Transcription
October 2021Informatica Overview
DisclaimerThis presentation contains forward-looking statements about Informatica and the environment inwhich Informatica operates. These statements may relate to, but are not limited to, expectations offuture operating results or financial performance, market size and growth opportunities, thecalculation of certain of our key financial and operating metrics, capital expenditures, plans forfuture operations, competitive position, technological capabilities, and strategic relationships, aswell as assumptions relating to the foregoing. Such statements are subject to known and unknownuncertainties and contingencies outside of Informatica’s control and are largely based on ourcurrent expectations and projections about future events and financial trends that we believe mayaffect our financial condition, results of operations, business strategy, and financial needs.Informatica’s actual results, events, or circumstances may differ materially from these statements.Forward-looking statements include all statements that are not historical facts and can beidentified by terms such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,”“expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would,” orsimilar expressions and the negatives of those terms. You should not put undue reliance on anyforward-looking statements. Forward-looking statements should not be read as a guarantee offuture performance or results and will not necessarily be accurate indications of the times at, orby, which such performance or results will be achieved, if at all.Forward-looking statements are based on information available at the time those statements aremade and/or management’s good faith beliefs and assumptions as of that time with respect tofuture events and are subject to risks and uncertainties that could cause actual performance orresults to differ materially from those expressed in or suggested by the forward-lookingstatements. Many of these risks are set forth in our periodic reports that we file with the Securitiesand Exchange Commission from time to time. In light of these risks and uncertainties, the forwardlooking events and circumstances discussed in this presentation may not occur, and actualresults, performance or achievement could differ materially from those anticipated or implied inthe forward-looking statements. Moreover, we operate in a very competitive and rapidly changingenvironment. New risks and uncertainties emerge from time to time and it is not possible for us topredict all risks and uncertainties that could have an impact on the forward-looking statementscontained in this presentation. Except as required by law, Informatica does not undertake anyobligation to publicly update or revise any forward-looking statement, whether as a result of newinformation, future developments or otherwise.2 Informatica. Proprietary.In addition to U.S. GAAP financials, this presentation includes certain non-GAAP financialmeasures, including Adjusted EBITDA, Adjusted EBITDA margin, unlevered free cash flow,unlevered free cash flow margin, non-GAAP gross margin, non-GAAP operating expenses, nonGAAP operating margin and non-GAAP operating loss (income). These non-GAAP measures arein addition to, not a substitute for or superior to, measures of financial performance prepared inaccordance with U.S. GAAP. The non-GAAP financial measures used by Informatica may differfrom the non-GAAP financial measures used by other companies. A reconciliation of thesemeasures to the most directly comparable U.S. GAAP measure is included in the Appendix to thispresentation.This presentation contains statistical data, estimates and forecasts that are based on independentindustry publications or other publicly available information, as well as other information based onour internal sources. This information involves many assumptions and limitations, and you arecautioned not to give undue weight to these estimates. We have not independently verified theaccuracy or completeness of the data contained in these industry publications and other publiclyavailable information. Accordingly, we make no representations as to the accuracy orcompleteness of that data nor do we undertake to update such data after the date of thispresentation.The trademarks included herein are the property of the owners thereof and are used for referencepurposes only. Such use should not be construed as an endorsement of the platform andproducts of Informatica or this proposed offering.Unless otherwise indicated, all references in this presentation to “Informatica,” “we,” “our,” “us,” orsimilar terms refer to (i) Ithacalux Topco S.C.A. and its consolidated subsidiaries for the periodsprior to the completion of certain restructuring transactions and (ii) Informatica Inc. and itsconsolidated subsidiaries for the periods subsequent to the completion of such restructuringtransactions.
Company, Industry andBusiness Overview
Informatica Today¿ Industry Leader¿ Attractive Market Position¿ Large and Expanding Market¿ Proven Land & Expand Model¿ Recurring Business Model¿ Compelling Long-Term ModelHigh GrowthSubscription ARRCloud Differentiation34%39%Q2 2021 YoY Subscription ARR Growth1Q2 2021 YoY Cloud ARR Growth 686M 264MGrowth at ScaleProven Marginsand FCF GenerationQ2 2021 Subscription ARR116%Q2 2021 YoY Total ARR Growth2 1.24BQ2 2021 Total ARR2Subscription ARR represents the portion of ARR only attributable to our subscription contractsAnnual Recurring Revenue (ARR) represents the expected annual billing and revenue amounts from all active maintenance and subscription agreements3 Unlevered free cash flow margin is a non-GAAP financial measure. See appendix for reconciliation to most directly comparable GAAP measure134 Informatica. Proprietary.Q2 2021 Cloud ARR25%Q2 2021 LTM Unlevered Free Cash FlowMargin (after-tax)3
Innovation Led Transformation Journey DetailsKept Traditional DI product (PowerCenter) separateBuilt net new products on a new cloud-native multi-hybrid platform (IDMC)34% YoY SubscriptionARR growth185% of SubscriptionARR from newproductsDrove subscription growth by selling net new products on IDMC for next-genworkloads across Analytics, Data Governance & Privacy, and Business 36039% YoY Cloud ARRgrowth1Next-gen workloads powered by cloud that is growing much fasterMigration not part of current growth; future growth continues to be from cloudpowered next-gen workloads; migration is a medium-term incremental upside15Metric as of Q2 2021 Informatica. Proprietary.1% of installed basehave migratedto cloud
IDMC - Product Innovation Journey2016 – Today2015PredominatelyTraditional DI(PowerCenter) Cloud AppIntegrationNew MDMNew DataQualityData Prep2016IDMCDevelopmentStarts6 Informatica. Proprietary. Cloud MDMCloud DataIntegrationData CatalogDataGovernance2017 Cloud APIMgmtCloud DataQualityCloud DataMaskingCloud B2BCloudIntegrationHub (Kafka)2018 Cloud DIServerlessCloud DIElasticCloud MassIngestionCloud ProfilingCloudReference 3602019IDMCPortfolioMatures CloudCustomer 360Data PrivacyManagementCloud ELT forSnowflake,AWS, Azure,GCP2020 Cloud DataGovernanceCloud DataCatalogCloud DQElasticFreemiumCloudIntegration forSnowflake,AWS, Azure2021
Business Model TransformationGAAP Revenue Breakdown 1,379ARR BreakdownTotal ARR 1,240Self- 55%managed ( 317) 1,074SubscriptionServicesLicenseMaintenance 93 659Subscription 130 366 4842015Subscription ARRSubscription ARR (New Products) 686 58155%( 686)New 85%products ( 581)Cloud15%Traditional DI( 105) 101 55 564Q2 2021LTM Informatica. Proprietary.Subscription34%New products36%New Products(Self-managed)34%New Products39%(Cloud)45%Maintenance( 554)Q2 2021Dollars in millions.ARR represents the expected annual billing and revenue amounts from all active subscription and maintenance agreements, as applicable.2015 GAAP as originally reported under ASC 605; 2020 GAAP under ASC 606.745%( 264)Q2 2021YoY Growth Rates
Large and Expanding Addressable MarketTOP-DOWN TAMBOTTOMS-UP TAM 56B# AddressableCompanies Globally 16%CAGR 31B20218 Informatica. Proprietary.XPotential All-Product ARRper Company, AssumingCloud Migration 44B2025IDC Worldwide Data Integration and Intelligence Software Forecast, 2021–2025 (June 2021, US #US46382521)IDC Worldwide Business-to-Business Integration Middleware and Managed File Transfer Software Forecast, 2021–2025 (July 2021, #US46382421)IDC Semiannual Software Tracker, 2020H2, May 13, 2021IDC Worldwide Master Data Management Competitive Software Forecast, 2019–2023 (July 2019, IDC #US45331719) extrapolated by IDC through 2025IDC Worldwide Data Privacy Management Software Forecast, 2021–2025 (IDC #US47676821)
Data Complexity Increasing ExponentiallyAI & MLCloud Data PlatformsFRAGMENTATION“Big Data”SaaS AppsEnterprise DataWarehousesEnterprise AppsRelational DatabasesMainframeTHENTODAYTYPELATENCYUSERS9 Informatica. Proprietary.Structured and UnstructuredBatch and Real-TimeTechnical and Business Users
Pioneering A New Layer in the Enterprise Data StackApplication CloudAnalytics CloudSalesforce Oracle SAP Adobe ServiceNow Coupa Workday ApptioTableau ThoughtSpot Power BIINTELLIGENT DATAMANAGEMENT CLOUD (IDMC)Data Cloud\Snowflake Amazon Redshift Google Big Query Azure DatabricksDatabase CloudInfrastructure CloudAzure Amazon Google Cloud Oracle RackspaceMicrosoft SQL Azure MongoDB Oracle Amazon AuroraMULTI-HYBRIDINFRASTRUCTURE10 Informatica. Proprietary.DATABASESDATA WAREHOUSEPACKAGED APPSCUSTOM APPSBUSINESSINTELLIGENCE TOOLS
IDMC - Details of Cloud-Native PlatformIntelligent Data Management CloudBest of BreedProductsDATAINTEGRATIONAPI & APPINTEGRATIONDATAQUALITYMASTER DATAMANAGEMENTCUSTOMER &BUSINESS 360DATACATALOGGOVERNANCE& PRIVACYAIIntelligence &AutomationAI-Powered Metadata Intelligence & AutomationConnectivityMetadata System of RecordMetadataSystem ofRecordSaaSSelf-ManagedHybrid11 Informatica. Proprietary.EnterpriseCloud
IDMC – Components of Modern Technology Architecture12Cloud NativeMicroservicesbasedAPI-drivenElastic &ServerlessLow-code / No-codeUnified & ModularMulti-cloud & HybridSecurity & Trust Informatica. Proprietary.
Best of Breed Products - Leader in Five Gartner MagicQuadrantsInformatica is placed furthest in completeness of vision and highestin ability to execute in ALL of these Magic Quadrant ReportsData Quality SolutionsMaster DataManagement SolutionsMetadataManagement SolutionsDataIntegration ToolsSep 2021Sep 2021Jan 2021Nov 2020Aug 2021Eric Thoo, et al.,29 Sep 2021Melody Chien, et al.,29 Sep 2021Simon Walker, et al.,27 Jan 2021Guido De Simoni, et al.,11 Nov 2020Ehtisham Zaidi, et al.,25 Aug 2021Enterprise IntegrationPlatform as a ServiceThese graphics were published by Gartner, Inc. as part of larger research documents and should be evaluated in the context of the entire document. The Gartner documents are availableupon request from Informatica. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only thosevendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements offact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.13 Informatica. Proprietary.
Automate AnythingAI-Powered IntelligenceEnterpriseMetadata GrowthGoogle-like searchAmazon-like recommendationsProactive andStrategic DataManagementContinuous Scanningof Transactions,Configurations, Decisions11Petabytes ofActive MetadataSmarterRecommendations,Greater Automation14 Informatica. Proprietary.Social-graph of dataDemocratization of dataNatural Language Processing to create rulesIntelligent and automated match,merge and consolidation
Metadata System of Record Data type Data domain Data structure Data usage Data access L15 Informatica. Proprietary. Associated business terms Data quality standards Data privacy policiesBUSINESS Utilization Runtimes Performance Data likes Data shares Data comments
Next-gen Enterprise Data ArchitectureStream ProcessingStream StorageCLOUD DATA LAKEData QualityAzure Data LakeStorage Gen2LandingZoneGoogleCloud StorageDataEnrichmentEnterpriseZoneData IntegrationData IngestionData IntegrationSaaSBusinessUserCustomer &Business 360CloudMDMCloud ta Science / AIStorageElastic Compute - SparkData Delivery and MarketplaceHybridGoogle CloudPub/SubDataAnalystLine ntistAPI & Application IntegrationIoTData CatalogGovernanceManagerGovernance and PrivacyIDMCCLAIRE: Intelligence and Automation16 Informatica. Proprietary.
Neutral and Scaling Across the Cloud Ecosystem0.2 TrillionTRANSACTIONS PER MONTHIN 201517 Informatica. Proprietary.22 TrillionTRANSACTIONS PER MONTHTODAY
Market LandscapeWHY INFORMATICA?COMPETITIONHOME-GROWN / MANUAL¿ Multi-cloud, hybrid interoperability¿ Ease of Deployment and Scale¿ Performance, Reliability and SecurityPOINT SOLUTIONS¿ Comprehensive Platform, Best-of-Breed Products¿ Strength of Cloud Ecosystem Partnerships¿ Support for Full Breadth of Data PractitionersSTACK VENDORS¿ Advanced AI and Machine Learnings¿ Elasticity and Ability to Quickly Scale Services¿ Responsiveness to Evolving Customer Needs & Use CasesPARTNERSHIPSCLOUD PARTNERS¿ Independence and Neutrality¿ Strong Partnerships18 Informatica. Proprietary.
Our Competitive MoatAI embedded, cloud-native data management platform solving multi-hybrid workloadsBest of breed products catered for Analytics, Data Governance & Privacy, and Business360 initiatives for Chief Data Officer, Chief Data Architect, Chief Privacy Officer, etc.Vendor neutrality – deep partnerships with key players in data, data infrastructure andBI space – Snowflake, Azure, AWS, GCP, Databricks, Tableau, SalesforceTrained developers at customers and global & regional System IntegratorsBarriers to entry to migrate complex PowerCenter integration mappings19 Informatica. Proprietary.
Strategic Hyperscaler and GSI PartnershipsECOSYSTEMSStrategic relationships with 3 leading cloudhyperscalers – AWS, Microsoft Azure, GCPSnowflake and Azure Data Lake Partner ofthe Year (2020)Availability on marketplacesGLOBAL SYSTEM INTEGRATORSDedicated Informatica practiceCo-create and co-sell solutions to solvecustomer needsCombine power of innovation and services20 Informatica. Proprietary.
Customer Leadership – Global and Across all Key VerticalsAuto / TransportationBanking / InsuranceRetailTechnology / Services116%Subscription NetRetention Rate¹,²84of Fortune 100¹55%Govt. / Public Sector / Edu.Healthcare / PharmaManufacturingEnergy / Utilitiesof Subscription Customersare Net New¹116 1M SubscriptionARR Customers¹5,000 Customers¹¹ As of Q2 2021² Net retention rate is then calculated by dividing the aggregate Subscription ARR in the current period by the prior year period21 Informatica. Proprietary.
Single Platform – Multiple Customer JourneysAnalytics22Business 360Data Governance& Privacy Cloud data warehouses / lakes Customer experience Data governance Analytical workloads Digital supply chain Data privacy Operational workloads Single view – any entity Data democratization Informatica. Proprietary.
Kroger Works with Informatica toEnsure Available and Accurate DataPlatform Adoption Driving ARR GrowthAnalyticsWhy Informatica?Business 360EXPANDIntelligent Data Management CloudDATAINTEGRATION23API & APPINTEGRATION Informatica. Proprietary.DATAQUALITYMASTER DATAMANAGEMENTCUSTOMER &BUSINESS 360DATACATALOGGOVERNANCE& PRIVACY Clear view of product information Efficient transmission of user information Scale for Omni Channel Marketing Flexibility for changing strategies Exceptional availability and resiliency
IDMC Provides Sanofi with DataDriven Decision MakingPlatform Adoption Driving ARR GrowthAnalyticsWhy Informatica?Business 360 Data-driven culture Accelerated data and applicationintegrationEXPAND Intelligent Data Management CloudDATAINTEGRATION24API & APPINTEGRATION Informatica. Proprietary.DATAQUALITYMASTER DATAMANAGEMENTCUSTOMER &BUSINESS 360DATACATALOGInnovative cloud data warehouse andanalytics architectureGOVERNANCE& PRIVACY Streamlined data and analytics Holistic view of data across markets
Cloud MigrationOpportunity 550MMaintenance ARR¹As of Q2 2021Cloud Migration – Case StudyMaster DataManagementCloud DataIntegrationData CatalogData QualityTraditional DI(Migrated)Data Governance& PrivacyTraditional DI1.8xMigration upliftCustomer &Business 360TOTAL Q1 2021 ARR: 2.3M125Maintenance ARR represents the portion of ARR only attributable to our maintenance contracts Informatica. Proprietary.2.2XCDI 235K
Track Record of Customer Success93%116%Q2 2021 SUBSCRIPTIONRENEWAL RATE15/5RATING FROM 77%OF CUSTOMERS3Q2 2021 SUBSCRIPTION NRR255NPS4.7CSAT1 We compute the subscription renewal rate by assessing the value of annual subscription contracts that expire at the end of each period (denominator) and comparing this to the amount that we renewfor that set of expiring contracts (numerator). We typically allow for a grace period of up to six months past the original contract expiration quarter during which we engage in the renewal process beforewe report the contract as lost /inactive. This grace-period renewal amount has been an immaterial portion over the last three years. If there is an actual cancellation for a subscription contract, we countthat amount as removed from the numerator in that period.2 Subscription NRR compares the contract value for Subscription ARR from the same set of customers at the end of a period compared to the prior year.3 Based on transactional support case survey with a 17% response rate26 Informatica. Proprietary.“Outstanding CustomerService Experience”– J.D. POWERPeer Insights Customers’ Choice for DataIntegration (2021), GartnerStar Award for Innovation in Customer Success(2020), TSIAGlobal Rated Outstanding (2018, 2019), TSIA#1 in Customer Loyalty 12 years in a row (2006-2017),TNS Kantar#1 in Customer Experience (2017), TNS Kantar
Building a Great Business Begins with Our PeopleBest Place to Work—Employee Recognitionratings as of June 2021:4.396% CEO Approval Rating90% Recommend to Friend27 Informatica. Proprietary.
Seasoned Management Team with Proven ExpertiseEric BrownJitesh GhaiJohn SchweitzerAnsa SekharanEVP, Chief Financial OfficerEVP, Chief Product OfficerEVP, Chief Revenue OfficerEVP, Chief Customer Officer3 years with InformaticaBackground: Electronic Arts,McAfee, Polycom, MicroStrategy12 years with InformaticaBackground: Cisco, Solace,29West1 year with InformaticaBackground: Software AG, SAP,Oracle, Workday, DataStax25 years with InformaticaBackground: SybaseVineet WaliaErin AndreBrad LewisGraeme ThompsonEVP, Chief Strategy OfficerSVP, Chief HR OfficerSVP, Chief Legal OfficerSVP, Chief Information Officer5 years with InformaticaBackground: HPE, JuniperNetworks, Mercer2 years with InformaticaBackground: SRI International,Convergys, ABM5 years with InformaticaBackground: BlackRock,Fenwick & West, U.S. Attorney5 years with InformaticaBackground: Oracle,BEA Systems, Riverstone NetworksAmit WaliaChief Executive Officer8 years with InformaticaBackground: Symantec, Intuit,McKinsey & Co.28 Informatica. Proprietary.
Financial Overview
Foundations of Our SuccessCategory-defining CompanyLarge, Growing TAM 44BTAM Estimate¹PredictableRecurring Revenue 90%Q2 2021 Recurring Revenue2High GrowthSubscription ARRCloud Differentiation34%39%Q2 2021 YoY Subscription ARR Growth³Q2 2021 YoY Cloud ARR Growth 686M 264MQ2 2021 Subscription ARR³Q2 2021 Cloud ARRGrowth at ScaleProven Marginsand FCF Generation16%Q2 2021 YoY Total ARR Growth⁴ 1.24B25%Q2 2021 LTM Unlevered Free Cash Flow Margin(after-tax)⁶Q2 2021 Total ARR⁴30 Informatica. Proprietary.¹Total Addressable Market is an internal Informatica estimate based on the potential ARR per company times the total number of companies that we could sell to globally² Annual Recurring Revenue (ARR) represents the expected annual billing and revenue amounts from all active maintenance and subscription agreements³ Subscription ARR represents the portion of ARR only attributable to our subscription contracts⁴ Annual Recurring Revenue (ARR) represents the expected annual billing and revenue amounts from all active maintenance and subscription agreements⁵ Subscription NRR compares the contract value for Subscription ARR from the same set of customers at the end of a period compared to the prior year⁶ Unlevered free cash flow margin is a non-GAAP financial measure. See appendix for reconciliation to most directly comparable GAAP measure
Strong Execution During TransformationTotal ARR Grew StronglyDriven by Subscription ARR 1,240Driven by New Products 68615%PowerCenter14%CAGR42%CAGR 60885%non-PowerCenterproducts 992015Q2 20212015Q2 2021 1B of cumulative R&D spend for last 5 yearsDollars in millions, except where indicated otherwise31 Informatica. Proprietary.
Business is Primarily Recurring RevenueGAAP Revenue BreakdownRecurring Revenue is Now 90% of Total RevenueTotal GAAPRevenue: 1.4B 1,37911% 1,074Subscription 93Services 130License 366 659Non-recurring 101 5589%RecurringMaintenance 4842015Dollars in millions.32 Informatica. Proprietary.46%54% 564Q2 2021LTM2015Q2 2021LTM
Accelerating ARR Growth at ScaleTotal ARR 1,160 906 1,240 1,021 553 608 554Majority of ARR fromsubscriptionSubscription growth ratedriven by product portfolioinnovation and othercommercial initiatives 575Maintenance 596 509 686 607 310Subscription 992015Subscription ARR % TotalTotal ARR YoY Growth RateDollars in millions.33 446 Informatica. Proprietary.201834%15%2019202044%13%52%14%Q2 202155%16%Maintenance declining YoYwith migration to cloudemerging as a net newopportunity for subscriptionSubscription NRR hasincreased from 113% in2019, 114% in 2020, and116% as of Q2 2021
High Growth Subscription ARRSubscription ARR 686 607Subscription revenue issubject to ASC 606 andsubscription mix variances 446 310 992015Subscription ARR YoY GrowthDollars in millions.34 Informatica. Proprietary.2018We believe Subscription ARRis a better indicator ofbusiness growth20192020Q2 202144%36%34%
Cloud ARR Growth Accelerating at ScaleCloud ARR 264 240Cloud ARR growthaccelerating with a Q2 2021YoY growth rate of 39% 227Cloud ARR growth continuesto accelerate YoY driven byexpanded IDMC offerings andsupported by the macro trendof cloud modernization 200 189 176Q1 2020Cloud ARR YoY Growth 18%Dollars in millions.35 Informatica. Proprietary.Q2 202024%Q3 202027%Q4 202036%Q1 2021Q2 202136%39%
Cloud Migration OpportunityTotal ARRCloud Migration 1.24BOver next fewyears, selfmanaged likelyto start migratingto cloudCloud 264Self-ManagedSubscription 422Maintenance 554Q2 2021Dollars in millions.36 Informatica. Proprietary.1%CloudMigration99%MaintenanceARRQ4 2020 to Q2 2021To date, Cloud and Selfmanaged subscription growthdriven by new products andnew workloadsMigration of maintenance toCloud IDMC just beginning(1% of installed base)Initial migrations indicate thatmaintenance ARR converts tocloud ARR at a 1.8x ratio
Cloud is Driving Expanding Net Retention RateRenewal RatesMaintenanceRenewal RateSubscriptionRenewal Rate95%92%202037 Informatica. Proprietary.Subscription Net Retention Rate94%Subscription NetRetention Rate113%114%116%2020Q2 2021106%93%Q2 202120182019
Positive ASP Trends in Subscription BusinessCustomers 1M Subscription ARRCAGR: 79%Average Subscription ARR per Subscription Customer116CAGR: 32%104 198k 183k 139k66 98k272018382019 Informatica. Proprietary.2020Q2 2021201820192020Q2 2021
Consistent High Non-GAAP Gross Profit MarginsDespite Mix ShiftNon-GAAP Gross Profit Margin¹Consistent gross marginsdespite the continued shiftfrom maintenance tosubscription ARRTotalGross MarginIncreasing despite an increasingmix of cloud versus on-premises84%84%83%20182019¹ See appendix for reconciliation to most directly comparable GAAP measure39 Informatica. Proprietary.83%2020Q2 2021 LTM
Continued Investment in Business Driving InnovationThrough TransitionG&A, S&M, and R&D TrendsNon-GAAPOperating 7%6%6%7%201820192020¹ See appendix for reconciliation to most directly comparable GAAP measure.4028% Informatica. Proprietary.Q2 2021 LTMConsistent Operating Marginperformance despite mix shift
Adjusted EBITDA and Unlevered FCF Ramping asSubscription Transition Nears CompletionAdjusted EBITDA¹ and EBITDA Margin27% 337M26%Unlevered Free Cash Flow and Margin (after-tax)²30%29% 400M 407M 335M26%14%26% 339M 315M25% 352MStrong and expanding adjustedEBITDA and unlevered freecash flow margins despite themix shift from perpetual licenseto subscription 184M201820192020Q2 2021 LTM141 Informatica. Proprietary.201820192020Q2 2021 LTMAdjusted EBITDA is non-GAAP Adjusted EBITDA and is calculated as GAAP operating income/(loss) as adjusted for stock-based compensation, amortization of intangibles,equity compensation related payments, one-time fees related to acquisitions, costs related to discrete payments for legal settlements, restructuring costs and executiveseverance, one-time impairment on restructured facilities, sponsor-related costs and depreciation.² Unlevered Free Cash Flow (after-tax) is calculated as operating cash flow less purchases of property and equipment, and is adjusted for interest payments, equity compensationpayments, sponsor management fees, legal settlements, restructuring costs, and executive severance
Long-term Target Model (Non-GAAP)% of Total Revenue / ARR42FY2019FY2020Long-termSubscription ARR %44%52% 90%Gross Margin83%84%82-84%Sales and Marketing36%33%24-26%Research & Development17%17%14-16%General & Administrative6%6% 5%Non-GAAP Op. Inc.24%28%36-39%uFCF (after-tax)14%26%30-32% Informatica. Proprietary.
Q3 2021 Preliminary ResultsQ3 2021Q3 2020LowHighYoY Growth(Estimated)(Estimated)(Mid-Point of Estimate) 1,099 1,264 1,30417%Subscription ARR 541 719 74936%Cloud ARR 200 278 29844%Revenue 327 349 37511%Adjusted EBITDA 107 95 110(4)%Subscription Net Retention Rate113%115%116%--Total ARRAll metrics are in millions, unless indicated otherwise.See our preliminary prospectus under “Prospectus Summary-Preliminary Estimated Financial Results for the Three Months ended September 30, 2021” for more information.Adjusted EBITDA is a non-GAAP financial measure. See appendix for reconciliation to most directly comparable GAAP measure.43 Informatica. Proprietary.
Q2 and Q3 2021 YoY Growth Rates44%39%36%34%Key Growth PillarsAccelerate Cloud ARR with New Products and CLAIRE Innovation17%16%11%9%Consumption Model Leveraged to Cloud Data TailwindsQ2Q3Total RevenueQ2Q3Total ARR1Q2Q3Q22Subscription ARRQ3Cloud ARRQ2 and Q3 2021 Percentages of Total ARR55%Continue to Increase NRR57%Massive, Untapped Maintenance Conversion Upside22%21%Unlevered FCF Margin ExpansionQ2Q3Subscription ARR44Q2Q3Cloud ARRProprietary Informatica. Proprietary.Q3 2021 metrics represent the mid-point of estimate ranges.¹ Annual Recurring Revenue (ARR) represents the expected annual billing and revenue amounts from all active maintenance and subscription agreements2 Subscription ARR represents the portion of ARR only attributable to our subscription contracts
Appendix
Appendix – FinancialsFinancial MetricsSubscription ARRMaintenance ARR20192020310596446575607553Q2 2021LTM686554 1,160 1,240Total ARR 906LicenseSubscription2411436355303472594659 544 615 657 714574572561564111685119691105666101665 1,323 1,379Total Software RevenueMaintenanceProfessional ServicesTotal Services RevenueTotal Revenue462018 1,228 1,021 1,307Recurring Revenue (% of Total)71 %80 %87 %89 %Non-GAAP Subscription Gross MarginNon-GAAP Total Gross Margin88 %84 %90 %83 %91 %84 %90 %Sales and Marketing (% of Revenue)Research and Development (% of Revenue)General and Administrative (% of Revenue)35 %36 %33 %32 %16 %7%17 %6%17 %6%17 %7%Non-GAAP Adjusted EBITDA 337 335 400 407Non-GAAP Operating Margin26 %24 %28 %28 %Unlevered Free Cash Flow (pre-tax) 332 224 364 412 Informatica. Proprietary.83 %
Appendix – Other MetricsMaintenance Renewal Rates95 %95 %95 %2Q 2021LTM94 %Subscription Renewal Rates82 %88 %92 %93 %Subscription Net Retention Rate106 %113 %114 %116%Net Retention Rate (excluding DaaS)110%118%120 %n/a2766104116 98 139 183 198% in North America44 %41 %39 %37 %% Outside North America56 %59 %61 %63 %% in India32 %35 %40 %42 %Renewal Rates201820192020ARR Customer Detail MetricsCustomers 1mm Subscription ARRAverage ARR per Subscription Customer ( k)Headcount MetricsProduct ARR Metrics47Data Catalog ARR CAGR ('18-'20) 100%Data Governance & Privacy ARR CAGR ('18-'20) 25%MDM ARR CAGR ('18-'20) 25%Cloud DI & App Integration ARR CAGR ('18-'20) 20%Data Quality ARR CAGR ('18-'20) 10%Traditional DI ARR CAGR ('18-'20) 5% Informatica. Proprietary.
Appendix – GAAP to Non-GAAP Profit Reconciliation SummaryTotal Revenue20192020Q2 2021LTM 1,228 1,307 1,323 1,379 1,062 884 968 1,005Add: Stock-based compensation1211Add: Amortization of intangibles1441169887Total gross profit on a GAAP basis-430Non-GAAP total gross profit 1,028 1,089 1,107 1,151Non-GAAP total gross margin84%83%84%83% 1,228(168)(44)(5)14624(40)73701222 31426% 1,307(183)(23)(4)1621(17)153243412 31224% 1,323(168)(22)(2)1503726122881832622 37228% 1,379(89)(1)(2)14611411269112422 38028%22 33727%23 33526%28 40030%27 40729%Add: Equity compensation paymentsTotal RevenueGAAP Net LossAdd: Income tax pr
IDC Worldwide Business-to-Business Integration Middleware and Managed File Transfer Software Forecast, 2021-2025 (July 2021, #US46382421) IDC Semiannual Software Tracker, 2020H2, May 13, 2021 . Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only .
