Informatica stock set to rally after swinging to a net profit, and as revenue rose above expectations

Shares of Informatica Inc. were indicated up nearly 4% in premarket trading Tuesday, after the data management software company, which went public on Oct. 27, swung to a third-quarter net profit and reported revenue that rose above expectations. Net income was $2.7 million, or 1 cent a share, after a loss of $32.3 million, or 13 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share rose to 23 cents from 16 cents to beat the FactSet consensus of 14 cents. Total revenue grew 10.6% to $361.8 million, above the FactSet consensus of $360.1 million, as subscriptions revenue rose 30.6% to $193.7 million. Cost of revenue increased 3.7% to $80.6 million, as gross margin improved by about 140 basis points to 77.7%. For the fourth quarter, the company expects revenue of $393.5 million to $398.5 million, surrounding the FactSet consensus of $395 million. The stock has gained 18.6% since it closed its first day of trading at $29.00, which matched its initial public offering price, while the S&P 500 has gained 2.3% over the same time.

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