Good afternoon, everyone, and welcome to Informatica's Fiscal Second Quarter 2022 Earnings Conference Call. My name is Tia, and I will be your event specialist today. After the speakers' prepared remarks, there will be a question-and-answer session. Thank you. I would now like to introduce our host, Victoria Hyde-Dunn, Vice President, Investor Relations. You may proceed. Thank you. Good a fternoon, and thank you for joining us to review Informatica's second quarter 2020 earnings results. Joining me on today's call are Amit Walia, Chief Executive Officer, and Eric Brown, Chief Financial Officer. Before we begin, we have a couple of reminders. Our earnings press release and slide presentation are available on our investor relations website at investors.informatica.com. Our prepared remarks will be posted on the IR website after the conference call concludes. During the call, we will be making comments of a forward-looking nature. Actual results may differ materially from those expressed or implied as a result of various risks and uncertainties. For more information about some of these risks, please review the company's SEC filings, including the section titled Risk Factors included in our most recent 10-Q and 10-K filing for the full year 2021. These forward-looking statements are based on information as of today, and we assume no obligation to publicly update or revise our forward-looking statements except as required by law. Additionally, we will be discussing certain non-GAAP financial measures. These non-GAAP financial measures are in addition to and not a substitute for measures of financial performance prepared in accordance with GAAP. A reconciliation of these items to the nearest US GAAP measure can be found in this afternoon's press release and our slide presentation available on Informatica's investor relations website. It is my pleasure to turn the call over to Amit. Well, thank you, Victoria, and good afternoon, everyone, and thank you for joining us today. Well, let me begin by saying that we are very pleased to deliver second quarter results that exceeded the high end of our guidance. Total revenue growth was 9% year-over-year, with subscription annual recurring revenue growth being 31% year-over-year and cloud ARR growth being 42% year-over-year. We strengthened our cash position and beat the high end of guidance for non-GAAP operating income. Our IDMC platform is the growth engine for new and existing enterprise customers running mission-critical workloads, and we continue to observe the expected mix shift from self-managed to cloud. Importantly, we are on track to deliver $1 billion in subscription ARR by the end of this year, a milestone few software companies can achieve. We are also reiterating our full year 2022 guidance for all ARR metrics and non-GAAP operating income. We are, however, slightly lowering total revenue guidance to reflect foreign exchange headwinds. Now, let me share business insights from the second quarter, then observations for the second half of the year before I hand over the call to Eric to recap second quarter financial results and provide full year and third quarter guidance. Now, I have previously talked about how we have prioritized our R&D investments to accelerate cloud-first workloads through product innovation and strategic partnerships. In May this year, we hosted our annual customer conference called Informatica World. Our theme was Data is Your Platform. Thousands of customers attended in person and virtually, including strong engagement with executive levels and a broad range of user personas from around the globe. We unveiled many industry-leading new data management capabilities to help customers and strategic partners across all levels, functions, and IT realize greater business value out of their data. To provide further detail and context, I'll frame my comments today around three strategic priorities and our investment focus. I'll begin with product innovation, then I'll go to strategic partnership expansion, and finally, to go-to-market. Let me begin with product innovation. We have been accelerating our pace of innovation to meet our customer needs to drive digital transformation and build their intelligent data enterprise across four distinct journeys. Let me begin with the first journey, analytics, where we are democratizing and simplifying data engineering workload execution. We launched a new product called Data Loader to simplify data management for departmental users. Our Data Loader is a no-cost, zero code, zero DevOps, and zero infrastructure required SaaS offering that will help departmental users across an organization to move from data to insights in minutes. Data Loader's simple three-click experience is now available for Google BigQuery, Snowflake, and Databricks. We also announced a private preview of INFACore, a simple plugin for any development and data science framework which simplifies composing data pipes by turning thousands of lines of code into a single function, allowing users to consume, transform, and prepare data from any source within their integrated development environment. Now turning to our second customer journey, MDM and Business 360 apps. We are accelerating our investment in pre-built Business 360 apps that enable customers to easily rationalize, combine, and share customer, supplier, and product data from hundreds of data sources into a single version of the truth and drive business insights. In that context, we expanded a long-standing collaboration with Microsoft Azure and announced a software-as-a-service version of our multi-domain master data management for Microsoft Azure. Informatica's SaaS version of MDM on Azure uses AI and ML to help customers create a data foundation that provides a golden record of truth that spans overlapping, conflicting, and related data across customers, suppliers, and products. Informatica SaaS MDM will be generally available for purchase from the Azure Marketplace in August. With the addition of this multi-tenant native MDM, we have now completed our product roadmap with all products on our IDMC platform available as SaaS multi-tenant offering. I'm excited about that. We also expanded our cloud-native multi-tenant MDM with two additional purpose-built applications. Supplier 360 to speed up the onboarding of suppliers, improve collaboration, and reduce risk, and Product 360 to efficiently acquire, manage, and publish relevant, trusted, and rich product data. Now turning to the third customer journey, data governance and data privacy, where we are enabling predictive data intelligence in the cloud with integrated governance, catalog, data quality, and data marketplace capabilities powered by broad and deep cloud-native metadata intelligence, empowering data users of all skills to find, understand, trust, and access the data needed for all use cases. We expanded data governance capabilities with Microsoft's Power BI. We also announced the expansion of our partnership with Snowflake to collaborate on deeper integration between Snowflake and Informatica's cloud data governance and catalog service. We continued expansions of our scanners with even deeper penetration into Salesforce, SAP, and Microsoft Azure ecosystems. We added new intelligent capabilities on our data quality suite for anomaly detection, which automatically highlights potential data quality issues that are very hard to detect for users. Our automated data classifications delivered out of the box have nearly doubled, enabling our customers to reliably identify even more critical data elements related to PII and other domains. Lastly, for our fourth customer journey, app integration and hyperautomation, where we are integrating and connecting apps to automate end-to-end business processes. Within that, we announced a brand-new API Center as a one-stop shop to create, deploy, monitor, deprecate, and retire APIs. It provides a single integrated view of all APIs within an enterprise to drive productivity, transparency, and usability. The API Center can also auto-generate data APIs in minutes that deliver integrated, trusted, and governed data along with the business process automation that is simple, fast, secure, and more dependable by leveraging Informatica's API gateways. It is through our IDMC platform that we enable organizations to treat data as their platform to address these mission-critical workloads. To give you some more context, the breadth of our IDMC platform remains unparalleled and provides a suite of seven best-in-breed solutions that are powered by CLAIRE, our AI engine, with over 50,000 metadata web connections and leveraging 11 petabytes of active metadata in the cloud. IDMC is delivering mission-critical solutions that serve an ever-increasing base of global customers and operates at a significant scale, processing 38.5 trillion cloud transactions per month as of June 2022, which is an increase of 77% year-over-year and approximately 20% sequentially. Now let me turn to our next priority, where we are striving to make Informatica the easiest to do business with and to win together with our partners as we are being the Switzerland of data within the enterprise ecosystem. Now, I talked about Informatica World. Informatica World featured marquee customer, marquee speaker participation from all of our strategic ecosystem partners, including Thomas Kurian, CEO of Google Cloud, Scott Guthrie, EVP Cloud and AI Group from Azure, Andy Mendelsohn, EVP at Oracle, Matt Garman, SVP Sales and Marketing from AWS, Christian Kleinerman, SVP Product at Snowflake, and Adam Conway, SVP Product at Databricks. I'm deeply honored to have these prestigious industry leaders share insights on how together we're helping our customers build an intelligent data enterprise and stay competitive in a digital-first economy. Beyond Informatica World, we continue to share more partner innovation. At Snowflake Summit, we announced a new enterprise data integrator for the Snowflake Native Application Framework, and we were highlighted as a partner in Snowflake's announcement of the Native Applications Framework. We were awarded Snowflake industry competencies in financial services and healthcare and life sciences, reflective of the significant joint customer adoption we have in these industries. At Databricks Data + AI Summit, we announced expanded support for Databricks SQL, advanced data quality for Databricks, expanded data governance and data cataloging with IDMC, and the private preview of INFACore that I mentioned earlier, developer extension libraries for Databricks notebooks. We recently also joined the Data Cloud Alliance created by Google Cloud, which focuses on making data and analytics more accessible via modern data management technologies. Finally, a very important new strategic partnership is Oracle. Informatica is named by Oracle as a preferred partner for cloud enterprise data integration and governance for data warehouses and lakehouses on Oracle Cloud Infrastructure. With this partnership, IDMC has now become the most widely available data management platform supporting all key major cloud providers: AWS, Azure, GCP, and now Oracle. In the second quarter, the number of ecosystem co-sell wins grew over 105% year-over-year, and the marketplace transaction volume tripled year-over-year, indicating excellent traction with key ecosystem partners. Now turning to our global system integrator partners, where we continue to make improvements to the program to attract new partners and our global system integrator partners continue to build Informatica in their solutions. In that context, Informatica's joined Wipro's FullStride cloud services data platform as a premier collaboration partner alongside a select group of companies including AWS, Microsoft, GCP, and Oracle. Informatica also expanded its partnerships with KPMG and launched two new offerings, KPMG Modern Data Platform and KPMG Powered Enterprise Data Migration. Several more partners established centers of excellence with access to our migration factories, including Infosys and KPMG, plus several regional boutique partners to support our customers in moving their on-prem workloads to the cloud. In that, we continue to drive maintenance to cloud migrations. As you all know, and I've said that before, it has an approximately nine to 12-month lag to convert from maintenance ARR to cloud ARR once implementation is completed. Our differentiated cloud technology platform, IDMC, has been widely recognized by the marketplace and reflects our ongoing commitment to delivering product-led innovation at a global scale. We are proud to once again being named a 2022 Gartner Peer Insights customer choice for MDM. We've also been named a leader in both Forrester Wave's enterprise data fabric and enterprise data catalog for DataOps categories in second quarter of 2022. More recently, Gartner named Informatica as one of the top vendors in the 2021 Event Stream Processing Platforms Worldwide report. We were recognized as the second-largest vendor with market share greater than IBM, Confluent, Software AG, TIBCO, and SAP. Finally, turning to our go-to-market sales motion. Our customer relationships remain very strong, as highlighted by the number of customers spending more than $1 million in subscription ARR that increased 51% year-over-year to 175 customers. Additionally, customers spending more than $100,000 in subscription ARR increased 20% year-over-year to 1,791 customers. Our increasing focus on vertical industries is leading to deeper customer discussions. Earlier this year, we launched IDMC for retail. More recently, we announced and launched IDMC for healthcare and life sciences with customers like Blue Cross Blue Shield of Kansas City and NYC Health + Hospitals. As well as IDMC for FinServ, financial services, with customers like RBC Wealth Management, Bank of Montreal, and Fidelity. We continue to take the platform and make it more relevant to enterprises, industries, and use cases. Now, let me give you some examples of our customer wins. Norwegian Cruise Line, a leading global cruise company, purchased our IDMC platform, replacing several single product vendors, allowing them to take full advantage of all the capabilities on the platform, including data integration, data quality, API management, data governance, and master data management. Garance, a mutual insurance company based in France, Paris, with 250,000 members and EUR 3.4 billion in assets under management, as a part of its digital transformation to drive their own innovation, improving their own operational excellence, and maintaining customer sat, chose Informatica's Customer 360 SaaS to help them create a trusted single view for their customers and employees. HDFC Bank, the largest private sector bank by assets and world's tenth-largest bank by market cap, chose Informatica's MDM Customer 360 and Data Quality to be deployed into HDFC's Azure cloud to create a trusted 360-degree view of their customers. Informatica will partner with Microsoft Azure architecture team to support HDFC's digital transformation. Another great example of a strategic partner co-win is with AD Ports Group. The company is undergoing a multi-year digital transformation program, which includes investments in people, processes, technology, and data to enable a data-driven culture. We leveraged our deep relationship and jointly coordinated with Snowflake and Cognizant to demonstrate a two-partnership mentality in helping AD Ports Group. We're also very pleased to see customers looking to modernize to cloud and leverage our cloud-native platform. Volvo Group, one of the first customers to embark on a PowerCenter modernization journey towards the cloud. They're looking for a common data management solution to support all of its enterprise business units and plans to leverage their entire IDMC platform as a single data management platform across all of Volvo. As I step back, in summary, we delivered outstanding second quarter results, which reflect a strong product and market fit, loyal and growing customer base, and our ability to execute in this early innings of a 44 billion TAM, in which we are consistently recognized as an industry leader with an expanded strategic partner ecosystem. Our cloud momentum remains strong, and we are continuing to process mission-critical workloads. I believe Informatica's best-of-breed solutions on our IDMC cloud-native platform offer resilience and relevance to delivering customers' digital transformation needs. We are managing the business for long-term durable growth, positive cash flow, and continued profitability. Lastly, even though we are ahead on ARR and profitability metrics for the first half of the year, we continue to remain prudent as we think about guidance for the second half and the full year. Thank you to all our employees, customers, partners, and shareholders for their support. With that, let me now turn the call over to Eric. Eric? Thank you, Amit, and good afternoon, everyone. We delivered a strong quarter and exceeded the high end of guidance across total revenue and all ARR metrics, with cloud ARR growing at 42% year-over-year. Demand for IDMC platform remained healthy as we process mission-critical workloads. We beat non-GAAP operating income guidance by $22 million on the strength of higher total revenue and lower spending. As Amit mentioned, we are mindful of the uncertain macro environment and are taking a prudent approach to guidance for the balance of the year. Let me provide commentary on second quarter results before discussing expectations for the balance of 2022. Turning to second quarter results, total ARR increased 16% year-over-year to $1.44 billion. We added $197 million in net new total ARR in the second quarter versus the prior year, and we remain on track to deliver over $1.5 billion in expected total ARR this year. Cloud ARR performance was once again strong, increasing 42% year-over-year to $373 million and exceeding the high end of guidance. Cloud ARR now represents 26% of total ARR, an increase of five -percentage- points year-over-year. We added $110 million in net new cloud ARR in the second quarter versus the prior year. Sequentially, we added $30 million in net new cloud ARR in the second quarter of 2022 versus the first quarter of 2022. We continue to see a sales mix shift from self-managed to the cloud. Turning to subscription ARR, this increased 31% year over year to $896 million, $11 million above the high end of guidance and driven by new subscription customer growth and improvements in our renewal rates, including cloud. The mix of subscription ARR is now 62% of total subscription ARR as compared to 55% last year. We added $210 million in net new subscription ARR in the second quarter versus the prior year, an increase of 19% year over year. Importantly, we remain on track to deliver $1 billion in subscription ARR for the full year. 54% of subscription customers are net new, and our average subscription annual recurring revenue per customer in the second quarter grew to approximately $243,000, a 22% increase year-over-year on an active base of nearly 3,700 subscription customers. The subscription net retention rate was 113% flat sequentially. As previously mentioned, we expect to see fluctuations in this metric due to the mix of new bookings from new customers versus existing customers and the timing of large initial deal sizes expanding in the first year. We continue to expect a 120% subscription net retention rate long term as we build out the cloud business. Lastly, maintenance ARR finished better than we expected and was only down 2% year-over-year at $541 million, with strong renewal rates that were up one percentage point year-over-year. As a reminder, we have significantly reduced sales of professional licenses in favor of cloud offerings, and this will naturally result in a gradual decline in maintenance ARR over time. Turning to revenue, we delivered $372 million in total GAAP revenue, an increase of 9% year-over-year and $4 million above the high end of guidance due to upside from self-managed subscription revenue recognition, partially offset by foreign exchange. Subscription revenue increased 24% year-over-year to $207 million. Subscription revenue represented 56% of total revenue as compared to 49% a year ago and reflects stronger customer demand for IDMC. Our subscription renewal rate was 94%, up one- percentage- point from a year ago and demonstrates the resilience of our business as the IDMC platform remains a mission-critical part of customers' operations. Maintenance and professional services revenue were in line with expectations at $163 million and represented 44% of total revenue in the quarter. Standalone maintenance revenue represented 35% of total revenue. Consulting education revenue make up the difference and fluctuates based on customer requirements, representing 8% of total revenue. US revenue grew 11% year-over-year to $243 million, representing 65% of total revenues. International revenue grew 4% year-over-year to $129 million, representing 35% of total revenues. Now, turning to consumption-based pricing. It's been about a year and a half since we launched our consumption-based pricing model featuring Informatica Processing Units, also known as IPUs. Recall that IPUs allow our customers to dynamically and seamlessly choose how they use any of our cloud solutions and services. As of second quarter, IPUs represented approximately 30% of cloud ARR, roughly double compared to a year ago. Approximately 47% of our cloud new bookings were IPU-based, indicating a healthy momentum of this offering. Before moving to our profitability metrics, I'd like to point out that I will be discussing non-GAAP results for the second quarter, unless otherwise stated. Gross margin is 81% and similar to first quarter, notwithstanding the mix shift to cloud. For second quarter operating expenses, we observed an increase in travel and marketing expenses to support our Informatica World event. Looking out to the second half of the year, we have slowed net new hiring, and we are optimizing investments and spending in the greatest areas of opportunity for cloud acceleration, product innovation, and strategic partnership expansion. Operating income was approximately $70 million and exceeded the high end of guidance by $19 million due to higher revenue and reduced rate of spending. Adjusted EBITDA was $75 million, and net income was $45 million. Net income per diluted share was $0.16 above our expectations based on approximately 284 million diluted shares outstanding. The basic share count was 280 million shares. We ended the second quarter in a very strong cash position, with cash plus short-term investments of $582 million. Net debt was $1.3 billion, and with a trailing twelve-month adjusted EBITDA of $367 million. This resulted in a net leverage ratio of 3.5x. We expect the business to naturally delever to approximately 3 x by the end of this year, and then to below 2x by the end of 2024. Our levered free cash flow after tax is $33 million, and approximately $32 million lower than our expectations due to two primary reasons. First, we had a $15 million higher than expected cash outflow from cash tax payments in second quarter, a portion of which is timing related. We also saw a slight increase in our days sales outstanding, which resulted in a working capital adverse for second quarter. GAAP operating cash flow was $16 million compared to $40 million in second quarter last year. This summarizes second quarter results. Now let me turn to guidance. We continue to feel good about the under-funded lines of the business, our durable and predictable subscription revenue stream, high cloud growth, and healthy gross margins. We remain confident in achieving approximately 40% cloud ARR growth for the full year as the mix shift from self-managed to the cloud continues and our renewal rates are improving. While we did see better than expected subscription and cloud ARR results in the first half of the year, we are not slowing the beat through the balance of the year in keeping with our prudent approach given the current macro environment. Now for full year guidance. Looking at the full year 2022 guidance, we are reiterating guidance for the year ending 31 December 2022 as follows. We expect total ARR in the range of $1.52 to 1.55 billion, representing approximately 13% year-over-year growth at the midpoint of the range. We expect subscription ARR in the range of $990 to 1.01 billion, representing approximately 25% year-over-year growth at the midpoint of the range. We expect cloud ARR in the range of $438 to 448 million, representing approximately 40% year-over-year growth at the midpoint of the range. We expect non-GAAP operating income in the range of $325 to 345 million. We are updating the full year of 2022 total revenue guidance to be in a range of approximately $1.54 to 1.56 billion. At the midpoint, we are reducing GAAP total revenue by approximately $45 million due to currency headwinds from a stronger US dollar. Now foreign exchange rates do affect our operating income. However, the overall impact is mitigated since we have a considerable amount of operating expenses denominated in foreign currencies serving as a natural offset. Net, we are holding our full year non-GAAP operating income guidance unchanged as we control our spending and further optimize our ARR and renewals business. We are updating the full year 2022 unlevered free cash flow after tax guidance to be in the range of $290 to 310 million. At the midpoint, we are lowering unlevered free cash flow by $33 million. Most of this variance is working capital related, as our quarters are a bit more back-end loaded in terms of overall bookings, and we are starting to see some customers delay payments, creating a slight increase in our DSO. We expect these trends to continue in the second half of the year. In addition, we're expecting $5 to 10 million more of additional cash taxes this year. Taking all this into account, we are establishing third quarter guidance for the quarter ending 30 September 2022 as follows. We expect subscription ARR in the range of $920 to 930 million, representing approximately 26% year-over-year growth at the midpoint of the range. We expect cloud ARR in the range of $399 to 405 million, representing approximately 40% year-over-year growth at the midpoint of the range. We expect non-GAAP operating income in the range of $77 to 84 million. We expect GAAP total revenues in the range of $385 to 395 million, representing approximately 8% year-over-year growth at the midpoint of the range. We estimate the third quarter impact of foreign exchange to be around $15 million. We reported second quarter non-GAAP net income at a non-GAAP tax rate of 23%. For the full year, we estimate a 23% non-GAAP tax rate as well. Looking to fiscal 2023 and beyond, we continue to expect a long-term steady-state non-GAAP tax rate of 24%, which reflects we expect cash taxes to settle based on our structure and geographic distribution of operational activity. For modeling purposes, we estimate third quarter unlevered free cash flow to be approximately $55 million. Additionally, for the third quarter of 2022, we expect basic weighted average shares outstanding to be approximately 280 million shares and diluted weighted average shares outstanding to be approximately 283 million shares. For the full year 2022, we expect basic weighted average shares outstanding to be approximately 281 million shares and diluted weighted average shares outstanding to be approximately 288 million shares. In closing, we began this year with the objective to grow cloud ARR by approximately 40% year-over-year to $442 million, achieve $1 billion in subscription ARR, and $335 million of non-GAAP operating income at the midpoint of the range. We are on track to meet these objectives through the first half of the year and we are reiterating our full year guidance for these metrics. Thank you. Operator, you may now open the line for questions. We will now begin the question-and-answer session. If you would like to ask a question, please press star followed by one on your touchtone keypad. If for any reason you would like to remove that question, please press star followed by two. Again, to ask a question, press star one. As a reminder, if you are using a speakerphone, please remember to pick up your handset before asking your question. We will pause here briefly to allow questions to generate in queue. The first question is from the line of Matthew Hedberg with RBC Capital Markets. You may proceed. Oh, hey, thanks, guys. Really great results and obviously it's a difficult operating environment. Now you noted strong results here and you're maintaining a level of conservatism by not increasing ARR guidance, which seems certainly prudent. You know, that said, I guess, you know, we're a month into third quarter. Have you seen any changes in buying cycles like, you know, any elongation or extra approvals or anything of that nature? Is it just you're maintaining that prudence with the expectation that something like that could happen at some point? Hey, Matt. Good to talk to you. I think, as we've talked throughout the course of the last couple of months, I think we're maintaining a sense of prudence, if I can use that word. Look, I think, we're all looking at an uncertain macro with so much going on, and I think I'll repeat that all of you know. I think the right thing to do is for us, we've obviously had a pretty good first half, and we see momentum in terms of what we offer to the market and what workloads we serve. Look, I think the right thing to do is to be prudent and be thoughtful about what the second half could be and walk into that by keeping our guide for the year and just see how the world shapes up. Matt, in response... [crosstalk] To your question. Got it. You know, we're about a month into... [crosstalk] Got it. Into the third quarter, there's no net change in the first month versus what we saw towards the end of second quarter... [crosstalk] In terms of purchasing patterns. That's great. Yeah. That's great to hear. You know, I think, you know, we're all really interested in the consumption, the IPU success, and it seems like, you know, you're seeing, you continue to see a lot of traction on that. You know, there are a lot of questions from investors too about consumption models and perhaps an economic slowdown. Any sense for, you know, how that might trend in your base case? Obviously it's an expanding trend, but just sort of curious if you have any sort of anecdotes on how that might progress. Yeah. Thanks for asking. First of all, you know, we're seeing a great mix shift in our cloud net new business, where now nearly 50% of our new cloud business being denominated in IPUs. As of right now, if I look at cloud ARR, ending balance second quarter, IPUs comprise 30% of that. A year ago, we were roughly, you know, 15% IPU denominated. There's great uptake as in regards to the offer and, you know, we're gonna continue to push it. We expect to be back past a 50/50 mix in the near term here. Thanks so much... [crosstalk] In terms of usage patterns, again, we're about a year and a half into the offering and we're seeing customers kind of scale up as we would like over their, you know, first six to 12 months. You know, we'll see kind of the first kind of two-year anniversary cohort in about two quarters. That'll give us kind of a better read on kind of the launch of the product, about a year and a half ago. Next question please, operator. Thank you. The next question is from the line of Pinjalim Bora with JP Morgan. You may proceed. Great. Thank you for taking the questions. Congrats on the quarter. I guess since macro is top of mind for everybody, I want to thread that needle a little bit more. You did talk about slowing down hiring as well. I'm trying to understand if you're seeing anything in the pipeline. How would you characterize the strength and quality of the pipeline as you kind of enter the second half? No, thanks for the question, Pinjalim. I think in terms... [crosstalk] I'll break it into two. In terms of the demand for digital transformation and data like digital transformation, those conversations are continuing to be basically very robust. In fact, I was in Europe last week, and I had met a bunch of CEOs high on top of their priority. I think in that context, our pipeline creation remains pretty healthy. You know, we had Informatica World, we are having these conversations. I think where you see the uncertain macro environment translated to that is not pipeline creation, is more conversion of that pipeline. Quite naturally, you know, deals get elongated. There is more scrutiny on deals, of course, in a time like this. You know, there are pockets of customers who are probably facing the impact of the current economy more than other pockets of customers, and there will be, you know, more scrutiny. Deal cycles may increase, scrutiny may increase. In general, I would say pretty healthy pipeline, strong interest, and that's what we see. I think, look, that's not a surprise given where the world is in the current environment. Yep, understood. Just to be certain, I mean, I understand you might see that, the lengthening of these cycles or deal deferrals, but at this point you are not seeing anything? Well, I think nothing out of the ordinary. You see where we were at the first half of the year. We obviously are maniacally executing, assuming those kind of things will play out in a, in a macro environment like this. Obviously keeping our eyes very close on the ground to make sure that we continue to execute the same way as we did in the first half. Again, that reflected in our guidance that Eric gave. We over-delivered in the first half. We're carrying the prudence in the second half, but holding our guidance for the full year for ARR metrics. Got it. A quick follow-up to Eric. The reduction in revenue of $45 million is, I think you're saying it's FX. Is it 100% FX, or is there a little bit from the mix shift versus conservatism in the second half? It's nearly 100% from, you know, from FX with, you know, more of that being seen in the second half versus what we observed in the first half. Got it. I'll get back in the queue. Thank you. Thank you. The next question is from the line of Alex Zukin with Wolfe Research. You may proceed. Hi, this is Trevor on for Alex. Thanks for taking my question. Eric, you mentioned that there were some customers starting to delay payments. Can you just elaborate on that for us more? You know, is it just a handful of specific customers? Is it coming out of specific regions? How are you factoring that into your own modeling going forward into the back half of the year? Thank you. Yeah, we experienced, as you know, last year, we had a really good overperformance on operating cash flow and working capital. We, you know, really had finely tuned DSO. What we observed in second quarter is, you know, at the end of the quarter, customers and those. You know, there were customers in all of our major geos, select customers that were delaying payments. We were expecting payments last week of the quarter, we didn't get them. Net, we saw a three to four-day increase in our DSO sequentially. We're expecting, you know, this new slightly more elevated level of DSO to persist as of the end of the year. When we run the numbers, they're rough and tough, an extra four days of DSO. That's what we're thinking right now as of the end of the year. You know, that's around $25 million of adverse to working capital. We're assuming that the level, in summary, is slightly elevated based on what we saw in second quarter. Thank you. Thank you. The next question is from the line of Koji Ikeda with Bank of America. You may proceed. Yeah. Hey, guys. Thanks for taking my questions. I just wanted to kind of follow up on that previous question on the delay in payments, Eric, and just wanted to kind of fully understand that. You know, appreciate the color there. So just thinking about the delay in payments, you know, has that been isolated now? Or, you know, just thinking about the future, you know, how could this potentially affect unlevered free cash flow further in the future? Yeah. This is what I would characterize as kind of a transient event. I think that, you know, we've kind of seen these things in the past and kind of, you know, macroeconomic slowdowns, people just trying to manage by, you know, paying a week late, let's say. If that crosses your quarter, as it did, you know, in our case, it directly impacts the stats. What we're assuming here is that, you know, the current level that we're at, a slight elevation persists throughout the third quarter and fourth quarter, and hence the modification to our unlevered free cash flow. The other thing impacting unlevered free cash flow is the full year higher cash tax payment outflow of $5 to 10 million. Those are the two things driving the -$33 million unlevered free cash flow for the full year. Koji... [crosstalk] The one thing I'd like to mention is, Got it. Thanks. Koji, one thing I'd like to add to what Eric said is that, I mean, remember, we serve the true enterprise segment. Our customers are all of the customers we talk about. I think we understand them. They've been long-standing customers, and I think this is a transient thing, as Eric said. These are the blue chip customers across the globe. We don't look at this as anything that crosses a longer duration in any way, shape, or form. Yeah. Just to drill down, one more level there, Koji, we've seen no change in, you know, kind of bad debt profile. These are simply, you know, a bit of delays as opposed to a change in kind of, you know, credit profile outlook across our customer base. Got it. Thanks for that. Just one follow-up here, if I may. Just thinking about the cloud subscription ARR guidance here. You know, if I run it through the model, it looks like the implied, you know, fourth quarter sequential net new cloud ARR add, it looks pretty good, like pretty healthy from a sequential add basis. Just, you know, I understand the enterprise sales and renewal cycle seasonality here, but just really kind of curious to hear what is giving you the confidence in that seasonal strength. You know, if you achieve that guidance, that fourth quarter net new sequential ARR add would be the highest yet by a pretty big margin. I'll go, and I'll let Eric add to the numbers as well. Look, I think, I'll break it again into two. We serve mission-critical workloads. To be candid, like enterprises are still focused on digital transformation. That's not going away. Given the uncertain macro, yes, we talked about deals can elongate. You know, there can be more scrutiny. At the end of the day, people have to invest in making their business digital first, customer first, our data governance has to happen, and we continue to see that healthy discussions. Obviously, we've taken our first half overachievement and made sure that that gives us the ability to de-risk the second half in a way and carry the whole year with improved guidance. Our conversations are absolutely the ones we're having with customers, as I was explaining. I was in Europe last week or the week before last, I forget now. All of the conversations were around how do I make sure I can help customers succeed, how do I understand my customers better? How do I get better analytics? I'm in a multi-cloud world. How do I make sure my data quality is good? Those conversations are happening across the board. Eric, you want to add to the numbers? Yeah. The other thing too, you know, we mentioned this, you know, on the first quarter call too. You know, we assume kind of a rate of change over the course of the year, a steady remix and improvement quarter by quarter sequentially of, you know, cloud net new business versus self-managed net new business. You know, we can see this at the midway point of the year and, you know, the significant mix change improvement in pipeline towards cloud versus self-managed. That's part of what informs our implied view on third quarter and fourth quarter cloud NAR sequentially in the guidance. You know, the second thing too is that, you know, another way to improve cloud NAR and imbalances is to do better on your renewals. You've seen a nice, you know, improvement in year-over-year renewals. You know, we noted one percentage point increase in overall subscription renewal rates. You know, inside that, there's two renewal rates, you know, self-managed and cloud. I can tell you that the cloud renewal rate year-over-year also had a nice improvement. That certainly helps the cloud ARR outlook for third quarter and fourth quarter. Got it. Thanks, guys. Thanks for taking the questions. Thank you. The next question is from the line of Tyler Radke of Citi. You may proceed. Well, excuse me, Tyler Radke. Your line is now open. Hi there. Can you hear me okay? Yes, Tyler. Great. Thanks for taking the question. I wanted to see if you could comment just on, you know, the overall macro environment in terms of, you know, supporting platforms and consolidations. You know, we've heard a number of companies talk about, you know, consolidating point products and niche solutions. I'm curious if you're seeing an increased appetite from customers just as budgets are more under scrutiny and maybe how you're adapting to that or benefiting from that. Yeah. I think, the three ways to look at it, number one is absolutely. We have the unique advantage of having a strategy of the best-of-breed products, as you can see in the Magic Quadrant, and a single pla tform, where all the products are very seamlessly integrated. Number two is that platform is a very open microservices-driven platform, fits into a customer's reference architecture in a multi-cloud environment. Number three, the whole IPU-based consumption model lets customers start and go from any service on the platform to any incremental service very easily. All of those things are allowing us to not only expand use cases, but also take out multiple point providers where the customers are struggling to spend money on just integrating them to get to a final use case. We see those benefits across the board, especially in an environment like this. Great. Thanks. Just in terms of overall cloud migration appetite, as you're having you know the conversation with these customers, are you seeing them you know increase the prioritization or just decrease their overall shift to the cloud you know just as they're thinking about their you know the roadmap for this year? Just any change in terms of the cloud versus on-premise that you've seen in your custo mers? No change, to be honest. I think, in general, we see no change to what we saw last quarter or the quarter before in terms of migrations. I think we always say that, look, when you look at our business, we are absolutely focused on every area on which we can help our customers go to the cloud with our offerings. Majority of it is we've continued to grow through net new workloads. Migration is a tremendous area of focus, still a small percentage of our overall cloud ARR, and as we've said in every call, we are having those conversations. Of course, that takes a lag because obviously it's an operational workload, takes a while to migrate them to the cloud. No change in those conversations from what we've been having in the last couple of months. Great. Thank you. Thank you. The next question is from the line of Brad Zelnick with Deutsche Bank. You may proceed. Hi, guys. It's Jamie on for Brad. Thanks for taking my question. I just wanted to dig into the cloud portfolio adoption. Is there anything you can call out around particular product module strengths? Maybe any parts of the portfolio that are outperforming? Or if you could provide some sort of contribution framework, that'd be great. Any color. Thank you. Sure, Jamie. It's kind of like asking me which of my kids I love more. Actually, to be honest, that's the beauty of the platform. I think you kind of was talking about our customer examples, and you can see from that the breadth of participation of our portfolio on the platform is pretty strong. Whether it's analytics, whether it's MDM apps or it's data governance. To be candid, like you take something like data quality, it's needed in an analytics workload, it's needed in an MDM workload, it's needed equally in a data governance workload. We think of it in context of use cases, and those use cases, all of them have participated quite well, quite healthily. In fact, we like that because that gives us a natural hedge that we have many use cases, and we can obviously traverse those use cases at any given point in time with our customers, wherever the investment dollars go. The other thing to note is that our use cases traverse from the front office all the way to the back office within a company. Whether it's helping to get new customers, understand churn, managing supply chain, doing analytics of the business, we serve the full enterprise. It's pretty good participation across the board, Jamie. Brilliant. Thanks a lot, guys. Congrats. Thank you. The next question is from the line of Fred Havemeyer with Macquarie. You may proceed. Hi. Thank you. You know, I first wanted to begin with just momentum that you're seeing around artificial intelligence, machine learning workloads in the cloud. I recall back in Informatica World that the Data Loader in the cloud natively was supporting AI and ML workflows. You know, can you talk about any sort of the initial traction that you're seeing there? Particularly, I recall hearing a number of companies recently, cloud companies, talking about the importance of AI and ML workloads in the cloud to their momentum in their public cloud businesses. Would love some color and context to what you've seen. Sure, Fred. I think, again, I'll break it into two parts. First of all, we've been big believers in AI and ML. In fact, we started CLAIRE back in 2018, 2019. First of all, CLAIRE, our AI engine, is embedded in every product. It's naturally providing intelligence and automation, like I talked about, data quality, you know, anomaly detection. There, there's rules, and then CLAIRE goes in and basically finds many more things that a human cannot find. It's already driving value in the context of existing products, and it's scaling more and more. In the multi-tenant cloud world today, we are running CLAIRE on our 11 PB of metadata. It's just getting smarter, helping our customers leverage that metadata. Secondly, in the context of Data Loader, you asked me the question. Indeed, early days, we launched a Data Loader. Our strategy there is to make sure that we make data integration or doing those jobs that are bringing data to the business user in a manner of such a simplified user experience. I talked about three clicks, and make it dramatically easy that the business user does not even realize they're doing all these complex things that a complex IT user is used to. There, obviously, we're pretty excited. We talked about data to BigQuery, Snowflake, and Databricks and expect more to come. That's early days, but great traction. We're tracking usage, and early days, it's exceeded our expectations. Thank you. I'd just love to ask a follow-up question here. As we also back in Informatica World, I believe that you highlighted and you announced industry-specific and vertical-specific IDMC solutions across financial services, healthcare, life sciences, and I think more. I just wanted to ask, could you provide any updates about your progress with verticalized solutions? More broadly, your strategy with vertical-specific go-to-market. Thank you. Yeah, no, it's a terrific question. See, look. The way we think about verticalization is we are not an application software company that you verticalize all the way up to the UI and UX. That's not the business we play in. But our goal is to make sure, like, when we bring data quality, let's say, or data governance, to financial services versus healthcare, versus life sciences, versus retail, there are many things inherently where basically they're industry-specific, whether it's regulations or types of data or types of things they do, that we want to make sure they are much more customized for them. What does it do for them? Reduces the time to value, accelerates for them to get their projects done, and reduces the amount of people and expenses they have to spend to customize it to their particular industrial needs. That's what we're gonna continue to do, whether it's connectors, scanners, rules, AI models, and expect that for us to do that for these verticals more and more, and more verticals over the course of time as we continue to take IDMC to more and more industry-specific use cases. Thank you. Thank you. The next question is from the line of Andrew Nowinski with Wells Fargo. You may proceed. Okay. Thank you. I had a question on FX again. I appreciate you were just in Europe, but if FX headwinds forced you to lower the revenue outlook and your solution is presumably more expensive for international customers now, I guess, did you also factor in a longer-term slowdown in spending then from international customers? This is Eric. No. I mean, just to recap the change in FX, you know, we didn't really mention FX in the first quarter, you know, we're only 90 days in. Here we are at the halfway point, and it's very clear that the US dollar has strengthened, is gonna remain strong. I mean, it's, you know, plus choose your functional currency for us, the currencies that matter. You know, it's 15% to 16% stronger kind of year-over-year. The $45 million is simply, you know, that translation impact. It has nothing to do with, like, a change in demand in international. The other thing I want to point out in FX is that, you know, we're rather unique in that we have a very large amount of non-US dollar-denominated operating expenses. We have a built-in natural hedge from FX because, you know, our euro, Indian rupee, et cetera, expenses with a strong US dollar give us that natural offset. Notwithstanding that, you know, we're changing the top line for FX only, and we're able to absorb the net bottom line impact with that OpEx offset, and we're holding non-GAAP operating income constant for the full year. I just wanted to make that point on, you know, on FX as well. Okay. Got it. If I just have a follow-up to that, I guess, geographically, how was demand in Europe, you know, through the month of July as well as maybe even last quarter as well, if you could provide any color on that? We didn't see any degradation in demand in Europe at all. I mean, I think Europe performed pretty fine for us. Nothing out of the ordinary that we saw or we are seeing, to be honest. Yeah. Maybe to clarify too, you know, we talked about international revenue being up 4% year-over-year for second quarter. If we had FX adjusted that growth rate would have been roughly 10%, pretty much in line with, you know, US growth of 11% revenue year-over-year. Maybe that helps further calibrate the FX impact. Got it. Thank you so much. Thank you. There are no additional questions at this time. I will pass it back to Eric Brown, CFO, for any closing remarks. Great. Thank you, operator. I'd like to quickly, you know, do a bit of a recap as we hit the midyear point. First of all, you know, we opened 2022 with full year guidance for 40% cloud ARR growth, $1 billion in subs ARR by the end of the year, non-GAAP operating income of $335 million at the midpoint. We are ahead of these objectives as of the end of second quarter. The only things that we see changing for the full year is the top line only impact of FX as discussed and a transient decrease in unlevered free cash flow due to slightly elongated customer payment cycles and higher cash taxes. Net, the underlying health of our business is excellent, and the advantages of our scale of $1.5 billion in total ARR is evident. Amit, back to you. Well, thanks, Eric. Once again, I'll reiterate that, look, we are a very unique company. We've always said that we focus on enterprise customers, mission-critical workloads, building out a pretty scaled multi-tenant cloud-native platform. That has given us the ability to observe healthy momentum from current and new customers running their mission-critical workloads on the IDMC platform. I'd like to reiterate that we reported a great quarter, we reported a great first half, and we remain on track to deliver our commitments for the second half and the full year for both growth and profitability. Thank you very much for your time, and I look forward to next quarter. That concludes today's conference call. You may now disconnect your line.