Intapp(US:INTA)2022-02-10 03:23Financial Data and Key Metrics Changes - Cloud ARR grew 52% year-over-year to $135.3 million, representing 56% of total ARR of $240 million, which is up 27% year-over-year [8][18] - Total revenue reached $64.7 million, up 30% year-over-year, driven by strong sales of Cloud solutions and growth in professional services revenue [20][21] - SaaS and support revenue was $47 million, up 36% year-over-year, reflecting new sales and upselling to existing clients [20][21] - Professional services revenue increased to $8.4 million from $5.2 million in the prior year period [21] - Non-GAAP operating loss was $0.2 million compared to an operating profit of $2.0 million in the prior year [23] Business Line Data and Key Metrics Changes - Subscription license revenue was $9.3 million, down from $9.8 million in the prior year, reflecting renewals of on-premises licenses [20] - The company ended the quarter with over 2,000 clients, with 467 clients having ARR of more than $100,000, up from 380 in the prior year [21] Market Data and Key Metrics Changes - The company serves clients in over 40 countries, indicating a broad international market presence [8] - The professional and financial services industry generates $3 trillion in fees annually, highlighting the market potential [4] Company Strategy and Development Direction - The company focuses on leading the cloud transformation for professional and financial services firms, leveraging AI-powered software solutions [4][8] - A unique go-to-market model is employed to serve the specific needs of the industry, which is seen as a sustainable competitive advantage [17] - Continued investment in sales, marketing, and product development is planned to support growth and capitalize on market opportunities [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about sustained success and growth opportunities, particularly in the financial services sector [33][70] - The demand environment is expected to be stronger in 2022 compared to 2021, with firms increasingly investing in technology and cloud transformation [69] Other Important Information - The company hosted its annual user conference, which attracted over 1,700 attendees, indicating strong engagement with clients [15][48] - The company is raising its profitability guidance moderately while managing for positive free cash flow [24][25] Q&A Session Summary Question: What are the top end markets contributing to new logo growth? - Most new logos are driven by the financial services business, particularly in private capital markets and investment banking [27] Question: What is driving the net revenue retention above the expected range? - Balanced sales motions across financial services and professional services, with upselling and cross-selling contributing to the retention rate [28] Question: How is the company performing on larger transformational deals post-IPO? - The visibility from being public has helped in winning larger clients and progressing on cloud transformations [63] Question: What correlation exists between market activity and the company's business? - Historical data suggests that firms tend to invest in infrastructure during economic downturns, indicating resilience in demand [66] Question: What are the growth investments focused on? - Investments are primarily directed towards increasing sales capacity and support, with balanced investments in marketing [71]