Intapp, Inc.

Hello, thank you for standing by and welcome to the INTAP first quarter fiscal year 2022 earnings conference call. At this time, all participants are in our listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1 on your telephone. Please be advised that today's conference may be recorded. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, Barry Hutton, Please go ahead.

Hello, everyone. I am Barry Hutton, Managing Director of the Blue Shirt Group. Welcome to NTAP's first quarter fiscal year 2022 earnings conference call. With me today are John Hall, CEO of NTAP, and Steve Robertson, the company's Chief Financial Officer. During the course of this conference call, we may make forward-looking statements regarding trends, strategies, and the anticipated performance of our business. These forward-looking statements are based on management's current views and expectations, entail certain assumptions made as of today's date, and are subject to various risks and uncertainties described in our FCC filing and other publicly available documents, including those related to the impacts of COVID-19 on our business, the financial services industry, and global economic conditions. INTAP disclaims any obligation to update or revise any forward-looking statements. Further, on today's call, we will also discuss certain non-GAAP metrics, which we believe aid in the understanding of our financial results. A reconciliation to comparable GAAP metrics can be found in today's earnings release, which is available on our website and as an exhibit to the form 8K furnished with the SEC prior to this call. With that, I'll hand the conversation over to John.

Thanks very much, Barry. Good afternoon, everybody. Thank you all for joining us today. Shortly after our IPO was completed, we held our first public conference call with you. In that call, I provided an overview of Intap's unique vertical industry cloud strategy targeting the global professional and financial services industry. We provided an overview of our market opportunity, our client base, our technology solution, our founder-led team, and our recurring revenue model. and outlined our mission to enable professional and financial services firms to better connect their people, processes, and data to our AI-powered software solutions. At that time, we reported solid results for our fiscal year, which ended in June. Today, we will discuss our fiscal first quarter, which ended September 30th. This quarter, we continue to see good demand from our target markets, and we executed our business plan with consistency. we had a strong start to our fiscal year, and we made excellent progress along our path to better serve our clients. Our cloud-based offering is the foundation of our recurring revenue business model. So our key business metric is cloud ARR, which grew 56% to $125 million. That now represents 55% of our total ARR, which grew by 27%, to reach $229 million. In Q1, we earned SAS and support revenue of $43.5 million, up 31% year over year, and total revenue of $62.2 million, up 29% year over year. And we now serve more than 1,950 premier firms in more than 40 countries. As we execute our go-to-market, it's clear that our cloud strategy is working. On the whole, firms in our target markets are now moving to cloud-first strategies of their own, preferring cloud-based offerings as they acquire new technology. They're doing so for many reasons, including the need to provide exceptional differentiated experiences for their clients. In order to best serve their clients, our clients require solutions that are purpose-built for their very unique business model. Today, I want to take a deeper dive into the clients that we serve and specifically why Intap is uniquely positioned to meet their needs. Firms in the professional and financial services industry share common needs that are different from the traditional corporations. Our clients are organized and operate in the model of partnerships with multiple investment strategy teams or advisory practice areas or service lines made up of expert practitioners across many fields of expertise. To be successful with modern cloud technology, these firms require very specific purpose-built technology solutions designed by a company with the understanding and the experience to match their partnership-oriented business model. Over our history as a bootstrap private company, Intap focused specifically on this industry for 20 years. Today, as a newly emerging public company, every layer of our portfolio, from our industry graph data model to our knowledge-oriented applied AI to our low-code configurable user experience system has been designed to enable a set of specific use cases that are unique to the way that partner-led, knowledge-based firms do business. This is totally different from traditional B2B, CRM, and ERP software, which at its core was built and intended for product-centric organizations. But financial and professional services firms aren't making and selling widgets. They're capitalizing on and selling their knowledge and expertise. Their ability to win new business and serve their clients hinges on identifying and leveraging the network of professional relationships, their significant portfolio of expertise, and their depth of previous experience, both as individual professionals, but also as a collaborative firm of many experienced professionals working together in teams. These firms differentiate by identifying and applying their unique expertise and experience as a team to each opportunity, client, or deal. Traditional CRM and ERP systems are not designed to address environments with this type of knowledge and experience-oriented complexity across teams of professionals. That gap in the traditional systems has always resulted in relatively low professional user adoption for the firms that have tried to implement them. In contrast, we built our platform by working with these firms for over 20 years. to develop specific knowledge-based use cases in each area of expertise. Areas like fund formation, M&A transactions, corporate finance, private credit, restructuring deals, intellectual property protection and litigation, and real estate. As well as the very complex compliance and conflict issues, that arise for the global multi-strategy firms who participate across these regulated areas of the financial and commercial economy. Our solution captures, analyzes, and provides critical expert information while the firm's professionals work. Using our applied AI, including our recent relationship intelligence release, Our cloud platform can serve up data and predictive information about relationships, deals, counterparties, clients, matters, engagements, and opportunities, accelerating the firm's ability to select and onboard new business in a compliant way and to deliver value throughout the relationship and project life cycles. At the highest level, our cloud platform allows firms to institutionalize and leverage their specialized knowledge and their expertise and experience as a team to gain a greater competitive edge. Okay, let me turn to some examples of some of our clients who are gaining this advantage with us. Greenhill & Company, a New York-based independent investment bank, is an example of a firm who experienced the limitations of traditional technology solutions when attempting to apply them for their financial services business model. Greenhill's success relies on the way that its bankers leverage their transactional expertise across the many industries and geographies that the firm serves. To that end, it has built a very collaborative culture centered around close coordination of expertise among professionals regardless of geography or team, Because it had a large dispersed workforce, the firm struggled to share knowledge and information about deals in real time. Greenhill was using a combination of spreadsheets and a traditional CRM to try to track and manage deals. But neither solution allowed for the effective sharing of data across multiple teams and locations. Firm leadership decided it was time for a purpose-built cloud-based solution that could successfully enable its bankers to collaborate and gain better access to the data needed to pursue deals. Greenhill selected our DealCloud solution earlier this year. Using DealCloud, the firm will replace multiple disparate data sources with a single source of truth. The software provides a centralized repository to share institutional knowledge and to harness and share collective expertise across the firm. Regulation and compliance are also key requirements for our market. Solutions that embed compliance capabilities directly in the professional workflow are critical for our clients and for this industry as a whole. Our professional and regulatory compliance capabilities are a great example of what it means for our platform to be truly purpose-built for these industries. One key area that drives compliance requirements is the way that these firms onboard new business. In most cases, new business must go through a due diligence process, including screening for a host of potential conflicts and other risks. Many professionals in the industry have become our clients after they discover the hard way that opportunities for lucrative new projects can be won or lost based frustratingly on the firm's ability or inability to get through conflicts and compliance clearance faster than the competition. Unlike traditional CRM or ERP, InCAP's platform understands these risks and compliance requirements and has been purpose-built from the ground up to ensure compliance while accelerating the firm's and each professional's ability to win new business competitively. Building on the same firm knowledge and experience graph data embedded in the Intac platform, we leverage applied AI to speed compliance analysis and clearance so the firms can onboard new business quickly and with lower compliance risk and beat the competition to saying yes to a new client. A great example of the need for purpose-built compliance capabilities comes from one of our clients, a leading UK-based law firm. The firm's professionals are under constant pressure from the firm's leadership and their international growth ambitions, as well as shifting client expectations, rising transaction volumes, and a stringent regulatory regime. To help its professionals better compete in their sophisticated market, the firm sought to improve its entire approach to project due diligence and screening, new and existing business for compliance risk. As we frequently see, The firm's existing conflicts clearance and business acceptance process had developed slowly over many years. It was labor intensive, disjointed, and highly manual. It required several FTEs working across a half dozen disparate IT systems just to move potential business through due diligence and the ethical and regulatory conflicts checks and intake processes that the firm faced. The entire approach was inefficient, error prone, and impossible to scale as the firm grew and took on more and more new business. The firm sought out a modern, cloud-first approach to adopting consistent and automated due diligence practices and risk management processes across the firm. To meet this need, they selected Intep's OnePlace software to enable the full workflow associated with onboarding risk and compliance. Using our applied AI, including machine learning and predictive analytics, the software comprehensively scans multiple internal firm experience databases and third-party market data sources to significantly reduce the time it takes to conduct conflicts checks and accept new business. Using OnePlace, the firm standardized conflicts checking within a single system that not only modernized the process but significantly improved the client experience during the business acceptance phase. They reduced exposure to ethical and regulatory risk and increased staff efficiency, enabling the shifting of staff resources to other valuable business projects. And they improved the firm's competitiveness and ability to respond successfully and timely to lucrative new opportunities, helping to accelerate the firm's market share gains. These are just two examples, but they illustrate just how specialized these markets are. and also help to explain why these firms have been so historically underserved by traditional CRM and ERP technology that were never intended to support their differentiated professional partnership style operating models. It's always been part of INTAP's DNA though. Right back to our founders who are still leading the organization today, to build our platform from the ground up to meet these specific issues faced by these premier financial and professional services firms. Our unique history, understanding, and experience with these firms is the core reason that we are so well positioned to continue growing and winning business in these highly attractive vertical markets as their move to the cloud accelerates. In summary, we continue to see strong momentum in our overall business and particularly strong growth in cloud ARR as our markets continue to embrace digital transformation and move to the cloud. We are making the investments needed in our products and our go-to-market to lead our clients through this transformation. We believe the industries that we serve will be significantly aided in their business by the move to our purpose-built cloud platform. Finally, As our land and expand strategy rolls forward, our solutions become more and more integral and integrated into our clients' business operations, making Intap a critical, increasingly strategic, and long-term partner. We are building a sticky, reliable revenue base in a differentiated market with a large growth opportunity for us as we execute our strategies. I'll now turn it over to our CFO, Steve Robertson, to provide you some more details about our quarter's performance.