Q2 2022 Intapp Inc Earnings Call

Good day, ladies and gentlemen, thank you for standing by.

Speaker 1: Ladies and gentlemen, thank you for standing by and welcome to INTEP's second quarter of fiscal year 2022 earnings conference call. At this time, all participants are on a listen only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press the star then the one key on your touch-tone telephone. If you would call operator assistance, please press star then zero. I would now like to hand the conference over to your speaker host, David Tran, Senior Vice President of Investor Relations.

Welcome to <unk> second quarter fiscal year 2022 earnings conference call at.

At this time all participants are in a listen only mode. After the speaker's presentation there'll be a question and answer session to ask a question. During this session you will need to press. The Star then the one key on your Touchtone telephone.

We will go offer assistance. Please press Star then zero.

I'd now like to turn the conference over to your Speaker host, David Chang Senior Vice President of Investor Relations.

Thank you and welcome to <unk> second quarter fiscal year 2022 earnings conference call.

Speaker 2: Thank you. Welcome to INTAP's second quarter fiscal year 2022 earnings conference call.

Speaker 2: On the call with me today are John Hall, Chairman and CEO of INTAP, and Steve Robertson, Chief Financial Officer.

On the call with me today are John Hall, Chairman and CEO of <unk>, Steve Robertson Chief Financial Officer.

During the course of this conference call, we may make forward looking statements regarding trends strategies and.

Speaker 2: During the course of this conference call, we may make forward-looking statements regarding trends, strategies, and the anticipated performance of our business.

The anticipated performance of our business.

Speaker 2: These forward-looking statements are based on management's current views and expectations, entail certain assumptions,

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

And sales certain assumptions made as of today's date.

Speaker 2: and are subject to various risks and uncertainties, subscribe to our SEC filings and other publicly available docs.

And are subject to various risks and uncertainties described in our SEC filings and other publicly available documents.

In fact disclaims any obligation to update or revise any forward looking statements.

Speaker 2: In-taps disclaims any obligation to update or revise any forward-looking statement.

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

Speaker 2: Further on today's call, we will also discuss certain non-GAAP metrics that we believe aid in the understanding of our financial results.

Speaker 2: A reconciliation to comparable gap metrics can be found in today's earnings release, which is available on our website and as an exhibit to the Form 8K furnished with the SEC prior to this call. With that, I'll hand the conversation over to John . Thank you and welcome to the team, David.

A reconciliation to comparable GAAP metrics can be found in today's earnings release, which is available on our website and as an exhibit to the form 8-K furnished with the SEC prior to this call with that I'll hand, the conversation over to John .

Thank you and welcome to the team David.

Good afternoon, everyone. Thank you for joining us.

We ended our fiscal second quarter and calendar year 2021 with continued dedication to our corporate mission.

Speaker 2: We ended our fiscal second quarter and calendar year 2021 with continued dedication to our corporate mission.

Speaker 2: to enable professional and financial service and firms to better connect their people, processes, and data through our AI-powered software solutions.

To enable professional and financial services firms to better connect their people processes and data through our AI powered software solutions.

As a reminder for those of you who may be new to our story.

Speaker 2: Our team has focused on this sector for more than 20 years.

Our team is focused on this sector for more than 20 years.

Our clients are the professionals, who work in the large professional and financial services firms that were traditionally organized as partnerships.

Speaker 2: Our clients are the professionals who work in the large professional and financial services firms that were traditionally organized as partnerships.

This is a large global industry that brings in three trillion dollars in <unk>.

Speaker 2: This is a large global industry that brings in $3 trillion in fees every-

Fees every year.

But it has been under served and overlooked by the technology industry. Because it's firms are organized differently than the traditional corporations that make up the rest of the technology market.

Speaker 2: but it has been underserved and overlooked by the technology industry because its firms are organized differently.

Speaker 2: than the traditional corporations that make up the rest of the technology market.

Traditional corporate employees tend to be organized into functional departments like sales or finance or it.

Speaker 2: Traditional corporate employees tend to be organized into functional departments, like sales or finance or IT.

Their workflows and data needs are specialized to those functions.

Speaker 2: Their workflows and data needs are specialized to those functions.

Speaker 2: In contrast, the professional clients whom we serve grow their careers by developing and leveraging individually specialized knowledge and expertise about their chosen domain.

In contrast, the professional clients, whom we serve.

Their careers by developing and leveraging individually specialized knowledge and expertise about their chosen domain.

Speaker 2: Our professionals drive their career success and their firm's success by leveraging that expertise to develop and build key investor and client relationships, to grow and retain business with those clients, and ultimately to deliver great results and returns for their clients on a wide range of projects.

Our professionals drive their career success and their firms success by leveraging that expertise to develop and build key investor in client relationships to grow and retain business with those clients and ultimately to deliver great results and returns for their clients on a wide range of projects.

The unique working model that these professionals execute everyday is different from the traditional sales our operations department workflows that traditional CRM and ERP systems were designed for.

Speaker 2: The unique working model that these professionals execute every day is different from the traditional stales or operations department workflows that traditional CRM and ERP systems were designed.

Speaker 2: We built our cloud based on 20 years of working directly with these firms.

We feel our cloud based on 20 years of working directly with these firms in perhaps purpose built industry cloud understands these professionals focus to build and develop their own area of expertise and then arms them with the modern power of AI to help them make.

Speaker 2: Intest, purpose-built industry cloud understands these professionals focus to build and develop their own area of expertise.

Speaker 2: And then arms them with the modern power of AI to help them make better, more market data driven, more insightful and more competitive judgments and recommendations.

Better more market data, driven more insightful and more competitive judgments and recommendations.

Speaker 2: Intest has built the modern industry cloud for the global professional and financial service.

<unk> has built the modern industry cloud for the global professional and financial services industry.

Today professional and financial services firms are rapidly adopting cloud for several reasons, including.

Speaker 3: Today, professional and financial services firms are rapidly adopting cloud for several reasons.

Speaker 3: including seeking greater agility to respond to market changes, improving access to data and market intelligence.

Including seeking greater agility.

To respond to market changes.

Proving access to data and market intelligence.

Speaker 3: and better connecting their global workforce and the broader ecosystem.

And better connecting their global workforce and the broader ecosystem.

We've established a trusted brand in these markets due to our deep knowledge of their unique workflows and our industry leading technology architecture.

Speaker 3: We've established a trusted brand in these markets.

Speaker 3: due to our deep knowledge of their unique workflows and our industry leading technology architects.

Speaker 3: With our reputation and our specialized product strategy, we are focused on leading the cloud transformation for these...

With our reputation and our specialized product strategy, we are focused on leading the cloud transformation for these firms.

The market demand and acceptance of our cloud solution is evident.

Speaker 3: The market demand and acceptance of our cloud solution is evident.

In our second quarter, our cloud <unk> grew 52% to $135 3 million.

Speaker 3: In our second quarter, our cloud ARR grew 52% to 135.2%.

Speaker 3: Cloud now represents 56% of our total ARR of $240 million, which is up 27% of our total ARR of $240 million.

Cloud now represents 56% of our total <unk> of $240 million.

Which is up 27% year over year.

We earned SaaS and support revenue of $47 million up 36% year over year and.

Speaker 3: We earned SaaS and support revenue of $47 million, up 36%.

In total revenue of $64 7 million up 30% year over year.

Speaker 3: and total revenue of sixty four point seven million dollars up 30 percent year over year.

Speaker 3: We ended December serving over 2000 firms in over 40 countries around the globe.

We ended December serving over 2000 firms in over 40 countries around the globe.

Speaker 3: During our November call, I outlined several of our unique technology capabilities and how they directly address the critical needs of our clients.

During our November call I outlined several of our unique technology capabilities and how they directly address the critical needs of our clients.

Today I'll share a bit about our go to market organization to better illustrate how we interact with clients and prospects to drive demand for our solutions and deliver our client success.

Speaker 3: to better illustrate how we interact with clients in prospects, to drive demand for our solutions and deliver clients.

Speaker 3: We have evolved a unique go-to-market model to serve this industry based on our two decades of focus on the professional investors and advisors who work in these firms.

We have evolved a unique go to market model to serve this industry based on our two decades of focus on the professional investors and advisers who work in these firms.

Leveraging our go to market organization, our entire business has moved to a SaaS model.

Speaker 3: leveraging our go-to-market organization, our entire business has moved to a business can be something so we handle, so that we can all is done so much.

Speaker 3: and we are enabling our target industry to make its own digital transformation to the cloud.

And we are enabling our target industry to make its own digital transformation to the cloud.

Speaker 3: This shift to the cloud is both accelerating our growth and improving outcomes for our clients, which drives the virtual cycle of continued adoption and net revenue returns.

This shift to the cloud, it's both accelerating our growth and improving outcomes for our clients, which drives the virtuous cycle of continued adoption and net revenue retention.

Our client facing teams include industry experts themselves, who have deep sector knowledge specific to the private capital investment banking legal accounting and consulting markets.

Speaker 3: Our client-facing teams include industry experts themselves.

Speaker 3: who have deep sector knowledge specific to the private capital investment banking, legal accounting and consulting.

Speaker 3: Our integrated sales and marketing programs at the industry level drive repeatable and predictable pipeline growth through both inbound lead generation and cross selling programs.

Our integrated sales and marketing programs at the industry level drive repeatable and predictable pipeline growth through both inbound lead generation and cross selling programs.

Our go to market team applies both account expertise and solution expertise resources to this pipeline to surround each opportunity.

Speaker 3: Our go-to-market team applies both account expertise and solution expertise resources to this pipeline to surround each opportunity.

Speaker 3: Our sales engineering experts focus on key solution use cases, such as coverage management, relationship management, deal management, marketing and business development, operations and finance, and risk and compliance.

Our sales engineering experts focus on key solution use cases, such as coverage management relationship management deal management, marketing and business development operations, and finance and risk and compliance.

Speaker 3: Our ability to deliver unique proposals, demonstrations, and business cases to our clients is a significant competitive advantage and leads to high wind rates in all of our markets.

Our ability to deliver unique proposals demonstrations and business cases to our clients is a significant competitive advantage and leads to high win rates in all of our markets.

For example, our team recently won a strategic opportunity at IQ EQ, a leading investor services group with over 3700 global employees and assets under administration of over 500 billion.

Speaker 3: For example, our team recently won a strategic opportunity at IQ EQ, a leading investor services group with over 3,700 global employees and assets under administration of over $500 billion.

Our solution will help enhance the relationship management capabilities of the firm.

Speaker 3: Our solution will help enhance the relationship management capability.

The ability of our services and technology teams to configure our platform to the unique use cases of IQ EQ was critical to both winning the business and driving success for the client.

Speaker 3: The ability of our services and technology teams to configure our platform to the unique use cases of IQ EQ was critical to both winning the business and driving success for the client.

Speaker 3: The new platform will support information sharing, firm-wide knowledge capture, and expanded visibility into client relationships to help the IQ EQ team to better support the expanding needs of clients.

The new platform will support information sharing firm wide knowledge capture and expanded visibility into client relationships to help the IQ EQT to better support the expanding needs of clients.

Our industry experts and pre sales and services bring this to life for clients like IQ EQ.

Speaker 3: Our industry experts in presales and services bring this to life for clients like IQ EQ. This investment in our own

This investment in our own deep bench market expertise building a unique team over many years, who know and are known in this market represents a sustainable competitive advantage for <unk>.

Speaker 3: Building a unique team over many years who know and are known in this market represents a sustainable competitive advantage for INTAP.

Our go to market strategy has also developed ways to successfully engage with firms at different client sizes.

Speaker 3: Our Go-to-Market Strategy has also developed ways to successfully engage with firms at different client sites.

We generally offer smaller firms our full platform and its suite of solutions, enabling the firm to build its operations around our industry cloud and we grow users with the firm and as we bring out new functionality.

Speaker 3: We generally offer smaller firms our full platform and its suite of solutions.

Speaker 3: enabling the firm to build its operations around our industry cloud. And we grow users with the firm and as we bring out new functionality.

For example, graphite capital.

Speaker 3: For example, graphite capital, a leading UK mid-market private equity firm, recently selected our cloud platform to boost the efficiency of their deal, value creation, and investor relations.

Leading U K mid market private equity firm recently selected our cloud platform to boost the efficiency of their deal value creation and Investor relations teams.

This is a good example of our integrated marketing sales and technical engagement with clients.

Speaker 3: This is a good example of our integrated marketing, sales and technical engagement.

After a series of discovery meetings supported by our marketing program, our sales and sales engineering team showcase the potential of the technology for the firm's leaders.

Speaker 3: After a series of discovery meetings supported by our marketing program, our sales and sales engineering teams showcased the potential of the technology

Working collaboratively with the client we prioritized use cases that are most important to the firm's strategy.

Speaker 3: Working collaboratively with the client, we prioritize use cases that are most important to the firm's strategy. And we're now in the process.

And we're now in the process of deploying those.

Speaker 3: We will continue to work with them over time to support their evolving needs as the firm grows.

We will continue to work with them over time to support their evolving needs as the firm grows.

Larger firms often select a phased approach to adapting and SAP cloud platform.

Speaker 3: Larger firms often select the phase approach to adopting the Integ cloud plan.

Speaker 3: We recently onboarded an independent global business advisory firm with over 6,000 employees.

We recently on boarded an independent global business advisory firm with over 6000 employees.

During the sales discovery process, we identified a specific use case to support improved compliance around their business intake process with a focus on some complex regulatory requirements in Europe .

Speaker 3: During the sales discovery process, we identified a specific use case to support improved compliance around their business intake process with a focus on some complex regulatory requirements in Europe .

Our pursuit required a deep understanding of EU regulations sophisticated technical demonstrations and a strong integration with their existing enterprise strategy.

Speaker 3: Our pursuit required a deep understanding of EU regulation.

Speaker 3: sophisticated technical demonstrations and a strong integration with their existing enterprise IT strategy.

Working collaboratively with the firm's experts we identified a strategy for our cloud platform to both solve their immediate requirements.

Speaker 3: We identified a strategy for our cloud platform to both solve their immediate requirements and to set the firm up for additional adoption over time.

And to set the firm up for additional adoption over time.

Speaker 3: We see significant growth opportunity within our clients as we expand, upselling with more adoption and cross-selling.

We see significant growth opportunity within our clients as we expand up selling with more adoption.

And cross selling with new solutions.

As we expressed in our S. One we believe there is over $1 billion in expansion revenue opportunity in our top 100 clients alone.

Speaker 3: As we expressed in our S1, we believe there is over $1 billion in expansion revenue opportunity in our top 100 clients.

We invest in both client support and client relationship management to ensure that we continue to delight our clients.

Speaker 3: We invested both client support and client relationship management to ensure that we continue to delight our

Speaker 3: For example, a large global law firm and a long standing in-depth client using multiple in-depth solutions recently sought to modernize their approach to handling conflicts, business, and taken over all risks.

For example, a large global law firm and a long standing and tech clients using multiple solutions recently thought to modernize their approach to handling conflicts business and taken overall risk management.

Speaker 3: There will soon deploy Intest Cloud solutions for risk and intake, which will allow them to move faster to support client needs while ensuring full adherence to complex regulatory requirements.

They will soon deploy intest cloud solutions for risk and intake.

This will allow them to move faster to support client needs, while ensuring full adherence to complex regulatory requirements.

Speaker 3: As part of this project, we are also helping the firm accelerate cloud migration for their on-prem Intest solutions to our industry class.

As part of this project. We are also helping the firm accelerated cloud migration for their on Prem in tap solutions to our industry cloud.

Speaker 3: Our go-to market also includes a strong client marketing proof.

Our go to market also includes a strong client marketing program in.

Speaker 3: In Q2, we hosted Intap Connect 21, our annual user.

In Q2, we hosted inter connect 21, our annual user conference.

Speaker 3: Over a two-day period, more than 1,700 registered guests attended keynotes and sessions led by experts and peers in the professional and financial services.

Over a two day period more than 1700 registered guests attended keynotes and sessions led by experts and peers in the professional and financial services industry.

Speaker 3: Leaders from multiple sectors discuss the changing landscape and how to find opportunities. Build the right teams and harvest knowledge to drive better out.

Leaders from multiple sectors discuss the changing landscape and how to find opportunities build the right teams and harvest knowledge to drive better outcomes.

Speaker 3: This event is just one way our continued voter market program engages our clients in strategic discussions around how they can modernize and adopt solutions that better connect their people, processes and data.

This event is just one way or continue to go to market program engages our clients in strategic discussions around how they can modernize and adopt solutions that better connect their people processes and data.

Speaker 3: These examples illustrate our industry's specific go-to-market function and rely on a few key in-tap advantage.

These examples illustrate our industry specific go to market function and rely on a few key.

Advantages.

Speaker 3: First, our low-code platform is designed for the industry.

First our low code platform is designed for the industry.

Speaker 3: and is configurable for each firm, allowing each client's unique needs to be served without requiring custom.

And as Configurable for each firm allow.

Allowing each client's unique needs to be served without requiring custom code.

Speaker 3: Next, our investment in experts with the experience in these industries who can help identify and showcase how our technology supports and meets the requirements of industry-specific use cases.

Next our investment and experts with the experienced in these industries, who can help identify and showcase how our technology supports and meets the requirements of industry specific use cases for each client.

Next our services and client success teams.

Speaker 3: Next, our services and client success teams, along with our

Along with our partner ecosystem focus on not just successful deployment, but successful adoption of our solutions.

Speaker 3: focus on not just successful deployment, but successful adoption of ours.

Finally in concert with our clients over the past 20 years, we have developed a unique go to market approach that meets the needs of the special partner led firms.

Speaker 3: Finally, in concert with our clients over the past 20 years, we have developed a unique go-to-market approach that meets the needs of these special partner-led firms.

We have developed a well earned reputation as a trusted provider within our client community and today, we often generate new business through network effects within this community.

Speaker 3: We have developed a well-earned reputation as a trusted provider within our client community.

Speaker 3: And today we often generate new business through network effects within this

Speaker 3: Our long-standing client relationships act as a significant driver of new opportunities for us as professionals move between firms.

Our long standing client relationships act as a significant driver of new opportunities for us as professionals move between firms.

We believe our unique go to market model designed to serve the specific needs of this industry. It's a sustainable long term competitive advantage.

Speaker 3: We believe our unique go-to-market model designed to serve the specific needs of this industry is a sustainable long-term competitive.

Speaker 3: Our teams are working across the firm with the technology and departmental leaders that support the firm and the professionals themselves.

Our teams are working across the firm with the technology and departmental leaders that support the firm and the professionals themselves.

As our industry accelerates its move to the cloud our teams will guide all of these constituents on how to best take advantage of the transformation.

Speaker 3: As our industry accelerates its move to the cloud, our teams will guide all these constituents on how to...

Speaker 3: As we mentioned on our last call, over the past year, we have invested in building out a larger integrated go-to-market function to pursue our large and growing

As we mentioned on our last call over the past year, we have invested in building out a larger integrated go to market function to pursue our large and growing Tam.

Speaker 3: We will continue to invest as long as we see opportunity for growth, particularly to ensure that we remain the leader as our clients make the move to the cloud.

We will continue to invest as long as we see opportunity for growth, particularly to ensure that we remain the leader as our clients make the move to the cloud.

We hired aggressively in Q2.

Speaker 3: We hire aggressively in Q2 and we are bullish that these new hires will help us to continue the capitalized on the market opportunity in front of us.

And we are bullish that these new hires will help us to continue to capitalize on the market opportunity in front of us.

Speaker 3: As our cloud continues to grow, we are able to drive further growth through adoption and expansion of this sticky long-term subscription revenue.

As our cloud continues to grow we are able to drive further growth through adoption and expansion of the sticky long term subscription revenue.

I'll now turn the call over to Steve to discuss our financial results.

Thanks, John and thanks, everyone for joining us today before I go through the numbers I'd like to quickly review a few fundamentals of our financial model as John discussed the professional and financial firms that we serve are rapidly adopting purpose built cloud solutions.

Speaker 4: Thanks, John , and thanks everyone for joining us today. Before I go through the numbers, I'd like to quickly review a few fundamentals of our financial model. As John discussed, the professional and financial firms that we serve are rapidly adopting purpose-built cloud cloud.

Speaker 4: Today, nearly all of our new customer wins are for cloud solutions, and recurring revenue makes up approximately 85% to 90% of our total revenue.

Today, nearly all of our new customer wins are for cloud solutions and recurring revenue makes up approximately 85% to 90% of our total revenue.

Speaker 4: We believe cloud ARR and total ARR metrics are good indicators of the consistent growth of our annual recurring soft.

We believe cloud IRR in total IRR metrics are good indicators of the consistent growth of our annual recurring software business.

For the second quarter of fiscal 2022, our cloud <unk> grew 52% year over year, and our total <unk> grew 27% year over year.

Speaker 4: For the second quarter of fiscal 2022, our cloud ARR grew 52% year-over-year, and our total ARR grew 27% year-over-year.

In terms of revenue recognition cloud <unk> recognized that SaaS revenue ratably, following a new sale or renewal.

Speaker 4: In terms of revenue recognition, cloud air are as recognized as SaaS revenue, radibly following a new sale or renewal.

Speaker 4: On premises ARR is recognized in two parts, 50% as description license revenue recognized up front at the time of the fail or renewal and 50% as support revenue recognized rateably and included in our SAS and support revenue law.

On premises <unk> is recognized in two parts, 50% subscription license revenue recognized upfront at the time of the sale or renewal and 50% and support revenue recognized Ratably and included in our SaaS and support revenue line.

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

Speaker 4: Because it is recognized grateably, staff and support revenue will generally be more predictable quarter to quarter.

In contrast subscription license revenue can vary quarter to quarter, because it is recognized as revenue episodically when their subscription licenses are initially delivered or renewed.

Speaker 4: In contrast, subscription license revenue can vary quarter to quarter because it is recognized as revenue episodically when the subscription licenses are initially delivered or renew.

Speaker 4: Okay, moving to our numbers. Cube 2 is another strong quarter for INTAP as follows.

Okay moving to our numbers Q2 was another strong quarter for in tab as follows.

Total revenue was $64 7 million up 30% year over year, driven primarily by continued strong sales of our cloud solutions as well as by solid growth in professional services revenue.

Speaker 4: Total revenue was 54.7 million, up 30% year over year, driven primarily by continued strong sales of our cloud solutions, as well as by solid growth and professional...

SaaS and support revenue was 47.0 million up 36% year over year, reflecting both new sales to new clients and Upsells and cross sells to existing clients of <unk> purpose built cloud solutions.

Speaker 4: SAS and support revenue was $47.0 million, up 36% year over year, reflecting both new sales to new clients and upsells and cross-sells to existing clients of Vintaf's Purpose Dolt Cloud Salute.

Subscription license revenue was $9 3 million compared to $9 8 million in the prior year period, primarily reflecting renewals of on premises subscription licenses.

Speaker 4: The description license revenue was 9.3 million compared to 9.8 million in the prior year period. Primarily, we're citing renewals of on-premises description license.

Speaker 4: As noted previously, this revenue line item is somewhat variable on a quarterly basis.

As noted previously this revenue line item is somewhat variable on a quarterly basis.

Speaker 4: Professional services revenue is 8.4 million, as compared to 5.2 million in the prior year period, perfecting implementations of new software in a more normalized market, as compared to the COVID influence prior year period.

Professional services revenue was $8 4 million as compared to $5 2 million in the prior year period.

The implementations of new software and a more normalized market as compared to the COVID-19 influenced prior year period.

Overall, we continued to execute our land and expand model ending the quarter with more than 2000 clients 467 of which had <unk> of more than $100000 up from 380 in the prior year period.

Speaker 4: Overall, we continued to execute our land and expand model, ending the quarter with more than 2,000 clients. 467 of which had ARR of more than $100,000, up from 380 in the prior year period.

In addition, we up sold and cross sold our existing clients such that our trailing 12 months net revenue retention rate was above our expected range of 108% to 112% for the second quarter in a row.

Speaker 4: In addition, we upsold and cross-sold our existing clients, such that our trailing 12-month net revenue retention rate was above our expected range of 108% to 112% for the second quarter in a row.

Before discussing gross margins expenses and profitability. Please note that I'll 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 our earnings press release and supplemental financial tables.

Speaker 4: Before discussing gross margins, expenses and profitability, please note that I will be discussing non-GAP results going forward. As a reminder, our GAAP financial results, along with the reconciliation between GAP and non-GAP results, can be found in our earnings press release and its supplemental financial tips.

Gross margin was 68, 5% as compared to 68, 9% in the prior year period.

Speaker 4: Gross margin was 68.5% as compared to 68.9% in the prior period, reflecting a slight mixed shift in the current period.

So I think a slight mix shift in the current period.

Our recurring revenue solutions gross margin was up modestly year over year to 82, 5%.

Speaker 4: For our recurring revenue solutions, Gross Margin was a modestly year over year to 82.5%.

Speaker 4: Operating expenses were $44.5 million, a $12.3 million increase year over year, as we continue to invest in sales, marketing, and product development to support our growth.

Operating expenses were $44 5 million, a $12 3 million increase year over year as we continued to invest in sales marketing and product development to support our growth.

Speaker 4: As compared to the prior year's quarter, this spend reflects expenses of being a publicly traded company, as well as a more normalized spending pattern than during the second quarter of fiscal 2021, when we were still prudently managing the uncertainty of the COVID pandemic.

As compared to the prior year's quarter. This spend reflects expenses of being a publicly traded company as well as a more normalized spending pattern than during the second quarter of fiscal 2021, when we were still prudently managing the uncertainty of the Covid pandemic.

Speaker 4: Sales and marketing expense with 18.7 million, a 5.5 million increase year over year, as a function of increased head count and sales commission investments to capture new business and our growing market.

Sales and marketing expense was $18 7 million or $5 $5 million increase year over year as a function of increased head count and sales commission investments to capture new business in our growing markets.

Speaker 4: R&D expenses 13.1 million, a 2.0 million increase year over year, as we increase TedCount and made investments in our product road.

R&D expense was $13 1 million, a 2.0 million increase year over year as we increased head count and made investments in our product roadmap.

Speaker 4: GNA expense was 12.6 million, a 4.8 million increase year-over-year, in line with expected expense increases associated with being a publicly traded company.

G&A expense was $12 6 million or $4 8 million increase year over year in line with expected expense increases associated with being a publicly traded company.

non-GAAP operating loss was <unk> 2 million as compared to our second quarter fiscal 2021 operating profit of $2 1 million, primarily reflecting the year over year increase in operating expenses just discussed.

Speaker 4: Non-GAP operating loss was a 0.2 million as compared to our second quarter fiscal 2021 operating profit of 2.0 million.

Speaker 4: Primarily reflecting the u-over-year increase in operating expenses just discuss.

Speaker 4: Non-GAP net loss per share was fractionally negative in the second quarter of fiscal 2022. As compared to a loss of 12 cents in the second quarter of fiscal 2021, primarily we're citing a year of a year of reduction in interest expense and an increase in the weighted average share.

non-GAAP net loss per share was fractionally negative in the second quarter of fiscal 2022 as compared to a loss of <unk> 12.

In the second quarter of fiscal 2021, primarily reflecting a year over year reduction in interest expense and an increase in the weighted average share count.

Turning to the balance sheet. We ended the second quarter was $56.0 million in cash and cash equivalents, an increase of $18 4 million from the end of fiscal 2021 and zero debt outstanding.

Speaker 4: Turning to the balance sheet, we ended the second quarter with 56.0 million in cash and cash equivalent, an increase of 18.4 million from the end of fiscal 2021 and zero debt outskins.

Speaker 4: Council receivable decreased 8.1 million since the end of fiscal 2021 in line with the expected seasonality of our Billings and Collections.

Accounts receivable decreased $8 1 million since the end of fiscal 2021 in line with the expected seasonality of our billings and collections.

Okay.

Speaker 4: In our last quarter, we told you that we would forward invest in growth and we did so through strong go-to-market hiring during Q2. However, a number of our Q2 hires pushed their start days to January . And Amicon-related factors temporarily reduced our TNE and marketing program expenses for Q2. A trend we expect will evade in Q3.

Last quarter, we told you that we would forward invest in growth and we did so through strong go to market hiring during Q2. However, a number of our Q2 hires pushed their start dates to January and Omnicom unrelated factors temporarily reduced our <unk> and marketing program expenses for Q2.

We expect will abate in Q3.

Speaker 4: Because of these factors, and because we continue to see opportunities to forward and invest in sales, marketing, and R&D to drive further growth, we are raising our profitability guidance somewhat moderately at this time. We expect to manage the business for positive free cash flow while running modest operating losses in line with our previous guidance for the next few quarters.

Because of these factors and because we continue to see opportunities opportunities to afford to invest in sales marketing and R&D to drive further growth.

We are raising our profitability guidance somewhat moderately at this time, we expect to manage the business for positive free cash flow, while running modest operating losses in line with our previous guidance for the next few quarters.

Now turning to guidance.

For the third quarter of fiscal 'twenty, two we expect SaaS and support revenue of between 47% and $48 billion.

Speaker 4: For the third quarter of fiscal 22, we expect SAS and support revenue between 47 and 48 million. And total revenue in the range of 65 to 66.

Total revenue in the range of $65 to $66 million.

We expect a non-GAAP operating loss in the range of $5 million to $6 million and a non-GAAP net loss per share in the range of nine to 11.

Speaker 4: We expect a non-GAP operating loss in the range of five to six million, and a non-GAP net loss per share in the range of nine cents to 11 cents, using a basic share count of approximately 61 million common shares out there.

Using a basic share count of approximately 61 million common shares outstanding.

For the full year fiscal 'twenty, two we expect SaaS and support revenue of between 185 and $189 million.

Speaker 4: For the full year fiscal 22, we expect sassant support revenue of between 185 and 189 million.

Speaker 4: and total revenue in the range of 258 to 262 million.

And total revenue in the range of $258 million to $262 million.

We also expect our non-GAAP operating loss in the range of $11 million to $15 million.

Speaker 4: We also expect a non-gap operating loss in the range of 11 million to 15 million.

Speaker 4: and a non-GAP net loss per share in the range of 24 cents to 28 cents using a basic share count weighted for fiscal year 22 of approximately 61 million common shares outstanding. With that,

And our non-GAAP net loss per share in the range of 24 to 28.

Using our basic share count weighted for fiscal year 'twenty two of approximately 61 million common shares outstanding.

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

Ladies and gentlemen to ask a question you want me to pass the spud under one can you on your Touchtone telephone.

Speaker 1: Ladies and gentlemen, as a question, you will need to press the star then the one key on your touch on the phone. To enjoy a question, press the pound key.

To withdraw your question press the pound key.

Speaker 1: Now first question coming from the line up. Jackson atter, you're on a sultan.

Now first question coming from the line of Jackson, Adam Your line is now open.

Speaker 4: Great, thanks for taking our questions, guys. The first one is on the NetMe logo growth. So if we look at the 50 or so that you added in the quarter, could you maybe give us a sense for what are some of the top end markets that contribute to that?

Great. Thanks for taking our questions guys.

First one is on the net new logo growth. So if we look at the.

The 50 or so that you added in the quarter could you maybe give us a sense for what are some of the top end market that contributed to that.

Net 50, new logos.

Well, let me take that thanks.

Speaker 4: Well, Jackson, let me take that. Thanks and good to hear you today. Most of our new logos, generally in a quarter, are driven in the financial services business where we have both...

Good to hear you today.

Most of our new logos generally in a quarter are driven in the financial services business, where.

We have both.

Speaker 4: private capital markets and investment banking and other financial clients.

Private capital markets and investment banking and other financial clients.

Speaker 4: There are numerous of them and we have some real momentum there and we tend to have fewer new logos in our professional services segments where we've been in business longer and where much of our sales opportunity tends to be more of an upsell or cross-sell nature than new logos.

There are numerous of them and we have some real momentum there and we tend to have fewer new logos in our professional services segments, where we've been in business longer and where much of our sales opportunity tends to be more of an upsell or cross sell nature than new logos per se.

Okay, perfect and that actually leads into the second question, which was about the net revenue retention kind of being above that.

Speaker 4: Okay, perfect. And that actually leads into the second question, which was about the net revenue retention kind of being above that, you're 108 to

You are 108 to $1 12 range.

Speaker 4: What really is driving this? Is this existing law firms or existing professional services that might be adding other lines of business or geographies? Are they adding new products that are fast to race than you had previously expected? What's really driving the upside to the 112?

What really is driving that.

Existing law firms.

Existing professional services that might be adding other lines of business or geographies are they adding new products at a faster rate than you had previously expected what's really driving that.

The upside to the 112.

Speaker 4: Well, what we're seeing really is some pretty balanced, good sales motions across the board and in financial services that typically leans toward upsell of additional users where people have achieved success in the implementation and it's working well and more people want to sign up for it in professional services.

What we're seeing really is some pretty balanced good sales motions across the board and.

In financial services that typically lean.

Leans toward upsell of additional users where people have achieved success in the implementation and it's working well and more people want to sign up for it and professional services and legal and elsewhere. It's typically cross sell of additional product functionality and theres lots of opportunity.

Speaker 4: in legal and elsewhere, it's typically cross-cell of additional product functionality. There's a lot of opportunity there. So it's a fairly balanced contribution from both. And yes, it's been better than our range here at two quarters and rows. So we're looking, continue to look at that and are pleased with it.

There so its a fairly balanced contribution from both and yes, it's been better than than our range here two quarters in row. So we're looking at.

You need to look at that and are pleased with it.

Okay, great. Thanks for taking my questions.

Yes.

Speaker 1: Our next question, coming from line of co: jak, a you on the openping.

And our next question coming from the line of.

Your line is open.

Hey, Jon or Steve Thanks for taking my questions really really great quarter.

Speaker 5: Hey, John , Steve. Thanks for taking my questions. Really, really great quarter. I kind of wanted to build on that last question from Jackson. Okay, so NRR was above that one away to 112 range, second straight quarter there. So great news. I guess, when would you feel comfortable maybe raising that range? And then I guess digging in a little bit more, on this quarter for the NRR, was it higher than last quarter? So any sort of color there would be helpful.

Wanted to build on that last question from Jackson, Okay. So MLR was above that 108 to 112 range second straight quarter. There. So great news I guess when would you feel comfortable maybe raising that range and then I guess digging in a little bit more on this quarter.

Or was it higher than last quarter, so any sort of color there would be helpful.

Sure well.

Speaker 4: Sure. Well, I think it's fair to say that if we see this kind of sustained success.

I think it's fair to say that if we see this kind of sustained success.

By next quarter, there is a chance we would consider changing this revising somewhat next quarter Koji.

Speaker 4: By next quarter, there's a chance we would consider changing this, reviving somewhat next quarter, Koji. We were right around where we were last quarter, it could be honest.

We were.

Right around where we were last quarter to be honest we were.

Speaker 4: Just as good if not slightly better than last quarter so that we're optimistic about that and we just want to be careful with the trends we see and you know it works out quarter to quarter but really good business kind of firing on all cylinders here right now across the board.

Just as good if not slightly better than last quarter. So we're optimistic about that and we just want to be careful with the trends, we see and it works out quarter to quarter, but really good business kind of firing on all cylinders here right now across the board.

Got it got it. Thank you and then on the specifically on the cloud.

Speaker 5: Got it, got it. Thank you. And then on the ARR specifically on the cloud ARR side, you know, thanks for the color of their new logos coming from financial services. But from ARR and thinking about the 50% plus growth for the second straight quarter, I mean, is that growth coming from, you know, it sounds like more deal cloud-bed one place? And I guess maybe more financial services versus professional services? Or how should we be thinking about, you know, where that strength is coming from in the cloud ARR?

Right.

Thanks for the color there new logos coming from financial services.

And thinking about the 50% plus growth for the second straight quarter, I mean is that growth coming from.

Like more deal cloud that one place.

Maybe more financial services versus professional services or.

How should we be thinking about where that strength is coming from in the cloud <unk> growth.

Well no really it is pretty balanced on an absolute dollar basis between the two if you will I think that as we've said before just based on where the two parts of the business started in their history in size and so forth. There is a little bit quicker growth in financial services and professional services on a sort of a percentage growth rate basis, but we're getting pretty.

Speaker 4: will know really it it is pretty balanced on an absolute dollar basis between the two if you will i think that as you said before just based on where the two parts of the business started in their history in size and so forth there's a little bit quicker growth in financial services been in pre-f personal services on a sort of a percentage growth rate basis but we're getting pretty

Pretty good and pretty balanced contribution from both as part of the cloud growth as you know, it's all all the new sales our cloud. So they are coming from those two twin engines. If you will.

Speaker 4: pretty good and pretty balanced contribution from both as part of the CloudGloat. As you know, it's all, all the new sales are cloud, so they're coming from those to twin engines, if you will. Got it. Got it. Thanks.

Got it got it thanks, guys. Thanks for taking my questions I appreciate it.

Okay.

Our next question coming from the line of Kevin Mcveigh. Your line is open.

Speaker 1: Our next question coming from Lana of Kevin McPay, Lana Salpin.

Thanks, So much and let me add my congratulations as well.

Speaker 6: Thanks so much and let me in my congratulations as well. Just to follow up on the client's success, it seems like you're capturing a larger percentage of clients with a or over 100,000. Can you help us understand? Pardon me. What the average client size is today, in terms of employees, and how that's been trending over the last couple of quarters.

Just to follow up on the client success. It seems like youre, capturing a larger percentage of clients where they are over 100000 can you help us understand pardon me what the average client size is today in terms of employees and how thats been trending over the last couple of quarters.

Well im not sure I have it.

Employees and an average size for you in terms of IRR. Obviously, if you just kind of divide our our IRR by the 2000 plus clients. So youll see that the average for the business is over $100000.

Speaker 4: employees in an average size for you. In terms of ARR, obviously, if you just kind of divide our ARR by the 2000 plus clients, you'll see that the average for the business is over $100,000. But there's a spread there. In terms of employee size, I don't want to hazard a number for you. John , you may have some color you would add there.

But there is a spread there in terms of employee size I don't want to hazard a number for you. John you may have some color you would add there.

Speaker 3: Well, the range of firms that we sell to today that we count in our client base.

Well the range of firms that we sell to today that we count on our client base.

Go from.

Speaker 3: A handful of people at a just-started private capital firm.

A handful of people at <unk>.

Just started private capital firm.

Speaker 3: maybe five to 20 people at the small end. And the largest firms are...

Maybe five to 20 people at the small end.

And the largest firms or the global.

Speaker 3: Investment or advisory firms, including the big four, which could have 180, 200,000 employees.

Investment advisory firms, including the big four which could have a 180 200000 employees.

Speaker 3: So the platform does scale. We've built it in a way that supports the largest firms in the world, and then we get the cloud benefit of being able to provide that level of capability and AI power down to the smallest just started firm.

So the platform.

Does scale, we've built it in a way that supports the largest firms in the world and then we get the cloud benefit of being able to provide that level of capability in AI powered down to the smallest just started firms. So our go to market is organized by industry, but also by firm size.

Speaker 3: So our go-to-market is organized by industry, but also by firm size. And we engage a little bit differently depending on the scale of the firm, but overall,

And we engaged a little bit differently, depending on the scale of the firm.

But overall, we're able to address.

Big chunk of the professional financial services market globally. So we're excited about the progress that we're making in winning clients of these different sizes because it.

Speaker 3: big chunk of the professional financial services market globally. So we're excited about the progress that we're making and winning clients to these different sizes because it shows the growth potential of the business into the market.

<unk> the growth potential of the business into the market.

That's great that's great and then.

Speaker 6: you know it seems like given the acceleration in the revenue

It seems like given the acceleration in the revenue.

Sure.

Speaker 6: help us maybe to mention that it's not really any kind of COVID related pull forward just given the continued acceleration. Is that fair? I mean, you know, from a implementation or just overall

Just help us maybe dimensionalize it not really any kind of COVID-19 related pull forward.

Just given the continued acceleration is that fair I mean from a <unk>.

Implementation or just overall client spend perspective.

Well, yes, there is no pull forward certainly from.

Speaker 4: Well, yeah, there's no pull forward, certainly from, you know, really from the next quarter, if that's what you're asking. And, you know, there are some COVID related comparisons.

Really from <unk>.

Next quarter, if thats, what youre asking.

Our Cove.

There are some COVID-19 related comparisons if you go back a full year quarter over quarter that.

Speaker 4: go back a full year quarter of a quarter that you're looking at here, but we're in a pretty normalized and pretty good business environment right now. That's what we're mostly, you know.

Youre looking at here, but.

We're in a pretty normalized and pretty good business environment right now that's what we're.

Most of them.

Executing on.

That's great Congrats again.

Thanks.

Our next question coming from the line of Brian Peterson of Raymond James Your line is open.

Speaker 1: Our next question coming from Delana, Brian Peterson, or Freeman James, Yelens Isle.

Speaker 4: I thank you all of them and I'll have to go back and grab some of the strong results. So first one, John , I'm curious, I'm supposed to use your conference. You know, anything that you can share in terms of customer conversations or pipeline or any kind of developments from pipeline in terms of how they may play out over the next few years.

Thanks, Hillman and I'll Echo my congrats on the strong results. So first of all John I Am curious post the user conference.

You can share in terms of customer commerce conversations or pipeline or any kind of developments.

From pipeline in terms of how that May play out over the next few years.

Thanks, Brian .

Since I've come that 'twenty, one event with a fantastic event, we had seven 700.

Speaker 3: The Intent Connect 21 event was a fantastic event. We had 1700 folks attend from across all the sub-birdacles that we call on.

Folks attend from across all the sub verticals that we call on.

Speaker 3: One of the interesting things that came out of it was how common and shared the challenges were for these firms that have a little bit of a different specialty each one, but the professionals are grappling with the same issues and the business services teams that support the firms are grappling with the same issues. So there was a lot of enthusiasm.

One of the interesting things that came out of it.

Was how common and shared the challenges were for these firms that have a little bit of a different specialty each one but the professionals are grappling with the same issues in the business services team to support the firms are grappling with the same issue. So there was a lot of enthusiasm.

Across the sub verticals to work together on discussing common opportunities for technology transformation. So that was a big theme that came out of it.

Speaker 3: across the sub-borticles to work together on discussing common opportunities for technology transformation. So that was a big theme that came out of it.

There also was a real discussion of the impact of Covid on opening the eyes of these firms to digital transformation to cloud to better enabling.

Speaker 3: There also was a real discussion of the impact of COVID on opening the eyes of these firms to digital transformation, to cloud, to better enabling.

Dispersed or hybrid workforces and so a lot of the conversations we're reinforcing what we've been experiencing which is these firms through COVID-19 have shifted some of their.

Speaker 3: dispersed or hybrid work forces. And so a lot of the conversations were reinforcing what we've been experiencing, which is these firms through COVID have shifted some of their.

Focus towards better technology enablement and digital transformation for their people to compete in a changed environment. There's a lot of discussion about that too.

Speaker 3: focused towards better technology enablement and digital transformation for their people to compete in a changed environment. So there's a lot of discussion about that. To your question about pipeline, it was a very...

To your question about pipeline it was a very.

Successful event for US a lot of new attendees that we had not met before as well as a lot of our installed base coming in people, referring to each other to get.

Speaker 3: successful event for us. A lot of new attendees that we had not met before, as well as a lot of our install based coming and people referring to each other to get into the Intapp community. So we're encouraged by the enthusiasm for what we're doing out there, and I think you're seeing some of it flow through some of the results.

Into the Intel community. So we are encouraged by the enthusiasm for what we're doing out there and I think youre seeing some of it flow through to some of the results.

That's great to hear and maybe a follow up for Steve I know you mentioned some of the hiring effort and we will see those kind of those investments start to kick on in the third quarter here.

Speaker 4: That's great to hear. And maybe a follow up for Steve. I know you mentioned some of the hiring effort and we'll see those investments start to get on in the third quarter here. How do you think about that investment intensity and they go to market effort, especially as we're thinking about a couple of years now? Should we expect that to continue going forward or we should start to see some benefits of those, maybe coming years? Thanks, guys.

How do we think about that investment intensity and they go to market effort, especially as we're thinking about a couple of years out should we expect that to continue going forward or we should start to see some benefits of those maybe in coming years. Thanks guys.

Yes, no we are continuing to forward invest when we can and sales and marketing. We as you said last quarter. We have had some success here so far this year and that continues.

Speaker 4: Yeah, no, we are continuing to forward and vest when we can until the marketing. As you said last quarter, we've had some success here. So far this year and that continues. You know, we are adding to our sales and marketing resource.

We are adding to our sales and marketing resources.

Speaker 4: North sort of 25% annualized kind of growth rate at the moment. And I think that since we see so much opportunity right now, we're going to continue to look to do that. And the, you know, there's hiring and ramp up time and so on. That's part of the mix. So productivity improves after someone starts and it gets better. But we're optimistic and we'll continue to do that going forward if we see this market opportunity in front of us.

Nordson sort of 25% annualized growth rate at the moment and I think that since we see so much opportunity right now we're going to continue.

To look to do that and the hiring and ramp up time and so on that's part of the mix. So productivity improves after someone starts and it gets better but we're optimistic we'll continue to do that going forward as we see this market.

Opportunity in front of us.

Thank you.

Our next question coming from the line of Mark Helane. Your line is open.

Speaker 1: Our next question coming from the line out of Parker Lane, you're not as open.

Speaker 7: Hi guys, this is Matthew Kikert, I'm from Parker. Really impressive numbers, specifically from CloudAR, ARR, keeping that north of 50%. And you get some great details well, breaking down financial services. You've seen more interest there, where professional services and a bit of a mix from cloud migration and net new logos. But I want to get a little bit into maybe the timing of the onboarding process for each of those segments.

Hi, Matthew kicker for Parker.

<unk> numbers, specifically from Qatar, IRR, keeping that north of 50% and get some great details well.

Looking down financial services are you seeing more interest there were professional services and then have a mix from cloud migration net new logos, but I wanted to get a little bit into maybe the timing of the onboarding process for each of those segments.

Speaker 7: from first point of contact with the client all the way to when they're being added into the platform, what does that length of time look like? And is it different based on each of those segments that I mentioned?

From first point of contact with the client all the way to win there.

<unk> added into the platform what does that length of time look like and is it different based on each of those segments that I mentioned.

Okay.

Okay. So thanks Matthew.

Speaker 3: Okay, so thanks, Matthew. The question is, how long does it take us to onboard new clients when we win them?

Question is.

How long does it take us to onboard new clients when we win them.

Yes exactly.

Speaker 7: Yeah, exactly. And if it's different versus professional services or financial services or cloud migration versus net new logo.

Versus professional services or financial services or.

Cloud migration versus the net new logo.

Yes, so for the smaller firms, it's faster than for the larger firms. It takes longer obviously, because they're more complex environments that we're integrating into.

Speaker 3: Yeah, so for the smaller firms, it's faster and for the larger firms, it takes longer obviously because there were complex environments that were integrating into.

On average if you look across the whole client base in all scenarios, it's about a six to nine months.

Speaker 3: On average, if you look across the whole client base in all scenarios, it's about a six to nine month process, which is weighted towards the larger ones. For the smaller firms that we're getting up and running, we can do it in 30 to 60 days. So there's a very rapid experience for the smaller organizations, but on average, you're looking at something like six to nine months across the whole client.

<unk>, which is weighted towards the larger ones for the smaller firms that were getting up and running we can do it in 30 to 60 days. So theres a very rapid experience for the smaller organizations, but on average you're looking at something like six to nine months across the whole client base.

Okay, and then Thats great Info and then does that does that affect how you invest in your sales capacity.

Speaker 7: Okay, and then that's great info. And then does that, is that a fact how you're investing in your sales capacity? And how does the, you know, you touch a little bit and go to market, but is it differ, you know, based on whether, you know, any of those four segments that were mentioned?

And how does the.

<unk> go to market, but does it differ.

Based on weather.

Any of those four segments that were mentioned.

In terms of how we're investing in the go to market team.

Yes by segment are firm size, yes, exactly how how does that breakdown affect how you are investing in those different teams.

Speaker 7: Yeah, segment or firm size. Yeah, exactly. How does that breakdown affect how you're investing in those different teams?

Yes, we're growing the teams.

Speaker 3: pretty consistently because we see strong balance growth across the different firm sizes and segments. Obviously as we bring...

Pretty consistently because we see strong balanced growth across the different firms sizes and segments.

Obviously as we bring on a lot of.

Speaker 3: new clients that we didn't have before, we're also adding people for

New clients that we didn't have before we're also adding people for.

Speaker 3: support and client success to support the new client relationship. You'll see a little bit of waiting in investment there to make sure that we are in a position not just to win the client, but to take care of them and to grow the accounts from there. So it's pretty balanced with some emphasis where we're winning new clients.

Support and client success to support the new client relationship you will see a little bit of waiting an investment there to make sure that we are in a position not just to win the clients, let's take care of them and to grow the accounts from there. So it's pretty balanced with some emphasis where we're winning new clients.

Okay, great. Thank you.

Our next question coming from the line of Terry Tillman. Your line is now open.

Speaker 1: Our next question coming from the line up. Perry Tillman, Ilanus Malpun.

Speaker 2: yeah thanks in the congrats relations for me as well hi John steven david uh... i had two questions i guess the first question and i think i've asked you John a little bit about this in the past

Yes, Thanks, and congratulations from me as well Hi, John Stephen David.

Two questions I guess, the first question and I think I've asked to John a little bit about this in the past.

Speaker 2: It's always interesting with companies to go public and what kind of benefits they see. You all definitely have some footholds within some really large financial services and professional services firms. What I'm curious about is three months further into being a public company. How are you doing a larger transformational deal like $1 million deal activity with some of these bigger firms now that you're public? You've got financials out there. You don't have debt, et cetera. And then I have to follow up.

That was interesting with companies that go public what kind of benefits. They see you will definitely have some footholds within some really large financial services and professional services firms. What I'm curious about is three months further into being a public company. How are you doing a larger transformational deals like $1 million deal activity with some of these bigger firms now that you're public you've got financials.

<unk> out there you don't have debt et cetera, and then I had a follow up.

Speaker 3: Yeah, thanks, Terry. We are pleased with the visibility that the IPO has given us. It continues to help us in winning larger clients. We gave a couple examples of client wins, including some that were quite large this quarter. And I think that the public visibility really helps.

Thanks Terry.

We're pleased with the visibility that the IPO has given us it continues to help us in winning larger clients. We gave a couple of examples of.

Client wins, including some that were quite large this quarter and I think that the public visibility really helps in that regard.

Speaker 3: We also are seeing some growth in our existing clients that we had wanted a private company before IPO, but we have visibility to higher levels of the organization now. And that's...

We also are seeing some growth in our existing clients that we had one it's a private company before our IPO, but we have visibility to higher levels of the organization now and Thats, helping us.

For the larger transformational type deals we are increasingly working on these cloud transformations for the larger firms obviously it takes them longer to lay out that roadmap, but were making pretty consistent progress in bringing our clients to the cloud for the first time in a.

Speaker 3: For the larger transformational type deals, we are increasingly working on these cloud transformations for the larger firms. Obviously, it takes them longer to lay out that roadmap, but we're making pretty consistent progress in bringing our clients to the cloud for the first time in a bunch of areas. And we're excited about what that means for them and for our customers.

A bunch of areas and we're excited about what that means for them and for our future.

Got it that sounds good and I guess a follow up is just an education question for me.

Speaker 2: got it that sounds good and i guess the follow-up is just an education question for me what what kind of correlation do you see when we're looking at financial services or even professional service made on the uh... the the law firm of the legal side

What kind of correlation do you see when we're looking at financial services or even professional service maybe on the law firm of the legal side.

And who knows how the rest of the year goes, but whether it's capital markets or investment banking fees.

Speaker 2: you know who knows how the rest of the year goes but whether it's capital markets or investment banking fees

Speaker 2: If with the volatility that wanes and some of the goodness that has been going on and those industry starts to wane and there's just not as much activity, you know, does that actually create an opportunity where they're not quite as stretched and slammed with just going out and doing business and they're more time to look at software? Are my putting words in your mouth? Was that wishful thinking?

With the volatility that wanes and some of the goodness that has been going on in those industry starts to wane and Theyre just not as much activity does that actually create an opportunity where they're not quite as stretched and slammed with just going out and doing business in a more time to look at software or am I, putting words in your mouth or is that wishful thinking.

Or.

Speaker 2: or you know does do things tend to slow down if the fees start kind of drawing up I'm just trying to understand a little bit more about what kind of correlation there might be with your business and just the in-market thank you yeah thank you

These things tend to slow down if the fees start kind of drawing up I'm, just trying to understand a little bit more about what kind of correlation there might be with your business and just the end market. Thank you.

Yes, Thank you and.

One of the interesting examples.

Speaker 3: that we can look back to was the 2008-2009 recession.

That we can look back to 2008 2009 recession.

Speaker 3: And those firms did choose that time to make pretty meaningful investments in their infrastructure. We are benefiting today, obviously, from the strong markets that are going on. One of the reasons that we like this end market is that these firms have multiple strategies and practices that they pursue and they tend to shift their business internally as the business cycle occurs.

And those firms did shoes that time to make pretty meaningful investments in their infrastructure. We are benefiting today, obviously from the strong markets that are going on but one of the reasons that we like this end market is that these firms have multiple strategies and practices.

They pursue and they tend to shift their business internally.

As the business cycle occurs.

Speaker 3: You mentioned law firms. Law firms will switch from doing deals and financing to doing litigation and restructuring and that sort of thing. And we've found that we grew right through the last recession. So we're not predicting anything of the macro economy, but I think we're well positioned to handle it with this end market as things. So maybe better than a lot of other companies that might take a harder hit.

You mentioned law firms law firms will switch from doing deals and financing to doing litigation and restructuring and that sort of thing and we've found that we grew right through the last recession. So we're not predicting anything on the macro economy, but I think we're well positioned to handle it with this end market as things so maybe better.

<unk> done a lot of other companies that might take a harder hit.

Got it thank you.

And our next question coming from the line of Brian Cowen. Your line is now open.

Speaker 1: Next question coming from Delana Bryan Ford, C-Lana.

Speaker 5: Yeah, hi, Steven John . Thanks for taking my question this afternoon. I have a macro question for John . So when you're thinking about all the puts and takes of everything that you've been talking about, I'm a call here this afternoon. If you look out to this year, so 2022, would you say in aggregate that you're expecting the demand environment to be stronger, weaker, or the same, than what you had in 2021?

Hi, Steve and John Thanks for taking my question. This afternoon.

I have a macro question for John .

So when youre thinking about all the puts and takes of everything that you've been talking about on the call. Here. This afternoon. If you look out to this year. So 2022 would you say in aggregate that youre expecting the demand environment to be stronger weaker or the same than what you had in 2021.

Speaker 3: Well, compared to calendar 2021, it's definitely a stronger environment. I mean, we're seeing that just in these numbers.

Well compared to calendar 2021, it's definitely a stronger environment I mean, we're seeing that just in these numbers that we're showing.

Speaker 3: that we're showing. Our professional services line most obviously.

Our professional services line most obviously.

Came back from a period when the firms, we're really pause not knowing what's going on with Covid.

Speaker 3: came back from a period when the firms were really paused, not knowing what was going on with COVID. So I think just...

I think just.

Quantitatively.

Speaker 3: We're seeing a stronger environment. That being said, we also see the firms have made a pretty significant switch here.

Seeing a stronger environment that being said, we also see the firms have made a pretty significant switch here.

Speaker 3: to investing in technology and going through the cloud transformation looking forward.

Two investing in technology and going through the cloud transformation looking forward past 2022 into 2023 folks are really thinking about this strategically in a way that.

Speaker 3: past 2022 into 2023, folks are really thinking about this strategically in a way that

Speaker 3: You know, people always talked about the importance of technology in these firms, the importance of the professionals' importance to their clients. But I think it sunk in here. So we're excited about what's happening. The business is really, as Steve said, firing on all four cylinders. But I think looking ahead, there's good demand for us. We're encouraged.

People always talked about the importance of technology in these firms the importance of the professionals importance. So their clients, but I think it has sunk in here. So we're excited about what's happening the businesses really as Steve said firing on all cylinders, but I think looking ahead. There is good demand for us.

We're encouraged by what we're seeing.

Good and then the one follow up I had for Steve just wondering if the young tact a little bit but can you unpack even further where these growth investments are going to see.

Speaker 5: Good and then the one follow up I've had for speed just wondering if the young pack their little bit but can you unpack even further where these growth investments are going? So it sounds like sales and marketing line. You know, is it going towards advertising? Is it all increasing the capacity? Is it marketing? New markets? Could you provide a little bit more color on where you're increasing these growth investments? Thanks a lot. Yes, sure. And I...

Sounds like sales and marketing line.

Going towards advertising or is it all increasing the capacity as a marketing new markets.

Could you provide just a little bit more color on where you are increasing these growth investments. Thanks, a lot, yes, sure and I think.

Is it is weighted to.

Speaker 4: waited to, you know, sales folks and sales capacity and support kind of on the ground because we're seeing, because John said, pretty good opportunities here. We really want to take advantage of those. We certainly across the border are also investing in marketing and

Sales folks and sales capacity and support.

Kind of on the ground because we are seeing as John said pretty good opportunities here, we really wanted to take advantage of those we certainly across the board are also.

Investing in marketing and.

Speaker 4: related areas, now we had our big conference in the fall. I mean, the Omicron thing was for the little bit of steam out of what we might have sped actually. So that was probably why we weren't spending quite so much in Q2, but we see opportunities across the board there. So it's balanced, but I would say it's weighted a bit towards sales capacity and support for sales efforts in the field. Thank you very much.

Related areas, we had.

Had a big conference in the fall.

The AMA client thing was.

A little bit of steam out of what we might have spent actually so there's that was partly why we werent spending quite so much in Q2, but we see opportunities across the board there. So its balance, but I would say, it's weighted a bit towards sales capacity and support for sales sales efforts in the field.

Okay.

Thank you very much.

Okay.

Yeah.

And we have a follow up question from Jackson, Adam Your line is now open.

Speaker 2: Great, thanks. Just a quick follow up on one of the upsell answers that you gave to someone's question earlier. Even within maybe one of these larger investment banks or private equity funds, I mean, does the land sometimes, like how small will the land go? You...

Great. Thanks, just a quick follow up on.

One of the upsell answers that you gave because someone's question earlier.

Even within maybe one of these larger investment banks or private equity funds.

The land sometime like help small where the land go.

Speaker 2: you know, a little bee within, I don't know, like just a particular team within that equity capital market and then you can go to debt capital markets or it's in beyond. So to go fund by fund sometimes it's been private actually like how small are we talking about potentially within the land of some of these larger cups.

Will it be within I don't know like just a particular team within equity capital market and then you can go to debt capital markets and beyond does it go fund by fund, sometimes when private equity like how small are we talking about potentially within the land from the larger customers.

Yes, I'll take a shot at that and maybe John can elaborate I mean, Jackson I think we can land as John said 20 people.

Speaker 4: Yeah, I'll take a shot at that and maybe John Connabrit, I mean, Jackson, I think we can land, you know, as John said, it's 20 people. And that could be a division or a small sex reformer, it could be, you know, a part of one unit there. And then we can expand from there. So it can be relatively, if that, if you consider that relatively small, we can also land quite a bit bigger than that. Obviously.

And that could be a division or a small section of affirm or it could be.

A part of one unit there and then we can expand from there so it can be relatively.

If you consider that relatively small we can also land quite a bit bigger than that obviously and we would like to generally speaking, but I think we are efficient and effective enough and we've seen that success.

Speaker 4: I would like to generally speaking, but I think we are efficient and effective enough, and we've seen enough success, that that is all going to be a good way for us to go.

Is often a good way for us to go.

And our Johnny can elaborate on that.

Speaker 3: Yeah, and those bigger institutions, particularly in partnership firms are the ones that have a history as partnerships. There's a lot of independent decision-making.

Yeah, and the bigger institutions, particularly as partnership firms are the ones that have a history as partnerships, there's a lot of independent decision making.

Speaker 3: And that actually plays strongly to our advantage because we can win footprints in some of these firms and start to show success and prove success with some very influential small groups that can make their own call on what they bring in. So we're pragmatic about that and we're finding that it's very successful. Once the rest of the organization starts to see what we're doing and how different it is from the existing environment, we start to grow. And that's a key part of our overall strategy.

And that actually plays strongly to our advantage because we can win footprints in some of these firms and start to show success improve success with some very influential small groups that can make their own call on what they bring in so we're pragmatic about that and we're finding that it is very successful at once the rest of the organization starts to see what we're doing.

When and how different it is from the existing environment, we start to grow and Thats a key part of our overall strategy.

Okay, great that makes a ton of sense. Thank you.

Speaker 1: I am sure enough for questions at this time. I would now like to come back over to Mr. Hull for any closing remarks.

And I'm showing no further questions at this time I would now like to turn the call back over to Mr Hill for any closing remarks.

Speaker 3: Okay, thank you all for joining us. We appreciate your time as always. We're excited about the opportunity in front of us and we're looking forward to talking to you again in Q3.

Okay. Thank you all for joining US we appreciate your time as always we're excited about the opportunity in front of us and we're looking forward to talking to you again in Q3.

Speaker 1: Please and gentlemen, that's a good conference for today. Thank you for your participation. You may now disconnect.

Ladies and gentlemen that does conclude our conference for today. Thank you for your participation you may now disconnect.

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Speaker 1: The day lays in jamaen, thank you for standing by, and welcome to in tap second quarter of fiscal year 2022 and in conference call. At this time, all participants are on the list and only mode. After the speech presentation, there will be a question and answer session to ask the question during the session, you will need to press the start end of one key on your touchdown telephone. If you will call all participants please press start end zero. I would now like to hand the conference over to your speaker host, David Tron, senior vice president of invest relations.

Good day, ladies and gentlemen, thank you for standing by and welcome to <unk> second quarter of fiscal year 2022 earnings conference call.

At this time all participants are in a listen only mode. After the speaker's presentation there'll be a question and answer session to ask a question. During this session you will need to press. The Star then the one key on you touched on the telephone.

We will go to offer assistance. Please press Star then zero.

I'd now like to turn the conference about your Speaker House, David Trone, Senior Vice President of Investor Relations.

Thank you welcome to <unk> second quarter fiscal year 2022 earnings conference call.

Speaker 5: Thank you. Welcome to INTAPS 2nd quarter fiscal year 2022, earnings conference call.

Speaker 2: On the call with me today are John Hall, Chairman and CEO of INTAF, and Steve Robertson, Chief Financial Officer.

On the call with me today are John Hall, Chairman, and CEO , Vince App, and Steve Robertson Chief Financial Officer.

Speaker 9: During the course of this conference call, we may make forward-looking statements regarding trends, strategies, and the anticipated performance of our business.

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

Speaker 9: These forward-looking statements are based on man's and his current views and expectations and tell certain assumptions.

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

And certain assumptions made as of today's date.

Speaker 9: In our subject of various risks and uncertainties, subscribe and our SAC fileings and other publicly available docs.

And are subject to various risks and uncertainties described in our SEC filings and other publicly available documents.

Speaker 9: In fact, it claims any obligation to update or revise any forward looking statement.

In fact disclaims any obligation to update or revise any forward looking statements.

Speaker 9: Further on today's call, we will also discuss certain non-gab metrics that we believe aid in the understanding of our financial results.

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

Speaker 9: A reconciliation to comparable gap metrics can be found in today's earnings release, which is available on our website, and as an exhibit to the Form 8K furnished with the SAC prior to this call, with that I'll hand the conversation over to John . Thank you, and welcome to the team, David.

A reconciliation to comparable GAAP metrics can be found in today's earnings release, which is available on our website and as an exhibit to the form 8-K furnished with the SEC prior to this call with that I will hand, the conversation over to John .

Thank you and welcome to the team David.

Good afternoon, everyone. Thank you for joining us.

Speaker 3: We ended our fiscal second quarter and calendar year 2021 with continued dedication to our corporate mission.

We ended our fiscal second quarter and calendar year 2021 with continued dedication to our corporate mission.

Speaker 3: to enable professional and financial service and firms to better connect their people, processes, and data through our AI-powered software solutions.

To enable professional and financial services firms to better connect their people processes and data through our AI powered software solutions.

As a reminder for those of you who may be new to our story. Our team has focused on this sector for more than 20 years.

Speaker 3: Our team has focused on this sector for more than 20 years.

Speaker 3: Our clients are the professionals who work in the large professional and financial services firms that were traditionally organized as partnerships.

Our clients are the professionals, who work in the large professional and financial services firms that were traditionally organized as partnerships.

This is a large global industry that brings in three trillion dollars in fees every year.

Speaker 3: This is a large global industry that brings in $3 trillion in fees every-

Speaker 3: but it has been underserved and overlooked by the technology industry because its firms are organized differently.

But it has been under served and overlooked by the technology industry. Because it's firms are organized differently than the traditional corporations that make up the rest of the technology market.

Speaker 3: than the traditional corporations that make up the rest of the technology market.

Traditional corporate employees tend to be organized into functional departments like sales or finance or it.

Speaker 3: Traditional corporate employees tend to be organized into functional departments, like sales or finance or IT.

Their workflows and data needs are specialized to those functions.

Speaker 3: In contrast, the professional clients whom we serve grow their careers by developing and leveraging individually specialized knowledge and expertise about their chosen domain.

In contrast, the professional clients, whom we serve grow their careers by developing and leveraging individually specialized knowledge and expertise about their chosen domain.

Speaker 3: Our professionals drive their career success and their firm success by leveraging that expertise to develop and build key investor and client relationships to grow and retain business with those clients and ultimately to deliver great results and returns for their clients on a wide range of projects.

Our professionals drive their career success and their firms success by leveraging that expertise to develop and build key investor in client relationships to grow and retain business with those clients and ultimately to deliver great results and returns for their clients on a wide range of projects.

Speaker 3: The unique working model that these professionals execute every day is different from the traditional sales or operations department workflows that traditional CRM and ERP systems were designed.

The unique working model that these professionals execute every day is different from the traditional sales our operations department workflows that traditional CRM and ERP systems were designed for.

Speaker 3: We filled our cloud based on 20 years of working directly with these firms.

We feel our cloud based on 20 years of working directly with these firms intense.

Speaker 3: Intest purpose-built industry cloud understands these professionals focus to build and develop their own area of expertise.

<unk> purpose built industry cloud understands these professionals focus to build and develop their own area of expertise and then arms them with the modern power of AI to help them make better more market data driven more insightful and more competitive.

Speaker 3: And then arms them with the modern power of AI to help them make better, more market data driven, more insightful and more competitive judgments and recommendations.

Judgments and recommendations.

Speaker 3: Intest has built the modern industry cloud for the global professional and financial service.

<unk> has built the modern industry cloud for the global professional and financial services industry.

Today professional and financial services firms are rapidly adopting cloud for several reasons.

Speaker 3: Today, professional and financial services firms are rapidly adopting cloud for several reasons.

Speaker 3: including seeking greater agility to respond to market changes, improving access to data and market intelligence.

Including seeking greater agility.

To respond to market changes.

Improving access to data and market intelligence.

Speaker 3: and better connecting their global workforce and the broader

And better connecting their global workforce and the broader ecosystem.

Speaker 3: We've established a trusted brand in these markets.

We've established a trusted brand in these markets due to our deep knowledge of their unique workflows and our industry leading technology architecture.

Speaker 3: due to our deep knowledge of their unique workflows and our industry leading technology architect.

Speaker 3: With our reputation and our specialized product strategy, we are focused on leading the cloud transformation for these

With our reputation and our specialized product strategy, we are focused on leading the cloud transformation for these firms.

The market demand and acceptance of our cloud solution is evident.

Speaker 3: The market demand and acceptance of our cloud solution is evidence.

Speaker 3: In our second quarter, our cloud ARR grew 52% to 135.3%.

In our second quarter, our cloud <unk> grew 52% to $135 3 million.

Speaker 3: CloudNow represents 56% of our total ARR of $240 million, which is up 27%.

Cloud now represents 56% of our total <unk> of $240 million.

Which is up 27% year over year.

Speaker 3: We earned staff and support revenue of $47 million, up 36%.

We earned SaaS and support revenue of $47 million up 36% year over year and.

Speaker 3: and total revenue of $64.7 million, up 30% year-over-

And total revenue of $64 7 million up 30% year over year.

Speaker 3: We ended December serving over 2,000 firms in over 40 countries around the globe.

We ended December serving over 2000 firms in over 40 countries around the globe.

Speaker 3: During our November call, I outlined several of our unique technology capabilities and how they directly address the critical needs of our clients. Today,

During our November call I outlined several of our unique technology capabilities and how they directly address the critical needs of our clients.

Today I'll share a bit about our go to market organization to better illustrate how we interact with clients and prospects to drive demand for our solutions and deliver our client success.

Speaker 3: to better illustrate how we interact with clients in prospects, to drive demand for our solutions and deliver clients' experience.

Speaker 3: We have evolved a unique go-to-market model to serve this industry based on our two decades of focus on the professional investors and advisors who work in these firms.

We have evolved our unique go to market model to serve this industry based on our two decades of focus on the professional investors and advisers who work in these firms.

Leveraging our go to market organization, our entire business has moved to a SaaS model.

Speaker 3: leveraging our go-to-market organization, our entire business has moved to a provided made it to the

Speaker 3: and we are enabling our target industry to make its own digital transformation to the cloud.

And we are enabling our target industry to make its own digital transformation to the cloud.

Speaker 3: This shift to the cloud is both accelerating our growth and improving outcomes for our clients, which drives the virtuous cycle of continued adoption and net revenue returns.

This shift to the cloud, it's both accelerating our growth and improving outcomes for our clients, which drives the virtuous cycle of continued adoption and net revenue retention.

Speaker 3: Our client-facing teams include industry experts themselves.

Our client facing teams include industry experts themselves, who have deep sector knowledge specific to the private capital investment banking legal accounting and consulting markets.

Speaker 3: who have deep sector knowledge specific to the private capital investment banking, legal accounting and consulting.

Speaker 3: Our integrated sales and marketing programs at the industry level drive repeatable and predictable pipeline growth through both inbound lead generation and cross selling programs.

Our integrated sales and marketing programs at the industry level drive repeatable and predictable pipeline growth through both inbound lead generation and cross selling programs.

Speaker 3: Our GoToMarket team applies both account expertise and solution expertise resources to this pipeline to surround each opportunity.

Our go to market team applies both account expertise and solution expertise resources to this pipeline to surround each opportunity.

Speaker 3: Our sales engineering experts focus on key solution use cases, such as coverage management, relationship management, deal management, marketing and business development, operations and finance, and risk and compliance.

Our sales engineering experts focus on key solution use cases, such as coverage management relationship management deal management, marketing and business development operations, and finance and risk and compliance.

Speaker 3: Our ability to deliver unique proposals, demonstrations, and business cases to our clients is a significant competitive advantage and leaves a high win rate in all of our markets.

Our ability to deliver unique proposals demonstrations and business cases to our clients is a significant competitive advantage and leads to high win rates in all of our markets.

Speaker 3: For example, our team recently won a strategic opportunity at IQ EQ, a leading investor services group with over 3,700 global employees and assets under administration of over $500 billion.

For example, our team recently won a strategic opportunity at IQ EQ, a leading investor services group with over 3700 global employees and assets under administration of over 500 billion.

Our solution will help enhance the relationship management capabilities of the firm.

Speaker 3: Our solution will help enhance the relationship management capability.

Speaker 3: The ability of our services and technology teams to configure our platform to the unique use cases of IQ EQ was critical to both winning the business and driving success for the client.

The ability of our services and technology teams to configure our platform to the unique use cases of IQ EQ was critical to both winning the business and driving success for the client.

Speaker 3: The new platform will support information sharing, firm-wide knowledge capture, and expanded visibility into client relationships to help the IQ EQ team to better support the expanding needs of clients.

The new platform will support information sharing firm wide knowledge capture and expanded visibility into client relationships to help the IQ EQT to better support the expanding needs of clients.

Our industry experts and pre sales and services bring this to life for clients like IQ EQ.

Speaker 3: Our industry experts in pre-sales and services bring this to life for clients like IQ EQ. This investment in our own

This investment in our own deep bench of market expertise building a unique team over many years, who know and are known in this market represents a sustainable competitive advantage for <unk>.

Speaker 3: Building a unique team over many years who know and are known in this market represents a sustainable competitive advantage for INTAP.

Our go to market strategy has also developed ways to successfully engage with firms at different client sizes.

Speaker 3: Our Go-to-Market Strategy has also developed ways to successfully engage with firms at different client sites.

We generally offer smaller firms our full platform and its suite of solutions, enabling the firm to build its operations around our industry cloud and we grow users with the firm and as we bring out new functionality.

Speaker 3: We generally offer smaller firms our full platform and its suite of solutions.

Speaker 3: enabling the firm to build its operations around our industry cloud. And we grow users with the firm and as we bring out new functionality.

For example, graphite capital a leading U K mid market private equity firm recently selected our cloud platform to boost the efficiency of their deal value creation and Investor relations teams.

Speaker 3: For example, graphite capital, a leading UK mid-market private equity firm, recently selected our cloud platform to boost the efficiency of their deal, value creation, and investor relations.

This is a good example of our integrated marketing sales and technical engagement with clients.

Speaker 3: This is a good example of our integrated marketing, sales and technical engagement.

Speaker 3: After a series of discovery meetings supported by our marketing program, our sales and sales engineering teams showcased the potential of the technology

After a series of discovery meetings supported by our marketing program, our sales and sales engineering teams showcase the potential of the technology for the firm's leaders.

Speaker 3: Working collaboratively with the client, we prioritize use cases that are most important to the firm's strategy. And we're now in the process.

Working collaboratively with the client we prioritized use cases that are most important to the firm's strategy.

And we're now in the process of deploying those.

Speaker 3: We will continue to work with them over time to support their evolving needs as the firm grows.

We will continue to work with them over time to support their evolving needs as the firm grows.

Larger firms often select a phased approach to adopting the <unk> cloud platform.

Speaker 3: Larger firms often select the phase approach to adopting the Intact Cloud Plot.

Speaker 3: We recently onboarded an independent global business advisory firm with over 6,000 employees.

We recently on boarded an independent global business advisory firm with over 6000 employees.

Speaker 3: During the sales discovery process, we identified a specific use case to support improved compliance around their business intake process with a focus on some complex regulatory requirements in Europe .

During the sales discovery process, we identified a specific use case to support improved compliance around their business intake process with a focus on some complex regulatory requirements in Europe .

Speaker 3: Our pursuit required a deep understanding of EU regulation.

Our pursuit required a deep understanding of EU regulations sophisticated technical demonstrations and a strong integration with their existing enterprise strategy.

Speaker 3: sophisticated technical demonstrations and a strong integration with their existing enterprise IT strategy.

Working collaboratively with the firm's experts we identified a strategy for our cloud platform to both solve their immediate requirements.

Speaker 3: We identified a strategy for our cloud platform to both solve their immediate requirements and to set the firm up for additional adoption over time.

And to set the firm up for additional adoption over time.

Speaker 3: We see significant growth opportunity within our clients as we expand. Upselling with more adoption and cross selling.

We see significant growth opportunity within our clients as we expand up selling with more adoption.

And cross selling with new solutions.

As we expressed in our S. One we believe there is over $1 billion in expansion revenue opportunity in our top 100 clients alone.

Speaker 3: As we expressed in our S1, we believe there is over $1 billion in expansion revenue opportunity in our top 100 clients.

We invest in both client support and client relationship management to ensure that we continue to delight our clients.

Speaker 3: We invested both client support and client relationship management to ensure that we continue to delight our

Speaker 3: For example, a large global law firm and a long standing in-depth client using multiple in-depth solutions recently thought to modernize their approach to handling conflicts, business, and taken over all risks.

For example, a large global law firm and a long standing and tap client using multiple solutions recently thought to modernize their approach to handling conflicts business and taken overall risk management.

Speaker 3: They will soon deploy in-test cloud solutions for risk and intake, which will allow them to move faster to support client needs while ensuring full adherence to complex regulatory requirements.

It will soon deploy intest cloud solutions for risk and intake.

This will allow them to move faster to support client needs, while ensuring full adherence to complex regulatory requirements.

Speaker 3: As part of this project, we are also helping the Form Accelerate Cloud migration for their on-prem Intest solutions to our industry class.

As part of this project. We are also helping the firm accelerated cloud migration for their on Prem in tap solutions to our industry cloud.

Speaker 3: Our go-to market also includes a strong client marketing process.

Our go to market also includes a strong client marketing program in Q2, we hosted intact connects 21, our annual user conference over a two day period more than 1700 registered guests attended keynotes and sessions led by experts and peers in the professional and financial services industry.

Speaker 3: In Q2, we hosted Intap Connect 21, our annual user.

Speaker 3: Over a two-day period, more than 1,700 registered guests attended keynote and sessions led by experts and peers in the professional and financial services.

<unk>.

Speaker 3: Leaders from multiple sectors discuss the changing landscape and how to find opportunities, build the right teams and harvest knowledge to drive better out.

Leaders from multiple sectors discuss the changing landscape and how to find opportunities build the right teams and harvest knowledge to drive better outcomes.

Speaker 3: This event is just one way our continued photo market program engages our clients in strategic discussions around how they can modernize and adopt solutions that better connect their people processes and dates.

This event is just one way our continued go to market program engages our clients in strategic discussions around how they can modernize and adopt solutions that better connect their people processes and data.

Speaker 3: These examples illustrate our industry-specific go-to-market function and rely on a few key internships advantage.

These examples illustrate our industry specific go to market function and rely on a few key advantages.

Speaker 3: First, our low-code platform is designed for the industry.

First our low code platform is designed for the industry.

Speaker 3: and is configurable for each firm, allowing each client's unique needs to be served without requiring custom.

And as Configurable for each firm allow.

Allowing each client's unique needs to be served without requiring custom code.

Speaker 3: Next, our investment in experts with the experience in these industries who can help identify and showcase how our technology supports and meets the requirements of industry-specific use cases.

Next our investment in experts with the experience in these industries, who can help identify and showcase how our technology supports and meets the requirements of industry specific use cases for each client.

Next our services and client success teams.

Speaker 3: Next, our services and client success teams, along with our

Along with our partner ecosystem.

Speaker 3: focus on not just successful deployment, but successful adoption of our system.

Focus on not just successful deployment, but successful adoption of our solutions.

Speaker 3: Finally, in concert with our clients over the past 20 years, we have developed a unique go-to-market approach that meets the needs of these special partner-led firms.

Finally.

In concert with our clients over the past 20 years, we have developed a unique go to market approach that meets the needs of these special partner led firms.

Speaker 3: We have developed a well-earned reputation as a trusted provider within our client community.

We have developed a well earned reputation as a trusted provider within our client community and today, we often generate new business through network effects within this community.

Speaker 3: And today we often generate new business to network effects within this

Speaker 3: Our long-standing client relationships act as a significant driver of new opportunities for us as professionals move between firms.

Our longstanding client relationships act as a significant driver of new opportunities for us as professionals move between firms.

We believe our unique go to market model designed to serve the specific needs of this industry is a sustainable long term competitive advantage.

Speaker 3: We believe our unique go-to-market model designed to serve the specific needs of this industry is a sustainable long-term competitive.

Speaker 3: Our teams are working across the firm with the technology and department leaders that support the firm and the professionals themselves.

Our teams are working across the firm with the technology and departmental leaders that support the firm and the professionals themselves.

Speaker 3: As our industry accelerates its move to the cloud, our teams will guide all these constituents

As our industry accelerates its move to the cloud our teams will guide all of these constituents on how to best take advantage of the transformation.

Speaker 3: As we mentioned on our last call, over the past year, we have invested in building out a larger integrated go-to-market function to pursue our large and growing

As we mentioned on our last call over the past year, we have invested in building out a larger integrated go to market function to pursue our large and growing Tam.

Speaker 3: We will continue to invest as long as we see opportunity for growth, particularly to ensure that we remain the leader as our clients make the move to the cloud.

We will continue to invest as long as we see opportunity for growth, particularly to ensure that we remain the leader as our clients make the move to the cloud.

Speaker 3: We hire aggressively in Q2 and we are bullish that these new hires will help us to continue the capitalized on the market opportunity in front of us.

We hired aggressively in Q2.

We are bullish that these new hires will help us to continue to capitalize on the market opportunity in front of us.

Speaker 3: As our cloud continues to grow, we are able to drive further growth through adoption and expansion of this sticky long-term subscription revenue. All now,

As our cloud continues to grow we are able to drive further growth through adoption and expansion of this sticky long term subscription revenue.

I'll now turn the call over to Steve to discuss our financial results.

Speaker 4: Thanks, John , and thanks everyone for joining us today. Before I go through the numbers, I'd like to quickly review a few fundamentals of our financial model. As John discussed, the professional and financial firms that we serve are rapidly adopting purpose-built clouds.

Thanks, John and thanks, everyone for joining us today before I go through the numbers I'd like to quickly review a few fundamentals of our financial model as John discussed the professional and financial firms that we serve are rapidly adopting purpose built cloud solutions today, nearly all of our new customer wins are for cloud solutions and recurring.

Speaker 4: And day, nearly all of our new customer wins are for cloud solutions, and recurring revenue makes up approximately 85 to 90% of our total reps.

Revenue makes up approximately 85% to 90% of our total revenue.

Speaker 4: We believe cloud ARR and total ARR metrics are good indicators of the consistent growth of our annual recurring software.

We believe cloud IRR in total IRR metrics are good indicators of the consistent growth of our annual recurring software business.

Speaker 4: For the second quarter of fiscal 2022, our cloud ARR grew 50-20% year-over-year, and our total ARR grew 27% year-over-year.

For the second quarter of fiscal 2022, our cloud <unk> grew 52% year over year, and our total <unk> grew 27% year over year.

Speaker 4: In terms of revenue recognition, cloud air are as recognized as SaaS revenue, radibly, following a new sale or renewal.

In terms of revenue recognition cloud <unk> recognized that SaaS revenue ratably, following a new sale or renewal.

Speaker 4: On premises ARR is recognized in two parts, 50% as subscription license revenue recognized upfront at the time of the sale or renewal, and 50% as support revenue, recognized rateably and included in our SaaS and support revenue launch.

On premises <unk> is recognized in two parts, 50% as subscription license revenue recognized upfront at the time of the sale or renewal and 50% as support revenue recognized Ratably and included in our SaaS and support revenue line.

Speaker 4: Because it is recognized grateably, staff and support revenue will generally be more predictable quarter to quarter.

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

Speaker 4: In contrast, subscription license revenue can vary quarter to quarter because it is recognized as revenue episodically when the subscription licenses are initially delivered or renewed.

In contrast subscription license revenue can vary quarter to quarter, because it is recognized as revenue episodically when their subscription licenses are initially delivered or renewed.

Speaker 4: Okay, moving to our numbers. Cube 2 is another strong quarter for Intab as follows.

Okay moving to our numbers Q2 was another strong quarter for in tap as follows.

Speaker 4: Total revenue was 64.7 million, up 30% year over year, driven primarily by continued strong sales of our cloud solutions, as well as by solid growth and professional...

Total revenue was $64 7 million up 30% year over year, driven primarily by continued strong sales of our cloud solutions as well as by solid growth in professional services revenue.

Speaker 4: SAS and support revenue was 47.0 million, up 36% year over year, reflecting both new sales and new clients and upsells and cross-sells to existing clients of Intel's purpose-built cloud solution.

SaaS and support revenue was 47.0 million up 36% year over year, reflecting both new sales to new clients and Upsells and cross sells to existing clients of <unk> purpose built cloud solutions.

Speaker 4: The description license revenue was 9.3 million compared to 9.8 million in the prior year period. Primarily reflecting renewals of on-premises description license.

Subscription license revenue was $9 3 million compared to $9 8 million in the prior year period, primarily reflecting renewals of on premises subscription licenses as.

Speaker 4: As noted previously, this revenue line item is somewhat variable on a quarterly basis.

As noted previously this revenue line item is somewhat variable on a quarterly basis.

Speaker 4: Professional services revenue is 8.4 million, as compared to 5.2 million in the prior year period, reflecting implementations of new software in a more normalized market, as compared to the COVID influence prior year period.

Professional services revenue was $8 4 million as compared to $5 2 million in the prior year period.

The implementations of new software and a more normalized market as compared to the COVID-19 influenced prior year period.

Speaker 4: Overall, we continued to execute our land and expand model, ending the quarter with more than 2,000 clients. 467 of which had ARR of more than $100,000 up from 380 in the prior year period.

Overall, we continued to execute our land and expand model ending the quarter with more than 2000 clients 467 of which had <unk> of more than $100000 up from 380 in the prior year period.

Speaker 4: In addition, we upsold and cross-sold our existing clients, such that our trailing 12-month net revenue retention rate was above our expected range of 108% to 112% for the second quarter in a row.

In addition, we up sold and cross sold our existing clients such that our trailing 12 months net revenue retention rate was above our expected range of 108% to 112% for the second quarter in a row.

Before discussing gross margins expenses and profitability. Please note that I'll 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 our earnings press release and supplemental financial tables.

Speaker 4: Before discussing gross margins, expenses and profitability, please note that I will be discussing non-GAP results going forward. As a reminder, our GAAP financial results, along with the reconciliation between GAP and non-GAP results, can be found in our earnings press release and its supplemental financial tips.

Speaker 4: Gross margin was 68.5% as compared to 68.9% in the prior period, reflecting a slight mixed shift in the current period.

Gross margin was 68, 5% as compared to 68, 9% in the prior year period.

So I think a slight mix shift in the current period.

Speaker 4: For our recurring revenue solutions, Gross Margin was of modestly year over year to 82.5%.

For our recurring revenue solutions gross margin was up modestly year over year to 82, 5%.

Speaker 4: Operating expenses were $44.5 million, a $12.3 million increase year over year, as we continue to invest in sales, marketing, and product development to support our growth.

Operating expenses were $44 5 million, a $12 3 million increase year over year as we continued to invest in sales marketing and product development to support our growth.

Speaker 4: As compared to the prior year's quarter, this span reflects expenses of being a publicly traded company, as well as a more normalized spending pattern than during the second quarter of fiscal 2021, when we were still prudently managing the uncertainty of the COVID pandemic.

As compared to the prior year's quarter. This spend reflects expenses of being a publicly traded company as well as a more normalized spending pattern than during the second quarter of fiscal 2021, when we were still prudently managing the uncertainty of the Covid pandemic.

Speaker 4: Sales and marketing expenses 18.7 million, a 5.5 million increased year over year, as a function of increased head count and sales commission investments to capture new business and our growing market.

Sales and marketing expense was $18 7 million or $5 $5 million increase year over year as a function of increased head count and sales commission investments to capture new business in our growing markets.

Speaker 4: R&D expenses 13.1 million, a 2.0 million increase year over year, as we increase TedCount and made investments in our product road.

R&D expense was $13 1 million, a 2.0 million increase year over year as we increased head count and made investments in our product roadmap.

Speaker 4: GNA expense was 12.6 million, a 4.8 million increase year-over-year, in line with expected expense increases associated with being a publicly traded company.

G&A expense was $12 6 million or $4 8 million increase year over year in line with expected expense increases associated with being a publicly traded company.

Speaker 4: Non-GAP operating loss was a 0.2 million as compared to our second quarter fiscal 2021 operating profit of 2.0 million.

non-GAAP operating loss was <unk> 2 million as compared to our second quarter fiscal 2021 operating profit of $2 1 million, primarily reflecting the year over year increase in operating expenses just discussed.

Speaker 4: Primarily reflecting the u-over-year increase in operating expenses just discussed.

Speaker 4: Non-GAP net loss per share was fractionally negative in the second quarter of fiscal 2022. As compared to a loss of 12 cents in the second quarter of fiscal 2021, primarily we're citing a year of a year of a reduction in interest expense and an increase in the weighted average share.

non-GAAP net loss per share was fractionally negative in the second quarter of fiscal 2022 as compared to a loss of 12.

In the second quarter of fiscal 2021, primarily reflecting a year over year reduction in interest expense and an increase in the weighted average share count.

Speaker 4: Turning to the balance sheet, we ended the second quarter with 56.0 million in cash and cash equivalent, an increase of 18.4 million from the end of fiscal 2021 and zero debt out there.

Turning to the balance sheet. We ended the second quarter was $56.0 million in cash and cash equivalents, an increase of $18 4 million from the end of fiscal 2021 and zero debt outstanding.

Speaker 4: The Council's receivable decreased $8.1 million since the end of fiscal 2021 in line with the expected seasonality of our Billings and Collections.

Accounts receivable decreased $8 1 million since the end of fiscal 2021 in line with the expected seasonality of our billings and collections.

Okay.

Speaker 4: In our last quarter, we told you that we would forward invest in growth and we did so through strong go-to-market hiring during Q2. However, a number of our Q2 hires pushed their start days to January . An Amicon-related factors temporarily reduced our TNE and marketing program expenses for Q2. A trend we expect will evade in Q3.

Last quarter, we told you that we would forward invest in growth and we did so through strong go to market hiring during Q2. However, a number of our Q2 hires question their start dates to January and Ami Con related factors temporarily reduced our <unk> and marketing program expenses for Q2 trend.

We expect will abate in Q3.

Speaker 4: Because of these factors and because we continue to see opportunities to forward and invest in sales, marketing, and R&D to drive further growth, we are raising our profitability guidance somewhat moderately at this time. We expect to manage the business for positive free cash flow while running modest operating losses in line with our previous guidance for the next few quarters.

Because of these factors and because we continue to see opportunity to opportunities to afford to invest in sales marketing and R&D to drive further growth we are raising our profitability guidance somewhat moderately at this time, we expect to manage the business for positive free cash flow, while running modest operating losses in line with our previous guidance.

The next few quarters.

Now turning to guidance.

For the third quarter of fiscal 'twenty, two we expect SaaS and support revenue of between 47% and 48 billion and total revenue in the range of 65% to $66 million.

Speaker 4: For the third quarter of fiscal 22, we expect SAS and support revenue between 47 and 48 billion and total revenue in the range of 65 to 66.

Speaker 4: We expect a non-GAP operating loss in the range of five to six million, and a non-GAP net loss per share in the range of nine cents to 11 cents, using a basic share count of approximately 61 million common shares outspan.

We expect our non-GAAP operating loss in the range of $5 million to $6 million and a non-GAAP net loss per share in the range of nine to 11 using.

Using a basic share count of approximately 61 million common shares outstanding.

Speaker 4: For the full year fiscal 22, we expect sassant support revenue of between 185 and 189 million.

For the full year fiscal 'twenty, two we expect SaaS and support revenue of between $185 and 189 million and total revenue in the range of $258 million to $262 million.

Speaker 4: and total revenue in the range of 258 to 262 million.

We also expect our non-GAAP operating loss in the range of $11 million to $15 million.

Speaker 4: We also expect a non-gap operating loss in the range of 11 million to 15 million.

Speaker 4: and a non-GAP net loss per share in the range of 24 cents to 28 cents using a basic share count waited for fiscal year 22 of approximately 61 million common shares outstanding. With that,

And a non-GAAP net loss per share in the range of 24 to 28.

Using a basic share count weighted for fiscal year 'twenty two of approximately 61 million common shares outstanding.

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

Ladies and gentlemen to ask a question you want me to pass the spud under one can you on your Touchtone telephone.

Speaker 1: Ladies and gentlemen, as a question, you will need to press the star then the one key on your touch on the phone. To enjoy a question, press the pound key.

To withdraw your question Brad.

Speaker 1: Now first question coming from the line up. Jackson, Edder, Yulana, Sultan.

Now first question coming from the lineup Jackson Adam Your line is now open.

Speaker 5: Great. Thanks for taking our questions, guys. The first one is on the NetMe logo growth. So if we look at the 50 or so that you added in the quarter, could you maybe give us a sense for what are some of the top end markets that contribute to that?

Great. Thanks for taking our questions guys.

First one is on the net new logo growth. So if we look at the.

The 50 or so that you added in the quarter could you maybe give us a sense for what are some of the top end market that contribute to that.

That 50, new logos.

Speaker 4: Well, Jackson, let me take that. Thanks and good to hear you today. Most of our new logos, generally in a quarter, are driven in the financial services business where we have both.

Well, let me take that thanks, and good to hear you today.

Most of our new logos generally in a quarter are driven in the financial services business, where.

We have both.

Speaker 4: private capital markets and investment banking and other financial clients.

Private capital markets and investment banking and other financial clients.

Speaker 4: There are numerous of them and we have some real momentum there and we tend to have fewer new logos in our professional services segments where we've been in business longer and where much of our sales opportunity tends to be more of an upsell or cross-sell nature than new logos per se.

There are numerous of them and we have some real momentum there and we tend to have fewer new logos in our professional services segments, where we've been in business longer and where much of our sales opportunity tends to be more of an upsell or cross sell nature than new logos per se.

Speaker 5: Okay, perfect. And that actually leads into the second question, which was about the net revenue retention and being above that, you're one away to-

Okay, perfect and that actually leads into the second question, which was about the net revenue retention kind of being above that.

You are 108 to 112 range.

Speaker 2: What really is driving this? Is this existing law firms or existing professional services that might be adding other lines of business or geographies? Are they adding new products that are faster rates than you had previously expected? What's really driving the up front to the 112?

What really is driving that.

Existing law firms or existing professional services that might be adding.

Other lines of business or geographies are they adding new products at a faster rate than you had previously expected what's really driving that.

The upside to the 112.

Speaker 4: Well, what we're seeing really is some pretty balanced, good sales motions across the board and in financial services that typically leans toward upsell of additional users where people have achieved success in the implementation and it's working well and more people want to find up for it in professional services.

Well, what we're seeing really is some pretty balanced good sales motions across the board and in.

In financial services that typically yes leans toward upsell of additional users where people have achieved success in the implementation and thats working well and more people want to sign up for it and professional services and legal and elsewhere. It's typically cross.

Speaker 4: in legal and elsewhere, it's typically cross-cell of additional product functionality. And there's lots of opportunity there. So it's a fairly balanced contribution from both. And yes, it's been better than our range here at two quarters and rows. So we're looking, continue to look at that and are pleased with it.

<unk> <unk> of additional product functionality and theres lots of opportunity there. So its a fairly balanced contribution from both and yes, it's been better than than our range here two quarters in row. So we're looking looking continue to look at that and are pleased with it.

Yeah, Okay, great. Thanks for taking my questions.

<unk>.

Speaker 1: Our next question coming from Joanna Kojai Kira, you let me know.

And our next question coming from the line of.

Thank you your line is open.

Hey, John it's Steve Thanks for taking my questions really really great quarter.

Speaker 5: Hey, John F. Steve. Thanks for taking my questions. Really, really great quarter. I kind of wanted to build on that last question from Jackson. Okay, so NRR was above that one away to 112 range, secondary quarter there. So great news. I guess, when would you feel comfortable maybe raising that range? And then I guess digging in a little bit more, on this quarter for the NRR, was it higher than last quarter? So any sort of color there would be helpful.

I kind of wanted to build on that last question from Jackson. Okay. So MLR was above that 108 to 112 range second straight quarter. There. So great news I guess when would you feel comfortable maybe raising that range and then I guess digging in a little bit more on this quarter.

Was it higher than last quarter, so any sort of color there would be helpful.

Sure well I.

Speaker 4: Sure. Well, I think it's fair to say that if we see this kind of sustained success.

It's fair to say that if we see this kind of sustained success.

Speaker 4: By next quarter, there's a chance we would consider changing this revising some next quarter, Koji. We were right around where we were last quarter, could be honest.

By next quarter, there is a chance we would consider changing this revising somewhat next quarter Koji.

We were.

Right around where we were last quarter to be honest we were.

Speaker 4: Just as good if that's slightly better than last quarter. So we're optimistic about that. And we just want to be careful with the trends we see. And it works out quarter to quarter, but really good business kind of firing on all cylinders here right now across the board.

Just as good if not slightly better than last quarter. So we're optimistic about that and we just want to be careful with the trends, we see and it works out quarter to quarter, but really good business kind of firing on all cylinders here right now across the board.

Speaker 5: Got it, got it, thank you. And then on the ARR specifically on the cloud ARR side, you know, thanks for the color of their new logos coming from financial services. But from ARR and thinking about the 50% plus growth for the second straight quarter, I mean, is that growth coming from, you know, it sounds like more deal cloud than one place and, you know, I guess maybe more financial services versus professional services or, you know, how should we be thinking about, you know, where that strength is coming from in the cloud ARR?

Got it got it. Thank you and then on the <unk> specifically on the cloud side.

Thanks for the color there new logos coming from financial services.

And thinking about the 50% plus growth for the second straight quarter, I mean is that growth coming from it sounds like more deal cloud that one place.

I guess, maybe more financial services versus professional services or how should we be thinking about where that strength is coming from the cloud <unk> growth.

Speaker 4: will know really it is pretty balanced on an absolute dollar basis between the two if you will i think that as he said before just based on where the two parts of the business started in their history in thousand so forth there's a little bit quicker growth in financial services been in pre-f personal services on a sort of a percentage growth rate basis but we're getting pretty

Well no really it is pretty balanced on an absolute dollar basis between the two if you will I think that as we've said before just based on where the two parts of the business started in their history in size and so forth. There is a little bit quicker growth in financial services and professional services on a sort of a percentage growth rate basis, but we're getting pretty.

Speaker 4: pretty good and pretty balanced contribution from both as part of the cloud growth. As you know, it's all the new sales are cloud, so they're coming from those two twin engines if you will. Got it. Got it. Thanks.

Pretty good and pretty balanced contribution from both as part of the cloud growth as you know, it's all all the new sales our cloud. So they are coming from those two twin engines. If you will.

Got it got it thanks, guys. Thanks for taking my questions I appreciate it.

Okay.

Yes.

Yeah.

Our next question coming from the line of Kevin Mcveigh. Your line is open.

Speaker 1: Our next question coming from Lana of Kevin McPay, you're on his phone.

Thanks, So much and let me add my congratulations as well.

Speaker 6: Thanks so much and let me in my congratulations as well. Just to follow up on the client's success, it seems like you're capturing a larger percentage of clients with a or over 100,000. Can you help us understand? Pardon me. What the average client size is today, in terms of employees, and how that's been trending over the last couple of quarters. Thank you.

Just to follow up on the client success. It seems like youre, capturing a larger percentage of clients where they are over 100000 can you help us understand pardon me what the average client size is today in terms of employees and how thats been trending over the last couple of quarters.

Well im not sure I have it.

Speaker 4: employees in an average size for you in terms of ARR, obviously, if you just kind of divide our Our ARR by the 2000 plus clients, so you'll see that the average for the business is over a hundred thousand dollars But there's a spread there and terms of employee size I don't want to hazard a number for you. John . You may have some color. You would add there

Employees and an average size for you in terms of.

Obviously, if you just kind of divide our our IRR by that 2000, plus clients. So youll see that the average for the business is over $100000.

But there is a spread there in terms of employee size I don't want to hazard a number for you John .

John You May have some color you would add there.

Yes.

Speaker 3: Well, the range of firms that we sell to today that we count in our client base.

Well the range of firms that we sell to today that we count on our client base.

Go from.

A handful of people at <unk>.

Speaker 3: A handful of people at a just-started private capital firm.

Just started private capital firm.

Speaker 3: maybe five to 20 people at the small end. And the largest firms are...

Maybe five to 20 people at the small end.

And the largest firms or the global.

Speaker 3: investment or advisory firms, including the big four, which could have 180, 200,000 employees.

Investment advisory firms, including the big four which could have a 180 to 200000 employees.

Speaker 3: So the platform does scale. We've built it in a way that supports the largest firms in the world, and then we get the cloud benefit of being able to provide that level of capability and AI power down to the smallest just started firm.

So the platform.

Does scale, we've built it in a way that supports the largest firms in the world and then we get the cloud benefit of being able to provide that level of capability in AI powered down to the smallest just started firms. So our go to market is organized by industry, but also by firms size.

Speaker 3: So our go-to-market is organized by industry, but also by firm size. And we engage a little bit differently, depending on the scale of the firm, but overall,

And we engaged a little bit differently, depending on the scale of the firm.

But overall, we're able to address.

Speaker 3: big chunk of the professional financial services market globally. So we're excited about the progress that we're making and winning clients of these different sizes because it shows the growth potential of the business into the market.

Big chunk of the professional financial services market globally. So we're excited about the progress that we're making in winning clients of these different sizes because it.

<unk> the growth potential of the business into the market.

That's great that's great and then.

Speaker 6: you know it seems like given the acceleration in the revenue

It seems like given the acceleration in the revenue.

Sure.

Speaker 6: help us maybe to mention that it's not really any kind of COVID related poll forward just given the continued acceleration. Is that fair? I mean, you know, from a implementation or just overall.

Just help us maybe dimensionalize it not really any kind of COVID-19 related pull forward.

Just given the continued acceleration is that fair I mean from a <unk>.

Implementation or just overall client spend perspective.

Well, yes, there is no pull forward certainly from.

Speaker 4: Well, yeah, there's no pull forward, certainly from, you know, really from the next quarter, if that's what you're asking. And, you know, there are some COVID related comparisons.

Really from from next quarter, if thats, what youre asking.

Our Cove.

Are some COVID-19 related comparisons if you go back a full year quarter over quarter that.

Speaker 4: go back a full year quarter of a quarter that you're looking at here, but we're in a pretty normalized and pretty good business environment right now. That's what we're mostly, you know.

Youre looking at here, but.

We're in a pretty normalized and pretty good business environment right now that's what we are.

Most of it.

Executing on.

Great Congrats again.

Thanks.

Our next question coming from the line of Brian Peterson of Raymond James Your line is open.

Speaker 1: Our next question coming from Delina, Brian Peterson, or Freeman James, your lunch is up.

Speaker 2: I thank you all of them and I'll have to go back and grab some strong results. So first of all, John , I'm curious, I'm supposed to use your conference, you know, anything that you can share in terms of customer conversations or pipeline or any kind of developments from pipeline in terms of how they may play out over the next few years.

Thanks, Hillman I'll Echo my congrats on the strong results. So first of all John I Am curious post the user conference.

You can share in terms of customer commerce conversations or pipeline or any kind of developments.

From pipeline in terms of how that May play out over the next few years.

Okay.

Thanks, Brian .

Speaker 3: The Intent Connect 21 event was a fantastic event. We had 1700 folks attend from across all the sub-birdacles that we call on.

So just how can that 'twenty one event was a fantastic event, we had seven 700.

Folks attend from across all the sub verticals that we call on.

Speaker 3: One of the interesting things that came out of it was how common and shared the challenges were for the firms that have a little bit of a different specialty each one, but the professionals are grappling with the same issues and the business services teams that support the firms are grappling with the same issues. So there was a lot of enthusiasm.

One of the interesting things that came out of it.

Was how common and shared the challenges were for these firms that have a little bit of a different specialty each one but the professionals are grappling with the same issues in the business services team to support the firms are grappling with the same issues. So there was a lot of enthusiasm.

Speaker 3: across the sub-borticles to work together on discussing common opportunities for technology transformation. So that was a big theme that came out of it.

Across the sub verticals to work together on discussing common opportunities for technology transformation. So that was a big theme that came out of it.

Speaker 3: There also was a real discussion of the impact of COVID on opening the eyes of these farms to digital transformation, to cloud, to better enabling.

There also was a real discussion of the impact of Covid on opening the eyes of these firms to digital transformation to cloud to better enabling.

Dispersed or hybrid workforces and so a lot of the conversations we're reinforcing what we've been experiencing wishes. These firms through COVID-19 have shifted some of their.

Speaker 3: dispersed or hybrid workforces. And so a lot of the conversations were reinforcing what we've been experiencing, which is these firms through COVID have shifted some of their.

Speaker 3: focused towards better technology enablement and digital transformation for their people to compete in a changed environment. There's a lot of discussion about that to your question about pipeline it was a very

Focus towards better technology enablement and digital transformation for their people to compete in a changed environment. There's a lot of discussion about that too.

To your question about pipeline it was a very.

Speaker 3: successful event for us. A lot of new attendees that we had not met before as well as a lot of our Install-based coming and people referring to each other to get into the in-tap community. So we're encouraged by the enthusiasm for what we're doing out there and I think you're seeing some of it flow through some of the results.

Successful event for US a lot of new attendees that we had not met before as well as a lot of our installed base coming in people, referring to each other to get into the community. So we are in.

<unk> by the enthusiasm for what we're doing out there and I think youre seeing some of it flow through to some of the results.

That's great to hear and maybe a follow up for Steve I know you mentioned some of the hiring efforts and we will see those kind of those investments start to take on in the third quarter here.

Speaker 2: That's great to hear. And maybe a follow up for Steve. I know you mentioned some of the hiring effort and we'll see those kind of those investments start to get on in the third quarter here. You know, how do we think about that investment intensity in the go-to-market effort, you know, especially as we're thinking about a couple of years now, should we expect that to continue going forward or we should start to see some benefits of those, maybe coming years. Thanks, guys.

How do we think about that investment and intensity in the go to market effort, especially as we're thinking about a couple of years out should we expect that to continue going forward or we should start to see some benefits of those maybe in coming years. Thanks guys.

Speaker 4: Yeah, no, we are continuing to afford and invest when we can in sales and marketing. As you said last quarter, we've had some success here, so far this year, and that continues. You know, we are adding to our sales and marketing resource.

Yes, no we are continuing to forward invest when we can and sales and marketing. We as you said last quarter. We have had some success here so far this year and that continues.

We are adding to our sales and marketing resources.

Speaker 4: you know, on a north sort of 25% annualized kind of growth rate at the moment. And I think that since we see so much opportunity right now, we're going to continue to look to do that. And the, you know, there's hiring and ramp up time and so on. That's part of the mix. So productivity improves after someone starts and it gets better. But we're optimistic and we'll continue to do that going forward if we see this market opportunity in front of us.

On north sort of 25% annualized growth rate at the moment and I think that since we see so much opportunity right now we're going to continue to.

To look to do that and the hiring and ramp up time and so on that's part of the mix. So productivity improves after someone starts and it gets better but we're optimistic we'll continue to do that going forward as we see this market.

Opportunity in front of us.

Yes.

Thank you.

Our next question coming from the line of Mark Helane. Your line is open.

Speaker 1: Our next question coming from the line out of parking lane, you'll notice open.

Speaker 7: Hi guys, this is Matthew Kikert, I'm from Parker. Really impressive numbers, specifically from CloudAR, ARR keeping that north of 50%. And you get some great details well, breaking down financial services. You've seen more interest there, where professional services and a bit of a mix from cloud migration and net new logos. But I want to get a little bit into maybe the timing of the onboarding process for each of those segments.

Hi, guys, Matthew kicker onshore Parker really impressive numbers, specifically from Qatar, keeping that north of 50% and you gave some great detail as well.

<unk> down financial services are you seeing more interest there were professional services and then have a mix from cloud migration net new logos, but I want to get a little bit into maybe the timing of the onboarding process for each of those segments.

Speaker 7: from first point of contact with the client all the way to when they're being added into the platform, what does that length of time look like? And is it different based on each of those segments that I mentioned?

From first point of contact with the client all the way to win there being added into the platform. What does that length of time look like and is it different based on each of those segments that I mentioned.

Okay.

Okay. So thanks Matthew.

Speaker 3: Okay, so thanks Matthew. The question is, how long does it take us to onboard new clients when we win them?

Question is.

How long does it take us to onboard new clients when we win them.

Speaker 7: Yeah, exactly. And if it's different versus professional services or financial services or cloud migration versus a net new logo.

Yes exactly.

Versus professional services or financial services or.

Cloud migration versus net new logo.

Speaker 3: Yeah, so for the smaller firms, it's faster and for the larger firms, it takes longer obviously because there were complex environments that were integrating into.

Yes, so for the smaller firms, it's faster than for the larger firms. It takes longer obviously, because they're more complex environments that we're integrating into.

Speaker 3: On average, if you look across the whole client base on all scenarios, it's about a six to nine month process, which is weighted towards the larger ones. For the smaller firms that we're getting up and running, we can do it in 30 to 60 days. So there's a very rapid experience for the smaller organizations, but on average, you're looking at something like six to nine months across the whole client.

On average if you look across the whole client base in all scenarios, it's about a six to nine month process, which is weighted towards the larger ones for the smaller firms that were getting up and running we can do it in 30 to 60 days. So theres, a very rapid experience for the smaller organizations, but on average.

<unk> Youre looking at something like six to nine months across the whole client base.

Okay, and then Thats great Info and then does that does that affect how you invest in your sales capacity.

Speaker 7: Okay, and then that's great info. And then does that, is that a fact how you're investing in your sales capacity? And how does the, you know, you touch a little bit and go to market, but is it differ, you know, based on whether, you know, any of those four segments that were mentioned?

And how does the.

<unk> go to market, but does it differ.

Based on weather.

Any of those four segments that were mentioned.

In terms of how we're investing in the go to market team.

Yes by segment are firm size, yes, exactly how does that breakdown affect how you are investing in those different teams.

Speaker 7: Yeah, segment or firm size. Yeah, exactly. How does that break down effect? How you're investing in those different teams?

Yes, we're growing the teams.

Speaker 3: pretty consistently because we see strong balance growth across the different firm sizes and segments. Obviously as we bring...

Pretty consistently because we see strong balanced growth across the different firms sizes and segments.

Obviously as we bring on a lot of.

Speaker 3: new clients that we didn't have before, we're also adding people for

New clients that we didn't have before we're also adding people for.

Speaker 3: support and client success to support the new client relationship. You'll see a little bit of waiting in investment there to make sure that we are in a position not just to win the client but to take care of them and to grow the accounts from there. So it's pretty balanced with some emphasis where we're winning new clients.

Support and client success to support the new client relationship you will see a little bit of waiting an investment there to make sure that we are in a position not just to win the client, let's take care of them and to grow the accounts from there. So it's pretty balanced with some emphasis where we're winning new clients.

Okay, great. Thank you.

Our next question coming from the line of Terry Tillman. Your line is now open.

Speaker 1: Our next question coming from the line up. Perry Tillman, Silenis Nelson.

Speaker 2: yeah thanks in the congratulate relations for me as well hi John steven david uh... i had two questions i guess the first question and i think i've asked you John a little bit about this in the past

Yes, Thanks, and congratulations from me as well Hi, John Stephen David.

Two questions I guess, the first question and I think I've asked to John a little bit about this in the past.

Speaker 2: always interesting with companies to go public and what kind of benefits they see. You all definitely have some footholds within some really large financial services and professional services firms. What I'm curious about is three months further into being a public company. How are you doing all larger transformational deals like $1 million deal activity with some of these bigger firms now that you're public. You've got financials out there. You don't have debt, etc. And then I have to follow up.

It's always interesting with companies that go public what kind of benefits. They see you will definitely have some footholds within some really large financial services and professional services firms. What I'm curious about is three months further into being a public company. How are you doing a larger transformational deals like $1 million deal activity with some of these bigger firms now that you're public you've got finance.

<unk> out there you don't have debt et cetera, and then I had a follow up.

Speaker 3: Yeah, thanks, Terry. We are pleased with the visibility that the IPO has given us. It continues to help us in winning larger clients. We gave a couple examples of client wins, including some that were quite large this quarter. And I think that the public visibility really helps.

Yes, Thanks Terry.

We're pleased with the visibility that the IPO has given us it continues to help us in winning larger clients. We gave a couple of examples of client wins, including some that were quite large this quarter and I think that the public visibility really helps in that regard.

Speaker 3: in that regard. We also are seeing some growth in our existing clients that we had wanted the private company before IPO, but we have visited the higher levels of the organization now. And that's...

<unk>.

We also are seeing some growth in our existing clients that we had won as a private company before our IPO, but we have visibility to higher levels of the organization now and Thats, helping us.

Speaker 3: For the larger transformational type deals, we are increasingly working on these cloud transformations for the larger firms. Obviously, it takes them longer to lay out that roadmap, but we're making pretty consistent progress in bringing our clients to the cloud for the first time in a bunch of areas. And we're excited about what that means for them and for our customers.

For the larger transformational type deals we are increasingly working on these cloud.

Transformations for the larger firms, obviously, it takes them longer to lay out that roadmap, but we're making pretty consistent progress in bringing our clients to the cloud for the first time in a bunch of areas and we're excited about what that means for them and for our future.

Speaker 2: got it that sounds good and i guess the follow-up is it's just an education question for me what what kind of correlation do you see when we're looking at financial services or even professional service maybe on the uh... the the law firm of legal side

Got it that sounds good and I guess some follow up is just an education question for me.

What kind of correlation do you see when we're looking at financial services or even professional service maybe on the law firm of the legal side.

Speaker 2: You know, and who knows how the rest of the year goes, but whether it's capital markets or investment banking fees?

And who knows how the rest of the year goes, but whether it's capital markets or investment banking fees.

Speaker 2: If with the volatility that wanes and some of the goodness that has been going on in those industry starts to wane and there's just not as much activity, you know, does that actually create an opportunity where they're not quite as stretched and slammed with just going out and doing business name more time to look at software? Are my putting words in your mouth? Was that wishful thinking?

With the volatility that wanes and some of the goodness that has been going on in those industry starts to wane and Theres just not as much activity does that actually create an opportunity where they're not quite as stretched and slammed with just going out and doing business in a more time to look at software or am I, putting words in your mouth or is that wishful thinking.

Or does do things tend to slow down if the fees start kind of drawing up I'm, just trying to understand a little bit more about what kind of correlation there might be with your business and just the end market. Thank you.

Speaker 2: or does things tend to slow down if the fees start kind of drying up. But just trying to understand a little bit more about what kind of correlation there might be with your business and just the end market. Thank you. Yeah, thank you.

Yes, Thank you and.

One of the interesting examples.

Speaker 3: that we can look back to was the 2008-2009 recession.

We can look back to 2008 2009 recession.

Speaker 3: And those firms did choose that time to make pretty meaningful investments in their infrastructure. We are benefiting today, obviously, from the strong markets that are going on. But one of the reasons that we like this end market is that these firms have multiple strategies and practices that they pursue and they tend to shift their business internally as the business cycle occurs.

And those firms did choose that time to make pretty meaningful investments in their infrastructure. We are benefiting today, obviously from the strong markets that are going on but one of the reasons that we like this end market is that these firms have multiple strategies and practices.

<unk> pursue and they tend to shift their business internally as the business cycle occurs.

Speaker 3: You mentioned law firms, law firms will switch from doing deals and financing to doing litigation and restructuring and that sort of thing. And we've found that we grew right through the last recession. So we're not predicting anything of the macro economy, but I think we're well positioned to handle it with this end market as things go. Maybe better than a lot of other companies that might take a harder hit.

You mentioned law firms law firms will switch from doing deals and financing to doing litigation and restructuring and that sort of thing and we've found that we grew right through the last recession. So we're not predicting anything on the macro economy, but I think we're well positioned to handle it with this end market as things so maybe better.

<unk> spent a lot of other companies that might take a harder hit.

Got it thank you.

Speaker 1: Next question coming from Delano Bryan Ford, C. Lana, so...

And our next question coming from the line of Brian Schwartz. Your line is open.

Speaker 5: Yeah, Hi Steven John . Thanks for taking my question this afternoon. I have a macro question for John . So when you're thinking about all the puts and takes of everything that you've been talking about on the call here this afternoon, if you look out to this year, so 2022, would you say in aggregate that you're expecting the demand environment to be stronger, weaker or the same than what you had in 2021?

Hi, Steve and John Thanks for taking my question. This afternoon.

I have a macro question for John So when Youre thinking about all the puts and takes of everything that you've been talking about on the call here. This afternoon.

You look out to this year. So 2022 would you say in aggregate that youre expecting the demand environment to be stronger weaker or the same than what you had in 2021.

Speaker 3: Well, compared to calendar 2021, it's definitely a stronger environment. I mean, we're seeing that just in these numbers.

Well compared to calendar 2021, it's definitely a stronger environment I mean, we're seeing that just in these numbers that we're showing.

Speaker 3: that we're showing. Our professional services line most obviously.

Our professional services line most obviously.

Came back from a period when the firms, we're really pause not knowing what's going on with Covid.

Speaker 3: came back from a period when the firms were really paused, not knowing what was going on with COVID. So I think just...

I think just.

Quantitatively.

Speaker 3: We're seeing a stronger environment. That being said, we also see the firms have made a pretty significant switch here.

Seeing a stronger environment that being said, we also see the firms have made a pretty significant switch here.

Speaker 3: to investing in technology and going through the cloud transformation looking forward.

Two investing in technology and going through the cloud transformation looking forward past 2022 into 2023 folks are really thinking about this strategically in a way that.

Speaker 3: past 2022 into 2023. Folks are really thinking about this strategically in a way that...

Speaker 3: You know, people always talked about the importance of technology in these firms, the importance of the professionals' importance to their clients, but I think it sunk in here. So we're excited about what's happening. The business is really, as do you said, firing on all four cylinders, but I think looking ahead is good demand for us. We're in person.

People always talked about the importance of technology in these firms the importance of the professionals importance to their clients, but I think it's sunk in here. So we're excited about what's happening the business is really as Steve said firing on all cylinders, but I think looking ahead. There is good demand for us.

We're encouraged by what we're seeing.

Speaker 5: Good. And then the one follow up I had for Steve, just wondering if a young pack there a little bit, but can you unpack even further where these growth investments are going? So, you know, it sounds like sales and marketing line. You know, if they go into advertising, is it all increasing the capacity, is it marketing, new markets? Could you provide a little bit more color on, you know, where you're increasing these growth investments? Thanks a lot. Yes. Sure. Let's hear it.

Good and then the one follow up I had for Steve just wondering if the young tact a little bit but can you unpack even further where these growth investments are going to.

It sounds like sales and marketing line.

Is it going towards advertising or is it all increasing the capacity as a marketing new markets.

Could you provide just a little bit more color on where you are increasing these growth investments. Thanks, a lot yes.

Sure and I think is it is weighted to <unk>.

Speaker 4: waited to, you know, sales folks and sales capacity and support kind of on the ground because we're seeing, John said, pretty good opportunities here. We really want to take advantage of those. We certainly across the border are also investing and marketing and

Sales folks and sales capacity and support.

Kind of on the ground because we are seeing as John said pretty good opportunities here, we really wanted to take advantage of those we certainly across the board are also.

Investing in marketing and.

Speaker 4: related areas, now we had our big conference in the fall. I mean, the Omicron thing was a little bit of steam out of what we might have sped actually. So that was probably why we weren't spending quite so much in Q2, but we see opportunities across the board there. So it's balanced, but I would say it's a weighted a bit towards sales capacity and support for sales efforts in the field. Thank you very much.

Related areas, we had.

You had a big conference in the fall.

The AMA client thing was.

Took a little bit of steam out of what we might have spent actually so there's that was partly why we weren't spending quite so much in Q2, but we see opportunities across the board there. So its balance, but I would say, it's weighted a bit towards sales capacity and support for sales sales efforts in the field.

Okay.

Thank you very much.

Okay.

Okay.

And we have a follow up question from Jackson, Adam Your line is now open.

Speaker 2: Great, thanks. Just a quick follow up on one of the upsell answers that you gave to someone's question earlier. Even within maybe one of these larger investment banks or private equity funds, I mean, does the land sometimes, like how small will the land go? You...

Great. Thanks, just a quick follow up on one of the upsell answers that you that you gave because someone's question earlier even.

Even within maybe one of the larger investment banks or private equity funds.

Does the land sometime like help small where the land go.

Speaker 5: You know, a little d within, I don't know, like just a particular team within equity capital markets, and then you can go to debt capital markets or it's in beyond. Or to go fund by fund sometimes it's been private actually like how small are we talking about, potentially within the land of some of these larger cuts.

Will it be within I don't know like just a particular team within equity capital market and then you can go to debt capital markets and beyond or does it go fund by fund, sometimes when private equity like how small are we talking about potentially within the land from the larger customers.

Speaker 4: Yeah, I'll take a shot at that and maybe John can elaborate. I mean, Jackson, I think we can land, you know, as John said, at 20 people. And that could be a division or a small section of a firm or it could be, you know, a part of one unit there. And then we can expand from there. So it can be relatively, if that's, if you consider that relatively small, we can also land quite a bit bigger than that. Obviously.

Yes, I'll take a shot at that and maybe John can elaborate I mean, Jackson I think we can land as John said 20 people.

And that could be a division or a small section of affirm or it could be.

A part of one unit there and then we can expand from there so it can be relatively.

If you consider that relatively small we can also land quite a bit bigger than that obviously and we would like to generally speaking, but I think we are efficient and effective enough and we've seen that success.

Speaker 4: I would like to, generally speaking, but I think we are efficient and effective enough and we've seen enough success that that is all going to be a good way for us to go.

<unk> is often a good way for us to go.

I don't know John if you want to elaborate on that.

Speaker 3: Yeah, and those bigger institutions, particularly in partnership firms are the ones that have a history as partnerships. There's a lot of independent decision-making.

Yeah, and the bigger institutions, particularly as partnership.

Firms are the ones that have a history as partnerships, there's a lot of independent decision, making and that actually plays strongly to our advantage because we can win footprints in some of these firms and start to show success improve success with some very influential small groups that can make their own call on what they bring in so we're pragmatic about that and where.

Speaker 3: And that actually plays strongly to our advantage because we can win footprints in some of these firms and start to show success and growth success with some very influential small groups that can make their own call on what they bring in. So we're pragmatic about that and we're finding that it's very successful. Once the rest of the organization starts to see what we're doing and how different it is from the existing environment, we start to grow. And that's a key part of our overall strategy.

Finding that it is very successful at once the rest of the organization starts to see what we're doing and how different it is from the existing environment, we start to grow and Thats a key part of our overall strategy.

Okay, great that makes a ton of time. Thank you.

Speaker 1: I am sharing no further questions at this time. I would not like to tend to call back over to Mr. Help for any closing remarks.

And I'm showing no further questions at this time I would now like to turn the call back over to Mr Hill for any closing remarks.

Speaker 3: Okay, thank you all for joining us. We appreciate your time as always. We're excited about the opportunity in front of us and we're looking forward to talking to you again in Q3.

Okay. Thank you all for joining US we appreciate your time as always we're excited about the opportunity in front of us and we're looking forward to talking to you again in Q3.

Speaker 1: Please, and gentlemen, that's a good conference for today. Thank you for your participation. You may now disconnect.

Ladies and gentlemen that does conclude our conference for today. Thank you for your participation you may now disconnect.