Saket Kalia: Got it. Got it. That makes a lot of sense. Dave, maybe for you. I think maybe this is just to the earlier question, just on Q4 and Q1. I think one of the questions kind of coming out of Q4, at least that I got was, was just around the lower net new ARR than some were maybe expecting, right, given the seasonally strong Q4. And clearly, you’ve accelerated the cloud ARR growth here in Q1, so well done. But I wonder if now sort of 90 days later, if there was any sort of deal timing consideration here, that might help explain sort of the ARR growth between Q4 and Q1? There’s always kind of deal slippage for any enterprise software business, right? But I’m just kind of curious, as you’ve had sort of more time to look at it, if that’s something to consider here, as we sort of look at sort of the Q4 performance and then the Q1 acceleration in ARR?
John Hall: I wouldn’t say there’s any new news there. I do think if we go back and digest that Q4, once again, comparing the FY ’23 to FY ’22, I think we forget about how tough some of those comps were for FY ’22. And there were some material deals that fell into that timeframe. And so when you’re looking at it from a year-over-year perspective, I think there was a perceived decel. As we think about go forward, and obviously, there’s going to be a lot of numbers, some of that noise gets zeroed out. And so I think we’re on the right rate of pace, and we like what we see in the back half of this year.
Operator: And our next question coming from the line of Parker Lane with Stifel.
Parker Lane: John, I’m curious if you can give us a sense of the contribution that’s coming from the channel today? I know those partnerships with KPMG and Microsoft were only formed over the last year plus. And where do you expect that could trend with these changes that Microsoft has made on the co-selling side?
John Hall: Honestly, it’s still early in our relationship. We’re getting to know the folks in the Microsoft deal. We’re getting to do some joint selling deals with them in a variety of regions, but we have not done it in all the spaces of our territories that we could. So a lot of it is getting to know each of the people out there and getting the relationship formed between our sellers and theirs. And I think we have made excellent progress, but there’s more opportunity in front of us to go do that. So I think there’s space in front of us for this to go. Similarly with KPMG, we’ve had some very exciting large wins with KPMG. They’ve built up more of a practice around Intapp’s platform and technology. They’ve helped us win some of the large investment banks and deploy there, which is a great opportunity space for us.
But similarly, it’s still early, and they’re just ramping up. So I think the majority of the opportunities is ahead of us for really getting to leverage on the channel.
Parker Lane: Got it. Okay. And then on the AI — applied AI development you talked about there, when I look at that, should we think about that as something that’s only available to your cloud-based customers? And is that enough of an incentive, I guess, down the road for people to actually switch, if you’re only providing some of that functionality as part of the cloud offering?
John Hall: Yes, that’s the case. The AI capabilities are available in our cloud. And as you know, we’re not doing meaningful R&D on our on-premise’s software anymore. We’re supporting the clients that we have that have been with us for a long time. We’re grateful and most of them have already talked to us about migrating to the cloud. It’s more practical question about what the right timing is for them within their overall IT project portfolio. As we shared in some of the previous calls, a very large percentage of our clients are now working with us in the cloud. So most of our clients do something that way already, and it’s just the remaining portion of their overall business that they need to migrate. But to your point about AI, I do think that absolutely is an incentive for people to move.
It’s not the only reason. Some people want to go to the cloud because they want to go to the cloud. That’s the modern model and COVID really helped them understand they need to get off of their local on-premises systems into a cloud-based system. And there’s a lot of benefits on that alone. But AI is a further incentive that I think is really helping people to make that decision.
Operator: And our next question coming from the line of Matt VanVliet with BTIG.
Matt VanVliet: John, you mentioned a couple of large investment banks that you’ve won deals with. Curious on how that corner of the financial services market has been trending, what the pipeline maybe looks like, given the lack of capital markets activity is straining some of the revenue there, but just curious on how much demand there is for modernizing around your solution?
John Hall: Matt, thanks. So the large banks — the midsized and large banks have been a great market for us. We’re early. It’s one of the more recent additions, particularly at the large end that we’ve been able to get some real wins in. I think there’s a couple of opportunities for us. One, these are large diversified banks, and they’re bringing us in to replace often in-house built custom applications that we’ve seen many times across the market, but each of them has built their own. And they’re really moving to a more standardized IT architecture, where they want to work with the supplier like us, if we have a purpose-built solution that can replace those traditionally in-house built and maintained systems. So it’s just a natural division of labor, economic rationality argument to work with a partner like us, coming from the IT departments.
