Intapp (INTA) 8 Sep 212021 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Intapp earnings conference call. [Operator Instructions]

I would now like to hand the conference over to your speaker for today, Mr. Barry Hutton.

You may begin.

everyone. Hello, Fourth XXXX Intapp's Conference Fiscal Quarter to Earnings Year Call. Welcome

are call the CEO Officer. with the John company's me Financial Robertson, On Steve today Hall, and of Chief Intapp;

forward-looking conference and performance made anticipated our as certain and current business. are date we this views and statements of of are forward-looking of on course trends, strategies today's the may During subject assumptions make based statements These and regarding the entail call, to the management's expectations, uncertainties other related economic and various industry obligation described or any any including of SEC filings to and disclaims available in those revise publicly risks forward-looking to COVID-XX our documents, on financial global impacts the statements. Intapp update our conditions. business, services

call, that release will available non-GAAP of understanding call. exhibit this X-K furnished we website in the with comparable certain discuss found the and we Form earnings as which be our can aid SEC in today's to financial A prior metrics of the also today's GAAP is Further, results. reconciliation our to believe on on an metrics

that, With call hand to I'll John. the over

providing XXXX public Barry. reviewing CFO, I'm you Thanks, Thank year ahead. for a all us into here results, fiscal Intapp's recent Intapp we're some insight few and afternoon. a how strong first today, as quarter call our with our you for our we'll And fourth Steve earnings providing thinking Robertson. joining about spend Good company. time year sharing the highlights, full

since, a cloud XXXX execution building that ended high a helping Leveraging the position, integrate our we focus data. law on with strong expanded, on businesses. firms great and demonstrating continued financial was from this services a across firms. years fiscal and Intapp their for deliver quarter, professional in fourth modern XXXX manage In foundation to a and growth industry note market year with founded we've

also our revenue increased adoption. of as growth, cloud driver markets annual digital business our Our the overall transformation to key and revenue high-growth is leads the in recurring of cloud total serve we

specific during I'd will highlights. to a comments and our around but you share remarks, few and with guidance Steve like provide details results his

Throughout of the pivot and accelerate technologies the cloud. seen firms financial professional and have services adoption new last their year, to we

XX% You ongoing adoption at work in our $XXX can first cloud-first year, we and June of And see results is the increase from the of ARR million, ARR, XX, the ended $XXX cloud of ARR up now market's cloud as of from with our increased our ARR XX% strategy total XX% fiscal million reflected our ago. an Cloud year a prior total year-over-year. year. XX% total our of

continued the a and results SaaS our total of by solutions, public to support first while In $XX.X QX, adoption year-over-year million pleased of We're driven revenue year-over-year cloud company. our our increased revenue quarter million. XX% XX% $XX.X increased with as to

we for first our that Intapp, here moments an solutions overview earnings few call markets whom with share those met, you of we provide serve. take a yet process. We our during the the like us milestone. had most fourth of during employees, I'd the take clients, advisers, and the completed also investors this opportunity of We IPO this reach thank to to members all speaking helped partners, who Board pleasure quarter. we But many haven't on the of significant And and of to I'll you the

breakthrough our professional As trillion we accounting deliver a performance scope, their banking, help to solutions private a manage developer professional firms I the years better and services and make full strategy for the to cloud industry we've services $X law and legal, expanded our that designed Today, consulting industry. ago vision capital, firms. of up executing broader Intapp financial as of platform of and now was ecosystem enable Since we're and firms then, investment financial XX a mentioned, to data. founded the

as market make billion. addressable economy. of the and of world's the $XX group, Intapp a a and a facilitators well they profitability. addressable for of serviceable $XX firms up market central billion durable is over a These positioned total continued are And very market large with growth and

industry As made nearly aware, different. The you every and are is making transition financial cloud. has professional to industry the or the no services is

technical these past we on-premises flex legacy and place taking business as accessing to the and to dispersed in For applying eliminate by seen keep decade, firms workforces remote markets accommodate shift solutions, decisions. better steadily data to the the debt look more and pace have of

happening COVID. All impacts even was of the of before this

As a result, our cloud rapidly. business is expanding

are we on-premises of to new portion renewal. decline in business slowly annual targeting subscription and forward, those the to cloud our a license are sales licenses cloud upgraded the all as Going upon expect

on It's been of institutionalizing specialized, knowledge Because that working business knowledge sell and population these expertise. is specific large firm's applying hasn't these adopting firms a firms worth challenges, the so their sell with products, technology in and that professionals. physical emphasis special needs and harnessing industries noting a greater transformation experience unlike built professional to that services financial has tend taken companies across and their Digital successfully mind. in

way technology regulated built complex For very the do that too have and industries without for found we serve long, they business. systems themselves the

issue. yourselves, very professionals with experience well firsthand this may you As have investment

the the internally on The clients. solutions up limited also and aging needs difficult rely today to on firms by functionality. usability market of often built to solutions Legacy capabilities, not the scale. traditionally architecture, solutions and are have are maintain, keep legacy able features developed business with is modern build with been core and homegrown, still of served Many expensive and the lack that to

we more with transition still business part of the systems particularly We replace the and cloud. competing market, grew this the the to embrace Intapp as these consistently, firms

traditional complex who professional rely built make financial their companies, relationships found we the of of systems the support product traditional services to expertise, that for who software CRM struggle people, firms to drive their specialized this the on up Traditional their industry ERP firms and and systems. Finally, to and horizontal their not make use business. were needs

they complex expensive And customization. still require result, then, short. even and a these fall horizontal As often systems

antidote to homegrown the solutions. is legacy horizontal and Intapp

building the what deep platform clients based these are understanding need. modern on of We cloud a

probably in familiar enable and transformation digital vertical services professional the life the You're model is its the to cloud and the industries. sciences of this market with firms. strategy success Intapp insurance and financial industry using cloud of

and purpose-built market for the opportunity advanced Intapp. solutions technology grow than in ahead advantage. We'll to enormous invest and platform Our continue to market Intapp innovate sustain more our and offerings. an other There's are

bankers solutions are built you our you. company our are or For have those or and yourselves, who lawyers, of investors for been accountants,

and go with We Each a under cloud brands. currently same our technology. brand to is the market industry solution X of underlying platform configuration different

financial services activities. deal firm's the prospective for client, is current investor sector manages relationships, and clients and and DealCloud and compliance deals investments,

rates and this fees. greater coverage enhanced higher win and advisory firms, For into models, translates banks investment success

increase For investors, volume, it returns. investment support selection helps origination and greater drive

firms, profitably. and OnePlace firm and effectively is development, to delivery. for business their and efficiently execute and services strategies, and compliance and to manage obligations risk clients risk win legal, consulting engagement grow compliance helps go-to-market manage and firms This and knowledge accounting enables to professional work and better

technology have capabilities. been our our Acquisitions always to part a expand of strategy

plan enterprise are to X Office which content Repstor's to financial best We and and Most Microsoft growth successful management confident professional access XXX of portfolio to accelerate and our acquisition acquisitions the and opportunities have us in for Repstor Teams of collaboration We're designed strategic open recently, QX, and addition, services current provides in serve new the in our tools, to date. completed platform our specifically potential which always firms. augment are clients. our to

we includes related is noticeable acquisition our more roughly XX XXX clients as premier Today, to fourth That increase quarter countries. now X,XXX a prior Repstor. firms from periods it serve of than in number

X top We're include proud of law we private firms. firms of X investment of capital the world's U.S. accounting X,XXX Law global Am clients and serve, the and over of top the the largest banking XXX XX firms, which

a the penetration. have base, primarily account within deeply go-to-market base starts whom time. solutions, its many focuses with strategy with on deeper more core. There's our The client to seats with at largest more entrenched a approach been long for room expand firms and of with tremendous land-and-expand and enterprise us large Our our approach

we with platform. full the smaller to firms, market tend go to For

we class clients take upmarket enterprise all we technology existing focus their once, a out the to ripping or of to our on improvement firms, achieve. As investments area we'll larger goal Instead of more move are trying that key modular at approach. a a

Over solutions, portions churn our business. our low. and very users we our is into nature other solutions, typically the expanding clients' add time, Given of mission-critical of

XXX%. the rate Our net range within trailing revenue expected retention XX-month of XXX% to was

enterprises global we quarter, Every from growing markets firms We're clients we across the and large add also base. serve. mid-sized new all rapidly firms, that our of client

brand they move This As from recommend network and to new often our further helps industry firm, partners platform and expanding professionals for the client their effects circulation the recognition powerful of to create professionals platform. Intapp across loyalty. to firm employers,

the domain financial truly We deep firms professional next-generation that to of services else technology, has expertise Intapp's that and one combination challenges purpose-built believe face. no address and

to purpose-built and We have against legacy a and compete successfully more for leader the with services. the a as homegrown compete scale, solutions. financial we're brand the and client as and with horizontal professional cloud strongly to And trust industry applied recognized horsepower now with platform AI comprehensive cloud-based solutions industry

with years partnership McKenzie, one In their Automation we a they Today, law client, the innovation Take, have Conflicts Intapp, the is Workflow ago, world. key for and a data recording, firms partner implemented history Baker single-point they Management, time Mackenzie and our platform Intapp and and the decade integration. integrated a of grossing Baker platform their the highest than More full a Intapp product instance, Management, solution as long largest Confidentiality solution. continuously have since, in become using embraced from in first program.

their and serve the the and flexes entire comprehensive XXX-degree example have best client process a of their They cut as our most intelligence and clients. onboarding time efficiency solutions are drive the improved strategic their growth. is they tremendous our harnessing client to centralizing the of their client to clients view of exemplify and their that data and their centralized power support of to now in needs inform suite the data growth and now decisions of to relationships, response cycle. Perhaps They've client significantly, half, XX%, a drive they're to across way they strategy evolve, life by using

that firm, example deal impact an of Intapp scalability When they're improve Hamilton to management a and grower sectors the was help They services to alternative investment They're and they fast chose deal flow Intapp to their across the ago, improve that it Lane flow selected and they is solutions. also they a they great processes solution world. X the CRM. providing ensure because around wanted as process to grew. business could private market of manage a evolve tool and geographies. investors their could years the support needed them

replaced process first Our XX,XXX Hamilton since, years and XX and partnership. centered solution disparate and management. Lane alone DealCloud e-mails, helped we're single systems than alongside their the year eliminate grateful customizable has expanded, flexible the business in And more their the of firm to has databases. those grow for of to most In DealCloud around and as proven proud

clients team every what passionately Serving these like is our day. pursues

our recent most to overview with share our a most of an pleased the successes recent to and client few you quarter, Turning I'm of just performance.

their way steady that are introduction new of to a from faster. clients, helps moving and to a achieve quickly We we're committed value providing clients seeing in objectives ramp

their implemented In net work their estate information management, Deal than with landed firm organically. a centralize closely private XX deal a and firms this selected signing team, than and more solution operations. real less QX, and speeding Cloud X,XXX their focused provide the time their their Canadian in go data. size, equity to X we our streamline Pacific, pipeline to with live, months, new leverage relationship than value. to we logos to software We better Balfour more them platform drive of From complete working

with some of most in continue relationships our names significantly, industries. expand Equally respected we the to

can client global example enterprise the our in top-tier U.K. great challenges we are of a a organization. for example, an the a and example law great over time. provides They opportunity how Intapp XXX-or-so drive relationships prestigious relationship Freshfields, have across the large a and grow international headquartered several where firms For client to solve of years, firm the

of engagements. include through additional staff grown Freshfields its to accepting Risk significantly Having cover also in process streamline selected Solution to Intapp of accelerate QX, recent client our and scope the and new onboarding AI-assisted acquisition, Compliance They staff. conflicts contract increased review a to the and seats and to all

Finally, while existing the solutions updates. on which top to moving automated ownership latest innovation they're reduce Intapp cost staying to enable will through of them the cloud, the of

of expansion better of outcomes. our Thompson needed firm. current leverage a we and data the leverage the to replace for This the to solutions growing client and XXXX, the to is their across and another of the QX, and our clients. Thompson is to its they within that strategic sources cloud and best solution firm to valuable move external U.S.-based better Coburn data serve happening since In bespoke is an legal example firms to and drive Coburn the meaningful client example their and enables revenue cloud firm Thompson achieve and OnePlace generate platform full opted migration its rapidly, internal mid-sized them platform. client to full target connect full-service efficiency of goals with legal A base. hundreds one and relationships for to Coburn

examples expand above our power execution. show the The and land of

As of than more $XXX,XXX we clients. clients of million. of of than $X had ARR June over XX those X,XXX XX, more have of XXX which generate ARR,

challenging significant helping about they leading vertical reinvent We're to with validation that a summarize, accelerate excited results firms continue that year of We're the that financial began adoption and ended strong ahead. even very the to these most Intapp opportunities To COVID, market a the by the cloud fourth and revenue delivered optimize in operate. way services and with uncertainty quarter finish growth professional shift of thrive, to and circumstances.

opportunity billion, our have global $XX of serviceable base an recurring with stable, and growth enormous a addressable potential existing subverticals. $XX and TAM and billion we a market have of a in of tremendous each We client

time and you Thank progress you know updating and and better success. We Intapp's look upcoming to quarters forward in today. you to many your the for getting years on of

walk to CFO, Robertson, over With Steve that, call I'll our turn our results guidance. the financial to through and

you. to Steve, over

today. and for Thanks, us joining everyone, thanks, John,

go I'd to our like the I review Before of fundamentals through quickly the financial model. numbers,

is value by Our contracts. renewal recurring new the annualized ARR, of represented is business which our and software our total all of software recurring

time, and percentage components Cloud today forward are of of nearly total ARR, our all of the ARR and There will total majority ARR plan each recurring annual good believe of total new sales our quarter. are cloud ARR bigger is of and our an as our are cloud the we ARR to them cloud and on-premises. We growth of sales. our going be indicators our X metrics report business increasingly over

following SaaS recognition, more On-premises it in XX% revenue revenue ratably included of ratably, or sale revenue revenue, is SaaS new ARR of ratably parts: renewal. revenue, generally terms at and is cloud recognized In recognized recognized license the our as support as renewal; and up-front quarter-to-quarter. subscription is SaaS and recognized as the line. Because or revenue X recognized time and XX% support be support will ARR sale a in predictable

primarily episodically is vary the business, it because can or when to revenue is quarter-to-quarter initially significantly licenses recognized which license our delivered subscription are renewed. revenue, contrast, as related on-premises subscription In legacy

We the on-premises which revenue our subscription the cloud will expect migrate and tend over time related support to migrate reduce quarterly business revenue, license to this to variability SaaS over time. to and

generally services services of and on-premises revenue professional of as migrations cloud of recognized time and a variety new SaaS and a the build other primarily implementations from basis Our to materials to clients subscriptions, built. relates on

would trading Lastly, the XX, the began on on that IPO note but closed July technically I on June Nasdaq we X.

will proceeds September reflected the 'XX new fiscal not our reflect year-end and fourth our received issuance conversion first shares our paydown quarter preferred the of of be shares, or to quarter debt. in the financials financials net XX. the of ending so Those And common, do

Okay.

results. million $XX.X sales Moving to up $XX.X Total by increases XX% million our now up million, or solutions. in and year-over-year, was professional fourth of degree, adoption services solutions the cloud a to revenue and quarter our or revenue $XX.X was and reflecting our subscription lesser sale primarily million, by of year-over-year, driven SaaS and continued XX% strength $X.X cloud support license in revenue.

of $XX.X revenue periods. million, Subscription both reflecting X-year primarily multiyear subscription was business license license and renewals on-premise for

this As be on a line revenue item noted can variable earlier, basis. quarterly

revenue $X.X of the into including a first our onetime clients, million, was extend cloud migrations will 'XX. select implementations for software for to reflecting Professional and that services cloud fiscal the quarter of project clients

up ARR and XX% Turning to million. $XXX.X fiscal XXXX. ARR, represented our market's cloud. our total XX% year-over-year grew a year-over-year from full year our for million. XX% ongoing Total ARR cloud-first XX, business XXXX, results focus of shift Cloud ARR cloud year $XXX.X grew ago, the reflecting to June At to the to XX%

XX% million. year-over-year support and in revenue million, $XXX.X SaaS $XXX.X solutions. revenue cloud and Total sale the adoption increased strength year-over-year our to continued increased of to XX% reflecting

$XX.X reflecting license with license was cloud migrate our of our million, they was clients primarily decrease Subscription This business. year-over-year, are the subscription renewals revenue legacy line modest ready. a when to strategy to in

revenue was $XX.X services million. Professional

effects activity by beginning 'XX. of 'XX the of year Our was overall fiscal the both year at COVID, services impacted during of fiscal the and end

mix, remaining Lastly, in fiscal 'XX, revenue slightly States. 'XX, in of XX% revenue United was terms in for fiscal our year our the from of up was of XX% international, XX% the and year revenue

will I non-GAAP expenses and to margins, results I that profitability, want note gross forward. be discussing Before discussing going

financial earnings GAAP be can As along between supplemental found a with its reminder, results, release and GAAP tables. reconciliation our in and our press a results, non-GAAP financial

prior in was year from XX.X%, revenue. the license quarterly subscription higher-margin as function margin gross increase our period, a variable XX.X% up quarter, primarily fourth the in a For of

publicly growth our and million, the was year-over-year prepare to increase we to as $XX.X Overall, company. operating expense million a a become support traded business $XX.X in invested

fourth such considerably when levels compensation as managing fiscal of fiscal quarter fourth bonuses we In the the of compared 'XX in reduced we were paid COVID quarter in of of pandemic. the and normalized the uncertainty addition, commissions to 'XX

Sales reflecting our and as increase of count expense was head marketing and increased million commissions to part a investment addressable market. large $X.X $XX.X pursue million, year-over-year, our

R&D cloud in solutions. we expense million, year-over-year million invest as continue increase to was $X.X firm a our connected $XX.X

expense was expenses $XX.X of our G&A million And $X.X for a year-over-year, million, IPO. preparing increase result related to a as primarily

our as $X.X fiscal operating profit discussed. profit reflecting 'XX primarily was the in increase million, million fourth expenses just to operating compared of operating $X.X Non-GAAP quarter

the compared as fiscal Non-GAAP fourth net loss $X.XX quarter share was in the in per period. 'XX $X.XX to of prior

As fiscal count uses prior share on that is per earnings a basic 'XX this the to reminder, share X. IPO of calculation July a quarter fourth closing our

full of For million, from in the in XX.X%, prior revenue other we the an the as XX.X% year, SaaS by increase and million growth and expense an invested was gross Overall, up increase was in the $XXX.X year support fiscal support XXXX, count business. a relatively modest margin costs. operating increase of in year-over-year resources related head $XX.X primarily in driven and

Sales we million, and as a resources marketing expense go-to-market increased was to $X.X year-over-year our sales. increase $XX.X million drive

expense $X.X $XX.X the connected product year-over-year for to road million, continue R&D we million solutions. in cloud invest was a as firm map our increase

increase was million expense driven a becoming primarily million, company. $XX.X G&A year-over-year, And a associated publicly $X.X by expenses with traded

our late business. in investments of normalized support the and was 'XX. million increase $X.X a returned 'XX, in to of Non-GAAP low million, of the fiscal first the the following fiscal restructuring COVID-related half growth pace hiring our operating relatively as expenses of Intapp's operating fiscal were of in half In profit second levels 'XX, $X.X year-over-year

was in per fiscal compared as $X.XX loss 'XX. net fiscal to $X.XX share in 'XX Non-GAAP

prior compared of improvements expense million CapEx of consisting certain in $X.X software million as year, primarily facilities. and the capitalized In cash to $X.X at flat our flow, at remained essentially leasehold terms

as positive for as Our for million remain investing for 'XX 'XX cash unlevered cash Intapp's growth was flow to committed million we of to compared the free while fiscal business. free $X.X flow $XX.X fiscal

payoffs ended IPO, closed cash reflect Turning fourth not on proceeds to $XX.X which with cash quarter X. in July million the the and balance does cash associated sheet. the equivalents. the This with debt We net and balance

guidance. now Turning to our

and $XX.X 'XX, of quarter million, million. $XX.X we the total of fiscal $XX.X to For expect in and of between the $XX.X support SaaS and million revenue million range revenue first

the million and of common share We a a share XX to of expect $X.XX of $X.XX, shares loss million $X net using non-GAAP $X range basic a outstanding per loss the million count non-GAAP operating post-IPO. in to in range approximately

'XX, $XXX of range and fiscal total of support and year of in the we million, full $XXX between to the million. $XXX For and SaaS expect revenue revenue million million $XXX

loss $X.XX approximately We loss of of the XX the and also in million $X.XX, per million fiscal $XX.X weighted net expect operating non-GAAP using range to in a $XX.X year a for shares. million of count a 'XX share basic to share non-GAAP range

John I questions. With and look forward taking that, to your

with Our line Instructions] the JPMorgan. of Jackson comes [Operator Ader from first question

Great, and markets. public the welcome to

customer in First about XXX fiscal think on additions. organically 'XX. or question the is about we so If customers adding

should number as investors will thinking terms growth of how drivers new we net how of rank forward? So be new, in the logos like, And going that about main move forward?

do to John, me one? take want you that

Sure.

Yes.

about I acquisition. of X,XXX the first all, get that Jackson, customers it XXX the come from think, of to Repstor

note that. to will count pretty increase logo I you strongly sure So make And our year-over-year. wanted new

that new it's fairly dynamics, seeing a little upsell. think we're logos ARR on quarter-to-quarter between I new balanced. new retention net balanced pretty varies the bit depending and but and on It sales or balance,

the opportunities logos time, good over from from So new revenue upsell we we but equally strong growth expect have.

What on Okay. to on housekeeping a contribution profitability follow-up the All or year? to was the the acquisition the expectations the and then just ARR for top what from the contribution And in ARR that cloud right. next are Repstor. line Great. then item And for quarter?

the sell have platform. excited to the we that to on some ARR forward Yes. it deal combined in is ideas we do was we We're of be the integrations revenue. closed millions really the detail that. was and opportunity the X, June about It's Teams And kind the reflected there. single-digit with product integrate going contribution business of about opportunity. there's And only so low they X We month. can to purchase technology going term have in upside -- we're talk a not long the after primarily take and that. our Microsoft It good The really opportunity

the next Ikeda Koji Our comes line of of question America. from with Bank

a public My couple the on first company. a first quarter for you. I -- Congrats got as

First XX there and ARR you noticed XXX, those really guess $X specifically on those jump nice said customers, -- customers. the $X that on XX question, you really expansion million-plus customers last customers? I what's I XXX,XXX from That's driving quarter. million-plus from noticed nice plus a sequential

Yes. Well I think...

Thanks, Koji.

go Yes. ahead, John. Yes,

There's some good here, Steve. ahead. numbers right Go

Well, a going I combination across really the for upsell, was to through say, million We board. us with it's just which larger do huge get $X opportunity to a is clients.

the clients we're and land both also X-figure services. professional getting We and out occasionally, of gate clients in financial

it I didn't feels cut want to John, off you So But here. balanced.

point And right. No, make the platform strategy would that is we absolutely is that's working. absolutely the other that

expanding taking the that. up to technology, in taking the applied and see more excited firms platform really up more footprint, the the we're So areas, of of each these solutions of are AI in the

you. John And back, it. a taking a question either and step I of Steve, Got it. for guess Got

curious awareness vertical within inbounds versus you're of well when guys You the change hear in to core markets awareness very to you're private? hear, that now of within company public the are curious has public or becoming getting, any how markets. the a now that you're been serve. you're has that maybe the But known changed Just there public, amount Intapp your that you

Many the excited public. the markets, advisers go after years serving we bootstrap these about various the on company to were financial participants definitely was that call as opportunity, that are helping, markets It of of many we in well. and is of and forms as private one reasons a the clients that

us a marketing for financing a addition And so event. great actually opportunity the IPO to was in

the we the day of obviously, on public the years. XX, quarter last in last was went Now which June very few

So of is looking for we're lot reasons multiple But the as that a here. company forward. for showing public a great think us not that I opportunity

it. company. Congrats first on a quarter Got as the public

Thanks, Koji.

the from of line comes Crédit Kevin Suisse. question next McVeigh Our with

Great. And great job.

was XX% versus how you from modules that additional us clients? talked You cloud maybe much ARR of growth. existing help logos understand about new Can

Generally is good the that as Yes. in fair business we well. logos, speaking, majority of have new but of the amount a upsell cloud

new of cloud So weighted the to ARR. it's in slightly terms logo

sales 'XX? the you're R&D then and of similar model context scales? in the And kind should call out as Great. it the Or as seeing those because guide, about of about as marketing 'XX and revenue really around maybe we versus nice think obviously, think anything G&A to percentages you leverage within

hiring be our curve consistent, to in see stay margins our opportunity. and to we're try a huge I se. ahead Well, of growth we see per move don't

I think we've been investing nicely.

got growth opportunities sure As we stay in ready trained who of sales to so at pretty our to field of out COVID, normalized and investing We've levels. to been go we nicely ahead make came people we've are and on.

going we'll continue that So -- forward. that pattern

Terry question line of Tillman next Securities. Our with from comes Truist the

selling, as we've we're through our first question just Congrats to these of well questions. gone markets now from me in quarter pandemic, of some is cloud. strategic platforms, the may around where the discussion the kind as a that on the consolidation around to not be and most maybe of IPO And hearing conversation solutions, to consolidation. terms a there play vendor point the of relates part moving workflow dealing kind with as working in playbook but in that the how approach every vendor us is lot of of around innovative My

even vendor maybe or curious Just of a expansion how logo consolidation sales new driving kind in terms of maybe vibrant win. is

these as is includes of they Terry. not grow. transformation consolidation of vendor that It's many strategy It's to own. M&A the growth Thanks, doing firms A obviously, an their are factor. of other digital the we maneuvers, but a that only important lot People important firms factor. Yes. have serve

of of can bring them. most today, serving have that on the core scale that the technology consolidate we're consolidate call because we the platform and and And relationship opportunity overall of around infrastructure a the they some we their what industries they expanding and the at want And more to looking kind platform to our there's we they're more so strategy a increasingly their a firms has that do. of of big company as history more in and components with that as part

to important So they're addition that overall aspect it's digital achieve. the an transformation to in trying

us guess, subscription Okay. that's item renewal need could that's we on kind I maybe appreciate, that can volatility side any just it. help on a that book anything to maybe in on-premise you the to fiscal the Got but business quarters that, question. of nature a as large line we large 'XX, the Maybe and of renewal -- anomaly And a some that's one-off or Steve, of that business in related is have follow-up the look there into in model? larger

Well, what is it say is variable. I I'd think

activity We already we renewal it own COVID, this isn't have X do which last had renewal did, has its a 'XX, that did renewal the example. we or effects then year for If year for in next we years. X-year indirect for some

And can so on renewals, X-year three you a relative the outcome get basis as 'XX. different for to fiscal compared

interested on to in the X clients So renewal, We're there's do books. accommodate our renewals and year. in we be But these can are trying nothing them. work in certainly we cases, X-year particular what some have to

that cloud migrate surely as answer there. and clients our out trying is we keep but slowly down short road. to So looming nothing And moving said, to the in particular we're

comes of next Brian Our James. Raymond with from the question Peterson line

on the congrats my echo I'll results. strong really

the first some of customer points what for you of that to more year drive really friction key in lot seen have guys the there I'm one are curious, And adoption? eliminate in maybe what was terms a So cloud solutions. those And talk using spending here, homegrown solutions? you can a on pandemic me, just of

over horizontal to answer is our invested me available had to too that convert of XX homegrown rational for you Brian. years, only the platform. have And and too is, complex for the them. to past still something firms that? why to Thanks, The are expensive always they build yet horizontal argument internally solutions works just the These and solutions into well, the try purpose-built and systems them when them indicated lots core

industry a point our I've opportunity always the strategy that felt So of is market the us market for of and homegrown cloud overall. great evidence

lot is lot them right And out, very the of industry but model quickly. lot from are there's had a and work is bespoke in just a because companies, What a the homegrown the real urgently the of as saw benefited work plus the situation systems looking and we saw they traditionally remaining a to solutions been at people with ours agility for this, away they during to them. a on-premise cloud work-from-home to system, cloud was everybody of that now that had to market couldn't more much think respond features a with I the among of keep last humming cloud people awakening into look pandemic that have vertical designed stuffed from bringing cloud that not to how true really home very at

horsepower relationships, interest lot a of difficult we've the in So of AI lot they we differentiation client core across the of create applied firm lot the from is for had different have have points interest firm a in And then pillar AI, the platform's globally. horizontal deal any to top of of scale we of very management. solutions. replacing data actually, a in platform the which A of several that in compliance that's traditional to advantage take think to the and invest have on that,

So kind some able market be get capabilities just agile, to enabling solutions from to work weren't to we're able to and there's the then both homegrown more home bring today. successfully folks more the additional that there's to of that

the those areas. So are of some

that. Great. And follow-up a maybe just to

was John, As you interesting the how could we will we of think today, that you it's think here anybody as proposition but don't is these But that that long and curious how like great and really think changing play of evolution I'm overview out. do it. some out, adoption I take? a that how to value about think seems to would play accelerate like this dynamics. see But transition? sit kind to curious take it I'm COVID will just long X- this anticipated a X-year --

long a time. we've working market mean I Yes. this for been with

industry of our understanding of points of market of in and the firm each for and industry key works we how history developing the differentiation works, trust works. think I building that years have specifically XX the is this one

as the and them to this trusted variety cloud. at responding to technology us the move look legacy that solutions they're specifically to get and understands they see cloud, of their when both homegrown they to the that company on-premise So forces to how their

our the increasingly in that to as emphasized the with we've working they made decision cloud. We're strategy. move firm each So have to

as COVID less is it's about strategic which I were and underway, accelerated there say each they're a or get was of do them. to we're platform. was map it's our a the each will years more out upgrading of today, it practical people examples bigger the made a that's where definitely plan cloud, or to What had was there XX I to maybe choice, how firms. switch whether to just figure we cloud, that of we of already what how a this of road X trend some much on-premises about going part on And of talked saw a a quarter and And the ago. choice with of with and get choice build doing much what's saw to our all trying there. become And that that already benefits move actually version

trends I because not from is I shift the COVID in specific don't that that I'm underway. think direction, think benefit to but quote we're the it. and accelerated all want I years to sure, the that. So right are moving has actually going

of Brian comes Oppenheimer. Our from with next question Schwartz line the

have then verticals, I fiscal can building there's and pipeline Steve. relates if the Steve. for accounting, legal, maybe financial John anything a the the for there? follow-up bookings then And services it and a for services, got question and momentum, core it professional XQ John, to maybe a highlight I as your to across follow-up you unpack

of activity good markets across in saw we QX. So all our

shared Steve, markets. in expansion new between markets client been balanced services balanced financial that think, and as the both well I as professional the and we've pretty you've business pretty also logo acquisition well

And... Yes.

] [ That QX. in did we certainly

biggest We've say the to It's out. but the services. legal fair break is But those break tend balanced. pretty yes, professional that to tended of certainly out, to not that, but don't we

the then the feeling introductory is out the it end sounds and in markets to It's And question driving sure his you, cloud commentary like your Steve. from your adoption. for quarter. improving first thinking since in John comment, guidance for and computing Q&A philosophy good are Listening about the really there. just the sentiment about People follow-up it's

at And suggest -- my but if I it look sentiment not kind that that, of guidance, the least that eyes, maybe from sustain. might does initial

that, in So quarters. of kind a buying couple settlement forecast. continues? ask your about you wanted to that of improvement Or thinking improvement, assuming you the you we've Are just are hey, question I a good had about,

raising think Let's of up deals, all them happens. after get numbers them sign then about the it for and in contract, we'll us

So up when just you setting that think you guidance. wondering about how your about think

say will are growing and continuing, would seeing it's Well, Cloud continue. nicely. very and I that, is we momentum, believe strong good, look, we it

total Our time, ARR revenue nicely. certainly growth well ARR over think growth growing reasonably that will align is And we those with our rates.

here. going feel So like keep rolling long-term to firing a we've we're and of no, good lot we're I here, got on a and cylinders, opportunity

out of first the So this moment is our box.

right thing, it forward So but here. we're we sure we about pretty making do feel good going the

Congratulations a great on quarter.

Thanks.

of Tom the with Our line comes next Stifel. Roderick from question

all the on recent Congratulations successes.

that's think to and you just going happening generally there, mean, point, there, probably awakening, important are and looking in that time. on is maybe this Brian's finances speaking, build on great one at a hand, talked the on end fire. I thing last the question And I think but there all about real they're, fundamentals an is markets, it's are John, I your

of to in about final some make hard you're shifts. markets them the seen over of get What's to of your end some love are legacy of these getting on would you're of that senior just that with discussions love through. And how the to it's to cloud; the what to that came that them these catalyst perhaps catalyst to that's for know hump transformational time, that. as other home-build your is solutions of from perhaps fire that to to X-figure make what gets make that COVID to some Would a proper was they some a having attention We've level deals that the that strategic b, hearing a, maybe some they've and conversations larger that long upgrade the sustainable But customers, hear from some part hear needed is? move?

economy. how and the a that And it's you Yes, insight, deal that's going now. definitely than are we're all right as well serving anyone, better firms serving great know

having. that and firms' for with in success to of do for lot have when Firms having a ways aspects tight. great modernize of this foundation harder of next time conversations the a they're the times themselves that are looking A using put do to position It's information lot on capitalize the and to firm. the laying we're are years interest to wrong the

to a in the the in going the possible taken the of collective about and/or know make the that, the out information, competitive, but that systems help of we've a more go full for most firm Your best insight really potential put are the that point market get moment attention is and at people assembled span, what they've there's with assembled be of in armed knowledge to found deals professionals, appetite well armed they they want the the platform actually globally. of compete to is to the winning lot in to difference that with help makers, the possible deal their marketplace. their can And people

So more of IT actually a on time I leaders fair the switch, with to enabling too, going wherever conversation real is little about has bit that creating our make in us there's less bit the the strategic cities the encouraging to technologically the and environment we estate of and think strategy now be. and firms shift. happen is the a COVID these And caused leaders people about maybe to big the say,

of the expense a little more one in a from And biggest a bit about which IT was towards so only which always traditional there's budgets to bit our shifting the accrues firms, estate, conversation benefit. little professional definitely items real these

think So there's positive I signs.

on everybody this intelligence. beg for call Excellent. would I'm automation more certain and efficiency,

it's right the time. place So the at right

addition being head curve are need to or accelerate need add approach in out is linear up demand there, with is think want feel of of the the you do you Steve, other the Or fairly to the Or bulking right aligned new marketing? relative proper sales been far you the force? question how like you to in guess In you do words, proper is ahead the terms heads? sales I to aggressive approach properly looking that you've just do do you the a and at you sales now? be How count investment to demand seeing? it follow-up for on

ramp is think aggressive, ready because but for extremely and And ready up ahead client we people pretty want take I well and trained are them in the drive we most aligned. the it see. base not and to it the the time Well, hiring to them be there opportunities the all going curve does we're opportunities be we productive to certainly with get of get I out mean to way.

is who that to field So go to want ahead hits sure yes, to we're we to continuing sure make forward mindful that, we're to everyone invest and we're but of sell. ready the make ready

Excellent. Congratulations.

question Piper. comes from Arvind of with final Ramnani the Our line

sort of of to the of you one go back being post-IPO about world. questions sort the addressed to wanted I earlier

looking some up? of basically going you step seen the out, bit color of kind on conversations. side? a you more a of part of the have in then little kind take existing Or customer talent, some kind kind essentially charged people And I'm kind of kind kind provided are to back? second about You kind of I'm and recruiting cashing at of the recruitment this what of saying workforce? the talk people progress retire, the mood just Can the of -- on exit of of Are terms

great. It's Arvind. Thanks,

We think closely a time. things as that strategy. team to even it think from the raised industry that's needed building a who is of anything that's in benefit company transform the integrated Valley, runs professionals over marketplace. today that the purpose-built We've company slowly what unlike really infectiousness them it of financing vision marketplace. culture the there's these years. lot and that I an never is and figure and capital, cloud from, acquisitions carefully platform bootstrap Silicon this, We've been and long assembled by there's a driving else think today. working We doing great for team companies we And building the to built different this And is to little single the of towards unusual I winner being going dime we've X that. that that I of as in build built a whole a And come a one to organization. and we out they with that for did through group industry So a spirit a together this the commitment venture a for a in to firms

culture also we bootstrap Certainly, the have like company IPO who's very that's everybody unusual I this forward. we incredible, here business is thank successful. but I'm helped to that build to the going an you should, say to drive glad as we're able feel

that. about optimistic I'm So

recruiting organization some second recently the that benefit are the business we've your lot opportunity folks company organization. who time, for the the the now an have seen clients company us here actually are for incredible actually build has of have the just are has the and all talent. incredible that, joined IPO of public, the -- the gone been and joining a use to public the And saying to standing company A with presents great a And and pre-IPO we're incredible question. company who long who after to --

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Perfect.

that. a just on quick So follow-up

are some kind of of think talent of bigger, with you're and that larger brand expensive, it's with and some talked the secret them it's and really the the doing hiring that of now kind the kind And higher of locked of data technologies. even difficult, -- work are lot name, with of kind you said, science -- I But software of some You stock about is companies. course, AI of and AI up you're of profile of no all newer and better that. have a kind a that and

lot of are to science this offering data recruit to talent AI around afford the kind the are automation? sharpen really more AI, kind that a and So of can of able you able and you

I'm AI assembled. team we've very proud the that of

particularly organization the has think it, angle and team of We specifically while years. on have And got AI a which quite over been this that has now, AI applied for is of differentiated AI, value some incredible talent purpose-built how do working at looking we I with that industries. recruited real the the we're talent needs the more into a that bring into potential we've set for the specific company

we've of of are combination this developing very groups there's knowledge for this the that So our a really set applied for in professional that and And industries, these made difference making platform and broad and AI solutions up that firms interesting always sell financial clients industry-specific technology generally. are incredible of these information industry. our services place, and are it's large AI talent engagements, and and that so an been for advice highly first by because and yet rich their AI be the knowledge underserved who and they've deals knowledge market felt the professionals other their is applied to data in educated of expertise this on

central have is the is also of this overall that all put can It's one the in. It's our this strategy. an a differentiating. AI So the market, -- such for for it reasons firms now, it's return is why of but incredible simple time it component

you some lot are out And your most that high-value to and us really there. at this a looking looking AI incredible the applications the who an of can love at opportunity and work, here, of potential you folks see imagine apply so is the you if skills to place really

as going forward. really our at I centerpiece So a story look of AI

been of me. Terrific. last kind Or the on progressively question the COVID-related pipeline? the or just with forward still kind these through of good concerns a for existing demand year. all seems has variant there Delta demand of you of pretty is with Certainly, as kind that look with has just improved and of are distraction ahead? And that and has your environment But people of moving that, clients -- some and

and that Well, we pretty I were it it's think be we went and to the the And and and the significant in knew our discovered and back more this going this everybody later to serve looking was. through in actually March operation. model world go previously, summer going a work office particularly environment. we we market, the autumn, benefit lot a had own time flexible all the at last in way transformation way We a XXXX. of in the were never that we to more February that work-from-home there from And was was whole both did markets true productivity people

have to, There think has up we've what Delta to I for opportunity like out plays the has it are some continued that doing So folks slowed haven't required need model. how and in the in things I down, practice, but could think It, have execute everybody we in happened from everybody. they does. folks if else is work-from-home plans tragically that, just And but theory, we for who see we'll fact teams an is to and shaking in arrived offices our just work it. is

perfectly think market we because in hybrid. an a home productivity end and execution our I we standpoint, and from But from both total work work and benefit both fine

tragic really of that doing we're and linings And found that in well, it. one a couple that is working this of we a well so I the actually is silver of a think years model works

showing remarks. over no John back the turn now closing I in the further I'm questions to to queue. call for like would

everybody. We your appreciate support attention really for us. and Okay,

happy and we can to us, folks behind your time there's look today, If about a to as great to do excited anything that. a quarter. Thanks ahead. do talking year talk and we're for forward we that next have QX you follow-up, we're to We to

and Ladies your today's you participation. this Thank for conference concludes gentlemen, call.

may You now disconnect.