Over the past 3 months, Intapp, Inc. (INTA) was down nearly 10%, underperforming the overall market by approximately the same percentage. The market was quite flat at the end of the observed period.
This stock has the potential to reverse the trend, possibly beating the market. Thus, I am bullish on this stock. (See INTA stock charts on TipRanks)
Headquartered in Palo Alto, California, Intapp provides investors and other professionals in the world of finance with cloud-software-based technology solutions that promote easy and fast access to crucial information. This is fundamental to the success of their businesses.
Thanks to these software solutions, the financial services firms manage to connect all their assets. So, all-encompassing information on people, processes and data is at the immediate fingertips of employees.
Clients of Intapp include private capital investors and investment banks, as well as accounting, legal and financial advisory firms. It operates in 40 countries around the world.
Intapp Q4 Earnings Report
The software solutions of Intapp are growing more popular among professionals in the financial services industries. That has pushed total revenues up almost 30% year-over-year to $61.26 million in the final quarter of the fiscal year 2021, which ended last June 30.
Total recurring revenues of $53.86 million increased by nearly 27% year-over-year, with software as a service (SaaS) and support contributing to the total with 73.2% and subscription license adding the remaining 26.80%. Revenue from the sale of professional services came in at near $7.4 million, up 44% from the final quarter of 2020.
Cloud annual recurring revenue (ARR) came in at $109.7 million, which, representing 52% of total ARR, marked a 48% year-over-year jump.
On an adjusted basis, the company reported a net loss of $0.19 for the quarter, as total operating expenses were higher than in the prior year’s quarter. That’s not to mention the expenses connected to the acquisition of Repstor, a provider of software solutions for better and more effective handling of information.
However, Intapp beat analysts’ estimates, which were for an average net loss of $0.35.
Market Perspective
In the highly regulated financial sector, the technological solutions of Intapp allow users to simplify the execution of the higher-margin agreements and acquire new ones more quickly than competitors. That simplification contributes to increasing the volume of their businesses. Logically, this is beneficial to the profitability of the financial professional.
Thus, the demand for Intapp’s products and services is expected to increase throughout the years.
Guidance
Looking ahead to the first quarter of fiscal 2022, the company projected total revenues of $56.5 million to $57.5 million (versus consensus average of $57.01 million) and a lower adjusted net loss per share of $0.06 to $0.08 (versus consensus average of -$0.07).
Looking ahead to the full year of fiscal 2022, Intapp projected total revenues of $241 million to $245 million (versus consensus average of $243.59 million). It projected adjusted net loss per share of $0.29 to $0.33 (versus consensus average of -$0.31).
The company’s guidance, and likely analysts’ estimates on the net loss, take into account the effects of costs that Intapp sustained to complete its public offering on July 2. That was a couple of days after June 30, when the company’s shares were listed on the Nasdaq Global Select Market stock exchange.
Wall Street’s Take
In the past three months, eight Wall Street analysts have issued a 12-month price target for INTA. The average Intapp price target is $43.88, implying 74.13% upside. The analyst rating consensus is a Strong Buy rating, based on eight Buy ratings.
Summary
If the question is whether Intapp will be able to further expand its business, the answer is that there is a high likelihood the company will continue to do so. Its activities are well-positioned in a sector where financial operators need specific technological solutions to maneuver their operations.
Additionally, the financial industry is highly competitive and regulated, but it also offers many opportunities. Intapp is poised to make the most of these opportunities.
Disclosure: At the time of publication, Alberto Abaterusso did not have a position in any of the securities mentioned in this article.
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