Informatica (NYSE:INFA) reported its Q4 results on Wednesday, with EPS of $0.24 coming in better than the Street estimate of $0.22. Revenue was $398.8 million, missing the Street estimate of $404.17 million.

The fiscal 2023 guidance was a bit disappointing with a total ARR guidance of $1.60 billion missing the Street estimate of $1.66 billion, as the metric decelerates to 5% year-over-year from 11.5% in 2022. The company expects 2023 revenue to be in the range of $1.57-1.59 billion, worse than the Street estimate of $1.61 billion.

Management’s expectation for strong overall renewal rates to continue also reflects the mission-critical nature of Informatica's products, which when combined with its large existing installed base and recent cost actions should allow for meaningful operating leverage to flow through in 2023, along with improved free cash flow generation.