Intapp stock has shown strength since rocketing after the software company's better-than-expected fiscal second-quarter earnings report last month.
On Feb. 6, Intapp reported a surprise profit on higher sales than forecast. The Palo Alto, Calif.-based company earned an adjusted 3 cents a share on sales of $84.7 million in the quarter ended Dec. 31. Analysts polled by FactSet had predicted a loss of 3 cents a share on sales of $80.5 million. In the year-earlier period, Intapp broke even on sales of $64.7 million.
Intapp provides cloud-based software applications for professional and financial services firms worldwide. It serves private capital, investment banking, legal, accounting, and consulting firms. Its software helps them meet client, investor and regulatory requirements.
"Intapp targets the underserved and overlooked, but actually very large, $3 trillion industry of professional and financial services firms," Chief Executive John Hall said on a Feb. 6 conference call with analysts. Intapp's software "has been designed specifically for the unique operating and compliance needs of these firms," he said.
Microsoft Alliance Lifting Intapp Stock
Intapp is helping the financial deal-making, legal and advisory industry transition their operations to the internet cloud, Hall said.
The company has gotten a boost from its strategic partnership with software giant Microsoft, which it announced in February 2022.
Intapp has posted two consecutive quarters of accelerating sales and earnings growth.
For the current quarter, Intapp predicted it will break even on sales of $87.5 million, based on the midpoint of its outlook.
For the full fiscal year, it guided to adjusted earnings of 4 cents a share on sales of $342.5 million. In its last fiscal year, it lost 12 cents a share on sales of $272 million.
Hits Record High After Earnings
Intapp stock hit a record high 42.11 intraday on Wednesday before pulling back in a broad market sell-off on Thursday. It went public in June 2021 with its IPO priced at $26 a share.
On Friday, it fell 3.8% to 38.73 amid a broad market sell-off.
Intapp stock is on the IBD Tech Leaders list. It has an excellent IBD Composite Rating of 98 out of 99. Intapp ranks first out of 39 stocks in IBD's Computer Software-Financial industry group, according to IBD Stock Checkup.
Insulated From Macroeconomic Headwinds
Oppenheimer analyst Brian Schwartz reiterated his outperform rating on INTA stock after the company's earnings news.
"Intapp is a play on the current rapid shift to cloud computing and digitizing workflows in verticals," Schwartz said in a note to clients. "It has developed a robust set of purpose-built solutions and shown it can leverage the same software across multiple categories."
Stifel analyst J. Parker Lane kept his buy rating on Intapp stock after the company's quarterly report.
In a note to clients, Lane said Intapp appears relatively insulated from macroeconomic headwinds impacting other software stocks.
"Unlike many software peers, the company stated that demand has remained strong across both professional and financial services, and there continue to be no signs of deal cycle elongation," Lane said.
He added, "We continue to believe the company's end markets provide a greater degree of stability in the face of a tougher macro, and the ongoing shift to the cloud provides a significant opportunity for new customer acquisition and on-premise migration."
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