Intapp(US:INTA)2025-08-12 22:02Financial Data and Key Metrics Changes - In Q4, cloud ARR grew 29% year over year to $383 million, representing 79% of total ARR of $485 million [5][29] - SaaS revenue reached $90 million, up 27% year over year, while total revenue was $135 million, an 18% increase year over year [5][26] - Non-GAAP gross margin improved to 78% from 76.1% a year ago, reflecting operational efficiency [27] - Free cash flow for the quarter was $37.5 million, or 28% of total revenue, with cash and cash equivalents ending at $313.1 million [28][29] Business Line Data and Key Metrics Changes - SaaS revenue for the full year was $331.9 million, up 28% year over year, driven by new client acquisitions and ongoing cloud migrations [30] - License revenue totaled $120 million, up 2% year over year, while professional services revenue was $52.1 million, down 3% year over year [31] - The number of clients with ARR over $1 million increased by 49% year over year to 109 [6][29] Market Data and Key Metrics Changes - The cloud net revenue retention rate was 120%, indicating strong retention and expansion among existing cloud clients [29] - The company ended the fiscal year with over 2,700 total clients, with significant growth in the number of clients in various ARR brackets [29] Company Strategy and Development Direction - The company is optimistic about its applied AI strategy and vertical SaaS platform, which are seen as key growth drivers in a large addressable market [8][21] - Strategic acquisitions and partnerships, particularly with Microsoft and Snowflake, are integral to expanding the product portfolio and enhancing market presence [12][13] - The focus on enterprise sales and the strategic accounts program has led to a 49% growth in million-dollar accounts year over year [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to leverage AI for growth and compliance, which is increasingly important in regulated markets [9][52] - The outlook for fiscal year 2026 includes expectations for SaaS revenue between $411.4 million and $415.4 million, with non-GAAP operating income projected between $96 million and $100 million [33] Other Important Information - The company reported a total remaining performance obligation (RPO) of $719.7 million, up 27% year over year [29] - The partner ecosystem closed FY '25 with 145 active partners, contributing significantly to the company's largest deals [27] Q&A Session Summary Question: Can you elaborate on the 120% net revenue retention rate? - Management noted that low churn and strong execution in upselling and cross-selling contributed to the high retention rate, especially as the company moves further upstream into enterprise accounts [35][36] Question: What is the contribution of the term sheet acquisition to ARR? - The contribution from the term sheet acquisition was described as relatively immaterial, accounting for less than 5% of the incremental ARR in the quarter [82][84] Question: How does the partnership with Snowflake enhance the company's offerings? - The partnership with Snowflake was established to ensure interoperability and meet the demand for integrated solutions among enterprise clients, enhancing the overall value proposition [48][50] Question: What are the expectations for capital allocation and share repurchase? - The board has authorized $150 million in share repurchases, reflecting the company's strong financial performance and commitment to returning value to shareholders [101]