Key Takeaways
- Informatica reported fourth-quarter revenue that missed analysts’ estimates and offered a weaker-than-expected outlook.
- The cloud data and management platform pointed to the impact of foreign exchange rates and slowing demand.
- Shares of Informatica plunged over 30% in early trading Friday and have lost about half of their value in the last 12 months.
Informatica (INFA) shares cratered Friday after the cloud data and management platform reported fourth-quarter revenue that missed analysts’ estimates and offered a weak outlook as demand dropped.
The company reported fourth-quarter revenue fell 3.8% year-over-year to $428.3 million, short of analysts’ forecasts compiled by Visible Alpha. When taking into account the impact of foreign exchange rates, it fell even further, dropping 4.1%. Adjusted earnings per share (EPS) of 41 cents beat expectations.
Along with the effects of a strengthening dollar, Informatica blamed the revenue decline on lower upfront self-managed subscription license revenue due to lower renewal rates of self-managed subscriptions, the lower average duration of those self-managed subscription renewals, and a “further decline in professional services.”
Informatica said it anticipates current-quarter revenue in the range of $380 million and $400 million, while analysts surveyed by Visible Alpha were looking for nearly $413 million.
Informatica shares plunged over 30% in early trading Friday and have lost about half of their value in the last 12 months.
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