Informatica (NYSE:INFA) shares plunged 23.76% in after-hours trading on Thursday, despite the company reporting better-than-expected Q4 2024 earnings. The data management software firm posted quarterly earnings of $0.41 per share, beating the consensus analyst estimate of $0.37 per share. However, the company's revenue for the quarter fell short of expectations, weighing heavily on the stock.
Informatica reported Q4 revenue of $428.31 million, missing the consensus estimate of $456.85 million by 6.25%. This represented a 3.79% year-over-year decline in revenue. Despite the miss, the company's annualized recurring revenue (ARR) reached $1.73 billion during the quarter, indicating a solid base of recurring business.
Although the company's earnings surpassed expectations, the revenue shortfall appears to have overshadowed the positive earnings surprise, sparking a significant sell-off in after-hours trading. Investors will likely seek further clarity on the reasons behind the revenue miss and the company's forward-looking guidance during the upcoming earnings call.