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Intapp: A "Best-in-Breed" Software Provider

Published 2024-02-09, 01:16 p/m
BARC
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While seeing a company on the list does not automatically mean I’ll buy shares, its appearance does mean I’ll roll up my sleeves and do the work.

That’s how this latest new pick came into the fold. It’s a best-in-breed software provider growing double-digits and making money, despite relative youth as a public company.

Intapp, Inc. (INTA) is the leader in mission-critical, custom-built software-as-a-service (SaaS) applications for the global professional and financial services industries.

The company’s platform is so dominant that 96 of the world’s 100 largest law firms rely on Intapp to handle everything from internal workflow to document preparation. Lenders use Intapp to move loan documents through the pipeline, while private equity employs its CRM tools to manage deal flow.

Intapp recently beat earnings for a sixth consecutive quarter and doubled guidance again. While the company does face competition from more established vendors, having gone public in an IPO only three years ago, Intapp is recognized as the market leader and has first-mover advantage.

Estimated revenue of $425M compares to an addressable market of $10B, suggesting significant runway for growth. Additionally, the company is profitable and growing double digits, putting it well ahead of many other newly minted public companies.

Intapp reported strong results in November, beating estimates for a sixth consecutive quarter and doubling guidance again. Looking forward, Intapp reports Q4 results Feb 7.

The investment thesis for Intapp is straightforward: The company presents an exciting opportunity for long-term growth and capital appreciation. Here’s why:

• Leadership – First mover advantage and dominant market share.
• Edge – Proprietary architecture creates a wide moat to fend off competitors.
• Expertise – Established A.I. protocols already being deployed to improve results.
• Scale – $10B addressable market vs. $425M in revenue provides visibility and runway.
• Profitability – Earnings positive and generating strong cash flow, unlike many young SaaS companies.

Intapp has a total addressable market (TAM) of $10B, reflecting a potential universe of 50-60k professional firms spending $150-200k per year according to Barclays (LON:BARC). Clearly, the market for professional management software is young and offers significant runway for growth.

Critically, Intapp is recognized as the largest customized software platform provider in its two largest verticals (Legal and Private Capital), creating momentum and first-mover advantage. I think the compelling combination of sector leadership and market opportunity explains why all eight sell-side analysts rate INTA as a buy.

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