Intapp is a cloud software company that serves customers in an overlooked market. The rise in Intapp stock has been due to its success with those firms.X
It used to use systems created in-house or cobbled together from small firms. They have largely turned down the customer relationship management and enterprise resource planning software.
John Hall said recently at the Raymond James 2023 Institutional Investors Conference that his company sells software to companies that makewidgets.
Private capital, investment banking, accounting, legal and consulting firms don't work with one-size-fits-all systems.
It was always a sign to me that they were building in-house because the traditional horizontal systems were not meeting their needs.
Intapp Stock Notches Record High
Intapp went public in June of 2021. After hitting a low a year later, it began its comeback.
Intapp stock hit a new high on Thursday.
The run-up in Intapp stock coincides with the company turning a profit on an adjusted basis. On sales, it earned a penny a share.
Intapp earned 3 cents a share on $82 million in sales. Intapp predicted that it will break even in the current quarter on sales of $82 million.
It guided to adjusted earnings of 4 cents a share for the full fiscal year, which ended on June 30. It lost 12 cents a share on $272 million in sales.
Focused On Profitable Growth
Intapp is focused on profitable growth according to Hall. He thinks the company's profitability will improve over time.
From here, we're going to march higher. The business has all of the hallmarks of a vertical industry cloud strategy.
Veeva is one of the successful businesses that focus on particular underserved end markets. All of the benefits of focusing on the market can be seen in our financials.
Intapp has more than 2200 clients. Private equity, investment banking, legal and accounting firms are included in the list. Its customers can be from 20 to 200,000.
Hall said they are excited about the chance to grow the business.
'Land And Expand' Strategy
He said that Intapp uses a "land and expand" approach to sales. Initially, it may get a customer with one set of applications and then sell them more sets later.
Products are sold in five areas. There are deal management, collaboration and content, marketing and business development, risk and compliance, and operations and finance.
If a client buys everything that we sell on our platform, that's a $1 billion opportunity for the company.
The firm is helping its customers move their operations to the internet cloud. Demand for cloud-based software increased as a result of the Covid Pandemic.
Hall said that when people had to work from home, they couldn't get access to the software they developed in-house. They decided to move to the cloud quickly.
Intapp got a boost from its partnership with Microsoft.
Intapp Stock Gets Buy Rating On Growth Potential
After the company's appearance at his firm's conference, Alexander Sklar maintained his outperform rating on Intapp stock.
"We continue to believe the durability of Intapp's growth remains underappreciated," Sklar said in a note to clients. Intapp has a sizable installed base to which it can upsell additional software sets, he said.
The total professional and financial services software market is $24 billion. It wants to increase its market opportunity by adding new applications.
Intapp has completed eight acquisitions in the last decade.
Embedding Artificial Intelligence In Software
Intapp's software can help customers be more productive. It has embedded artificial intelligence in most of its products.
There's a big part to what we do. A lot of what these firms are trying to do is to understand a large amount of information from the outside world. Artificial intelligence has always been a part of our strategy.
Intapp stock is on a list of tech leaders. It has a rating of 99 out of a possible 100. Intapp is the top stock in the Computer Software- Financial industry group.
The stock of Intapp is on the list.
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