Q3 2024 Intapp Inc Earnings Call

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Operator: Good day, and thank you for standing by. Welcome to the Intapp Fiscal Third Quarter 2024 webcast. At this time, all participants are in listen-only mode.

Good day, and thank you for standing by welcome to the inter fiscal third quarter 'twenty 'twenty four webcast. At this time all participants are in 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 star one one on your telephone.

Operator: 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 star 11 on your telephone. You will then hear an automated message advising that your hand is raised.

Operator: We'll then hear an automated message advising your hand is raised to withdraw your question. Please press star one again, please be advised that today's conference is being recorded.

Operator: To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, David Trone, the Senior Vice President of Investor Relations. David, please go ahead.

Operator: I would now like to hand, the conference over to your first speaker today, David Trone as senior Vice President of Investor Relations.

David Trone: David Please go ahead.

David Trone: Thank you. Welcome to Intapp's fiscal third quarter 2024 financial results. On the call with me today are John Hall, Chairman and CEO of Intapp, and David Morton, Chief Financial Officer. During the course of this conference call, we may make forward-looking statements regarding trends, strategies, and the anticipated performance of our business, including guidance provided for our fiscal fourth quarter and full year 2024. These forward-looking statements are based on management's current views and expectations, involve certain assumptions made as of today, and are subject to various risks and uncertainties, including those described in our SEC filings and other publicly available documents that are difficult to predict and could cause actual results to differ materially from those expressed or implied by such forward-looking statements.

David Trone: Thank you welcome to impact fiscal third quarter 2024 financial results.

David Trone: On the call with me today are John Hall, Chairman and CEO.

David Trone: David Morton Chief Financial Officer.

David Trone: Intapp disclaims any obligation to update or revise any forward-looking statements except as required by law. Further, on today's call, we will also discuss certain non-GAAP metrics that we believe aid in the understanding of our financial performance. As a reminder, all of our financial figures we will discuss today are NINGAP, except for revenue and revenue growth and total remaining performance obligations. Our GAAP financial results, along with reconciliations of GAAP to non-GAAP financial measures, can be found in today's earnings release in a supplemental financial table, which is available on our website and as an exhibit to the Form 8K furnished with the FCC prior to this call, or a supplemental financial presentation, which is available on our website. With that, I'll hand the conversation over to John. Thank you, David. Good afternoon, everyone.

David Trone: During the course of this conference call. We may make forward looking statements regarding trends strategies and anticipated performance of our business, including guidance provided for our fiscal fourth quarter and full year 2024.

John: Forward looking statements are based on management's current views and expectations until certain assumptions made as of today's date.

John: Subject to various risks and uncertainties, including those described in our SEC filings.

John: And other publicly available documents that are difficult to predict and could cause actual results to differ materially from those expressed.

John: Or implied by such forward looking statements.

Speaker Change: <unk> disclaims any obligation to update or revise any forward looking statements, except as required by law.

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

John: All of our financial figures, we will discuss today are non-GAAP, except for revenue and revenue growth.

John: In total remaining performance obligations.

John: Our GAAP financial results, along with reconciliations of GAAP to non-GAAP financial measures can be found in today's earnings release.

John: Implemented financial tables.

John: Which is available on our website and as an exhibit to the form 8-K furnished with the SEC prior to this call.

John: Supplemental financial presentation, which is available on our website.

David Trone: With that I will hand, the conversation over to John.

John: Thank you David.

John: Good afternoon, everyone.

John T. Hall: Thank you for joining us as we share the results of our fiscal third quarter. We had an exciting quarter filled with events and announcements that I'll recap for you today. In Q3, we announced the release of new generative AI capability designed for the specialized needs of our target. We hosted our inaugural Investor Day. We held successful client and partner events. We acquired AI provider Delphi, and we updated our Applied AI Intelligence Applied Brand. We also drove strong results.

John: Thank you for joining us as we shared the results of our fiscal third quarter.

John T. Hall: We had an exciting quarter filled with events and announcements that I'll recap for you today.

John T. Hall: In Q3.

John T. Hall: We announced the release of new generative AI capabilities designed for the specialized needs of our target markets.

John T. Hall: We hosted our inaugural Investor day.

John T. Hall: We held successful client and partner events.

John T. Hall: We acquired AI provider Delphi.

John T. Hall: And we updated our applied AI intelligence applied branding.

John T. Hall: We also drove strong results.

John T. Hall: Through the acquisition of New Logo and the expansion of our existing accounts around the world. In Q3, our cloud ARR grew to $274.2 million, up 33% year over year. Cloud now represents 72% of our total ARR of $382.7 million. In the quarter, we earned staff and support revenue of 80.8, up 22% year over year, and total revenue of $110.6 million, up 20% year over year.

John T. Hall: Through the acquisition of new logos and the expansion of our existing accounts around the world.

John T. Hall: In Q3, our cloud <unk> grew to $274 $2 million.

John T. Hall: Up 33% year over year.

John T. Hall: Cloud now represents 72% of our total IRR of $382 7 million.

John T. Hall: In the quarter, we earned SaaS and support revenue of $80 8 million up 22% year over year, and total revenue of $110 6 million up 20% year over year.

John T. Hall: Before I go deeper into our third quarter highlights, you may have seen that just last week, we announced the acquisition of Transform Data International, a long-time Intapp partner that builds and implements enterprise collaboration techniques. We believe the combination of Intapp's solution and TDI's DomainX will optimize our clients' work within Microsoft applications.

John T. Hall: Before I go deeper into our third quarter highlights you may have seen that just last week, we announced the acquisition of transform data international.

John T. Hall: A lot of time in tap partner that builds and implements enterprise collaboration technology.

John T. Hall: We believe the combination of Intest solutions and TDI is domain expertise, we will optimize our clients work within Microsoft applications.

John T. Hall: Facilitating collaboration and laying the groundwork for the use of more advanced AI tools like CoPilot. We're pleased to welcome the TDI team to, Now I'll turn to our Q3 highlights, beginning with product. In February, we celebrated Intelligence Applied Launch at NASDAQ Marketplace in New York. After ringing the opening bell, we held investor day, followed by a standing room-only client.

John T. Hall: Facilitating collaboration at laying the groundwork for the use of more advanced AI tools like co pilot.

John T. Hall: We're pleased to welcome the CDI team to Intel.

John T. Hall: Now I will turn to our Q3 highlights.

John T. Hall: Getting with product innovation.

John T. Hall: In February we celebrated intelligence applied launch day.

John T. Hall: As that marketplace in New York.

John T. Hall: After ringing the opening Bell, we held Investor day.

John T. Hall: Followed by a standing room only client event.

John T. Hall: There, we unveiled our intelligence-applied strategy, which further strengthens our commitment to leading vertical AI for the markets we serve. We also released a set of new applied AI capabilities under our IntappAssist product framework. I am pleased to be able to share a bit more about these with you.

John T. Hall: There, we unveiled our intelligence applied strategy, which further strengthens our commitment to leading vertical AI for the markets we serve.

John T. Hall: We also released a set of new applied AI capabilities under our in tap assist products brand.

John T. Hall: I am pleased to be able to share a bit more about these with you now.

John T. Hall: First, we launched IntappAssist for DeoCloud, which integrates AI into everyday workflows to save professionals time by generating deal, company, and meeting summary reports and creating Relevant, Personalized, Targeted Email Outreach. Leveraging our partnership with Microsoft. The solution uses both Azure OpenAI and Intapp's proprietary firm data within DealCloud to generate much more knowledgeable language about the firm's deals, clients, and engagement. A significant advantage that helps the AI deliver more relevant, accurate results for our professionals on the first try.

John T. Hall: First we launched <unk> assist for deal cloud.

John T. Hall: Which integrates AI into everyday workflows to save professionals time by generating deal company and meeting summaries and creating relevant personalized targeted E mail outreach.

John T. Hall: Leveraging our partnership with Microsoft the solution uses both Azure open AI.

John T. Hall: And in taps proprietary firm data within deal cloud.

John T. Hall: To generate much more knowledgeable language about the firm's deals clients and engagements.

John T. Hall: A significant advantage that helps the AI deliver more relevant accurate results for our professionals on the first try.

John T. Hall: IntappAssist for DeoCloud is now generally available, and it has already been adopted by clients including Corporate Law Firm, A&L, goodbye, and the investment team at U.S. Realty Advisor, who chose deal cloud to replace a legacy horizontal CRM that required modification to meet the firm's needs.

John T. Hall: Is <unk> assist for deal cloud is now generally available.

John T. Hall: And it has already been adopted by clients, including corporate law firm.

John T. Hall: Goodbody.

John T. Hall: And the investment team at U S Realty advisors, who chose deal cloud to replace a legacy horizontal CRM that required modifications to meet the firm's needs.

John T. Hall: USRA viewed DealCloud as a long-term investment that would future-proof their business, and our platform stood out due to its real estate blueprint. Impressive roster of client adopters, and now new applied AI features like Intapp. The power of generative AI depends on data, which is why we released Intapp data as a solution available to all DL Cloud customers. Intapp data augments the firm's internal intelligence with information on more than 85 million companies and 200 million contacts, plus even more connectivity with third-party data. This nucleus of core data is critical to our application of generative AI so that our results are specific, accurate, relevant, and actionable.

John T. Hall: You SRA view deal cloud as a long term investment to future proof their business and.

John T. Hall: And our platform stood out due to its real estate blueprint.

John T. Hall: Impressive roster of client adopters.

John T. Hall: And now new applied AI features like <unk> assist.

John T. Hall: The power of generative AI depends on data.

John T. Hall: Which is why we released in data as a solution available to all deal cloud clients.

John T. Hall: In SAP data augments firms internal intelligence with information on more than $85 million companies and 200 million contacts plus.

John T. Hall: Plus even more connectivity with third party data partners.

John T. Hall: This nucleus of core data is critical to our application of generative AI. So that our results are specific accurate relevant and actionable.

John T. Hall: Drawing on our successful partnership with Microsoft, we welcomed their executives to the stage at our launch, as we shared the release of Intapp Walls for Copilot, a new solution that combines the power of Microsoft's technology with our industry-specific expertise and innovation in regulated markets information security. Intapp has long helped firms take control of their sensitive information with our walls. Intapp Walls helps control access to information for each professional, based on their unique rights under their client and regulatory obligations.

John T. Hall: Drawing on our successful partnership with Microsoft We welcome to their executives to the stage of our launch of that as we shared the release of in tap walls for co pilot.

John T. Hall: New solution that combines the power of Microsoft's technology with our industry specific expertise and innovation in regulated markets information security.

John T. Hall: <unk> has long helps firms take control of their sensitive information with our <unk> solution.

John T. Hall: It's helped walls helps control access to information for each professional base.

John T. Hall: Based on their unique rights.

John T. Hall: Under their clients and regulatory obligations.

John T. Hall: Intapp Walls for Copilot extends this ability to AI, giving firms visibility and control over the data that Copilot is authorized to access and surface for each user. It processes complex, overlapping policies and rules governing each professional and the firm's body of work and Translates Firm Policies into Native Security Controls for Each System That May Contain Sensitive Data. Walls for Copilot is yet another example of the combined power of Microsoft's technology with Intapp's industry-specific expertise and innovation. Our partnership with Microsoft continues to add value in other ways. In March, technology leaders from some of the world's most prominent accounting, consulting, and law firms attended our second annual CIO summit in red.

John T. Hall: In tap walls for co pilot extends the stability to AI.

John T. Hall: Giving firms visibility and control over the data that co pilot is authorized to access and surface for each year.

John T. Hall: It processes complex overlapping policies and rules governing each professional and the firm's body of work and.

John T. Hall: And translates firm policies into native security controls for each system that may contain sensitive information.

John T. Hall: Walter Co pilot is yet. Another example of the combined power of Microsoft's technology with Intest industry specific expertise and innovation.

John T. Hall: Our partnership with Microsoft continues to add value in other ways.

John T. Hall: In March technology leaders from some of the worlds most prominent accounting consulting and law firms attended our second annual CIO summit in Redmond.

John T. Hall: During this two-day event, CIOs, Intapp leaders, and Microsoft executives dug into the key issues they face today, including innovation, best practices, and change management needed to support these markets as we move into the generative AI era. Attendees were enthusiastic about both the event and the potential for continued innovation between our organizations. Returning to our launch event, the last new solution we revealed originated from a market research initiative that we conducted last year with DCM Institute. We studied business development behaviors and habits at partner-led firms.

John T. Hall: During this two day event.

John T. Hall: <unk> leaders and Microsoft executives dug into the key issues they face today, including innovation best practices and change management needed to support these markets as we move into the generative AI Europe.

John T. Hall: Attendees were enthusiastic about both the event and the potential for continued innovation between our organizations.

John T. Hall: Returning to our launch event.

John T. Hall: The last new solution, we revealed originated from our market Research initiative that we conducted last year with DCM insights.

John T. Hall: We studied business development behaviors and habits at partner led firms.

John T. Hall: The research findings identify, with strong data, that professionals who behave as activated people who make understanding and connecting with networks part of their daily habits tend to be the most successful in their firms. Using this research, we developed and launched the Activator Experience for DeoCloud. And help facilitate professionals' successful behaviors and habits using AI-powered SIGGRAPH. The solution helps each professional to be more conscious and consistent in these behaviors to drive more success in their business development activities.

John T. Hall: The research findings identified with strong data that professionals, who behave as activators.

John T. Hall: Who make understanding and connecting with networks part of their daily habits tend to be the most successful in their firms.

John T. Hall: Using this research we developed and launched the activator experience for deal cloud.

John T. Hall: To help facilitate professionals successful behaviors and habits using AI powered signals.

John T. Hall: The solution helps each professional to be more conscious and consistent in these behaviors to drive more success in their business development activities.

John T. Hall: Finally, we shared that Intapp was acquiring Berlin-based Delphi, a cutting-edge organization that applies AI across public data, ensuring that firmographic data is collected, structured, and presented to professionals with critical provenance. In an era where more and more content is generated by AI, provenance is critical, and its significance can't be understated in our industry, which makes foundational promises of trust and accuracy each day.

John T. Hall: Finally, we shared that in tap was acquiring Berlin based Delphi.

John T. Hall: A cutting edge organization that applies AI across public data.

John T. Hall: Ensuring that firm a graphic data is collected structured and presented to professionals with critical provenance.

John T. Hall: In an era, where more and more content is AI generated.

John T. Hall: <unk> is critical.

John T. Hall: And its significance can't be understated in our industries, who make foundational promises of trust and accuracy each day.

John T. Hall: The acquisition of Delphi is a big step forward for Intapp's AI strategy. Delphi brings a brilliant team of data scientists, AI engineers, and researchers, who further augment our already rich AI talent. We believe Delphi's AI models and tech stack will help form the next generation of our data. Intelligence Applied Launch Date was a, and judging from the response, it was for our clients as well. Reinforcing our vertical AI positioning and offerings has led to a groundswell in activity, creating even more applied AI conversations with an already active client and spurring new meetings and demonstrations. The strong interest only reinforces how well positioned we are to take advantage of this moment through our applied AI strategy. Turning now to the client.

John T. Hall: The acquisition of Delphi is a big step forward for Intest AI strategy.

John T. Hall: Five rigs a brilliant team of data scientists AI engineers, and researchers who further augment our already rich AI talent.

John T. Hall: We believe Delphi is AI models and tech stack will help form the next generation of our data Foundation.

John T. Hall: Intelligent supplied launch day was a big day.

John T. Hall: Judging from the response it was for our clients as well.

John T. Hall: Reinforcing our vertical AI positioning and offerings has led to a groundswell in activity.

John T. Hall: <unk>, even more applied AI conversations in an already active client base and spring new meetings and demonstration requests.

John T. Hall: The strong interest only reinforces how well positioned we are to take advantage of advantage of this moment through our applied AI strategy.

John T. Hall: Okay.

John T. Hall: Now to client wins I'd like to share just a few examples of how we're continuing to grow our client base and expand our global reach.

John T. Hall: I'd like to share just a few examples of how we're continuing to grow our client base and expand our global reach. First, I'm pleased to share that we continue to grow our client base with new logos, including..., a leading European consulting firm who purchased Intapp Collaboration. And it's now live on thousands of devices across APAC, EMEA, and LASA, with the North American Go Live planned for this they selected Intapp Collaboration to help manage team sprawl, Automate Team Governance, and Streamline Asset Archive.

John T. Hall: They are now managing their proposals, projects, and exceptions on SharePoint and Teams within our solution. Additionally, in Q3, several firms became new clients. After having tried to use a horizontal legacy CRM to meet their industry-specific needs, which proved unsuccessful, Real Assets Investment Firm, who selected D.O.

John T. Hall: First I'm pleased to share that we continue to grow our client base with new logos.

John T. Hall: <unk>.

John T. Hall: A leading European consulting firm.

John T. Hall: Who purchased in tap collaboration.

John T. Hall: And is now live on thousands of seats.

John T. Hall: Across APAC EMEA and Latam.

John T. Hall: With the North American go live planned this year.

John T. Hall: They selected and tap collaboration to help manage teams sprawl.

John T. Hall: <unk> governance and streamlined asset archiving.

John T. Hall: They are now managing their proposals projects and exceptions on sharepoint and teams within our solution.

John T. Hall: Additionally, in Q3, several firms became new clients.

John T. Hall: After having tried to use a horizontal legacy CRM to meet their industry specific needs needs, which proved unsuccessful.

John T. Hall: A few examples of this.

John T. Hall: Real assets investment firm <unk> gate.

John T. Hall: Cloud based on our industry expertise and specialized focus and our ability to support their specific asset management workflow. Private Equity Firm, FlexiPoint Ford, who selected DealCloud to centralize firm, deal, and industry intelligence. DL Cloud won out over other solutions due to its market-leading brand and ease of use for the firm's profession. Generate Capital replaced their legacy CRM with DealCloud to manage the needs of their investor coverage, capital markets, and investment. DLSOT has the ease of use and out-of-the-box, purpose-built features that their previous system lacked.

John T. Hall: Who selected deal cloud based on our industry expertise and specialized focus and our ability to support their specific asset management workflows.

John T. Hall: Private equity firm flex the point forward.

John T. Hall: Who selected deal cloud the centralized firm deal in industry intelligence.

John T. Hall: <unk> cloud won out over other solutions due to its market, leading brand and ease of use for the firms professionals.

John T. Hall: And generate capital.

John T. Hall: Who replaced their legacy CRM.

John T. Hall: We feel cloud to manage the needs of their investor coverage capital markets and investments team.

John T. Hall: He also has the ease of use and out of the box purpose built features that their previous system lacked.

John T. Hall: Additionally, cross selling and upselling, in our existing platform, continue to drive net revenue retention, for example. Investment Banking Firm, Perella Weinberg, who were already live on our platform, have now added Tapped Wall. The firm will use walls to create necessary barriers around sensitive information.

John T. Hall: Additionally, cross selling and up selling success in our existing accounts continued to drive net revenue retention.

John T. Hall: For example.

John T. Hall: Investment banking firm Perella Weinberg.

John T. Hall: Who were already live on our conflict solution now added tap walls.

John T. Hall: The firm will use walls to create necessary barriers around sensitive information.

John T. Hall: Managed sharepoint permissions and security.

John T. Hall: And track user activity to maintain regulatory client and the firm's own risks and compliance requirements.

John T. Hall: That's the second example of cross selling and up selling.

John T. Hall: Manage SharePoint permissions and security, and Track Users, to maintain regulatory client and the firm's own risk and compliance. As a second example of cross-selling and up-selling. Law Firm, Warner, Norcross, and Judge, a long-time user of ours. Added Deal Cloud and our conflicts to support its firm-wide growth strategy. Tom Smanick, Warner's Director of Business Development and Marketing, shared that as part of the strategy. The firm encourages its attorneys to deepen their relationships with current clients while also nurturing their networks to source new business.

John T. Hall: Law firm Warner Norcross Jud.

John T. Hall: A long time user of our time solution.

John T. Hall: Added deal cloud.

John T. Hall: And our conflicts solution.

John T. Hall: To support its firm wide growth strategy.

John T. Hall: Tom semantic Order's director of business development and marketing.

Speaker Change: Sure that is part of the strategy. The FERC encouraged is that the attorneys to deepen their relationships with current clients. While also nurturing their networks to source new business.

John T. Hall: He believes that DealCloud will help attorneys facilitate growth by providing relationship management, intelligence, and outreach capabilities, all in one easy-to-use platform. UK-based law firm DAC Beachcroft added our collaboration solution to its Intapp stack, which already included Intapp time and deal, David Aird, the firm's IT director.

John T. Hall: He believes that deal cloud will help attorneys facilitate growth by providing relationship management intelligence and outreach capabilities all in one easy to use platform.

John T. Hall: And the third example, UK based law firm.

John T. Hall: C Beechcraft.

John T. Hall: Added our collaboration solution to its entire stack, which already included in tough time and deal cloud.

John T. Hall: David aired the firms I T director said Theyre looking to better leverage their investment in Microsoft 365 to align with how they believe their lawyers will use AI innovations like Microsoft co pilot.

John T. Hall: So they are looking to better leverage their investment in Microsoft 365 to align with how they believe their lawyers will use AI innovations like Microsoft Copilot. They believe the work Intapp is doing to deliver legal-specific modern work tools in partnership with Microsoft will help safely drive innovation across the firm. And, in a large final example, one of the world's largest accounting firms and an existing Intapp client selected our employee compliance solution, Automated Auditor-Independent Attestation. Previously, the firm had relied on a time-consuming, error-prone manual process that required data entry duplication, navigation of multiple systems, and poor data quality.

John T. Hall: They believe the work in tap is doing to deliver legal specific modern work tools in partnership with Microsoft will help safely drive innovation across the firm.

John T. Hall: And in a large final example, one of the world's largest accounting firms and existing <unk> client selected our employee compliance offering to automate the auditor independence attestation process.

John T. Hall: Previously the firm had relied on a time consuming error prone manual process that required data entry duplication navigation of multiple systems and poor data quality.

John T. Hall: In conclusion, we're proud of our strong third quarter performance, and we're pleased with the level of continued innovation and meaningful touch points that we achieved with clients, partners, and investors over the course. We are also pleased with the response and interest in our new intelligence-applied AI capability and optimistic about our continued growth opportunity. With our intelligence-applied strategy, we believe that we are well poised to be the vertical AI leader for the industries we serve. As always, I'd like to thank our clients, our partners, our investors, our board, and our global Intapp team for their teamwork and dedication. Thank you all very much. Okay, Dave, over to you.

John T. Hall: In conclusion, we're proud of our strong third quarter performance.

Dave: And we're pleased with the level of continued innovation and meaningful touch points that we achieved with clients partners and investors over the course of the quarter.

Dave: We are also pleased with the response and interest in our new intelligence applied AI capabilities.

Dave: And optimistic about our continued growth opportunities with them.

Dave: With our intelligent supply of strategy, we believe that we are well poised to be the vertical AI leader for the industries we serve.

Dave: As always I'd like to thank our clients our partners our investors our board and our global intact team for their teamwork and dedication.

Dave: Thank you all very much.

John T. Hall: Okay, Dave over to you.

David H. Morton: Thanks, John. And thanks, everyone, for joining us today. I also want to express my gratitude to all who participated in or listened to our inaugural investor day this past February. We are thrilled about the strong trajectory and future of this. To that end, I'm pleased to report our solid third quarter performance driven by strong cloud ARR growth and an expanding customer base and enhanced operational efficiency within the quarter. These achievements collectively position us to further extend our leadership as we embark on an exciting market opportunity in our fiscal Q4 2024 and beyond.

Dave: Thanks, John and thanks, everyone for joining us today I also want to express my gratitude to all who participated in or listened to our inaugural Investor day. This past February.

David H. Morton: We are thrilled about the strong trajectory and future of this company.

David H. Morton: To that end I am pleased to report our solid third quarter performance, driven by strong cloud <unk> growth and expanding customer base and enhanced operational efficiency within the quarter.

David H. Morton: These achievements collectively position us to further extend our leadership as we embark on an exciting market opportunity in our fiscal Q4 2024 and beyond.

David H. Morton: Stats and Support revenue was $80.8 million, up 22% year-over-year, reflecting sales to new clients and expansion of existing clients from both cross-selling and upselling sales. Subscription license revenue was $16.5 million, up 22% year-over-year, largely due to a couple large clients opting for multi-year on-premise renewals.

David H. Morton: SaaS and support revenue was $80 8 million up 22% year over year, reflecting sales to new clients and expansion of existing clients from both cross selling and up selling sales motion.

David H. Morton: Subscription license revenue was $16 5 million up 22% year over year, largely due to a couple of large clients opting for multiyear on premise renewals with that said, 91% of our clients have at least one cloud module, we will continue to temper, our multiyear renewals as we work with our clients to.

David H. Morton: With that said, 91% of our clients have at least one cloud module. We will continue to temper our multi-year renewals as we work with our clients to transition their on-prem to the cloud in the coming years. Professional Services revenue was $13.3 million, marking a 7% year-over-year increase.

David H. Morton: <unk> transitioned their on Prem to cloud in the coming year.

David H. Morton: Professional services revenue was $13 3 million, marking a 7% year over year increase this growth rate aligns with our deliberate strategic shift to deemphasize professional services.

David H. Morton: This growth rate aligns with our deliberate strategic shift to de-emphasize professional service. The ongoing success of our industry solutions further contributes to clients realizing quicker time to value through an expedited implementation process. Total revenue was $110.6 million, up 20% year over year, driven primarily by sales of our cloud solutions and growth of subscription license revenue. Our international business presents a growth opportunity to expand and invest in the utilization of our platform beyond the U.S. Revenue generated from our international operations remains robust, accounting for approximately 30% of total revenue for fiscal.

David H. Morton: The ongoing success of our industry solutions further contributes to clients realizing quicker time to value through an expedited implementation process.

David H. Morton: Total revenue was $110 6 million up 20% year over year, driven primarily by sales of our cloud solutions and growth of subscription license revenue.

David H. Morton: Our international business presents a growth opportunity to expand and invest in utilization of our platform beyond the U S revenue generated from our international operations remained robust accounting for approximately 30% of total revenue for fiscal Q3.

David H. Morton: Our partner CoSellMotion is gaining significant traction, driven by partner influence and sourcing and the adoption of some of our partner products. I'm pleased to announce that we have recently onboarded six new partners, further enriching our network. Additionally, we have strengthened our relationships with five existing partners, enhancing our ecosystem even further to 125 partners in total. Q3 non-GAAP gross margin was 75.1% as compared to 71.7% in the prior year period.

David H. Morton: Our partner co sell motion is gaining significant traction driven by our partner influence and sourcing and the adoption of some of our partner products I am pleased to announce that we've recently on boarded six new partners further enriching our network. Additionally, we have strengthened our relationships with five existing partners enhancing our <unk>.

David H. Morton: System, even further to 125 in total.

David H. Morton: Q3, non-GAAP gross margin was 75, 1% as compared to 71, 7% in the prior year period.

David H. Morton: Non-GAAP operating expenses were $71.9 million, an $8.8 million increase year-over-year as we continue to invest in product development and go-to-market to support our growth. Additionally, as we continue to focus on our operational efficiency, our non-GAF operating profit was $11.2 million, as compared to $2.9 million in the prior year period.

David H. Morton: non-GAAP operating expenses were $71 9 million and $8 8 million increase year over year as we continue to invest in product development and go to market to support our growth.

David H. Morton: As we continue to focus on our operational efficiency.

David H. Morton: non-GAAP operating profit was $11 2 million.

David H. Morton: As compared to $2 9 million in the prior year period.

David H. Morton: Non-GAAP diluted EPS was $0.14 in the third quarter of fiscal 2024 as compared to $0.03 in the prior year period. Free cash flow, which is defined as our cash flow from operations less capital expenditures, was 16.1 million for the third quarter, or 15% of total revenue. We exited the quarter with $187.4 million of cash in cash equivalents. Turning to our key metrics, cloud ARR was up 33% year over year, and total ARR was up 21% year over year. Total remaining performance obligations were $467.9 million, up 23% year-over-year.

David H. Morton: non-GAAP diluted EPS was <unk> 14 in the third quarter of fiscal 2024 as compared to three in the prior year period.

David H. Morton: Free cash flow, which is defined as our cash flow from operations less capital expenditures was $16 1 million for the third quarter or 15% of total revenue.

David H. Morton: We exited the quarter with $187 4 million of cash and cash equivalents.

David H. Morton: Turning to our key metrics.

David H. Morton: <unk> was up 33% year over year, and total <unk> was up 21% year over year.

David H. Morton: Total remaining performance obligations were $467 9 million up 23% year over year.

David H. Morton: Overall, we remain committed to executing our land and expand model, concluding the quarter with over 2450 clients, and among those, 673 had annual recurring revenue of at least 100k, up from 572 in the previous quarter. Our net revenue retention rate underscores our ability to retain and steadily expand business with our existing customers. This key metric was 115%, which continues to track within a range of 113% to 117%.

David H. Morton: Overall, we remain committed to executing our land and expand model concluding the quarter with over 2450 clients and among those 673 had annual recurring revenue of at least 100 K up from 572 in the previous year.

David H. Morton: Our net revenue retention rate underscores our ability to retain and steadily expand business with our existing customers is.

David H. Morton: This key metric was 115%, which continues to track within a range of 113% to 117%.

David H. Morton: Our cloud <unk> in Q3, FY 'twenty four was 120%.

David H. Morton: Our cloud NRR in Q3 FY24 was 120%. Now, turning to our outlook. For the fourth quarter of fiscal 24, we expect SAS and support revenue of between $83.5 and $84.5 million and total revenue in the range of $111 to $112 million, non-GAAP operating profit in the range of $10.5 to $11.5 million, and non-GAF EPS results of $0.11 to $0.13 using a diluted share count weighted for the quarter of approximately 81 million common shares.

Speaker Change: Now turning to our outlook.

David H. Morton: For the fourth quarter of fiscal 'twenty, four we expect SaaS and support revenue of between 83, five and $84 5 million in total revenue in the range of $111 million to $112 million.

David H. Morton: non-GAAP operating profit in the range of 10, five to 11 5 million and.

David H. Morton: And non-GAAP EPS results of 11 to 13.

David H. Morton: Using a diluted share count weighted for the quarter of approximately 81 million common shares outstanding.

David H. Morton: For the full year fiscal 24, we expect staff and support revenue of between $314.5 and $315.5 million and increased total revenue in the range of $427 to $428 million. We also expect non-GAAP operating profit to be in the range of $35.5 to $36.5 million, and Non-GAAP EPS in the range of $0.42 to $0.44, using a diluted share count weighted for fiscal year 24 of approximately 81 million common shares.

David H. Morton: For the full year fiscal 'twenty, four we expect SaaS and support revenue between $314, five and $315 5 million.

David H. Morton: And increasing our total revenue in the range of $427 million to $428 million.

David H. Morton: We also expect non-GAAP operating profit to be in the range of $35 five to $36 5 million.

David H. Morton: Okay.

David H. Morton: And non-GAAP EPS in the range of 42 to 44.

David H. Morton: On a diluted share count weighted for fiscal year 'twenty four of approximately 81 million common shares outstanding.

Operator: Thank you, and I will now turn the call back to the operator. Thank you. At this time, we will conduct the question and answer session. As a reminder, to ask a question, you will need to press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again.

Speaker Change: Thank you and I will now turn the call back to the operator.

Operator: Please stand by while we compile the Q&A roster. The first question comes from Koji Ikeda with Bank of America. Your line is open. Hey, this is Natalie Howe. I'm for Koji.

Operator: Thank you at this time, we will conduct a question and answer session. As a reminder to ask a question you will need to press star one one on your telephone.

Operator: <unk> for your name to be announced to withdraw your question. Please press star one again, please standby, while we compile the Q&A roster.

Natalie Elena Howe: The first question comes from Koji Ikeda with Bank of America. Your line is open.

Natalie Elena Howe: Um, congrats on the quarter. I wanted to ask about your plans for margin expansion, because you guys have really done a nice job there, especially in sales and marketing. Going forward, how will you balance investing in the platform and AI with margin? Thanks, Natalie.

Natalie Elena Howe: Hey, this is Natalie how on for <unk>. Congrats on the quarter I wanted to ask about your levers for margin expansion expansion. Because you guys have really done a nice job there, especially in sales and marketing.

Natalie Elena Howe: Going forward, how will you balance investing in the platform and AI with margin expansion.

Speaker Change: Thanks Natalie.

John T. Hall: We have a strong opportunity to take advantage of this moment in generative AI and AI more generally. And I think that this launch that the team executed in February was an excellent moment to communicate to the market how far we had come in bringing applied AI throughout the platform. You really saw the culmination of quarters and quarters of work there.

Natalie Elena Howe: We have a strong opportunity.

John T. Hall: To take advantage of this moment in.

John T. Hall: Generative AI and AI more generally.

John T. Hall: And I think that this launch that the team.

John T. Hall: Executed in February.

John T. Hall: Wasn't excellent moment to communicate to the market how far we had come in bringing applied AI throughout the platform you really saw the culmination of quarters and quarters of work there.

John T. Hall: And I'm, so proud and thankful.

John T. Hall: The product team and the launch team for helping us communicate so clearly.

John T. Hall: And I'm so proud and thankful to the product team and the launch team for helping us communicate so clearly what we can do for this special market with applied AI. So you're going to see that as the beginning of an ongoing roadmap under this intelligence-based strategy to continue to bring out more and more applied AI and generative AI capabilities throughout all of the products. In fact, the Intapp Assist, Product Brand.

John T. Hall: What we can do for this special market with.

John T. Hall: With applied AI, so youre going to see that as the beginning of.

John T. Hall: Of an ongoing roadmap.

John T. Hall: Under this intelligent supply strategy to continue to bring out more and more applied AI and degenerative AI capabilities throughout all of the products in fact, the in tap assist products brand, we talked about in tap assist for deal cloud.

John T. Hall: We talked about IntappAssist for DL Cloud, but we also talked about the fact that In the future, you will see IntappAssist for additional components of the platform. So we're committed to a roadmap of increasing capability using this. Applied AI, moment, and technology throughout the platform. That being said, I do think we're getting good leverage, Dave, you can talk a little bit more about this as we grow for a whole variety of reasons. And we shared yesterday that we're going to continue to demonstrate some of that as the model scales. No, you're absolutely correct, John.

John T. Hall: But we also talked about the fact that.

John T. Hall: In the future you will see into emphasis for additional components.

Dave: The platform so we're committed to.

Dave: Two a roadmap of increasing capability.

Dave: Using this applied AI.

John T. Hall: Moment in technology throughout the platform that being said I do think we're getting good leverage David you can talk a little bit more about this as we grow.

Dave: For a whole variety of reasons and.

John T. Hall: We shared at Investor day that we're going to continue to demonstrate some of that as the model scales.

David H. Morton: We've been working really diligently within the respective teams, just enhancing our own operational efficiency as we continue to scale to the billion-dollar attributes that we discussed on February 22nd. So you can view that across all of our defined types across the P&L, whether it be product and engineering, sales and marketing, as well as G&A.

Dave: No Youre absolutely correct, John we've been working really.

David H. Morton: Diligently within.

David H. Morton: With respect to teens.

David H. Morton: Enhancing our own operational efficiency as we continue to scale.

David H. Morton: Of the $1 billion attributes that we discussed on February 22nd.

David H. Morton: So you can view that across all of our T cell types across the P&L, whether it'd be product in engineering sales and marketing as well as G&A.

David H. Morton: So theres more to come there as we manage those respective leaders and processes.

Natalie Elena Howe: So there's more to come there as we manage those respective leaders and processes. With respect to our own product and offerings, we've been working really with the respective teams on our pricing and packaging and what have you to make sure that we can monetize these respective feature sets that we brought forward here in this current quarter as well as into FY25. Great, thank you, that's all for me.

David H. Morton: With respect to.

Natalie Elena Howe: Our own product and offerings, we have been working really.

Natalie Elena Howe: With respect to teams on our pricing and packaging and what have you to make sure that we can monetize things are Spector respect that feature sets that we brought forward here in this.

Natalie Elena Howe: The current quarter as well as into FY 'twenty.

Natalie Elena Howe: Yeah.

Speaker Change: Great. Thank you that's all from me.

Speaker Change: One moment for the next question.

Natalie Elena Howe: Okay.

Natalie Elena Howe: Yes.

Natalie Elena Howe: Yeah.

Operator: One moment for the next question. The next question comes from Kevin McVeigh at UBS. Your line is open. Great. Thank you so much.

Natalie Elena Howe: The next question comes from Kevin Mcveigh at UBS. Your line is open.

Kevin Damien McVeigh: Great. Thank you so much Tim let me add my congratulations as well.

Kevin Damien McVeigh: And let me add my congratulations as well. Hey, I don't know who this should be for, but you know, it seems like the Microsoft alliance and the KPM alliances continue to grow, which we really think is just a terrific opportunity. Steve, is there any way to maybe frame how much revenue comes from them today, and are you starting to see some of the implementation work go through KPMG, and is that helping drive some of the leverage you saw in the quarter? Because obviously there was a nice outcome on the leverage as well as revenue. I wanted to start there if we could.

Kevin Damien McVeigh: Hey, I don't know where they should be four but.

Kevin Damien McVeigh: It seems like the Microsoft Alliance and the KPN KPN alliances continue to scale.

Kevin Damien McVeigh: We really think it is just a terrific opportunity.

Kevin Damien McVeigh: Steve is there any way to maybe frame how much revenue comes from them today and are you starting to see some of the implementation work go through key PMG and is that helping drive some of the leverage you saw in the quarter, because obviously there was that it.

Kevin Damien McVeigh: A nice outcome on our leverages as well as revenue.

Kevin Damien McVeigh: Chart, there if we could.

Kevin Damien McVeigh: Yeah, for sure. You know, we haven't talked about the absolute opportunity or the pipe that they brought, but just know that it is starting to become a more enhanced motion for us. But we're still in the very early innings.

Speaker Change: Yes sure.

Kevin Damien McVeigh: We haven't talked about the absolute opportunity or the pipe that they brought.

Kevin Damien McVeigh: A more enhanced motion for us, but we're still very early innings.

David H. Morton: But we like these respective partnerships and more, and we'll continue to use this as an accelerator as we discuss going forward. So, Okay, great. And then when you think about...

David H. Morton: But we like these respective partnerships and more and we will continue to use this as an accelerator as we have discussed.

David H. Morton: Going forward so.

Speaker Change: Okay, Great and then when you think about.

David H. Morton: Yeah, I guess go into those on Prem renewals.

Kevin Damien McVeigh: I guess going to those on-prem renewals, how should we think about the timing on that, you know, given how much, you know, emphasis there's been from a Gen-AI perspective, how are you balancing those on-prem with the Gen-AI opportunity more broadly? Yeah, it's a... It's a nice balance. In fact, if you want access to newer technology, you need to be in the cloud. And so it's a It's a push and pull motion.

Kevin Damien McVeigh: Should we think about the timing on that just given how much emphasis are you stand from a gen AI perspective, how you're balancing those on prem with the Gen II opportunity more broadly.

Kevin Damien McVeigh: Yes.

Kevin Damien McVeigh: It's a nice balance in fact, if you want access to the.

Kevin Damien McVeigh: You know, when we come back around and FQ4 and provide FY25 annual guidance, annual guidance will provide some more insight into that and what it means to that specific line item. But just know that behind the scenes, operationally, the team is working very hard with our respective clients and supporting their narrative or trying to accelerate that motion to go more and more into the cloud. Super helpful, and again, congratulations.

Kevin Damien McVeigh: The newer technology, you need to be in the cloud and so it's a push pull motion.

Kevin Damien McVeigh: When we come back around in FQ4.

Kevin Damien McVeigh: And provide FY 'twenty fives.

Kevin Damien McVeigh: Annual guidance, we'll provide some more insight into that at what it what it means so that specific line item, but just know that behind the scenes operationally. The team is working very hard with our respective clients.

Kevin Damien McVeigh: And supporting their narrative or trying to accelerate that motion to go more and more into the cloud.

Kevin Damien McVeigh: Super helpful and again congratulations.

David H. Morton: Please stand by for the next question. And the next question comes from Steve Enders with Citi. You are live.

Speaker Change: Please standby for the next question.

David H. Morton: And the next question comes from Steve Enders with city you are alive.

Operator: Okay, great. Thanks for taking the questions here. I guess maybe just to start, I guess it'd be good to hear what you're kind of hearing out there and kind of the macro environment and the deal environment and I guess maybe how it's changed versus some of the maybe weakness you're seeing in financial services last quarter. And then I guess as well, like, I think the SAS and support line, you know, maybe it's kind of more in line with what we typically have seen the execution there. So is there anything to call out about that? They may have kind of impacted that line in the quarter here.

Steven Lester Enders: Okay, great. Thanks.

Steven Lester Enders: For taking my questions here.

Operator: I guess, maybe just to start I guess it would be good to hear what you're kind of hearing out there in kind of the macro environment and the deal environment, then I guess, maybe how it's changed versus some of the maybe maybe the weakness you're seeing in financial services lab.

Operator: Last quarter and.

Operator: And then I guess as well.

Operator: I think the SaaS and support line maintenance kind of more in line with what we typically are typically seen the explanation aerosol business, let me hand, the call out too.

Operator: They may have kind of impacted that line in the quarter here.

Steven Lester Enders: Yeah, thanks, Steve. So, You know, we look at the market opportunity, as a meaningful, underserved industry that traditionally did not benefit from the digital transformation movement that benefited every other industry because these firms are organized in a special way as partnerships and because the type of work that they do is not selling widgets through a sales force, but they are Developing and, Working with clients or investment opportunities deals on the basis of their expertise and so the, Significant for us to grow both the new client acquisition and in client expansion.

Speaker Change: Yeah, Thanks, Steve So.

Steven Lester Enders: We look at the market opportunity.

Steven Lester Enders: I mean.

Steven Lester Enders: Meaningful underserved industry that traditionally did not benefit from.

Steven Lester Enders: The digital transformation.

Steven Lester Enders: Movement that benefited every other industry because these firms are organized in a special way as partnerships and because the type of work that they do is not selling widgets through a salesforce, but they are.

Steven Lester Enders: Developing in.

Steven Lester Enders: Working with clients or investment opportunities deals on the basis of their expertise and so the.

Steven Lester Enders: Space here is pretty.

Steven Lester Enders: Significant for us to grow both the new client acquisition and in client expansion.

Steven Lester Enders: And one of the things we emphasized yesterday is how significant Sam and Tam really are for this underserved space that I think people have kind of overlooked. We've got excellent examples now, and we talked about some of them in the script here, of firms that are meaningfully expanding their footprint across our platform. And we think that's going to be a very strong growth driver for us as we grow the business.

Steven Lester Enders: And one of the things we emphasized on Investor day is how significant the salmon Tim really are for this underserved space that I think people have kind of overlooked we've got excellent examples now and we've talked about some of them in the script here.

Steven Lester Enders: Firms that are meaningfully expanding their footprint.

Steven Lester Enders: Across our platform and we think thats going to be a very strong growth driver for us as we grow the business.

Steven Lester Enders: In terms of the macro, I think we've shared with you all that there are areas of our market that have survived very well through some very turbulent times, more turbulent than this. And we've actually successfully bootstrapped the business all the way through the 2008 recession and other periods because law firms always do well. Accounting firms always do well.

Steven Lester Enders: In terms of the macro I think we've shared with you all that there are.

Steven Lester Enders: Areas of our market that have survived very well through some very turbulent times more turbulent for this and we've actually successfully bootstrap the business all the way for you, but 2008 recession other periods because.

John T. Hall: More and more of the professional services firms that we sell to have a very stable business. We said, if there's any place that there is some potential variability for us, it's probably investment banking. We talked about that. But you know, a lot of the firms that we talked about on the last call did come through and buy for us. We actually talked about one of them here in the script, and some of them we're still working on.

Steven Lester Enders: The law firms always do well the accounting firms always do well more and more of the professional services firms that we sell to have a very stable business. We said if there's any place that there is some potential variability for us it's probably investment banking, we talked about that but you know a lot of the firms that we talked about on the last call did come through.

John T. Hall: And by for US, we actually talks about one of them here in the script and some of them. We're still working on so it's a pretty good set up for us as far as growth goes.

John T. Hall: So it's a pretty good setup for us, as far as growth goes. Looking forward, we were cautious, as always, and we try to be prudent. But I think we've got a very good story to tell, and this intelligence applied launch event really put us into a conversation with so many of these firms that are trying to figure out how do they take advantage of AI in their specialized industry that's highly regulated? How do they do it?

John T. Hall: And I think we brought a whole recipe for them on how to get their professionals empowered with applied AI in a way that actually works for their marketplace. And we're going to continue to roll that out. So, we're encouraged. Okay, great. That's the total context there.

John T. Hall: Looking forward we are.

John T. Hall: Cautious as always and we try to be prudent, but I think we've got a very good story to tell in this intelligent supplied launch of that really put us into a conversation with so many of these firms that are trying to figure out how do they take advantage of AI in their specialized industry that is highly regulate.

John T. Hall: How do they do it and I think we brought a whole recipe for them to how to get their professionals empowered with applied AI in a way that actually works for their marketplace and we can continue to roll that out so.

John T. Hall: We're encouraged.

John T. Hall: Yeah.

Speaker Change: Okay great.

Speaker Change: That's helpful context there.

John T. Hall: And then, I guess, coming off of that event, where have you kind of seen the most, you know? Are there any particular products or solutions that are seeing kind of the most interest coming off of that customer event? And I think you mentioned you're beginning to see a groundswell of interest and, you know, an increase in conversation. So, I guess, any way to kind of frame how you're kind of viewing the timeline or potential impact of those conversations changing?

John T. Hall: And then I guess coming off or coming off of that event.

John T. Hall: Have you seen the most.

John T. Hall: Are there any particular products or solutions that are seeing kind of the most interest coming off of.

John T. Hall: That customer then.

John T. Hall: I think you mentioned youre beginning to see a groundswell of.

John T. Hall: Interest and an increase in conversations.

John T. Hall: Any way to kind of frame.

John T. Hall: You're kind of viewing the timeline or potential impact of those conversations converting.

John T. Hall: Yeah, so one of the things that has really helped us, and I think this is not a surprise, but the whole world has been talking about generative AI for a year or more, and everyone is super excited about it because they've gotten to try the consumer experiences. What we're really finding is that firms are looking for suppliers like us with a real knowledge of the workflows and the data and the users in these industries and in our industry solution strategy and our blueprints that we bring out for how do they practically take advantage of the generative AI opportunity in a trusted way that's consistent with their compliance and regulatory obligations.

John T. Hall: Yes, so one of the things that has really helped us and I think this is not a surprise, but the whole world has been talking about generative AI for a year or more and everyone is super.

John T. Hall: Excited about it because they've gotten to try the consumer experiences what.

John T. Hall: What we're really finding is that the firms are looking to suppliers like us with a real knowledge of the workflows and the data and the users in these industries and in our industry solution strategy and our blueprints that we bring out for how do they practically take advantage.

John T. Hall: Of the generally the AI opportunity.

John T. Hall: In a trusted way that's consistent with their compliance and regulatory obligations. This is kind of the trick here for this specialized industry is how do you bring a practical set of answers to people, where they can get real value out of the potential of this.

John T. Hall: This is kind of the trick here for this specialized industry: how do you bring a practical set of answers to people where they can get real value out of the potential of this in a trusted way? And so we've seen good response, very exciting conversations across the board, whether it's IntappAssist for DeoCloud, our IntappDataSolution, which provides a foundation for a lot of the applied AI that we're rolling out, the IntappWalls for CopilotSolution, and the ActivatorExperience for DeoCloud, which is helping the firms with business development. These are all areas that we've had a very strong response.

John T. Hall: On a.

John T. Hall: Trusted way and.

John T. Hall: So we've seen good response very exciting conversations across the board whether it's in tap assist for deal cloud our data solution, which provides the foundation for a lot of the applied AI that we're rolling out the <unk> wells for co pilot solution. The activator experience video cloud, which is helping the firms with business development.

John T. Hall: These are all areas that we've had very strong response and in fact, we're having multiple conversations with with the same firm across different aspects of this and I think as we continue to roll out more of the applied AI capabilities across different aspects of the platform, you'll see it become a bigger and bigger.

John T. Hall: And in fact, we're having multiple conversations with the same firm across different aspects of the platform. And I think as we continue to roll out more of the applied AI capabilities across different aspects of the platform, you'll see it become a bigger and bigger central component of what these firms are trying to do. So, very exciting times for us to be bringing all this out. It was one of the biggest quarters we ever had from a release standpoint. I just can't say enough about what the team did to get these products into the marketplace. It was awesome.

John T. Hall: A component of what these firms are trying to do.

John T. Hall: So very exciting times for us to be bringing all this out it.

John T. Hall: It was one of the biggest quarters, we ever had from a release standpoint, I just can't say enough about what the team did to get these products into the marketplace. It was awesome.

Steven Lester Enders: No, that's great to hear. So yeah, I appreciate you taking the question. Please stand by for the next question. The next question comes from Parker Lane at Stifle. Your line is open.

Speaker Change: No that's great to hear so I appreciate you taking.

Parker Lane: Taking the question.

Steven Lester Enders: Yeah.

Parker Lane: Please standby for the next question.

Steven Lester Enders: Okay.

Steven Lester Enders: The next question comes from Parker Lane of Stifel. Your line is open.

Operator: Yeah, I guess thanks for taking the question here. Looking at the 100k ARR customer ads compared to last year, it looks like you're tracking slightly ahead. John, is that reflective of you guys landing larger with, you know, either bigger clients or more product initially? Or is the majority of that continuing to come from, you know, long-standing customers who are just naturally expanding? Well, it's a little of both.

Parker Lane: Yeah, Hi, guys. Thanks for taking the question here looking at the 100 K.

Operator: Customer adds.

Operator: Compared to last year, it looks like Youre tracking slightly ahead, John is that reflective of you guys landing larger.

Operator: Either bigger clients or more product initially or is the majority of that continue to come from long standing customers, who are just naturally expanding with you.

Parker Lane: We are landing larger accounts. It's been a conscious strategy of ours to move into some of the larger enterprise class firms. And when you land even with one component of the platform there, they are bigger deals. They take a little bit longer to land, and they take a little bit longer to get up and running, but they're bigger deals.

Operator: Well, it's a little of both we are landing larger accounts has been a conscious strategy of ours to move into some of the larger enterprise class firms and when you land even with one component of the platform. There. They are bigger deals they take a little bit longer to land and they take a little bit longer to get up and running.

Parker Lane: But they are bigger deals, but that number is also influenced by the fact that we have a lot of cross sell and up sell that happened. So we can land it under 100 K.

Parker Lane: And.

John T. Hall: But that number is also influenced by the fact that we have a lot of cross-sell and upsell that happens. So we can land at under 100k, expand within the account, and it'll move over that number, and you'll see that change too, so you get a little bit of both in that. Okay. And then Dave, one for you real quick.

Parker Lane: Expand within the account and it'll move over that number and you'll see that change too. So you get a little bit of both in that increase.

David H. Morton: Professional services, I know you guys are sort of de-emphasizing the component that you do of that. What's the ideal mix in your mind going forward over the sort of mid to long term of professional services revenue as a percentage of this total business? Thanks. Yeah, I would say over the longer term it should be in the range of 10% or less.

John T. Hall: Understood and then Dave one for you real quick.

David H. Morton: Professional services I know you guys are sort of deemphasizing the component that you do have that what's the ideal mix in your mind going forward over the sort of mid to long term of professional services revenue as a percentage of the total business. Thanks.

Parker Lane: As we navigate that, you know, between here and the future, and obviously, facilitating our clients first, we'll, we'll continue to get in that zone. But that's kind of where we're at.

David H. Morton: Yeah, I would say over the longer term it should be in the range, 10% or less.

Parker Lane: As we navigate that between here in the future and obviously facilitating our clients first.

Parker Lane: Well, we'll continue to get in that zone, but thats kind of warmer headed.

Speaker Change: Understood I appreciate the feedback thanks guys.

Operator: Thanks, guys. Please stand by for the next question. The next question comes from Saket Kalia of Barclays. Your line is open.

Speaker Change: Please standby for the next question.

Operator: Okay.

Saket Kalia: The next question comes from socket Kalia Barclays. Your line is open.

Saket Kalia: Hi guys, thanks for taking my questions here. And apologies in advance. I joined late.

Saket Kalia: Hi, guys. Thanks for taking my questions here and I.

Saket Kalia: Apologize in advance I joined late so apologies. If these were these were asked.

Saket Kalia: Yeah.

John T. Hall: So apologies if these were the questions that were asked. John, maybe for you, great to see the net new ARR on cloud kind of bounce back compared to what we saw in Q2. I'm curious, as we sort of had 90 days to look back on Q2, I mean, I think we talked about maybe just the investment bank vertical being a little softer. Anything that you've kind of learned post-mortem on what maybe drove that, what I'll call a dip in sort of net new ARR and then sort of the commensurate recovery that we've seen here. Thanks, Saket.

Saket Kalia: John maybe maybe for you.

Speaker Change: Great to see.

John T. Hall: New IRR on cloud kind of kind of bounce back compared to what we saw in Q2 I am curious as we sort of had 90 days to to look back on Q2, I mean, I think we talked about maybe just the investment bank vertical being a little a little softer.

John T. Hall: You said that you've kind of learned postmortem on what maybe drove that what I'll call, a dip and sort of net new <unk> and then sort of the commensurate recovery that we've seen here in Q3.

John T. Hall: Well, you know, we talked about the fact that at the end of the year, people were doing some budget management and looking carefully, and what we saw is that some of the deals that we pushed came in. So we're very excited to see that. It was a good sign that people were committed to making this transition. And for large deals, particularly at the earlier point, as those become a bigger part of our story, they have a little bit more variability in their cycle, but when they come in, they can really help. So we're excited about the progress that we're making there, and I think it's a good sign, more generally. That's great.

John T. Hall: Thanks.

John: We did talk about the fact that within a year people were doing some budget management and looking carefully and what we saw is that.

John T. Hall: Some of the deals that push came in.

John T. Hall: So we're very excited to see that it was a good sign that people are committed to making this transition and for large deals, particularly to the earlier point as those become a bigger part of our story they have a little bit more variability in their cycle, but when they come in they can really helps so we're excited about the progress that we're making there.

John T. Hall: I think it's a good sign more generally.

David H. Morton: That's great to hear. Dave, maybe for my follow-up question for you, I know that we don't guide to ARR or net new ARR, but are there any sort of broad brushes that you'd give us here in Q4, whether it's, [inaudible] Yeah, thanks, Saket. We're still looking at how we're monetizing a lot of our new product offerings, as John had narrated. I think it was probably one of our biggest releases ever in the history of Intapp.

Speaker Change: That's great that's great to hear Dave maybe for my follow up for you.

Speaker Change: I know that we don't we don't guide to EMR or net new IRR, but.

Speaker Change: Is there are there any sort of broad brushes that you would give us here in Q4, whether it's seasonality or product launches or any any way that you kind of have us think about sort of net new <unk> here in the June quarter, just as we sort of fine tune our models.

Speaker Change: Yes. Thanks.

David H. Morton: We're.

Dave: Still looking at how we're monetizing a lot of our new product offerings as Jon It narrated on I think it was probably one of our biggest releases.

David H. Morton: And so there's a lot of opportunity there for us as we think about not only FQ4 but also as we enter FOA 25 and really galvanize the opportunity ahead of us, as well as the market and client needs. And so there's a lot of put and takes on that, but I think where you're seeing us come off is um, more of a succession and really embarking or taking kind of what we learned and see in that market and continuing to build ahead into this next uh 90 days, and so you know again we're going to continue to be very prudent, but then also you know drive towards the plan as we put forward here today. Thanks very much, guys. One moment for the next question. The next question comes from Alex Sklar with Raymond James. Your line is open.

David H. Morton: Ever.

Dave: And the history of events happened. So there's a lot of opportunity there for us as we think about not only in Q4, but also as we enter FY 'twenty five and really galvanize.

Alexander James Sklar: Galvanize the opportunity ahead of us as well as a market and client need and so.

Alexander James Sklar: There was a lot of puts and takes to that but I think.

Alexander James Sklar: Where youre seeing us come off is.

Alexander James Sklar: More of a succession.

Alexander James Sklar: And really embarking are taking kind of what we learned and seeing that market and continue to build ahead.

Alexander James Sklar: And to this end to this next 90 days and so.

Alexander James Sklar: Again, we're going to continue to be very prudent.

Alexander James Sklar: That also drive towards the plan as we put forward here today.

Alexander James Sklar: Makes sense, thanks, very much guys.

Alexander James Sklar: One moment for the next question.

David H. Morton: The next question comes from Alex Sklar with Raymond James Your line is open.

Saket Kalia: Great, thank you. John, first one for you, just on the TDI acquisition, bolstering the collaboration product suite. You had a nice, large customer win with collaboration this quarter. Can you tell us what this acquisition does in terms of maybe driving more penetration of your collaboration product broadly? Is that kind of the thought here?

Alexander James Sklar: Great. Thank you John first one for you just on the <unk> acquisition.

Saket Kalia: Bolstering the collaboration product suite, yet you had a nice large customer win with collaboration this quarter can you just tell us what this acquisition does in terms of maybe driving more penetration of your collaboration product broadly is that kind of the thought here and then Dave any color on the financial contribution in the fourth quarter kind of annual revenue from <unk>.

Saket Kalia: From Delphi or TDI going forward. Thanks.

Operator: And then Dave, any color on the financial contribution in the fourth quarter, and the kind of annual revenue from Delphi or TDI going forward? Thanks. Thanks, fellas.

John: Thanks, Alex So we're very excited about the team from TDI joining us.

Alexander James Sklar: So we're very excited about the team from TDI joining us, with particular expertise in collaboration solutions for several of our end markets, including legal. They have been working with us in a partnership for a very long time, and their technology was actually developed to work with ours. So this is a great example of using M&A selectively to really strategically expand some of the capabilities that our platform can bring to market in specific segments.

Alexander James Sklar: They have particular expertise.

Alexander James Sklar: In collaboration solutions for several of our end markets, including vehicle.

Alexander James Sklar: They have been working with us in a partnership for a very long time.

Alexander James Sklar: And their technology was actually developed to work with ours. So this is a great example.

Alexander James Sklar: Of using M&A selectively to really strategically expand quickly some of the capabilities that our platform can bring to market in specific segments.

Alexander James Sklar: So that's absolutely the goal that matches our Microsoft partnership as well. This is very much about helping our clients to get the most leverage out of their Microsoft 365 investment, which has just taken over the market, and to bring the features and capabilities that you need, as a professional services firm, or a law firm, or an investment bank, or a private capital firm, to really start to manage your knowledge and your content successfully in Microsoft 365 in a compliant and organized way. And so it's a, it's a very close, acquisition that should really help us as we continue to grow that component of our strategy. Okay, great. And then I'll guess one for you, Dave.

Alexander James Sklar: So that's absolutely the.

Alexander James Sklar: Goal that matches, our Microsoft partnership as well this is very much about helping our clients to get the most leverage out there Microsoft 365 investment, which has just taken over the market and to bring the features and capabilities that you need.

Speaker Change: As a professional services firm.

Dave: Or a law firm or <unk>.

Dave: Investment bank or a private capital firm.

Alexander James Sklar: To really start to manage your knowledge and your content successfully in Microsoft 365 in a compliant and organized way.

Dave: And so it's a it's a very close.

Alexander James Sklar:

Dave: Acquisition that should really help us as we continue to grow that that component of our strategy.

Alexander James Sklar: Okay.

Dave: Great and then.

Alexander James Sklar: I guess one for you Dave.

John T. Hall: Just, it's been over, I think it's been just over a year now since you kind of updated that NRR range to 113 to 117. And as you look kind of over the next 12 months, or whatever timeframe you want to think about, based on what's in the pipeline and others, is that still the right range to think about for NRR? Are there any other puts and takes to be aware of? Thank you. Sorry, I didn't unmute the button.

Speaker Change: Just it's been over I think it's just been just over a year now since you kind of updated that MLR range. So the $1 13 to $1 17, and as you look kind of over the next 12 months.

Speaker Change: Or whatever.

John T. Hall: Timeframe you want to think about based on what's on the pipeline is that still the right range to think about for <unk> or are there any other puts and takes to be aware of thanks.

John T. Hall: Alright.

Speaker Change: On mute button, but.

David H. Morton: You know, as we think about those puts and takes from 113 to 117, you know, that's very much operationalized within the company. I think the map that we're quite candidly more focused on is the cloud NRR and continuing to drive that motion because that's the real behavior set. And so, you know, as we'll move a lot of our on-prem to our, yeah, our on-prem to the cloud, that gives us an additional opportunity there as well as to facilitate broader portfolio conversations with our existing clients.

John T. Hall: Good.

John T. Hall: As we think about the puts and takes.

David H. Morton: 113 to 117.

David H. Morton: That's very much operationalized within the company I think the math that warm.

David H. Morton: Quite candidly more focused on is the cloud NR and continue to drive that motion because thats the real behavior set and so as we all know.

David H. Morton: Move a lot of our on Prem to our our our on Prem to cloud that gives us an additional opportunity there as well as.

David H. Morton: Facilitate broader portfolio of conversations with our existing clients and so.

David H. Morton: And so You know, I still think there's an opportunity across all of our product suites that we offer to all of our clients, and nobody's really fully saturated. And so, we just view that kind of as the guiding post here for us as we transition more and more to the cloud. Okay, great color.

David H. Morton: I still think there's opportunity across all of our product suites that we offer to all of our clients and nobody's really fully saturated and so.

David H. Morton: We just view that kind of more of a.

David H. Morton: As as the guiding post here for us as we transition more and more to the cloud.

Alexander James Sklar: Thank you both. Congratulations on the quarter. Please stand by for the next question. And the next question is from Terry Tillman with Truist Securities. Your line is open.

Speaker Change: Okay, great color. Thank you both congrats on the quarter.

Terrell Frederick Tillman: Please standby for the next question.

Alexander James Sklar: And the next question is from Terry Tillman with tourists Securities. Your line is open.

Operator: Hi, this is Dominique Manansala on behalf of Terry. Thanks for taking the question. So considering firms previously, so considering first previously voiced concerns with using Genii, especially those within highly regulated industries, I'm just wondering if you've heard any feedback on Waltz or Copilot calming these fears? And could you double-click on how customers have been using this product thus far and how it's affected that tone or that hesitation? Thanks, Dominique. Yes, we're very excited about this for two reasons. One

Speaker Change: Hi, This is Dominique Milan Shah on for Terry Thanks for taking the question.

Operator: So considering firms previously so.

Operator: I think first previously voiced concerns with using journey, especially those are in highly regulated industries I'm. Just wondering if you've heard any feedback on what's it called pilot, commonly spheres and could you just double click on how customers have been using this product, thus far and how it's affected that telenor that hesitation.

Speaker Change: Thanks, Dominic yes were very <unk>.

Speaker Change: Excited about this because.

Speaker Change: Two reasons one.

Unknown Executive: The issue of generative AI has everyone interested and excited. People really do believe, in these end markets, that the generative AI era is going to transform the way that the profession does its work. People aren't really debating whether that's going to happen.

Operator: The issue of <unk>.

Unknown Executive: Generally the AI has everyone interested and excited people really do believe in these end markets that the generative AI era is going to transform the way that the professionals.

Unknown Executive: Execute their work.

Unknown Executive: Arent really debating whether thats going to happen the big discussion that's how.

John T. Hall: The big discussion is how and in what areas. And to your point, what kind of governance and information security and compliance capabilities are the new systems going to need to have in order to enable people to successfully use them? And so you're hearing a lot of themes that are very specific and steeped in our history of compliance information governance specifically for these professional firms. For example, the issue of provenance, which you heard me talk about in the Delphi.

John T. Hall: And in what areas and to your point, what kind of governance.

John T. Hall: And information security and.

John T. Hall: Compliance capabilities are the new system is going to need to have in order to enable people to successfully use this and so youre hearing a lot of themes from us.

John T. Hall: That are very specific and steeped in our history of compliance information governance, specifically for these professional firms. So the issue of provenance you heard me talk about in the.

John T. Hall: Delphi.

John T. Hall: Acquisition Story, and then Walls, is a well-established product line for us. We really defined this category for these end markets where they're looking for semantically based information governance that's very distinct from the traditional, You know, information security type of solutions that you might see in the horizontal markets. These professional firms really need a system that understands what an information barrier is, the kinds of semantics and taxonomy that you need to really enforce those kinds of walls, and we have a great portfolio of reference customers that have been working with us in this area for a long time.

John T. Hall: Acquisition story.

John T. Hall: Then walls.

John T. Hall: Is a well established product line for US we really defined this category for.

John T. Hall: For these end markets, where theyre looking for semantically based information governance, that's very distinct from the traditional.

John T. Hall:

John T. Hall: Information security type of solutions that you might see in the horizontal markets. These professional firms really need us.

John T. Hall: System that understands what our information barrier is the kinds of semantic.

John T. Hall: Taxonomy that you need to really.

John T. Hall: Enforce those kinds of walls, and we have a great <unk>.

John T. Hall: Portfolio of reference customers that have been working with us in this area for a long time. So it was very natural for them.

John T. Hall: So it was very natural for them to see us as the people that could bring a solution for the generative AI era and how we could help them roll out Microsoft Copilot and other generative AI solutions successfully. So we've had very positive conversations across the board, and we have had firms start to say, you know, we don't think that we can roll out co-piloting without having a solution like this, given the regulatory obligations that we live within. It's not a shortcoming of the excellent coproduct technology.

John T. Hall: To see us as the people that could bring a solution for degenerative AI year, and how we can help them rollout.

John T. Hall: Microsoft Copilot and other AI solution successfully so.

John T. Hall: So we've had very positive conversations across the board and we have had firm start to say you know we don't think.

John T. Hall: That we can rollout co pilots.

John T. Hall: Without having a solution like this given the regulatory obligations that we lived with it it's not a shortcoming.

John T. Hall: It's just that if you look at the way firms do their information governance, they have to put something like this in place to be able to take advantage of coproduct capability. So we're excited about where this can go. Thank you.

John T. Hall: The excellent co product technology. Its just that if you look at the way the firms do their information governance. They have to put something like this in place to be able to take advantage of copilot capabilities. So we're excited about where this can go.

John T. Hall: Okay.

Speaker Change: Great. Thank you.

John T. Hall: Yeah.

Unknown Executive: Please stand by for the next question. The next question comes from Matt VanVliet at BTIG. Your line is open.

John T. Hall: Please standby for the next question.

Unknown Executive: Okay.

Unknown Executive: The.

Matthew David VanVliet: Question comes from Matt Van Blip at BPI. Your line is open.

Operator: Yeah, good afternoon. Thanks for taking the time to ask the question. Obviously, the applied AI strategy was just launched recently, but curious about how you're planning to fully monetize sort of a lot of these product releases. You know, are you anticipating having sort of standalone SKUs that are premium modules to what you're offering now? Or is this really about enhancing the value of the product out there and being able to sell more product to existing customers? And sort of wrapped within that?

Matthew David VanVliet: Hey, good afternoon, thanks for taking the question.

Operator: Obviously, the applied AI strategy was just launched recently, but curious on how you are planning to fully monetize sort of a lot of these product releases.

Operator: You.

Operator: <unk>, having sort of standalone skus that are premium modules to what you're offering now or is this really about enhancing the value of the product out there being able to sell more product to existing customers.

Operator: And sort of wrapped within that should we think about this being able to push that cloud NRI number higher throughout this year as existing customers take on more and more of the applied AI.

Operator: Yeah.

Matthew David VanVliet: Should we think about this? Being able to push that cloud NRR number higher throughout this year as existing customers take on more and more of the applied AI? Thanks, Matt. So, as far as monetization goes, it's a mix. So we have some of the capabilities that we announced we are including because we want to help firms take advantage of applied AI and use it inside our system. We think it's a differentiator.

Speaker Change: Thanks, Matt so.

Matthew David VanVliet: As far as monetization goes it's a mix. So we have some of the capabilities that we announced we are including because we want to help firms take advantage.

Matthew David VanVliet: Applied AI and use it inside our system, we think it's a differentiator we think we want to be the company that is the vertical.

John T. Hall: We think we want to be the company that is the vertical AI leader for them. And we also have a strategic interest, particularly with things like Intapp data, in getting more data into their environment that we can run the AI on and then bring in third-party additional data to help augment the information that the firms are using AI to analyze and work with. So there's a component that's included. But in addition, we are creating standalone SKUs for several of these components. And it's early in the morning.

John T. Hall: Leader for them and we also have a strategic interest, particularly with things like the data and getting more data into their environment that we can run the AI on and then bring in third party additional data to help augment the.

John T. Hall:

John T. Hall: Information that the firms are using AI to.

John T. Hall: To analyze and work with so there is a component that's included but in addition, we absolutely are creating standalone skus for several of these components and it's early.

John T. Hall: You know, we just announced this in February, and we've been working with customers early on; we've got a ton of interest. And we announced some of the wins, not all of them, but we announced some of the wins on the call to help everybody see, look, this is real. At the same time, we're going to be prudent about how fast this goes.

John T. Hall: We just announced this in February and we've been working with customers early on we've got a ton of interest.

John T. Hall: And we announced some of the wins not all of them, but we announced some of the wins on the call to help see help everybody see look this is real at the same time, we're going to be prudent about how fast. This goes we need to sort of understand exactly what the rollout experiences like we want to make sure that we continue.

Matthew David VanVliet: We need to sort of understand exactly what the rollout experience is like. We want to make sure that we continue our tradition of doing a great job with that. We get the right clients with the right references working across the market. So it's a product rollout like any other that takes the normal kind of time to get folks up and running. But, generally speaking, it's a great portfolio of new launches for us and should support us as we grow. All right, very helpful.

Matthew David VanVliet: Our tradition of doing a great job with that we get the right clients with the right references working across the market. So it's a product rollout like any other that takes the normal kind of.

Matthew David VanVliet: Time to get folks up and running but I think generally speaking it's a it's a great portfolio of new launches for us that should support us as we grow.

Matthew David VanVliet: Okay.

John T. Hall: And then I guess, as you're looking at kind of the year plus ahead, as we go into the fourth quarter here planning for fiscal 25, how should we think about headcount growth? And maybe more specifically headcount growth in the go-to-market organization? Do you need to add, you know, overlay teams or any kind of sales specialist around the applied AI feature set? So how should we think about sort of go-to-market headcount more broadly? Yeah, I think we'll continue to be very thoughtful about our productivity, our cost of acquisition. You know, we're not really looking to add any more overlays into the support of, apply AI per se.

Speaker Change: Alright, very helpful. And then I guess as Youre looking at kind of the year plus ahead as we go into the fourth quarter here planning for fiscal 'twenty five how should we think about head count growth and maybe more specifically you head count growth in the go to market organization do you need to add overlay teams or any kind of sales specialists around the applied.

John T. Hall: AI feature set.

John T. Hall: So how should we think about sort of go to market head count more broadly.

John T. Hall: Yeah.

John T. Hall: Okay.

John T. Hall: Yes.

John T. Hall: I think we will continue to be very thoughtful about our productivity our cost of acquisition.

John T. Hall: We're not really looking to add any more overlays into.

John T. Hall: To support up.

Matthew David VanVliet: You know, we've got really good coverage today across each of the verticals that we serve, as well as the naming conventions of how we look at, whether it be named accounts or the long tail of opportunities. And so my point is, yes, there'll be some investments as we continue to invest for growth as we have this year, but it's not going to be out in front of revenue or any other metric. Great, thank you.

John T. Hall: Apply AI per se.

Matthew David VanVliet: We've got really good coverage today across each of the verticals that we serve as well as.

Matthew David VanVliet: The naming convention of how we look at whether it be named accounts <unk>.

Matthew David VanVliet: The long tail of opportunities and so my point being is yes, there'll be some investments as we continue to invest for growth as we have this year, but it's not going to.

Matthew David VanVliet: We'll be out in front of.

Matthew David VanVliet: Revenue or any other metric.

Speaker Change: Great. Thank you.

Operator: One moment for the next question. The next question comes from Brian Schwartz with Oppenheimer and Company. Your line is open. Hey, this is Ari Friedman sitting in for Brian Schwartz. Thanks for taking my question. I was wondering if you could kind of like double-click on the AI and monetization.

Speaker Change: One moment for the next question.

Operator: Okay.

Ari Friedman: The next question comes from Brian Schwartz with Oppenheimer <unk> Company. Your line is open.

Brian Jeffrey Schwartz: I was wondering, like, is the budget for like the AICUs and AI type of products a net new budget like that is being created internally at these companies? Or do you have to like displace some sort of other IT budget or software budget in order to sell it? Thanks. Thanks, Ari. I think the answer is both of those things.

Operator: Hey, this is Ari Friedman sitting in for Brian Schwartz. Thanks for taking my question.

Brian Jeffrey Schwartz: I was wondering if you could kind of like Doubleclick, Unlike the AI and <unk>.

Brian Jeffrey Schwartz: Monetization I was wondering like is the budget for like <unk> and AI as head of products net new budget like that is being created internally I think companies or do you have to displace some sort of other IC buttered or software budget in order to sell it.

Speaker Change: Thanks Ari.

Ari: I think the answer is both of those things there are firms.

John T. Hall: There are firms who, through their innovation initiatives, have decided that the innovation they want to invest in is AI-based, which you would expect, but they absolutely do have. And that's exciting, as well. I think AI capabilities are increasingly key differentiators across all of the traditional business application categories in these markets that we've served and others have served for a long time. And so the ability to bring a coherent, integrated, industry-specific recipe for applied AI, and generative AI to these firms is, I think, increasingly going to be a critical differentiator on win rates and trust of the firms that they're really buying into a modern environment. So we're committed to both.

John T. Hall: Who through their innovation initiatives have decided that the innovation they want to invest in.

John T. Hall: Is AI base, which you would expect but they absolutely do have.

John T. Hall: My budgets in many of the firms and Thats exciting.

John T. Hall: As well.

John T. Hall: I think the AI capabilities are increasingly key differentiators across all of the traditional business application categories. In these markets that we serve and others have served for a long time and so the ability to bring.

John T. Hall: Coherent Inc.

John T. Hall: Integrated.

John T. Hall: Industry specific recipe for applied AI degenerative AI to these firms I think is increasingly going to be a critical differentiator on win rates and trust of the firms. They are really buying into a modern environment. So we're committed to both.

John T. Hall: We want to help the firms who are really trying to push AI into new areas and discover the best applications of this new potential technology for specific industry solutions, blueprints, and workflows for professionals in a way that other companies, we think, don't have the industry expertise to really do for this market as well. And in addition, we want to make sure that our whole platform is market-leading and competitive because we really understand how to use applied AI to maintain our competitive advantage, generally, and continue to be innovators in the space. So we're going to do both. Thank you.

John T. Hall: We want to go help the firms who are really trying to push.

John T. Hall: Into new areas and discover the best applications.

John T. Hall: This new potential technology for the specific industry solutions blueprints workflows for the professionals in a way that other companies. We think don't have the industry expertise to really do for this market as well.

John T. Hall: In addition, we want to make sure that our whole platform is.

John T. Hall: Market, leading and competitive because we really understand how to use apply to AIG to maintain our competitive advantage generally and continue to to be the innovators in this space. So we're going to do both.

Speaker Change: Thank you.

Operator: This concludes our question and answer session. I would now like to turn it over to John Hall for closing remarks. OK. Well, thank you, everyone. We appreciate your attention and your questions. We have a great Q3 ahead of us.

John T. Hall: This concludes our question and answer session I would now like to turn it over to John Hall for closing remarks.

Operator: Okay.

John T. Hall: Well. Thank you everyone. We appreciate your attention and your questions.

John T. Hall: We have a great Q3 behind us.

John T. Hall: We're very proud of our accomplishments, and we're excited about what's coming next. Thank you for your time, and we'll look forward to talking to you all again next quarter. Thank you again for your participation in today's conference. This does conclude the program. You may now disconnect. Do you want to build a house now?

John T. Hall: We're very proud of our accomplishments and we're excited about what's coming next thank you for your time and we'll look forward to talking to you all again next quarter.

John T. Hall: Thank you again for your participation in today's conference. This does conclude the program you may now disconnect.

John T. Hall: Yeah.

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Speaker Change: Thank you.

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Speaker Change: Thank you.

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Operator: Yes! Yes! Yes! Yes! Yes! Yes! Yes! Yes! Yes! Yes! Yes! Yes! Yes! Yes! Yes! ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? Good day and thank you for standing by.

John T. Hall: Okay.

Operator: Okay.

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Speaker Change: Good day, and thank you for standing by welcome to the <unk> fiscal third quarter 2024 webcast. At this time all participants are in listen only mode. After the speaker's presentation, there will be a question and answer session.

Operator: Welcome to the Intapp Fiscal Third Quarter 2024 webcast. At this time, all participants are in 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 star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, David Trone, the Senior Vice President of Investor Relations. David, please go ahead.

Operator: Ask a question during the session you will need to press star one one on your telephone you will then hear an automated message advising your hand is raised to withdraw your question. Please press star. One again, please be advised that today's conference is being recorded I would now like to hand, the conference over to your first speaker today Dave.

David Trone: <unk> as senior Vice President of Investor Relations.

David Trone: David Please go ahead.

David Trone: Thank you. Welcome to Intapp's fiscal third quarter 2024 financial results. On the call with me today are John Hall, Chairman and CEO of Intapp, and David Morton, Chief Financial Officer. During the course of this conference call, we may make forward-looking statements regarding trends, strategies, and the anticipated performance of our business, including guidance provided for our fiscal fourth quarter and full year 2024. These forward-looking statements are based on management's current views and expectations, entail certain assumptions made as of today, and are subject to various risks and uncertainties, including those described in our SEC filings and other publicly available documents that are difficult to predict and could cause actual results to differ materially from those expressed or implied by such forward-looking statements.

David Trone: Thank you welcome to impact fiscal third quarter 2024 financial results.

David Trone: On the call with me today are John Hall, Chairman and CEO of <unk>, and David Morton Chief Financial Officer.

David Trone: During the course of this conference call. We may make forward looking statements regarding trends strategies and anticipated performance of our business, including guidance provided for our fiscal fourth quarter and full year 2024.

David Trone: Forward looking statements are based on management's current views and expectations until certain assumptions made as of today's date.

David Trone: And are subject to various risks and uncertainties, including those described in our SEC filings.

David Trone: And other publicly available documents that are difficult to predict and could cause actual results to differ materially from those expressed.

David Trone: Our implied by such forward looking statements.

David Trone: Intapp disclaims any obligation to update or revise any forward-looking statements except as required by law. Further, on today's call, we will also discuss certain non-GAAP metrics that we believe aid in the understanding of our financial resources. As a reminder, all of our financial figures we will discuss today are non-GAAP, except for revenue and revenue growth and total remaining performance obligations. Our GAAP financial results, along with reconciliations of GAAP to non-GAAP financial measures, can be found in today's earnings release in a supplemental financial table, which is available on our website and as an exhibit to the Form 8K furnished with the FCC prior to this call, or a supplemental With that, I'll hand the conversation over to Josh. Thank you, David. Good afternoon, everyone.

David Trone: <unk> disclaims any obligation to update or revise any forward looking statements, except as required by law.

Josh: Further on today's call. We will also discuss certain non-GAAP metrics that we believe aid in the understanding of our financial results. As a reminder, all of our financial figures. We will discuss today are non-GAAP, except for revenue and revenue growth.

Josh: In total remaining performance obligations.

David Trone: Our GAAP financial results, along with reconciliations of GAAP to non-GAAP financial measures can be found in today's earnings release.

Josh: Momentum financial tables.

Josh: Which is available on our website and as an exhibit to the form 8-K furnished with the SEC prior to this call.

Josh: Supplemental financial presentation, which is available on our website.

Josh: With that I'll hand, the conversation over to John.

Josh: Thank you David.

Josh: Good afternoon, everyone.

John T. Hall: Thank you for joining us as we share the results of our fiscal third quarter. We had an exciting quarter filled with events and announcements that I'll recap for you today. In Q3, we announced the release of new generative AI capability designed for the specialized needs of our target. We hosted our inaugural Investor Day. We held successful client and partner events. We acquired AI provider Delphi, and we updated our Applied AI Intelligence Applied Brand. We also drove strong results.

Josh: Thank you for joining us as we shared the results of our fiscal third quarter.

John T. Hall: We had an exciting quarter filled with events and announcements that I'll recap for you today.

John T. Hall: In Q3.

John T. Hall: We announced the release of new generative AI capabilities designed for the specialized needs of our target markets.

John T. Hall: We hosted our inaugural Investor day.

John T. Hall: We held successful client and partner events.

John T. Hall: We acquired AI provider Delphi.

John T. Hall: And we updated our applied AI intelligence applied branding.

John T. Hall: We also drove strong results.

John T. Hall: Through the acquisition of New Logo and the expansion of our existing accounts around the world. In Q3, our cloud ARR grew to $274.2 million, up 33% year over year. Cloud now represents 72% of our total ARR of $382.7 million. In the quarter, we earned SAF and support revenue of $80.8, a 22% year-over-year increase, and total revenue of $110.6 million, a 20% year-over-year increase. Before I go deeper into our third quarter highlights,

John T. Hall: Through the acquisition of new logos and the expansion of our existing accounts around the world.

John T. Hall: In Q3, our cloud <unk> grew to $274 $2 million.

John T. Hall: Up 33% year over year.

John T. Hall: Cloud now represents 72% of our total IRR of $382 7 million.

John T. Hall: In the quarter, we earned SaaS and support revenue of $80 8 million up 22% year over year, and total revenue of $110 6 million up 20% year over year.

John T. Hall: Before I go deeper into our third quarter highlights you may have seen that just last week, we announced the acquisition of transform data international.

John T. Hall: You may have seen that just last week we announced the acquisition of Transform Data International, a long-time Intapp partner that builds and implements enterprise collaboration techniques. We believe the combination of Intapp's solution and TDI's DomainX will optimize our clients' work within Microsoft applications. Facilitating collaboration and laying the groundwork for the use of more advanced AI tools like CoPilot. We're pleased to welcome the TDI team into Now I'll turn to our Q3 highlights. [inaudible] In February, we celebrated Intelligence Applied Launch at the NASDAQ Marketplace in New York. After ringing the opening bell, we held investor day, followed by a standing room only client.

John T. Hall: A longtime partner that builds and implements enterprise collaboration technology.

John T. Hall: We believe the combination of <unk> solutions and TDI is domain expertise, we will optimize our clients work within Microsoft applications.

John T. Hall: Facilitating collaboration and laying the groundwork for the use of more advanced AI tools like co pilot.

John T. Hall: We're pleased to welcome the CDI team to Intel.

John T. Hall: Now I will turn to our Q3 highlights.

John T. Hall: Getting with product innovation.

John T. Hall: In February we celebrated intelligence applied launch day.

John T. Hall: As that marketplace in New York.

John T. Hall: After ringing the opening Bell, we held Investor day.

John T. Hall: Followed by a standing room only client event.

John T. Hall: There, we unveiled our AI applied strategy, which further strengthens our commitment to leading vertical AI for the markets we serve. We also released a set of new applied AI capabilities under our IntappAssist product framework. I am pleased to be able to share a bit more about these with you now.

John T. Hall: There, we unveiled our intelligence applied strategy, which further strengthens our commitment to leading vertical AI for the markets we serve.

John T. Hall: We also released a set of new applied AI capabilities under our in tap assist products brand.

John T. Hall: I am pleased to be able to share a bit more about these with you now.

John T. Hall: First, we launched IntappAssist for DeoCloud, which integrates AI into everyday workflows to save professionals time by generating deal, company, and meeting summaries and creating relevant, personalized, targeted email out of the box. Leveraging our partnership with Microsoft, the solution uses both Azure OpenAI and Intapp's proprietary firm data within Deoclass to generate much more knowledgeable language about the firm's deals, clients, and engagement. A significant advantage that helps the AI deliver more relevant, accurate results for our professionals on the first try.

John T. Hall: First we launched <unk> assist for deal cloud.

John T. Hall: Which integrates AI into everyday workflows to save professionals time by generating deal company and meeting summaries and creating relevant personalized targeted E mail outreach.

John T. Hall: Leveraging our partnership with Microsoft the solution uses both Azure open AI.

John T. Hall: And in cats proprietary firm data within deal cloud.

John T. Hall: To generate much more knowledgeable language about the firm's deals clients and engagements.

John T. Hall: A significant advantage that helps the AI deliver more relevant accurate results for our professionals on the first try.

John T. Hall: IntappAssist for DealCloud is now generally available, and it has already been adopted by clients including Corporate Law Firm, A&L, goodbye, and the investment team at U.S. Realty Advisor, who chose DealCloud to replace a legacy horizontal CRM that required modification to meet the firm's needs.

John T. Hall: Is <unk> assist for deal cloud is now generally available.

John T. Hall: And it has already been adopted by clients, including corporate law firm Anl Goodbody.

John T. Hall: And the investment team at U S Realty advisors, who chose deal cloud to replace a legacy horizontal CRM that required modification to meet the firm's needs.

John T. Hall: USRA viewed DealCloud as a long-term investment, and our platform stood out due to its real estate blueprint. Impressive roster of client adopters, and now new applied AI features like Intapp. The power of generative AI depends on data, which is why we released Intapp Data as a solution available to all DL Cloud customers. Intapp Data augments a firm's internal intelligence with information on more than 85 million companies and 200 million contacts, plus even more connectivity with third-party data. This nucleus of core data is critical to our application of generative AI so that our results are specific, accurate, relevant, and actionable.

John T. Hall: You SRA view deal cloud as a long term investment to future proof their business and.

John T. Hall: Our platform has stood out due to its real estate blueprint.

John T. Hall: Impressive roster of client adopters.

John T. Hall: And now new applied AI features like <unk> assist.

John T. Hall: The power of generative AI depends on data.

John T. Hall: Which is why we released in data as a solution available to all deal cloud clients.

John T. Hall: In SAP data augments firms internal intelligence with information on more than $85 million companies and 200 million contacts plus.

John T. Hall: Plus even more connectivity with third party data partners.

John T. Hall: This nucleus of core data is critical to our application of generative AI. So that our results are specific accurate relevant and actionable.

John T. Hall: Drawing on our successful partnership with Microsoft, we welcomed their executives to the stage at our launch, as we shared the release of Intapp Walls for Copilot, a new solution that combines the power of Microsoft's technology with our industry-specific expertise and innovation in regulated markets information security. Intapp has long helped firms take control of their sensitive information with our walls. Intapp Walls helps control access to information for each professional, based on their unique rights.

John T. Hall: Drawing on our successful partnership with Microsoft We welcome to their executives to the stage of our launch of that as we shared the release of in tap walls for co pilot.

John T. Hall: New solution that combines the power of Microsoft's technology with our industry specific expertise and innovation in regulated markets information security.

John T. Hall: <unk> has long helps firms take control of their sensitive information with our will all solution.

John T. Hall: This helped walls helps control access to information for each professional base.

John T. Hall: Based on their unique rights.

John T. Hall: Under Their Client and Regulatory Obligations. Intapp Walls for Copilot extends this ability to AI, giving firms visibility and control over the data that Copilot is authorized to access and surface for each user. It processes complex, overlapping policies and rules governing each professional and the firm's body of work and translates firm policies into native security controls for each system that may contain sensitive information. Walls for Copilot is yet another example of the combined power of Microsoft's technology with Intapp's industry-specific expertise and innovation. Our partnership with Microsoft continues to add value in other ways. In March, technology leaders from some of the world's most prominent accounting, consulting, and law firms attended our second annual CIO summit in red.

John T. Hall: Under their clients and regulatory obligations.

John T. Hall: In tap walls for co pilot extends the stability to AI.

John T. Hall: Giving firms visibility and control over the data that co pilot is authorized access and surface for each user.

John T. Hall: It processes complex overlapping policies and rules governing each professional and the firm's body of work and.

John T. Hall: And translates firm policies into native security controls for each system that may contain sensitive information.

John T. Hall: Waltzer co pilot is yet. Another example of the combined power of Microsoft's technology with Intest industry specific expertise and innovation.

John T. Hall: Our.

John T. Hall: <unk> shipped with Microsoft continues to add value in other ways.

John T. Hall: In March technology leaders from some of the worlds most prominent accounting consulting and law firms attended our second annual CIO summit in Redmond.

John T. Hall: During this two-day event, CIOs, Intapp leaders, and Microsoft executives discussed the key issues they face today, including innovation, best practices, and change management needed to support these markets as we move into the generative AI era. Attendees were enthusiastic about both the event and the potential for continued innovation between our organizations. Returning to our launch event, the last new solution we revealed originated from a market research initiative that we conducted last year with DCM Info. We studied business development behaviors and habits at partner-led firms.

John T. Hall: During this two day event.

John T. Hall: Does it have leaders and Microsoft executives dug into the key issues they face today, including innovation best practices and change management needed to support these markets as we move into the generative AI Europe.

John T. Hall: Attendees were enthusiastic about both the event and the potential for continued innovation between our organizations.

John T. Hall: Returning to our launch of that.

John T. Hall: The last new solution, we revealed originated from our market Research initiative that we conducted last year with DCM insights.

John T. Hall: The research findings identify, with strong data, that professionals who behave as activators, people who make understanding and connecting with networks part of their daily habit, tend to be the most successful in their firm. Using this research, we developed and launched the Activator Experience for DeoCloud, to help facilitate professionals' successful behaviors and habits using AI-powered signals. The solution helps each professional to be more conscious and consistent in these behaviors to drive more success in their business development activities.

John T. Hall: We studied business development behaviors and habits at partner led firms.

John T. Hall: The research findings identified with strong data that professionals, who behave as activators.

John T. Hall: People, who make understanding and connecting with networks part of their daily habits tend to be the most successful in their firms.

John T. Hall: Using this research we developed and launched the activator experience for deal cloud.

John T. Hall: To help facilitate professionals successful behaviors and habits using AI powered signals.

John T. Hall: The solution helps each professional to be more conscious and consistent in these behaviors to drive more success in their business development activities.

John T. Hall: Finally, we shared that Intapp was acquiring Berlin-based Delphi, a cutting-edge organization that applies AI across public data, ensuring that firmographic data is collected, structured, and presented to professionals with critical provenance. In an era where more and more content is generated by AI, provenance is critical, and its significance can't be understated in our industry, which makes foundational promises of trust and accuracy each day.

John T. Hall: Finally, we shared that in tap was acquiring Berlin based Delphi.

John T. Hall: A cutting edge organization that applies AI across public data.

John T. Hall: Ensuring that firm a graphic data is collected structured and presented to professionals with critical provenance.

John T. Hall: In an era, where more and more content is AI generated provenance is critical.

John T. Hall: And its significance can't be understated in our industries, who make foundational promises of trust and accuracy each day.

John T. Hall: The acquisition of Delphi is a big step forward for Intapp's AI strategy. Delphi brings a brilliant team of data scientists, AI engineers, and researchers, who further augment our already rich AI tower. We believe Delphi's AI models and tech stack will help form the next generation of our data. Intelligence Applied Launch Day was a big event, and judging from the response, it was for our clients as well.

John T. Hall: The acquisition of Delphi is a big step forward for Intest AI strategy.

John T. Hall: Five rigs a brilliant team of data scientists AI engineers, and researchers who further augment our already rich AI talent.

John T. Hall: We believe Delphi is AI models and tech stack will help form the next generation of our data Foundation.

John T. Hall: Intelligence applied launch day was a big day.

John T. Hall: Judging from the response it was for our clients as well.

John T. Hall: Reinforcing our vertical AI positioning and offerings has led to a groundswell in activity, creating even more applied AI conversations in an already active client and spurring new meetings and demonstrations. The strong interest only reinforces how well positioned we are to take advantage of this moment through our applied AI strategy. Turning now to our client.

John T. Hall: Reinforcing our vertical AI positioning and offerings has led to a groundswell in activity.

John T. Hall: <unk>, even more applied AI conversations in an already active client base and spring new meetings and demonstration requests.

John T. Hall: The strong interest only reinforces how well positioned we are to take advantage of advantage of this moment through our applied AI strategy.

John T. Hall: Okay.

John T. Hall: Turning now to client wins.

John T. Hall: I'd like to share just a few examples of how we're continuing to grow our client base and expand our global reach. First, I'm pleased to share that we continue to grow our client base with new logos included, a leading European consulting firm who purchased Intapp Collaboration and is now live on thousands of devices across APAC, EMEA, and LASA, with a North American Go Live planned this. They selected Intapp Collaboration to help manage Teams sprawl. Automate Team Governance and Streamline the Asset Archive

John T. Hall: Like to share just a few examples of how we're continuing to grow our client base and expand our global reach.

John T. Hall: First I'm pleased to share that we continue to grow our client base with new logos.

John T. Hall: <unk>.

John T. Hall: A leading European consulting firm.

John T. Hall: Who purchased in tap collaboration.

John T. Hall: It is now live on thousands of seats.

John T. Hall: Cross APAC EMEA and Latam.

John T. Hall: With the North American go live planned this year.

John T. Hall: They selected and tap collaboration to help manage teams sprawl.

John T. Hall: Automate team governance and streamlined asset archiving.

John T. Hall: They are now managing their proposals projects and exceptions on sharepoint and teams within our solution.

John T. Hall: They are now managing their proposals, projects, and exceptions on SharePoint and Teams within our solution. Additionally, in Q3, several firms became new clients. After having tried to use a horizontal legacy CRM to meet their industry-specific needs, which proved unsuccessful, here are a few examples. Real Assets Investment Firm sent, who selected D.O. Cloud based on our industry expertise and specialized focus and our ability to support their specific asset management workflow. Private Equity Firm, FlexiPoint 4, which selected DealCloud to centralize firm, deal, and industry intelligence.

John T. Hall: Additionally, in Q3, several firms became new clients.

John T. Hall: After having tried to use a horizontal legacy CRM to meet their industry specific needs.

John T. Hall: <unk>, which proved unsuccessful.

John T. Hall: A few examples of this.

John T. Hall: Real assets investment firm <unk> gate.

John T. Hall: Selected deal cloud based on our industry expertise and specialized focus and our ability to support their specific asset management workflows.

John T. Hall: Private equity firm.

John T. Hall: Firm Flex the point forward.

John T. Hall: Who selected deal cloud the centralized firm deal in industry intelligence.

John T. Hall: DL Cloud won out over other solutions due to its market-leading brand and ease of use for the firm's professionals. Generate Capital replaced their legacy CRM with DealCloud to manage the needs of their investor coverage, capital markets, and investors. DLSOT has the ease-of-use and out-of-the-box, purpose-built features that their previous system lacked.

John T. Hall: Via cloud won out over other solutions due to its market, leading brand and ease of use for the firms professionals.

John T. Hall: And generate capital.

John T. Hall: Who replaced their legacy CRM.

John T. Hall: With deal cloud to manage the needs of their investor coverage capital markets and investments team.

John T. Hall: He also has the ease of use and out of the box purpose built features that their previous system lacked.

John T. Hall: Additionally, cross selling and upselling, in our existing platform, continue to drive net revenue retention, for example. Investment Banking Firm, Perella Weinberg, who were already live on our platform, have now added an Intapp wall. The firm will use walls to create necessary barriers around sensitive information.

John T. Hall: Additionally, cross selling and up selling success in our existing accounts continued to drive net revenue retention.

John T. Hall: For example.

John T. Hall: Investment banking firm Perella Weinberg.

John T. Hall: Who were already live on our conflict solution now added in tap walls.

John T. Hall: The firm will use walls to create necessary barriers around sensitive information.

John T. Hall: Manage SharePoint permissions and security, and Track Users, to maintain regulatory client and the firm's own risk and compliance. As a second example of cross-selling and up-selling. Law Firm, Warner, Norcross, and Judge, a long-time user of ours. Added Deal Cloud and our conflicts to support its firm-wide growth strategy. Tom Smanick, Waters, Director of Business Development and Marketing, shared that as part of the strategy. The firm encourages its attorneys to deepen their relationships with current clients while also nurturing their networks to source new business.

John T. Hall: Managed sharepoint permissions and security.

John T. Hall: And track user activity to maintain regulatory client and the firm's own risks and compliance requirements.

John T. Hall: The second example of cross selling and up selling.

John T. Hall: Law firm Warner Norcross Jud.

John T. Hall: A long time user of our time solution.

John T. Hall: Added deal cloud.

John T. Hall: And our conflicts solution.

John T. Hall: To support its firm wide growth strategy.

John T. Hall: Tom semantic Warner's director of business development and marketing.

Speaker Change: Sure that is part of the strategy. The FERC encourage you that the attorneys to deepen their relationships with current clients. While also nurturing their networks to source new business.

John T. Hall: He believes that DealCloud will help attorneys facilitate growth by providing relationship management, intelligence, and outreach capabilities all in one easy-to-use platform. UK-based law firm DAC Beachcroft added our collaboration solution to its Intapp stack, which already included Intapp Time and Veo Cloud, said David Aird, the firm's IT director.

Tom Smanick: He believes that deal cloud will help attorneys facilitate growth by providing relationship management intelligence and outreach capabilities all in one easy to use platform.

John T. Hall: And the third example, UK based law firm D. AC Beechcraft added our collaboration solution to its entire stack, which already included in tough time and deal cloud.

John T. Hall: David aired the firm's ITE director said Theyre looking to better leverage their investment in Microsoft 365 to align with how they believe their lawyers will use AI innovations like Microsoft co pilot.

John T. Hall: So they are looking to better leverage their investment in Microsoft 365 to align with how they believe their lawyers will use AI innovations like Microsoft Copilot. They believe the work Intapp is doing to deliver legal-specific modern work tools in partnership with Microsoft will help safely drive innovation across the firm. And, in a large final example, one of the world's largest accounting firms and an existing Intapp client selected our employee compliance solution, Automate the Auditor-Independent Attestation. Previously, the firm had relied on a time-consuming, error-prone manual process that required data entry duplication, navigation of multiple systems, and poor data quality.

John T. Hall: They believe the work in tap is doing to deliver legal specific modern work tools in partnership with Microsoft will help safely drive innovation across the firm.

John T. Hall: And in a large final example, one of the world's largest accounting firms and existing <unk> client selected our employee compliance offering to automate the auditor independence attestation process.

John T. Hall: Previously the firm had relied on a time consuming error prone manual process that required data entry duplication navigation of multiple systems and poor data quality.

John T. Hall: In conclusion, we're proud of our strong third quarter performance, and we're pleased with the level of continued innovation and meaningful touch points that we achieved with clients, partners, and investors over the course. We are also pleased with the response and interest in our new intelligence applied AI capability and optimistic about our continued growth opportunity. With our intelligence applied strategy, we believe that we are well poised to be the vertical AI leader for the industries we serve. As always, I'd like to thank our clients, our partners, our investors, our board, and our global Intapp team for their teamwork and dedication. Thank you all very much. Okay, Dave, over to you.

John T. Hall: In conclusion, we're proud of our strong third quarter performance and we're pleased with the level of continued innovation and meaningful touch points that we achieved with clients partners and investors over the course of the quarter.

Dave: We are also pleased with the response and interest in our new intelligence applied AI capabilities.

Dave: And optimistic about our continued growth opportunities with them.

Dave: With our intelligent supply of strategy, we believe that we are well poised to be the vertical AI leader for the industries we serve.

Dave: As always I'd like to thank our clients our partners our investors our board and our global intact team for their teamwork and dedication.

Dave: Thank you all very much.

John T. Hall: Okay, Dave over to you.

David H. Morton: Thanks, John. And thanks, everyone, for joining us today. I also want to express my gratitude to all who participated in or listened to our inaugural Investor Day this past February. We are thrilled about the strong trajectory and future of this company. To that end, I'm pleased to report our solid third quarter performance driven by strong cloud ARR growth and an expanding customer base and enhanced operational efficiency within the quarter. These achievements collectively position us to further extend our leadership as we embark on an exciting market opportunity in our fiscal Q4 2024 and beyond.

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

David H. Morton: Also want to express my gratitude to all who participated in or listened to our inaugural Investor day. This past February we.

David H. Morton: We are thrilled about the strong trajectory and future of this company.

David H. Morton: To that end I am pleased to report our solid third quarter performance, driven by strong cloud <unk> growth and expanding customer base and enhanced operational efficiency within the quarter.

David H. Morton: These achievements collectively position us to further extend our leadership as we embark on an exciting market opportunity in our fiscal Q4 2024 and beyond.

David H. Morton: Fasten support revenue was 80.8 million, up 22% year-over-year, reflecting sales to new clients and expansion of existing clients from both cross selling and upselling sales. Subscription license revenue was $16.5 million, up 22% year-over-year, largely due to a couple large clients opting for multi-year on-premise renewal.

David H. Morton: SaaS and support revenue was $80 8 million up 22% year over year, reflecting sales to new clients and expansion of existing clients from both cross selling and up selling sales motion.

David H. Morton: Subscription license revenue was $16 5 million up 22% year over year, largely due to a couple of large clients opting for multiyear on premise renewals with that said, 91% of our clients have at least one cloud module, we will continue to temper, our multiyear renewals as we work with our clients.

David H. Morton: With that said, 91% of our clients have at least one cloud module. We will continue to temper our multi-year renewals as we work with our clients to transition their on-prem to the cloud in the coming years. Professional Services revenue was $13.3 million, marking a 7% year-over-year increase. This growth rate aligns with our deliberate strategic shift to deemphasize professional services.

David H. Morton: To transition their on Prem to cloud in the coming year.

David H. Morton: Professional services revenue was $13 3 million, marking a 70% year over year increase this growth rate aligns with our deliberate strategic shift to deemphasize professional services.

David H. Morton: The ongoing success of our industry solutions further contributes to clients realizing quicker time to value through an expedited implementation process. Total revenue was $110.6 million, up 20% year over year, driven primarily by sales of our cloud solutions and growth of subscription license revenue. Our international business presents a growth opportunity to expand and invest in the utilization of our platform beyond the U.S. Revenue generated from our international operations remained robust, accounting for approximately 30% of total revenue for fiscal.

David H. Morton: Ongoing success of our industry solutions further contributes to clients realizing quicker time to value through an expedited implementation process.

David H. Morton: Total revenue was $110 6 million up 20% year over year, driven primarily by sales of our cloud solutions and growth of subscription license revenue.

David H. Morton: Our international business presents a growth opportunity to expand and invest in utilization of our platform beyond the U S revenue generated from our international operations remained robust accounting for approximately 30% of total revenue for fiscal Q3.

David H. Morton: Our partner CoSell Motion is gaining significant traction, driven by partner influence and sourcing and the adoption of some of our partner products. I'm pleased to announce that we have recently onboarded six new partners, further enriching our network. Additionally, we have strengthened our relationships with five existing partners, enhancing our ecosystem even further to 125 partners in total. Q3 non-GAAP gross margin was 75.1% as compared to 71.7% in the prior year period.

David H. Morton: Our partner co sell motion is gaining significant traction driven by our partner influence and sourcing and the adoption of some of our partner products I am pleased to announce that we have recently on boarded six new partners further enriching our network. Additionally, we have strengthened our relationships with five existing partners enhancing our ecosystem.

David H. Morton: Im even further to 125 in total.

David H. Morton: Q3, non-GAAP gross margin was 75, 1% as compared to 71, 7% in the prior year period.

David H. Morton: Non-GAAP operating expenses were $71.9 million, an $8.8 million increase year-over-year as we continue to invest in product development and go-to-market to support our growth. Additionally, as we continue to focus on our operational efficiency. Our non-GAAP operating profit was $11.2 million, as compared to 2.9 million in the prior year period. Non-GAAP diluted EPS was $0.14 in the third quarter of fiscal 2024, as compared to $0.03 in the prior year period.

David H. Morton: non-GAAP operating expenses were $71 9 million and $8 8 million increase year over year as we continue to invest in product development and go to market to support our growth.

David H. Morton: As we continue to focus on our operational efficiency, our non-GAAP operating profit was $11 2 million as compared to $2 9 million in the prior year period.

David H. Morton: non-GAAP diluted EPS was <unk> 14 in the third quarter of fiscal 2024 as compared to three in the prior year period.

David H. Morton: Free cash flow, which is defined as our cash flow from operations less capital expenditures, was $16.1 million for the third quarter, or 15% of total revenue. We exited the quarter with $187.4 million of cash and cash equivalents. Turning to our key metrics, Cloud ARR was up 33% year-over-year, and total ARR was up 21% year-over-year. Total remaining performance obligations were $467.9 million, up 23%

David H. Morton: Free cash flow, which is defined as our cash flow from operations less capital expenditures was $16 1 million for the third quarter or 15% of total revenue.

David H. Morton: We exited the quarter with $187 4 million of cash and cash equivalents.

David H. Morton: Turning to our key metrics.

David H. Morton: <unk> was up 33% year over year, and total IRR was up 21% year over year.

David H. Morton: Total remaining performance obligations were $467 9 million up 23% year over year.

David H. Morton: Overall, we remain committed to executing our land and expand model, concluding the quarter with over 2450 clients. And among those, 673 had annual recurring revenue of at least 100K, up from 572 in the previous quarter. Our net revenue retention rate underscores our ability to retain and steadily expand business with our existing customers. This key metric was 115%, which continues to track within a range of 113% to 117%.

David H. Morton: Overall, we remain committed to executing our land and expand model concluding the quarter with over 2450 clients and among those 673 had annual recurring revenue of at least 100 K up from 572 in the previous year.

David H. Morton: Our net revenue retention rate underscores our ability to retain and steadily expand business with our existing customers is.

David H. Morton: This key metric was 115%, which continues to track within a range of 113% to 117%.

David H. Morton: Our cloud NRR in Q3 FY24 was 120%. Now, turning to our outlook. For the fourth quarter of fiscal 24, we expect fast and support revenue of between $83.5 and $84.5 million, total revenue in the range of $111 to $112 million, non-GAAP operating profit in the range of $10.5 to $11.5 million, and non-GAF EPS results of 11 to 13 cents using a diluted share count weighted for the quarter of approximately 81 million common shares.

David H. Morton: Our cloud <unk> in Q3, FY 'twenty four was 120%.

David H. Morton: Now turning to our outlook.

David H. Morton: For the fourth quarter of fiscal 'twenty, four we expect SaaS and support revenue of between 83, five and $84 5 million in total revenue in the range of $111 million to $112 million.

David H. Morton: non-GAAP operating profit in the range of 10, five to 11 5 million and.

David H. Morton: And non-GAAP EPS results of 11 to 13.

David H. Morton: Using a diluted share count weighted for the quarter of approximately 81 million common shares outstanding.

David H. Morton: For the full year fiscal 24, we expect Staff and Support revenue of between $314.5 and $315.5 million and increased total revenue in the range of $427 to $428 million. We also expect non-GAAP operating profit to be in the range of $35.5 to $36.5 million and non-GAAP EPS in the range of $0.42 to $0.44 using a diluted share count weighted for fiscal year 2024 of approximately 81 million common shares outstanding.

David H. Morton: For the full year fiscal 'twenty, four we expect SaaS and support revenue between $314, five and $315 5 million.

David H. Morton: And increasing our total revenue in the range of $427 million to $428 million.

David H. Morton: We also expect non-GAAP operating profit to be in the range of $35 five to $36 5 million.

David H. Morton: Okay.

David H. Morton: And non-GAAP EPS in the range of 42 to 44.

David H. Morton: On a diluted share count weighted for fiscal year 'twenty four of approximately 81 million common shares outstanding.

Operator: Thank you, and I will now turn the call back to the operator. Thank you. At this time, we will conduct the question and answer session. As a reminder, to ask a question, you will need to press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again.

Speaker Change: Thank you and I will now turn the call back to the operator.

Operator: Please stand by while we compile the Q&A roster. The first question comes from Koji Ikeda with Bank of America. Your line is open. Hey, this is Natalie Howe. I'm for Koji.

Operator: Thank you at this time, we will conduct a question and answer session. As a reminder to ask a question you will need to press star one one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again, please standby while we can.

Operator: Compile the Q&A roster.

Natalie Elena Howe: The first question comes from Koji Ikeda with Bank of America. Your line is open.

Natalie Elena Howe: Um, congrats on the quarter. I wanted to ask about your plans for margin expansion, because you guys have really done a nice job there, especially in sales and marketing. Going forward, how will you balance investing in the platform and AI with margin? Thanks, Natalie.

Natalie Elena Howe: Hey, this is Natalie how on for <unk>. Congrats on the quarter I wanted to ask about your levers for margin expansion expansion. Because you guys have really done a nice job there, especially in sales and marketing.

Natalie Elena Howe: Going forward, how will you balance investing in the platform and AI with margin expansion.

Speaker Change: Thanks Natalie.

John T. Hall: We have a strong opportunity to take advantage of this moment in generative AI and AI more generally. And I think that this launch that the team executed in February was an excellent moment to communicate to the market how far we had come in bringing applied AI throughout the platform. You really saw the culmination of quarters and quarters of work there.

Natalie Elena Howe: We have a strong opportunity to take advantage of this moment in.

John T. Hall: Generative AI and AI more generally.

John T. Hall: And I think that this launch that the team.

John T. Hall: Executed in February.

John T. Hall: Wasn't excellent moment to communicate to the market how far we had come in bringing applied AI throughout the platform you really saw the culmination of quarters and quarters of work there.

John T. Hall: And I'm so proud and thankful to the product team and the launch team for helping us communicate so clearly what we can do for this special market with applied AI. So you're going to see that as the beginning of an ongoing road map under this intelligence-based strategy to continue to bring out more and more applied AI and generative AI capabilities throughout all of the products. In fact, the Intapp Assist, Product Brand.

John T. Hall: And I'm, so proud and thankful.

John T. Hall: The product team and the launch team for helping us communicate so clearly.

John T. Hall: What we can do for this special market with.

John T. Hall: With applied AI, so youre going to see that as the beginning of.

John T. Hall: Of an ongoing road map.

John T. Hall: Under this intelligent supply strategy to continue to bring out more and more applied AI agenda AI capabilities throughout all of the products in fact, the <unk> assist.

John T. Hall: We talked about IntappAssist for DealCloud, but we also talked about the fact that, in the future, you will see IntappAssist for additional components of the platform. So we're committed to a roadmap of increasing capability using this Applied AI, moment, and technology throughout the platform.

John T. Hall: <unk> brand, we talked about in tap assist for deal cloud.

John T. Hall: But we also talked about the fact that.

John T. Hall: In the future you will see into emphasis for additional components.

John T. Hall: The platform so we're committed to.

John T. Hall: Two a roadmap of increasing capability using this applied AI.

David H. Morton: That being said, I do think we're getting good leverage, Dave, you could talk a little bit more about this as we grow, for a whole variety of reasons. And we shared yesterday that we're going to continue to demonstrate some of that as the model scales. No, you're absolutely correct, John.

John T. Hall: And in technology throughout the platform that being said I do think we're getting good leverage David you can talk a little bit more about this as we grow.

David H. Morton: For a whole variety of reasons and.

David H. Morton: We shared at Investor day that we're going to continue to demonstrate some of that as the model scales.

David H. Morton: We've been working really diligently within the respective teams, just enhancing our own operational efficiency as we continue to scale to the billion-dollar attributes that we discussed on February 22nd. So you can view that across all of our defined types across the P&L, whether it be product and engineering, sales and marketing, as well as G&A.

Dave: No Youre absolutely correct, John we've been working really.

David H. Morton: Diligently within.

David H. Morton: With respect to teens.

David H. Morton: Just enhancing our own operational efficiency as we continue to scale.

David H. Morton: So the $1 billion attributes that we discussed on February 22nd.

David H. Morton: So you can view that across all of our T cell types across the P&L, whether it be product in engineering sales and marketing as well.

David H. Morton: <unk> DNA.

David H. Morton: It was more to come there as we manage those respective leaders and processes.

David H. Morton: With respect to.

David H. Morton: So there's more to come there as we manage those respective leaders and processes. With respect to our own product and offerings, we've been working really hard with the respective teams on our pricing and packaging and so on to make sure that we can monetize these respective feature sets that we brought forward here in this current quarter as well as into FY25. Great, thank you, that's all for me.

David H. Morton: Our own product and offerings, we have been working really.

David H. Morton: Hard with respect to teams on our pricing and packaging and what have you to make sure that we can monetize things are Spector respect that feature sets that we brought forward here in this.

David H. Morton: Current quarter as well as into FY 'twenty one.

Speaker Change: Great. Thank you that's all for me.

Natalie Elena Howe: One moment for the next question. The next question comes from Kevin McVeigh at UBS. Your line is open. Great. Thank you so much. And let me add my congratulations as well. Hey, I don't know who this should be for.

Speaker Change: One moment for the next question.

Natalie Elena Howe: Okay.

Natalie Elena Howe: Yes.

Natalie Elena Howe: Yes.

Kevin Damien McVeigh: The next question comes from Kevin Mcveigh at UBS. Your line is open.

Kevin Damien McVeigh: Great. Thank you so much Tim let me add my congratulations as well.

Kevin Damien McVeigh: But, you know, the Microsoft Alliance and the KPM alliances continue to scale, which we really think is just a terrific opportunity. Steve, is there any way to maybe quantify how much revenue comes from them today? And are you starting to see some of the implementation work go through KPMG? And is that helping drive some of the leverage you saw in the quarter? Because obviously, there was a nice outcome on leverage as well as revenue.

Kevin Damien McVeigh: Hey, I don't know really should be four but.

Kevin Damien McVeigh: It seems like the Microsoft Alliance and the KPN KPN alliances continue to scale.

Steve: We really think it is just a terrific opportunity.

Kevin Damien McVeigh: Steve is there any way to maybe frame how much revenue comes from them today and are you starting to see some of the implementation work go through key PMG and is that helping drive some of the leverage you saw in the quarter because obviously there was a.

Speaker Change: A nice outcome on our Leverages as well as revenue I wanted to start there if we could.

Kevin Damien McVeigh: I wanted to start there if we could. Yeah, for sure. Um, you know, we haven't talked about the absolute opportunity or the pipe that they brought, but just know that it is starting to become a more enhanced motion for us. But we're still in the very early innings.

Speaker Change: Yes sure.

Kevin Damien McVeigh: We haven't talked about the absolute opportunity or the pipe that they brought but just know that it is starting to become.

Kevin Damien McVeigh: A more enhanced motion for us, but we're still very early innings.

Kevin Damien McVeigh: But we like these respective partnerships and more and we will continue to use this as an accelerator as we discussed.

David H. Morton: But we like these respective partnerships and more, and we'll continue to use this as an accelerator as we discuss going forward. So, Okay, great. And then when you think about...

David H. Morton: Going forward so.

Speaker Change: Okay, Great and then when you think about.

Kevin Damien McVeigh: I guess going to those on-prem renewals, how should we think about the timing on that, you know, given how much, you know, emphasis there's been from a Gen-AI perspective, how are you balancing those on-prem with the Gen-AI opportunity more broadly? Yeah, it's a... It's a nice balance. In fact, if you want access to newer technology, you need to be in the cloud. And so it's a It's a push and pull motion.

Speaker Change: Yeah, I guess go into those on Prem renewals.

Kevin Damien McVeigh: Should we think about the timing on that just given how much emphasis you stand from a gen AI perspective, how you're balancing those on premise with the gen II opportunity more broadly.

Kevin Damien McVeigh: Yes.

Kevin Damien McVeigh: It's a nice balance in fact, if you want access to.

Kevin Damien McVeigh: You know, when we come back around and FQ4 and provide FY 25 annual guidance, annual guidance will provide some more insight into that and what it means to that specific line item. But just know that behind the scenes, operationally, the team is working very hard with our respective clients in supporting their narrative or trying to accelerate that motion to go more and more into the cloud. This is BrailleFull, and again, congratulations.

Kevin Damien McVeigh: The newer technology, you need to be in the cloud and so it's a push pull motion.

Kevin Damien McVeigh: When we come back around in FQ4.

Kevin Damien McVeigh: And provide FY 'twenty fives.

Kevin Damien McVeigh: Annual guidance, we'll provide some more insight into that at what it what it means for that specific line item, but just.

Kevin Damien McVeigh: No that behind the scenes operationally the team is working very hard with our respective clients.

Kevin Damien McVeigh: And supporting their narrative or trying to accelerate that motion to go more and more into the cloud.

Speaker Change: Super helpful and again congratulations.

David H. Morton: Please stand by for the next question. And the next question comes from Steve Enders with Citi. You are live.

Speaker Change: Please standby for the next question.

David H. Morton: And the next question comes from Steve Enders with city you are alive.

Steven Lester Enders: Okay, great. Thanks for, um, thanks for taking the questions here. I guess maybe just to start, I guess it'd be good to hear what you're kind of hearing out there and kind of the macro environment and the deal environment and I guess maybe how it's changed versus some of the maybe maybe weakness you're seeing in financial services last quarter. And then I guess as well, like, I think the staff and support line, you know, maybe it's kind of more in line with what we typically have seen the execution there So is there anything to call out about that? They may have kind of impacted that line in the quarter here.

Steven Lester Enders: Okay, great. Thanks for thanks for taking the questions here.

Steven Lester Enders: I guess, maybe just just to start I guess it would be good to hear what you're kind of hearing out there in kind of the macro environment and the deal environment, then I guess, maybe how it's changed versus some of the maybe maybe the weakness you're seeing in financial services.

Steven Lester Enders: Last quarter and.

Steven Lester Enders: And then I guess as well.

Steven Lester Enders: And I think the SaaS and support line, maybe it's kind of more in line with what we typically are typically seen the explanation aerosol business, let me hand, the call out too.

Steven Lester Enders: They may have kind of impacted that line in the quarter here.

John T. Hall: Yeah, thanks, Steve. So, you know, we look at the market opportunity as a meaningful, underserved industry that traditionally did not benefit from the digital transformation movement that benefited every other industry because these firms are organized in a special way as partnerships and because the type of work that they do is not selling widgets through a Salesforce, but they are developing and working with clients or investment opportunities deals on the basis of their expertise, and so the space here is pretty.

Speaker Change: Yeah, Thanks, Steve So.

John T. Hall: We look at the market opportunity.

John T. Hall: I mean.

John T. Hall: Meaningful underserved industry that traditionally did not benefit from.

John T. Hall: The digital transformation.

John T. Hall: Movement that benefited every other industry because these firms are organized in a special way as partnerships and because the type of work that they do is not selling widgets through a sales force, but they are.

John T. Hall: Developing in.

John T. Hall: Working with clients or investment opportunities deals on the basis of their expertise and so the.

John T. Hall: Space here is pretty.

John T. Hall: It is important for us to grow both new client acquisition and client expansion. And one of the things we emphasized yesterday is how significant Sam and Tam really are for this underserved space that I think people have kind of overlooked.

John T. Hall: Significant for us to grow both in new client acquisition and in client expansion.

John T. Hall: And one of the things we emphasized on Investor day is how significant the Sam or Tam really are for this underserved space that I think people have kind of overlooked we've got excellent examples now and we talked about some of them in the script here.

John T. Hall: We've got excellent examples now, and we talked about some of them in the script here, of firms that are meaningfully expanding their footprint across our platform. And we think that's going to be a very strong growth driver for us as we grow the business. In terms of the macro, I think we've shared with you all that there are areas of our market that have survived very well through some very turbulent times, more turbulent than this. And we've actually successfully bootstrapped the business all the way through the 2008 recession and other periods because law firms always do well. The accounting firms always do well.

John T. Hall: Firms that are meaningfully expanding their footprint.

John T. Hall: Across our platform and we think thats going to be a very strong growth driver for us as we grow the business.

John T. Hall: In terms of the macro I think we've shared with you all that there are.

John T. Hall: Areas of our market that have survived very well through some very turbulent times more turbulent for this and we've actually successfully bootstrap the business all the way through the 2008 recession other periods because.

John T. Hall: More and more of the professional services firms that we sell to have a very stable business. We said if there's any place that there is some potential variability for us, it's probably investment banking. We talked about that. But you know, a lot of the firms that we talked about on the last call did come through and buy for us. We actually talked about one of them here in the script, and some of them we're still working on.

John T. Hall: <unk> always do well the accounting firms always do well more and more of the professional services firms that we sell to have a very stable business. We said if there's any place that there is some potential variability for us it's probably investment banking, we talked about that but you know a lot of the firms that we talked about on the last call did come through.

John T. Hall: And by for US, we actually talks about one of them here in the script and some of them. We're still working on so it's a pretty good setup for us as far as growth goes.

John T. Hall: So it's a pretty good setup for us, as far as growth goes. Looking forward, we were cautious, as always, and we try to be prudent. But I think we've got a very good story to tell, and this intelligence applied launch event really put us into a conversation with so many of these firms that are trying to figure out how do they take advantage of AI in their specialized industry that's highly regulated? How do they do it?

John T. Hall: Looking forward we are.

John T. Hall: Cautious as always and we try to be prudent, but I think we've got a very good story to tell in this intelligent supplied launch event really put us into a conversation with so many of these firms that are trying to figure out how do they take advantage of AI in their specialized industry that is highly regulated.

John T. Hall: How do they do it and I think we brought a whole recipe for them to how to get their professionals empowered with applied AI in a way that actually works for their marketplace and we can continue to roll that out so.

John T. Hall: And I think we brought a whole recipe for them on how to get their professionals empowered with applied AI in a way that actually works for their marketplace. And we're going to continue to roll that out. So, we're encouraged. Okay, great. That's the total context there.

John T. Hall: We're encouraged.

John T. Hall: Yeah.

Speaker Change: Okay great.

Speaker Change: That's helpful context there.

Steven Lester Enders: And then, I guess, coming off of that event, where have you kind of seen the most, you know? Are there any particular products or solutions that are seeing kind of the most interest coming off of that customer event? And I think you mentioned you're beginning to see a groundswell of interest and, you know, an increase in conversation. So I guess in any way to kind of frame how you're kind of viewing the timeline or potential impact of those conversations changing.

John T. Hall: And then I guess coming off or coming off of that event.

Steven Lester Enders: Where do you kind of seen the most.

Steven Lester Enders: Are there any particular products or solutions that are seeing kind of the most interest coming off of.

Steven Lester Enders: That customer then.

Steven Lester Enders: I think you mentioned youre beginning to see a groundswell of.

Steven Lester Enders: Our interest and an increase in conversations.

Steven Lester Enders: Any way to kind of frame.

Steven Lester Enders: How you are kind of viewing the timeline or potential impact of of those conversations converting.

John T. Hall: Yeah, so one of the things that has really helped us, and this is not a surprise. The whole world has been talking about generative AI for a year or more, and everyone is super excited about it because they've gotten to try the consumer experiences. What we're really finding is that firms are looking for suppliers like us with a real knowledge of the workflows and the data and the users in these industries and in our industry solution strategy and our blueprints that we bring out for how do they practically take advantage of the generative AI opportunity in a trusted way that's consistent with their compliance and regulatory obligations.

Speaker Change: Yes, so one of the things that has really helped us and I think this is not a surprise, but the whole world has been talking about generative AI for year or more and everyone is super.

John T. Hall: Excited about it because they've gotten to try the consumer experiences what.

John T. Hall: What we're really finding is that the firms are looking to suppliers like us with a real knowledge of the workflows and the data and the users in these industries and in our industry solution strategy and our blueprints that we bring out for how do they practically take advantage.

John T. Hall: Of the generative AI opportunity.

John T. Hall: In a trusted way that's consistent with their <unk>.

John T. Hall: Compliance and regulatory obligations. This is kind of the trick here for this specialized industry is how do you bring a practical set of answers to people, where they can get real value out of the potential of this.

John T. Hall: This is kind of the trick here for this specialized industry: how do you bring a practical set of answers to people where they can get real value out of the potential of this in a trusted way? And so we've seen good response, very exciting conversations across the board, whether it's Intapp Assist for DeoCloud or Intapp Data Solution, which provides the foundation for a lot of the applied AI that we're rolling out, the Intapp Walls for Copilot Solution, and the Activator Experience for DeoCloud, which is helping firms with business development. These are all areas that we've had a very strong response.

John T. Hall: In a.

John T. Hall: Trusted way and.

John T. Hall: So we've seen good response very exciting conversations across the board whether it's in tap assist for deal cloud our data solution, which provides the foundation for a lot of the applied AI that we're rolling out the <unk> walls for co pilot solution. The activator experience video cloud, which is helping the firms with business development.

John T. Hall: These are all areas that we've had very strong response and in fact, we're having multiple conversations with with the same firm across different aspects of this and I think as we continue to roll out more of the applied AI capabilities across different aspects of the platform, you'll see it become a bigger and bigger.

John T. Hall: And in fact, we're having multiple conversations with the same firm across different aspects of the platform. And I think as we continue to roll out more of the applied AI capabilities across different aspects of the platform, you'll see it become a bigger and bigger central component of what these firms are trying to do. So, very exciting times for us to be bringing all this out. It was one of the biggest quarters we ever had from a release standpoint. I just can't say enough about what the team did to get these products into the marketplace. It was awesome.

John T. Hall: A component of what these firms are trying to do.

John T. Hall: So very exciting times for us to be bringing all this out.

John T. Hall: It was one of the biggest quarters, we ever had from a release standpoint, I just can't say enough about what the team did to get these products into the marketplace. It was awesome.

Steven Lester Enders: No, that's great to hear. So yeah, I appreciate you taking the question. Please stand by for the next question. The next question comes from Parker Lane at Stifle. Your line is open.

Speaker Change: No thats great to hear so I appreciate you.

Parker Lane: Taking the question.

Steven Lester Enders: Yeah.

Parker Lane: Please standby for the next question.

Steven Lester Enders: Okay.

Steven Lester Enders: The next question comes from Parker Lane of Stifel. Your line is open.

Parker Lane: Yeah, I guess thanks for taking the question here. Looking at the 100k ARR customer ads, compared to last year, it looks like you're tracking slightly ahead. John, is that reflective of you guys landing larger with, you know, either bigger clients or more product initially? Or is the majority of that continuing to come from, you know, long-standing customers who are just naturally expanding? Well, it's a little of both.

Parker Lane: Hi, guys. Thanks for taking the question here looking at the 100 K.

Parker Lane: Customer adds.

Parker Lane: Compared to last year, it looks like Youre tracking slightly ahead, John is that reflective of you guys landing larger.

Parker Lane: Either bigger clients or more product initially or is the majority of that continue to come from long standing customers, who are just naturally expanding with you.

John T. Hall: We are landing larger accounts. It's been a conscious strategy of ours to move into some of the larger enterprise class firms. And when you land even with one component of the platform there, they are bigger deals. They take a little bit longer to land, and they take a little bit longer to get up and running, but they're bigger deals.

Parker Lane: Well, it's a little of both we are landing larger accounts has been a conscious strategy of ours to move into some of the larger enterprise class firms and when you land even with one component of the platform. There. They are bigger deals they take a little bit longer to land or they take a little bit longer to get up and running.

John T. Hall: But they are bigger deals, but that number is also influenced by the fact that we have a lot of cross sell and up sell that happened. So we can land it under 100 K.

David H. Morton: But that number is also influenced by the fact that we have a lot of cross-sell and upsell that happens. So we can land at under 100k, expand within the account, and it'll move over that number, and you'll see that change too, so you get a little bit of both in that. Okay. And then Dave, one for you real quick.

John T. Hall: And.

John T. Hall: Expand within the account and it'll move over that number and Youll see that change too. So you get a little bit of both in that increase.

Parker Lane: Professional services, I know you guys are sort of de-emphasizing the component that you do of that. What's the ideal mix in your mind going forward over the sort of mid to long term of professional services revenue as a percentage of this total business? Thanks. Yeah, I would say over the longer term it should be in the range of 10% or less.

David H. Morton: Understood and then Dave one for you real quick.

Parker Lane: Professional services I know you guys are sort of deemphasizing the component that you do have that what's the ideal mix in your mind going forward over the sort of mid to long term professional services revenue as a percentage of the total business. Thanks.

David H. Morton: As we navigate that, you know, between here and the future, and obviously, facilitating our clients first, we'll, we'll continue to get in that zone. But that's kind of where we're at.

Parker Lane: Yeah, I would say over the longer term it should be in the range of 10% or less.

David H. Morton: As we navigate that between here and the future and obviously facilitating our clients first.

David H. Morton: Well, we'll continue to get in that zone, but that's kind of warmer headed.

Speaker Change: Understood I appreciate the feedback thanks guys.

Saket Kalia: Thanks, guys. Please stand by for the next question. The next question comes from Saket Kalia of Barclays. Your line is open.

Speaker Change: Please standby for the next question.

Saket Kalia: Okay.

Saket Kalia: The next question comes from socket Kalia Barclays. Your line is open.

Saket Kalia: Hi guys, thanks for taking my questions here. And apologies in advance. I joined late.

Saket Kalia: Hi, guys. Thanks for taking my questions here and I.

Saket Kalia: Apologize in advance I joined late so apologies. If these were these were asked.

John T. Hall: So apologies if these were the questions that were asked. John, maybe for you, great to see the net new ARR on cloud kind of bounce back compared to what we saw in Q2. I'm curious, as we sort of had 90 days to look back on Q2, I mean, I think we talked about maybe just the investment bank vertical being a little softer. Anything that you've kind of learned post-mortem on what maybe drove that, what I'll call a dip in sort of net new ARR and then sort of the commensurate recovery that we've seen. Thanks, Saket.

Saket Kalia: Yeah.

Saket Kalia: John maybe maybe for you.

John T. Hall: Great to see.

John T. Hall: New IRR on cloud kind of kind of bounce back compared to what we saw in Q2 I am curious as we sort of had 90 days to look back on Q2, I mean, I think we talked about maybe just the investment bank vertical being a little a little softer.

John T. Hall: Now that you've kind of learned postmortem on what maybe drove that what I'll call, a dip and sort of net new <unk> and then sort of the commensurate recovery that we've seen here in Q3.

John T. Hall: Thanks.

John T. Hall: You know, we talked about the fact that at the end of the year, people were doing some budget management and looking carefully, and what we saw is that some of the deals that we pushed came in. So we're very excited to see that. It was a good sign that people are committed to making this transition. And for large deals, particularly at the earlier point, as those become a bigger part of our story, they have a little bit more variability in their cycle, but when they come in, they can really help. So we're excited about the progress that we're making there, and I think it's a good sign, more generally. That's great!

John: We did talk about the fact that within a year people were doing some budget management and looking carefully and what we saw is that.

John T. Hall: Some of the deals that pushed came in.

John T. Hall: So we're very excited to see that it was a good sign that people are committed to making this transition and for large deals, particularly to the earlier point as those become a bigger part of our story they have a little bit more variability in their cycle, but when they come in they can really helps so we're excited about the progress that we're making there.

John T. Hall: I think it's a good sign more generally.

David H. Morton: That's great to hear. Dave, maybe for my follow-up for you, I know that we don't guide to ARR or net new ARR, but are there any sort of broad brushes that you'd give us here in Q4, whether it's, Page PAGE of NUMPAGES www.verbalink.com Page PAGE of NUMPAGES, Yeah, thanks, Saket. We're still looking at how we're monetizing a lot of our new product offerings, as John had narrated on. I think it was probably one of our biggest releases ever in the history of Intapp.

Speaker Change: That's great that's great to hear Dave maybe for my follow up for you.

Page: I know that we don't we don't guide to EMR or net new IRR, but.

Dave: Is there are there any sort of broad brushes that you would give us here in Q4, whether it's seasonality or product launches or any any way that you kind of have us think about sort of net new AOR here in the June quarter, just as we sort of fine tune our models.

Speaker Change: Yes, Thanks <unk>.

David H. Morton: Okay.

David H. Morton: We're.

Dave: Still looking at how we're monetizing a lot of our new product offerings as Jon It narrated on I think it was probably one of our biggest releases.

David H. Morton: And so there's a lot of opportunity there for us as we think about not only FQ4 but also as we enter FY25 and really galvanize the opportunity ahead of us, as well as the market and client needs. And so there's a lot of put and takes on that, but I think where you're seeing us come off is um, more of a succession and really embarking or taking kind of what we learned and see in that market and continuing to build ahead into this next uh 90 days, and so you know again we're going to continue to be very prudent, but then also you know drive towards the plan as we put forward here today. Do you think that makes sense?

David H. Morton: Ever.

Dave: And the history of <unk> and so there's a lot of opportunity there for us as we think about not only in Q4, but also as we enter FY 'twenty five and really.

David H. Morton: Galvanize the opportunity ahead of us as well as a market and client need and so.

David H. Morton: There's a lot of puts and takes to that I think.

David H. Morton: Where youre seeing us come off is.

David H. Morton: More of a succession.

David H. Morton: And really embarking are taking kind of what we learned and seeing that market and continue to build ahead.

David H. Morton: And to this end to this next 90 days and so.

David H. Morton: Again, we're going to continue to be very prudent.

David H. Morton: That also.

David H. Morton: Right towards the plan as we put forward here today.

Saket Kalia: Thanks very much, guys. One moment for the next question. The next question comes from Alex Sklar with Raymond James. Your line is open.

Speaker Change: Makes sense, thanks, very much guys.

Alexander James Sklar: One moment for the next question.

Saket Kalia: Yeah.

Saket Kalia: The next question comes from Alex Sklar with Raymond James Your line is open.

Alexander James Sklar: Great, thank you. John, first one for you, just on the TDI acquisition, bolstering the collaboration products. You had a nice, large customer win with collaboration this quarter. Can you tell us what this acquisition does in terms of maybe driving more penetration of your collaboration product broadly? Is that kind of the thought here?

Alexander James Sklar: Great. Thank you John first one for you just on the <unk> acquisition bolstering the collaboration product suite, yet you had a nice large customer win with collaboration this quarter can you just tell us what this acquisition does in terms of maybe driving more penetration of your collaboration product broadly is that.

Alexander James Sklar: The thought here and then Dave any color on the financial contribution in the fourth quarter kind of annual revenue from from Delphi or TDI going forward. Thanks.

John T. Hall: And then Dave, any color on the financial contribution in the fourth quarter, and the kind of annual revenue from Delphi or TDI going forward? Thanks. Thanks, Thomas. We're very excited about the team from TDI joining us. They have particular expertise in collaboration solutions for several of our end markets, including legal. They have been working with us in a partnership for a very long time, and their technology was actually developed to work with ours.

John: Thanks, Alex So we're very excited about the team from TDI joining us.

John T. Hall: They have particular expertise.

John T. Hall: In collaboration solutions for several of our end markets, including vehicle.

John T. Hall: They have been working with us in a partnership for a very long time.

John T. Hall: And their technology was actually developed to work with ours. So this is a great example.

John T. Hall: So this is a great example of using M&A selectively to really strategically expand some of the capabilities that our platform can bring to market in specific segments. So that's absolutely the goal that matches our Microsoft partnership as well. This is very much about helping our clients to get the most leverage out of their Microsoft 365 investment, which has just taken over the market, and to bring the features and capabilities that you need, as a professional services firm, or a law firm, or an investment bank, or a private capital firm, to really start to manage your knowledge and your content successfully in Microsoft 365 in a compliant and organized way. So, it's a very close acquisition that Okay, great. And then I'll guess one for you, Dave.

Dave: Of using M&A selectively to really strategically expand quickly some of the capabilities that our platform can bring to market in specific segments.

John T. Hall: So that's absolutely the.

John T. Hall: Goal that matches, our Microsoft partnership as well this is very much about helping our clients to get the most leverage out of their Microsoft 365 investment, which has just taken over the market and to bring the features and capabilities that you need.

John T. Hall: As a professional services firm.

John T. Hall: Or a law firm or.

John T. Hall: An investment bank or a private capital firm.

John T. Hall: To really start to manage your knowledge and your content successfully in Microsoft 365 in a compliant and organized way.

Speaker Change: So it's a very close.

John T. Hall:

John T. Hall: Acquisition that should really help us as we continue to grow that that component of our strategy.

John T. Hall: Okay.

Speaker Change: Great and then.

Speaker Change: I guess one for you Dave.

David H. Morton: It's just, it's been over, I think it's been just over a year now since you kind of updated that NRR range to 113 to 117. And as you look kind of over the next 12 months, or whatever timeframe you want to think about based on what's in the pipeline and others, is that still the right range to think about for NRR? Are there any other puts and takes to be aware of? Thanks. Sorry, I didn't unmute the button.

Speaker Change: Just it's been over I think it's just been just over a year now since you kind of updated that MLR range. So the 113 to $1 17, and as you look kind of over the next 12 months.

David H. Morton: Or whatever.

David H. Morton: Timeframe you want to think about based on what's on the pipeline is that still the right range to think about for <unk> or are there any other puts and takes to be aware of thanks.

David H. Morton: Alright.

Speaker Change: On mute button, but.

David H. Morton: You know, as we think about those puts and takes, the 113 to 117, you know, that's very much operationalized within the company. I think the math that we're quite candidly more focused on is the cloud NRR and continuing to drive that motion, because that's the real behavior set. And so, you know, as we'll move a lot of our on-prem to, or our, yeah, our on-prem to the cloud, that gives us an additional opportunity there as well as to facilitate broader portfolio conversations with our existing clients.

Speaker Change: As we think about the puts and takes.

David H. Morton: 113 to 117.

David H. Morton: That's very much operationalized within the company I think the math that way.

David H. Morton: Quite candidly more focused on is the cloud NR and continue to drive that motion because thats the real behavior set and so as we all know.

David H. Morton: A lot of our on Prem to our our yes, our on Prem to cloud that gives us an additional opportunity there as well as <unk>.

David H. Morton: Facilitate broader portfolio of conversations with our existing clients and so.

David H. Morton: And so You know, I still think there's an opportunity across all of our product suites that we offer to all of our clients, and nobody's really fully saturated. And so, we just view that kind of as the guiding post here for us as we transition more and more to the cloud. Okay, great color.

David H. Morton: I still think there's opportunity across all of our product suites that we offer to all of our clients and nobody's really fully saturated and so.

David H. Morton: We just view that kind of more of a.

David H. Morton: As as the guiding post here for us as we transition more and more to the cloud.

Alexander James Sklar: Thank you both. Congratulations on the quarter. Please stand by for the next question. And the next question is from Terry Tillman. With Truist Securities, your line is open. Hi, this is Dominique Manansala on behalf of Terry.

Speaker Change: Okay, great color. Thank you both congrats on the quarter.

Unknown Executive: Please standby for the next question.

Unknown Executive: And the next question is from Terry Tillman with tourists Securities. Your line is open.

Unknown Executive: Thanks for taking the question. So considering firms previously, so considering first previously voiced concerns with using Genii, especially those within highly regulated industries, I'm just wondering if you've heard any feedback on Waltz or Copilot calming these fears. And could you double-click on how customers have been using this product thus far and how it's affected that tone or that hesitation? Thanks, Dominique. Yes, we're very excited about this because of two reasons

Unknown Executive: Hi, This is Dominic Milan Shah on for Terry Thanks for taking the question.

Unknown Executive: So considering firms previously so.

Unknown Executive: First previously voiced concerns with using journey, especially those are in highly regulated industries I'm. Just wondering if you've heard any feedback on what's it called pilot, commonly spheres and could you just double click on how customers have been using this product, thus far and how it's affected that telenor that hesitation.

Dominique: Thanks, Dominic Yes, we're very excited about this because.

Dominique: Two reasons one.

John T. Hall: The issue of generative AI has everyone interested and excited; people really do believe in these end markets that the generative AI era is going to transform the way that professionals do their work. People aren't really debating whether that's going to happen. The big discussion is how and in what areas.

Speaker Change: The issue of.

John T. Hall: Generative AI has everyone interested and excited people really do believe in these end markets that the generative AI era is going to transform the way that the professionals.

John T. Hall: Execute their work.

John T. Hall: Arent really debating whether thats going to happen the big discussion is how.

John T. Hall: And to your point, what kind of governance and Information Security and compliance capabilities are the new systems going to need in order to enable people to successfully use this? And so you're hearing a lot of themes from us that are very specific and steeped in our history of compliance and information governance specifically for these professional firms. So the issue of provenance, you heard me talk about in the Delphi.

John T. Hall: And in what areas.

John T. Hall: To your point, what kind of governance.

John T. Hall: And information security and.

John T. Hall: Compliance capabilities are the new system is going to need to have in order to enable people to successfully use this and so youre hearing a lot of themes from us.

John T. Hall: That are very specific and steeped in our history of compliance information governance, specifically for these professional firms. So the issue of provenance you heard me talk about in the Delphi Act.

John T. Hall: Acquisition Story, and then Walls, is a well-established product line for us. We really defined this category for these end markets where they're looking for semantically based information governance that's very distinct from the traditional, You know, information security type of solutions that you might see in the horizontal markets. These professional firms really need a system that understands what an information barrier is, the kinds of semantics, and taxonomy that you need to really enforce those kinds of walls, and we have a great portfolio of reference customers that have been working with us in this area for a long time.

John T. Hall: Acquisition story.

John T. Hall: And then walls.

John T. Hall: Is a well established product line for us we really defined this category.

John T. Hall: For these end markets, where theyre looking for semantically based information governance, that's very distinct from the traditional.

John T. Hall: Yeah.

John T. Hall: Information security type of solutions that you might see in the horizontal markets. These professional firms really need.

John T. Hall: Our system that understands what our information barrier is the kinds of semantic.

John T. Hall: Taxonomy that you need to really.

John T. Hall: Enforce those kinds of walls and we have a great.

John T. Hall: So it was very natural for them to see us as the people that could bring a solution for the generative AI era and how we could help them roll out Microsoft Copilot and other generative AI solutions successfully. So we've had very positive conversations across the board, and we have had firms start to say, you know, we don't think that we can roll out co-piloting without having a solution like this, given the regulatory obligations that we live within. It's not a shortcoming of the excellent copilot technology.

John T. Hall: Portfolio of reference customers that have been working with us in this area for a long time. So it was very natural for them.

John T. Hall: To see us as the people that can bring a solution for the generative AI here and how we can help them rollout.

John T. Hall: Microsoft Copilot and other generative AI solution successfully.

John T. Hall: So we've had very positive conversations across the board and we have had firm start to say, we don't think.

John T. Hall: That we can rollout co pilots.

John T. Hall: Without having a solution like this given the regulatory obligations that we live with that it's not a shortcoming of the excellent co product technology. Its just that if you look at the way the firms do their information governance. They have to put something like this in place to be able to take advantage of co product capabilities. So.

John T. Hall: It's just that if you look at the way firms do their information governance, they have to put something like this in place to be able to take advantage of copilot capability. So we're excited about where this can go. Thank you.

John T. Hall: We're excited about where this can go.

John T. Hall: Okay.

Speaker Change: Great. Thank you.

John T. Hall: Yeah.

Matthew David VanVliet: Please stand by for the next question. The next question comes from Matt VanVliet at BTIG. Your line is open. Hey, good afternoon.

John T. Hall: Please standby for the next question.

Matthew David VanVliet: Okay.

Matthew David VanVliet: The.

Matthew David VanVliet: Question comes from Matt Van Blip at BPI. Your line is open.

Matthew David VanVliet: Thanks for taking the question. Obviously, the applied AI strategy was just launched recently, but I'm curious how you're planning to fully monetize sort of a lot of these product releases. You know, are you anticipating having sort of standalone SKUs that are premium modules to what you're offering now? Or is this really about enhancing the value of the product out there and being able to sell more product to existing customers? And sort of wrapped within that, should we think about this, being able to push that cloud NRR number higher throughout this year as existing customers take on more and more of the applied AI? Thanks, Matt.

Matthew David VanVliet: Hey, good afternoon, thanks for taking the question.

Matthew David VanVliet: Obviously, the applied AI strategy was just launched recently, but curious on how you are planning to fully monetize sort of a lot of these product releases.

Speaker Change: Are you.

Matthew David VanVliet: Are you anticipating having sort of standalone skus that are premium modules to what you're offering now or is this really about enhancing the value of the product out there being able to sell more product to existing customers.

Matthew David VanVliet: And sort of wrapped within that should we think about this being able to push that cloud NRI number higher throughout this year as existing customers take on more and more of the applied AI.

Matthew David VanVliet: Yeah.

Speaker Change: Thanks, Matt so.

John T. Hall: So, as far as monetization goes, it's a mix. So we have some of the capabilities that we announced that we are including because we want to help firms take advantage of applied AI and use it inside our system. We think it's a differentiator.

Speaker Change: As far as monetization goes it's a mix. So we have some of the capabilities that we announced we are including because we want to help firms take advantage.

John T. Hall: Applied AI and use it inside our system, we think it's a differentiator we think we want to be the company that is the vertical.

Speaker Change: Leader for them and we also have a strategic interest, particularly with things like data and getting more data into their environment that we can run the AI on and then bring in third party additional data to help augment the.

John T. Hall: We think we want to be the company that is the vertical AI leader for them. And we also have a strategic interest, particularly with things like Intapp data, in getting more data into their environment that we can run the AI on. And then bring in additional third-party data to help augment the information that the firms are using AI to analyze and work with. So there's a component that's included. But in addition, we are creating standalone SKUs for several of these components, and it's early.

John T. Hall: Uh huh.

John T. Hall: Information of the firms are using AI to two.

John T. Hall: You know, we just announced this in February, and we've been working with customers early on. We've got a ton of interest. And we announced some of the wins, not all of them, but we announced some of the wins on the call to help everybody see, look, this is real.

John T. Hall: To analyze and work with so there is a component that's included but in addition, we absolutely are creating standalone skus for several of these components and it's early.

John T. Hall: We just announced this in February and we've been working with customers early on we've got a ton of interest.

John T. Hall: And we announced some of the wins not all of them, but we announced some of the wins on the call to help see help everybody see look this is real at the same time, we're going to be prudent about how fast. This goes we need to sort of understand exactly what the rollout experiences like we want to make sure that we continue.

John T. Hall: At the same time, we're going to be prudent about how fast this goes. We need to sort of understand exactly what the rollout experience is like. We want to make sure that we continue our tradition of doing a great job with that. We get the right clients with the right references working across the market. So it's a product rollout like any other that takes the normal kind of time to get folks up and running. But I think, generally speaking, it's a great portfolio of new launches for us and should support us as we grow. All right, very helpful.

John T. Hall: Our tradition of doing a great job with that we get the right clients with the right references working across the market. So it's a product rollout like any other that takes the normal kind of.

John T. Hall: Time to get folks up and running but I think generally speaking it's a it's a great portfolio of new launches for us that should support us as we grow.

Matthew David VanVliet: And then I guess, as you're looking at kind of the year plus ahead, as we go into the fourth quarter here planning for fiscal 25, how should we think about headcount growth? And maybe more specifically headcount growth in the go-to-market organization? Do you need to add, you know, overlay teams or any kind of sales specialist around the applied AI feature set? So how should we think about sort of go-to-market headcount more broadly?

John T. Hall: Okay.

Speaker Change: Very helpful. And then I guess as you're looking at kind of the year plus ahead as we go into the fourth quarter here planning for fiscal 'twenty five how should we think about head count growth and maybe more specifically head count growth in the go to market organization do you need to add overlay teams or any kind of sales specialists around the applied.

Matthew David VanVliet: AI feature set.

Matthew David VanVliet: So how should we think about sort of go to market head count more broadly.

Matthew David VanVliet: Yeah.

Matthew David VanVliet: Yeah, I think we'll continue to be very thoughtful about our productivity, our cost of acquisition. You know, we're not really looking to add any more overlays into the support of applied AI per se. You know, we've got really good coverage today across each of the verticals that we serve, as well as the naming conventions of how we look at whether it be named accounts and or the long tail of opportunities.

Matthew David VanVliet: Okay.

Matthew David VanVliet: Yes.

Matthew David VanVliet: I think we will continue to be very thoughtful about our productivity our cost of acquisition.

Matthew David VanVliet: We're not really looking to add any more overlays into.

Matthew David VanVliet: To support up.

Matthew David VanVliet: Applied AI per se.

Matthew David VanVliet: We've got really good coverage today across each of the verticals that we serve as well as.

Matthew David VanVliet: The naming convention of how we look at whether it be named accounts <unk>.

Matthew David VanVliet: And so my point is, yes, there'll be some investments as we continue to invest for growth as we have this year, but it's not going to be out in front of revenue or any other metric. Great, thank you.

Matthew David VanVliet: The long tail of opportunities and so my point being is yes, there'll be some investments as we continue to invest for growth as we have this year, but it's not going to.

Matthew David VanVliet: Be out in front of.

Matthew David VanVliet: Revenue or any other metric.

Speaker Change: Great. Thank you.

Speaker Change: One moment for the next question.

Matthew David VanVliet: Okay.

Brian Jeffrey Schwartz: One moment for the next question. The next question comes from Brian Schwartz with Oppenheimer and Company. Your line is open. Hey, this is Ari Friedman sitting in for Brian Schwartz. Thanks for taking my question. I was wondering if you could kind of like double click on the AI and monetization. I was wondering, like, is the budget for like the AICs and AI type of products a net new budget like that being created internally at these companies? Or do you have to like displace some sort of other IT budget or software budget in order to sell it?

Matthew David VanVliet: The next question comes from Brian Schwartz with Oppenheimer <unk> Company. Your line is open.

John T. Hall: Thanks. Thanks, Ari. I think the answer is both of those things.

Brian Jeffrey Schwartz: Hey, this is Ari Friedman sitting in for Brian Schwartz. Thanks for taking my question.

John T. Hall: I was wondering if you could kind of like Doubleclick, Unlike the AI and <unk>.

Ari Friedman: Monetization I was wondering like is the budget for like <unk> and AI as head of products net new budget like that is being created internally at these companies or do you have to displace some sort of other EBIT it or software budget in order to call. It.

Speaker Change: Thanks Ari.

John T. Hall: I think the answer is both of those things there are firms.

John T. Hall: There are firms who, through their innovation initiatives, have decided that the innovation they want to invest in is AI-based, which you would expect, but they absolutely do have AI budgets, and many others. And that's exciting, as well. I think AI capabilities are increasingly key differentiators across all of the traditional business application categories in these markets that we serve, and others have served for a long time. And so the ability to bring a coherent, integrated industry-specific recipe for applied AI, and generative AI to these firms, I think is increasingly going to be a critical differentiator in win rates and trust of the firms that they're really buying into a modern environment.

John T. Hall: Who through their innovation initiatives have decided that the innovation they want to invest in.

John T. Hall: Is AI base, which you would expect but they absolutely do have.

John T. Hall: Budgets in many of the firms and Thats exciting.

John T. Hall: As well.

John T. Hall: I think the AI capabilities are increasingly key differentiators across all of the traditional business application categories. In these markets that we serve and others have served for a long time and so the ability to bring.

John T. Hall: Coherent Inc.

John T. Hall: Integrated.

John T. Hall: Industry specific recipe for applied AI generative AI to these firms I think is increasingly going to be a critical differentiator on win rates and trust of the firms. They are really buying into a modern environment. So we're committed to both.

John T. Hall: So we're committed to both. We want to help the firms who are really trying to push AI into new areas and discover the best application of this new potential technology for specific industry solutions, blueprints, and workflows for professionals in a way that other companies, we think, don't have the industry expertise to really do for this market as well. And in addition, we want to make sure that our whole platform is market-leading and competitive because we really understand how to use applied AI to maintain our competitive advantage, generally, and continue to be innovators in the space.

John T. Hall: We want to go help the firms who are really trying to push.

John T. Hall: AI into new areas and discover the best applications.

John T. Hall: This new potential technology for the specific industry solutions blueprints workflows for the professionals in a way that other companies. We think don't have the industry expertise to really do for this market as well.

John T. Hall: In addition, we want to make sure that our whole platform is.

John T. Hall: Market, leading and competitive because we really understand how to use apply to AIG to maintain our competitive advantage generally and continue to be the innovators in this space. So we're going to do both.

John T. Hall: So we're going to do both. Thank you. This concludes our question and answer session. I would now like to turn it over to John Hall for closing remarks. OK. Well, thank you, everyone. We appreciate your attention and your questions. We have a great Q3 behind us. We're very proud of our accomplishments, and we're excited about what's coming next. Thank you for your time, and we'll look forward to talking to you all again next quarter. Thank you again for participating in today's conference. This does conclude the program. You may now disconnect.

John T. Hall: Thank you.

John T. Hall: This concludes our question and answer session I would now like to turn it over to John Hall for closing remarks.

John T. Hall: Okay.

John T. Hall: Well. Thank you everyone. We appreciate your attention and your questions.

John T. Hall: We have a great Q3 behind us.

John T. Hall: We're very proud of our accomplishments and we're excited about what's coming next thank you for your time and we'll look forward to talking to you all again next quarter.

John T. Hall: Thank you again for your participation in today's conference. This does conclude the program you may now disconnect.