John Hall: Yes. Thanks Connor. One of the things that we think is really exciting about our growth opportunity is that we have over the years landed a position in so many of the very largest professional and financial services firm. So the hard work of winning the relationship has happened and now we have the opportunity to expand within them. And you’re right, we’ve talked about the fact that just in the top 100 clients that we already have today, if they bought everything that we make, it’s $1 billion of ARR. So, there’s a whole growth story just from cross-sell and upsell within the client relationships that we have. What you are seeing, and you can see a little bit of this in the $1 million-plus clients that we gave the number four and the a $100,000 clients that we gave the number for, there’s some good upsell and cross-sell happening in those accounts.
And some of those upsells and cross-sells because the firms are so fast are quite large in and of themselves. So I think the emphasis to your question about go to market, I think we are looking carefully at strategic accounts and putting together in fiscal ‘24’, a little bit of a larger group to make sure that we’re focused on capitalizing on the opportunity to go win and cross sell inside these, these large firms. So it’s a good instinct. That’s definitely part of our growth strategy.
Connor Passarella: Got it. That’s great to hear. Maybe just a follow-up, Dave, welcome aboard. You came from the outside. Just curious what you think might be the most underappreciated about the company at this point by investors. And then going forward, maybe what’s your thought on the balance of top line growth and profit expansion? Or maybe just said another way, should we continue to — or should we expect steady margin expansion over time? Thank you.
David H. Morton: So, a couple things. And I could probably go on for the rest of this call just as to the untapped potential here at Intapp. But when I think about not only the product set, not only the end resilient clients that we’re selling into, not only as we’re at a very infancy of this nature as well as, as you think about how some of these larger expand opportunities can continue, and even if you look at that $1 million and above cohort and then those shortly behind that that we’re looking to expand, it provides a lot of strong opportunity heading into not only ‘24, but beyond. As I think about the model itself, there could be some leverage going forward. And obviously, we want to continue to be very, very prudent about our investments and making sure we’re seeing the right return, notwithstanding the backdrop. And so, we’re very cautious about that. But then we also get excited about the opportunity as we think about going the go-forward plan.
Operator: Our next question comes from the line of Parker Lane with Stifel.
Matthew Kikkert: This is Matthew Kikkert on for Parker. Thanks for taking my questions. And let me first say congrats to Steve, and welcome David to the team. I’m wondering, now that a meaningful share of your ARR is coming from cloud solutions, how are you thinking about the pricing on those cloud solutions versus on-prem? Do you anticipate some of those price actions might play a meaningful role in the growth story the next few years?
John Hall: Thanks, Matthew. I think this is a topic that we’ve discussed with you all, and there’s definitely opportunity there. One of the things that we’re finding is that the applied AI innovations that we’re bringing out are very well received and have strong value with them. And so, one of the things we’re excited about as we bring more and more together, and we talked a little bit about some of the Microsoft connections that we had come live this past quarter or two quarters, is that we do have a real opportunity as we move people to the cloud, not just to move them there, but to help them achieve higher value from what we’re delivering. And a lot of that is in the applied AI technologies that are embedded in the platform and more and more come out each quarter.
So, I think we haven’t officially announced anything, but our experience has been that people do appreciate the value that we’re bringing to them, and we’re going to continue to focus on that.
Matthew Kikkert: Okay. Got it. And then, you mentioned the acquisition of Paragon Data Labs in your intro. I wonder if you could give an update on simply the integration process of that company. Is it a part of your go-to-market strategy right now? And then secondly, how widely adopted do you think that your employee compliance tools will be over time? Is it every customer could potentially buy those solutions or just a subset?
John Hall: Yes. We’re very excited about the progress that we’ve made with the Paragon Data Labs acquisition. It was just a few months ago that we did that. And the team that’s come over, it’s just a fantastic group of people that really have mastered this subject matter and the issues of employee compliance across all the types of firms that we sell to. And, yes, it absolutely is part of our go-to-market today, and we’ve had very encouraging progress already in wins with that product even in areas that weren’t necessarily part of our original business plan. For example, we’re making great progress in the accounting industry. And this is before this PCAOB policy actually becomes real. It’s just a proposal, right now.
But a lot of the interest that we are getting, to your question, is from the entire community of firms that we sell to. Some of them have a little bit of a different regulatory requirement today. Some of them are looking more from a risk management perspective. But all of them increasingly realize this is a key category for them. So, this general area of compliance for this highly regulated set of industries is something that I think is a cornerstone of our whole strategy. And the more that we experience in the marketplace, more we realize this is a fundamental differentiator for us that we have been doing for a long, long time. And then the employee compliance offering today is an expansion of that and enhancement of that gives us a little bit richer story to tell on something that has a lot of strength for the business.
Matthew Kikkert: Terrific. Thank you very much.
Operator: Our next question comes from the line of Brian Schwartz with Oppenheimer. Your line is open.
Brian Schwartz: Yes. Hi. Thanks for taking my questions today. John, I wanted to follow-up. I was going to ask if you had made any changes to the sales organization, as we start a new fiscal year. And then you did answered one of the questions that it does look like you are making an investment on the inside sales force. Can you maybe provide a little more color in terms of how big of an investment that’s going to be in terms of increasing the capacity, and maybe your thoughts in terms of the duration of the increase in the capacity of the organization?
John Hall: Thanks, Brian. We are focused as we always have been on working with the clients that we have to cross sell and simultaneously winning new clients. So, the go-to-market organization evolves each year as we put the business plan together. For ‘24, one of the specific objectives that we have and one of the choices that we made in increasing the investment in the sales and go-to-market machine a little bit more generally is what we are calling strategic accounts, the large enterprise class firms where there is so much upsell and cross sell potential where just the upsell and cross-sell, can be measured in millions of dollars in some of these accounts. So, we are excited about the opportunity there. I am also very excited about some of the talent that has joined the company in the past year or so, bringing incredible history selling to this class of firm from some of our friends in the software industry and from some of the firms themselves, real experts who know how to do this, who are seeing the success that we are having, and who are inspired by the vision that have for digital transformation inside these terms and want to represent that.
So, it’s just been a very positive year in terms of bringing talent and a little bit of organization into that. In terms of how much are we putting there relatively speaking, I don’t know that we are talking specifically about that. But I think you will see, particularly, I guess, some of the aiming about the firms coming on more and more of these large account stories coming in. And I think that’s a real opportunity for the Company for all sorts of reasons.
