INTA - Earnings call 2 2024

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Operator

Thank you for standing by, and welcome to Intapp's Fiscal Second Quarter 2024 Webcast. [Operator Instructions] Please be advised that today's call is being recorded.I would now like to turn the conference over to your host, Mr. David Trone, Senior Vice President, Investor Relations. Please go ahead.

David Trone

Thank you. Second Financial Fiscal Intapp's to Quarter Results. XXXX Welcome

today Hall, David Chairman the Chief call CEO John me with and On and are: of Officer. Financial Morton, Intapp;

or revise made certain also filings forward-looking risks conference During of are SEC will by are such views Intapp our in the quarter our described business, for statements, disclaims results call, the call, and statements provided publicly actual of regarding to and uncertainties, are that certain guidance except fiscal assumptions understanding we differ XXXX. we aid anticipated the performance any materially trends, obligation subject those this forward-looking may forward-looking difficult discuss statements. our today's expressed current documents, course on by including expectations, to any and full believe and as strategies and from of and law.Further, date results. implied make cause to required various management's third These we as based forward-looking other in non-GAAP today's on that predict and statements metrics including could to update of those entail our available year financial or

figures a growth for today revenue As and obligations. we and current our all reminder, are of financial revenue discuss will non-GAAP, except remaining performance

financial website.With conversation John. which and call, and is X-K that, the supplemental our to measures website this prior financial can with SEC financial presentation, furnished a an its the on of which be on the or over hand I'll non-GAAP Form financial today's GAAP exhibit to to to available GAAP with in earnings along Our release reconciliations results, is as found our tables, available supplemental

John Hall

ARR applied by new when represents applied you released In cloud of year-over-year. QX, total strategy world. and Thank map solutions $XXX.X total second on share date XX% supported grew And I'll Cloud now Intelligence SaaS of our you, with $XXX share share our our during up we David. place new as capabilities new host quarter, to XX% results million, brand $XX.X and million. of AI a and our around industry from I'm and The investors. revenue partners the million, excited XX. fiscal highlights these year-over-year; afternoon, the built our as earned the logos few In well AI second announced of of accounts as take our new our XX% up the we'll we existing quarter. strong capabilities, quarter. We're inaugural of expansion million, unveil of our initial quarter. our pleased the road XX% fiscal of revenue all of also results identity developments we that AI our a and to Day marks Launch Thank innovation, Day, share our will and year-over-year.We we for a February joining Applied Investor to to up $XXX.X today, success clients, everyone. us you.Now ARR Support Good

innovation. First, about I'll talk

data help been learning; our infused automation; decisions. to make I've our solutions including: for and now processes throughout to with better, years technology, embedding As critical clients Intapp has more our now. learning; use than mentioned, faster improve and industry-specific machine XX We've platform AI, generative and AI solutions AI deep their

capabilities third-party We're example captures their value and adds helps tasks to intelligence insights be DealCloud. data, seats, deepen the the world Applied intelligence Day entry The the professionals in capabilities solution of A McCabes relationships call, ranging with directly who one keep XX while entire or Launch to feature prioritize professionals at and is delivering up-to-date.It's relationship company with most as using it on X,XXX now helps February another added this philosophy. our This largest platform. firm's and this information great quarter, manual from promising revealing to firms deploying latest support relieving of key creation this from within mentioned automate companies their from XX. they including a our XX them the relationships AI and I the at act their During broad that DealCloud to at and we'll typing. we directly then of greater busy from contact lawyers validate instance to who firms the top Lawyers their interactions, and contacts example enhanced quarter set and client across feature is clients.As on AI countries. opportunities enriches relationship X the new We're of Intelligence via

firm-wide showcase We generative AI clients our drive broader and transformation and will so trust. productivity, how can do help incremental compliance enable with

to to fund-of-funds. Program to always an to The as equity for existing an included faster on as During approach. enable We for provide our our also we're clients firm's portfolio serve to worked AI capabilities best specific the footprints most sub-verticals release that client and feedback for our bring with our for clients with using which continuing solutions. new needs several are industry-specific well practices we latest delivered at been deployment to industry enhancements path our in features, new seeking their understand that We're Intapp's AI ensuring practices Working needs.We're accelerated use QX, blueprints now DealCloud growing applied blueprints to we purpose-built development all our also time expand private value. capabilities that closely each legal, even product these clients. best Early integral has of new to pressing excited We're of applied and with and Adopter closely firms AI.

and which contact that market deployments our client our blueprints intelligence.Our strategy critical drive show practice and strategy partners, solution our will existing blueprint growth. initial integration accelerated their of data increased extended satisfaction both us faster win helping our also packaging data technology, industry best rates, to We us enrich many serve with DataCortex well supports with new and and clients

firm, Rhone private quarter, a in and transatlantic have to Group, expansion thousands intend practices blueprint. this homegrown the to example, gain its With an aging selected in on using of roughly replace deploy best equity access of our we enhancement learned blueprints private half dozens equity build these deployments. we pipeline, As Clients continued time, our leveraging to over the CRM offering.Okay. more this successes blueprints with the and DealCloud

base new implementations. vertical clients Moving that to we pleased every share how again of existing expand wins some our that to we across QX serve. welcomed I'm we're and grow to examples client and accounts. I'll continuing share

to legal DealCloud firm's who and Panama-based to X more They us of consulting have managing firm, their seen purpose-built private this time their will With deals. a Marriott due gains. lack Intapp and CRM associated cloud-based quarter the just Porzio, among highlights:In market to system. Here They our selected and the collaboration the new firm, selected growth ability selected efficient, of volume efficiency selected support Conflicts integrations of and professionals. firms: replaced client the market legacy our that also conflicts Banking expertise strategy corporate significant DealCloud of numerous reliable, among chose over impressed the their Galindo, be banking consulting to are consulting they CRM needs.We DealCloud's cloud-based our client growth adoption processes high our Lopez, generic to tracking greater Livingstone equity-focused in software's help Microsoft a anticipate Partners global a take And including replace functionality. logos technology Intapp of capture teams. CRM. development their U.S.-based cloud-based several a Time Harrison, work, And execute after few expansion marked also & pipeline automate time clients, firm's by firm. tailored suit Accordion, better Time and & with recently promote the selected these addition they required deciding advantage specific our in because Investment new in the checks. in Bromberg with of investment with able base, AlixPartners Arias to We legacy to Newman automated the Intapp U.K.-based team have were with DealCloud platform saw visibility included a global base for complexity

of the meet complex maintain the to lacked time They continue consulting adoption. DealCloud's their the of Intapp in a and Intapp opportunities. new affirm horizontal to and Advisors international law of across to Time our and and growth uses tech Am Global challenging The a world's DealCloud. was top purchased entry capabilities implementations firm, from replaced the on-prem solutions, of in law examples. data the its our Overy, time and Intapp DealCloud on cross-selling legacy our sectors, capabilities to Law energy to Time net drive CRM to intelligence which and This successes cloud take its one business. interface as continued proud wins even they'll and their from develop to tailored CRM, These Intapp its the number client new had share selection. helped selected business, and Intapp Botts, lawyers intuitive help firm through deepen expansion its a upselling drive in firm relationship with accounts revenue recently growth Compliance believes strategic automated relationships existing DealCloud optimistic and completed example market to from through deliver plans cloud.In shown and to Risk is like of about existing it solution clients legacy Baker the retention.Let Additionally, over of DealCloud features world's accounting we're we're competitors. for firms.Finally, needs most largest cloud our automate our offering time. firms, of its replace large finance benefit and DealCloud selected use strong and U.K.-based to employee and previous more and largest Time. division's Square see based banking continue compliance typically DealCloud team. solutions Investment our quarter a we in performance, second cloud X migration expanded solution. implementation migrations easier, has monitor blueprints corporate tasks accounting and firms.One quarter. world's conclusion, replace strategy advisory software of to the success ability largest personal offered which which our Ireland geographies the law trade at uses mobile completed chose to industry global & Allen an Intapp top multiple now of will modern way specific on-prem firms an firm our to proved selected And and activity. options, compliance the compliance continue CRM great firm of The the few long-time as me Union capture, include client a one go client, power transaction their large straight to professional its And our support XX

brand across model identity clients new subscription We continue to to share and new our grow opportunity to TAM end in see map and from cloud within AI revenue continued adding QX new expanding greater to adding wait harness detail to AI our positioning we a platform, As generative platform. industries our durable us lead by few existing with purpose-built We're weeks and of serving illustrate, can't and our now. capabilities to a we client base. power capabilities, new a help broad just road our industry-specific drive market AI, the our applied highlights growth,

adoption growth great the our join their our opportunity all I'd cloud partners, Day. on across you to investors, thank Intapp and our and like Investor hope a We have us teamwork Board global our clients, we to always, industries our modernization team the drive AI, for for dedication. serve.As XXnd our We all and

to on at over You QX much.With can to it results. webcast you our the link all our Dave that, let find share investors.intapp.com. Thank me the turn very website to

David Morton

our we XX% clients Thanks, XXXX opportunity largely for and year-over-year, $XX.X cross-selling and quarter. enhanced driven fiscal achievements the to from us license motions. today. beyond. and growth multiyear These to opting deliberate line leverage SaaS Professional as strategic was on-premises several up rate extend large X% exciting was both was clients renewals.Total million, quarter the thanks, in sales with is $XX.X XX% on increase. opting deemphasize experiencing to revenue recurring second reflecting QX This million, customer services professional of realizing and and sales our revenue The sales within was driven growth in new revenue. leadership us our an for John, XX% operational of I'm strength million, year-over-year by expanding quicker Subscription year-over-year. to a million, up shift revenue services, modest existing up partner clients upselling to revenue $XX.X $XX.X clients position our collectively report up process.Total better market instead to further everyone, license expedited primarily of an efficiency $XXX.X due and contributes revenue to year-over-year, embark solutions to through and network. performance our our implementation and base million, of joining time QX XX% subscription industry solutions was strong cloud of success solid by pleased growth, year-over-year, of Support revenue expansion value

businesses invest fiscal period.Non-GAAP approximately international year use increase revenue our growth. strong, development to remained non-GAAP of operating were of expand QX gross QX. XX.X% operations of go-to-market further was outside and year-over-year support revenue million, to platform invest a the to expenses million provides international as $XX.X Our $XX.X the growth opportunity prior the XX.X% our from contributing U.S. continue as margin total in in for product and we to XX% a compared in our

which million, up our EPS up metrics. than and As cash $X.XX period. the $XXX,XXX, at XXXX operational $X.X quarter the to ARR XX% fiscal year period. our were the total second Non-GAAP execute year million ARR as cash $XX.X prior focus or operations more to profit in ARR Overall, obligations land-and-expand had compared of our XXX to least year cash XX% continue $X.XX year-over-year. which diluted Total in period. We and year-over-year. up ending key was capital quarter is prior as we prior was as with the of of quarter second total our efficiencies, revenue. flow, was from the up Free $X.X clients, the continue was XX% we for year-over-year, with to million in million flow $XXX.X less compared of million on to operating of was exited XX% remaining expenditures, model, XXX performance from defined X,XXX in Cloud quarter $XXX.X cash equivalents.Turning non-GAAP

ability retain to XXX%, Our key XXX% our to our existing range was expand This and customers. which turning to net revenue to retention steadily continues underscores rate XXX%.Now track of our our with within business metric outlook.

the of our expect specifically in SaaS we full and maintaining $XXX.X XX reducing non-GAAP $X in between of of of $X million the $XXX fiscal on of the mix $XX Support million outstanding.For to million total are For range non-GAAP profit due million. our emphasis revenue to we expect million. $XXX.X $X.XX we intentional using in to a between count of the SaaS common quarter and third $XXX.X XXXX, $X.XX revenue results million; quarter year and And million services, million the million; and $XX revenue fiscal million; operating increasing to in contribution approximately to the diluted are the revenue we $XXX range shift our total EPS share professional Support of revenue shares range the for million 'XX, and $XXX.X weighted

to diluted weighted to range operating to the of million, $XX range on be million We inaugural XX. common outstanding.And for also 'XX $X.XX count hosting Investor XX in million of EPS be of and will share Day non-GAAP shares approximately the $XX February Intapp in as non-GAAP fiscal noted, using previously $X.XX expect our a year profit

will financial metrics, and targets we valuable strategic forward I the future back event, comprehensive the on while Thank significant key will overview call stakeholders sharing turn discuss imperatives, look insights occasion. our to this to company's of now with the trajectory a During We our providing operator. you.And plans.

Operator

Bank the Koji Instructions] of Ikeda [Operator America. question comes first of Thank of from line you. Our

Koji Ikeda

from me. couple A

launch I about wanted on the monetization I follow AI actually up on last year day. And AI, you one excited question to asked our Conference. hear First a to at Tech

there these about day, Any mean, of how you the SKUs? So monetizing I you helpful. launch something color be would introducing this sort thinking AI SKUs Are new else? are AI on planning are premium add-on products? new or

John Hall

thank will a you. Koji, mix. we Yes, have

be the people capabilities for. of introducing some have we of SKUs be been offerings the our advanced additional will on more in today, capabilities also clients some have included that but that asking based So subscriptions will

both. So to going do we're

Koji Ikeda

to Got it. of And again to $XXX once the retention wanted revenue to over in $XXX million shift net I it. here the Got next range question million.

retention, a all of of to else? little split versus net playing vectors, financial into those how revenue between of services Just of trying are cross-sell triangulate net bit maybe DealCloud contributions the and maybe anything a revenue the then couple retention? services versus professional of And

David Morton

Koji, additional to metrics. I of Day. it's key any run our Investor at color want to we'll Dave. those Yes, don't upcoming that front give some

like also at those not higher native looks everything articulating a created rate. that well, for are have NRR is We albeit equal. solution. should clearly, what of the rate cloud a quicker off-prem that pace And Obviously, solution, off-prem as that on advancing clip

Koji Ikeda

Got it. Thank you.

Looking forward much. so Thanks to the Investor Day.

Operator

of comes question Steve the next Our of from Citi. line Enders

Steven Enders

Okay. Great. just I side. the coming AI pipeline in to maybe on start, intrigued what's hear the about more to guess

you about you're do after? win you the for AI becoming be differentiator Intapp that customers, As to the cases going cases what feel those targeting the providers right in marketplace opportunity for the use other use you that what and think might ends within versus how your the gives about up

John Hall

solutions build the practice all of model to needs solutions that the we're these The technologically with work that applied each industry that firms, financial professional specific our firms, angle the of and the each excited high-end into way these overall meet the of in areas, they AI they partnership whole of and in the directly professional it's that the the for company a also capabilities work same compelling it whole types, AI of design we that to deals, And for and are feels so of complex AI thing but us advisors And firms for you. uniqueness specialize which see engagements, positioning is differentiator be they huge services our applied time. the matters. solutions. the people time our really strategy from work, on company and Welcome, to both themselves, Valley, of way because AI the positioning first who of each the a of deal the users the investors when that somebody working way on investment of strategy to come built the industry is teams the applied we speak and same, in Silicon how that the the the taken understand them technologists these have really population for the we've work.And they a has with to end huge the that generation from

Steven Enders

we of would And more maybe Dave, seems in here, over drive, time? like that is the services A I looking helpful. there. then about But And That's margin the right about just that's like headwind sure effort from be a well? away going we're impact. how It shift to what thinking guess, or couple on I context thinking puts that to there's main, want I out and that guess, outlook the make considered that takes and how way. shift then be as the just should of

David Morton

No, for sure, Steve.

we'll build as likes up our out, continue to term, and more over I more continue ecosystem. with to of partner obviously with the partners within the long that be to we economy looking think the model we

value a going that so, then that. path of respective to continues look And well longer both to seeing even our point break to we're and model respective very that the continue continue factors something on very, at to driver, our on CSAT well do as as be clearly our at margin, a Think to is But also clients. forefront, some Obviously, margin a think and durable. term contribution touch as innings very, more profile.And I overall the to SaaS growth continue revenue so, within from is this very value specific we're to of that versus as the term. early with on you've started growth, be to and which work we'll we levers, continues longer narrative asset

Operator

from Doug Our line of next the of JPMorgan. question comes Bruehl

Douglas Bruehl

results. Congrats the on

and of a looking So a at sales bit in marketing, seeing here. decel growth

versus investing So you maybe about are balancing how profitability? growth thinking in realizing question,

David Morton

as already opportunity, we're great the looking tell a areas and at and question. as it's planning today, going Yes, under at envelope to I productivity you FY our would continued look for as we that started well forward. we're the continue 'XX scope

think And from then so, we hopefully that that to scale it's to going continue of or monetize additional past the see investments with we've we continue and go to a balance be X, made year that driving not the only over always leverage. there. and And the rate pace can

Operator

James. from comes Our Sklar next Raymond the line Alex of of question

Alexander Sklar

and John Dave, DealCloud. on X-part question

wins last in that did efforts some some announced you quarter. remarks You brand consolidation There's year. the this nice prepared

that your for wins you. you past? any David, from to market in financial was drove how in John, far model brand kind first the benefit talk about offering DealCloud versus much So those prior what And the services you've Can consolidation? seen of professional so the

John Hall

getting Thanks, and -- of from folks Yes, for time -- lot had IPO, firms even At services a legal, and accounting OnePlace a calls professional got by but represented the consolidated of our a DealCloud technology, of DealCloud inbound a consulting was lot called in that we the is we the that had we asking it we that knew Alex. history technology started name. branded industry our brands.

underserved here excitement now are advisory say, and of we branding that some get across So market."And DealCloud a we just our a leverage There's best had the our we was word-of-mouth the firms. community change across technology can OnePlace all a gone And simplify some decision a people because who It user of it with users conferences, for boards, made change. DealCloud to so, who brand it whole but together pragmatic are coming on wasn't to have that we the an actually pursue each specialties and way opportunities deep here lot share opportunities the in at go expertise other. market, model. all linear a look they and back if who covering in networked area. enthusiasm professional a firms market have with of a different these broader lot sales initially, change. "Oh, actually on uncovered there's of referrals our a marketplace, our But at sharing a was you community step of They a brand each been have lot practices love each events, huge of people.It's very relationships through pursue the these talking All model other. these to the network they clients, among not firms to going that

actually to offerings a generation. So in name think talk able consolidation excited about the of DealCloud, the turned grateful platform coming very DealCloud there's has there's relationship community a the I that brand a growing talked for folks positive rest net lot the to the who us we're this about out we see intelligence, a firms And as specifically, applied for "Hey, and said, in. now really to of this that you of of be we can because DealCloud be AI the have, who quarter were I'm which more in, I and broadly bringing next enthusiasm but bunch to

work So, XX because we out word-of-mouth that to marketplace. we us. you'll sharing on really That's for everyone working brand want simplification help see more across the the February come as some on

David Morton

serve all efforts that our your to see where that industries and cost we that going and continue say as across to would the opportunity we focus various most. the using in the you're to being that's probably P&L upsell I manifest of able same technology. is cross-sell And winning

Alexander Sklar

We'll the somewhat look talked strategy? few rates, is mentioned you developments Okay, the from for in more coming remarks. strategy, that's you're other on terms seeing the that just versus then. initial strategy, something quarters rates quarters Can in new one about early win what blueprint on win in prior great elaborate there track you the blueprint prepared you the thing that or color. new as of higher the positive saw of John,

John Hall

we The private in come and blueprint. this quarter, credit, that a we in expanded to funds you -- the fund and experience previous when quarter blueprint about our specialized show talked you

and You're psychological really a they you expertise. the universe the XXX getting like it the that that also more and specific of to and it work more going the of then, and and to that at got appreciate types able clients, quickly. understands see have not -- recognize deploy the confidence huge and broad solution each do makes them first to way they you that a teams clients talk impression gives and XXXX they to them. only that them our And have professional they but that you've really moment industry do. But And be just up running a just of work we're way get

come the them in a to that we're seen time.So to people just so, we when funnel support enable as able shopped. conversations as both later as early lot nothing what be for like and need of it well process to professional any is type of show deploy. them in them that at to time-to-value And end this competitive the the of they've that in and showing confidence There's going over we have the strong we're responses

blueprint this it model enthusiastic costs and do to and part successful, down helps of on we're very It helps on on the people more. helps to strategy we're and win services rate, here. to it value, going about So getting help that's our time be

then, applied blueprints this going. is where And believers the under AI whole now, So is we're idea. big this rolling strategy in

we each the So to AI want specific applied workflows. bring of really out professionals to

Alexander Sklar

context. helpful super That's Okay.

Operator

Barclays. Kalia line comes from of question of Our Saket next the

John Hall

talk hear good you. -- it's Saket, to to

Saket Kalia

in seasonality cloud I wonder to think business, calls. how new of particularly John, been of guess as John, a advance if Dave net the these some in you But maybe couple here have look at asked, for apologies questions of you. hopping here just kind we ARR. to about I the

on kind Or a bit shape how strong spending in bit of the Just down think really year. cycles? start Does of in business? a sense? of the about little sequentially. based typical have the shape your you color was new We of think that that, of little Is make with seasonality? kind sort in with the that line ARR sort to line you on customer of Net that about

John Hall

absolutely. Yes,

So generally of figured speaking, our some that year out. clients ends in the and June, have

So the different across quarters. to have tend patterns we

years, Some the April. their end in of now, them some of U.K. in end

some quarter. quarter there from So fluctuation is to

had in this results. strong we think I quarter

also The a interested the some that in were and and management firms reports economic we to come saw us professional that of about We mix when investment consulting the of we made We and some bit like accounting and a about economic strong. reports quarter saw kind that little firms, very saw see also the over. evolution. large out.We of the legal, after little the hiring banking it to saw sense were there matched a from of bit the was of budget news services

we've from of model, different results of firms. through through. some worked I some a parts across But of So that durable we've think quarter's that we lots these talked this. our of about diversification that because the We've cycle was this in economic as benefited consistently and grown of there

Saket Kalia

for for makes February Dave, sense. That maybe my you, to really follow XX. up it. forward Got looking

talk fun I to be about. going think stuff there's a of to lot

coming I the who If a background kind that you teaser, SaaS many of of And scale past, based aspire a are sort But based to the you do much sort this on perspective? businesses to? where guess too you sense. business different of makes of where model from you from Intapp's are your let lifecycle Who in benchmark you on, so so, if know. in me is do given

David Morton

of [ It reason Because that to many had SaaS, and compras right? they're a there's purposeful-built be a and for years they've does. the And of ] in vertical we great success. that, very lot aspire there's

some of in serve those longer greater that clients. somewhat through as markets and about as got we so, to. respective in also Clearly, it's at a to tail worth clients. respective top and our these opportunity the base kind apply of of go us those and we where we be we look could kind But we've follow serve of footsteps that that uniqueness headed evolution going resources kind couple and with of of well.And have our a we're we we evolution so hundred of have billions TAM unique very And as the and

and we've about behind So both more the that customer spectrum of model of arrow. the clearly, that these within wood examples or excited some that articulated client of seen ends But of you've putting in resiliency more kind across talk we're coming on where that pretty we're to our that XXnd examples.

Saket Kalia

Got helpful. it. Very

the forward to Looking XXnd.

Operator

Our next question comes Lane Stifel. the of Parker of from line

Jeffrey Parker Lane

have AI AI the month. the or talk if see lot applied market. on doing to for is feedback trust going but to Is solutions the markets going I and been to what's really tools starting a generally up of positive? get budgets take different there could to this guess, these in around to some you there's think Or see big hands free AI? guys clearly you're We'll near-term? their more it those Curious end acceptance behind on a scenes, you for the the before opportunity a Do time about, willingness people your while, AI you later their leverage bringing you John, workflows.

John Hall

some who way into make these for early to are think, AI they a how is just really I potential its knowledge-based professionals. feel enthusiastic big there because there's adopters

large of So daily broad standpoint, about AI then, sets information to much try large workflow is of for the types their that a a what they do do, point and is deals the a generative clients.And there's their different much unstructured across a advisory back They're all now to lot and so to potential, of processing to deal orchestrate from of about data particularly store. they for clients of view, activities to their come these excitement of decision looking of expertise. advice data of serving investment develop area of regardless either work areas of that

that a applications value one proposition in AI aspect of the in years. there's these very unique point compliance do there's an what such of Big can to in, What of that their knowledge so ways.But industry-specific we folks that are information all early this because the to going about AI compliance that regulatory the some information with the have?" potential applied are pragmatic we We are AI are had sure around bring has questions? and we compliance saying, and who And some the concerns. the position If our comply more all make we've all industries then at is focused So buried issues and of are we client area globally about in it, industry-specific the many but that, who strong we're to core the do how on think great. is here organization systems. believe set obligations we a and access I a going going with in we trust is obligations so, questions? for "This lot folks of we

bring opportunity. that going this is think from the theme compliant the you're where to And whole we're This have. going, that a barriers and AI anybody is So story we lower concerns hear will a more to is to the might us.

in think in do specific timeline, AI to but fastest making work that terms perspective. all we're of we And today, these not I can the get deployment commitments so the firms through

Jeffrey Parker Lane

about That's in feedback. premise? that talk Time firms to if the premise Why drives the it. inside people what you held and are ones the that on really the remaining was cloud you curious out could still incentive that simple or law great have large Got of been migration, the seeing the Intapp I now? past. question. have and to What on the laggards move specifically Is

John Hall

been interesting. Yes, it's

on-prem wake-up home COVID, have access that think to had about get go I solutions. firms their fact moment right everybody traditional people these in-house when built bit little for or all had and because talked lot for could a a we've a of the experience the

a commitment.What's the clear through, now out, making couple their start everything permanent firms out mindset; was made actually sort of cloud-first the environments is, coming cloud. have commitment change firms have the think had cloud-only Even meaningful rolling get and projects of or moves So a that. I and the that organized, of made in that IT a to happening years the to priorities most legacy a have their

do encourage our to do firms we So that.

We haven't and gotten of are into think it's them really yet prescriptive and that they must a do pulling just it have flipped I on market, a us yet, the sign. and great particular lot a started timeline

going you cloud particularly getting all position can we're them benefit get to are help stronger technology new firms the in and from into and the a the really platform. all cloud stronger that and a think, that AI technology only I

development it's faster of So, the market just the and normal going here. to I think go this is

Jeffrey Parker Lane

you appreciate the I questions. sense. guys Makes taking

Operator

the Securities. of Our comes next from Terry Tillman of question line Truist

Terrell Tillman

on in John, had results just solid I Dave as congratulations X well from questions. the and me David, quarter. the

just at -- Microsoft. ongoing levels relationship multiple it as to First, relates the with

follow for it's whether prepaid and Azure business, I marketplace a how just them spend up? Dave. to is shaping So and being then use had able up question that cloud influencing And

John Hall

relationships wins We're they with that they buy Terry. to quarter The And realized signed then, of and Microsoft Microsoft and And continuing contracts some benefits the more they this develop. the here were that accounts. more do contracts could going additional some and firms because used to had from some in ground us. could and some up relationship they we buy to Microsoft. get we firms forming that grow commitment Intapp even they from where already is Azure Thanks, each in really had on minimum and had exciting for

our way cash I to and a follow into maybe as or there's rest for seasonality of going quarters think question our think flow guess, positive think to lot this second maybe couple hear. Dave. feedback or cash on the EBIT it about field just I helping great And should flow. of we of cash half? of we up So the to point, and Microsoft's free how field us.That's of little the what's the between is Any understand conversion? next free then, a move Just flow free trying about relationship to more the bit year the

David Morton

Yes.

continued just think as forward. at and a around normal such things I of working constants more to and like course. us receivables normal that, foremost, lot lot, we're just for cadence come there's we're value a really just X efficiencies, and still on get trying with some operational here things to First a opportunity Which right? still for simple our been doesn't but face move months then I've up and little some Terry,

more well will, in seasonality others, that 'XX say on June as through okay, already for business year.And we would in respective about midway December leads at around here theory a that apparent oriented can we John, come for as our normal EMEA course, into the I So in. how's get when then FY U.S. look and

following some that of standard move accounts XX, terms as XX so, of bigger in would quarters. needle And payment look that clearly those at we the the may with days, follow continue to

bit back more in we little something and X. quarter in can here a So a talk detail come or

Terrell Tillman

you soon. Understood. guys See

Operator

the line BTIG. of Our VanVliet of from comes next question Matt

Matthew VanVliet

Azure think dollar-for-dollar Microsoft of us more versus channel. that comes the about move come there and here. leverage workloads Maybe uplift quick margin side? can it contribution sale the margin you're follow-up help the one Microsoft Just of through a you spend, leverage when from think really partnership think we the about? is prepaid a Terry's of over specific sort sort But direct is on the to time on a contracts margin those just as question or channel more to about existing getting of that you Or gross of through overall that as the on an customers gained the some

John Hall

the I think business but you I through small is It's color, And give overall each and in to anything on that our causing to and as started business. every win deal to some So the sort the The I'll mentioned, contribution channel from to grow relationship relatively relationship not in certain around then far that of want to that's think can I of a already something overall has we've way our in add. Microsoft's opportunity Azure come Dave, more generally, model grow board. have we today, see fraction some you so large this continue there's the It accounts us talk commitments. then, about coming firms that those. as had comes

together they with in meeting days working early world generally that clients of getting footprint this I a visibility lot same a So the a the and model.At the think it's have and of they strong have and and lot on they regions them a around time, of and lot capabilities. we're buzz have where energy Azure the working

may a do it though say think the be in a is place we're Dave, to major that today, you positive I contributor. where net early So model even want more?

David Morton

of you John respective enterprise of serve, only but No, is know what a both not great opportunities it's box, additional in that conversations on. industries some larger is think also the spot ends. When we can check foreshadow the for Yes. on their avenue it

of in great and a today's about noted, it's, And points. John think very dollar-for-dollar that's just been I it's P&L, had same. as immaterial series impact conversation think so, it's overall When you

that additional these we're like, and continue longer of and relationships both term so, on. we get we to color materiality evolve looking could some how And give some

Matthew VanVliet

the Okay, here to very then where needs the year time, of helpful. longer fiscal period line of more And kind revenue of grow do business expand what the in look the sort of do enough that? do half really you scale continue out expect growth, continue to in that into? build a terms or What as you stand less have your can you and areas second of towards you headcount of to now over to you with or areas and

David Morton

I we're at the to going grow or se, of revenue per expense don't levels either headcount. think

So you're see coming always going leverage to off some natural model. the

these we primarily it's your we forward, product as continue online. items as be going going different bring As about and headcount far to engineering talk to in that

the investment we industry AI about talked the solutions as within as on. well narrated So we've that

series so, day our good little over, then And moving we've that's bit early about of been economy. partner a investments.And back a narrated

is on would and or see marketing; bit see extent opportunity that's down and that that, can can And some go little scale, then, so, some a more and that. concerns incremental of there. further international the investments a road, in the in we that areas you broader we see small any any investment And sales this we to incremental addressing with

Matthew VanVliet

forward Look couple seeing Great. weeks. a everyone to in of

Operator

Brian comes Oppenheimer. of Our of next the question from line Schwartz

Ari Friedman

This come like Or there above is international. Any question of Dave, XQ? color kind on line? in were from had that said about Schwartz. on geographies all Ari just came know, had you revenue any in helpful. the Brian Friedman like expectations? your I did I would international sitting in be guys for XX% of a geographies came that that

David Morton

Yes, everything It's pretty line. a series in good activities. of came much

opportunities, obviously, forward. going have We

I areas opportunities the hub-and-spoke in so, vis-a-vis, expand more some And And you'll of past, as opportunistic purposeful purposeful. start of that. versus say, some in those our have going on think continue pulled being the us we more international with of would opportunity on I hear to been some of versus accounts. narrating us direct

So hopefully, that gives you on some color that. additional

Operator

you. Thank

Okay. I'd John the any That turn does Hall for conclude call to like our session. to closing over Q&A remarks.

John Hall

have great Okay. QX to excited Thanks, again you attention questions, we XX. us, we're February everyone. your and We behind and a and appreciate at this talk your Day to month Investor on

let a great go. Have for now, we'll day. So you

Operator

for conclude gentlemen, all and today's does Ladies you. Thank you conference. Thank this participating.

disconnect. You a Have day. great now may

Intapp (INTA) 6 Feb 242024 Q2 Earnings call transcript