- Cloud ARR: $297 million, up 33% year over year.
- Total ARR: $404 million.
- SaaS and Support Revenue: $85 million, up 25% year over year.
- Total Revenue: $114 million, up 21% year over year.
- Accounts with ARR > $1 million: 73 accounts, up 38% year over year.
- Non-GAAP Gross Margin: 76.1% for Q4.
- Non-GAAP Operating Expenses: $73.6 million for Q4.
- Non-GAAP Operating Income: $13.5 million for Q4.
- Non-GAAP Diluted EPS: $0.15 for Q4.
- Free Cash Flow: $26.4 million for Q4.
- Cash and Cash Equivalents: $208.4 million at the end of Q4.
- Total Remaining Performance Obligations: $566.5 million, up 40% year over year.
- Net Revenue Retention Rate: 116%.
- Cloud NRR: 121% for Q4 FY24.
- SaaS Revenue: $70.8 million for Q4, up 31% year over year.
- Subscription License Revenue: $16.1 million for Q4, up 32% year over year.
- Professional Services Revenue: $13.3 million for Q4, down 9% year over year.
- International Revenue: 34% of total revenue for Q4.
- Full Year SaaS and Support Revenue: $316 million, up 25% year over year.
- Full Year SaaS Revenue: $259.3 million, up 32% year over year.
- Full Year Subscription License Revenue: $60.7 million, up 24% year over year.
- Full Year Professional Services Revenue: $53.9 million, up 9% year over year.
- Full Year Non-GAAP Gross Margin: 74.2%.
- Full Year Non-GAAP Operating Expenses: $280.6 million.
- Full Year Non-GAAP Diluted EPS: $0.45.
- Full Year Free Cash Flow: $64.8 million.
- Q1 FY25 SaaS Revenue Guidance: $75.3 million to $76.3 million.
- Q1 FY25 SaaS and Support Revenue Guidance: $89.5 million to $90.5 million.
- Q1 FY25 Total Revenue Guidance: $117.2 million to $118.2 million.
- Q1 FY25 Non-GAAP Operating Income Guidance: $11 million to $12 million.
- Q1 FY25 Non-GAAP EPS Guidance: $0.12 to $0.14.
- FY25 SaaS Revenue Guidance: $326.7 million to $330.7 million.
- FY25 SaaS and Support Revenue Guidance: $380.5 million to $384.5 million.
- FY25 Total Revenue Guidance: $493 million to $497 million.
- FY25 Non-GAAP Operating Income Guidance: $56.5 million to $60.5 million.
- FY25 Non-GAAP EPS Guidance: $0.59 to $0.63.
Release Date: August 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Intapp Inc (INTA, Financial) reported a 33% year-over-year growth in cloud ARR, reaching $297 million.
- The company achieved a 25% year-over-year increase in SaaS and support revenue, totaling $85 million.
- Intapp Inc (INTA) added new logos and expanded its international footprint, contributing to a 21% year-over-year increase in total revenue.
- The company launched new generative AI capabilities tailored to its target markets, enhancing its product portfolio.
- Intapp Inc (INTA) reported a significant increase in profitability and free cash flow, with free cash flow reaching $26.4 million for Q4.
Negative Points
- Professional services revenue decreased by 9% year-over-year, reflecting a strategic shift away from services revenue.
- Despite strong growth, the company faces challenges in migrating clients from on-premise to cloud solutions, which can be a lengthy process.
- The company’s reliance on large enterprise deals, particularly in investment banking, may expose it to market fluctuations.
- Intapp Inc (INTA) has a high concentration of revenue from a small number of large clients, which could pose risks if any major client reduces spending.
- The company’s expansion and acquisition strategy may lead to integration challenges and increased operational complexity.
Q & A Highlights
Q: John, can you explain the dynamic of professional services with larger client sizes and the role of KPMG and Microsoft in this?
A: The business is growing, especially with large firms. Our professional services business is larger but growing at a slower pace intentionally. We are leveraging partners like KPMG and expanding our services ecosystem to meet demand.
Q: Can you provide insights on the revenue associated with your 130 data and tech ecosystem partners?
A: We haven't detailed revenue at the professional service level, but our partners are growing and contributing to our time-to-value and customer satisfaction. This growth is reflected in our long-term strategy and implementation benefits.
Q: What is driving the increase in SaaS revenue share, and where do you see this number longer term?
A: The increase is purposeful. We believe over 90% of our revenue will be SaaS-oriented as we continue to transition on-premise products to the cloud and expand our cloud-native offerings.
Q: Can you elaborate on the total revenue growth expectations for fiscal 2025?
A: We provided a full-year guide for fiscal 2025, including SaaS revenue, SaaS and support revenue, and total revenue. This is consistent with our previous guidance methodology.
Q: How are you thinking about demand for professional services and financial services in fiscal 2025?
A: We had strong results in the second half, particularly in investment banking. There is strong underlying demand for digitalization in these industries, and our vertical-specific solutions are well-positioned to meet this need.
Q: What is the contribution of AI to the fiscal 2025 guidance?
A: We assume minimal contribution from AI in fiscal 2025. While there is significant interest and pipeline generation, the adoption rate is difficult to predict, so we have kept the impact minimal in our guidance.
Q: How are you approaching sales hiring and go-to-market investments for fiscal 2025?
A: We are continuing to invest in growing our sales and marketing capabilities, particularly internationally. We aim to get leverage from our vertical industry cloud and AI go-to-market model as we scale.
Q: Are there any changes in expectations for migration activity or multiyear license deals in fiscal 2025?
A: No significant changes. We have several clients in the process of migrating to the cloud, but the timing is difficult to predict. We aim to provide prudent guidance without overestimating SaaS and support revenue.
Q: How are you driving net ARR and cloud ARR growth in fiscal 2025?
A: We are focusing on upsell and cross-sell opportunities, particularly in large firms. Our enterprise group and R&D investments have positioned us well to expand within our existing client base and acquire new logos.
Q: What is the appropriate pace of adding new partners versus focusing on existing ones?
A: The pace is client-driven. We aim to create meaningful business value with partners and invest in relationships that help us build comprehensive solutions for our clients. We expect consistent growth in our partner ecosystem.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
