Q4 2021 Intapp Inc Earnings Call

September 8, 2021

[music].

Ladies and gentlemen, thank you for standing by and welcome to the income earnings Conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask the question. During this session you will need to press Star then one on your telephone.

If you require any further assistance. Please press star then zero.

I would now like to hand, the conference over to your speaker for today, Mr. Barry Hutton you may begin.

Hello, everyone welcome to <unk> fourth quarter fiscal year, 2021 earnings conference call on.

On the call with me today are John Hall, CEO of income and Steve Robertson, the company's Chief Financial Officer.

During the course of this conference call. We may make forward looking statements regarding trends strategies and anticipated performance of our business.

These forward looking statements are based on management's current views and expectations.

Until certain assumptions made as of today's date and are subject to various risks and uncertainties described in our SEC filings and other publicly available documents, including those related to the impacts of COVID-19 on our business.

Financial services industry and global economic conditions.

<unk> disclaims any obligation to update or revise any forward looking statements.

Further on today's call. We will also discuss certain non-GAAP metrics that we believe aid the understanding of our financial results a.

A reconciliation of comparable GAAP metrics can be found in today's earnings release, which is available on our website and as an exhibit to the form eight.

The 8-K furnished with the SEC prior to this call.

With that I'll hand, the call over to John.

Thanks Barry.

Good afternoon.

Thank you all for joining us for <unk> first earnings call as a public company.

I'm here with our CFO, Steve Robertson.

And today, we'll spend some time, providing you a few recent highlights sharing our strong fourth quarter 2021 results.

Viewing our full fiscal year and providing insight into how we're thinking about the year ahead.

Intact was founded in 2000 with a focus on helping law firms manage and integrate their data.

In the years since we've expanded building from that foundation to deliver a modern industry cloud for professional and financial services firms.

Leveraging this market position, we ended fiscal year 2021 on a high note with a great fourth quarter demonstrate.

Demonstrating continued growth and strong execution across our businesses.

Our high growth cloud business is the key driver of our overall annual recurring revenue.

And also of our total revenue growth.

As digital transformation in the markets, we serve leads to increased cloud adoption.

Steve will provide specific details and comments around our results and guidance during his remarks, but I'd like to share with you a few highlights.

Throughout the last year, we have seen professional and financial services firms accelerate their adoption of new technologies and pivot to the cloud.

You can see the market's ongoing cloud adoption and our cloud first strategy at work.

Got it in our results.

As we ended our first fiscal year June 30.

Cloud <unk> of $110 million, an increase of 48% from the prior year.

Cloud <unk> is now 52% of our total air are.

Up from 43% of the total a year ago.

And our total air are of $212 million increased 23% year over year.

We're pleased with the results of our first quarter as a public company.

In Q4, our SaaS and support revenue increased 26% year over year to $43.0 million.

And by continued adoption of our cloud solutions.

While total revenue increased 29% year over year to $64.0 million.

We also completed our IPO during the fourth quarter.

And I'd like to take this opportunity to thank the employees clients partners Advisors Board members and most of all the investors who helped us reach this significant milestone.

We had the pleasure speaking with many of you during that process, but for those of you, whom we haven't yet met I'll take a few moments here on our first earnings call to share an overview of in tap the solutions, we provide and the markets we serve.

As I mentioned in Tech was founded 20 years ago as a developer of solutions designed to help law firms better manage their data.

Since then we've expanded our vision and our scope and we now deliver a full cloud platform to the broader industry professional and financial services firms.

Today, we are executing our strategy to enable breakthrough performance for the three trillion ecosystem of private capital investment banking legal accounting and consulting firms that make up the professional and financial services industry.

These firms are the central facilitators of the world's economy.

And as a group they make up a large and durable market with a serviceable addressable market of $10 billion and a total addressable market of over $24 billion.

<unk> is very well positioned for continued growth and profitability.

As you are aware nearly every industry has made or is making the transition to the cloud the.

Professional and financial services industry is no different.

For the past decade, we have seen the shifts steadily taking place in these markets as more firms look to eliminate the technical debt of legacy and on premises solutions flex to accommodate dispersed remote workforces and keep pace by better accessing and applying data to business decisions.

All of this was happening even before the impacts of Covid.

As a result, our cloud business is expanding rapidly.

Going forward, we are targeting all new sales in the cloud.

And expect our on premises annual subscription license business to decline slowly as a portion of those licenses are migrated to the cloud upon renewal.

It's worth noting that unlike companies that sell physical products professional and financial services firms sell knowledge and expertise.

Digital transformation in these industries has taken a special emphasis.

On institutionalizing and harnessing the firm's knowledge across a large population of working professionals.

Because their business is so specialized these firms tend to experience greater challenges successfully adopting and applying technology that hasn't been built with their specific needs in mind.

For too long the industries that we serve have found themselves without technology systems built for the very complex and regulated way they do business.

As investment professionals yourselves, you may very well have firsthand experience with this issue.

The core of the market is served today by homegrown internally developed solutions that are expensive to build and maintain lack modern features and are often difficult to scale.

Many firms also still rely on legacy solutions built on aging architecture with limited capabilities usability and functionality.

Legacy solutions have traditionally not been able to keep up with the needs of the business and the clients.

We grew the Intel business competing with this part of the market.

And we still replace these systems consistently, particularly as more firms embraced the transition to the cloud.

Finally, we found that the firms who make up this specialized industry struggle to make use of the traditional horizontal software systems.

Traditional CRM and ERP systems were built to support traditional product companies.

Not for the complex needs of professional and financial services firms, who rely on their people their expertise and their relationships to drive their business.

As a result, these horizontal systems require complex and extensive customization.

And even then they still often fall short.

In tap as the antidote to homegrown legacy and horizontal solutions.

We are building the modern cloud platform based on a deep understanding of what these clients need.

You are probably familiar with the vertical industry cloud model.

And its success in the life Sciences and insurance industries.

In tap is using this cloud strategy to enable the digital transformation of the market of professional and financial services firms.

Our technology solutions are more advanced and purpose built than other offerings.

We will continue to innovate and invest in the entire platform to sustain and grow our market advantage.

There is an enormous market opportunity ahead for end cap for those of you who are or have been lawyers accountants bankers or investors yourselves, our company and our solutions are built for you.

We currently go to market with our industry cloud under two different solution brands.

Each brand is a configuration of the same underlying platform and technology.

Deal cloud is for the financial services sector.

And manages firms client deal and investor relationships prospective clients and investments current deals and compliance activities.

For investment banks and advisory firms this translates into enhanced coverage models.

Greater win rates and higher success fees.

For investors it helps increase origination volume.

Support investment selection.

And drive greater returns.

One place is for professional services firms and helps manage firm knowledge and go to market strategies.

Business development risk and compliance and engagement delivery.

This better enables legal accounting and consulting firms to win and grow their clients to effectively manage risk and compliance obligations and to execute work more efficiently and profitably.

Acquisitions have always been a part of our strategy to expand our technology capabilities. We have completed seven successful acquisitions to date. Most recently the acquisition of Rep store in Q4.

Which provides us access to rep stores, Microsoft teams and office 365 enterprise content management and collaboration tools.

Which are designed specifically for professional and financial services firms.

We're confident in the growth potential of our current portfolio and in addition are always open to new opportunities to augment our platform and accelerate our strategic plan to best serve our clients.

Today, we serve more than 1900 premier firms in 40 countries.

That number is a noticeable increase from prior periods as it now includes roughly 200 clients related to our fourth quarter acquisition of Rep store.

We're proud of the clients, we serve which include 96 of the Am law top 100 U S law firms.

Seven of the top eight global accounting firms.

And over 1000 of the world's largest private capital and investment banking firms.

Our enterprise go to market approach, primarily focuses on the largest firms with a land and expand strategy at its core.

The approach starts with our large and deeply entrenched client base, many of whom have been with us for a long time.

There is tremendous room to expand within our base with more solutions more seats and deeper account penetration.

For smaller firms, we tend to go to market with the full platform.

As we move upmarket to the larger enterprise class firms, we take a more modular approach.

Instead of ripping out their existing technology investments all at once will focus on a key area of improvement for a goal that our clients are trying to achieve.

Given the mission critical nature of our solutions, our churn is very low.

Over time, we typically add users and solutions expanding into other portions of our clients' business.

Our trailing 12 months net revenue retention rate was within the expected range of 108% to 112%.

We're also rapidly growing our client base.

Every quarter, we add new clients from mid sized firms large firms and global enterprises across all of the markets that we serve.

As partners and professionals move from firm to firm they often recommend our platform to their new employers further expanding brand recognition and client loyalty.

This circulation of professionals helps to create powerful network effects across the industry for the Intel platform.

We truly believe that no one else has intest combination of deep domain expertise and next generation technology purpose built to address the challenges that professional and financial services firms face.

We have a more comprehensive cloud based platform with the scale horsepower and applied AI to compete strongly against homegrown and legacy solutions.

And were now recognized as the industry leader with the brand and client trust to compete successfully with horizontal solutions.

As a purpose built industry cloud for professional and financial services.

Take for instance, our long history in partnership with Baker Mckenzie.

One of the largest and highest grossing law firms in the world.

More than a decade ago, they implemented their first in tap product as a single point solution.

In the year since they have continuously embrace the platform for mid cap and we have become a key partner in the renovation program.

Today Baker Mckenzie as a full platform client.

Using integrated Intest solutions for conflicts management time, recording confidentiality management workflow automation and data integration.

They've improved the efficiency of the client onboarding process by 60%.

Cut their client response time in half.

And their data is now centralized across the entire client lifecycle.

Perhaps most significantly.

Now have a 360 degree view of their client relationships.

And they're using that intelligence to drive their growth strategy.

And to best serve their clients.

They exemplify the way our comprehensive suite of solutions flexes to support our clients as their needs evolve.

And there are a tremendous example of the power of centralizing and harnessing data to inform strategic decisions and to drive growth.

Hamilton Lane is a great example of the impact and scalability and tap solutions.

And alternative investment management firm, providing private market services to investors around the world.

And they are a fast grower across sectors and geographies.

When they selected intact to improved deal flow processes five years ago. It was because they needed a tool that could improve the deal flow process and help them manage their CRM.

They also wanted to ensure the solution that they chose could evolve to support their business as they grew.

Our single deal cloud solution replace 28 <unk>.

Brit systems and databases and in the first year alone helps the firm to eliminate more than 55000 emails most.

Most of those centered around process management.

In the year since deal cloud has proven flexible and customizable to grow alongside Hamilton Lane as their business has expanded and we're proud of and grateful for their partnership.

Serving clients like these is what our team passionately pursues everyday.

Turning to the most recent quarter I am pleased to share with you just a few of our most recent client successes and an overview of our performance.

We are seeing a steady ramp of new clients and.

And we're committed to moving quickly from introduction to providing value in a way that helps clients achieve their objectives faster.

In Q4, we landed more than 50 net new logos organically.

Balfour Pacific our Canadian private equity real estate firm selected our deal cloud solution to streamline their pipeline and relationship management centralized deal information and better leverage their data.

We work with more than 1000 focused firms of this size and provide them a complete platform to drive their operations.

From signing to go live working closely with their team we implemented the software in less than four months speeding their time to value.

Equally significantly we continue to expand relationships with some of the most respected names in our industries.

For example, fresh fields.

A prestigious international law firm headquartered in the U K and an <unk> client for several years provides.

It provides a great example of how our client relationships grow overtime.

They are a great example of the 100 or so top tier global firms, where we have the opportunity to drive a large enterprise relationship and consult challenges across the organization.

Having significantly grown staff through a recent acquisition in.

In Q4, Freshfields increase the scope of its in tap contract to include additional seats and to cover all staff.

They also selected our AI assisted risk and compliance solution.

To streamline conflicts review and to accelerate the process of accepting and Onboarding new client engagements.

Finally, there moving existing and tap solutions to the cloud.

Which will enable them to reduce the cost of ownership, while staying on top of the latest innovations through automated updates.

Thompson Coburn is another example of the platform expansion and cloud migration happening within our current client base.

Thompson Coburn as an example of one of the hundreds of midsized firms that we target with our full solution to generate meaningful revenue and valuable relationships for the firm.

Our full service U S based legal firm and our clients since 2016.

Thompson Coburn is growing rapidly and needed to better leverage data across the firm to achieve its strategic goals and best serve its clients.

In Q4, they opted to move to the cloud and to leverage the full one place for legal platform.

This enables them to replace their bespoke solutions and connect their internal and external data sources to drive efficiency and better client outcomes.

The above examples show the power of our land and expand execution.

As of June 30th we had over 1900 clients.

420 of those clients generate more than $100000 of RR.

Of which 31.

Have are are of more than $1 million.

To summarize <unk> delivered strong fourth quarter results to finish the year that began with the uncertainty of Covid and ended with the validation that cloud adoption and revenue growth continue to thrive even accelerate in these most challenging of circumstances.

We're very excited about the opportunities ahead.

We're leading a significant vertical market shift.

By helping professional and financial services firms to reinvent and optimize the way that they operate.

We have an enormous global opportunity with a serviceable addressable market of $10 billion and a tam of $24 billion.

And we have a stable recurring existing client base.

And tremendous growth potential in each of our sub verticals.

Thank you for your time today.

We look forward to getting to know many of you better in the upcoming quarters and years and updating you on <unk> progress and success.

With that I'll turn the call over to our CFO, Steve Robertson to walk through our financial results and guidance.

Steve over to you.

Thanks, John and thanks, everyone for joining us today.

Before I go through the numbers I'd like to quickly review the fundamentals of our financial model.

Our recurring software business is represented by our total <unk>, which is the annualized recurring value of all of our new and renewable software contracts.

There are two components of our total cloud and on premises.

Cloud is the majority of our IRR today and will be an increasingly bigger percentage of our total ore going forward as nearly all of our new sales our cloud sales.

We believe our cloud <unk> in total are our metrics are good indicators of the growth of our annual recurring business over time, and we plan to report them each quarter.

In terms of revenue recognition cloud <unk> is recognized as SaaS revenue Ratably, following a new sale or renewal.

On premises <unk>.

As recognized in two parts, 50% as subscription license revenue recognized upfront at the time with the sale or renewal and 50% as support revenue recognized Ratably and included in our staff and support revenue line.

Because it is recognized Ratably SaaS and support revenue will generally be generally be more predictable quarter to quarter.

In contrast.

Christian license revenue, which is primarily related to a legacy on premises business can vary significantly quarter to quarter. Because it is recognized as revenue episodically when their subscription licenses are initially delivered or renewed.

We expect to migrate our on premises business to the cloud over time and migrate the related subscription license revenue to SaaS and support revenue, which will tend to reduce this quarterly variability overtime.

Our professional services revenue relates primarily to implementation of new SaaS subscriptions migrations of clients from on premises to the cloud and a variety of other services.

We build on a time and materials basis and recognized as billed.

Lastly, I would note that we began trading on the NASDAQ on June 30th.

Oh closed technically on July 2nd and so our fourth quarter and year end financials do not reflect the issuance of new shares the conversion of preferred shares to common the net proceeds received or the pay down of our debt those will be reflected in our first quarter fiscal 'twenty two financials ending September 30.

Okay, moving now to our fourth quarter results.

Total revenue was $64.0 million up $20.0 million or 29% year over year, driven primarily by sales of our cloud solutions and to a lesser degree by increases in subscription license and professional services revenue.

SaaS and support revenue was $43.0 million up $10.0 million or 26% year over year, reflecting continued strength in the sale of that adoption of our cloud solutions.

Subscription license revenue was $18.0 million, primarily reflecting renewals of on premises subscription license business for both one year and multiyear periods. As noted earlier. This revenue line item can be variable on a quarterly basis.

Professional services revenue was $11.0 million reflect the implementation of the software and migrations to the cloud for our clients, including a one time project for select cloud client that will extend into the first quarter of fiscal 'twenty two.

Turning to our full year results for fiscal 2021.

Cloud <unk> grew 48% year over year to $116.0 million.

At June 32021 cloud are all represented 52% of our total <unk> up from 43% a year ago, reflecting our cloud first business focus and the market's ongoing shift to the cloud.

Total <unk> grew 23% year over year to $215.0 million.

Total revenue increased 15% year over year to $220.0 million.

SaaS and support revenue increased 26% year over year to $145.0 million, reflecting continued strength in the sale and adoption of our cloud solutions.

Subscription and license revenue was 46.0 million, primarily reflecting renewals of our subscription license business.

This was a modest decrease year over year in line with our strategy to migrate legacy clients to the cloud when they are ready.

Professional services revenue was $30.0 million, our overall services activity was impacted by the effects of Covid. Both at the end of fiscal year 'twenty and during the beginning of fiscal year 'twenty one.

Lastly in terms of revenue mix for fiscal year 'twenty, 130% of our revenue was international up slightly from 28% in fiscal year, 'twenty and the remaining 70% of our revenue within the United States.

Before discussing gross margins expenses and profitability.

Want to note that I will be discussing non-GAAP results going forward.

As a reminder, our GAAP financial results along with a reconciliation between GAAP and non-GAAP results.

Can be found in the earnings press release and supplemental financial tables.

For the fourth quarter.

Gross margin was 71%.

Up from 67, 9% in the prior year period, primarily as a function of a quarterly increase in our variable higher margin subscription license revenue.

Overall operating expense was $46.0 million $20.0 million increase year over year as we invested in the business to support our growth and prepared to become a publicly traded company.

In addition, we paid normalized bonuses and commissions in the fourth quarter of fiscal 'twenty, one as compared to considerably reduce levels of such compensation in the fourth quarter of fiscal 'twenty. When we were managing the uncertainty of the Covid pandemic.

Sales and marketing expense was $25.0 million $15.0 million increase year over year, reflecting increased head count and commissions as part of our investment to pursue our large addressable market.

R&D expense was $19.0 million, a $8.0 million increase year over year as we continued to invest in our connected firm cloud solutions.

And G&A expense was $12.0 million, a $7.0 million increase year over year, primarily as a result of expenses related to preparing for our IPO.

Non-GAAP operating profit was zero point $6 million as compared to our fourth quarter fiscal 'twenty operating profit of $10.0 million.

Primarily reflecting the increase in operating expenses just discussed.

Non-GAAP net loss per share was <unk> 19 in the fourth quarter of fiscal 'twenty, one as compared to three in the prior period.

As a reminder, this fourth quarter of fiscal 'twenty, one earnings per share calculation using the basic share count that is prior to the closing of our IPO on July 2nd.

For the full year of fiscal 2021 gross margin was 69.0% up from 66, 5% in the prior year, primarily driven by an increase in SaaS and support revenue and a relatively modest increase in related costs.

Overall operating expense was $141.0 million and $19.0 million increase year over year as we invested in head count and other resources and supported the growth of the business.

Sales and marketing expense was $60.0 million or $7.0 million increase year over year as we increased our go to market resources to drive sales.

R&D expense was $54.0 million or $14.0 million increase year over year as we continue to invest in the product roadmap for our connected firm cloud solutions.

And G&A expense was $36.0 million, a $8.0 million increase year over year, driven primarily by expenses associated with becoming a publicly traded company.

Non-GAAP operating profit was $9.0 million or $12.0 million increase year over year as operating expenses were relatively low in the first half of fiscal 'twenty. One following our COVID-19 related restructuring in late fiscal 'twenty.

In the second half of fiscal 'twenty, one the pace of our investments in hiring returned to normalized levels and support the growth of the test business.

Non-GAAP net loss per share was <unk> 56 in fiscal 'twenty, one as compared to $12.0 in fiscal 'twenty.

In terms of cash flow or Capex remained essentially flat at $6.0 million as compared to $6.0 million in the prior year, consisting primarily of capitalized software expense and leasehold improvements at certain facilities.

Our unlevered free cash flow was $13.0 million for fiscal 'twenty, one as compared to $21.0 million for fiscal 'twenty as we remain committed to positive free cash flow, while investing for the growth of Intest goodness.

Yeah.

Turning to the balance sheet. We ended the fourth quarter was $43.0 million in cash and cash equivalents.

This cash balance does not reflect the net proceeds of debt pay offs associated with the IPO, which closed on July <unk>.

Turning now to our guidance.

For the first quarter of fiscal 'twenty, two we expect total revenue in the range of $61.0 million to $62.0 million.

And fast and support revenue of between $91.0 million.

We expect a non-GAAP operating loss in the range of $1 million to $2 million.

And the non-GAAP net loss per share in the range of six to eight cents.

Using a basic share count of approximately 60 million common shares outstanding post IPO.

For the full year fiscal 'twenty two we expect total revenue in the range of 241 million to 245 million and SaaS and support revenue of between $172 million and $176 million.

We also expect our non-GAAP operating loss in the range of $18.0 million to $22.0 million.

And a non-GAAP net loss per share in the range of 29 to 33 states using a basic share count weighted for fiscal year 'twenty two of approximately 61 million shares.

With that John and I look forward to taking your questions.

Thank you, ladies and gentlemen, as a reminder to ask a question you will need to press Star then one on your telephone.

Withdraw your question press the pound key again Thats star one to ask the question.

Please standby, while we compile the Q&A roster.

Our first question comes from the line of Jackson Ader with Jpmorgan. Your line is open.

Great.

Thanks for taking my questions guys.

Welcome to the public market.

First question is on the on the customer additions.

If you think about organically, adding about 300 customers or so in in fiscal 'twenty one.

How should investors be thinking about that number going forward and how well new like net new logos.

<unk> in terms of the main drivers of growth as we move forward.

John you want me to take that one.

Sure.

Yeah, I think Jackson.

Of all the above.

About 200 at the customers that get us to 19 had income from the Rep store acquisition.

I wanted to make sure you know that and in our our new logo count willing increase pretty strongly year over year I think that on balance.

We're seeing a new sales and new E are fairly balanced between new logos and net retention or upsell.

It varies a little bit quarter to quarter, depending on the dynamics, but it's pretty balanced. So we expect good strong revenue growth from new logos overtime, but equally from the upsell opportunities we have.

Okay.

Okay, Alright, great and then just a follow up on the housekeeping item on Rep store.

What was the contribution from the acquisition to two.

<unk> or cloud IRR in the quarter and then what.

What are the expectations for contribution to.

And the topline and profitability for next year.

Yeah, It's we're not really going to talk in detail about that it was primarily a purchase that reflected the technology opportunity we can integrate.

Microsoft teams business they have with our platform. We're excited about that and we closed we closed the deal on June 1st So it was only a month.

The the contribution is kind of going to be in the low single digit millions really of IRR and revenue and there is some good upside opportunity long term. After we do the product integrations and take the opportunity to sell forward. The combined ideas we have there.

Alright got you okay. Thank you.

Thank you.

Our next question comes from the line of Koji Ikeda with Bank of America. Your line is open.

Hey, John Hey, Steve Congrats on the first quarter as a public company and thank you for taking my questions.

My first I got a couple for you. The first question you've noticed I.

I noticed you said 400, 2100, K plus customers and 31.1 million.

Plus our customers.

I guess, what's really driving that nice expansion there on those customers specifically on those 1 million plus customers. That's a really nice sequential jump from the 27 from last quarter.

Yeah.

Yeah, Thanks, Koji, Yeah gotcha, Okay.

Theres some good numbers here. So you go right ahead.

Well I I was just going to say, it's a combination really across the board, we do get to a $1 billion through upsell, which is a huge opportunity for us with larger clients. We also land seven figure clients out of the gate occasionally them and we're getting clients in both professional and financial services. So it feels.

It feels balanced.

I thought I didn't I didn't want to cut you off here.

No that's absolutely right and the other point that we would make is that the platform strategy is absolutely working.

So these firms are expanding the footprint taking up more of the applied AI technology picking up more of the solutions and the platform in each of the areas I'm really excited to see that.

Got it got it.

And I guess, taking a step back John John and Steve a question for either of you you guys are very well known within the markets that you serve but curious to hear you know now that you're public has there been any change in the awareness or maybe the amount of inbounds that you're getting now that you're a public company versus when you were a private just just curious to hear.

How becoming public has changed.

Wariness of of intact within your core vertical markets. Thank you for taking my questions.

It definitely is helping and that was one of the reasons that we were excited about the opportunity. After many years as a bootstrap private company serving these markets to go public many of the clients that we call on.

Our various forms of advisors and participants in the financial markets as well and so the IPO was actually a great marketing opportunity for US in addition to our financing.

Now obviously, we went public on June 30th when she could very last day of the quarter [laughter] unless a year. So we're not showing a lot of that here, but I think that.

The opportunity for us and it's great as a public company for for multiple reasons looking forward.

Got it thanks, John Thanks for taking my questions. Appreciate it congrats on the first quarter as a public company.

Thanks Pete.

Thank you.

Next question comes from the line of Kevin Mcveigh with Credit Suisse. Your line is open.

Great. Thanks, so much and great job he talked about 40% cloud a our growth can.

Can you help us understand maybe how much of that was new logos versus additional modules from existing clients.

Yeah generally speaking the majority of that is new logos.

But we have a fair amount of good upsell in and.

In the cloud business as well so its slightly weighted to new logo in terms of the cloud era.

Great and then did you.

Think about kind of R&D versus sales and marketing and G&A within the context of 22 died you should we think about it similar percentages as 'twenty, one or maybe anything to call out around those because obviously, you're seeing real nice leverage in the model is as the revenue scales.

Well, we're hiring you know to try to stay ahead of our growth curve and and and be consistent we feel the opportunity I don't I don't see.

A huge move in our margins per se I think we've been investing nicely as it came out of Covid, we've got a normalized levels, we've been investing pretty nicely.

To stay ahead of our growth opportunities and make sure. We we feel people who are trained and ready to go in and sales and so on so that will continue that pattern going forward.

Great. Thank you so much.

Thank you.

Our next question comes from the line of Terry Tillman mature Securities. Your line is open.

Yeah, Good afternoon, John and Steve and Congrats from me as well on the IPO and now dealing with this every quarter and our questions.

My my my.

My first question just relates to you know as we've gone through the pandemic, we're hearing and some of these kind of platforms strategic kind of workflow markets, where there is the conversation around vendor consolidation then that may not be the most innovative approach to selling but how is that playbook working in terms of a vendor consolidation play around.

A lot of point solutions, maybe as part of the discussion around moving to the cloud I'm just kind of curious how vibrant is vendor consolidation in terms of driving maybe expansion sales or even even maybe a new logo win.

Yeah.

Yeah. Thanks, Terry it's a it's an important factor it's not the only factor people are doing other digital transformation maneuvers, obviously, but vendor consolidation is important to many of these firms as they grow a lot of the firms that we serve have a growth strategy that includes M&A of their own.

And so there's a big opportunity as the industries that we call on bringing in more.

Components to their infrastructure that they want to consolidate with a company that has the scale and the platform and the history of serving them and most of the firms we have some kind of relationship today and they are increasingly looking at our platform as a.

Core part of their overall technology strategy that they can consolidate around because we are expanding more and more of what we do so it's a it's an important aspect. In addition to the overall digital transformation that they're trying to achieve.

Okay got it thanks, John and I guess, Steve maybe a follow up question, but maybe you could help us as.

As we look into fiscal 'twenty. Two is there anything that's kind of one off anomaly, but large in nature related to the subscription on premise business. That's a large renewal in any of the quarters or maybe just a book of business. The larger on the renewal side do we need to appreciate and that that could have some volatility on that line item in the model. Thank you.

Well I think I think what I'd say is it is variable we have had a renewal activity already that has its own indirect effects for 'twenty. Two for example, if we do a three year renewal this year or we did it last year in Covid, which we did.

Then the next one it wasn't for three years and so on a relative basis as compared to three one year renewals.

You can get a different outcome for fiscal 'twenty two so there's nothing in particular on the books.

We're trying to.

To do what we can to.

Have these when it will be one year, but certainly in some cases, our clients are interested in a three year renewal and we work to accommodate them. So short answer is nothing in particular, a looming out there and as we said we're trying to migrate.

Microsoft our clients slowly, but surely to the cloud and to keep moving down that road.

Alright, Thank you and nice job.

Thanks.

Thank you. Our next question comes from the line of Brian Peterson with Raymond James Your line is open.

Thanks for taking the question and I'll Echo my congrats on a really strong results. So first one for me just there was a lot of talk on homegrown solutions and Im curious maybe spending a year in the pandemic here what have you seen in terms of customer using those solutions in it and what are the some of the friction points that you guys can eliminate.

To really drive more cloud adoption.

Thanks, Brian.

The homegrown solutions have always indicated to me.

The core argument for our purpose built platform. These firms had lots of horizontal solutions available to them over the past 20 years and yet they still invested to build internally and why is that and the only rational answer as well the horizontal systems are just too expensive and too complex when you try to convert them into <unk>.

Something that works for them. So I've always felt that the homegrown market is a great point of evidence of the market opportunity for us and our industry cloud strategy overall.

We saw during the pandemic as people had to work from home right away is that a lot of the homegrown solutions are traditionally on premise stuff with you.

No.

A lot of very bespoke.

Features in them that people couldn't convert.

Into a work from home model very quickly and you know I think a lot of the companies, bringing the cloud vertical industry systems out have benefited from this but there's been a real.

Awakening among the last remaining of the market that was not really.

Urgently looking at cloud to look at cloud now because they saw how much more agility they had to respond to that situation and to keep everybody humming.

With a true cloud system plus hours is designed just for them. So we've had a lot of interest in replacing across several different points of the firm in.

Client relationships deal management, a lot of compliance interest actually which we think is a core pillar of the platform's differentiation from traditional horizontal solutions and then on top of that we have a lot of AI applied AI of horsepower in the platform, that's very difficult for any firm.

To have the scale to invest and create to take advantage of the data that they have globally. So there's both.

Kind of enabling folks to work from home more successfully being more agile and then there's some additional capabilities that the homegrown solutions, just weren't able to get to that we're able to bring to the market. Today. So those are some of the areas.

And then maybe just a follow up to that as we think about the value proposition and John that was a great overview.

It's interesting to see.

How 'bout adoption could play out but I'm curious.

How long do you think that evolution will take I don't I don't think anybody really anticipated COVID-19 kind of changing some of these dynamics, but you know as we sit here today. It seems like that would accelerate it but is this a.

Three to five year transition you know I'm just curious how long you think it will take to play out thanks guys.

Yeah, I mean, we've been working with this market for a long time I think one of the key points of differentiation that we have.

He is our 20 years of history building specifically for this industry.

Developing trust and understanding of how the market works the industry works in each firm works so that when they look at both their homegrown and their legacy on premise solutions there.

Responding to this variety of forces to move to the cloud they see us as the trusted technology company that understands how to get them specifically to the cloud so we've emphasized.

Emphasize that in our strategy, we're working with each firm as they have made the decision increasingly to move to the cloud what I will say is there was already a switch going on where people saw all the benefits of cloud and we're trying to figure out how to get their COVID-19 definitely accelerated a trend that was already underway.

And it's become much less of a.

Strategic choice about whether they're on premises or cloud, which it was maybe five or 10 years ago and today, it's much more of a practical choice just whats the roadmap to get there and how do we build a plan with each of them and that's what we're doing with each of our firms and we saw some examples this quarter that I talked about that had actually made the choice to move as part of <unk>.

Upgrading to a bigger version of our platform. So I actually think that the shift is underway COVID-19 has accelerated it I don't want to quote specific years, because I'm not sure, but I think that the trends are all moving in the right direction and we're going to benefit from that.

Good to hear thanks, Sean.

Thank you.

Our next question comes from the line of Brian Schwartz with Oppenheimer. Your line is open.

Yeah, Hi, Thanks for taking my question. So I got a question for John and then a follow up for Steve.

John as it relates to the fiscal <unk> bookings and maybe the pipeline momentum can you maybe unpack it across your core professional and financial services sub verticals. The legal accounting consulting service of if there's anything to highlight there and then I have a follow up for Steve.

So we saw.

Good activity across all of our markets in Q4.

I think Steve you share that we've been pretty balanced both in.

New logo adds.

Position as well as client expansion and also pretty well balanced between the financial services.

Market's been in the professional services market, yeah, and that we sort of hedges when Q4, we've tended not to break that out but legal is certainly the biggest of the professional services. It's fair to say that but we don't tend to break those out, but yes pretty balanced.

Thank you and then the follow up question for you Steve is it's just.

Thinking about your philosophy for guidance since it's the first corridor you know, let's say of the commentary from John and in the Q&A in his introductory comment it sure sounds like the sentiment is improving out there people are feeling really good in your end markets about cloud computing and did tithing adoption.

And you know, but if I look at kind of the initial guidance. It does suggest that at least from my eyes that maybe that sentiment might not sustain so I just wanted to ask you. A question about your forecast are you assuming that that kind of improvement buying improvement in this adamant.

Can use or are you thinking about hey, we've had a couple of good quarters, let's let them sign up to be able to get them in contract and then we will think about raising numbers you know for all of us. After it happens. So just wondering how you think about that when you think about setting up your guidance, thanks, well well I would say.

Say that look we are seeing good strong momentum and it's continuing and we believe that will continue cloud is growing very nicely, our total air ours growing nicely.

And over time, we certainly think that our revenue growth will align reasonably well with those they are our growth rates. So no I feel like we've got a good long term opportunity here and we're firing a lot of cylinders and we're going to keep rolling here. So.

This is our first first time home and out of the box. So we're making sure we do the right thing, but we feel pretty good about it going forward here.

Well congratulations on a great quarter, thanks for taking my questions today.

Yeah.

Thank you. Our next question comes from the line of Tom Roderick with Stifel. Your line is open.

Hey, gentlemen, thank you for taking my questions and congratulations on all the recent successes.

I think this is probably going to build on Brian's last question, there, but I think it's an important point just looking at your end markets I mean, they're they're generally speaking all on fire and and that's a great thing on one hand, you know that the fundamentals are there and the finances are there and maybe the awakening John that you talked about is it's happening in real time.

We've seen in some of these other end markets that are on fire that it's hard to get the proper attention to to make some of these transformational shifts would love to hear just a bit about some of the strategic conversations youre, having with perhaps some of your larger customers. Some of the seven figure deals that came through what's the final catalyst that gets them over the hump to me.

Make that that upgrade you know age of the cloud B, perhaps from some legacy homebuilder solutions. They they know they've needed to for a long time and maybe Covid was a part of that but would love to hear what you're hearing from your senior level discussions as to what that catalyst, that's getting them to make that move and how sustainable that is.

Yeah, it's a great insight and were definitely serving firms that are serving the deal economy and as you all know better than anyone how well that's going right now.

Firms are looking for ways to capitalize on the success that they're having a lot of the conversations that we're having had to do with firms interest in laying the foundation for the next.

Years, and using this great time to put themselves in a strong.

Information position and modernize a lot of aspects of the firm it's harder to do when times are tight your point is well taken.

Your point is well taken about.

The attention span, but what we've actually found is theres a lot of appetite at the moment for people to put systems in that are really going to help get the most possible potential out of the people platform that they've assembled in or somebody to go compete in the markets and they wanted health care professionals are dealmakers to be more competitive armed with the best possible information armed with.

The insight of the collective knowledge of the firm globally and they know that that can make a difference in winning the deals in the marketplace. So there's actually a fair bit of.

Encouraging conversation going on with the strategic leaders and the leaders of these firms that now is the time to make the shift.

And I think the Covid switch too has caused people to say, maybe our strategy was a little bit less about real estate and creating the environment in the big cities and more about enabling us technologically wherever we happen to be and so there's definitely a conversation about shifting budgets a little bit from the traditional real estate, which was always one of the biggest.

Expense items in these professional firms a little bit more towards I T, which only accrues to our benefit so I think there's positive signs.

Excellent I'm certain everybody on this call would beg for more more efficiency automation and intelligence. So it's the right place at the right time.

Steve I guess on the proper follow up for you on that on that question is just in terms of looking at the demand out there how aggressive are you being or do you want to be with with bulking up the salesforce. How far ahead of the curve do you think you need to add a new heads or or do you feel like a fairly linear approach to sales guidance.

<unk> is the proper approach relative to the demand you've been seeing in other words do you need to accelerate the investment in sales and marketing or is it is it properly aligned right now.

Well I think I think it is pretty well aligned.

You know, we're not going to be extremely aggressive, but we certainly are hiring ahead of the curve because you want to be ready for all the opportunities and ready to drive the opportunities we see in the yeah. It does take time to to ramp people up and get them trained and get them out there with the client the client base in the most productive way. So yes, we're continuing to afford them fast.

To make sure. We're ahead of that but we're mindful that we want to make sure everyone Who's who hit the field is ready to go and redeem yourself.

Excellent congratulations I'll jump back in queue.

Yeah.

Thank you.

Our final question comes from the line of Amit well Manny.

With Piper your line is open.

Hi.

Thanks for taking my question.

I wanted to go back to one other question you addressed earlier about you know kind of being the sort of post IPO was that you provided some color on some of the customer conversations.

Can you talk a little bit more about the you know essentially the existing kind of mood of the workforce.

Are people kind of looking at the exit in and kind of thinking I'm, cashing out and going and going to a.

And I was just basically kind of retire I take a step back or are people kind of charged up and then the second part in terms of kind of kind of Victorian talent.

What kind of progress have you seen on the on the retrofit from insight.

Thanks, Arvind it's great.

You know I think one of the things that we benefit from that's a little unusual even for companies in Silicon Valley is.

We've been doing this building the company together as a team for a long time.

We built it as a bootstrap financing strategy, we never raise the diamond venture capital and we did it by working closely with these firms to figure out what they needed and to build a purpose built industry cloud platform today that is unlike anything else in the marketplace and there's a lot of.

Team commitment.

So building the great company that is going to transform this industry today and I think that spirit runs through the whole organization, we've assembled a group of.

Professionals, who come from southern different acquisitions over the years, we've integrated them slowly and carefully and built a single culture that is really driving towards being the winner in this marketplace and I think there's an infectiousness to that and our vision for that certainly the IPO is successful I'm very glad that we're able to say thank you to everybody who's.

Helped build the company as we should but I also feel like we have a incredible unusual bootstrap culture here, that's going to drive this business forward. So I'm optimistic about that and we've actually seen that to your second question a lot of the folks who have been with the company for a long time, who are have joined the company.

Pre IPO and who are joining the company now just after the organization has gone public are all saying that the IPO has an incredible.

Because that's an incredible opportunity for us to build a great company here and use the public standing up the business to the benefit of the clients and the organization and we're actually recruiting some incredible talent I also would say you know theres a lot of broader discussion in the market about.

People thinking about their lives and what they want to do and all those sorts of things and we're benefiting from that a lot of folks are looking at the company and applying we're getting some some unbelievable resumes coming to US saying. This is an incredible story I want to be part of it. So I'm encouraged about what the IPO is done for the talent base and the.

Enthusiasm of the organization.

Perfect and just a quick follow up are there are you know.

Are you talking about kind of some of the work you're doing with AI and.

Data science and stuff. So then the newer technologies and you know I think it's really no secret that our hiring talented expensive difficult.

You know a lot of them a long time to be with you know with some of the larger software companies.

But with that said that not that not that you are you now have a higher profile in it you know kind of kind of kind of bigger and better brand name.

And of course, sometimes even even another stock and I don't know if that so are you able to hone in a human to recruit a lot more of this AI data science talent that can and really kind of sharpened the.

Kind of the offering around around I.

On AI and automation.

I'm very proud of the AI team that we've assembled we have some incredible talent.

That has been working with the company for quite a while now and that team has recruited more AI.

Hey, I talent into the organization.

Over the years and I think we've got a particularly.

Differentiated angle on it which is that were looking specifically at applied AI.

How do we bring the real value of potentially I into the specific needs purpose built for this set of industry. So there's this very interesting combination.

Of.

Broad AI talent and industry specific knowledge that are developing these applied AI solutions that are really making a difference in our platform and for our clients generally and for this set of industries.

The professional and financial services firms that are made up of these.

Large groups of highly educated.

[noise] knowledge professionals, who sell their expertise and their advice on deals and.

Other engagements we've.

We've always felt that this is an incredible market.

For AI to be applied because it's so knowledge and information and data rich in the first place and yet they've been under served by the technology industry. So this is one of the simple reasons why it's such a central component of our overall strategy, it's a differentiator.

And it's the time to sell but it's also for this market. It can have an incredible return for all of the firms that put it in and so a lot of the folks who are looking at us and looking at the opportunity here. If you really love AI and you really see the potential this is an incredible place too.

To apply your skills to some of the most high value.

The applications that you can imagine out there so I really look at it AI as a centerpiece of our story going forward.

Terrific.

Last question for me you know suddenly kind of the demand environment has progressively improved through the year.

But with some of these kind of COVID-19 related concerns of that Delta and then all of that has that.

Has it been a dissection and with existing clients.

Nine or is that is that.

People are just kind of moving on and forward.

Demand seems to still be pretty good as you look ahead.

Well you know I think we went through.

Pretty significant.

Work transformation the way the whole world did.

Last February and March 2020.

And it's true that we were looking at.

More time in the office.

This summer.

Summer and autumn and everybody was.

And we knew it was going to be a more flexible environment. We were never going to go all the way back to the model that we had had previously and there actually was a lot of benefit of productivity that people discovered from this work from home market, particularly in both the markets, we serve and in their own operation.

So I think the fact that you know tragically Delta has.

Arrived and is shaping up plans for everybody. It in theory could have slowed things down, but I think in practice. What has happened is we've just continued to execute in the work from home model. There is an opportunity and our teams for folks to work from offices, if they need to and we have some folks who are doing that but we haven't required it.

And we'll see how it plays out just like everybody else does but I think from a productivity and a.

Execution standpoint, we benefit because both our end market and we worked perfectly fine in both total work from home and and hybrid and so I actually think that this is one of the silver linings of a tragic couple years since that we've found a working model that really works well and we're doing well in it.

Very helpful. Thank you very much.

Thank you.

Thank you I'm showing no further questions in the queue.

Now like to turn the call back over to John for closing remarks.

Okay, everybody, we really appreciate your attention and support for US we have a great Q4 behind us and we're excited about year ahead. If there's anything that we can do to talk to folks as follow up we're happy to do that thanks for your time today, and we'll look forward to talking to you next quarter.

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation you may now disconnect.

[music].

Yes.

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Ladies and gentlemen, thank you for standing by and welcome to the <unk> earnings Conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask the question. During this session you will need to press Star then one on your telephone.

If you require any further assistance. Please press Star then zero I would now like to hand, the conference over to your speaker for today, Mr. Barry Hudson you may begin.

Hello, everyone. Welcome to ends up fourth quarter fiscal year 2021 earnings conference call on.

On the call with me today are John Hall, CEO of income and Steve Robertson, the company's Chief Financial Officer.

During the course of this conference call. We may make forward looking statements regarding trends strategies and the anticipated performance of our business.

These forward looking statements are based on management's current views and expectations.

Intel certain assumptions made as of today's date and are subject to various risks and uncertainties described in our SEC filings and other publicly available documents, including those related to the impact of COVID-19 on our business.

Financial services industry and global economic conditions.

And it's absolutely playing any obligation to update or revise any forward looking statements.

Further on today's call. We will also discuss certain non-GAAP metrics that we believe aid understanding of our financial results.

A reconciliation of comparable GAAP metrics can be found in today's earnings release, which is available on our website and as an.

The exhibit to the form eight.

8-K furnished with the SEC prior to this call with that I'll hand, the call over to John.

Thanks Barry.

Good afternoon. Thank.

Thank you all for joining us for <unk> first earnings call as a public company.

I'm here with our CFO, Steve Robertson.

And today, we'll spend some time, providing you a few recent highlights sharing our strong fourth quarter 2021 results.

Viewing our full fiscal year and providing insight into how we're thinking about the year ahead.

<unk> was founded in 2000.

With a focus on helping law firms manage and integrate their data.

In the year since we've expanded building from that foundation to deliver a modern industry cloud for professional and financial services firms.

Leveraging this market position, we ended fiscal year 2021 on a high note with a great fourth quarter demonstrate.

Demonstrating continued growth and strong execution across our businesses.

Our high growth cloud business is the key driver of our overall annual recurring revenue.

And also of our total revenue growth.

As digital transformation in the markets, we serve leads to increased cloud adoption.

Steve will provide specific details on comments around our results and guidance during his remarks, but I'd like to share with you a few highlights.

Throughout the last year, we have seen professional and financial services firms accelerate their adoption of new technologies and pivot to the cloud.

You can see the market's ongoing cloud adoption and our cloud first strategy at work.

<unk> in our results.

As we ended our first fiscal year June 30.

<unk> cloud air are up $110 million, an increase of 48% from the prior year.

Cloud <unk> is now 52% of our total air are.

Up from 43% of the total a year ago.

And our total air are of $212 million increased 23% year over year.

We're pleased with the results of our first quarter as a public company.

In Q4, our SaaS and support revenue increased 26% year over year to $43.0 million.

And by continued adoption of our cloud solutions.

While total revenue increased 29% year over year to $64.0 million.

We also completed our IPO during the fourth quarter.

And I'd like to take this opportunity to thank the employees clients partners Advisors Board members and most of all the investors who helped us reach this significant milestone.

We had the pleasure of speaking with many of you during that process, but for those of you, whom we haven't yet met I'll take a few moments here on our first earnings call to share an overview of in tap the solutions, we provide and the markets we serve.

As I mentioned in tap was founded 20 years ago as a developer of solutions designed to help law firms better manage their data.

Since then we've expanded our vision and our scope and we now deliver a full cloud platform to the broader industry professional and financial services firms.

These firms are the central facilitators of the world's economy.

And as a group they make up a large and durable market with a serviceable addressable market of $10 billion and a total addressable market of over $24 billion.

<unk> is very well positioned for continued growth and profitability.

As you are aware nearly every industry has made or is making the transition to the cloud the.

The professional and financial services industry is no different.

For the past decade, we have seen the shifts steadily taking place in these markets as more firms look to eliminate the technical debt of legacy on premises solutions flex to accommodate dispersed remote workforces and keep pace by better accessing and applying data to business decisions.

All of this was happening even before the impacts of Covid.

As a result, our cloud business is expanding rapidly.

Going forward, we are targeting all new sales in the cloud.

And expect our on premises annual subscription license business to decline slowly as a portion of those licenses are migrated to the cloud upon renewal.

It's worth noting that unlike companies that sell physical products professional and financial services firms, so knowledge and expertise.

Digital transformation in these industries has taken a special emphasis.

On institutionalizing and harnessing the firm's knowledge.

Across a large population of working professionals.

Because their business is so specialized these firms tend to experience greater challenges successfully adopting and applying technology that hasn't been built with their specific needs in mind.

For too long the industries that we serve have found themselves without technology systems build for the very complex and regulated way they do business.

As investment professionals yourselves, you may very well have firsthand experience with this issue.

The core of the market is served today by homegrown internally developed solutions that are expensive to build and maintain lack modern features and are often difficult to scale.

Many firms also still rely on legacy solutions built on aging architecture with limited capabilities usability and functionality.

Legacy solutions have traditionally not been able to keep up with the needs of the business and the clients.

We grew the tap business competing with this part of the market.

And we still replace these systems consistently, particularly as more firms embraced the transition to the cloud.

Finally, we found that the firms who make up this specialized industry struggle to make use of the traditional horizontal software systems.

Traditional CRM and ERP systems were built to support traditional product companies.

Not for the complex needs of professional and financial services firms, who rely on their people their expertise and their relationships to drive their business.

As a result, these horizontal systems require complex and extensive customization.

And even then they still often fall short.

<unk> is the antidote to homegrown legacy and horizontal solutions.

We are building the modern cloud platform based on a deep understanding of what these clients need.

You are probably familiar with the vertical industry cloud model.

And its success in the life Sciences and insurance industries.

In tap is using this cloud strategy to enable the digital transformation of the market of professional and financial services firms.

Our technology solutions are more advanced and purpose built than other offerings.

We will continue to innovate and invest in the entire platform to sustain and grow our market advantage.

There is an enormous market opportunity ahead for in tab for those of you who are or have been lawyers accountants bankers or investors yourselves, our company and our solutions are built for you.

We currently go to market with our industry cloud under two different solution brands.

Each brand is a configuration of the same underlying platform and technology.

Deal cloud, it's for the financial services sector.

And manages firms client deal and investor relationships prospective clients and investments current deals and compliance activities.

For investment banks and advisory firms this translates into enhanced coverage models.

Greater win rates and higher success fees.

For investors it helps increase origination volume.

Support investment selection.

And drive greater returns.

One place is for professional services firms and helps manage firm knowledge and go to market strategies.

Business development risk and compliance and engagement delivery.

This better enables legal accounting and consulting firms to win and grow their clients to effectively manage risk and compliance obligations and to execute work more efficiently and profitably.

Acquisitions have always been a part of our strategy to expand our technology capabilities.

We have completed seven successful acquisitions to date, most recently the acquisition of Rep store in Q4.

Which provides us access to rep stores, Microsoft teams and office 365 enterprise content management and collaboration tools.

Which are designed specifically for professional and financial services firms.

Today, we serve more than 1900 premier firms in 40 countries.

That number is a noticeable increase from prior periods as it now includes roughly 200 clients related to our fourth quarter acquisition of Rep store.

We're proud of the clients, we serve which include 96 of the amyloid top 100 U S law firms.

Seven of the top eight global accounting firms.

And over 1000 of the world's largest private capital and investment banking firms.

Our enterprise go to market approach, primarily focuses on the largest firms with a land and expand strategy at its core.

The approach starts with our large and deeply entrenched client base, many of whom have been with us for a long time.

There is tremendous room to expand within our base with more solutions more seats and deeper account penetration.

For smaller firms, we tend to go to market with the full platform.

As we move upmarket to the larger enterprise class firms, we take a more modular approach.

Instead of ripping out their existing technology investments all at once will focus on our key areas of improvement for a goal that our clients are trying to achieve.