Intapp (INTA) Nails It
Intapp (INTA) reported another very solid result with Q2 fiscal 2023 results out after the closing bell yesterday. Revenue of $84.7 was up 31% and beat by $4.3 million while EPS of $0.03 improved from $0.00 a year ago and beat estimates by $0.06. SaaS (subscription) revenue was $61.6 million (+31%).
Total annual recurring revenue (ARR) was $301.3 million (+26%) while cloud ARR was $191.8 million (+42%) and now makes up 64% of total ARR. While there was no growth in net new customers, Intapp has continued to do a great job upselling and cross-selling solutions to drive growth in average revenue per user (ARPU). Management boosted its target range for trailing twelve-month net revenue retention by 3%, to a range of 113% to 117%. It was in that range this quarter.
The company ended the quarter with $51.6 million in cash and cash equivalents, up slightly from $50.8 million as positive cash from operations was offset by contingent payments related to the Repstor acquisition. Cash from operations over the last six months is $13.3 million, up from $6.5 million in the proceeding six months.
Management updated guidance for fiscal 2023 with the low end of revenue guidance slightly above consensus and EPS guidance nicely above consensus. They’re calling for revenue of $340.5 - $344.5 million (+25.8%) versus consensus of $340 million and adjusted EPS of $0.02 to $0.06 versus consensus of -$0.02.
Intapp is doing very well despite a tough economy. This sets it apart from many software companies. Margins are expanding due to careful expense management and the company achieved record ARPU of $38.5, the fifth consecutive quarter of growth. Bottom line – once a client signs with Intapp they stay and increase their spend. That’s good.
This was a good quarter. Overnight I’ve seen price target increases form JPMorgan (from 29 to 34), Bank of America (from 35 to 37) and Piper Sandler (from 26 to 34). INTA stock closed yesterday at 28.4. BUY
