Piper Sandler has initiated coverage on Intapp, Inc. (INTA, Financial), assigning the company a Neutral rating along with a price target of $55. Although Intapp's management anticipates significant margin improvements by 2025 and beyond, recent quarters have shown a decline in both overall revenue growth and cloud-based annual recurring revenue. According to analysts, potential drivers for future growth entail substantial shifts in long-established business operations, which could take several years to materialize. Piper Sandler's evaluation suggests that Intapp's current share value is fair when compared to industry peers.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Intapp Inc (INTA, Financial) is $69.67 with a high estimate of $83.00 and a low estimate of $60.00. The average target implies an upside of 31.77% from the current price of $52.87. More detailed estimate data can be found on the Intapp Inc (INTA) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, Intapp Inc's (INTA, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Intapp Inc (INTA, Financial) in one year is $48.38, suggesting a downside of 8.49% from the current price of $52.87. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Intapp Inc (INTA) Summary page.
INTA Key Business Developments
Release Date: May 06, 2025
- Cloud ARR: $352 million, up 28% year over year.
- Total ARR: $455 million.
- SaaS Revenue: $85 million, up 28% year over year.
- Total Revenue: $129 million, up 17% year over year.
- License Revenue: $31.7 million, up 2% year over year.
- Professional Services Revenue: $12.5 million, down 6% year over year.
- Non-GAAP Gross Margin: 77.9%, up from 75.1% in the prior year period.
- Non-GAAP Operating Expenses: $80.3 million, compared to $71.9 million in the prior year period.
- Non-GAAP Operating Income: $20.3 million, compared to $11.2 million in the prior year period.
- Non-GAAP Diluted EPS: $0.26, compared to $0.14 in the prior year period.
- Free Cash Flow: $35.1 million, or 27% of total revenue.
- Cash and Cash Equivalents: $323.2 million.
- Total Remaining Performance Obligations: $621.5 million, up 33% year over year.
- Cloud Net Revenue Retention Rate: 119%.
- Clients with ARR of at least $100,000: 748, up from 673 in the previous year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Intapp Inc (INTA, Financial) reported strong quarterly results with cloud ARR growing to $352 million, up 28% year over year.
- The company launched new AI-enabled solutions, including Intapp DealCloud Activator and a transformed Intapp Time product, enhancing their product offerings.
- Intapp Inc (INTA) successfully acquired TermSheet, expanding their capabilities in the real assets sector and enhancing their vertical strategy.
- The company continues to expand its partner ecosystem, signing eight new partners this quarter, bringing the total to over 140.
- Intapp Inc (INTA) demonstrated strong international growth, with international revenue accounting for over a third of total revenue and growing 20% year over year.
Negative Points
- Professional services revenue declined by 6% year over year, reflecting a strategic decision to outsource more activities.
- Calculated billings came in below estimates, indicating potential timing issues or lumpiness in the metric.
- The SaaS revenue performance slightly missed the high end of the guidance, raising concerns about visibility and upside potential.
- There is uncertainty regarding the financial contribution and integration timeline of the TermSheet acquisition.
- Stock-based compensation as a percentage of revenue has varied over the last two years, creating challenges in forecasting future trends.
