Intapp, Inc.

Hello, and welcome to NTAP fiscal fourth quarter and year-end 2023 financial results conference call. 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 the question during this session, you will need to press star 11 on your telephone, and you will hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. I would now like to hand the conference over to David Trone. Sir, you may begin.

Thank you. Welcome to NTAP's fiscal fourth quarter and year-end 2023 financial results. On the call with me today are John Hall, Chairman and CEO of NTAP, and David Morton, CFO. 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 first quarter and full year 2024. 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. NTAP 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 the Form 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 joining us. We're pleased to be here with you to share the results of our fiscal fourth quarter and full year fiscal 2023. I'm happy to say that we had another strong year with great results across the business, including cloud ARR growth of 36% year over year. We added new clients through existing accounts, expanded our larger enterprise clients, and expanded our geographic footprint. We also released new applied AI capabilities to our platform, enhanced our product portfolio through organic development and strategic acquisition, and delivered our first profitable year. As I've shared before, Intap serves the overlooked and technologically underserved professional and financial services industry, which we believe has a software TAM of approximately $24 billion. Our target industry includes the world's private capital, investment banking, legal, accounting, and consulting firms, we deliver applied AI in a purpose-built industry cloud platform that is highly differentiated from traditional CRM and ERP systems. Our industry cloud platform is purpose-built specifically for this industry. Our platform provides a unique data architecture that matches the partnership model and operations of these firms. and correctly enables each professional's highly specialized market knowledge and expertise. And it provides specialized compliance capabilities that match the complex requirements of this highly regulated industry. Intap solutions help clients increase revenues and returns, to operate more efficiently and profitably, to manage risk and compliance more effectively, and to leverage their collective knowledge for competitive advantage. Looking at our results for Q4 and for fiscal year 23, it's clear that our value proposition is resonating and the demand for our solutions remains steady. As I noted earlier, in Q4, our cloud ARR grew 36% year over year to $222 million. Cloud now represents 67% of our total ARR of $330 million. In the quarter, we earned SaaS and support revenue of $68 million, up 29% year-over-year, and total revenue of $95 million, up 25% year-over-year. Additionally, we now have 53 accounts with ARR of more than $1 million, a year-over-year increase of 29%. and delivering on complex global requirements, as well as consistently adding mid-sized firms across the market. This gives us confidence in our cloud platform and applied AI strategy to meet the needs of both the broad market and the highest levels of our market. And fiscal year 23 was our first profitable year, in which we maintained strong revenue growth. We're entering fiscal year 24 with optimism and momentum. Before I run through key highlights from fiscal year 23, I'd like to take a moment to thank and recognize INTAP's outgoing CFO, Steve Robertson, and to welcome David Morton, who joined us as CFO in August. Many of you have had the pleasure of meeting Steve, whom I've been fortunate to work with for the past eight years. I'm grateful for his essential leadership in preparing to bring INTAP public and introducing us to the public markets. Steve is graciously staying on for a time in an advisory position to ensure a seamless transition. He is working closely with David, who joins us most recently from his role as CFO of DigiCert. and who brings to Intap a long track record of leading companies through periods of growth, as well as significant strategic capital markets and operational experience. I hope you'll join me in congratulating Steve on his well-deserved retirement and in welcoming Dave to his first Intap earnings call. Thank you very much, Steve. And we're excited to have you, Dave. Welcome aboard. Okay. Now I'll share a few highlights from Intep's fiscal year 2023. I'll start with innovation, which continued to fuel our growth this year. As I previously shared, Intep's industry cloud is designed specifically for the unique operating and compliance needs of professional and financial services firms. Our cloud solutions were built for the way these firms operate. Their business model focuses on leveraging the partnership's collective specialized knowledge, expertise, experience, and relationships to win business and deliver value for their clients and investors. As well, our industry cloud features a robust set of applied AI capabilities that meet the specific needs and unique challenges of our client firms. Advances in generative AI have received a fair share of attention over the past year, but it's important to note that Intap's applied AI strategy predates the current buzz. with a series of applied AI technologies like automated time capture, AI-assisted conflicts checking, and self-maintaining contacts going back as far as a decade and in wide use across our client base today. In fiscal year 23, we continued to advance our applied AI portfolio, releasing new capabilities to consistently grow our value for our clients. We continue to enhance our relationship intelligence capabilities within the deal cloud solution throughout the year. We released our new relationship paths capability, which leverages applied AI to help professionals identify the optimal referral pathways to high value contacts across the firm's network, as well as through third party executive and board data provided by our partners. The new capability enables higher quality outreach that helps their clients to drive growth and greater success in winning new business. Already, more than 250 firms are transforming how they engage with their clients and develop new business using our applied AI relationship intelligence tools. As just one example, a leading law firm said it helps them to resurrect business with a former client. Our list of adopters includes some of our largest clients who see significant value in unlocking the full business potential of their organization's professional network using Intep's Applied AI. In Q3, we augmented our Applied AI email signature parsing engine, which leverages large language models to automatically populate and maintain key contact data to work across multiple languages. This new applied AI capability helps us to meet the growing needs of our international clients, extending our global opportunity. One of our largest law firm clients with thousands of partners is now using this feature across their global firm in eight languages. In Q4, we also enhanced the compliance features in our applied AI relationship intelligence system to further protect clients working on sensitive engagements with high confidentiality requirements the feature will give clients the ability to fully leverage their strongest relationships maintain contact data and promote alignment with their partners work all while complying with complex information governance regulations additionally We expanded Applied AI within our risk and compliance solution this year. We released a new vendor terms feature which eliminates manual effort and improves data quality versus manually entering and tracking vendor agreements via spreadsheet. This is a great example of Applied AI not only eliminating manual tasks, but also adding value in the form of proactive risk mitigation and enhanced client experience. An NLAW 200 client using vendor terms told us they have seen a 30% improvement in the efficiency of their vendor process, saving the firm time and money while lowering risk. And in Q4, we expanded our compliance applied AI to identify potential conflicts earlier in the business development cycle at the opportunity level. Our new early stage alerts help accelerate conflicts decision making and allow firms to focus resources on the right deals. Turning to our partner ecosystem, I'm pleased to share that our partnership with Microsoft continues to evolve and grow. During fiscal year 23, we released new products and capabilities that increase the value our clients derive from the Microsoft tools that their professionals rely on every day. For instance, Intap collaboration and content solutions now enable firms to securely share documents with their clients via Microsoft Teams while meeting stringent compliance requirements. Additionally, our DealCloud solution now features new capabilities using both Microsoft's Azure OpenAI GPT-LLM and embedded document management and collaboration, which seamlessly integrates Microsoft 365 capabilities into DealMaker's primary deal and client management workflow. And further, our operations and finance solution can now automatically capture usage of teams to help timekeepers pre-populate their timesheets, which advances our zero entry strategy and incorporates Microsoft 365 productivity tools directly into firm specialized operational workflows. This year, Intap was officially recognized as a top-tier partner of Microsoft, which fewer than 1% of partners ever achieve. Additionally, in March, our two organizations co-hosted an interactive two-day summit at Microsoft headquarters in Redmond that drew CIOs from the world's top law firms. Last quarter, Intap completed deployment of all of our solutions to Azure as part of our Microsoft partnership strategy, And in Q4, Intap Solutions became available to clients on the Microsoft Azure Marketplace. This new milestone enables professional and financial services firms to more easily discover, purchase, and deploy Intap Solutions. As one example, in Q4, PSP Investments, one of Canada's largest pension investors, selected DealCloud over a large horizontal CRM competitor to manage deals across their global investment teams. PSP also purchased our content and collaboration solution to extend integration, increase productivity, and better leverage its Microsoft investment. This deal is a great example of the way our Microsoft partnership adds outsized value for our clients. Intap solutions available via the Azure Marketplace simplify the purchasing process, and allow PSP to utilize some of their pre-committed spend as part of their existing Microsoft Azure agreement to acquire Intaps technology. We also expanded our partner ecosystem further during the year, including several new third-party data sources. In the professional financial services industry, access to embedded market data, coupled with a client's own experiential data, is key. to generating the best possible information for investment and client selection and growth. In fiscal year 23, we integrated more relationship mapping data with new partners like Equilar and Bordex. We brought in critical property-level data for our corporate real estate clients with Cherry, and we expanded DealCloud's ability to support portfolio monitoring with Untap. I'll turn now to key deals and software implementations. We've continued to steadily grow our client base through cross-sell, up-sell, and the acquisition of new logos, including large enterprise clients. We ended our fiscal year serving more than 2,300 premier firms across our target verticals, with our strongest growth at the $100,000 and $1 million levels. Here are a few new logos that we added this year. In Q4, a large accounting firm based in Canada chose our risk and compliance solution to better manage firm-wide risk and improve internal workflows. We'll be replacing a legacy homegrown system as the needs of the firm grow. They wanted a cloud-based solution that leverages applied AI to better serve their partnerships. Additionally, we had a notable win in Q4 that combines a new logo and an upsell in one deal. Nexen Pruitt, a multi-specialty law firm and longtime Intep client, recently merged with U.S.-based firm Maynard, Cooper, and Gale. Leadership of the newly dubbed Maynard-Nexen saw the tremendous value and efficiencies that our solutions provided and chose to expand the use of Intep solutions across the merged firm. significantly increasing the number of licensed users. Mergers across professional services continue to be a driver of growth, given our ability to scale as a platform for our clients and help them consolidate their IT strategy. And to provide a few updates on some deals that we discussed in fiscal year 23. A top asset management arm of one of the largest investment banks replaced its horizontal CRM with DealCloud, Recently, they told us that our purpose-built solution is helping drive adoption far beyond what they ever achieved with their legacy CRM. A top global management consulting firm executed a multi-year contract for our risk and compliance solution. We delivered it in less than six months, showcasing our ability to apply best practices across our target markets. in this case, in consulting. In practice, a fully virtual law firm selected our conflict solutions delivered via the Microsoft Azure Cloud. This client now represents a new generation of professional firms, relying on a digital platform to run and grow the firm. And our cross-selling and up-selling success in our existing accounts continue to drive strong net revenue retention. For instance, This year, a large global financial advisory and asset management firm expanded its DealCloud licenses to their entire financial advisory group, which numbers in the thousands of users. The software was fully implemented, and new users were live in 90 days. This is a great example of how delivering client success on our initial sales can lead to large expansion across departments and use cases. One of the world's largest accounting firms and a current Intab client selected DealCloud for their corporate development team to foster more effective M&A. Delivering success here sets us up for future growth and new use cases across the firm. And an AMLAW top 25 ranked law firm chose to migrate their existing Intap operations and finance solution to the cloud and to purchase our risk and compliance solution and our new bill stream offering. This is a great example of the opportunity we have to expand our footprint as we migrate our existing clients to the cloud. Touching briefly on M&A, during fiscal year 23, we continued to add important technology capabilities to our cloud portfolio through acquisition. In Q4, Intap acquired Paragon Data Labs. Paragon's cloud-based software helps firms to track and monitor employee compliance. Elements like personal trading and political donations are centrally managed, so personal conflicts of interest or policy violations can be spotted and addressed. The product now marketed as Intep Employee Compliance enhances our existing risk and compliance solutions, which are all purpose-built for the unique regulatory compliance needs of our client firms. Already, the investment has proven to help differentiate us with further enhanced compliance capabilities for the regulated markets we serve. Interest in employee compliance is strong. and is bolstered by the evolving nature of the regulatory environment, including the PCAOB's recent proposal to strengthen auditor requirements to identify and remediate noncompliance. Recent wins include a global investment bank that will use the solution to automate previously manual workflows, and a large national accounting and advisory firm that will replace a homegrown solution with ours. to ensure compliance with independence requirements. This year, we also integrated capabilities from our fiscal year 22 build stream acquisition to enhance our Intap operations and finance solution. The broader solution integrates compliance across time entry and pre-billing processes in a way that accelerates the work to collect cycle, improving realization rates, and driving profitability. These are compelling, hard ROI benefits for any firm. We are pleased with the cross-selling we have seen as we grow the value provided to our client base. In conclusion, we're proud of our strong performance in fiscal year 23, and we're excited about our continued growth opportunity in fiscal year 24. We are serving a durable end market with our deeply differentiated industry cloud platform with an applied AI and compliance strategy. Our subscription revenue model is highly predictable, and we see continued opportunity both to add new clients across a broad TAM and to deliver greater value to expand significantly within our existing client base. we have a great growth opportunity to drive cloud and AI adoption and modernization across all these industries. As always, I'd like to thank our clients, our partners, our investors, our board, and our global Intap team, whose teamwork and dedication led to such a successful second year as a public company. Thank you all very much. Okay, now I'll turn things over to our CFO, David Morton. Dave?