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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________
FORM 10-Q
_____________________________
(Mark One)
xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2022
OR
oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 001-40936
_____________________________
Informatica Inc.
_____________________________
(Exact name of registrant as specified in its charter)
Delaware61-1999534
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer Identification No.)
2100 Seaport Boulevard
Redwood City, California
94063
(Address of Principal Executive Offices)(Zip Code)
(650) 385-5000
Registrant's telephone number, including area code
_____________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A Common Stock, $0.01 par value per shareINFAThe New York Stock Exchange
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days.    Yes   x   No  o
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x   No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated fileroAccelerated filero
Non-accelerated filerxSmaller reporting companyo
Emerging growth companyo
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o No x
The registrant had outstanding 235,969,318 shares of Class A common stock and 44,049,523 shares of Class B-1 common stock as of May 3, 2022.


TABLE OF CONTENTS



SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q (this “Report” or “report”) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act), which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements contained in this Report include, but are not limited to, statements about:
our ability to attract new customers;
our ability to retain existing customers;
our ability to upsell and cross-sell within our existing customer base;
the possible harm caused by customers terminating or failing to renew their subscription contracts;
the possible harm caused by customers terminating or failing to renew their maintenance contracts;
the possible harm caused by significant disruption of service or loss of unauthorized access to users’ data;
our ability to prevent serious errors or defects in our products and services;
our expectations and management of future growth;
our ability to transition our customers to subscription-based offerings;
the demand for our platform or data management solutions in general;
the possible harm caused by the COVID-19 pandemic and its impact on our business, our employees, and our customers;
the possible harm caused by adverse economic, industry and market conditions in the United States and globally, including due to inflationary pressures and the military conflict between Russia and Ukraine, and its impact on our business and operations;
our ability to compete successfully in competitive markets;
our ability to respond to rapid technological changes;
our future financial performance, including trends in revenue, costs of revenue, gross profit or gross margin, and operating expenses;
our ability to protect our brand;
the demand for cloud-based solutions;
our ability to attract and retain key personnel and highly qualified personnel;
our ability to effectively train and incentivize our sales force;
our ability to successfully execute our go-to-market strategy;
our ability to manage our international expansion;
our ability to build and maintain relationships with strategy partners;
our ability to maintain, protect, and enhance our intellectual property;
our ability to achieve or maintain profitability;
our ability to manage our outstanding indebtedness;
our ability to successfully identify, acquire, and integrate companies and assets;
our ability to offer high-quality customer support; and
the increased expenses associated with being a public company.


We caution you that the foregoing list may not contain all of the forward-looking statements made in this Report.
You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Report primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described in the section titled “Risk Factors” and elsewhere in this Report. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Report. We cannot assure you that the results, events and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements.
The forward-looking statements made in this Report relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Report to reflect events or circumstances after the date of this Report or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments we may make.

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this Report, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.


Part I - Financial Information
Item 1. Financial Statements
INFORMATICA INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and par value data)
March 31,December 31,
20222021
(Unaudited)
Assets
Current assets:
Cash and cash equivalents
$545,301 $456,378 
Short-term investments
32,464 40,045 
Accounts receivable, net of allowances of $3,726 and $4,644, respectively
253,043 432,266 
Contract assets, net
118,705 109,269 
Prepaid expenses and other current assets
151,559 133,832 
Total current assets
1,101,072 1,171,790 
Restricted cash
 1,718 
Property and equipment, net
171,535 177,409 
Operating lease right-of-use-assets
71,387 74,789 
Goodwill
2,367,202 2,380,752 
Customer relationships intangible asset, net
908,859 948,556 
Other intangible assets, net
67,055 78,899 
Deferred tax assets
11,949 13,196 
Other assets
133,063 139,154 
Total assets
$4,832,122 $4,986,263 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$32,683 $41,755 
Accrued liabilities
47,724 74,763 
Accrued compensation and related expenses
76,904 171,978 
Current operating lease liabilities
18,183 18,505 
Current portion of long-term debt
18,750 14,063 
Income taxes payable
 7,211 
Contract liabilities
579,040 613,336 
Total current liabilities
773,284 941,611 
Long-term operating lease liabilities
58,836 62,519 
Long-term contract liabilities
23,583 28,651 
Long-term debt, net
1,833,513 1,837,408 
Deferred tax liabilities
98,867 104,788 
Long-term income taxes payable
25,701 23,833 
Other liabilities
3,567 3,777 
Total liabilities
2,817,351 3,002,587 
Commitments and contingencies (Note 12)
Stockholders’ equity:
Class A common stock; $0.01 par value per share; 2,000,000,000 and 2,000,000,000 shares authorized as of March 31, 2022 and December 31, 2021, respectively; Total of 235,862,806 and 234,189,069 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively
2,360 2,343 
Class B-1 common stock; $0.01 par value per share; 200,000,000 and 200,000,000 shares authorized; 44,049,523 and 44,049,523 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively
440 440 
Class B-2 common stock; $0.00001 par value per share, 200,000,000 and 200,000,000 shares authorized; 44,049,523 and 44,049,523 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively
  
Additional paid-in-capital
3,141,447 3,093,232 
Accumulated other comprehensive income
3,224 17,151 
Accumulated deficit
(1,132,700)(1,129,490)
Total stockholders’ equity
2,014,771 1,983,676 
Total liabilities and stockholders’ equity
$4,832,122 $4,986,263 
See accompanying notes to condensed consolidated financial statements
1

INFORMATICA INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended March 31,
20222021
Revenues:
Subscriptions$197,747 $157,542 
Perpetual license2,672 9,216 
Software revenue200,419 166,758 
Maintenance and professional services161,928 166,955 
Total revenues362,347 333,713 
Cost of revenues:
Subscriptions24,704 18,309 
Perpetual license153 1,027 
Software costs24,857 19,336 
Maintenance and professional services49,805 39,494 
Amortization of acquired technology9,137 18,599 
Total cost of revenues83,799 77,429 
Gross profit278,548 256,284 
Operating expenses:
Research and development75,123 59,904 
Sales and marketing128,952 108,526 
General and administrative29,574 26,285 
Amortization of intangible assets38,661 43,226 
Restructuring, acquisition and other charges 333 
Total operating expenses272,310 238,274 
Income from operations6,238 18,010 
Interest income366 280 
Interest expense(12,825)(35,799)
Other income, net4,220 16,325 
Loss before income taxes(2,001)(1,184)
Income tax expense1,185 811 
Net loss$(3,186)$(1,995)
Net loss per share attributable to Class A and Class B-1 common stockholders:1
Basic$(0.01)$(0.01)
Diluted$(0.01)$(0.01)
Weighted-average shares used in computing net loss per share:1
Basic278,772 244,500 
Diluted278,772 244,500 
See accompanying notes to condensed consolidated financial statements.







1Amounts for periods prior to the completion of the restructuring transactions on September 30, 2021 have been retrospectively adjusted to give effect to the restructuring transactions described in Note 1 Organization and Description of Business in the Notes to our Condensed Consolidated Financial Statements.
2

INFORMATICA INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(In thousands)
(Unaudited)
Three Months Ended March 31,
20222021
Net loss
$(3,186)$(1,995)
Other comprehensive loss, net of taxes:
Change in foreign currency translation adjustment, net of tax expense of $(12) and $(162)
(19,074)(20,480)
Cash flow hedges:
Change in unrealized gain, net of tax expense of $(1,312) and $(97)
3,991 298 
Less: reclassification adjustment for amounts included in net loss, net of tax benefit of $380 and $1,045
1,156 3,216 
Net change, net of tax expense of $(1,692) and $(1,142)
5,147 3,514 
Total other comprehensive loss, net of tax effect
(13,927)(16,966)
Total comprehensive loss, net of tax effect
$(17,113)$(18,961)
See accompanying notes to condensed consolidated financial statements.
3

INFORMATICA INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(In thousands)
(Unaudited)

Three Months Ended March 31, 2022
Class A Common StockClass B-1 Common StockClass B-2 Common StockAdditional
Paid-in
Capital
Accumulated
Other
Comprehensive
Income
Accumulated
Deficit
Total Stockholders'
Equity
Shares
Amount
Shares
Amount
Shares
Amount
Balances, December 31, 2021
234,189 $2,343 44,050 $440 44,050 $ $3,093,232 $17,151 $(1,129,490)$1,983,676 
Stock-based compensation
— — — — — — 29,882 — — 29,882 
Issuance of shares under employee stock purchase plan
801 8 — — — — 13,636 — — 13,644 
Issuance of shares upon exercise of vested options and RSUs873 9 — — — — 4,697 — — 4,706 
Net income
— — — — — — — — (3,186)(3,186)
Other comprehensive loss
— — — — — — — (13,927)— (13,927)
Payments for dividends related to Class B-2 shares— — — — — — — — (24)(24)
Balances, March 31, 2022
235,863 $2,360 44,050 $440 44,050 $ $3,141,447 $3,224 $(1,132,700)$2,014,771 

Three Months Ended March 31, 2021
Class A Common Stock1
Class B-1 Common Stock1
Class B-2 Common Stock1
Additional
Paid-in
Capital1
Accumulated
Other
Comprehensive
Income
Accumulated
Deficit
Total
Stockholders’ Equity
Shares
Amount
Shares
Amount
Shares
Amount
Balances, December 31, 2020
200,417 $2,004 44,050 $440 44,050 $ $2,145,254 $43,295 $(1,024,406)$1,166,587 
Stock-based compensation
— — — — — — 2,577 — — 2,577 
Repurchase of shares
(44)(1)— — — — (439)— (313)(753)
Payment for taxes related to net share settlement of equity awards
— — — — — — (116)— — (116)
Issuance of shares
103 1 — — — — 902 — — 903 
Net loss
— — — — — — — — (1,995)(1,995)
Other comprehensive loss
— — — — — — — (16,966)— (16,966)
Balances, March 31, 2021
200,476 $2,004 44,050 $440 44,050 $ $2,148,178 $26,329 $(1,026,714)$1,150,237 




See accompanying notes to condensed consolidated financial statements.


1Amounts for periods prior to the completion of the restructuring transactions on September 30, 2021 have been retrospectively adjusted to give effect to the restructuring transactions described in Note 1 Organization and Description of Business in the Notes to our Condensed Consolidated Financial Statements.

4

INFORMATICA INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended
March 31,
20222021
Operating activities:
Net loss
$(3,186)$(1,995)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization
5,727 6,345 
Non-cash operating lease costs
4,577 3,358 
Stock-based compensation
29,275 2,577 
Deferred income taxes
(6,145)(6,488)
Amortization of intangible assets and acquired technology
47,798 61,825 
Gain on sale of investment in equity interest
 (110)
Amortization of debt issuance costs
919 1,430 
Unrealized gain on remeasurement of debt
 (23,627)
Changes in operating assets and liabilities:
Accounts receivable
177,717 150,707 
Prepaid expenses and other assets
(4,485)(4,462)
Accounts payable and accrued liabilities
(126,339)(95,455)
Income taxes payable
(17,981)(8,941)
Contract liabilities
(37,722)(20,216)
Net cash provided by operating activities
70,155 64,948 
Investing activities:
Purchases of property and equipment
(644)(738)
Purchases of investments
(17,226)(9,859)
Maturities of investments
24,114 11,779 
Sale of investments in equity interest
 110 
Net cash provided by investing activities
6,244 1,292 
Financing activities:
Payments for share repurchases
 (753)
Payment of debt
 (5,932)
Proceeds from issuance of common stock under employee stock purchase plan
13,644  
Payments of offering costs
(505) 
Payments for dividends related to Class B-2 shares(24) 
Payments for taxes related to net share settlement of equity awards
 (116)
Payment of deferred and contingent consideration
 (9,023)
Net activity from derivatives with an other-than-insignificant financing element
(4,586)(4,619)
Proceeds from issuance of shares
4,706 903 
Net cash provided/ (used in) by financing activities
13,235 (19,540)
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash
(2,429)3,582 
Net increase in cash, cash equivalents, and restricted cash
87,205 50,282 
Cash, cash equivalents, and restricted cash at beginning of period
458,096 348,221 
Cash, cash equivalents, and restricted cash at end of period
$545,301 $398,503 
Supplemental disclosures:
Cash paid for interest
$13,678 $28,158 
Cash paid for income taxes, net of refunds
$25,311 $16,530 
Non-cash investing and financing activities:
Purchases of property and equipment recorded in accounts payable and accrued liabilities
$784 $384 
Deferred offering costs payable or accrued but not paid$1,580 $ 
See accompanying notes to condensed consolidated financial statements.
5


INFORMATICA INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Organization and Description of Business

Informatica Inc. (the “Company”) was incorporated as a Delaware corporation on June 4, 2021. The Company was formed as part of a series of restructuring transactions, which collectively had the net effect of reorganizing the corporate structure of Ithacalux Topco S.C.A. (“Ithacalux”), resulting in Informatica Inc. being the top-tier entity in that corporate structure rather than Ithacalux, a Luxembourg société en commandite par actions. On September 30, 2021, the Company completed these restructuring transactions, resulting in the Company becoming the owner of Ithacalux and its property, assets, debts and obligation. As Informatica Inc. did not have any previous operations, Ithacalux is viewed as the predecessor to Informatica Inc. and its consolidated subsidiaries. Accordingly, these condensed consolidated financial statements include certain historical condensed consolidated financial and other data for Ithacalux for periods prior to the completion of the business combination. Unless the context otherwise requires, references to “Informatica”, “we,” “us,” “our” and the “Company” mean Informatica Inc. and its consolidated subsidiaries for all periods presented.
As a result of the restructuring transactions, the shareholders of Ithacalux contributed their interests in Ithacalux to Informatica in exchange for an aggregate of 288,867,682 shares of Informatica’s common stock. 200,768,636 shares of Informatica’s common stock was designated Class A common stock, and 44,049,523 shares of the common stock was designated Class B-1 common stock, with an equal number (44,049,523 shares of the common stock) designated Class B-2 common stock. The number of shares of Class A common stock and Class B-1 and Class B-2 common stock issued was determined in accordance with the applicable provisions of the contribution agreement. Amounts for periods presented in the Report prior to the completion of the restructuring transactions on September 30, 2021 have been retrospectively adjusted to give effect to the restructuring transactions.

On October 29, 2021, the Company completed its initial public offering (the “IPO”), in which the Company issued and sold 29,000,000 shares of its Class A common stock at $29.00 per share. On November 10, 2021, the Company issued and sold an additional 4,350,000 shares of Class A common stock in connection with a full exercise of the underwriters’ option to purchase additional shares granted in the IPO. The Company generated a total of $967.2 million in gross proceeds, inclusive of the underwriter’s exercise of their option to purchase additional shares in the offering, and net proceeds of $915.7 million, after underwriting discounts and commissions of $51.5 million. The Company also incurred offering costs of $11.9 million in relation to the IPO.
The Company has developed an AI-powered software platform that connects, manages, and unifies data across multi-cloud, hybrid systems at enterprise scale. The platform enables the Company’s customers to accurately track and understand their data, allowing them to create 360-degree customer experiences, automate data operations across enterprise-wide business processes, and pursue holistic data-driven digital strategies by guiding workload migrations to the cloud. The Company’s platform includes a suite of interoperable data management products that leverage the shared services and metadata of the underlying platform, including products for Data Integration, API & Application Integration, Data Quality, Master Data Management, Customer and Business 360, Data Catalog and Governance and Privacy.
Note 2. Summary of Significant Accounting Policies
Basis of Presentation and Consolidation
The accompanying unaudited condensed consolidated financial statements include those of the Company and its subsidiaries, after elimination of all intercompany accounts and transactions. The Company has prepared the accompanying unaudited condensed consolidated financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) and pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”).

In management’s opinion, these unaudited condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and reflect all adjustments, which
6


INFORMATICA INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
include recurring adjustments necessary for the fair statement of the Company’s financial position as of March 31, 2022 and the results of operations for the three months ended March 31, 2022. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected for the full year or any other future interim or annual period.
Segment Reporting
The Company manages, monitors and reports its operating results and financial position as a single operating segment. The Company’s chief operating decision-maker (“CODM”) is its Chief Executive Officer who makes operating decisions, assesses financial performance and allocates resources based on consolidated financial information. As such, the Company has determined that it operates in one reportable segment.
Use of Estimates
The Company’s unaudited condensed consolidated financial statements are prepared in accordance with GAAP, which require management to make certain estimates, judgments, and assumptions. For example, management makes estimates, judgements and assumptions in determining the recoverability of intangible assets and their useful lives, standalone selling price (“SSP”) used in revenue recognition, the number of performance-based stock options and awards that the Company expects to vest, the realizability of deferred tax assets, uncertain tax positions, and the collectability of accounts receivable. Management believes the estimates, judgments, and assumptions upon which it relies are reasonable based on information available at the time that these estimates, judgments, and assumptions are made. These estimates, judgments, and assumptions can affect the reported amounts of assets and liabilities as of the date of the financial statements as well as the reported amounts of revenues and expenses during the periods presented. Any material differences between these estimates and actual results will impact the Company’s unaudited condensed consolidated financial statements. The Company assesses these estimates on a regular basis, however actual results could differ from estimates due to risks and uncertainties.
Revenue Recognition
The Company derives its revenue from sales of 1) cloud subscriptions, representing access to the Company’s software via Company-hosted cloud applications, 2) on-premises subscription licenses, representing a term license to on-premises software, 3) subscription support, representing support for on-premises subscription licenses, 4) perpetual software licenses, and 5) maintenance and professional services, consisting of maintenance on perpetual software licenses, and professional services, consisting of consulting and education services. The Company recognizes revenue net of applicable sales taxes, financing charges it has absorbed, and amounts retained by its partners (including resellers and distributors), if any. The Company does not act as an agent in any of its revenue arrangements.
Revenue is recognized and recorded in accordance with ASC 606, Revenue From Contracts with Customers (“ASC 606”) which generally requires the Company to recognize revenue when it satisfies performance obligations under the terms of its contracts, and control of its products is transferred to its customers in an amount that reflects the consideration the Company expects to receive from its customers and partners in exchange for those products. This process involves identifying the customer contract, determining the performance obligations in the contract, determining the transaction price, allocating the transaction price to the distinct performance obligations in the contract, and recognizing revenue when the performance obligations have been satisfied.
Performance obligations contained in a contract are identified based on the goods or services that will be transferred to the customer that are both (i) capable of being distinct, and the customer can benefit from the goods or services either on their own or together with other resources that are readily available from third parties or from the Company, and (ii) distinct in the context of the contract, and the transfer of the goods or services is separate from other promises in the contract. To the extent a contract includes multiple promised goods or services, the Company applies its judgment to determine whether the promised goods or services are capable of being distinct, and distinct in the context of the contract. The Company considers a performance
7


INFORMATICA INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
obligation satisfied once it has transferred control of a good or product to a customer, meaning the customer has the ability to use and obtain the benefit of the product.
Performance ObligationWhen Performance Obligation is Typically Satisfied
Subscription:
Cloud services and subscription supportOver Time: Ratably over the contractual term; commencing upon the later of when access to the service is made available or the contractual term commences
On-premises subscription licensePoint in Time: Upon the later of when the software license is made available or the contractual term commences
Perpetual licensePoint in Time: When the software license is made available
MaintenanceOver Time: Ratably over the contractual term
Professional servicesOver Time: As services are provided
Software revenue
Software revenue is comprised of 1) cloud services and subscription support, 2) on-premises subscription licenses, and 3) perpetual license revenue.
Cloud and subscription support offerings consist of revenue from customers and partners contracted to use the related services during a subscription period ranging from one to three years, are generally billed annually in advance, and are non-cancelable.
On-premises subscription license revenue primarily consists of revenue from customers and partners contracted to use software during a subscription term with terms ranging from one to three years. These arrangements are generally billed annually in advance during such multi-year terms.
Cloud services revenues include revenues from cloud services offerings, which deliver applications and infrastructure technologies via cloud-based deployment models for which we develop functionality, provide unspecified updates and enhancements, host, manage, upgrade, and support, and that customers access by entering into a subscription agreement with us for a stated period.
On-premises subscription license support revenues are generated through the sale of license support contracts sold together with the on-premises subscription license purchased by our customer. Subscription license support contracts provide customers with rights to unspecified software product upgrades, maintenance releases and patches released during the term of the support period and include internet access to technical content, as well as internet and telephone access to technical support personnel. Our subscription software licenses have significant standalone functionalities and capabilities. Accordingly, these subscription software licenses are distinct from the support services as the customer can benefit from the software without the services and the services are separately identifiable within the contract.
Perpetual license revenue consists of revenue from customers and partners for sales of perpetual software licenses, are generally billed upfront along with the associated maintenance. The maintenance associated with perpetual licenses is classified within maintenance and professional services.
Maintenance and Professional Services
Maintenance and professional services are comprised of maintenance, consulting, and education services. Maintenance contracts, which consist of ongoing support and software updates, if and when available, under perpetual software license arrangements, are typically one year in duration. Our perpetual software licenses have significant standalone functionalities and capabilities. Accordingly, these perpetual software licenses are distinct from the support services as the customer can benefit from the software without the services and the services are separately identifiable within the contract. Maintenance contracts are generally billed annually in advance. Nearly all of our customers elect to renew their maintenance contracts annually.
8


INFORMATICA INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Consulting services are primarily related to configuration, installation, and implementation of the Company’s products, and are generally performed on a time-and-materials basis. Revenue for fixed fee contracts are generally recognized as services are performed, applying input methods to estimate progress to completion. If uncertainty exists about the Company’s ability to complete the project, its ability to collect the amounts due, or in the case of fixed-fee consulting arrangements, its ability to estimate the remaining costs to be incurred to complete the project, revenue is deferred until the uncertainty is resolved. Consulting services are generally either billed in advance or monthly as services are rendered. Consulting services, if included as part of the software arrangement, generally do not entail significant modification or customization of the software and hence, such services are not considered essential to the functionality of the software.
Education services consist of classes offered at the Company’s headquarters, sales and training offices, customer locations, and on-line. Revenue is recognized as the classes are delivered. Education services are generally either billed in advance or as services are rendered.
Contracts with multiple performance obligations
Some of the Company’s contracts with customers contain multiple performance obligations. For these contracts, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative SSP basis and revenue is recognized when (or as) the Company satisfies each performance obligation by transferring control of the promised goods or services to the customer.
The determination of SSP requires judgement and is established for performance obligations that are routinely sold separately, such as support and maintenance on the Company’s core offerings. In connection with its cloud services, on-premises subscription licenses, and on-premises perpetual licenses, the Company is unable to establish SSP based on observable prices given the products are sold for a broad range of amounts (that is, the price is highly variable), and a representative SSP is not discernible from past transactions or other observable evidence. As a result, the SSP for cloud services offerings, on-premises subscription licenses, and on-premises perpetual licenses, included in a contract with multiple performance obligations, is determined by applying a residual approach whereby all other performance obligations within a contract are first allocated a portion of the transaction price based upon their respective SSPs, with any residual amount of transaction price allocated to cloud services, on-premises subscription licenses, and on-premises perpetual licenses.
Contract balances
The timing of revenue recognition, billings, and cash collections results in contract assets (both billed accounts receivable, where the Company has an unconditional right to contract consideration subject only to the passage of time, and unbilled receivables), and contract liabilities (deferred revenue and customer deposit liabilities) on the Company’s accompanying condensed consolidated balance sheets.
Accounts receivable
The timing of revenue recognition may differ from the timing of invoicing customers. Accounts receivables as reported on the accompanying condensed consolidated balance sheets, includes the unconditional amounts owed from customers comprising amounts invoiced, net of an allowance for credit loss. A receivable is recognized in the period products are delivered or services are provided, or when the right to payment is unconditional. Payment terms on invoiced amounts are typically between 30 and 60 days, therefore the contracts do not include a significant financing component. Also, they typically do not involve a significant amount of variable consideration as they represent stated prices.
Contract Assets
Contract assets represent reported revenues attributable to performance obligations that have been satisfied, but such amounts remain unbilled due to certain remaining conditions under the contract not yet being met. Contract assets are primarily driven by sales of on-premises subscription licenses with 2-3 year
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INFORMATICA INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
subscription terms, but the related fees are generally invoiced annually. There were immaterial credit losses associated with contracts with customers for the three months ended March 31, 2022 and 2021.
Contract Liabilities
Contract liabilities consist of deferred revenue and customer deposit liabilities and represent cash payments received or due in advance of fulfilling our performance obligations. In arrangements whereby the Company has an obligation to transfer goods or services to the customer and fees are invoiced or amounts are received ahead of revenue being recognized under non-cancelable contracts, deferred revenue is recorded. Customer deposits represent billings or cash payments received under cancellable contracts. Deferred revenue and customer deposit liabilities will be recognized as revenue in future periods. As of March 31, 2022, deferred revenue and customer deposit liabilities were $595.1 million and $7.5 million, respectively. As of December 31, 2021, deferred revenue and customer deposit liabilities were $635.6 million and $6.4 million, respectively.
The current portion of contract liabilities represents the amounts that are expected to be recognized as revenue within one year of the condensed consolidated balance sheet date. Contract liabilities were approximately $602.6 million as of March 31, 2022, of which the Company expects to recognize $579.0 million over the next 12 months, and the remainder thereafter. Contract liabilities were approximately $642.0 million as of December 31, 2021, of which the Company expects to recognize $613.3 million over the next 12 months, and the remaining thereafter. The amount of revenues recognized during the three months ended March 31, 2022 that were included in the opening contract liabilities balance as of January 1, 2022 was approximately $238.1 million. The amount of revenues recognized during the three months ended March 31, 2021 that were included in the opening contract liabilities balance as of January 1, 2021 was approximately $198.5 million. Revenues recognized from performance obligations satisfied in prior periods were immaterial during the three months ended March 31, 2022 and 2021.
Remaining Performance Obligations from Customer Contracts
Remaining performance obligations represent contracted revenues that have not yet been recognized (including contract liabilities) and amounts that will be invoiced and recognized as revenues in future periods. The volumes and amounts of customer contracts that the Company records and total revenues that it recognizes are impacted by a variety of seasonal factors. In each year, the amounts and volumes of contracting activity and associated revenues are typically highest in its fourth fiscal quarter and lowest in the first fiscal quarter. These seasonal impacts influence how the Company’s remaining performance obligations change over time, and, combined with foreign exchange rate fluctuations and other factors, influence the amount of remaining performance obligations that the Company reports at a point in time. As of March 31, 2022 and December 31, 2021, the Company’s remaining performance obligations were $1.2 billion and $1.2 billion, respectively, which does not include customer deposit liabilities. The Company expects to recognize approximately 68% of its remaining performance obligations at March 31, 2022 as revenues over the next twelve months and the remainder over the next two to three years.
Stock-based Compensation
The Company accounts for stock-based compensation in accordance with the provisions of ASC 718, Stock Compensation. The Company measures and recognizes compensation expense for all stock-based awards, including stock options, restricted stock units (“RSUs”) granted to employees and directors, performance stock units (“PSUs”) granted to employees and stock purchase rights granted under the Company’s 2021 Employee Stock Purchase Plan (“ESPP”) to employees, based on the estimated fair value of the awards on the date of grant.

The Company grants stock options with only service conditions (“service-based options”) which may also include one year cliff vesting provisions, as well as those with both service and performance or market conditions. The Company uses the Black-Scholes Merton or Monte Carlo model to value the stock options granted under its equity plans. For purchase rights granted under the ESPP, the fair value is estimated using the Black-Scholes Merton model. Both models require the input of certain assumptions on the grant date, including
10


INFORMATICA INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
fair value of the underlying stock and exercise price, expected term, volatility over an expected term, risk-free interest rate for an expected term, and dividend yield. The fair value of each RSU granted after the Company's IPO is determined by the closing price of the Company's common stock on the date of grant.

Compensation expense is recognized for time-based options and RSUs on a straight-line basis over the vesting period. Compensation expense for options containing performance conditions and PSUs is based on the estimated number of the performance-based stock options/units expected to vest using the graded vesting attribution method. Compensation expense for options containing market condition vesting criteria is based on the estimated number of the stock options expected to vest on attainment of the condition. Compensation expense is recognized for shares issued pursuant to the ESPP on a straight-line basis over the offering period. The Company recognizes forfeitures as they occur, and cash flows related to excess tax benefits are presented as an operating activity in the accompanying consolidated statements of cash flows.

Prior to the IPO, the fair value of the common stock underlying the options had historically been determined by the Company’s Compensation Committee of the Board of Directors given the absence of a public trading market. The Compensation Committee of the Board of Directors determined the fair value of the common stock by considering a number of objective and subjective factors, including: (i) third-party valuations of common stock; (ii) the lack of marketability of the common stock; (iii) the Company's actual operating and financial results; (iv) the Company’s current business conditions and projections; and (v) the likelihood of various potential liquidity events, such as an initial public offering or sale of the Company, given prevailing market conditions. After the IPO, the fair value of the common stock was determined based on the Company’s closing stock price as quoted on the New York Stock Exchange on the grant date.
Concentrations of Credit Risk and Credit Evaluations
Financial instruments that are potentially subject to concentrations of credit risk consist primarily of cash and cash equivalents, short term investments, derivatives and trade receivables. The Company’s cash and cash equivalents are generally held with large, diverse financial institutions worldwide to reduce the amount of exposure to any single financial institution. The majority of cash equivalents consists of money market funds, that primarily invest in U.S. government securities.

The Company performs ongoing credit evaluations of its customers and generally does not require collateral. The Company makes judgments as to its ability to collect outstanding receivables and provide allowances for the portion of receivables when collection becomes doubtful. Further, the Company maintains an allowance for expected credit losses. It estimates expected credit trends for the allowance for credit losses for receivables and contract assets based upon its assessment of various factors, including historical experience, the age of the receivable balances, credit rating of its customers, current economic conditions, and other factors that may affect its ability to collect from customers. Expected credit losses are recorded as general and administrative expense.

The Company’s derivative contracts are transacted with various financial institutions with high credit ratings. The Company evaluates its counterparties associated with the Company’s foreign exchange forward contracts and interest rate swap contracts at least quarterly. Since all these counterparties are large credit-worthy commercial banking institutions, the Company does not consider counterparty non-performance to be a material risk. The Company may enter into master netting arrangements to mitigate credit risk in derivative transactions by permitting net settlement of transactions with the same counterparty.
No customer accounted for more than 10% of revenue during the three months ended March 31, 2022 and 2021. At March 31, 2022 and December 31, 2021, no customer accounted for more than 10% of the accounts receivable balance.
11


INFORMATICA INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Recent Accounting Pronouncements Not Yet Adopted
In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2020-04, Reference Rate Reform (Topic 848), which provides optional expedients and exceptions to contract modifications and hedging relationships that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued. The standard is effective beginning on March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the impact of this guidance on its condensed consolidated financial statements.
Note 3. Cash, Cash Equivalents, Restricted Cash, and Short-Term Investments
The following table summarizes the Company’s cash, cash equivalents, restricted cash and short-term investments as of March 31, 2022 and December 31, 2021 (in thousands). There were no marketable securities held at March 31, 2022 and December 31, 2021.
March 31,December 31,
20222021
Cash
$312,862 $275,386 
Cash equivalents:
Time deposits
2,398 979 
Money market funds
230,041 180,013 
Total cash equivalents
232,439 180,992 
Total cash and cash equivalents
$545,301 $456,378 
Restricted cash
 1,718 
Total cash, cash equivalents, and restricted cash
$545,301 $458,096 
Short-term investments:
Time deposits
32,464 40,045 
Total short-term investments
32,464 40,045 
Total cash, cash equivalents, restricted cash, and short-term investments
$577,765 $498,141 
See Note 4. Fair Value Measurements of the Notes to Condensed Consolidated Financial Statements of this Report for further information regarding the fair value of the Company’s financial instruments.
The Company did not record any gross unrealized gains or losses for the three months ended March 31, 2022 and 2021.
Note 4. Fair Value Measurements

The Company uses a three-level fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value based on whether the inputs to those valuation techniques are observable or unobservable. The three levels of fair value hierarchy are set forth below. The Company’s assessment of the hierarchy level of the assets or liabilities measured at fair value is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
Level 1 Quoted prices in active markets for identical assets or liabilities.
Level 2 Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair values of the assets or liabilities.
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INFORMATICA INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Fair Value Measurement of Financial Assets and Liabilities on a Recurring Basis
The following table presents information about the Company’s financial assets and financial liabilities that are measured at fair value on a recurring basis as of March 31, 2022 and indicates the fair value hierarchy of the valuation (in thousands):
Total
Quoted Prices in
Active Markets
for
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Assets:
Time deposits(i)
$34,862 $34,862 $ $ 
Money market funds(ii)
230,041 230,041   
Total money market funds and time deposits
264,903 264,903   
Foreign currency derivatives(iii)
863  863  
Interest rate derivatives(iii)
4,954  4,954  
Total assets$270,720 $264,903 $5,817 $ 
Liabilities:
Foreign currency derivatives(iv)
$366 $ $366 $ 
Interest rate derivatives(iv)
24  24  
Total liabilities$390 $ $390 $ 
____________
(i)Included in cash equivalents and short-term investments on the condensed consolidated balance sheets.
(ii)Included in cash equivalents on the condensed consolidated balance sheets.
(iii)Included in prepaid expenses and other current assets on the condensed consolidated balance sheets.
(iv)Included in accrued liabilities on the condensed consolidated balance sheets.

The following table presents information about the Company’s financial assets and financial liabilities that are measured at fair value on a recurring basis as of December 31, 2021 and indicates the fair value hierarchy of the valuation (in thousands):
Total
Quoted Prices in
Active Markets
for
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Assets:
Time deposits(i)
$41,024 $41,024 $ $ 
Money market funds(ii)
180,013 180,013   
Total money market funds and time deposits
221,037 221,037   
Foreign currency derivatives(iii)
1,609  1,609  
Total assets
$222,646 $221,037 $1,609 $ 
Liabilities:
 
 
 
Foreign currency derivatives(iv)
$52 $ $52 $ 
Interest rate derivatives(iv)
7,725  7,725  
Total liabilities
$7,777 $ $7,777 $ 
_____________
(i)Included in cash equivalents and short-term investments on the condensed consolidated balance sheets.
(ii)Included in cash equivalents on the condensed consolidated balance sheets.
(iii)Included in prepaid expenses and other current assets, and other assets on the condensed consolidated balance sheets.
(iv)Included in accrued liabilities on the condensed consolidated balance sheets.
13


INFORMATICA INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Foreign Currency and Interest Rate Derivatives and Hedging Instruments
Level 2 inputs for the derivative valuations are limited to quoted prices for similar assets or liabilities in active markets (specifically foreign currency rates and futures contracts) and inputs other than quoted prices that are observable for the asset or liability (specifically the LIBOR and Secured Overnight Financing Rate (“SOFR”) cash and swap rates, and credit risk at commonly quoted intervals). The Company records its derivative assets and liabilities on a gross basis in the condensed consolidated balance sheet and uses mid-market pricing as a practical expedient for fair value measurements.
Key inputs for foreign currency derivatives are the spot rates, forward rates, interest rates, and credit derivative market rates. The spot rate for each foreign currency is the same spot rate used for all balance sheet translations at the measurement date and is sourced from the Federal Reserve Bulletin. The following values are interpolated from commonly quoted intervals: forward points and the SOFR used to discount and determine the fair value of assets and liabilities. Credit default swap spread curves identified per counterparty at month end are used to discount derivative assets for counterparty non-performance risk, all of which have terms of twelve months or less. The Company discounts derivative liabilities to reflect the Company’s own potential non-performance risk to lenders and has used the spread over SOFR on its most recent corporate borrowing rate.
Key inputs for interest rate derivatives are the LIBOR curve consisting of cash rates for very short term, futures rates and swap rates beyond the derivative maturity. These rates are used to provide spot rates at resets specified by each derivative. Derivatives are discounted to present value at the measurement date using the SOFR curve. Credit default swap spread curves per counterparty and the BB Industrial credit spread curves (representing the Company’s credit risk) at month end are used to discount the interest rate derivatives for non-performance risk using the potential method.
The counterparties associated with the Company’s foreign currency forward contracts and interest rate swaps are large credit-worthy financial institutions. The foreign currency derivatives transacted with these entities are relatively short in duration and the interest rate derivatives are spread between two counterparties; therefore, the Company does not consider counterparty concentration and non-performance to be material risks at this time. Both the Company and the counterparties are expected to perform under the contractual terms of the instruments.
There were no transfers between Level 1, Level 2 and Level 3 categories during the three months ended March 31, 2022 and 2021.
Note 5. Goodwill and Intangible Assets

Goodwill
The following table presents the changes in the carrying amount of the goodwill for the three months ended March 31, 2022 (in thousands):
Amount
Ending balance as of December 31, 2021
$2,380,752 
Foreign currency translation adjustment
(13,550)
Ending Balance as of March 31, 2022
$2,367,202 

Goodwill represents the excess of consideration paid over the estimated fair value of net tangible and identifiable intangible assets acquired in business combinations. During the three months ended March 31, 2022, the Company recorded a reduction to goodwill of $13.6 million foreign currency translation adjustment.
14


INFORMATICA INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Intangible Assets
The carrying amounts of the intangible assets other than goodwill as of March 31, 2022 and December 31, 2021 are as follows (in thousands, except years):
Weighted
Average
Useful Life
(Years)
March 31, 2022December 31, 2021
Cost
Accumulated
Amortization
NetCost
Accumulated
Amortization
Net
Acquired developed and core technology
6$878,346 $(833,102)$45,244 $878,822 $(823,965)$54,857 
Other intangible assets:
Customer relationships
152,159,944 (1,251,085)908,859 2,163,048 (1,214,492)948,556 
Trade names and trademark
781,731 (59,920)21,811 81,894 (57,852)24,042 
Total other intangible assets
2,241,675 (1,311,005)930,670 2,244,942 (1,272,344)972,598 
Total intangible assets, net
3,120,021 (2,144,107)975,914 3,123,764 (2,096,309)1,027,455 
The Company amortizes its intangible assets over their remaining estimated useful life using cash flow projections, revenue projections, or the straight-line method. Total amortization expense related to intangible assets was $47.8 million and $61.8 million for the three months ended March 31, 2022 and 2021, respectively.

The allocation of the amortization of intangible assets for the periods indicated below is as follows (in thousands):

Three Months Ended March 31,
20222021
Cost of revenues$9,137 $18,599 
Operating expenses38,661 43,226 
Total amortization of intangible assets$47,798 $61,825 
Certain intangible assets are recorded in foreign currencies; and therefore, the gross carrying amount and accumulated amortization are subject to foreign currency translation adjustments.
As of March 31, 2022, the amortization expense related to identifiable intangible assets in future periods is expected to be as follows (in thousands):
Acquired
Developed and
Core
Technology
Other
Intangible
Assets(i)
Total
Intangible
Assets
Remaining 2022
$27,200 $115,761 $142,961 
202311,768 137,823 149,591 
20243,511 121,813 125,324 
20251,626 99,613 101,239 
2026926 86,732 87,658 
Thereafter
213 368,928 369,141 
Total expected amortization expense
$45,244 $930,670 $975,914 
____________
(i)Other Intangible Assets includes customer relationships, trade names and trademarks.
15


INFORMATICA INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Note 6. Borrowings
Long term debt consists of the following (in thousands):
March 31, 2022December 31, 2021
Dollar term loan
$1,875,000 $1,875,000 
Less: Discount on term loan
(8,380)(8,671)
Less: Debt issuance costs
(14,357)(14,858)
Total debt, net of discount and debt issuance costs
1,852,263 1,851,471 
Less: Current portion of long-term debt
(18,750)(14,063)
Long-term debt, net of current portion
$1,833,513 $1,837,408 
As of March 31, 2022 and December 31, 2021, the aggregate fair value of the Company’s dollar term loan, based on Level 2 inputs related to fair market value, were $1,861.9 million and $1,871.5 million, respectively.
Credit Facilities
On February 25, 2020, the Company amended its existing credit facilities (as amended, the “First Lien Credit Agreement”) and entered into a new Second Lien Credit and Guaranty Agreement (the “Second Lien Credit Agreement” and, together with the First Lien Credit Agreement, the “2020 Credit Agreements”) with Nomura Corporate Funding Americas, LLC, as agent, for a syndicate of lenders. The Company borrowed $1.8 billion of dollar term loans and €480.0 million of euro term loans under the First Lien Credit Agreement and $425.0 million of term loans under the Second Lien Credit Agreement.
On October 29, 2021, the Company refinanced the 2020 Credit Agreements with a new Credit and Guaranty Agreement (the “Credit Agreement”), with JPMorgan Chase Bank, N.A., as agent, for a syndicate of lenders. Under the Credit Agreement, the Company borrowed $1.9 billion of dollar term loans (the “Term Facility”) and obtained $250.0 million of commitments under a revolving credit facility (the “Revolving Facility” and, together with the Term Facilities, the “Credit Facilities”). The Company used the proceeds from the above amendment together with net proceeds of the initial public offering and cash on hand to refinance the First Lien Credit Agreement and to redeem €472.8 million of euro term loan under the First Lien Credit Agreement, redeem $475.0 million of term loans under the Second Lien Credit Agreement, and pay fees and expenses in connection with the transaction.
The Term Facility matures on October 29, 2028 and is repayable in quarterly installments of 0.25% of the initial principal amount thereof, with the remaining amount due at maturity. The Revolving Facility matures on October 29, 2026.
The Company may prepay all or part of the Credit Facilities at any time. Subject to certain exceptions and limitations, the Company is required to prepay the Term Facility with the net proceeds of certain occurrences, such as the incurrences of indebtedness not permitted to be incurred under the Credit Agreement, credit sale and leaseback transactions and asset sales. The agreement also requires mandatory prepayments of the Term Facility with excess cash flow as specified in the terms of the Credit Agreement.
Borrowings under the Term Facility bear interest, at the Company’s option, either at (i) LIBOR plus 2.75% or (ii) the base rate plus 1.75%. The base rate is defined as the highest of (a) the Federal Funds Rate plus one half of 1%, (b) the rate of interest in effect for such day as published by the Wall Street Journal as the “prime rate,” and (c) LIBOR plus 1.00%; provided that the base rate shall not be less than 1.00% per annum. LIBOR is subject to a “floor” of 0% per annum. The Term Facility was issued with 0.125% of original issue discount.
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INFORMATICA INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The Revolving Facility accrues interest at a per annum rate based on either, at the Company’s election, (i) LIBOR plus the applicable margin for LIBOR loans ranging between 2.50% and 2.00% based on the Company’s total net first lien leverage ratio or (ii) the base rate plus an applicable margin ranging between 1.50% and 1.00% based on the Company’s total net first lien leverage ratio. No amounts were outstanding under the Revolving Facility as of March 31, 2022 and December 31, 2021. There were $1.8 million and $0.7 million of utilized letters of credit under the Revolving Facility at March 31, 2022 and December 31, 2021, respectively.
The Company guarantees the obligations under the Credit Agreement. All obligations under the Credit Agreement are secured by a perfected lien or security interest in substantially all of the Company’s and the guarantors’ tangible and intangible assets. The Credit Agreement also provides for a swingline sub facility of $15.0 million, which is available on a same day basis and a letter of credit facility of $30.0 million. The Credit Agreement includes an uncommitted incremental facility in an amount not to exceed the greater of $476.0 million and 100% of LTM EBITDA plus additional amounts, including subject to compliance with certain leverage tests.
Accrued interest is payable (i) quarterly in arrears with respect to base rate loans, (ii) at the end of each interest rate period (or at each 3- month interval in the case of loans with interest periods greater than 3 months) with respect to LIBOR loans, (iii) the date of any repayment or prepayment, and (iv) at maturity (whether by acceleration or otherwise). The Company is also obligated to pay other customary closing fees, arrangement fees, administrative fees, commitment fees, and letter of credit fees. Under the Credit Agreement, a commitment fee is payable on the daily unutilized amount under the Revolving Facility at a per annum rate ranging from 0.35% to 0.25% depending on the Company’s total net first lien leverage ratio.
The Credit Agreement requires that, as of the last day of any fiscal quarter if on such date the aggregate principal amount of all (a) revolving loans, (b) swingline loans, and (c) letter of credit obligations (in excess of $15 million) exceed 35% of the revolving loan commitments, the total net first lien leverage ratio cannot exceed 6.25 to 1.00. The occurrence of an event of default could result in the acceleration of the obligations under the Credit Agreement. Under certain circumstances, a default interest rate equal to 2.00% above the then-applicable interest rate will apply during the existence of an event of default under the Credit Agreement. The Company was in compliance with all covenants under the Credit Agreement as of March 31, 2022.
The Credit Agreement, among other things, limits the ability of the Company and its restricted subsidiaries to incur or guarantee additional indebtedness; pay dividends or make distributions or redeem or repurchase capital stock; prepay, redeem or repurchase certain subordinated debt; make certain loans or investments; create liens; merge or consolidate with another company or transfer or sell assets; enter into restrictions affecting the ability of certain restricted subsidiaries to make distributions, loans or advances to the Company or its restricted subsidiaries; and engage in transactions with affiliates. These covenants are subject to a number of important limitations and exceptions, which are described in the Credit Agreement.
Future minimum principal payments
Future minimum principal payments on the Term Facility as of March 31, 2022 are as follows (in thousands):

Remaining 2022
$14,063 
202318,750 
202418,750 
202518,750 
202618,750 
Thereafter
1,785,937 
Total
$1,875,000 
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INFORMATICA INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Note 7. Disaggregation of Revenue and Costs to Obtain a Contract
The following table presents the disaggregation of revenue by revenue type, consistent with how the Company evaluates its financial performance, for the three months ended March 31, 2022 and 2021 (in thousands):
Three Months Ended March 31,
20222021
Revenue:
Cloud and subscription support
$130,898 $96,814 
On-Premises subscription license
66,849 60,728 
Subscription
197,747 157,542 
Perpetual license
2,672 9,216 
Software revenue
200,419 166,758 
Maintenance
132,477 142,371 
Professional services
29,451