Intapp, Inc.

Good day and thank you for standing by. Welcome to the NTAP fiscal second quarter 2023 webcast. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded I would now like to hand the conference over to your speaker today, David Trone, Senior Vice President, Investor Relations. Please go ahead.

Thank you. Welcome to INTAP's fiscal second quarter 2023 financial results. On the call with me today are John Hall, Chairman and CEO of INTAP, and Steve Robertson, 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, including guidance provided for our fiscal third quarter and full year 2023. 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, including those described in our SEC filings and other publicly available documents, that are difficult to predict and could cause actual results to differ materially from those expressed or implied by such forward-looking statements. CTAP disclaims any obligation to update or revise any forward-looking statements except as required by law. Further on today's call, we will also discuss certain non-GAAP metrics that 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 form an 8K furnished with the SEC prior to this call. With that, I'll hand the conversation over to John.

Thank you, David. Good afternoon, everyone. Thank you for being here with us today as we share our results for our second fiscal quarter. I'm pleased to share that once again, we've achieved strong quarterly results. supported by cloud ARR growth, SaaS and support revenue growth, the acquisition of new logos, and the continued growth of our existing client accounts. As an intro for any of you who may be new to our story, Intap targets an underserved and overlooked, but actually very large, $3 trillion industry of professional and financial services firms. Professionals in these firms are the investors and advisors who work in the world's private capital investing, investment banking, legal, accounting, and consulting firms. These professionals work in specialists and cross-specialty teams every day to support the global industry of deals and disputes. Most of our target firms are or were originally set up as partnerships, not corporations. As a result, they operate both internally and in their go-to-market model very differently from traditional corporations. And on top of this, our target firms are a highly regulated industry and need to manage a wide range of statutory professional ethics and client compliance obligations that are unique to them. Intep's Industry Cloud has been designed specifically for the unique operating and compliance needs of these firms. We are highly differentiated from traditional CRM and ERP systems, which were built for companies selling a tangible product. In contrast, our Industry Cloud understands that our clients' firm's business is based on leveraging their collective specialized knowledge, expertise, experience, and relationships to win business and to deliver value for their clients and investors. Our industry cloud helps these firms to increase their revenues and returns, operate more efficiently and profitably, manage risk and compliance more effectively, and leverage their collective knowledge for competitive advantage. Intep is leading cloud transformation for this global deal-making, legal, and advisory industry, and our strong Q2 results continue to validate our strategy. Okay, here's how we did. In our second quarter, our cloud ARR grew 42%. to $191.8 million. Cloud now represents 64% of our total ARR of $301.3 million, which is up 26% year over year. We earned second quarter SaaS and support revenue of $61.6 million, up 31% year-over-year, and total revenue of $84.7 million, also up 31% year-over-year. We now serve more than 2,200 premier firms across our target verticals. Despite the current climate of broader economic concerns, we continue to see steady demand for our purpose-built solutions in our Q2 results. We gained some direct insight into what's driving this steady demand at our two-day Intap City Tour event in New York in November. Our event was attended by clients from our private capital, investment banking, legal, accounting, and consulting firms, as well as our partners and industry experts. Participants had a chance to share and learn from each other about the challenges, opportunities, and initiatives that each of their firms is pursuing. Presenters included keynote speaker Luke Flemer, managing director at Goldman Sachs, Ian Clark, Managing Director and Global Chief Technology Officer at Lazard, Angie Goinega, Senior Investment Associate at Women's World Banking, and Jamie Fowler, Chief Transformation Officer at Grant Thornton, who shared their experiences creating efficiencies within their complex organizations, operating successfully in their highly regulated industry, and winning business. by leveraging their knowledge, intellectual capital, and relationships for competitive advantage. Many of our attending clients shared that they do not anticipate their digital transformation initiatives slowing down, even while facing an economic downturn. Instead, they see the increased capabilities and efficiency provided by the adoption of cloud technology as essential to enabling their firms to weather any challenging economic conditions. The event also included a dedicated day-long session attended by members of our large partner ecosystem, which plays a crucial role in our strategy to deliver optimal value to our clients. It featured a discussion between the Microsoft team and Intap's Chief Product Officer, Thad Jample, on innovation, and InTask Industry Cloud Strategy, which delivers a path for these firms as they pursue digital transformation. Their discussion underscored the importance of our strategic partnership with Microsoft, which continues to develop and mature. Last quarter, we were officially recognized as a top-tier partner of Microsoft, which fewer than 1% of partners ever achieve. Deployment of all our in-tap solutions to Azure is progressing in line with our plan as a key part of our partnership strategy. We worked with some of our new partners to advance our industry cloud and innovation roadmap in the quarter. We released our new relationship paths capability, which helps firms source and win new business by leveraging their current network of professional connections using applied AI to intelligently surface deeper paths to high value contacts. The feature helps professionals in our firms to source potential warm introductions by evaluating our partner Equilar's database of 1.5 million executives and board members. and combine that with the firm's own proprietary relationship information. Relationship Paths expands our relationship intelligence capabilities to enable higher quality outreach, to help professionals build new and deeper relationships, and to drive growth and greater success in winning new business. In the second quarter, we also integrated capabilities from our Buildstream acquisition to enhance our in-tap time solution. Together, these solutions help firms integrate compliance across time entry and pre-billing processes in a way that accelerates the work to collect cycle, as well as improving realization rates and driving profitability, which offer compelling hard ROI benefits for any firm in the current climate. Our clients who are embracing these operating efficiency features have also noted that the design of our solutions has an additional benefit of enhancing both the professionals and the clients' experience with the firm in the smoothness of the billing and collections program. We are also continuing to advance our industry cloud's compliance capabilities designed specifically for the regulated industry we serve. We further enhanced our market-leading walls product to allow for self-service by our professional users. Automated ethical walls and information barriers are a critical compliance requirement designed to protect sensitive client and investor information. Our enhanced lawyer portal for walls ensures that partners, lawyers, and associates can process critical ethical barrier requests in real time, removing potential bottlenecks and avoiding slowdowns in client onboarding processes, and firms' ability to respond rapidly to their clients' requests. Finally, demonstrating our ability not just to design, but to deliver our innovative solutions, in Q2, we went live with a number of large and notable client implementations. we celebrated go lives of DealCloud for the asset management arm of one of the world's leading investment banks, as well as a large global financial advisory and asset management firm, and go lives of our risk and compliance solutions in our industry cloud for one of the world's top strategy consulting firms. Notably, all three of those deals closed just in Q1, demonstrating our ability to shorten our time to value even on large or complex client implementations. Our rapid time to value enables our clients to operate more efficiently in the current climate, to manage regulatory compliance quickly, and to grow effectively. Our innovation was also recognized with several awards in the quarter, notably Our DealCloud solution was named as Best Deal Origination Technology in Private Equity Wire's U.S. Awards in October. And DealCloud also won Enterprise Product of the Year for the Financial Software category at the 2022 Best in Biz Awards in December. Both awards validate DealCloud's ability to support the unique and complex needs of dealmakers. helping them effectively and efficiently source and originate deals from any location. Turning now to notable client wins. We continue to add new logos, grow existing client accounts through upsell and cross-sell, and expand our international footprint. I'd like to highlight several of the new logos we acquired in our second quarter. In Q2, we welcomed global venture growth firm B Capital as a new client. Founded in 2015 and led by Howard Morgan, Sheila Patel, Eduardo Saverin, and Raj Ganguly, B Capital invests as an integrated team across nine locations in the US and Asia. They chose to shift from a legacy system to deal cloud across their deal, IR, operations, and business development teams. Because it possesses the robust data infrastructure, IR functionality, and reporting capabilities, B Capital needs to support the long-term growth of their business. European investment banking franchise, SEB, is another new client who selected DealCloud to replace its legacy system. Previously using a large horizontal CRM, SCB struggled from a lack of user adoption of the system, which wasn't tailored for the way its professionals work. Additionally, that CRM required a level of IT support that was impacting its ability to support other IT projects and initiatives that could drive growth. SCB chose DealCloud, because of its reputation as the market leader, the way our technology is tailored to the way the firm operates, its flexibility, and the fact that it will significantly reduce ongoing IT support requirements. They'll be implementing the software across M&A, leveraged finance and capital markets teams to improve connectivity and collaboration and better leverage data and institutional knowledge. Last quarter, we also continued to expand our footprint in the consulting industry with another new client win. A top global management consulting firm executed a multi-year contract for our risk and compliance solution, which enables the firm to better identify and process complex conflicts for use cases like M&A, bankruptcy, adverse parties, or conflicting relationships. While this is a new consulting firm logo for us, it's notable that many of the firm's professionals had previous experience with NTAP at other professional firms, including law firms in the industry. Their familiarity with our brand and their trust in our capabilities helped to speed the deal and illustrates how deal and disputes professionals' networks bring us referrals across the vertical industry we serve and supports our continued expansion and logo acquisition throughout this market. Finally, I'd like to highlight the recent addition of accounting business and wealth advisors, Preston Reeves, to our client portfolio. Based in the UK, Preston adopted Microsoft Office 365, to enable a secure, collaborative, modern work environment. They quickly realized their need to extend the platform's capabilities with solutions tailored to their unique needs as an accounting firm. Crescent selected our collaboration and content solutions to help maximize their Microsoft platform investment and to create a collaborative document management solution. To conclude, having reached the halfway point of our fiscal 23, we're pleased with our consistent growth and performance. We are pursuing a deep and underserved $24 billion global TAM. Our revenue model remains highly predictable, and our durable end market continues to demonstrate a strong commitment to investing in digital transformation despite the global economic uncertainty. We continue to add new clients and to grow existing client accounts, and we're continuing to pursue the significant growth opportunity ahead to help our industry embrace cloud transformation. Our purpose-built industry cloud platform has compelling value for our specialized clients, helping them to increase revenues and returns, operate more efficiently and profitably, manage risk and compliance more effectively, and leverage their collective knowledge for growing competitive advantage. As always, I'd like to thank our clients, our partners, our investors, our board, and our employees, whose teamwork and dedication led to our strong Q2 performance. Thank you all very much. Okay, Steve, over to you.