14 Best New Tech Stocks To Buy Now

11. Informatica Inc. (NYSE:INFA)

Market Capitalization as of September 13: $7.74 billion

Number of Hedge Fund Holders: 28

Informatica Inc. (NYSE:INFA) is a software development company that offers a suite of tools and solutions that help businesses integrate, manage, and govern their data, enabling them to make better decisions and gain insights from their information. Core products include enterprise cloud data management and data integration.

Total revenue this Q2 grew 6.55% from Q2 in 2023, generating $400.63 million. Subscription ARR grew 15% year-over-year and cloud subscription ARR grew 37% year-over-year, both exceeding the high end of the guidance range. The company hit a record $703 million in cloud subscription ARR.

Customer momentum and consistent execution drove results. The company launched CLAIRE GPT, its generative AI chat interface, on the IDMC platform. Informatica is now the industry’s only cloud data management platform with AI and GenAI capabilities for modern enterprises.

Number of customers spending over $1 million in subscription ARR increased 28% year-over-year to 272. Those spending over $5 million grew 30% year-over-year. Average subscription ARR per customer reached $321,500, a 17% increase year-over-year.

Investor sentiments also remained positive, with 28 hedge funds keeping stakes in the company by this quarter. The largest position is at $67,465,080, held by Jericho Capital Asset Management.

The company is innovating with its Intelligent Data Management Cloud (IDMC), enhancing data ingestion and integration. With over $1 billion in R&D and IDC recognition, IDMC processed 97 trillion cloud transactions in June, a 59% year-over-year increase.

The launch of CLAIRE GPT, an AI-powered data management assistant, aims to improve data discovery and quality, offering free access through 2024. Key wins with customers like American Airlines and Westpac highlight the platform’s effectiveness.

With a guidance increase to 35.5% for cloud subscription ARR, strong operational health, and a robust customer base, Informatica Inc. (NYSE:INFA) is well-positioned for continued growth in the evolving data management and AI landscape.