Intapp Inc Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Steve Enders - Citigroup Inc - Analyst : Okay, great. Thanks for taking the questions here. I guess maybe just to start, it'd be helpful to, I guess, get a update on maybe what you're seeing out there in the deal environment in? And if there's been any kind of change in some of the macro, or how you're thinking about financial services side in particular, given some of the softness that you saw there in the past year or so? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 04, 2024 / 10:00PM, INTA.OQ - Q1 2025 Intapp Inc Earnings Call

Question: Steve Enders - Citigroup Inc - Analyst : Oh, okay. I guess maybe just to ask a little bit differently. I think we're kind of getting the question from investors just on some of the ARR and billing dynamics here. And I guess it would be good to kind of give your view on maybe how you kind of view the year shaping up from a timing perspective. And if this is maybe in line with your expectations? Or just how you would kind of characterize how this year might take place versus what we might have seen in the past?

Question: Steve Enders - Citigroup Inc - Analyst : Okay, great. That's all the context. Thanks for taking the questions here.

Question: Kevin McVeigh - UBS Group AG - Analyst : (technical difficulty) to start framing the impact of the alliance that you have, particularly just continues to kind of be enhanced and you know, just so we get a sense of percentages more broadly kind of where it is today and what that can be over time?

Question: Kevin McVeigh - UBS Group AG - Analyst : Sorry, sorry about that. Yeah, just more -- how should we think about kind of the alliances? And you know, does that kind of enhance over time or what percentage of revenue that is today? And how can that scale over time?

Question: Kevin McVeigh - UBS Group AG - Analyst : And then just to follow up on that, obviously you're seeing a lot of outside success on the margin in terms of literally that the margin upside, particularly relative to how you're guiding. Any thoughts as to what's driving that, number one? And then philosophically, does that continue to flow to the bottom line or do you use that as an opportunity to reinvest and capture more the GenAI opportunity?

Question: Alexei Gogolev - JPMorgan Chase & Co - Analyst : Thank you. Hello, everyone. John, David, may I confirm the implied guidance for share of SaaS revenues in the back half of fiscal 2025? It seems like you're suggesting there might be slightly lower share of those revenues in the second half of the year versus 2Q, maybe some outlook or color, why that might be?

Question: Alexei Gogolev - JPMorgan Chase & Co - Analyst : Well, you're disclosing pure SaaS now and in 2Q you're guiding 67% or there about almost 67% and for full year closer to 66%. Just trying to understand if you're expecting some change in the revenue mix or this is just conservative assumption?

Question: Alexei Gogolev - JPMorgan Chase & Co - Analyst : Great, thank you, David. And can you remind us what your outlook is on met new customer additions versus upsell and cross-sell, the ratio that you anticipate going forward? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 04, 2024 / 10:00PM, INTA.OQ - Q1 2025 Intapp Inc Earnings Call

Question: Alexei Gogolev - JPMorgan Chase & Co - Analyst : Great. Thank you, David. Thank you.

Question: Cody Kiechle - Bank of America Merrill Lynch - Analyst : Yeah. Hey, guys. Thanks so much for taking the question. I had a question on cloud ARR. It just drew 27 and a half percent. Really, really strong performance, all things considered. But I do look at it and it has been decelerating. And I listened to the commentary on the pipeline, which sounds really, really strong. But then I also listened to, you know, it sounds like there might be a little bit of deal elongation out there too. So I guess the question is, what is the potential for this cloud ARR growth metric to accelerate over the next several quarters from here and what would be the drivers for that?

Question: Cody Kiechle - Bank of America Merrill Lynch - Analyst : Got it. Thanks for that, John. And maybe just a quick follow up here. Last quarter, you gave a percentage of net new ACV coming from AI products at 4%. I know there's some qualitative, or yeah -- qualitative commentary in the prepared remarks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 04, 2024 / 10:00PM, INTA.OQ - Q1 2025 Intapp Inc Earnings Call But I was wondering if we could get an updated number, was that this quarter versus last quarter? If you could, please? Thank you.

Question: Alex Sklar - Raymond James Financial Inc - Analyst : Thank you. John or Dave, can you just elaborate a bit more on the changes in the sales team and go to market that you elaborate that you spoke to? How much of the team was impacted? When did you make those changes? And I'm curious, have you seen any market improvements in terms of productivity to that large account team in October that gave you some visibility to take up the full year guide above the Q1B? Thanks.

Question: Alex Sklar - Raymond James Financial Inc - Analyst : Okay, thank you for that color. And then maybe we'll follow up for you, Dave, just in terms of the drivers and cloud NRR this quarter. And any changes between end market growth or expansion by solution-type? And then separately, can you disclose the total NRR number for this quarter? Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 04, 2024 / 10:00PM, INTA.OQ - Q1 2025 Intapp Inc Earnings Call

Question: Alex Sklar - Raymond James Financial Inc - Analyst : All right, great. Thank you both for the color.

Question: Saket Kalia - Barclays Capital Inc - Analyst : Okay, great. Hey, guys. Thanks for taking my questions here. John, maybe for you. A lot of great examples in the prepared remarks around new and existing customers and around GenAI. Maybe a bit of a broader question. Can you just speak to sort of where you think we are in the journey of converting those on-prem customers to SaaS? I mean, there are a lot of things that you can do to entice them to move over. Where are we sort of in that journey? And what do you think is going to change here in fiscal '25 around that? Does that make sense?

Question: Saket Kalia - Barclays Capital Inc - Analyst : Got it, got it. That makes a lot of sense. Dave, maybe for you, maybe to the earlier point just around new ARR being lumpy, you know, it's -- total net new error was down year over year this quarter, of course. But maybe the question is, as you sort of look at the strength that INTAP had in Q4, is there anything that, just looking at the postmortem, we need to keep in mind when thinking about timing in terms of how deals sort of fall in one quarter versus the other?

Question: Saket Kalia - Barclays Capital Inc - Analyst : Very helpful. Thanks, guys. Thank you.

Question: Parker Lane - Stifel Financial Corp - Analyst : Hey, guys. Thanks for taking the question. You talked a lot about the development and go-to-market around some of the Generative AI opportunity. But I was wondering if you could touch on any particular learnings you've had in discussions with your customers around the pricing and packaging of those solutions. Has there been any sort of changes or excitement around the way you guys are pricing? What are your early impressions of how it's being received? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 04, 2024 / 10:00PM, INTA.OQ - Q1 2025 Intapp Inc Earnings Call

Question: Parker Lane - Stifel Financial Corp - Analyst : That's great feedback. Thanks, John. I'll get back in.

Question: Terry Tillman - Truist Securities Inc - Analyst : Yeah, thanks for taking my question. I'm not going to ask about ARR. I'm going to focus on KPMG. I think last quarter you all had a pretty important win, I think, in terms of across their global network of businesses. So maybe after that deal being signed, what can you say about your collaboration product in general? Has that been a linchpin to win more business? And then secondly, I think that deal was concluded with an Azure Marketplace situation. And so like, what is that doing in terms of reducing friction and getting deals done in terms of the leveraging credits, et cetera? Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 04, 2024 / 10:00PM, INTA.OQ - Q1 2025 Intapp Inc Earnings Call

Question: Terry Tillman - Truist Securities Inc - Analyst : Thanks for the color. Appreciate that.

Question: Arvind Ramnani - Piper Sandler & Co - Analyst : Hi, thanks for taking my question. Yeah, I wanted to ask about your kind of partnership with Microsoft, which obviously has been, kind of a really important part of the equation in terms of your AI strategy. So question one is, are you kind of keeping your options flexible. I mean, clearly Microsoft is still leading the way. But you're keeping your options open as this AI technology continues to evolve and change and there may be like a new kind of leader in the space. And the second thing is, from a cost perspective, is there any risk that Microsoft's going to take it's sort of like leadership position to kind of increase the cost it's pushing with its partners? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 04, 2024 / 10:00PM, INTA.OQ - Q1 2025 Intapp Inc Earnings Call

Question: Arvind Ramnani - Piper Sandler & Co - Analyst : That's terrific. Thank you so much.

Question: Brian Schwartz - Oppenheimer & Co Inc - Analyst : Yeah, hi, thanks for taking my questions this afternoon. John, I was hoping to just follow up on your commentary that the large deal activity was -- maybe it was less robust than what the business had seen the last couple quarters. I'm just curious cause the pipeline commentary is very strong. Do you think that that's just seasonality? Or is it a macro or maybe election related? Curious to get what your take is on that.

Question: Brian Schwartz - Oppenheimer & Co Inc - Analyst : Thank you for that call, John. Appreciate that. David, maybe just one with you. In terms of maybe the assumptions that's underlining your growth guidance, I'm just curious how you're thinking about the capital markets activity? Are you expecting any change in maybe the end market demand for that segment from maybe what you were thinking three months ago, given how interest rates have changed since you last gave guidance? Thanks.

Question: Brian Schwartz - Oppenheimer & Co Inc - Analyst : Thank you for taking my questions.