Intapp, Inc. ((INTA)) has held its Q3 earnings call. Read on for the main highlights of the call.
Intapp, Inc. recently held its earnings call, showcasing a generally positive sentiment driven by strong performance in cloud ARR and SaaS revenue growth. The company highlighted its product innovations, strategic acquisitions, and expansion of its partner ecosystem. Despite facing challenges such as a decline in professional services revenue and lower-than-expected billings, the overall outlook remains robust, with more positives than negatives.
Strong Cloud ARR Growth
Intapp reported a significant increase in Cloud ARR, reaching $352 million, which marks a 28% year-over-year growth and constitutes 77% of the total ARR. This growth underscores the company’s successful transition to cloud-based solutions and its ability to capture market demand.
Impressive SaaS Revenue Increase
The company’s SaaS revenue surged to $85 million, up 28% year-over-year, contributing substantially to the total revenue of $129 million, which itself saw a 17% increase. This highlights Intapp’s strong position in the SaaS market and its capacity to drive revenue growth.
Successful Product Launches and Innovations
Intapp introduced several new products, including the Intapp DealCloud Activator and Intapp Time with AI capabilities. The launch of Intapp Walls for AI and enhancements in Intapp Assist for DealCloud demonstrate the company’s commitment to innovation and meeting client needs.
Strategic Acquisition of TermSheet
The acquisition of TermSheet is a strategic move to bolster Intapp’s offerings in real assets and expand its capabilities to serve new personas within this sector. This acquisition is expected to enhance the company’s competitive edge.
Growth in Partner Ecosystem
Intapp expanded its partner ecosystem by signing eight new partners, bringing the total to over 140. The company also increased partner certifications by 75% year-over-year, indicating a strengthening of its collaborative network.
Strong International Revenue Growth
International revenue grew by 20% year-over-year, accounting for over one-third of the total revenue. This growth highlights Intapp’s successful expansion into global markets and its ability to capture international opportunities.
High Free Cash Flow
The company reported a free cash flow of $35.1 million, representing 27% of total revenue. This strong cash flow position provides Intapp with the flexibility to invest in growth initiatives and strategic opportunities.
Decline in Professional Services Revenue
Professional services revenue saw a 6% decline year-over-year, attributed to strategic outsourcing. While this presents a challenge, it aligns with the company’s broader strategic goals.
Challenges with SaaS Revenue Guidance
Intapp’s guidance for SaaS revenue in the fourth quarter suggests a year-over-year growth of 26% to 27%, slightly below previous expectations. This indicates some challenges in meeting aggressive growth targets.
Lower-than-Expected Billings
Calculated billings were slightly below expectations, due to seasonality and timing of deal closures. This highlights the need for improved forecasting and deal management.
Forward-Looking Guidance
For the fiscal fourth quarter, Intapp anticipates SaaS revenue between $89 million and $90 million, with total revenue ranging from $131.5 million to $132.5 million. The company expects non-GAAP operating income between $20 million and $21 million, and non-GAAP EPS of $0.22 to $0.24. For the full fiscal year 2025, SaaS revenue is forecasted between $330.8 million and $331.8 million, with total revenue expected to be between $500.6 million and $501.6 million. Non-GAAP operating income is projected to be between $74.3 million and $75.3 million, with non-GAAP EPS of $0.88 to $0.90.
In summary, Intapp’s earnings call reflected a strong performance with notable growth in cloud ARR and SaaS revenue. While there are challenges to address, particularly in professional services and billing expectations, the company’s strategic initiatives and forward-looking guidance suggest a positive trajectory. Investors and stakeholders can remain optimistic about Intapp’s future prospects.