Intapp(US:INTA)2023-05-09 02:44Financial Data and Key Metrics Changes - Cloud ARR increased by 40% year-over-year, reaching $206 million, while total ARR grew by 24% to $316 million [29][46] - SaaS and support revenue was $66 million, up 33% year-over-year, and total revenue reached $92 million, up 32% year-over-year [60][46] - Non-GAAP operating profit was $2.9 million compared to a loss of $2.2 million in the same quarter last year, with non-GAAP net income per share at $0.03 versus a loss of $0.04 [34][29] Business Line Data and Key Metrics Changes - Subscription license revenue rose to $13.6 million from $10.9 million in the prior year, driven by CPI-based price increases and multiyear contract renewals [31] - Professional services revenue increased to $12.4 million from $9 million in the prior year, reflecting a higher growth rate in software implementations [31] - The company ended the quarter with over 2,250 clients, with 572 clients having ARR of at least $100,000, up from 484 in the prior year [61] Market Data and Key Metrics Changes - The company serves a $3 trillion industry, targeting private capital, investment banking, legal, accounting, and consulting firms [44] - The company reported a 12-month trailing net revenue retention rate of 113% to 117% [61] - The integration of DealCloud into various sectors, including legal and accounting, is expanding, indicating a shift in market demand [91] Company Strategy and Development Direction - The company is focused on cloud transformation in the legal and advisory industry, emphasizing the unique operating and compliance needs of its clients [14][27] - The partnership with Microsoft is being leveraged to enhance product offerings and market reach, particularly in applied AI and compliance solutions [21][53] - The acquisition of Paragon Data Labs aims to enhance compliance capabilities, addressing personal trading and political donations [22][54] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resilience of their target markets, noting stability in law firms and accounting firms despite economic uncertainties [37][88] - The company plans to provide guidance for fiscal 2024 in future calls, focusing on ARR growth as a key indicator of long-term revenue potential [38][29] - Management highlighted the importance of cloud transition for client success and the potential for increased sales velocity [108][109] Other Important Information - The company received industry awards for DealCloud, recognizing its leadership in commercial real estate technology and private equity workflow management [26] - Non-GAAP gross margin improved to 71.7% from 57.3% in the prior year, reflecting better service margins and organizational realignment [62] Q&A Session Summary Question: How is the company observing the impact of the current economic environment on sales cycles? - Management noted that they have not seen any negative effects on sales cycles, with private capital firms remaining stable and supportive [37] Question: Is there guidance for fiscal 2024? - Management indicated that they will provide guidance in future calls, emphasizing that total ARR growth is a good indicator of long-term revenue [38] Question: What percentage of DealCloud is within existing clients? - Management confirmed that they are steadily expanding DealCloud's footprint and have seen increased requests from professional services firms [91] Question: How is the company leveraging its relationship with Microsoft? - Management highlighted the potential for AI innovations and the integration of Microsoft technologies to enhance their platform [72] Question: What is the outlook for new client acquisitions and upselling existing clients? - Management expects to maintain a steady addition of new logos while also focusing on upselling to existing clients, supported by strong pipelines [103]