All right. Good afternoon and welcome. My name is Doug Burrell and I have the pleasure of hosting CEO John Hall and CFO David Morton today from Intapp. We'll do about 25 minutes of prepared questions and save the final 10-15 minutes for Q&A from the audience. Thank you both very much for being here today. To start off, can you give us sort of a broad update on the business since you were here year ago, both from the product front as well as how you're viewing the sales environment? Sure. Thanks for having us Doug. We've continued to execute consistently. We are just finishing our 2nd year as a public company this quarter. We're kind of a new name to a lot of people, and it's exciting to meet everybody. The model is a land and expand model for the professional and financial services firms, the big partnership firms with a cloud software platform, and we're adding about 50 new clients a quarter. We ended with 2,250 this past quarter. We've made some good progress in the market. We've added some more capabilities to our flagship product, DealCloud, which is getting a lot of word of mouth across all the markets that we serve. We actually this year made a simplification decision in our branding. We simplified to just use DealCloud as our cloud brand across all the markets that we serve. That's mainly because we had inbound requests for DealCloud by name from even the law firms, the accounting firms. We were excited to be able to do that. We've done a lot of work on our Applied AI strategy. We've rolled out more solutions based on that system. Relationship Intelligence, one of the systems that helps our firms do coverage programs and drive revenue. It's been very popular. We integrated a couple of acquisitions in the last year. Repstor that we bought just before we went public, which helps us integrate with Microsoft Teams, and the whole Office 365 environment is one of them. Billstream was a system that we acquired a little while back that helps do more operational efficiency, type work for the clients. Two big partnerships that we had just signed when we got together last year, but Microsoft and KPMG both signed up as partners. We made a lot of progress in the past year with those two, and we can talk more about that. Great. Thank you for that intro. For those less familiar with your story, why would a customer choose Intapp over a more generalized CRM provider like Salesforce? We bootstrap financed the company. It's kind of unusual for a Silicon Valley company, but we did that by working directly with the CIOs, originally with the big law firms. One of the things we observed is that they were building a lot of their own software. I always took this as a sign, why are these firms building software when they have all of the CRM and ERP systems available to them? As we got to know the firms and started doing more and more for them, we came to appreciate that as good as the classic CRM and ERP systems are, they really are not built for this partnership form. All of the knowledge and expertise that the professionals in these firms have to manage and rely on to do their coverage and deal pursuits and deal execution. One of the key issues is the actual data model at the core of the classic CRM and ERP systems is very different. The classic systems are built to run a pipeline, selling widgets off of a price list, a bill of materials, the classic ideas for how you run a corporate model. For the partnership firms, they don't do that at all. They participate in these large auctions. They may be bidders, or they may be advisors to some of the bidders on auctions. They generate a lot of expertise in that. Then the next day, the same group of participants can be configured in a completely different way, working together on a different deal and the next day and the next day. The knowledge base that you're trying to build up in one of these large professional financial services firms is entirely different from a classic CRM or ERP system. At the core of our platform, we have the Industry Graph Data Model that we started when we were very small, and on top of that, a strong compliance capability. A lot of the differentiation for what we're doing is compliance for this regulated industry. We kinda take as our inspiration Veeva, which is in a different end market, obviously, but similarly an industry cloud for a highly regulated end market that is highly differentiated from the classic horizontal systems. People see our system from the market and say, "Oh, this one was built for us," and that's the story. Great. Thank you. Broadly speaking, what events over the past year, whether they're, you know, geopolitical, economic, technological, have really affected your go-to-market strategy and capabilities, if at all? COVID made a big impression on our end market. There were still some firms that were kind of reluctant to go to the cloud. After COVID, that all changed. Everybody had to go work from home, and they needed to get to the cloud. I think we're benefiting long term over that permanent change in the marketplace. We've been fortunate in the banking crisis world. We don't sell to the firms that take deposits, any of the banks that are in that space. We're nearby, but we've been very grateful that our business has managed to move through the uncertainty pretty smoothly. In fact, we think that the end market that we're selling to has shown a lot of resilience here, and we have a history of working with these firms through some of the ups and downs. The 2008, 2009 recession, we bootstrapped the business right through that and never raised money and grew the business that way. Same thing at the beginning of COVID. We feel pretty good that the lawyers always get paid, the accountants always get paid. There's a lot of strength in the end market that we're selling to. Fantastic. Turning to product development, what does that road map look like over the next few quarters? We have a lot going on. A strong organic R&D program has always been our strategy. We have a very strong advisory board from the chief information officers of all of our target firms who help set the priorities for our organic R&D investment. They tell us what they're willing to pay for. We've got that history as a bootstrap company. We're doing a lot of Applied AI work. Our Relationship Intelligence system is one. We've expanded that most recently into multiple languages to support our global clients. We're doing AI against all of the communication activity of the firms in a compliant way to help with Relationship Intelligence. We also just did an acquisition here a few weeks ago in the compliance category, a company called Paragon, that's gonna help us do employee compliance. All of the trading compliance that the financial firms have to do, and increasingly the professional firms as well, the attestations and everything that folks have to do to make sure that they're keeping up with the rules. A couple different areas. Great. Thank you. Maybe sticking with Paragon for a second, what was sort of the logic or the fit behind that deal? Our model for M&A. We've done a handful of technology tuck-ins over the years. We have experience doing that. It's a real platform. Our model has been that we take recommendations from our clients themselves. The advisory boards are a big influence over how we deploy capital. We've always been very capital efficient in the way that we've grown the business. If we can find something that we've already integrated with in one of our client locations that the clients will say, "Hey, we would rather buy this from you as part of an integrated platform than as a separate system," that gives us a lot of focus on that. We do make the choice to fully integrate that technology into our platform. It's a single cloud system that the client experiences as a single platform rather than a roll-up strategy, for example. Great. Great. Sticking with Cloud ARR, Cloud ARR is now roughly about 2/3 of your total at the moment. How do you see this share continuing to grow? Yeah. I think we see cloud ARR continuing to grow very steadily here. It's all we sell now and have been selling for the last couple of years. Strictly all new business is cloud. We migrate our existing customers to the cloud on a regular basis. In terms of the percentage growth, it'll move up a few points every year or a couple of points each quarter on average as the, as the volume continues to grow. That's the steady trajectory of the business in terms of cloud. Great. As you see a customer migrate to the cloud, are you getting any revenue uplift from that transition? In a practical sense, we do, because often the migration takes place at the time when the client has bought some new cloud capability, and that seems to be the right time to then migrate existing on-premises capability they've already had, which in some cases may have been for 10 or 12 or more years. We have some very long-standing clients. Technically, the swap could be at the same price because we don't explicitly charge a different price at the moment. We recognize there's a lever we could potentially pull over time in that regard, for now, we're migrating steadily when the customers are ready, and as I said, typically when we're selling new capability, which is an uplift for the business. Okay. Thank you. Let's shift to competitive dynamics. What companies do you see most in competitive opportunities, and how are your win rates when you go up in those sort of competitive sales? We put our competitors into three buckets. The first is the in-house developed, usually on-premises generation software. This was the original competitor, and there's still a surprising amount of that out there. We replace that pretty consistently. The second group, there are a lot of small, relatively undercapitalized point solutions scattered all across the market. They could be started by a consultant or started by a former practitioner. We integrate with some of those. Some of them make good M&A candidates for us. But our value proposition versus that model is that we're not asking the CIO to string together all kinds of different applications to create an experience for the professionals. We bring an integrated platform to the table. The third category are the traditional horizontal suppliers. Salesforce, Microsoft Dynamics, SAP, all excellent software, but that style of CRM, ERP system has been available for a long time, and yet the firms are still building their own compliance and operational systems. Our offering is a fully purpose-built system that has compliance built in for the market versus those. We have very strong win rates versus those. In fact, if someone has tried one of those and not had good adoption from the professionals, we have a particularly strong win rate. I think as the market develops, we're in a stronger and stronger position. Great. Sticking with those different segments, what areas are you seeing as sort of the best opportunities for upsell within those respective buckets? We're winning a fair amount with our DealCloud solution on the one hand and our compliance solution on the other. That's usually how we land. Often they're together because in this market, there's a very interesting dynamic where if you wanna do revenue management and optimize where you take your clients, in most of the work that you're doing, you're going to prevent yourself from taking other types of work. You need to be able to continuously weigh all the opportunities in the marketplace against each other so that you can take the clients that you then have to be loyal to, and you're conflicted out of other business. That's a big driver for us, is that integration of the revenue-oriented coverage program and the compliance conflicts management system, and nobody else does anything like that. Those grow once we get them in place. Then we have a cross-sell program to all sorts of other solutions, like the Relationship Intelligence solution, our Collaboration & Content system, which does a lot of the documents and provisioning in Teams, in a compliant way, and then a whole series of other opportunities. Great. Shifting to everyone's favorite topic of this conference. As you think about building out your platform, where do you think the market demand lies in terms of areas you're working on for AI incorporation? I think we're a little unusual in the sense that we had one of the first AI applications in this market maybe 11 years ago. We built a time recording system that watched all the activity that at that time, the lawyers that were in our market, all the things that they did, and it recommended back to them, "Here's what you should bill." It also would say, "By the way, you're trying to staff this person on this project, and you've already signed an outside counsel guideline or an engagement letter that promises not to put a first-year associate on this type of work, and you won't get paid." We had an AI running in the background. That was sort of the genesis of our whole system, and we had a little AI team even back then. Over time, we really have watched as the AI opportunity has grown inside these firms. We really think it's gonna be like mobile. When mobile was first coming out it was hype and everybody was into it. Today, you really have to have a mobile solution embedded in every enterprise application. It's just taken for granted, and we think that's what AI is gonna do. We're not doing core AI research. Our approach is to look at all of the AI technologies that are being developed out there and really understand the applications of that for a monetizable solution inside the firms where we can really create value. Our whole framing of that we call Applied AI. You'll see that continue. We're doing a lot of work now with this Microsoft partnership with some of the AI technologies they have. We feel kind of fortunate that they ended up winning the OpenAI auction because we already had the agreement with them, and now we have access to all of that. We think it's a great opportunity. One of the important things about AI going forward for this market is the compliance question. How do you make sure that these large language models and all the styles of AI that take advantage of large datasets fit within the compliance confidentiality management requirements of these very specialized firms and all the client information and market information that they're in possession of? I think our position as the compliance company for a lot of these things is gonna be a very valuable way to help the firms get real solutions out of Applied AI. Great. I think that's a fantastic sort of summary of AI and how you're incorporating it. Kinda thinking of the long-term opportunity, how is that sort of affecting or shaping your perceptions of how it can sort of grow your overall TAM? We have experience with solutions, AI-based solutions. Our compliance business has an Intapp Conflicts solution today that's been in the market for five or seven years that actually automates away a lot of the first-pass work that the traditional conflicts analysts used to have to do when firms were vetting new business. We can cut 70% of the human labor and 70% of the clearance time for firms to accept new business. In a lot of these highly competitive markets, the firms actually compete on how fast they can clear the conflicts process. We made a big impression on the market with that type of solution. I think that's just throughout the marketplace here. We also have a pricing model and a revenue model that goes with that. Rather than price by the user in that scenario, we're looking at more of a value-based price for the value that we create for the firm, and I think that's a good experience for us as we look at some of these bigger AI opportunities. Great. Then shifting to sort of the reverberations from the regional bank events in the Q1. You know, particularly with, you know, sort of their effects on deal activity. How are you seeing this affect overall demand, if at all? We're watching carefully, as everyone is. We have not seen a lengthening of sales cycles. We've been doing pretty well in this environment. We think, you know, our experience as a bootstrap company through the previous recessions gives us good evidence that we've got a strong client base and a strong value proposition here. We have strong retention as well. We have said, you know, the lawyers and the accountants have a pretty stable revenue line independent of the macro cycle. The private capital firms, which are a decent part of our business, we get paid out of their operating income from the 2% assets under management fees, so it's not really transaction driven. We think that's a source of stability for us. We have said if there is a area in our targets that we're watching, it's the investment banks. We'll have to see how that goes. We do feel fortunate that we've mainly been in the midsize M&A boutiques so far. Although interestingly, just in the past couple quarters with Microsoft and KPMG, we've sold some of the big investment banks. We're hopeful that we're kind of early enough in the cycle that we can continue to pursue that, and we won't be hit on the edges from what's happening to those folks. We're gonna watch. Great. Then maybe a follow-up to that. you know, since you reported your last quarter results, you know, across all sectors outside of financial services as well, what are you seeing in sort of the change or the delta in the macro since you last reported? I would say not much. I mean, it. What John just described is what we're seeing. We are seeing good pipelines and good sales cycles and good opportunities in really all of our subverticals. We'll continue to execute on that, take advantage of it. Great. Thank you. Kind of looking at the long-term opportunity, how are you thinking about your sort of revenue deceleration now versus what you think you can attain on a long-term basis? You know, can you potentially reaccelerate, or are you kind of comfortable at this level of growth versus margins? Well, we think our growth rate continues to be good, and I think what we've done is tended to point people more towards our ARR growth rate, total ARR growth rates, if they're thinking about long-term revenue growth. ARR tends to smooth out some of the anomalies we have in our revenue accounting. We do have a subscription license line that's a little lumpy. That's the on-premises business that we're just renewing now, but since we have kind of mid to high 90% gross retention rates, we're renewing that every year, and that can be a little lumpy because of how we need to recognize the revenue. We focus on that. We're going to continue to invest in sales and marketing because we do see strong growth opportunities, so we want to continue that momentum. I think you referenced profitability. We're gonna steadily march higher in profitability as well because we see an opportunity for that kind of balanced, profitable growth here for the business. That's the game plan we're executing on. I think if you look at our history, the bootstraps tradition is in the company culture. We never really burned a lot of money. This change in the macro environment has been something that we've been able to absorb, I think, better than folks who were on a venture model. The other thing I would say is that some of the sales process shifts as the macro changes. We're fortunate that we have a broad enough platform that helps with revenue growth and operational efficiency and compliance, that you might see a little bit of the emphasis in our sales motion shift to support the situation that an individual firm is in. There's a strong demand across the cycle, at least so far that we've seen. Great. Thank you. Then at this point I'm gonna pause for any questions we have for anyone in the audience. Yes. Can you talk about just the type of law firm that you have most of your business with? Is it the bigger firms? How do you price it, and how far can you penetrate in the legal community? How small a firm could you get to? The question is what type of law firm are we selling to in that case? Across our five subverticals: private capital, investment banking, law firms, accounting firms, consulting firms, legal was where we started the company, so we have a fair footprint there. It's always been the corporate law firms. Mid-size and up, maybe the smallest that we sold to at the beginning was down to 50 or 100 lawyers. We're not really in the consumer law side of things. Multi-practice usually class of firms, so all the names that you would know in Wall Street and the major economic centers around the world. I'm sorry. The second half of your question? Yeah. Well, I'm curious to know how penetrated you are in the legal community, how you price the product and things like that. How we price. Right. In terms of penetration, we were very proud of the fact when we came public that we could claim 97 of the top 100 law firms in the U.S. as our clients, and we thought that was a real stamp of achievement. I think we also have discovered that it also gave a worry to some people that maybe we were sold out and we couldn't get through the market. One of the things that we've been working on as we've been out meeting with investors more frequently now post the pandemic is just looking at our footprint in that market, which is just at the beginning. You got some stats that we've been giving out. We're early innings, we think, in that penetration. We said even since our IPO that if our top 100 existing clients were to buy everything on our platform with all users, that's a $1 billion opportunity right there. Most of those clients, just based on where we started, are in fact law firms. There's a pretty big opportunity. We have not penetrated those in any way. We've sold some of them all the platforms, certainly, but there's an awful lot of cross-sell opportunity and upsell opportunity there. Is your price per seat or anything? We have a couple models, but we have a per user model, and then we also have a by the group or by the firm model. Depending on the history with the firm, we'll have more of one or the other. There's a land and expand opportunity at each firm because we usually win one group. We talked in our public story about Carlyle. We're very grateful to them as a great client. They started with just one of their private equity investing teams, and over time expanded to more and more of their strategy areas and ultimately incorporated us into their One Carlyle program, where we're supporting the whole firm. We have examples of very large firms that have taken us up broadly, but if you look at the footprint, it's just a vast market that has been underserved for a long, long time, and we're just getting started. We think there's a big opportunity. Thank you. talking through generative AI and from a user's perspective, it seems as though DealCloud is phenomenal for SMBs that don't have like a 20-something person tech staff to build something internally. The build versus buy decision leans like definitely, "Let's buy it from Intapp," right? Or DealCloud. As these AI tools get more advanced and you start to be able to program your own in-house, how are you thinking about that risk from, you know? Are there barriers once you have a customer that they will stick with you versus build their own solution and avoid paying you the annual fees? How are you thinking about that risk? Yeah. I mean, I think this is one of the questions about AI for all the software companies, h ow is this going to affect the future? I think one of the things that we're optimistic about is this end market, compared to many others, is so knowledge intensive and so people driven, that the opportunities for Applied AI inside this space are just vast. That's number one. We agree, huge opportunity for automation. Secondly, I think the compliance issues for this market are very complex, and there's a lot of competing interests inside one jurisdiction, but if you actually look at the jurisdictions around the world and try to build a global firm's infrastructure, I mean, we've spent 15 years on the compliance information governance question, and we have really the leading system there. I think that's gonna be an important asset for us. Plus the credibility we have with all the compliance officers as the people who know how to do that, and we're trusted as the technology partner. Finally, you know, we've got good experience so far. Early days, obviously, if you look in the grand scheme of AI, but we've got good experience rolling out real AI-driven solutions. We're way ahead in that regard and watching some of the impact on automation and changes in the way that the staffing model works and adapting our revenue model to make sure that we capture the value there. Obviously it's a wide open world and things are gonna happen, but I think we're pretty well-positioned in a great space to be able to do some things. Any others? Do you see a risk that AI could eliminate many legal jobs? I mean, if a young lawyer is gonna spend 20 hours in a week at researching cases and coming up with a brief on it or a report on it, couldn't AI just do that in. Yeah. 15 minutes? It's not just the lawyers, it's the accountants, and it's the bankers, and it's the investors. All of those entry-level roles traditionally coming out of school, the early analysts and associates, a lot of their work is to train them, but a computer's gonna figure out how to do that. This is gonna be one of the most interesting things, and this is a big topic of conversation across the industry, the folks who worry about the management of these firms and the future of training people. I do think there's gonna be a lot of disruption, but I also think there's always gonna be demand for professional experts in each of these areas. These firms are hundreds of years old, and they're not gonna be completely roboticized. We have also sold traditionally a number of solutions that do exactly that cut down costs of processing and labor time within law firms, freeing them up to do more value-added work. We have that muscle memory in that business. We also have value-based pricing in a lot of these cases, not just per user. I think we can capture value from solutions that we help bring to the industry pretty effectively 'cause we've already been doing that. I just was looking at the presentation. Another question, if I could. your off-prem or on-prem business, I should say, is about a third of the revenues right now and kind of flat. does that go away at some point? Does that get integrated to the cloud? What's the outlook there? We are migrating that business sort of slowly but surely, carefully, quarter- to- quarter into cloud business at the rate at which our clients are comfortable making those migrations. I think, as I said earlier, typically what we do is sell new cloud capability to a firm that already has some cloud and some on-premise and then at that time or at an appropriate time, it's time to migrate the rest of their business over. It's a bit of a project, so it takes a little bit of time, but that'll happen. Over time, yeah, that should move away 'cause we're not selling new on-premise business, we're just renewing it. All of our R&D, if you want any of the Applied AI technologies, it comes in the cloud from us, so it's a growing incentive for people to make the switch. If I could keep going. Can you talk about the margin structure? What are your gross margins, and what are the, you know, the key stepping stones to scaling the operating profit margin line? Yes sir. Our gross margins are kind of in the 71%-72% range now, I think. They've moved up a little bit. I think we'll get some continued benefit from the fact that our services organization that implements the new, the new offerings has been a little upside down for the last year or two. We invested in a pretty professional and bigger team a couple years ago. We've been kind of growing into that team as we get larger, and we're getting to the place where our scale will start to have that business turn the corner. We expect to be breakeven and then, you know, marginally profitable here in the next year or two, and we'll run that business. That should be helpful. Our sort of software-only gross margins have been pretty good in the kinda, you know, low 80s, and we think that'll be fairly sustainable here even as we continue to do more cloud business 'cause we've been building the cloud infrastructure that supports that. Of course, there are some scale economies when we get more cloud business in the company, from implementations, from how we release products quarterly. It's all a little bit easier to do, obviously. We're optimistic about that. Any other questions? Please. Thank you. Can you talk about the logic? I think you did a primary recently. Can you just walk us through the logic there and what you're thinking about when you. The primary part of the deal we did last week? Yeah. Well, a couple of things. One, we have historically done some pretty small tuck-in acquisitions that are, you know, relative technology buys and been able to successfully run them through our sales force. I think that the M&A environment feels a little more constructive these days to us. There might be some opportunities to do some things that are a little bit bigger. It's helpful to have a little more flexibility in order to engage those should they come up. That's one. Two, honestly, we've been running the business on about $50 million of cash fairly leanly, which is kind of a thin number for a company of our size and position in the market right now. We didn't raise quite all of what we might have at the IPO. We used it to pay down some prior acquisition debt. It just felt like a little bit of a top-up there, candidly, would be helpful. The balance of the offering, of course, was selling shareholders, as you may have seen. Just in terms of the magnitude of the M&A, like, what would you be doing previously, what does this enable you to do? What would be the upper end of what you'd be looking at? Well, I wouldn't put a target out there but, you know, we've been doing deals that have been kind of in the $5 million, $10 million, $20 million range, small technology deals. I think with a little more, a little more capital here with an opportunity, with some more liquidity and float, as you appreciate that happens when we do a deal like last week, it opens up other markets like convertible markets a little bit more aggressively. If something a little bit bigger made sense, we could really engage that well. We're disciplined and selective, certainly. If we see something that makes sense, it might be the right thing to do. Great. I think we had one more in the front row. I'm close. Speaking to legal, and perhaps you expand, have you done anything with e-discovery or other aspects of legal that could add value beyond your current operations? Yeah. The question's about e-discovery and that sub-industry. You know, we've been serving the legal industry for a long time. We watched the e-discovery software opportunity develop over the years. There were a lot of venture-backed folks and it's a great category, but the go-to-market model requires you to sell over and over again individually to the partner who's running a particular litigation or sometimes to the corporate client who defines what tool to be used in e-discovery. When the case is over, the revenue's over, and you've got to do it again. We just looked at that historically and said, there are other more sustainable subscription style value creation opportunities that we have and we wanna pursue. No criticism of a great category that needs a great set of providers, but we've just chosen not to go into that one. There's lots of space inside the legal area. We were talking about some of the aspects earlier that we think we can continue to develop and grow there. Lots of feedback from our clients, longtime clients, who have given us a roadmap of ideas that they would like to see us invest in and sell to them. Great. Thank you. I think we have about two minutes left, so maybe if I could squeeze in a quick two-parter. Is there anything that we haven't discussed today that you'd like to communicate to investors about total growth or sort of, you know, the product ecosystem? The follow-up to that would be, what is your biggest misconception that you hear? You wanna take a shot or you want me to? I think, to me, the biggest misconception is, I'll take, try that one. How's that? Is that we don't have enough, w e're penetrated in legal or elsewhere, and the fact that our, b ecause our cross-sell and upsell opportunity is really quite substantial in this business. This market is a bit late to the cloud. We're the cloud play that makes sense for these folks, and there's just a very long runway for the business, so we're pretty excited about that. Yeah. Picking up on the ecosystem term, I really do think the Intapp platform is increasingly being viewed as the central system for these types of professional firms. We have some of the CIOs who have said to us, "Look, we have SAP for our financials. We have ServiceNow for our service centers, and we have Intapp for all of our professionals." That really started to feel like people were getting it, that there's this category for the professionals in these large partnerships that just hasn't existed historically, and we're pioneering that category. We're excited about the opportunity to continue to grow inside a very rich end market. Great. Well, John, Steve, thank you so much for being here today. We really appreciate your time and, yeah, enjoy the, enjoy the rest of your day. Okay, great. Thank you. Thank you all. Thanks, everybody.