Intapp Inc (INTA) Q1 2025 Earnings Call Highlights: Strong SaaS Growth and Strategic ...

In This Article:

  • Cloud ARR: $309 million, up 27% year over year.

  • Total ARR: $417 million.

  • SaaS Revenue: $77 million, up 30% year over year.

  • Total Revenue: $119 million, up 17% year over year.

  • Non-GAAP Gross Margin: 76.3%, up from 71.8% in the prior year period.

  • Non-GAAP Operating Expenses: $75.6 million, compared to $66.5 million in the prior year period.

  • Non-GAAP Operating Income: $15.1 million, compared to $6.4 million in the prior year period.

  • Non-GAAP Diluted EPS: 21, compared to 6 in the prior year period.

  • Free Cash Flow: $24.1 million, or 20% of total revenue.

  • Cash and Cash Equivalents: $253.8 million.

  • Cloud Net Revenue Retention Rate: 119% in Q1 FY25.

  • Total Remaining Performance Obligations: $549.4 million, up 32% year over year.

  • Number of Clients: Over 2,600, with 707 having an ARR of at least $100,000.

Release Date: November 04, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Intapp Inc (NASDAQ:INTA) reported a strong fiscal first quarter with cloud ARR growing to $309 million, up 27% year over year.

  • The company achieved a 30% year-over-year increase in SaaS revenue, reaching $77 million.

  • Intapp Inc (NASDAQ:INTA) expanded its AI capabilities with new features for INAP assist, enhancing client adoption and validating its AI strategy.

  • The strategic partnership with Microsoft was furthered, contributing to increased co-marketing and co-selling activities.

  • Intapp Inc (NASDAQ:INTA) saw a 32% year-over-year increase in total remaining performance obligations, indicating strong future revenue potential.

Negative Points

  • Professional services revenue declined by 8% year over year, reflecting a strategic shift away from services revenue.

  • There was a noted deceleration in cloud ARR growth, raising concerns about future growth acceleration.

  • The company experienced lumpiness in large deals, which could impact revenue predictability.

  • Intapp Inc (NASDAQ:INTA) is facing challenges in migrating existing clients to the cloud, which could delay revenue recognition.

  • The focus on expanding the partner ecosystem may require significant investment, potentially impacting short-term profitability.

Q & A Highlights

Q: Can you provide an update on the current deal environment and any changes in the financial services sector? A: David Morton, CFO: We haven't seen any changes in the deal environment. Demand remains strong, and our pipeline is robust. While there is some lumpiness in large deals, we haven't observed any macroeconomic impacts, even in financial services.

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