Intapp, Inc.

Good day and thank you for standing by. Welcome to NTAP's fiscal first quarter 2025 webcast. At this time, all participants are in 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 will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 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. David, please go ahead.

Thank you. Welcome to INTAP Fiscal First Quarter 2025 Financial Results. On the call with me today are John Hall, Chairman and CEO of INTAP, and David Morton, 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 second quarter and full year of 2025. 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, including non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP diluted net income per share, and free cash flow. As a reminder, all of our financial figures we will discuss today are non-GAAP, except for revenue and revenue growth and total remaining performance obligations. Our financial results, along with reconciliations of GAAP to non-GAAP financial measures, can be found in today's earnings release and its supplemental financial tables. which is available on our website and as an exhibit to the Form 8K furnished with the SEC prior to this call, or a supplemental financial presentation, which is available on our website. With that, I'll hand the conversation over to John.

Thank you, David. Good afternoon, everyone. Thank you for joining us today as we share the results of our fiscal first quarter. Commencing our fourth fiscal year as a public company, I'm pleased to share that once again, We've achieved strong quarterly results supported by cloud ARR growth, new products, new partnerships, new logos, and expanded client accounts around the world. We also added new applied AI capabilities to our platform and furthered our strategic partnership with Microsoft. I'll share details on these select growth drivers throughout this call. In Q1, our cloud ARR grew to $309 million, up 27% year-over-year. Cloud now represents 74% of our total ARR of $417 million. In the quarter, we earned SAS revenue of $77 million, up 30% year-over-year. and total revenue of $119 million, up 17% year-over-year. Now, I'd like to share some highlights from our fiscal first quarter. I'll start with how we're executing on our vertical AI roadmap, specifically our continued applied AI innovation, its practical applications, and our increasing client adoption. First, we introduced two new AI-powered features for Intap Assist for DealCloud. As you may remember, Intap Assist brings generative AI to the daily work of professionals, helping them better apply their intelligence while driving speed and accuracy. Intap Assist now helps professionals make sourcing recommendations, to help professionals quickly identify ideal target companies aligned with firm strategy, such as ideal investment candidates. And Intap Assist now provides smart tagging to help professionals analyze and organize communications and meeting notes, making complex data easier to search and apply. We are excited that rising client adoption of Intap Assist for DealCloud is validating our applied AI strategy and its capability to drive tangible results and positive outcomes for our clients. For example, Serena Clay, Director of International Marketing and Communications at International Investment Bank DC Advisory said, I think a lot of the time what other companies are saying their AI tools can do can be quite performative. But I think the depth to which DealCloud has demonstrated commitment to it and also their thought process and roadmap for it has been really impressive. Second, we expanded the Intap Assist product brand by announcing the general availability of in-tap assist for terms. This new generative AI feature makes it easier for legal professionals to comply with client terms by giving them immediate answers to their questions about contractual terms right in Microsoft Teams. This significantly reduces the time and research needed to comply with outside counsel guidelines. and the firm's client and engagement letter commitments. And it's another example of how we reach professionals in the Microsoft apps they're already using every day, easing adoption and furthering their success. As Carly Numerick, Risk Counsel at Fredrickson and Byron said, our staff no longer have to go into Intep terms and search for the right document. or contact me with a question. Now, they're able to pull up Microsoft Teams and ask it terms questions, such as, what are my payment terms with this client? And Intap Assist provides the answer. It's a much more streamlined process. And we're excited to share that Intap Walls for Copilot is gaining traction in the market as more firms look to apply trusted AI. The solution helps professionals use Microsoft Co-Pilot AI in a secure, compliant manner while avoiding revealing protected information. We continue to see opportunity to expand our compliance footprint and help firms benefit from AI while adhering to their regulatory, ethical, and client commitments. As Tori Carrillo, the application manager from law firm Nelson Mullins told us, because we use in-tap walls to enforce access rules across our networks and applications, I can confidently point Microsoft Co-Pilot wherever we want. And Copilot will pull only from matters that the user has permission to access. These new AI features and capabilities are great examples of how our co-innovation with Microsoft is helping to propel our applied vertical AI strategy forward. Speaking of Microsoft, I'll now turn to partnerships. and share how we're expanding our robust partner ecosystem to drive growth. Microsoft continues to be one of our most prominent partners. We're proud to have launched fiscal 25 with renewed top tier and global ISV partner status with Microsoft based on strong joint go-to-market activity and co-sell success. we continue to grow the number and volume of transactions through the Azure Marketplace in Q1, applying to clients in all our verticals and for both land and expand deals. For example, this quarter, one of the world's largest multinational investment banks significantly increased its number of deal cloud seats for its capital formation team as it made the use of deal cloud mandatory for specific roles and approval processes. Next, Castles, Brock, and Blackwell, one of the largest business law firms in Canada, purchased Intap Conflicts from the Azure Marketplace to manage its conflicts clearance process, reputational risk, and adopt a solution that can scale with the firm's rapid growth. Additionally, Our updated partner program, launched a year ago, continues to attract new partners in our target markets. We now have 135 data, technology, and services partners in the program. We're also excited about another six partners who joined the program last quarter, five of which are DealCloud integration partners that bring additional data sets to our already robust platform. I'll turn now to Q1 wins and cloud migrations and share some examples of how we're continuing to grow our client base, expand with existing clients, migrate clients to the cloud and gain traction in new markets. First, I'm pleased to share that we're continuing to grow through the addition of new clients, including Crete PA. a private equity-backed network of accounting and professional services firms, which selected Intap Conflicts to centralize, systematize, and simplify the conflicts clearance process for its member firms. Next, a nationally recognized restructuring and financial advisory firm, which chose Intap Conflicts and Intap Intake to support its growth through acquisition. We chose these as illustrations of the growing need for compliance checking by accounting firms, as growth through private equity investment and acquisitions increase in that vertical. We see this trend as a significant growth area for Intech. And as we continue to win new clients across all our verticals, both domestically and internationally, here are some examples. In the US, a top-ranked venture capital firm focused on revolutionary technologies chose DealCloud for its robust CRM capabilities for investor tracking, investor reporting, and pipeline management. Next, internationally, TGS Baltic, a leading commercial law firm operating across the Baltic states, chose DealCloud to improve its client account program structure and effectiveness, drive cross-selling, and improve identification of new sales opportunities. Additionally, cross-selling and up-selling success in our existing accounts continue to drive strong net revenue retention. A few notable examples include national CPA and consulting firm forvis mazars which uses intap employee compliance to manage personal independence and recently expanded its relationship with intab the firm added deal cloud to now support its capital advisors team by leveraging ai to manage complex deals more efficiently next a multinational law firm and longtime user of our risk and compliance solutions chose DealCloud to support its private equity team. Next, a fast-growing business advisory interim management and investment banking firm increased its number of DealCloud seats by almost 400%. And moving on to cloud migrations, we had steady progress here as well this quarter, including AMLA 200 firm Honigman, which chose to migrate its four Intap compliant solutions to the cloud so it could gain access to the latest applied AI and streamline its internal processes. And finally, a New York-based AMLA 100 firm chose to migrate its instance of Intap time to the cloud, supporting its goals of achieving more compliant time and billing, more efficient and profitable matter management, and increased client satisfaction. In conclusion, we're proud of our strong performance in the first quarter and we're optimistic about our continued growth opportunities. As our Q1 performance has shown, we continue to grow by adding new capabilities to our platform and increasing our global and enterprise go-to-market reach. We see continued opportunities both to add new clients across a broad TAM and to deliver greater value by expanding within our existing client base. We're serving a durable end market with our subscription revenue model, industry specific cloud platform and applied AI and compliance capabilities. We have a great growth opportunity to drive AI, cloud adoption and modernization across all the industries we serve. As always, I'd like to thank our clients, our partners, our investors, our board, and our global Intap team for their teamwork and dedication. Thank you all very much.