On Friday, Truist Securities increased the price target for Intapp, Inc (NASDAQ: INTA) to $77 from the previous $55 while maintaining a Buy rating on the stock. The stock, currently trading near its 52-week high of $71.34, has delivered an impressive 85% return over the past year according to InvestingPro data. The revision comes as the analyst adjusted their financial model to reflect the company's updated revenue segmentation.
The new revenue segmentation includes SaaS revenue, license revenue, which consists of the upfront portion of on-premises contracts and on-premises support, and professional services revenue. This update is a shift from the previous segmentation that combined SaaS and support revenue, subscription license, and professional services. Want deeper insights? InvestingPro subscribers have access to 13 additional ProTips and comprehensive financial analysis for Intapp, including detailed revenue metrics and growth forecasts.
The analyst believes that SaaS revenue and cloud Annual Recurring Revenue (ARR) are critical financial metrics that, along with progress on non-GAAP EBIT and Free Cash Flow (FCF), are likely to influence the company's stock performance going forward. Supporting this view, InvestingPro data shows the company has maintained strong revenue growth of 20.07% and a healthy current ratio of 1.3. The firm remains positive on Intapp's potential to achieve over 20% growth in SaaS and cloud ARR.
The reiteration of the Buy rating and the increase in the price target to $77 are based on the transition to fiscal year 2026 estimates. It is important to note that there has been no change to the overall estimates, only an updated revenue segmentation in the model. This adjustment reflects the analyst's confidence in the company's growth trajectory and financial health.
In other recent news, Intapp has demonstrated strong financial performance, with a focus on cloud solutions and artificial intelligence. The company's first quarter results revealed a 27% year-over-year increase in cloud Annual Recurring Revenue (ARR) to $309 million, accounting for 74% of the total ARR of $417 million. SaaS revenue increased by 30%, reaching $77 million, and total revenue grew by 17% to $119 million. However, Intapp noted a 35% year-over-year decrease in net new ARR during the first quarter, attributed to a slowdown in large deal activity.
In other developments, Intapp's stockholders reelected directors Ralph Baxter (NYSE:BAX), Charles Moran, and George Neble and ratified Deloitte & Touche LLP as the company's independent registered public accounting firm for the fiscal year ending June 30, 2025. The firm Oppenheimer maintained its Perform rating for Intapp, highlighting the company's sustained SaaS revenue growth and operating leverage.
Looking ahead, Intapp projects Q2 SaaS revenue between $79.5 million and $80.5 million, and full fiscal year SaaS revenue between $327.6 million and $331.6 million.
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