Informatica Corp. (INFA)
Q1 2010 Earnings Call
April 22, 2010 05:00 AM ET
Stephanie Wakefield - Investor Relations
Sohaib Abbasi - Chairman and CEO
Earl Fry - EVP and CFO
Tom Roderick – Thomas Weisel Partners
Nathan Schneiderman – Roth Capital Partners
Mark Murphy – Piper Jaffray
Jonathan Doros – Raymond James
Brad Whitt – Broadpoint
Brent Williams – Benchmark Company
Brad Sills - Barclays Capital
Mitesh Dhruv - Bank of America
Derrick Wood - Wedbush Morgan Securities
Previous Statements by INFA
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Good afternoon. My name is Kirsten and I will be your conference operator today. At this time, I would like to welcome everyone to the Informatica Corporation first quarter earnings conference call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. (Operator Instructions).
I would now turn the call over to Ms. Stephanie Wakefield. Madam, you may begin your conference.
Good afternoon and thank you for joining us today. I am here with Sohaib Abbasi, our CEO and Earl Fry, CFO to discuss our Q1 2010 results and to talk about our outlook for the business. I will read the safe harbor and then hand it over to Sohaib for his comments.
Some of the comments we will make today are forward-looking statements, including statements concerning our being well positioned to pursue our growth strategy, our projected financial results for future periods, opportunities for growth in the data integration market, the expected benefit to our customers and products of the acquisition of 29West, our integration of Siperian and 29West, their employees and technology, the planned use of our products by some customers for more than traditional data warehousing projects, the strength of customer demand for our products; customer adoption of our latest product lines, and our expectations regarding future industry trends and macroeconomic developments.
All forward-looking statements are based upon current expectations and beliefs. However, actual results could differ materially. There are many reasons why actual results may differ from our current expectations. These forward-looking statements should not be relied upon as representing our views as of any subsequent date, and Informatica undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date that they are made.
Please refer to our recent SEC filings including the Form 10-K for the year ended December 31st, 2009 for detailed descriptions of the risk factors that may affect our results. Copies of these documents may be obtained from the SEC or by contacting our Investor Relations department.
During this afternoon's discussion, we will be using GAAP and non-GAAP numbers. Our GAAP results and the reconciliation of the GAAP results to the non-GAAP results are attached in the earnings press release and are also available in the supplemental metric section of our Informatica Investor Relations website at www.informatica.com/investor.
Before I hand it off to Sohaib, I'd like to remind you that this call is being webcast and will also be available for replay on our website.
I would also like to ask you as well when we get to the question-and-answer period to please confine yourself to just one question. We will allow additional questions if time permits. Thank you.
Thank you, Stephanie. I am pleased to announce that in Q1 2010 we attained record first quarter revenues and record first quarter non-GAAP operating income.
This afternoon, I will highlight some of the drivers for our first quarter results. After Earl's presentation of our financial results, I will comment on our business outlook as well as our recent acquisition of 29West, a pioneer in the Ultra Messaging category.
Total revenues grew by 24% year-over-year to $135.1 million. New license revenues grew 25% to $55 million.
Total non-GAAP operating income grew by 28% year-over-year with non-GAAP operating margin up 22%. With non-GAAP EPS of $0.21, we achieved the most profitable first quarter to date. Our record Q1 results are a testament to our relentless pace of innovation driven by our singular focus and guided by our clear technology vision. Our sustained results are a measure of the efforts by the Informatica team to repeatedly adapt our go-to-market approach with the changing macroeconomic environment. Within each of the major geographic regions, we benefitted from the global economic recovery and the operational discipline exemplified by the Informatica team.
In the Americas, the exceptional results attained by our team in the eastern region within the United States underscore our potential to do even better.
Within EMEA, our results indicate better business prospects in emerging markets particularly Eastern Europe and a more stable environment in Southern Europe.
In Asia Pacific including Japan, we attained record Q1 results.
Across all the major geographic regions, both the economic recovery and the lessons of the great recession shaped the primary business priorities of our customers. These business priorities include increasing revenues through customer centricity and agility, reducing cost through operational efficiency, diversifying through globalization, scaling with industry consolidation and complying with all regulatory regimes. By enabling these business imperatives of our customers, data integration now has a more strategic role than ever before as illustrated by our customer wins around the world.
In the Americas, Horizon Healthcare Services, New Jersey’s oldest and largest health insurer selected Informatica to build a trading partner gateway. Expanding use of Informatica as a standard, Horizon’s integration competency centered plans to replace the legacy EDI based solution with Informatica B-to-B data exchange. By Informatica B-to-B data exchange, customers expect to reduce costs through operational efficiency and IT productivity.