Enterprise cloud software firm Intapp easily beat Wall Street's targets for its fiscal fourth quarter but provided a mixed outlook for the current period. Intapp stock sank Thursday on the news.
The Palo Alto, Calif.-based company late Wednesday said it earned an adjusted 4 cents a share on sales of $94.6 million in the quarter ended June 30. Analysts polled by FactSet had expected Intapp earnings of 1 cent a share on sales of $93.1 million. In the year-earlier period, Intapp lost 4 cents a share on sales of $75.5 million.
Intapp's report marked the company's fourth straight quarter of profitability on a non-GAAP basis. The company went public in July 2021.
For the current quarter, Intapp predicted adjusted earnings of 3 cents a share, only matching estimates. It also forecast revenue of $96.5 million, based on the midpoint of its outlook. That topped Wall Street's target of $94.2 million for the fiscal first quarter.
Intapp Stock Drops After Report
On the stock market today, Intapp stock fell 4.5% to close at 35.58. During the regular session Wednesday, shares declined 2% to close at 37.24.
Intapp provides cloud-based software applications for professional and financial services firms worldwide. It serves private capital, investment banking, legal, accounting and consulting firms. Its software helps them meet client, investor and regulatory requirements.
Oppenheimer analyst Brian Schwartz reiterated his outperform rating on Intapp stock but cut his price target to 48 from 54.
Intapp's June-quarter revenue beat was the smallest in magnitude since its initial public offering, Schwartz said. The company's revenue growth decelerated to 25% year over year after three quarters of accelerating growth. Intapp sees sales growth decelerating to 21% in the current quarter.
"Positively, management gave confident commentary on the demand outlook and positioning, and is increasing sales capacity investments in fiscal 2024 to capture the opportunity," Schwartz said in a note to clients. He said Intapp's guidance could prove conservative.
Intapp Stock Is A Tech Leader
For the full fiscal year ahead, Intapp expects to earn an adjusted 22 cents a share on sales of $421 million, based on the midpoint of its outlook. Analysts had called for earnings of 18 cents a share on sales of $402 million in fiscal 2024.
In the just-finished fiscal 2023, Intapp earned an adjusted 11 cents a share on sales of $350.9 million. In the previous year, the company lost 12 cents on sales of $272.1 million.
"We are pleased to report another strong year, with great results across the business and steady demand for our purpose-built cloud solutions," Chief Executive John Hall said in a news release.
He added, "This year we added new clients, grew existing relationships, released new applied AI applications, and demonstrated consistent growth. We enter fiscal year 2024 with optimism and momentum."
Intapp stock ranks eighth out of 41 stocks in IBD's Computer Software-Financial industry group, according to IBD Stock Checkup. INTA stock has an IBD Composite Rating of 92 out of 99.
IBD's Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths. The best growth stocks have a Composite Rating of 90 or better.
Intapp stock is on the IBD Tech Leaders list.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
