Informatica Inc at Cantor Global Technology Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Thomas Blakey - Cantor Fitzgerald - Analyst : So maybe, just without further ado, you just reported the fourth-quarter earnings. Maybe for those who weren't able to listen to the call, what were you pleased with and what did not unfold as expected?

Question: Thomas Blakey - Cantor Fitzgerald - Analyst : Of course. Thank you. Thank you. Thank you for being so generous with your time.

Question: Thomas Blakey - Cantor Fitzgerald - Analyst : That's an interesting jump-off point there, Mike. What are the -- these renewal trends seem to be spooked. The shares, obviously, is -- we got some inbound on there from questions from investors. What -- it seems like, if it's idiosyncratic, renewal rates are sometimes extrapolated in Excel, right? So talk to us about what you expect in terms of continued trends in the calendar '25 with regard to this metric. You talk about, you could go back and sell that customer, or this was an idiosyncratic loss, or -- because renewal rates are sometimes maybe even are unfairly extrapolated.

Question: Thomas Blakey - Cantor Fitzgerald - Analyst : Interesting.

Question: Thomas Blakey - Cantor Fitzgerald - Analyst : Right. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 11, 2025 / 5:40PM, INFA.N - Informatica Inc at Cantor Global Technology Conference

Question: Thomas Blakey - Cantor Fitzgerald - Analyst : Could you maybe double-click on that? That's an interesting point about -- and maybe nothing even specific. Just, what can you do? Lik, if I'm a customer, and you labeled it as idiosyncratic before, but now we're talking about the next customers -- or maybe it's back to that customer. Like you said, there's an opportunity at that existing customer. It seems like there's a few -- there's always a myriad of opportunities to go back and try to change renewal rates. What are you doing precisely or -- with the go-to-market changes there?

Question: Thomas Blakey - Cantor Fitzgerald - Analyst : For the exi -- for the customer who has (multiple speakers).

Question: Thomas Blakey - Cantor Fitzgerald - Analyst : So that sounds pretty real time, if I'm understanding correctly. And these things are probably galvanizing pretty quickly. Again, just as a remedial spectator here. What are you seeing? I mean you'll give us some anecdotes in terms of what you're seeing, hey, I've raised my hand as a flag, you helicopter in with me, and what are you seeing?

Question: Thomas Blakey - Cantor Fitzgerald - Analyst : So let's shift back to something a little bit more fun to talk about, in terms of your cloud business. Very successful. You talked about the fast growth rates, you talked about the solid NRR and the expansion rates therein. I've always been interested in the growth from expansion deals and net new logos. We can talk about that as well. But just along the lines of that kind of color, talk about what you're seeing in terms of cloud migrations. And we can start higher level and talk about what's kind of driving those. But I'd love to kind of double-click in terms of, from a sustainable perspective, how that net expansion of -- that expansion business and new logo business has been growing.

Question: Thomas Blakey - Cantor Fitzgerald - Analyst : And that's up.

Question: Thomas Blakey - Cantor Fitzgerald - Analyst : What kind of -- what difference is that? What kind of relative difference is that?

Question: Thomas Blakey - Cantor Fitzgerald - Analyst : 20%. Wow.

Question: Thomas Blakey - Cantor Fitzgerald - Analyst : Is there something that's happening, some dynamic that's happening in the market that's pulling in the modernization? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 11, 2025 / 5:40PM, INFA.N - Informatica Inc at Cantor Global Technology Conference

Question: Thomas Blakey - Cantor Fitzgerald - Analyst : That $900 million, a lot of software vendors will give a statistic about moving, modernizing software, you have to get rid of hardware, you have to get rid of labor. Is there a money multiplier that you've offered in the past about the $900 million moving on-prem? And then related to that, I believe, why would you not, as a firm, as a vision, just change incentives there for the customer, make it economic in some way for the firm itself to kind of hasten that migration?

Question: Thomas Blakey - Cantor Fitzgerald - Analyst : Very clear answer. Just double-clicking on the 1.5 to 1.7, I don't want to mischaracterize, is there a -- this sounds like pretty in-depth research that you've done at the firm, I got to admit. Is there a -- the only word that keeps coming to mind, Mike, while you were talking was quality -- s there a different -- is this -- you can characterize the word differently, please, for me. But is there a lower quality of workload coming on to the Informatica cloud at this particular juncture? And if that's the case, why?

Question: Thomas Blakey - Cantor Fitzgerald - Analyst : Because I would think -- lower quality defined by me is just used less --

Question: Thomas Blakey - Cantor Fitzgerald - Analyst : Maybe stop and pause here for the audience, if there's any questions? Unidentified Participant Can I ask a technology question and a finance question? I'll start with the technology first. (inaudible) Q&A in the past quarter, you mentioned about data integration, there should be more of that. Have you seen that coming in as part of the competition? I know you guys [can back it up], but was wondering what you see outside of things. And then for the finance side, I know you touched upon it earlier, that customer will migrate from on-premise to cloud whenever they're ready. Obviously, your cloud business has grown really fast, 24% guidance, 25%, fiscal '25. You have a great balance sheet as well as free cash flow margin here. I was wondering, why don't you just do the rip-the-Band-Aid approach, where you're investing more in the go-to-market team, as well as your customers to, hey, can you migrate to cloud this way? That will be great for us. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 11, 2025 / 5:40PM, INFA.N - Informatica Inc at Cantor Global Technology Conference

Question: Thomas Blakey - Cantor Fitzgerald - Analyst : Any more questions from the audience? Maybe we'll just shift to AI. I mean Informatica benefits from AI, you've been at the epicenter of data in general. But maybe just double-click on that kind of higher-level statement. What are -- you've given a lot of examples here in terms of the forensics, in terms of the usage and the yellow flags and the renewals. I'm just very impressed with what you guys are doing to look inside the usage of your product. Help us understand, take -- use this as an opportunity to help us understand what Informatica is being used for currently with AI and what the current trends you're seeing maybe heading into '25 here.

Question: Thomas Blakey - Cantor Fitzgerald - Analyst : They're connectors to look at other platforms.

Question: Thomas Blakey - Cantor Fitzgerald - Analyst : That's not the CLAIRE side, that's the --

Question: Thomas Blakey - Cantor Fitzgerald - Analyst : And not to be pedantic, you're saying gen AI, but this is also related to agentic AI. Is that accurate?

Question: Thomas Blakey - Cantor Fitzgerald - Analyst : Because you have connectors and -- okay.

Question: Thomas Blakey - Cantor Fitzgerald - Analyst : Okay. Because from a strategic perspective, we get a lot of questions from investors, and we think about it ourselves, like what does the AI data stack look like in the future? Going to be something of the hyperscalers and all being still S3 and blob? I mean, and there'll be some sort of layers? We've been through 20 to 30 years of software iterations here, and middleware, we used a term that isn't really used anymore. So where -- back to that forensics, where are you kind of seeing -- you said you haven't baked any of this into '25, so that's a positive. But what's the likelihood or where are you kind of seeing initial trials where Informatica has given you the confidence that they will be part of that future AI-related data stack?

Question: Thomas Blakey - Cantor Fitzgerald - Analyst : That's a great place to end. Oh, you might have to take -- okay. Unidentified Participant Back to that expansion metric, that net new metric, 8%. Can you discuss like that 8% growth of net new customer, who do you guys face in terms of new logo, and then (inaudible)?

Question: Thomas Blakey - Cantor Fitzgerald - Analyst : Michael, thank you very much for your time.