Intapp Inc. (INTA) delivered a solid F2Q25 performance, with Citi maintaining a "Neutral/High Risk" rating and adjusting the target price to $76 from $78. The report highlights strong forward-looking metrics, including a 20% y/y increase in ARR and a 42% y/y rise in billings, despite a 5% y/y decline in new ARR for the first half of FY25. Intapp's transition to cloud services and AI-driven SaaS offerings is gaining traction, contributing to a 20% uplift in ARR, although on-prem ARR saw a decline. The company raised its FY25 revenue guidance by $3M and EBIT guidance by $9M, reflecting confidence in its pipeline and market positioning.
Citi's analysis points to a balanced risk/reward scenario, with Intapp trading at 47x FY26 EV/FCF. The report notes, "We are encouraged by the ramping AI opportunity, cloud transition, and better billings/bookings performance," but remains cautious due to potential macroeconomic pressures and the competitive landscape. The revised valuation is based on a 9.1x FY26 EV/Revenue multiple, factoring in growth and margin expectations.
As of February 5, 2025, Intapp's stock price is $62.45, reflecting a 15.05% decline from the previous close.