Informatica Inc. (NYSE:INFA) Q3 2023 Earnings Call Transcript

The other thing going on in our gross margin this quarter and has been throughout the year which is a reduction in the amount of professional services that we’re doing as a percent of our total revenues. In professional services I’m sure you know are a low gross margin business. So, if we lose and again lose is not necessarily a bad thing because it means that our partners are doing it for us allowing us to focus on software. If we lose $1 of professional services revenue we also lose $0.80 of COGS or some number in that range. So those are the tailwinds to our gross margin this quarter. Our target as we’ve said before is to maintain 80% plus gross margins going forward as far as I can see, as we continue our transition and we’ll talk more about that at Investor Day.

Now with respect to overall operating expenses, I guess all I can point you to now is that savings that we’ve estimated in ’24 on a GAAP and non-GAAP basis that will result from the structure. Those savings are spread across the various categories of our spend our non-COGS spend of course. And you can add those dollar for dollar to your model today in terms of exactly what part of the business they’ll hit we’ll give you more of that in December.

Howard Ma: Okay. Fair enough. Thank you, Mike.

Operator: This concludes our Q&A. I’ll now hand back to the management team for closing remarks.

Amit Walia: Thank you. Well look I appreciate you all joining today. In closure, I’d like to just say that, as we continue accelerating our innovation-led cloud-only consumption-driven transformation, I couldn’t be proud of our success, couldn’t be prouder. Transformations are not easy and we’ve been very thoughtful in our actions while delivering cloud growth operating leverage and profitability. This is all due to a long-term strategic focus on building best-of-breed solutions on the IDMC platform and working tirelessly to make it powered by AI CLAIRE the data management platform with choice for enterprises across the globe. And we’re excited about where we are excited on how we’re going to close the year and look forward to seeing you all at Investor Day in December. Thank you.

Operator: Ladies and gentlemen today’s call has now concluded. We’d like to thank you for your participation. You may now disconnect your lines.