On Tuesday, Citi reaffirmed its Buy rating on Intapp, Inc (NASDAQ:INTA) with a steady price target of $50.00, following the company's release of favorable fourth-quarter fiscal year 2024 results. Intapp surpassed consensus estimates, with SaaS & Support revenue reporting an $0.8 million surplus, total revenue exceeding by $2.8 million, EBIT by $2.6 million, and EPS by $0.03. The company's total Annual Recurring Revenue (ARR) demonstrated robust growth at $404.2 million, marking a 22% year-over-year increase, with Cloud ARR seeing an even more significant rise of 33%.
The company's performance was further highlighted by billings that outpaced expectations at $139.5 million compared to the consensus of $138.6 million. Intapp also introduced an encouraging initial outlook for fiscal year 2025. The forecast for SaaS & Support revenue is set between $380.5 million and $384.5 million, just above the consensus prediction of $380.2 million, and representing a 21.1% year-over-year growth at the midpoint. Total revenue expectations range from $493 million to $497 million, versus a consensus of $494.7 million.
For earnings before interest and taxes (EBIT), Intapp projects a range of $56.5 million to $60.5 million, surpassing the consensus estimate of $52.1 million, and implying an 11.8% operating margin at the midpoint. The earnings per share (EPS) are anticipated to fall between $0.59 and $0.63, slightly ahead of the consensus forecast of $0.58. The company has also provided preliminary figures for the first quarter of fiscal year 2025, expecting SaaS & Support revenue of $89.5 million to $90.5 million, total revenue between $117.2 million and $118.2 million, and EBIT of $11 million to $12 million, all of which are in line or above consensus estimates.
Looking beyond these figures, the company is expected to discuss the impact of artificial intelligence, details on SaaS disclosures, and the effects of its partnership with Microsoft (NASDAQ:MSFT) during its commentary on the macro environment.
In other recent news, Intapp announced robust financial results for the fiscal third quarter of 2024, with total revenue reaching $110.6 million, marking a 20% year-over-year increase. The company's cloud Annual Recurring Revenue (ARR) grew to $274.2 million, making up 72% of total ARR, while SaaS and support revenue saw a 22% rise to $80.8 million. In the same period, Intapp unveiled new generative AI capabilities and completed strategic acquisitions, including Transform Data International (TDI).
Stifel maintained its Buy rating on Intapp, citing the company's new generative AI feature, Ask Intapp, which is part of Intapp Assist for Terms. However, Oppenheimer downgraded Intapp's stock from Outperform to Perform, citing concerns over increased competition and challenges within the AI industry. Both firms' analyses contribute to the evolving perspective on Intapp's growth potential.
Intapp's software was chosen by Argonaut Private Equity to automate the oversight of personal trading activities, aiming to simplify compliance and reduce time spent on manual processes. This development underscores Intapp's commitment to leveraging technology to meet the specific needs of professional service firms.
Looking ahead, Intapp projects Q4 SaaS and support revenue to be between $83.5 million and $84.5 million, and total revenue to range from $111 million to $112 million. For the full fiscal year 2024, the projections are $314.5 million to $315.5 million for SaaS and support revenue, and $427 million to $428 million for total revenue. These figures reflect the company's ongoing efforts to drive growth and operational efficiency in the professional services sector.
InvestingPro Insights
Intapp, Inc (NASDAQ:INTA) has shown a compelling picture of growth and potential in its recent financial results. To further understand the investment landscape of Intapp, InvestingPro provides a deeper dive into the company's financial health and market performance. With a market capitalization of $2.5 billion, Intapp is a significant player in its sector. Although the company has not been profitable in the last twelve months, analysts are optimistic about its prospects, predicting profitability within this year. This sentiment is backed by 10 analysts who have revised their earnings upwards for the upcoming period, indicating confidence in Intapp's growth trajectory.
The company's strong revenue growth of 23.81% over the last twelve months, as of Q3 2024, shows that it is expanding its market share and increasing its financial strength. Additionally, a significant gross profit margin of 69.87% suggests that Intapp is efficient in its operations, generating substantial profits from its revenues. Despite trading at a high Price / Book multiple of 6.47, which could signal that the stock is relatively expensive compared to its book value, the company holds more cash than debt, providing financial flexibility and stability.
Investors should note that Intapp does not pay a dividend, which may be a factor for those seeking regular income from their investments. However, the potential for capital appreciation could be appealing for growth-focused investors, especially considering the company's positive revenue trends and the analysts' earnings revisions. For those interested in a comprehensive analysis with additional insights, there are more InvestingPro Tips available for Intapp at InvestingPro.
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