Intapp (INTA) Reports Q4 2023 and Guides Above Consensus for 2024
Intapp (INTA) delivered Q4 results after the close yesterday that beat expectations. Revenue grew 25.3% to $94.6 million, beating by $1.5 million while EPS of $0.04 was up from -$0.04 in Q4 last year and beat by $0.03.
Based on management’s guidance for 2024, revenue is expected to grow around 20% to $421 million (analysts had expected $402 million) and EPS should be around $0.22 (analysts had been expecting $0.18).
Stepping back, we see that revenue growth is coming down while profitability and cash flow are going up. This isn’t unusual. As companies scale, they get to a point where they just can’t keep growing the top line at the same pace. But with size and leverage they spread costs out more and can turn up the profit dial.
In Q4 Intapp’s cash flow from operations was $27.5 million, a full $7.5 million more than analysts expected.
The company is also making progress landing larger clients. Intapp added 29 net new clients (for a total of 603) with over $100,00 in annual recurring revenue (ARR) and 53 new clients with over $1 million in ARR (as compared to 42 last year).
The stock took it on the chin early this morning, but the buying has been steady throughout the day. For now, we’ll stick with INTA and lean into buying this dip. But I’ll certainly be keeping a close eye on it. Worth mentioning, JPMorgan increased its price target from 40 to 45 today (stock currently at 35) while BofA keeps theirs at 50. BUY