Intapp, Inc. (NASDAQ:INTA) Released Earnings Last Week And Analysts Lifted Their Price Target To US$26.75

Intapp, Inc. (NASDAQ:INTA) investors will be delighted, with the company turning in some strong numbers with its latest results. Results overall were credible, with revenues arriving 4.0% better than analyst forecasts at US$80m. Higher revenues also resulted in lower statutory losses, which were US$0.32 per share, some 4.0% smaller than the analysts expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Intapp

After the latest results, the eight analysts covering Intapp are now predicting revenues of US$334.3m in 2023. If met, this would reflect a notable 16% improvement in sales compared to the last 12 months. Losses are supposed to decline, shrinking 12% from last year to US$1.32. Before this latest report, the consensus had been expecting revenues of US$326.6m and US$1.33 per share in losses.

The analysts increased their price target 9.7% to US$26.75, perhaps signalling that higher revenues are a strong leading indicator for Intapp's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Intapp analyst has a price target of US$30.00 per share, while the most pessimistic values it at US$23.00. This is a very narrow spread of estimates, implying either that Intapp is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Intapp's revenue growth is expected to slow, with the forecast 21% annualised growth rate until the end of 2023 being well below the historical 27% growth over the last year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.4% annually. So it's pretty clear that, while Intapp's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Intapp analysts - going out to 2025, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Intapp that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.