Intapp (INTA) 8 Nov 222023 Q1 Earnings call transcript

Good day, and thank you for standing by. Welcome to Intapp's Fiscal First Quarter 2023 Webcast. At this time all participants are in a listen-only. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advise that today's conference is being recorded. to Trone, conference Relations. Senior like speaker to now David today, Vice would hand over the your I President, Investor go ahead. Please

results. Thank quarter Intapp's to financial you. fiscal Welcome XXXX first

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

results by any are we During we financial to the second guidance including hand discuss of in to conversation to furnished statements on assumptions metrics we Intapp in GAAP views made These provided reconciliation described be earnings such expressed our the John. SEC prior today's call, non-GAAP disclaims an those fiscal date certain will conference can and or except statements. understanding to could the available of law. the on With this aid that entail with to subject and results. current may SEC obligation to by that metrics A which I'll actual regarding release, various full-year statements, statements forward-looking our over required the call. is forward-looking business, forward-looking our course certain any found forward-looking of Further, and implied that, revise as as believe other on and comparable also and differ X-K website strategies today's exhibit or Form those this our today's our including materially update as to to of difficult quarter and documents and XXXX. trends, available and are the uncertainties, from are call, management's publicly make filings based risks anticipated predict performance for expectations, in cause

demand first cloud of growth everyone. we Thank strong with platform. I'm for market quarter digital ended the David. strong fiscal our pleased adoption transformation. our to in Good showed saw us. as continuing results, ongoing share for target And that we our Thanks joining afternoon you

For and cloud our with story, Intapp ERP from those professional built with industry that who platform highly and provides firms differentiated services systems. purpose CRM financial is aren't familiar a traditional

business specialized of solutions specifically market. brand, represents well-positioned TAM and Our designed of deep product trusted With advisory the transformation this firms underserved and billion. strategy, established to which our models needs, Intapp global and industry, for understanding for global largely cloud these lead the a of $XX is dealmaking are unique

our year-over-year. our ARR QX Our $XXX In million. first to million, XX% ARR is up which total XX% cloud of $XXX grew our results continue our Cloud to validate strategy. of XX% represents quarter, now

We year-over-year. total are XXXX premier in we SaaS and XX% million, and up firms support target million, And up $XX.X of verticals. XX% serving quarter more revenue the of our ended $XX.X than across revenue year-over-year,

Okay.

our Turning to innovation in products.

cloud enhancement and to previous you specific the continuous us reflective meet are results of have our firms. Our In of needs the of emphasize capabilities quarters, industry applied expansion AI. our our heard target

industries use quarter to additional have challenges the serve. its expanded to specific This we compliance we solve

of burden for terms compliance that the agreements spreadsheet, process feature tracking via a available to a risk broad prone of clients entering manually Our and new set eliminates errors. and vendor vendor is

terms. recall, AI and clients applied great automated and mitigation of ingest support than leveraging categorize risk proactive the also form half, in data tasks, AI adding in As you by the enhanced client more value It's scan, but only now documents case, time this use manual not will we eliminating experience. reducing to and import approach, to for example and vendor an applied a of

and support to our us better their the clearing XX%, deliver by solution In them fact, clients they overall time to had of that process, the risk we intake world spent by law faster, with recently client allowing using client largest cut conflicts in a one firms the service. onboard share new

continue partnership. strategic also our capabilities to Microsoft We our with aligned expand

the collaboration purpose Intapp example, and an documents workflows with are our the built clients solution, and target securely new we value firms derive of rely verticals. With of build enables Teams, enhancement our provide which on their share professionals needs on we this value tools clients Microsoft each the the they every from both to cloud, released industry our client who while collaboration, quarter compliance day. supporting their we unique As via Microsoft

approach Our paying off. is

their choice new collaboration firms system system Microsoft meet which cloud, law content tailors approach in ensuring existing our By management accomplished the migrate digital law with and value data needs the premises This of our by firm enhanced solution, unique of industry of Teams legacy solutions maximizing key as and their cloud. the collaboration objectives investment. implementing quarter, integrating the Intapp one to and firm. larger strategy, the SharePoint several document secure in the Microsoft their uses the Their Microsoft of its from to Ireland and offering, the document top made collaboration to on and functions transformation the Intapp repository

Okay.

DealCloud notable the to about and new expanded talk past of replaced largest management their with global footprint. with logo the accounts, pipeline and existing They last specific the business of upsell banks a a Intapp that we new CRM added In CRM for cross-sell the to few asset is client we via world. one investment traction align arm and gains markets turn our One the wins. grew needs. our logos, platform, quarter, management horizontal and of deal capabilities welcome Let's with in new quarter

the the professionals returns. this We client their in firm's improve are of experience growing work to and aid with excited closely to

and deals future more upsell ability opportunities. cross-sell making our institution, the this an we example expect excellent large foundation upsell laying we of our large to it deliver for and win grow while subscription to important As value, with today,

an another often we this overlooked software quarter our been They firms. of growth one consulting in proud our acceptance. to that streamline has by part and gives deeply the of new providers. They of complex offerings the new platform the and This consulting strategy As during logo essential of practice, our industry, expand of solutions this is chose one integration us more our configurability consultative is expertise great confidence industry strategy meet complex clearing business approach traditional I'm IPO, our that which for shared industry. M&A top specialized proven ease pillars to needs Intapp win their our with share process chose the compliance in of to

example, in lacks cross-sell firm, helping several financial of group, through expand a required advisory execute teams to across and our advisory DealCloud a large is management for key manage continue which net upsell large initially in initial so numbers XXXX, financial functionality. also driver users. implemented a this pipeline their strong in replacement leading upsell the the existing accounts, that One another CRM, entire deals quarter and proved revenue and is across firm global advisory retention. relationships management which XXXXs as asset deployment to of deal of expanded which the licenses which The DealCloud valuable We

modernize uncovering Earlier firm to in example of expanded embarked a commercial sell their on initiative the Intapp to client of the firm. better opportunities enhance strategic year, legacy law critical the better relationship a growth and CRM. in to by cross and solutions across our foster gap and cloud longtime Turning in use whitespace their support firm offerings chose They the QX. this management purpose-built client to legal our capabilities Global and in collaboration exposed cross-selling an price so, one-to-one doing strategies, growth to industry. the

one in to we base grow, and they've we managing flexibility in shared been region join workflows. funds. continue have and impressed client by us invest to in the custom where and of Pan-Asian Asia that Pacific, for who with They notably international relationship dedicated the our our their business. growing number with DealCloud of Last firms private solution, ability quarter, be our largest to continues building our Finally, director the processes tailored their equity expanded selected DealCloud's

put see drive to technology they helping it, investment As we the strategy. our is

we to industries data We a relationship than industry, enhances professional by is partnership several our to continue services with information In and decision the to signed X.X partner capabilities industry last third a new and with which to quarter. the solutions. million experiential generating to that the Turning used connected executives data, expand access by our letting coupled growth. market own of fuel data to directly across members more clients Equilar's our Intapp party possible best making financial intelligence sources client's and ecosystem Equilar, cloud database embedded board adding is access within new key partnerships,

using applied a are now for is to-date new and our to competitive of clients ensures advantage data, stays across driving automatically business, Embedding it providing users dynamic networks, our our We updated environment. expanding leadership helping discover a the in corporate data professional value executive Equilar reach the real business and them even up giving AI clients. more our platform,

we've talking been quarters to few focus about real past also the you needs serving unique investors. on the estate of Over our

XXXX, information, continue of of data assets market Providing we as and investments alongside creates we're we better which on intelligence builds level vastly investors, ownership, start excellent properties. initiative, for the the improves such estate bring holistic real quarter, decision and to tax prospective the contextual this a to information leading estate and and As making strong zoning deal management real with cherry our our mortgage conclusion, to estate performance property year. fiscal data DealCloud. partnered capabilities disposition target fiscal and prior current this and proud and advance its real of identification of for asset momentum acquisition directly to view building of into In

to the predictable, remarkably purpose-built to continued is to our see broad with a platform We highly we Our client demand serve end new base. model within a cloud our and existing both large add clients, revenue TAM. market and industry serve opportunity expand durable

a opportunity. significant As we have result, growth

across we We industries way and all are in leading modernization the adoption the cloud serve.

to like board whose teamwork start strong and much. kicked investors, and I'd all the Thank you thank a employees year. have dedication such to very fiscal clients, our partners, off Finally, our

you. to Steve, Okay, over

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

strong with total ARR up up and noted, had XX% we John a year-over-year, As cloud ARR quarter our our year-over-year. XX%

the SaaS at the revenue, and is vary recognized it is as subscription timing two is through like recognition. and or time line. license and predictable based following to in I recognized included SaaS financials, a revenue revenue ratably, revenue a ARR new upfront ratably ARR subscription recognition Because of revenue model sale in is XX% go revenue financial revenue quickly support recognized few revenue, our recognized support of parts. quarter-to-quarter, can ratably XX% while or I'd SaaS the support as On-premises review sale as Before in reminder. recognized as on of license and renewal, our renewal. just Cloud a more our fundamentals

SaaS $XX.X license of follows. new strong as consistent ARR as clients, new several our solutions. into $XX.X solid compared renewals clients, XXX million, the was expand support Intapp's compared XXX million, implementations purpose-built year year year-over-year, revenue. period. was a quarter year-over-year, up model the period we and revenue quarter in terms. the was moving clients million revenue Okay, numbers. reflecting resumption to to Intapp growth continue clients $XX.X to and prior reflecting another our to prior more QX execute prior Total year XX% of existing by million software our land year $X.X sales, XX% cloud sales growth X,XXX up well period, cross-sells contract million and of had $XX.X in by more and sales. primarily cloud multi with ending in both as primarily than continued up revenue strong $XXX,XXX, solutions, new a which was for from the in of million, driven Professional services reflecting professional as in was revenue Subscription Overall, in $XX.X than upsells of services after our with period, annual

and cross was quarter range our XX clients sold net of for that fifth a revenue such upsold existing in our month we above rate XXX% retention our addition, XXX% row. expected the In trailing to

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

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

expenses quarter year a realignment First our team margin of million, non-GAAP to were and and XX.X% marketing. function the from reflecting primarily gross $X.X and non-GAAP some R&D increase results operating mentioned of expense public of primarily was as income success as XXXX in million, million a was as operating $X.X to in continue first now from business. quarter an Total of as prior related compared sales gross we million, was of the of margin a reflecting in as support company development markets, $X.X and we sales loss in $XX.X increase $XX.X operating increased our of million Non-GAAP services million initial the marketing quarter. million increase portion operating G&A with first sales we our our of profit which to period, and organizational $XX.X client get roadmap. cost a in profitability and along Non-GAAP compared on year-over-year, our our $XX.X to $X.X begin organizational expense made compared was net follows. for XXXX $X.XX the Non-GAAP increase XX.X% new invest realignment. Non-GAAP growing was to fiscal the year-over-year year-over-year per Non the growth. to was $X.X million, marketing first headcount previously expense Non-GAAP XXXX GAAP the commissions year-over-year comparisons, to fiscal in our leverage sales, both reflected reflecting a increase increase million sales investments capture a business $XX.X product and loss as fiscal basis. year-over-year a $X.XX headcount quarter profitability quarter as share to as are product in million, were

quarter balance the cash the first primarily of with fiscal equivalents, we to contingent $XX.X as to Turning Repstor consideration quarter end of the cash payments. first the compared of sheet, million decrease the ended last a $XX.X XXXX, million and reflecting in

turning Now guidance. to

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

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

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

With operating also non-GAAP share And profit. the to million XXXX range a We the expect FY loss million of forward range share of in our XXXX shares to look using $X.XX weighted $X.XX fiscal and for $X questions. in outstanding. that approximately per be a million $X taking results common to count non-GAAP loss of XX basic a to John a year net your I

of line Our Ikeda first from comes of question a Instructions] [Operator Koji from Bank America.

now open. Your line is

very raise you for guiding mean, kind thanks income. forecast? you guys, Hey, Yes. Very, to the the question markets year in here there end the I a revenue, quarter. raise mean, the giving wanted giving taking ability operating raise on you SaaS, ask to you the guidance. guys of raise questions. nice the what's I out I that's are your to confidence the the you full guys the

And our business. continues just the we previously them to Koji not as Well, are watching good is this I business be think something look, said, is where business. seeing in signs, we're in we And we're this but feel recession good. we've like telltale we think

it. pretty comfortable with So we're

Steve. million the income just you $X guys to it. And at operating here then, in Thanks, million negative And positive fiscal to a looking guiding guidance. are $X XXXX. Got

out it we're that positive, sustainable kind and So point positive that ebb anything future? trying does, Or of cusp once flows any here. from feels income could presumably the that operating an of call for it you And it positive an become the to between on like there? think cause inflection foreseeable is and through negative just

Yes.

under And the public as sort And year as back we will we're think better operating the as the our think front we feet half company, better see of get than business stronger the initial a some I certainly half. to from starting of leverage be we go grow. I we're Now, from and there.

So that, feeling we're Koji. reasonably good about

it. Thanks, taking for questions. guys. Thanks my Got

of Kevin Suisse. Our next with question comes from line a Credit McVeigh

line now Your is open.

quarters some outcome for for Great, much. is really bump puts you tremendous add now. to thanks it five leaving just revenue possible because congratulations let maybe the of my Or point well. room listen, kind is range And that retention obviously, yourself so as and do me you net there? what At Hey, really, just consecutive think up? takes it beat

We, that. And wanted be sure make yes, fair with this to Kevin. a our to to cross-sell That's stick we while to decided going. and upsell so. trend the we just our Yes. are question, But talk a and we've about range. it's lines continues did is how see clearly, But for strong motions

can pretty do a us. there. perhaps business I going little the different So we forward, But think for remains part duly that solid something of noted,

as partnerships, and of a versus obviously Is your -- just these it's just is the and if the what's we'll more of of kind that XXXX at read partnerships effect XXXX, the the kind more just in helped drive that larger again, you've And see larger, great the in that, Or are that historically. I that because clients clients? are been some entering, driving of like XX% that through percentage still of It's is look spoiling outcome. more these initial XX% that guess, you then, in you of they of question? phases

Kevin. Thanks, Yes.

some early. partnerships hand, are So, just one two quarter on announced and Microsoft the ago. still the with KPMG We

there's the take by an we've But results, those full been to people pleased opportunity So the develop. at to some of larger lot had deals some larger engagement of platform of have deals advantage on services when very where we ability impact think for our larger early they to a institutions. a have win help

is how quite go. to going optimistic this So, we're about

Great. Congrats again.

a Stifel. of from Lane comes with question next Parker Our line

line now open. is Your

questions. my taking Matthew is quarter, thanks Parker. the Congratulations This Kikkert for for and Hi. on

quarter? new the in market role to take estate real gain you vertical First, in real traction with that past it estate with How similar vertical. how has long position in a the progressed Cherre, of over other now might the the verticals? have as And DealCloud, recent partnership and

Matthew. Thanks,

estate So for an us. DealCloud is vertical one real important doing well. And is the

on group we we inside market their by group. our previous had estate us clients, multi equity our could organization call, into private for originally also used their us clients a mentioned that real who strategy and we support As investing were led asked if the

estate that to set them to another and to Because partnership, But example as advisory out real be firms we've about. wins that, the specific all the to built estate area, the had party class. and serve both investment the opportunities real question quarter. this to firms about very the excited some strategy surround going to platform real multiple and better to investment businesses excited third in they're SAM whole in extend TAM real investing the expand the and purpose-specific the will make on how Cherre strategy very good the capabilities advisors. we better asset real your who of done, and investors support our decisions able initially specific work estate the we're into in bringing the multi estate that we're of in data We've able a investors at. in firms looking that our help it's So, We're it's and DealCloud estate folks

estate. picking in the about several up of quite excited years just been in started real that now. We're we've pace markets But we're the some getting there. So, for we're other

going continue on we're to So it. to work

a our I part think of to story. it's continuous going be

macro or all customers about the that to the secondly, hearing then timing saying have over past may landscape change quarter, really that anything you're heard you been economic to at their migration And not in on-premise talking past hear. to all? at good we That's Okay. them the when of cause them

our effect we to our all an potential seen discussed clients. not on from do the business generally. talk Obviously, We of recession have

on are move larger And on-premises us the seen cloud the larger our excited of a looking number become clients market not to effect on about who our that we're with their have We platform first. cloud, on the both orientation the taking the working generally and our of has much migration very in to on-premises are plan. cloud clients fact and

you much. Got it. Thank very

James. question next Our Sklar line Raymond of Alex a with comes from

open. now is line Your

sales a a you macro I Great. ask think in start marketing you've to Thanks level last that know investments order how on of curious Steve, to year. the of sales of this Obviously, how I you you're and do kind maintain broadly? ramping is the done about the wild card, at want of but lot thinking kind capacity, of year growth? about

in investing pretty some quota, are and At marketing. opportunity. we Well, we're time get investments and seeing the forward still and seasoning sales from productive, good they some getting we're but the same making more been be that some can we've new time sales leverage a -- folks

efforts evolving we're in not will, ahead stay we're we in So, the and marketing the the on market to us and here. of as people the if support related -- of continuing see putting curve, field, capture front you it to

moment. So we're the at that's what doing

Okay, NRR pipeline of great. or growth opportunities really range. the focus all base, your kind been And the logo of John, you've the terms consistent macro above you pivoting just tracking logo new Thanks. the given back The had of IPO into of then at there? since in timing. that just kind Is installed

ARR Thanks, back a solid we to a we're We And console a general winning of tend in larger there. number IPO, those with larger is we base tend with with just firms. they these of into. don't to that opportunity that Alex. each our XXX full installed mentioned logos make, trend part that a expand there's we The a new land have become clients, deployment, quarter. strategy $X then And and a top everything billion bought land if we the as

have also by quite great a been alternatives us there sell vast it's generally about years. the because We're our new into can market big us a logos, way. in existing out into. a company to we that for the excited over winning of growth But the it's that's the space grow So underserved clients, and opportunity sell for to we

it's So, mix a of both.

Okay, great. Thank you.

up line Truist. Terry Tillman next from question comes a with Our

Your line is open. now

my to Passarella you. for Hello questions. want quickly. taking This on just start Terry. for Thanks I Thank Connor everyone. is Great.

AI functionalities. about the You importance of talked

intelligence and up. you how curious relationship a clients been And launch serve? had has capability, different resonating been the amongst tracks since of follow that that's the how the the I Just then

didn't specifically the Connor. few the of There's case clients make whole And best that possible lot is of started client. days. that's it can the We've a quarter feedback that few organization's helping think the leading system so the capability. basis very applied last it's It's times the still the quarters. Thanks, AI, from intelligence a firm lot quarters, they and wins in knowledge serve relationship firms a understand advisors early about case and collective of intelligence with talking the have it helping the are deploying out deal and the the land all market, we this about investors and the their in possible in remarks. a We're arm, win mention We've knowledge over for in go-to-market so who each getting really all positive or new of We to in partners capabilities. relationship who that of We're not prepared it. the about it's the relationship talked from work just base, lot folks We an on helping make the doing full to intelligence the individual few organization, past that. the win relationships to business, the in going business to the well. new and individual, of deal, try that them it's win come have when that as they're power but firm all best of the the

think we But exciting a room of it's an to run. of So, offering there's component today. lot our

one color. maybe just the for then, And Thanks Perfect. more.

with acquisitions just made on you performing. acquisitions revenue Thank Repstor, sense that boost we few a helpful? year, the to how maybe anything give curious, Appreciate And be last tie maybe if a well, have there's really if I'm as can us it, would So to can technology you. guys. important Billstream. capability you been those

Thank you.

and in before year just the brought May a about So on half we IPO ago, XXXX. June Repstor of and a

with in large moving been documents to lot has clients integrated for mentioned firm technology. had It's market platform firm based and Ireland because a who collaboration expansion between lot well the one There's we're they that. we content relationship. the the longer. the into on in Microsoft have for deployments we've We've those integrated I the a successfully. to capabilities. success So, that still and one the and the new the of of a We've And our in the brought prepared team, a of clients sales today. and that names with remarks firm new go help to addition manage as solution our very adopted as that partnership, actually of through close

close the environment to relationship really XXX have a of We Intapp teams technology Office their firms make system. with and our help most

in work and the go continue rest signs program but with good some and clients, through brought wins We're the Billstream, we've some had some So this we're success it's opportunities new quite enthusiastic of about On to us. we've days. on. that year, as how that's going integration fiscal and that early going what good those the that we are of of to folks in on as front earlier, good

Great, you. thank

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

is Your line now open.

are John, what in activity excellent front? logo Yes, the leads through But, hi. afternoon. doing the taking you're my install follow monetization you're us this just funnel saying front. an of can on top deal logo flowing and Clearly, wanted new you're in for the generation Thanks to up lead questions cycles saying terms on in new the what share as on increasing the with base. of maybe of more the job, you

have this Brian. asked you topic, This question. an interesting Thanks, all is

We're we've lengthening of through a sales. we watching funnel also this, in gone we've not As been seeing carefully, uptake. seeing are improvement

that just successful Asia of really campaigns our is And I are in a markets, new lot is starting competitive become Pacific travel that we're word they to mouth breed clients how competitive our and of a markets. become them time been the through A in think lot online of clients, program, as more our firms and markets, successful more it use lot progress traditional winning, success well, but marketing it's can to in doing company And these for from more not geographic some I been the at of benefiting, response the to is recent is I themselves. think partner great word more more looking online lot at we've Europe. of good that [ph] We've just in because a to our there. a doing. carefully they're the this platform brand think of mouth looking

moderate well. continue carefully, going So to going far, obviously, but it's we're to so

John. the up new is the then had to of the or And targets Thanks. Steve was any headwinds today? and revenue Thanks, some maybe just impact you to quick that there initiated with If follow guidance, understand the trying results. currency for I

Yes, we bit and of XX% have our there's businesses a certainly little International.

of or dollar denominated. the a XX% about Although, third is kind that of XX

that XX% really of about it's And as the kind we talk foreign of roll exchange. renews. of So impacts sell course, and steadily through we

QX in. they're, they're modest the sort So baked And for of year. modest and really impacts for

swings have we possible our We seem that there work consider and modeling forecasts own done to or reasonable.

that factored having guiding, we're so, in. And

Thank you.

call for the answer to and question to John Hall back session. closing turn I'd today's concludes remarks. That like

next and time some working We'll spending for call. all with time us. to for our we'll look forward you appreciate your We talk company with all you the Thank Okay. to and at Thanks your looking soon. us.

Thank participating. call. you conference for today's concludes This

You may disconnect. now