Intapp, Inc. (NASDAQ:INTA) is a leading global provider of AI-powered solutions for professionals at advisory, capital markets, and legal firms. The company's software helps professionals unlock their teams' knowledge, relationships, and operational insights to increase value for their firms. Using the power of Applied AI, Intapp makes firm and market intelligence easy to find, understand, and use.

Financials

Intapp's impressive financial performance in fiscal year 2024 showcases its strong positioning in the market. The company reported annual revenue of $350.9 million, a testament to its ability to drive growth. Despite the challenging macroeconomic environment, Intapp's net income for the year stood at -$69.4 million, reflecting its continued investment in innovation and expansion. The company's annual operating cash flow of $27.5 million and free cash flow of $19.8 million demonstrate its financial discipline and ability to generate cash.

In the latest quarter, Intapp's performance remained robust. The company reported quarterly revenue of $110.6 million, up 20% year-over-year. This growth was driven by a 22% increase in SaaS and support revenue to $80.8 million, as well as a 22% rise in subscription license revenue to $16.5 million. The company's professional services revenue also grew 7% year-over-year to $13.3 million.

Intapp's focus on cloud-based solutions continues to pay dividends, with cloud ARR growing 33% year-over-year to $274.2 million, now representing 72% of the company's total ARR of $382.7 million. This shift towards cloud-based offerings not only enhances the company's recurring revenue stream but also improves its gross margins, which expanded to 75.1% in the latest quarter, up from 71.7% in the prior year period.

International Expansion

The company's international expansion efforts are also bearing fruit, with revenue from international operations accounting for approximately 30% of total revenue in the third quarter. Intapp's ability to cater to the specialized needs of its target markets across geographies underscores its strong competitive positioning.

Recent Developments

Intapp's recent acquisition of delphai, a cutting-edge AI provider, further strengthens its applied AI capabilities. The integration of delphai's AI models and technology stack is expected to enhance Intapp's data foundation and drive the next generation of its AI strategy. This strategic move aligns with the company's focus on becoming the vertical AI leader for the industries it serves.

The company's partnership with Microsoft continues to be a key growth driver, with the launch of Intapp Walls for Copilot, a solution that combines Intapp's industry-specific expertise with Microsoft's technology. This offering helps firms maintain control and visibility over the data that Copilot can access, addressing the critical need for information security and compliance in highly regulated industries.

Customer Base

Intapp's strong performance is also reflected in its expanding customer base, which now includes over 2,450 clients, with 673 having annual recurring revenue of at least $100,000, up from 572 in the previous year. The company's ability to cross-sell and upsell its solutions to existing clients is evidenced by its impressive net revenue retention rate of 115%, which remains within its target range of 113% to 117%.

Outlook

Looking ahead, Intapp's guidance for the fourth quarter of fiscal 2024 and the full fiscal year 2024 suggests continued momentum. The company expects SaaS and support revenue to be between $83.5 million and $84.5 million in the fourth quarter, and between $314.5 million and $315.5 million for the full year. Total revenue is expected to be in the range of $111 million to $112 million for the fourth quarter, and $427 million to $428 million for the fiscal year 2024. Intapp also anticipates non-GAAP operating profit to be between $10.5 million and $11.5 million in the fourth quarter, and $35.5 million to $36.5 million for the full year.

Conclusion

Intapp's strong financial performance, innovative product offerings, and strategic partnerships position the company well to capitalize on the growing demand for vertical AI solutions in the professional services industry. As the company continues to execute its land-and-expand strategy and further enhance its applied AI capabilities, investors can look forward to Intapp's continued growth and leadership in the evolving AI-powered landscape.