Informatica Investor Presentation Deck
7
Company Updates
Restructuring Plan: On November 1, 2023, the Company announced a plan to reduce its workforce by approximately 545 employees, representing 10% of the Company's
current global workforce, and to reduce its global real estate footprint (the “November Plan”). The November Plan is intended to further streamline the Company's cost
structure as a direct result of its cloud-only, consumption-driven ("CoCd") strategy announced in January 2023. The increased focus and simplicity of the CoCd strategy
enables the Company to deliver continued Al-powered product innovation and strong Cloud Subscription ARR growth with a lower expense base and higher operating
margins. The Company estimates that it will incur non-recurring charges of approximately $35 million to $45 million in connection with the November Plan, primarily related
to cash expenditures for employee transition, notice period and severance payments, employee benefits, real estate-related charges, and other costs. The Company
expects that the majority of these charges will be incurred by the end of the first quarter of 2024 and that the implementation of the November Plan will be substantially
complete by the end of the third quarter of 2024. The Company estimates the cost savings benefit of these actions to be approximately $84 million on a GAAP basis or
approximately $70 million on a non-GAAP basis in fiscal 2024. Potential position eliminations in each country are subject to local law and consultation requirements, which
may extend this process beyond the first quarter of 2024 in limited cases. The charges that the Company expects to incur are subject to a number of assumptions,
including local law requirements in various jurisdictions, and actual expenses may differ materially from such estimates.
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Ithaca L.P. Update: As disclosed in the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2023, Ithaca L.P. (“Ithaca”), a limited partnership affiliated
with the funds advised by Permira Advisors LLC, had an obligation to distribute its Class A Common Stock to its limited partners as soon as practicable after October 29,
2023, the two-year anniversary of the closing of the Company's initial public offering. We have been advised that on or about November 3, 2023, Ithaca plans to distribute
approximately 8.6 million shares of the Company's Class A Common Stock to four of its limited partners. Following this distribution, approximately 51.4 million shares of
Class A Common Stock will continue to be held in Ithaca for approximately one year, unless otherwise sold by Ithaca or distributed to Ithaca's limited partners prior to such
time. Permira will continue to retain voting and investment power over the shares held by Ithaca. The Company's Class A Common Stock to be distributed by Ithaca to its
limited partners will be available for immediate resale in the public market at the discretion of the applicable limited partner.
Share Repurchase Authorization: On October 31, 2023, the Company's Board of Directors (the "Board") approved a new share repurchase authorization which enables the
Company to repurchase up to $200 million of its Class A Common Stock through privately-negotiated purchases with individual holders or in the open market. A committee
of the Board will determine the timing, amount and terms of any repurchase.
Investor Day: On December 5, 2023, the Company will host its 2023 Investor Day in San Francisco at 1:00 p.m. PT. A live webcast and replay will be available on the
Company's Investor Relations website.
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