Intapp, Inc. ((INTA)) has held its Q1 earnings call. Read on for the main highlights of the call.
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Intapp, Inc. recently held its earnings call, revealing a generally positive sentiment with impressive growth in cloud ARR, SaaS revenue, and AI capabilities. The company highlighted strong partnerships as a key driver of success, despite minor setbacks in professional services and license revenue. Overall, the outlook remains optimistic, fueled by strategic initiatives and market expansion.
Strong Cloud ARR Growth
Intapp reported a significant increase in its cloud Annual Recurring Revenue (ARR), which grew to $401 million, marking a 30% rise year-over-year. This impressive growth now represents 80% of the company’s total ARR of $504 million, underscoring the successful transition towards cloud-based solutions.
SaaS Revenue Increase
The company’s SaaS revenue saw a substantial increase, reaching $98 million, which is a 27% growth compared to the previous year. This contributed to a total revenue of $139 million, reflecting a 17% year-over-year growth, highlighting the robust demand for Intapp’s SaaS offerings.
Expansion of AI Capabilities
Intapp introduced new AI features in its Intapp Time product, which garnered significant interest with over 100 clients attending an introductory webinar and 200 meetings booked post-launch. This expansion in AI capabilities is expected to enhance client engagement and operational efficiency.
Strategic Partnerships and New Clients
The company expanded its strategic partnerships, notably deepening its relationship with Microsoft. Additionally, Intapp added significant clients such as Starwood Capital Group and Alpaca Real Estate, which are expected to contribute to its growth trajectory.
Strong Net Revenue Retention
Intapp’s cloud net revenue retention rate was reported at 121%, demonstrating strong client retention and successful upsell and cross-sell strategies. This metric indicates a healthy and growing customer base, essential for sustained revenue growth.
Decline in Professional Services Revenue
There was an 8% year-over-year decline in professional services revenue, which the company attributes to a strategic focus on long-term cloud growth and efficiency in implementation practices. This shift is part of Intapp’s broader strategy to prioritize scalable cloud solutions.
License Revenue Growth Slows
License revenue experienced a modest 2% increase year-over-year, reflecting a slower growth rate as clients transition to cloud solutions. This trend is consistent with the industry-wide shift towards cloud-based offerings.
Forward-Looking Guidance
Looking ahead, Intapp provided guidance for the upcoming quarters, projecting continued growth and strategic investments. For the fiscal second quarter, SaaS revenue is anticipated to be between $100 million and $101 million, with total revenue expected to range from $137.6 million to $138.6 million. For the full fiscal year 2026, SaaS revenue is expected to fall between $412 million and $416 million, with total revenue in the range of $569.3 million to $573.3 million. These projections underscore Intapp’s focus on expanding its cloud offerings and leveraging strategic partnerships.
In conclusion, Intapp’s earnings call painted a positive picture of the company’s performance, with strong growth in cloud ARR and SaaS revenue, alongside strategic expansions in AI capabilities and partnerships. Despite minor declines in certain areas, the overall outlook remains optimistic, driven by strategic initiatives and market expansion.