On Tuesday, Oppenheimer maintained its Perform rating for Intapp, Inc (NASDAQ: INTA) shares, following the company's financial results for the first quarter. Intapp surpassed consensus estimates, prompting management to raise its fiscal year 2025 guidance.
The company's robust performance in the top line translated into a notable increase in earnings per share (EPS), and the company is now aiming for mid-to-high 20% growth in SaaS revenue for FY2025.
The company's strong SaaS revenue growth and operational leverage were highlighted as positive outcomes. Additionally, Intapp's management expressed confidence in the progress of its applied artificial intelligence products and the momentum of its partnership with Microsoft (NASDAQ:MSFT).
However, the firm noted a 35% year-over-year decrease in net new Annual Recurring Revenue (ARR) during the first quarter. This decline was attributed to a slowdown in large deal activity due to a sales realignment focusing on top accounts this fiscal year. Despite this, the magnitude of the revenue beat has moderated compared to recent quarters.
Despite the mixed results, Oppenheimer's analyst underscored the strength of Intapp's sustained SaaS revenue growth and operating leverage. The Perform rating reflects the company's current valuation, but the analyst believes that the fiscal year 2025 estimates appear less risky. Moreover, the firm commended management's effective navigation through challenging macroeconomic conditions, suggesting a stable outlook for Intapp.
In other recent news, Intapp has reported a strong fiscal first quarter performance for 2025. The company's emphasis on cloud solutions and advanced AI capabilities, including a partnership with Microsoft, has led to a 27% year-over-year increase in cloud Annual Recurring Revenue (ARR) to $309 million. This accounts for 74% of the total ARR of $417 million. The company's non-GAAP diluted EPS was reported at $0.21, and the free cash flow stood at $24.1 million.
Other key takeaways include a 30% increase in SaaS revenue, reaching $77 million, and a total revenue growth of 17% to $119 million. The company also reported an improved non-GAAP gross margin of 76.3%. Despite a deceleration in cloud ARR growth rate and a decrease in net new ARR, Intapp maintains a positive outlook.
Looking ahead, Intapp projects Q2 SaaS revenue between $79.5 million and $80.5 million, and full fiscal year SaaS revenue between $327.6 million and $331.6 million. These projections and recent developments reflect the company's strategic focus on cloud solutions and AI capabilities.
InvestingPro Insights
Intapp's recent financial performance, as highlighted in the article, aligns with several key metrics and insights from InvestingPro. The company's market capitalization stands at $3.87 billion, reflecting its significant presence in the software industry. Intapp's revenue growth of 22.7% over the last twelve months supports the article's mention of robust top-line performance and management's raised guidance for fiscal year 2025.
InvestingPro Tips provide additional context to Intapp's financial situation. One tip notes that "Net income is expected to grow this year," which corroborates the company's positive outlook and increased EPS mentioned in the article. Another relevant tip states that "6 analysts have revised their earnings upwards for the upcoming period," suggesting growing confidence in Intapp's financial trajectory.
It's worth noting that InvestingPro offers 8 additional tips for Intapp, providing a more comprehensive analysis for investors seeking deeper insights into the company's financial health and market position.
While the article discusses Intapp's strong SaaS revenue growth, it's important to consider that the company is "Trading at a high revenue valuation multiple," according to InvestingPro. This high valuation could explain Oppenheimer's cautious Perform rating despite the positive financial results.
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