the world's number one independent provider of enterprise data integration software and services. Organizations around the world rely on Informatica to realize their information potential and drive top business imperatives. Informatica Vibe, the industry's first and only embeddable virtual data machine (VDM), powers the unique "Map Once. Deploy Anywhere." capabilities of the Informatica Platform. Worldwide, over 5,500 enterprises depend on Informatica to fully leverage their information assets from devices to mobile to social to big data residing on-premise, in the Cloud and across social networks. For more information, call +1 650-385-5000 (1-800-653-3871 in the U.S.), or visit www.informatica.com.
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 includes forward looking statements, such as those related to our stock repurchase program and our growth opportunities. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from the statements made in this press release. Potential risks and uncertainties that could cause actual results to differ include, among others, risks and uncertainties related to competition, product introductions and enhancements, quarterly and seasonal fluctuations, macroeconomic and geopolitical conditions, our ability to forecast sales and trends in our business, reductions in our sales pipeline and pipeline conversion rates, changes to our sales cycles, changes in our product offering strategies, our international operations and the loss of key personnel. A discussion of these and other risks and uncertainties is included in our recent SEC filings, including our most recent report on Form 10-Q. Copies of these documents may be obtained from the SEC, by contacting our investor relations department or from our investor relations website at www.informatica.com/investor. All information provided in this press release is as of January 27, 2015, and Informatica assumes no obligation and does not intend to update or revise any forward-looking statements made in this press release as a result of new information or future events.
Note: Informatica, Informatica Vibe, Informatica Platform, Informatica Cloud, Intelligent Data Platform, and Secure@Source 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.
| INFORMATICA CORPORATION | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||
| (in thousands, except per share data) | ||||
| Three Months Ended | Years Ended | |||
| December 31, | December 31, | |||
| 2014 | 2013 | 2014 | 2013 | |
| (unaudited) | (unaudited) | |||
| Revenues: | ||||
| Software | $ 150,224 | $ 134,578 | $ 457,364 | $ 413,738 |
| Service | 153,520 | 141,460 | 590,590 | 534,433 |
| Total revenues | 303,744 | 276,038 | 1,047,954 | 948,171 |
| Cost of revenues: | ||||
| Software | 4,122 | 2,485 | 13,048 | 9,838 |
| Service | 44,475 | 39,422 | 171,657 | 149,136 |
| Amortization of acquired technology | 2,757 | 5,337 | 13,141 | 22,307 |
| Total cost of revenues | 51,354 | 47,244 | 197,846 | 181,281 |
| Gross profit | 252,390 | 228,794 | 850,108 | 766,890 |
| Operating expenses: | ||||
| Research and development | 50,048 | 42,517 | 193,866 | 165,875 |
| Sales and marketing | 113,166 | 106,588 | 397,024 | 374,315 |
| General and administrative | 22,077 | 16,814 | 82,684 | 77,641 |
| Amortization of intangible assets | 1,482 | 1,848 | 5,943 | 7,729 |
| Acquisitions and other charges | 177 | — | 1,103 | 2,467 |
| Total operating expenses | 186,950 | 167,767 | 680,620 | 628,027 |
| Income from operations | 65,440 | 61,027 | 169,488 | 138,863 |
| Interest and other income (expense), net | (1,643) | 394 | 805 | 1,859 |
| Income before income taxes | 63,797 | 61,421 | 170,293 | 140,722 |
| Income tax provision | 20,205 | 21,503 | 56,206 | 54,327 |
| Net income | $ 43,592 | $ 39,918 | $ 114,087 | $ 86,395 |
| Net income per share: | ||||
| Basic | $ 0.40 | $ 0.37 | $ 1.04 | $ 0.80 |
| Diluted | $ 0.40 | $ 0.36 | $ 1.03 | $ 0.78 |
| Shares used in per share calculation: | ||||
| Basic | 108,663 | 108,462 | 109,199 | 108,146 |
| Diluted | 109,988 | 111,457 | 110,960 | 111,394 |
| INFORMATICA CORPORATION | ||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| (in thousands) | ||
| December 31, | ||
| 2014 | 2013 | |
| (unaudited) | ||
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 368,531 | $ 297,818 |
| Short-term investments | 353,130 | 379,616 |
| Accounts receivable, net of allowances of $3,465 and $4,135, respectively | 235,705 | 204,374 |
| Deferred tax assets | 46,867 | 32,898 |
| Prepaid expenses and other current assets | 25,447 | 34,541 |
| Total current assets | 1,029,680 | 949,247 |
| Property and equipment, net | 159,708 | 157,308 |
| Goodwill and intangible assets, net | 594,357 | 564,767 |
| Long-term deferred tax assets | 32,032 | 44,865 |
| Other assets | 13,809 | 6,834 |
| Total assets | $ 1,829,586 | $ 1,723,021 |
| Liabilities and Stockholders' Equity | ||
| Current liabilities: | ||
| Accounts payable and other current liabilities | $ 160,749 | $ 144,493 |
| Income taxes payable | 6,895 | 14,184 |
| Deferred revenues | 324,296 | 285,184 |
| Total current liabilities | 491,940 | 443,861 |
| Long-term deferred revenues | 14,679 | 12,938 |
| Long-term income taxes payable | 30,350 | 29,878 |
| Other liabilities | 3,666 | 594 |
| Stockholders' equity | 1,288,951 | 1,235,750 |
| Total liabilities and stockholders' equity | $ 1,829,586 | $ 1,723,021 |
| INFORMATICA CORPORATION | ||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (in thousands) | ||
| Years Ended | ||
| December 31, | ||
| 2014 | 2013 | |
| (unaudited) | ||
| Operating activities: | ||
| Net income | $ 114,087 | $ 86,395 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation and amortization | 19,107 | 14,978 |
| Stock-based compensation | 59,362 | 57,204 |
| Deferred income taxes | (1,398) | (24,067) |
| Tax benefits from stock-based compensation | 373 | 26,082 |
| Excess tax benefits from stock-based compensation | (3,831) | (27,495) |
| Amortization of intangible assets and acquired technology | 19,084 | 30,036 |
| Loss on investment in equity interest | 1,998 | — |
| Other operating activities, net | — | (352) |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | (30,721) | (32,009) |
| Prepaid expenses and other assets | (233) | 418 |
| Accounts payable and accrued liabilities | 17,888 | 13,839 |
| Income taxes payable | (1,292) | 9,596 |
| Deferred revenues | 38,767 | 46,525 |
| Net cash provided by operating activities | 233,191 | 201,150 |
| Investing activities: | ||
| Purchases of property and equipment | (21,045) | (26,508) |
| Purchases of investments | (260,933) | (367,834) |
| Investment in equity interest, net | (282) | (2,001) |
| Maturities and sales of investments | 285,138 | 332,767 |
| Business acquisitions, net of cash acquired | (58,614) | (7,464) |
| Purchases of developed technology and patent | (300) | (400) |
| Net cash used in investing activities | (56,036) | (71,440) |
| Financing activities: | ||
| Net proceeds from issuance of common stock | 59,023 | 58,669 |
| Repurchases and retirement of common stock | (141,247) | (92,068) |
| Withholding taxes related to restricted stock units net share settlement | (7,927) | (7,342) |
| Payment of contingent consideration | (3,061) | (4,170) |
| Payment of issuance costs on credit facility | (934) | — |
| Excess tax benefits from stock-based compensation | 3,831 | 27,495 |
| Purchase of acquiree stock | — | (6,365) |
| Net cash used in financing activities | (90,315) | (23,781) |
| Effect of foreign exchange rate changes on cash and cash equivalents | (16,127) | 1,762 |
| Net increase in cash and cash equivalents | 70,713 | 107,691 |
| Cash and cash equivalents at beginning of the year | 297,818 | 190,127 |
| Cash and cash equivalents at end of the year | $ 368,531 | $ 297,818 |
| INFORMATICA CORPORATION | ||||
| GAAP TO NON-GAAP RESULTS | ||||
| (in thousands, except per share data) | ||||
| (unaudited) | ||||
| Three Months Ended | Years Ended | |||
| December 31, | December 31, | |||
| 2014 | 2013 | 2014 | 2013 | |
| Total revenues | $ 303,744 | $ 276,038 | $ 1,047,954 | $ 948,171 |
| Operating income: | ||||
| GAAP operating income | $ 65,440 | $ 61,027 | $ 169,488 | $ 138,863 |
| Percentage of GAAP operating income to total revenues | 22% | 22% | 16% | 15% |
| Plus: | ||||
| Amortization of acquired technology - Cost of revenues | 2,757 | 5,337 | 13,141 | 22,307 |
| Amortization of intangible assets - Operating expenses | 1,482 | 1,848 | 5,943 | 7,729 |
| Building operating expense - Operating expenses (1) | — | — | — | 4,409 |
| Acquisitions and other charges - Operating expenses | 177 | — | 1,103 | 2,467 |
| Stock-based compensation - Cost of revenues and Operating expenses (2) | 15,291 | 12,956 | 59,362 | 57,204 |
| Non-GAAP operating income | $ 85,147 | $ 81,168 | $ 249,037 | $ 232,979 |
| Percentage of Non-GAAP operating income to total revenues | 28% | 29% | 24% | 25% |
| Net income: | ||||
| GAAP net income | $ 43,592 | $ 39,918 | $ 114,087 | $ 86,395 |
| Plus: | ||||
| Amortization of acquired technology - Cost of revenues | 2,757 | 5,337 | 13,141 | 22,307 |
| Amortization of intangible assets - Operating expenses | 1,482 | 1,848 | 5,943 | 7,729 |
| Building operating expense - Operating expenses (1) | — | — | — | 4,409 |
| Acquisitions and other charges - Operating expenses | 177 | — | 1,103 | 2,467 |
| Stock-based compensation - Cost of revenues and Operating expenses (2) | 15,291 | 12,956 | 59,362 | 57,204 |
| Loss on investment in equity interest | 1,998 | — | 1,998 | — |
| Income tax adjustments | (3,761) | (5,302) | (18,702) | (19,765) |
| Non-GAAP net income | $ 61,536 | $ 54,757 | $ 176,932 | $ 160,746 |
| Diluted net income per share: | ||||
| Diluted GAAP net income per share | $ 0.40 | $ 0.36 | $ 1.03 | $ 0.78 |
| Plus: | ||||
| Amortization of acquired technology | 0.03 | 0.05 | 0.12 | 0.20 |
| Amortization of intangible assets | 0.01 | 0.02 | 0.05 | 0.07 |
| Building operating expense (1) | — | — | — | 0.04 |
| Acquisitions and other charges | — | — | 0.01 | 0.02 |
| Stock-based compensation (2) | 0.14 | 0.11 | 0.53 | 0.51 |
| Loss on investment in equity interest | 0.02 | — | 0.02 | — |
| Income tax adjustments | (0.04) | (0.05) | (0.17) | (0.18) |
| Diluted Non-GAAP net income per share | $ 0.56 | $ 0.49 | $ 1.59 | $ 1.44 |
| Shares used in computing diluted Non-GAAP net income per share | 109,988 | 111,457 | 110,960 | 111,394 |
| ____________________ | ||||
| (1) Represents expense from operating current headquarters buildings purchased in February 2012 prior to occupancy in September 2013 by Informatica. | ||||
| (2) The allocation of the stock-based compensation is as follows: | ||||
| Three Months Ended | Years Ended | |||
| December 31, | December 31, | |||
| 2014 | 2013 | 2014 | 2013 | |
| Cost of service revenues | $ 1,521 | $ 1,479 | $ 5,935 | $ 5,525 |
| Operating expenses: | ||||
| Research and development | 5,291 | 4,237 | 20,255 | 19,002 |
| Sales and marketing | 4,776 | 3,946 | 19,062 | 19,323 |
| General and administrative | 3,703 | 3,294 | 14,110 | 13,354 |
| Total stock-based compensation | $ 15,291 | $ 12,956 | $ 59,362 | $ 57,204 |
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