Informatica posted better-than-expected third quarter financial results, raised its full year guidance, announced a 10% staff reduction and unveiled a new $200 million stock repurchase plan.
Informatica CEO Amit Walia said the company has made considerable progress in the business model transition, and has decided to adjust its head count to reflect a more unified approach to selling its software. The result: a plan to cut the workforce by about 545 positions. Informatica said the cuts will save about $70 million a year on a non-GAAP basis in 2024. The plan will result in $35 million to $45 million in one-time charges.
Informatica posted revenue for the quarter of $408.6 million, up 10% from a year ago, and ahead of the Street consensus forecast of $401 million as tracked by FactSet. On both a GAAP and an adjusted basis, the company earned 27 cents a share, four cents above the Street consensus. Annualized subscription revenue was $1.08 billion, up 15% from a year ago, while annualized cloud subscription revenue improved 37%, to $550 million.