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01/10 20:32
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call indicates strong SaaS and total revenue growth, optimistic guidance, and a strategic partnership with Microsoft. Despite some volatility in billings and conservative full-year guidance, the focus on AI, cloud adoption, and shareholder returns suggests a positive outlook. With a market cap of around $2.65 billion, the stock is likely to experience a moderate positive reaction, falling within the 2% to 8% range.
Cloud ARR $401 million, up 30% year-over-year. Growth driven by expanded enterprise wallet share across vertical markets and transition of client spend to the cloud.
Total ARR $504 million, with cloud representing 80% of total ARR.
SaaS Revenue $98 million, up 27% year-over-year. Growth driven by new client acquisitions, contract expansions, and migrations from on-premise products to the cloud.
Total Revenue $139 million, up 17% year-over-year. Growth primarily driven by strong demand for cloud solutions.
License Revenue $29.2 million, up 2% year-over-year. Growth attributed to steady legal client growth and migration toward cloud offerings.
Professional Services Revenue $12.3 million, down 8% year-over-year. Decline due to prioritization of long-term cloud growth and efficient implementation practices by partner ecosystem.
Non-GAAP Gross Margin 77.7%, up from 76.3% a year ago. Improvement due to mix shift in cloud efficiency gains.
Non-GAAP Operating Expenses $87.1 million, compared to $75.6 million in the prior year period. Increase due to go-to-market spend, sales kickoff, targeted marketing initiatives, and product-led growth strategy investments.
Non-GAAP Operating Income $20.9 million, up from $15.1 million in Q1 of last year. Growth attributed to strong demand and operational efficiency.
Non-GAAP Diluted EPS $0.24, compared to $0.21 in the prior year period.
Free Cash Flow $13.2 million for the quarter. Defined as cash flow from operations less capital expenditures.
Cash and Cash Equivalents $273.4 million at the end of the quarter, reflecting a $50 million share repurchase.
Total RPO $715.2 million, up 30% year-over-year.
Cloud Net Revenue Retention Rate 121%, demonstrating strong retention and upsell/cross-sell expansion among existing cloud clients.
Clients with ARR of at least $100,000 813 clients, up from 707 in the previous year. These clients now comprise approximately 30% of total clients.
Intapp Time: A significant new release with GenAI capabilities for faster, easier, and more accurate timekeeping. Features include monitoring workdays, validating entries, suggesting corrections, and AI chat experience. Over 100 clients and prospects attended the introductory webinar, and 200+ meetings were booked post-launch.
DealCloud with Agentic AI: Starwood Capital Group added this capability for a 360-degree view of investments and portfolio management through a modern AI chat interface.
DealCloud adoption: Alpaca Real Estate showcased DealCloud as a competitive advantage for real asset investors, highlighting its role in workflows, analytics, and data.
Partner Ecosystem Expansion: Lexsoft joined the network to drive growth in the legal vertical in Latin America and Spanish-speaking markets. Microsoft remains a major growth driver, contributing to over half of the top 10 largest Q1 wins.
New Market Traction: Growth in legal, accounting, consulting, and financial services verticals. Examples include law firms consolidating and adopting enterprise-class technology, and financial firms replacing legacy systems with Intapp solutions.
Cloud ARR Growth: Cloud ARR reached $401 million, a 30% year-over-year increase, now representing 80% of total ARR.
Revenue Growth: SaaS revenue grew 27% year-over-year to $98 million, and total revenue increased 17% year-over-year to $139 million.
Operational Efficiency: Non-GAAP gross margin improved to 77.7% from 76.3% year-over-year, driven by cloud efficiency gains.
AI and Cloud Strategy: Focus on vertical applied AI and cloud adoption, with strong progress in AI SKU ACV growth and attach rates.
Share Repurchase Program: $50 million worth of shares repurchased in Q1, reflecting confidence in long-term business value.
Regulatory Compliance: The company emphasizes the importance of maintaining compliance with complex industry regulations, which could pose challenges if not managed effectively.
Cloud Migration: The ongoing transition of clients from on-premise products to cloud solutions presents operational and technical challenges.
Partner Ecosystem: The reliance on a partner ecosystem for co-sell execution and client delivery could lead to risks if partner performance or alignment falters.
Market Expansion: Efforts to expand into new geographic markets and verticals may face challenges related to local market dynamics and competition.
Client Retention and Upselling: The company's growth strategy heavily depends on retaining existing clients and upselling additional solutions, which could be impacted by client satisfaction or competitive pressures.
Economic Uncertainty: Broader economic uncertainties could affect client budgets and willingness to invest in new technologies.
AI and Technology Adoption: The push for AI and technology adoption may face resistance or slower uptake among clients, impacting growth projections.
SaaS Revenue (Q2 FY 2026): Expected to be between $100 million and $101 million.
Total Revenue (Q2 FY 2026): Expected to range from $137.6 million to $138.6 million.
Non-GAAP Operating Income (Q2 FY 2026): Projected to be between $21.4 million and $22.4 million.
Non-GAAP EPS (Q2 FY 2026): Anticipated to range from $0.25 to $0.27, based on approximately 84 million diluted shares.
SaaS Revenue (Full Year FY 2026): Forecasted to be between $412 million and $416 million.
Total Revenue (Full Year FY 2026): Expected to range from $569.3 million to $573.3 million.
Non-GAAP Operating Income (Full Year FY 2026): Projected to be between $97.7 million and $101.7 million.
Non-GAAP EPS (Full Year FY 2026): Anticipated to range from $1.15 to $1.19, based on approximately 85 million diluted shares.
Share Repurchase Program: As announced in August, our Board authorized $150 million share repurchase program. During the first quarter, we repurchased $50 million or approximately 1.1 million shares, reflecting our confidence in long-term value of the business while maintaining a strong balance sheet.
The earnings call indicates strong SaaS and total revenue growth, optimistic guidance, and a strategic partnership with Microsoft. Despite some volatility in billings and conservative full-year guidance, the focus on AI, cloud adoption, and shareholder returns suggests a positive outlook. With a market cap of around $2.65 billion, the stock is likely to experience a moderate positive reaction, falling within the 2% to 8% range.
The earnings call highlighted strong SaaS revenue growth, improved margins, and positive free cash flow. The Q&A session revealed optimism about partnerships and AI adoption, despite some uncertainty in guidance specifics. The market cap suggests a moderate reaction, leading to a positive stock price movement prediction.
The earnings call summary shows strong financial performance with significant growth in SaaS and cloud ARR, improved margins, and strong non-GAAP EPS. The optimistic guidance, particularly around cloud and AI adoption, suggests continued growth. Despite some regulatory and competitive risks, the Q&A reveals strong demand and enthusiasm for new products. The lack of a share repurchase program is a minor negative, but overall, the company's robust financial health and strategic initiatives, coupled with a market cap of $2.65 billion, indicate a likely positive stock price movement of 2% to 8%.
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