Informatica Focuses On Vertical Specific Offerings For Growth
Photo Credit: Gerd Altmann from Pixabay
According to a recent report, the global enterprise data management market is expected to grow at 14% CAGR from 2022 to 2030. Redwood Shores-based Informatica (NYSE: INFA) is a leading player in the market that is delivering vertical-specific offerings to expand its market presence.
Informatica’s Financials
For the first quarter, Informatica’s revenues grew 9% to $362.3 million, and the loss per share was $0.20.
Subscription revenues grew from $157.5 million a year ago to $197.7 million and during the same period, perpetual license revenues reduced from $9.2 million to $2.6 million.
Informatica forecast revenues of $358-$368 million for the second quarter and $1.585-$1.605 billion for the fiscal year.
Informatica’s Growth
Recently, Informatica announced its partnership with Oracle that will combine Informatica’s data integration and governance products with Oracle Cloud Infrastructure. The partnership will deliver cloud data management, integration, and governance solutions for databases, data warehouse, data lakes, data lakehouses, enterprise analytics, and data science. It will also facilitate data platform modernization by moving on-premise workloads to OCI, allowing customers to gain insights from trusted data at scale and leverage their existing skills and investments.
It also announced the expansion of its partnership with Snowflake that will provide integrations to its native governance features through Informatica’s Cloud Data Governance and Catalog service. Key benefits for customers from the partnership include providing a single “pane of glass” view into data governance, streamlined access controls, and end-to-end lineage across the enterprise.
The company also continues to announce several new product upgrades. Recently, it expanded its collaboration with Microsoft which includes the private preview of a SaaS version of Informatica’s Master Data Management (MDM) on Microsoft Azure. The new service will enable joint customers to rapidly combine and rationalize hundreds of data sources into a single version of truth for all of their critical business operations for all business areas. Informatica’s SaaS MDM for Azure will be available for purchase on the Azure Marketplace.
Additionally, Informatica recently released several vertical-focused offerings. It announced the Intelligent Data Management Cloud (IDMC) for Healthcare and Life Sciences with new cloud-first, cloud-native capabilities designed to build digital-first experiences for connected patient care. The cloud-neutral, AI-powered, data management platform will provide healthcare companies with the ability to ingest, manage and govern data in a hybrid, multi-cloud environment. The solution offers connectivity to healthcare solutions such as MedPro, Salesforce, NPI data, Veeva, and many more, and also comes with out-of-the-box, healthcare industry-specific extensions.
It also released a similar offering for the retail sector earlier in the year. The IDMC for Retail is also a cloud-first, cloud-native solution built to help the retail industry drive innovation and business value by addressing industry-specific challenges related to data fragmentation, data complexity, and lack of connected experiences in a multi-cloud, hybrid environment. The solution is expected to improve customer profiles with consistent and complete information, increase self-service capabilities, improve supply chain and inventory management capabilities, and drive improved customer experiences.
Its stock is currently at $21.64 per share with a market capitalization of $6.05 billion. It hit a 52-week high of $40.13 in December last year and a 52-week low of $16.20 in March. Informatica was originally a $75,000 research grant funded project that went on to raise $13.5 million in funding before it went public in 1999. In 2015, it was acquired by Permira, an international private equity firm, and Canada Pension Plan Investment Board, a global investment management organization for an estimated $5.3 billion. Last October, Informatica went public again, and raised $841 million at a valuation of $7.9 billion.
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Disclosure: All investors should make their own assessments based on their own research, informed interpretations, and risk appetite. This article expresses my own opinions based on my own research ...
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