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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, 2023
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 filerxAccelerated filero
Non-accelerated fileroSmaller 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 242,219,694 shares of Class A common stock and 44,049,523 shares of Class B-1 common stock as of April 26, 2023.


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, volatility and uncertainty in the banking and financial services sector, foreign exchange headwinds, 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 par value data)
March 31,December 31,
20232022
(Unaudited)
Assets
Current assets:
Cash and cash equivalents
$632,907 $497,879 
Short-term investments
165,127 218,256 
Accounts receivable, net of allowances of $4,607 and $4,608, respectively
261,634 454,759 
Contract assets, net
93,881 95,221 
Prepaid expenses and other current assets
125,322 132,638 
Total current assets
1,278,871 1,398,753 
Property and equipment, net
158,053 160,574 
Operating lease right-of-use-assets
62,980 67,735 
Goodwill
2,346,596 2,337,036 
Customer relationships intangible asset, net
764,492 794,898 
Other intangible assets, net
28,401 33,094 
Deferred tax assets
13,799 13,076 
Other assets
162,421 165,733 
Total assets
$4,815,613 $4,970,899 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$20,393 $38,002 
Accrued liabilities
40,758 58,844 
Accrued compensation and related expenses
74,563 150,118 
Current operating lease liabilities
16,418 17,514 
Current portion of long-term debt
18,750 18,750 
Income taxes payable
18,629 3,758 
Contract liabilities
644,894 676,470 
Total current liabilities
834,405 963,456 
Long-term operating lease liabilities
51,398 55,178 
Long-term contract liabilities
21,921 23,007 
Long-term debt, net
1,817,792 1,821,760 
Deferred tax liabilities
31,351 18,604 
Long-term income taxes payable
32,548 30,601 
Other liabilities
4,610 3,932 
Total liabilities
2,794,025 2,916,538 
Commitments and contingencies (Note 14)
Stockholders’ equity:
Class A common stock; $0.01 par value per share; 2,000,000 and 2,000,000 shares authorized as of March 31, 2023 and December 31, 2022, respectively; 242,222 and 239,749 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively
2,423 2,398 
Class B-1 common stock; $0.01 par value per share; 200,000 and 200,000 shares authorized; 44,050 and 44,050 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively
440 440 
Class B-2 common stock; $0.00001 par value per share, 200,000 and 200,000 shares authorized; 44,050 and 44,050 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively
  
Additional paid-in-capital
3,352,312 3,282,383 
Accumulated other comprehensive loss
(34,032)(47,671)
Accumulated deficit
(1,299,555)(1,183,189)
Total stockholders’ equity
2,021,588 2,054,361 
Total liabilities and stockholders’ equity
$4,815,613 $4,970,899 
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,
20232022
Revenues:
Subscriptions$213,922 $197,747 
Perpetual license806 2,672 
Software revenue214,728 200,419 
Maintenance and professional services150,703 161,928 
Total revenues365,431 362,347 
Cost of revenues:
Subscriptions35,684 24,704 
Perpetual license180 153 
Software costs35,864 24,857 
Maintenance and professional services43,159 49,805 
Amortization of acquired technology2,874 9,137 
Total cost of revenues81,897 83,799 
Gross profit283,534 278,548 
Operating expenses:
Research and development82,039 75,123 
Sales and marketing128,538 128,952 
General and administrative41,360 29,574 
Amortization of intangible assets34,291 38,661 
Restructuring27,253  
Total operating expenses313,481 272,310 
(Loss) income from operations(29,947)6,238 
Interest income7,583 366 
Interest expense(35,051)(12,825)
Other income, net630 4,220 
Loss before income taxes(56,785)(2,001)
Income tax expense59,569 1,185 
Net loss$(116,354)$(3,186)
Net loss per share attributable to Class A and Class B-1 common stockholders:
Basic$(0.41)$(0.01)
Diluted$(0.41)$(0.01)
Weighted-average shares used in computing net loss per share:
Basic284,886 278,772 
Diluted284,886 278,772 
See accompanying notes to condensed consolidated financial statements.








2

INFORMATICA INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(In thousands)
(Unaudited)
Three Months Ended March 31,
20232022
Net loss
$(116,354)$(3,186)
Other comprehensive loss, net of taxes:
Change in foreign currency translation adjustment, net of tax benefit (expense) of $228 and $(12)
11,750 (19,074)
Available-for-sale debt securities:
Change in unrealized gain, net of tax expense of $24 and $
74  
Cash flow hedges:
Change in unrealized gain, net of tax expense of $308 and $1,312
941 3,991 
Less: reclassification adjustment for amounts included in net loss, net of tax benefit of $286 and $380
874 1,156 
Net change, net of tax expense of $594 and $1,692
1,815 5,147 
Total other comprehensive (loss) income, net of tax effect
13,639 (13,927)
Total comprehensive loss, net of tax effect
$(102,715)$(17,113)
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, 2023
Class A Common StockClass B-1 Common StockClass B-2 Common StockAdditional
Paid-in
Capital
Accumulated
Other
Comprehensive
Loss
Accumulated
Deficit
Total Stockholders'
Equity
Shares
Amount
Shares
Amount
Shares
Amount
Balances, December 31, 2022
239,749 $2,398 44,050 $440 44,050 $ $3,282,383 $(47,671)$(1,183,189)$2,054,361 
Stock-based compensation
— — — — — — 50,342 — — 50,342 
Issuance of shares under employee stock purchase plan
1,112 11 — — — — 16,120 — — 16,131 
Issuance of shares under equity plans1,361 14 — — — — 3,467 — — 3,481 
Payments for dividends related to Class B-2 shares— — — — — — — — (12)(12)
Net loss
— — — — — — — — (116,354)(116,354)
Other comprehensive income
— — — — — — — 13,639 — 13,639 
Balances, March 31, 2023
242,222 $2,423 44,050 $440 44,050 $ $3,352,312 $(34,032)$(1,299,555)$2,021,588 

Three Months Ended March 31, 2022
Class A Common Stock
Class B-1 Common Stock
Class B-2 Common Stock
Additional
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 plan801 8 — — — — 13,636 — — 13,644 
Issuance of shares under equity plans873 9 — — — — 4,697 — — 4,706 
Payments for dividends related to Class B-2 shares— — — — — — — — (24)(24)
Net loss— — — — — — — — (3,186)(3,186)
Other comprehensive loss— — — — — — — (13,927)— (13,927)
Balances, March 31, 2022
235,863 $2,360 44,050 $440 44,050 $ $3,141,447 $3,224 $(1,132,700)$2,014,771 




See accompanying notes to condensed consolidated financial statements.


4

INFORMATICA INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended
March 31,
20232022
Operating activities:
Net loss$(116,354)$(3,186)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization4,198 5,727 
Non-cash operating lease costs5,350 4,577 
Stock-based compensation50,342 29,275 
Deferred income taxes11,477 (6,145)
Amortization of intangible assets and acquired technology37,165 47,798 
Amortization of debt issuance costs847 919 
Amortization of investment discount, net of premium(851) 
Changes in operating assets and liabilities:
Accounts receivable197,579 177,717 
Prepaid expenses and other assets10,983 (4,485)
Accounts payable and accrued liabilities(118,076)(126,339)
Income taxes payable22,184 (17,981)
Contract liabilities(34,962)(37,722)
Net cash provided by operating activities69,882 70,155 
Investing activities:
Purchases of property and equipment(1,224)(644)
Purchases of investments(30,297)(17,226)
Maturities of investments80,500 24,114 
Net cash provided by investing activities48,979 6,244 
Financing activities:
Payment of debt(4,688) 
Proceeds from issuance of common stock under employee stock purchase plan16,131 13,644 
Payments of offering costs (505)
Payments for dividends related to Class B-2 shares(12)(24)
Net activity from derivatives with an other-than-insignificant financing element (4,586)
Proceeds from issuance of shares under equity plans3,481 4,706 
Net cash provided by financing activities14,912 13,235 
Effect of foreign exchange rate changes on cash and cash equivalents1,255 (2,429)
Net increase in cash and cash equivalents135,028 87,205 
Cash and cash equivalents at beginning of period497,879 458,096 
Cash and cash equivalents at end of period$632,907 $545,301 
Supplemental disclosures:
Cash paid for interest$34,482 $13,678 
Cash paid for income taxes, net of refunds$25,907 $25,311 
Non-cash investing and financing activities:
Purchases of property and equipment recorded in accounts payable and accrued liabilities$1,273 $784 
Deferred offering costs payable or accrued but not paid$ $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. (Informatica or 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. The Company was incorporated as a Delaware corporation on June 4, 2021.

Note 2. Basis of Presentation and 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 include recurring adjustments necessary for the fair statement of the Company’s financial position as of March 31, 2023 and the results of operations for the three months ended March 31, 2023. The results of operations for the three months ended March 31, 2023 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, judgments and assumptions in determination of performance obligations and standalone selling price (“SSP”) used in revenue recognition, the realizability of deferred tax assets, uncertain tax positions and the recoverability of intangible assets and their useful lives. 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 consolidated 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.
6


INFORMATICA INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Summary of Significant Accounting Policies
The Company’s significant accounting policies are discussed in “Note 2 – Summary of Significant Accounting Policies” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, which was filed with the SEC on February 27, 2023. There have been no material changes to these
policies during the three months ended March 31, 2023, except for the following update to the Software Revenue section of the revenue recognition accounting policy to discuss cloud-based subscription products with consumption-based pricing models based on Informatica Processing Units (“IPUs”).
Certain arrangements for our cloud-based subscription products provide for a maximum number of IPUs that are pre-purchased at the beginning of the arrangement to be consumed over the subscription term, with consumption measured either monthly or annually. For arrangements where consumption is measured annually, additional fees are charged for IPUs consumed above the annual maximum, if the customer’s usage requires it. The transaction price for cloud-based subscription products with consumption-based pricing is determined based on the pre-purchased amount and, for arrangements where consumption is measured annually, an estimate of additional fees that the Company is entitled to. The Company constrains its estimate based on factors that could lead to a probable significant reversal of cumulative revenue recognized. Revenues from our cloud-based subscription products with consumption-based pricing are recognized over time on a ratable basis over the applicable period beginning on the date that the service is made available to the customer or on the date the contractual term commences, if later.

Note 3. Cash, Cash Equivalents, and Investments
The following table summarizes the Company’s cash, cash equivalents and investments as of March 31, 2023 and December 31, 2022 (in thousands).
March 31,December 31,
20232022
Cash
$137,828 $165,599 
Cash equivalents:
Time deposits
49,843 51,192 
Money market funds
437,277 273,098 
Commercial paper7,959 7,990 
Total cash equivalents
495,079 332,280 
Total cash and cash equivalents
$632,907 $497,879 
Short-term investments:
Time deposits
75,567 125,281 
Commercial paper31,561 27,708 
Corporate debt securities17,881 21,724 
U.S. government and agency securities36,128 39,597 
Non-U.S. government and agency securities3,990 3,946 
Total short-term investments
$165,127 $218,256 
Long-term investments(i):
Corporate debt securities3,875  
Total long-term investments
$3,875 $ 
Total cash, cash equivalents and investments
$801,909 $716,135 
_____________
(i)Included in other assets on the condensed consolidated balance sheets.

See Note 5. 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.
7


INFORMATICA INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Note 4. Available-For-Sale Debt Securities
The following table summarizes the Company’s available-for-sale debt securities as of March 31, 2023 (in thousands).

March 31, 2023
Amortized CostUnrealized GainsUnrealized LossesFair Value
U.S. government agency securities
$36,164 $ $(36)$36,128 
Non-U.S. government securities
3,993  (3)3,990 
Corporate debt securities
21,826 2 (72)21,756 
Commercial paper
39,541  (21)39,520 
Total
$101,524 $2 $(132)$101,394 

The following table summarizes the Company’s available-for-sale debt securities as of December 31, 2022 (in thousands).

December 31, 2022
Amortized CostUnrealized GainsUnrealized LossesFair Value
U.S. government agency securities
$39,634 $5 $(42)$39,597 
Non-U.S. government securities
3,964  (18)3,946 
Corporate debt securities
21,850  (126)21,724 
Commercial paper
35,745  (47)35,698 
Total
$101,193 $5 $(233)$100,965 


There were no realized gains or losses related to available-for-sale debt securities for the three months ended March 31, 2023. As of March 31, 2023, the fair value of our available-for-sale debt securities with contractual maturity of one year or less and one through three years from the condensed consolidated balance sheet date was $97.5 million and $3.9 million, respectively.

As of March 31, 2023, the gross unrealized losses that have been in a continuous unrealized loss position for less than 12 months were $0.1 million, which were related to $93.4 million of available-for-sale debt securities. There were no gross unrealized losses that have been in a continuous unrealized loss position for more than 12 months.

The Company did not recognize any credit losses related to the Company’s debt securities during the three months ended March 31, 2023. Unrealized losses related to available-for-sale debt securities are due to interest rate fluctuations as opposed to credit quality. The Company does not intend to sell these investments. In addition, it is more likely than not that the Company will not be required to sell them before recovery of the amortized cost basis, which may be at maturity.






8


INFORMATICA INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Note 5. 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. The Company does not have any assets or liabilities classified as Level 3.
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, 2023 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
$125,410 $125,410 $ $ 
Money market funds
437,277 437,277   
Commercial paper39,520  39,520  
Corporate debt securities21,756  21,756  
U.S. government and U.S. government agency securities36,128  36,128  
Non-U.S. government securities3,990  3,990  
Total cash equivalents and investments
664,081 562,687 101,394  
Foreign currency derivatives
375  375  
Total assets$664,456 $562,687 $101,769 $ 
Liabilities:
Foreign currency derivatives
$1,111 $ $1,111 $ 
Total liabilities$1,111 $ $1,111 $ 
9


INFORMATICA INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
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, 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
$176,473 $176,473 $ $ 
Money market funds
273,098 273,098   
Commercial paper35,698  35,698  
Corporate debt securities21,724  21,724  
U.S. government and U.S. government agency securities39,597  39,597  
Non-U.S. government securities3,946  3,946  
Total money market funds and time deposits
550,536 449,571 100,965  
Foreign currency derivatives
88  88  
Total assets
$550,624 $449,571 $101,053 $ 
Liabilities:
 
 
 
Foreign currency derivatives
$3,343 $ $3,343 $ 
Total liabilities
$3,343 $ $3,343 $ 
There were no transfers between Level 1, Level 2 and Level 3 categories during the three months ended March 31, 2023 and 2022.
Note 6. 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, 2023 (in thousands):
Amount
Ending balance as of December 31, 2022
$2,337,036 
Foreign currency translation adjustment
9,560 
Ending Balance as of March 31, 2023
$2,346,596 
Goodwill represents the excess of consideration paid over the estimated fair value of net tangible and identifiable intangible assets acquired in business combinations.
10


INFORMATICA INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Intangible Assets
The carrying amounts of the intangible assets other than goodwill as of March 31, 2023 and December 31, 2022 are as follows (in thousands, except years):
Weighted
Average
Useful Life
(Years)
March 31, 2023December 31, 2022
Cost
Accumulated
Amortization
NetCost
Accumulated
Amortization
Net
Acquired developed and core technology
6$877,029 $(862,193)$14,836 $876,949 $(859,319)$17,630 
Other intangible assets:
Customer relationships
152,156,649 (1,392,157)764,492 2,154,735 (1,359,837)794,898 
Trade names and trademark
781,514 (67,949)13,565 81,442 (65,978)15,464 
Total other intangible assets
2,238,163 (1,460,106)778,057 2,236,177 (1,425,815)810,362 
Total intangible assets, net
$3,115,192 $(2,322,299)$792,893 $3,113,126 $(2,285,134)$827,992 
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 $37.2 million and $47.8 million for the three months ended March 31, 2023 and 2022, respectively.
The allocation of the amortization of intangible assets for the periods indicated below is as follows (in thousands):

Three Months Ended March 31,
20232022
Cost of revenues$2,874 $9,137 
Operating expenses34,291 38,661 
Total amortization of intangible assets$37,165 $47,798 
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, 2023, 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
Total
Intangible
Assets
Remaining 2023
$8,673 $103,066 $111,739 
20243,398 121,449 124,847 
20251,626 99,335 100,961 
2026926 86,492 87,418 
2027184 75,225 75,409 
Thereafter
29 292,490 292,519 
Total expected amortization expense
$14,836 $778,057 $792,893 
11


INFORMATICA INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Note 7. Borrowings
Long-term debt consists of the following (in thousands):
March 31, 2023December 31, 2022
Dollar term loan
$1,856,250 $1,860,938 
Less: Discount on term loan
(7,263)(7,529)
Less: Debt issuance costs
(12,445)(12,899)
Total debt, net of discount and debt issuance costs
1,836,542 1,840,510 
Less: Current portion of long-term debt
(18,750)(18,750)
Long-term debt, net of current portion
$1,817,792 $1,821,760 
As of March 31, 2023 and December 31, 2022, the aggregate fair value of the Company’s dollar term loan, based on Level 2 inputs related to fair market value, were $1,846.2 million and $1,830.2 million, respectively.
Credit Facilities
The Company has a credit agreement with JPMorgan Chase Bank, N.A., as agent, for a syndicate of lenders (the “Credit Agreement”). 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 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.
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, 2023 and December 31, 2022. There were $1.7 million of utilized letters of credit under the Revolving Facility at March 31, 2023 and December 31, 2022.
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 borrowing 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 also includes an uncommitted incremental facility subject to compliance with certain leverage tests and borrowing limits.
12


INFORMATICA INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
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 three-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, 2023.
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, 2023 are as follows (in thousands):

Remaining 2023
$14,063 
202418,750 
202518,750 
202618,750 
202718,750 
Thereafter
1,767,187 
Total
$1,856,250 
13


INFORMATICA INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Note 8. Disaggregation of Revenue, Contract Liabilities, Remaining Performance Obligations, Credit Risk 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, 2023 and 2022 (in thousands):
Three Months Ended March 31,
20232022
Revenue:
Cloud and subscription support
$163,373 $130,898 
Self-managed subscription license
50,549 66,849 
Subscription
213,922 197,747 
Perpetual license
806 2,672 
Software revenue
214,728 200,419 
Maintenance
125,375 132,477 
Professional services
25,328 29,451 
Maintenance and professional services revenue
150,703 161,928 
Total revenues
$365,431 $362,347 
Revenue by geographic location for the three months ended March 31, 2023 and 2022 (in thousands):
Three Months Ended March 31,
2023