Intapp, Inc. Q2 FY2025 earnings call

• Cloud ARR grew to $331 million, up 29% year-over-year, with cloud representing 76% of total ARR. - Introduced AI-powered search in Intapp Assist for DealCloud, deepened DealCloud integrations with Microsoft Outlook and Google Calendar/Gmail, and expanded Intapp Walls for Copilot with risk assessment. - Partnerships grew to 137 data, technology, and services partners, with new integrations like prongs and pass-through. - New client wins in accounting/consulting (Alvarez & Marsal, Milsted Langdon, Armanino) and legal (Colin Biggers & Paisley, Sackers) sectors. - Strong cross-selling/upselling in existing accounts with law firms, accounting/consulting firms migrating to cloud.

In the fiscal second quarter, cloud ARR grew to $331 million, up 29% year-over-year, with cloud representing 76% of total ARR of $437 million. SaaS revenue was $80 million, up 27% year-over-year. License revenue was $28 million, approximately flat year-over-year. Professional services revenue totaled $13.2 million, up 4% year-over-year. Total revenue was $121.2 million, up 17% year-over-year. International revenue grew 24% year-over-year. Non-GAAP gross margin was 76.7%, up from 73.4% in the prior year period. Non-GAAP operating expenses were $74.1 million compared to $68.6 million in the prior year period. Non-GAAP operating income was $18.9 million as compared to $7.6 million in the prior year period. Non-GAAP diluted EPS was $0.21 in the second quarter of fiscal 2025. Free cash flow was $25.2 million for the second quarter.

• Fiscal Q3 2025: SaaS revenue between $84M and $85M, total revenue $128.3M-$129.3M, non-GAAP operating income $18.5M-$19.5M, non-GAAP EPS $0.21-$0.23. - Full fiscal 2025: SaaS revenue $328.8M-$332.8M, total revenue $498.5M-$502.5M, non-GAAP operating income $7.2M-$74.2M, non-GAAP EPS $0.83-$0.87.

Q: Alexei Gogolev with JPMorgan asked about changes to guidance philosophy and demand.

A: John Hall said demand is good, AI is well-received, and David Morton echoed, stating prudent guidance with visibility.

Q: Parker Lane with Stifel asked about margin expansion.

A: David Morton said G&A optimization and services breakeven/positive contributed.

Q: Natalie Howe with Bank of America asked about partnerships and AI strategy.

A: John Hall said partnerships are core, Microsoft relationship is strategic, and AI applications are well-received.

Q: Terry Tillman with Truist Securities asked about Cloud ARR seasonality and on-prem to cloud conversions.

A: David Morton said seasonality exists, and John Hall discussed on-prem to cloud migration progress.

Q: Saket Kalia with Barclays asked about on-prem to cloud conversions and economics.

A: John Hall talked about migration program and David Morton mentioned nominal 20% upside on conversions.

Q: Steve Enders with Citi asked about go-to-market changes and FX impact.

A: John Hall said go-to-market changes are done, and David Morton said FX impact is immaterial.

Q: Alex Sklar with Raymond James asked about cloud NRR and DealCloud cross-sell.

A: David Morton said cross-sell/upsell opportunities are strong, and John Hall discussed large account cross-sell opportunity.

Q: Brian Schwartz with Oppenheimer & Company asked about linearity and deal sizes.

A: John Hall and David Morton discussed linearity and deal size variability due to large accounts.