Intapp Inc Q4 2024 Earnings Call Transcript

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

Question: Kevin McVeigh - UBS - Analyst : Great. Thank you so much and congratulations, really, really good results. A lot to like here. I guess, John, maybe starting with you, we may be reconciling the professional services with the larger client sizes. This might be a multiple point her question, but is that work is being done by KPMG and we implement inside? Like just trying to understand that dynamic because it seems like the clients are clearly getting larger and you do less professional services and is that kind of the leverage that comes from KPMG with Microsoft there? Is there any way to just kind of dimensionalize that? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 13, 2024 / 9:00PM, INTA.OQ - Q4 2024 Intapp Inc Earnings Call

Question: Kevin McVeigh - UBS - Analyst : Helpful. And just to follow up with that, if I heard you right, it sounds like you've got 130 data and tech ecosystem partners. Any way to think about how much revenue was associated with that on the platform today and what that can become over time.

Question: Kevin McVeigh - UBS - Analyst : Thanks so much.

Question: Elyse Kanner - J.P. Morgan - Analyst : Hi, this is Elyse Kanner on for Alexei Gogolev. I will ask my first question is it appears that the share of fast in SaaS and support line is growing from 84% in 1Q to 85% for fiscal year '25. What's driving that increase? And where do you see that number longer term?

Question: Elyse Kanner - J.P. Morgan - Analyst : Got it. And then for my follow-up, you are the last company in our universe but only just provided their outlook beyond June 2024. Can you elaborate a bit more on what to expect in terms of total revenue growth in the first half of fiscal 2025 and what estimates you have for the second half of the year, which ends for you guys in June 20? Thank you.

Question: Koji Ikeda - Bank of America - Analyst : Hi, thank you. Okay. I wanted to ask a question about the demand environment assumptions that is embedded into the 2025 guidance, more specifically between the two core verticals, how are you thinking about demand for professional services and financial services. It sounds like I mean, the prepared remarks, you had a pretty good financial services back half. I mean, are some of the expectations that that good momentum there in Financial Services continue into 2025.

Question: Koji Ikeda - Bank of America - Analyst : Got it. Thank you for that, John. And maybe a follow-up here. I wanted to ask a question about the guidance methodology last year was really the first time on Mr. Morton that you gave guidance. So this is the second time you gave guidance, but just kind of understanding that you've been here for a little bit longer than a year now trying to understand how you're thinking about potential upside embedded in the guide. I look at last year's guidance award started and where it ended up both on total revenue and SaaS and support revenue. And I look at the guidance you've given today for fiscal '25. Is that kind of the right way to think about how you're thinking about where revenue could end up or is there any other considerations we should be thinking about?

Question: Koji Ikeda - Bank of America - Analyst : Thank for taking the questions.

Question: Steven Enders - Citi - Analyst : Okay, great. Thanks for taking the questions. I guess maybe just to start, I wanted to dig in a little bit more on the AI. side and the solid early success that you're seeing. And I think it's about $1 million in ARR. So if I'm doing my math right, here. But I guess is there a way to think about like which products in the portfolio you're beginning to see the most traction with to help kind of build-up that number. And I guess secondarily, as we do think about the annual outlook here, kind of what contribution year embedded into the guide from a from a high for this year.

Question: Steven Enders - Citi - Analyst : Okay. Great to hear. And then I guess maybe then just on the contribution for this year since it does seem like it's beginning to have actual model impact. But yes, how should we think about the actual contribution that we'll see come through for fiscal '25?

Question: Steven Enders - Citi - Analyst : That's perfect. Thanks for taking the questions here.

Question: Alexander Sklar - Raymond James - Analyst : Great. Thank you, John, first one for you. Just in terms of go-to-market investments relative to what sounded like an improving demand backdrop. You've got a lot of leverage out of the sales and marketing line as 2024 progress. I'm just curious how you think about sales hiring going into fiscal '25 within the new outlook and particularly given what sounded like a growing international opportunity. Thanks.

Question: Alexander Sklar - Raymond James - Analyst : Okay. Great color. Dave, maybe just a follow-up for you and just kind of following up on Koji's question on outlook and your decision to split out SaaS from support. Is there anything to flag in terms of changing expectations for migration activity this coming year or just a move away from multiyear license deals or anything else kind of behind the change in SaaS versus support in terms of the outlook? Thanks.

Question: Alexander Sklar - Raymond James - Analyst : Okay. That's great color. Thank you both.

Question: Terry Tillman - Truist Securities - Analyst : Yeah, hey, there, John, David, can you hear me okay. So first, congrats from me and also great to see the breakout of fast. I really appreciate that. The first question's a long-winded question then I had a follow-up. The long winded question relates to if we look at a little bit of a trend Q-over-Q, REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 13, 2024 / 9:00PM, INTA.OQ - Q4 2024 Intapp Inc Earnings Call there is an improvement in net ARR in cloud ARR you said on all this new innovation, it seems like there could be some upward pressure potentially on NRR upward movement, I should say. And so any color on that? And are you doing anything different in FY25 go to market to really even more purposely drive out those add-ons back to the installed base and then had a follow-up.

Question: Terry Tillman - Truist Securities - Analyst : That's great. Thanks, John. And just a follow-up question. You're up to 130 partners and I know there are all kinds of size and different stripes. There's data there's software, there's professional services firms. What are you seeing like, for example, the last couple of quarters you've added I think you added six last quarter expanded with five this quarter, five new wins. What are you seeing them in terms of starting to get a motion where they're actually driving new opportunities for you all beyond just servicing your customers, what are you seeing from that? Thank you.

Question: Terry Tillman - Truist Securities - Analyst : 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. AUGUST 13, 2024 / 9:00PM, INTA.OQ - Q4 2024 Intapp Inc Earnings Call

Question: Matthew Kikkert - Stifel - Analyst : This is Matthew Kikkert on for Parker. Thanks a lot for taking my questions and congrats on the quarter. The 2025 guide calling for very nice operating margin expansion next year. And you mentioned vertically I go-to-market motion contributing to some of that. But maybe more broadly, could you walk through some of the efficiencies contributing to leverage and anything that may have been incremental from last quarter?

Question: Matthew Kikkert - Stifel - Analyst : Okay. Makes sense. And then going back to the '25 guidance, how are you thinking about the split of net new customers versus migrations and expansions next year? And how would you expect that to impact the cloud ARR trends versus total ARR? Thank you.

Question: Matthew Kikkert - Stifel - Analyst : Okay. Thank you very much and congrats again.

Question: Matt Vanvliet - BTIG - Analyst : Good afternoon and thanks for taking the question. I wanted to circle back on the comment you made earlier about some of the applied AI functionality now being sort of revenue skews and so kind of two-part here. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 13, 2024 / 9:00PM, INTA.OQ - Q4 2024 Intapp Inc Earnings Call What I guess what mix of the current functionality that's available today is already being monetized directly? And over time, how do you envision either charging directly or using it as kind of an upsell cross-sell functionality with in some of these other modules to give them have more value.

Question: Matt Vanvliet - BTIG - Analyst : Okay, very helpful. Thank you. And then as you look at the partner ecosystem, number of logos on there, you're at 130 now, what is the appropriate pace of sort of additional partners in there versus focusing on the ones you have and really driving the value for those that have committed early and are already a big part of the ecosystem. So how should we think about that sort of growing versus focusing over time?

Question: Matt Vanvliet - BTIG - Analyst : Very helpful. Thank you.

Question: Brian Schwartz - Oppenheimer & Company - Analyst : Hi, this is Brian Schwartz from Oppenheimer, thanks for taking my questions this afternoon. John, I wanted to ask you what you're seeing in terms of sales cycles on your bigger deals. Clearly, the activity has picked up in the second half of your fiscal year and the macro did not come. So are you seeing any improvement in terms of the cycles or so just good execution or seasonality? And then I have a follow-up for David.

Question: Brian Schwartz - Oppenheimer & Company - Analyst : And then the follow-up question, David, I just wanted to ask you about the components of the NRR., the expansion activities on specifically, clearly the cross-selling and the upselling activity is strong from your commentary. You've got the pricing in there. What you're seeing in terms of how growth from your customers is that meeting your expectations as you came into the plan? And thanks again for taking my questions.

Question: Brian Schwartz - Oppenheimer & Company - Analyst : Thank you.