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.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.