Intapp Inventory Bucks Macro Headwinds Hitting Different Software program Shares

Intapp (INTA) inventory has proven power since rocketing after the software program firm’s better-than-expected fiscal second-quarter earnings report final month.


On Feb. 6, Intapp reported a shock revenue on greater gross sales than forecast. The Palo Alto, Calif.-based firm earned an adjusted 3 cents a share on gross sales of $84.7 million within the quarter ended Dec. 31. Analysts polled by FactSet had predicted a lack of 3 cents a share on gross sales of $80.5 million. Within the year-earlier interval, Intapp broke even on gross sales of $64.7 million.

Intapp gives cloud-based software program functions for skilled and monetary providers corporations worldwide. It helps personal capital, funding banking, authorized, accounting, and consulting corporations. Its software program helps them meet consumer, investor and regulatory necessities.

“Intapp targets the underserved and neglected, however truly very giant, $3 trillion business {of professional} and monetary providers corporations,” Chief Government John Corridor mentioned. He made the feedback on a Feb. 6 convention name with analysts. He added that, Intapp’s software program “has been designed particularly for the distinctive working and compliance wants of those corporations.”

Microsoft Alliance Lifting Intapp Inventory

Intapp helps the monetary deal-making, authorized and advisory business transition their operations to the web cloud, Corridor mentioned.

The corporate has gotten a lift from its strategic partnership with software program big Microsoft (MSFT), which it announced in February 2022, Corridor mentioned.

Intapp has posted two consecutive quarters of accelerating gross sales and earnings progress.

For the present quarter, Intapp predicted it’ll break even on gross sales of $87.5 million, primarily based on the midpoint of its outlook.

For the total fiscal 12 months, it guided to adjusted earnings of 4 cents a share on gross sales of $342.5 million. In its final fiscal 12 months, it misplaced 12 cents a share on gross sales of $272 million.

Hits File Excessive After Earnings

Intapp inventory hit a file excessive 42.11 intraday on Wednesday earlier than pulling again in a broad market sell-off on Thursday. It went public in June 2021 with its IPO priced at $26 a share.

Intapp inventory is on the IBD Tech Leaders listing. It has a superb IBD Composite Rating of 98 out of 99. Intapp ranks first out of 39 shares in IBD’s Laptop Software program-Monetary business group, in line with IBD Stock Checkup.

Insulated From Macroeconomic Headwinds

Oppenheimer analyst Brian Schwartz reiterated his outperform ranking on INTA inventory after the corporate’s earnings information.

“Intapp is a play on the present fast shift to cloud computing and digitizing workflows in verticals,” Schwartz mentioned in a observe to purchasers. “It has developed a strong set of purpose-built options and proven it may leverage the identical software program throughout a number of classes.”

Stifel analyst J. Parker Lane stored his purchase ranking on INTA inventory after the corporate’s quarterly report.

In a observe to purchasers, Lane mentioned Intapp seems comparatively insulated from macroeconomic headwinds impacting different software program shares.

“In contrast to many software program friends, the corporate said that demand has remained sturdy throughout each skilled and monetary providers, and there proceed to be no indicators of deal cycle elongation,” Lane mentioned.

He added, “We proceed to consider the corporate’s finish markets present a higher diploma of stability within the face of a more durable macro, and the continuing shift to the cloud gives a big alternative for brand spanking new buyer acquisition and on-premise migration.”

Comply with Patrick Seitz on Twitter at @IBD_PSeitz for extra tales on shopper expertise, software program and semiconductor shares.


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