Key Highlights

  • INTA shares are indicated down 17.26% at $35.54 in premarket, against a prior close of $42.95.
  • Fiscal Q1 adjusted EPS of $0.44 beat the $0.40 consensus, and revenue of $161.3 million rose 16%.
  • Q2 guidance for EPS of $0.37 to $0.39 and revenue of $158.8 million to $159.8 million sits below consensus of $0.40 and $160.9 million.
  • Cloud ARR rose 28% to $515.3 million, and cloud net revenue retention was 123%.
  • Celeste, the company's AI product, now makes up more than 40% of net new bookings.

Intapp (NASDAQ:INTA) shares are indicated down 17.26% at $35.54 in premarket after the vertical software provider paired a fiscal first-quarter beat with a second-quarter outlook that fell short. Adjusted EPS of $0.44 topped the $0.40 consensus, and revenue of $161.3 million, up 16%, cleared the $159.6 million estimate. Shares closed Tuesday at $42.95, down 8.91%, ahead of the report.

Intapp, headquartered in Palo Alto, California, sells cloud-based, AI-powered software to professional and financial services firms, including private capital, investment banking, legal, accounting, consulting and real assets firms. Its products include DealCloud, OnePlace and Assist AI tools, and it is led by Chairman and CEO John Hall.

Q2 Guide Disappoints Despite a Clean Print

Second-quarter guidance calls for subscription revenue of $129.1 million to $130.1 million, total revenue of $158.8 million to $159.8 million, non-GAAP operating income of $31.8 million to $32.8 million and adjusted EPS of $0.37 to $0.39. Consensus sat at $160.9 million and $0.40.

Management tied the sequential revenue decline to on-premise contracts shifting to the cloud. License revenue fell 21% to $23 million. Full-year guidance was raised, with adjusted EPS of $1.64 to $1.68, total revenue of $658.2 million to $662.2 million and subscription revenue of $530.5 million to $534.5 million.

Cloud and Celeste Drive the Core Numbers

Subscription revenue grew 29% to $125.5 million, accelerating from 27% in the prior quarter. Cloud ARR rose 28% to $515.3 million, now 85% of total ARR of $607.1 million, which grew 20%. Clients with $100,000 or more in ARR reached 908, and total remaining performance obligations rose 12% to $799.4 million.

Non-GAAP operating margin was 22%, up about 7 points, and free cash flow of $28.1 million more than doubled from a year earlier.

Celeste became generally available in July. It made up over 40% of net new bookings, and about 200 enterprise firms are running it. Management said demand is outpacing deployment capacity, and clients pay extra for Celeste-powered products.

Little Valuation Cushion Left

Analyst consensus is Hold with an average target near $39, so the stock had traded above that level before the report. The tech sector ETF is modestly higher, which points to a stock-specific move. The 52-week range runs from $19.01 to $48.19.