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Intapp (INTA) has been a huge mover since mid-August when it reported robust Q4 (Jun) earnings. That was followed up with an impressive beat-and-raise in Q1 (Sep) in early November. Since the name is now well known, we wanted to provide some quick color on Intapp. It's a provider of subscription-based cloud software for the professional and financial services industry.

• Its clients are typically large partnership firms in legal, accounting, consulting, investment banking, private capital, and real assets. This is a generally underserved market. Intapp sees the professional and financial services industry as being historically overlooked by the traditional CRM/ERP enterprise companies because they are designed more for the manufacturing model and not for this partnership services oriented model.
• Intapp believes it operates in an attractive market because its clients are relatively separate from the business cycle. The lawyers always get paid. The accountants always get paid in good times and bad. These are relatively stable businesses. Intapp says its clients are also technologically pretty far behind. They have not benefited from basic cloud transformations, or the types of digital transformations that a lot of the rest of the economy has because there was not something really available that was purpose built for them.
• Intapp has successfully grown the business pretty consistently over many years. And it's finally getting to a scale where it can start to serve the big fish, the global institutional firms. This was one of the reasons INTA chose to bring the company public. Also, Intapp is growing internationally, comprising 34% of SepQ revenue, up from 31% a year ago.
• In SepQ, revenue grew a healthy 17% yr/yr to $118.8 mln, driven primarily by sales of its cloud platform. Of note, SaaS revenue growth was even more robust, up 30% yr/yr to $77 mln, driven by new client acquisitions, contract expansions, and the migration of on-premise products to the cloud. Approx 92% of its clients have adopted at least one cloud module. Cloud ARR was $309.1 mln, up 27% yr/yr and it represented 74% of total ARR vs 69% a year ago.

Overall, Intapp seems to be finally hitting more radar screens for investors. We like their niche target market that is underserved and is still in the early days in terms of migration to the cloud. What is nice is that its clients are the type of clients that always get paid even during a economic downturn. Also, Intapp is improving its AI functionality and has a nicely growing international business.