Intapp, Inc. Earnings Call Highlights Robust Growth

Intapp, Inc. ((INTA)) has held its Q2 earnings call. Read on for the main highlights of the call.

Intapp, Inc. Earnings Call Highlights: Strong Growth and Strategic Partnerships

The recent earnings call by Intapp, Inc. conveyed a robust positive sentiment, highlighting substantial growth in cloud ARR and SaaS revenue. The company’s strategic partnerships and AI innovations are key drivers behind its client expansion and international growth, although challenges persist in migrating on-premise clients to the cloud and optimizing professional services growth.

Strong Cloud ARR Growth

Intapp reported a significant increase in Cloud ARR, which soared to $331 million, marking a 29% year-over-year growth. This figure now constitutes 76% of the company’s total ARR, indicating a decisive shift towards cloud services.

Impressive SaaS Revenue Increase

The company achieved a notable surge in SaaS revenue, reaching $80 million, a 27% increase from the previous year. This reflects the growing demand for Intapp’s SaaS offerings and the strength of its product portfolio.

Expansion of Strategic Partnerships

Intapp’s partner ecosystem expanded by 20%, now including 137 partners with new collaborations with industry giants like Microsoft and real estate data management platforms. These partnerships are expected to enhance service offerings and market reach.

AI and Cloud Innovations

The introduction of AI-powered features in Intapp Assist and enhanced integration with Microsoft Outlook and Google services demonstrate Intapp’s commitment to innovation and improving client experiences through technology.

Successful Cross-Selling and Client Expansion

Intapp experienced substantial client wins and expansions in sectors such as legal, accounting, and financial services, leading to a 119% cloud net revenue retention rate, showcasing the effectiveness of its cross-selling strategies.

Strong International Revenue Growth

International operations contributed to a third of the total revenue, with a 24% growth year-over-year in Q2, underscoring Intapp’s successful penetration into global markets.

Flat License Revenue

License revenue remained steady at $28 million year-over-year, reflecting the ongoing transition of clients from on-premise solutions to the cloud, a strategic shift for the company.

Professional Services Revenue Growth Slows

Revenue from professional services saw a marginal increase of 4%, totaling $13.2 million, as more activities were outsourced to partners, suggesting a strategic focus on core competencies.

Backend Loaded Deal Closures

A significant portion of deals were finalized in December, indicating potential challenges in deal timing and execution, which the company may need to address moving forward.

Forward-Looking Guidance

For the upcoming fiscal third quarter and full year 2025, Intapp projects SaaS revenue to be between $84 million and $85 million, with total revenue ranging from $128.3 million to $129.3 million. Non-GAAP operating income is anticipated to be between $18.5 million and $19.5 million, and non-GAAP EPS is expected to fall between $0.21 and $0.23. For fiscal 2025, SaaS revenue is forecasted to range from $328.8 million to $332.8 million, maintaining the same growth rate, with total revenue projected between $498.5 million and $502.5 million.

In conclusion, Intapp’s earnings call reflected a strong positive outlook, driven by significant advancements in cloud ARR and SaaS revenue. Strategic partnerships and AI innovations are bolstering client expansion and international growth, although challenges in transitioning clients to the cloud and optimizing service growth remain. Overall, Intapp appears well-positioned for continued growth in the coming quarters.