Steve Anderson

Steve Anderson asked how deals coming through the Microsoft partnership differ from historical deals, specifically if they create new opportunities, are larger, or close faster, and how Microsoft changes these dynamics. He also inquired why the Q1 operating margin beat was not flowing through much to the full-year guide, asking about timing dynamics or pushed-out investments.

Answer

John Hall (Chairman and CEO, Intapp) explained that the Microsoft partnership leverages their strong relationships with firms and IT, particularly regarding Azure commitments. Benefits include Intapp offerings on Azure Marketplace (burning down minimum spend), Microsoft providing Azure credit upfront, competitive wins due to perceived integration, and quota relief for Microsoft's field sellers, leading to leads, endorsements, and improved funnel size, speed, deal size, and win rate. David Morton (CFO, Intapp) stated that the company continues to invest in product innovation and go-to-market, with Q1 being front-end loaded with specific marketing events, and will continue to invest in demonstrated motions.

Steve Anderson asked how deals coming through the Microsoft partnership differ, specifically if they create new opportunities, are larger, or close faster. He also questioned why the Q1 operating margin beat was not fully flowing through to the full-year guidance.

Answer

CEO John Hall explained that the Microsoft partnership leverages their strong client relationships and Azure commitment. Benefits include Intapp offerings on the Azure Marketplace (helping clients burn down minimum Azure contract spend), Azure credit incentives, competitive wins due to integration, and quota relief for Microsoft field sellers. This collaboration influences the funnel in terms of size, speed, deal size, and win rate. CFO David Morton stated that the operating margin guidance reflects continued investment in product innovation and go-to-market strategies, including front-end loaded marketing events.