Intapp (INTA) and Alphatec (ATEC) Q1 Recap
Shares of Intapp (INTA) should open higher today after the company beat Q3 fiscal 2024 expectations after the close yesterday. Revenue grew 20.2% to $110.6 million, beating by $2.4 million (2.3%), while EPS of $0.14 was up from a penny in the year-ago quarter and beat by $0.07. Management also raised guidance for the full year to revenue in a range of $427 - $428 million (vs. $425 million consensus) and EPS to $0.42 to $0.44 (vs. $0.34 consensus).
Management said its partnerships with Microsoft (MSFT) and KPMG are becoming more significant, though both are still in early stages. And that the buildout of generative and applied AI functionality across the product lineup is driving significant interest from clients as they look to find practical ways to use the technology. Overall, it was a good quarter and with Cloud ARR growing 33% and Cloud NRR at 120% investors should be happy. Look for a decent day for INTA and, hopefully, some follow through over the next week or so. Upgrading to buy, just be a little careful if shares really take off today. BUY
Alphatec (ATEC) is likely to open lower after the company delivered a mixed Q1 with revenue beating but EPS missing. Revenue was up 26.5% to $138 million (beating by $3.9 million) while EPS of -$0.18 missed by $0.03. Surgical revenue grew by 30% (and up 6% per case) while surgical volume was up 23%. The company continues to see a significant opportunity from a market that is either “apathetic or disrupted” so they deployed $60 million to grow the sales team.
There was a lot of talk on the conference call about Alphatec’s technology and procedures. One highlight from that included a planned EOS Insight (software) launch in Q2. Management also talked about international expansion, which will take some time and means moving on to Japan next. Full-year revenue guidance was bumped up by $6 million to $601 million. We’re going to keep ATEC at hold today and see how the stock reacts to this report. HOLD
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