Brian Schwartz: Thanks, John. And then, one quick follow-up for Dave. Welcome to the call. I have been noticing that the delta between the Cloud ARR growth and the SaaS and support revenue growth has been narrowing here, for almost two years now, which is a good trend. Is there any reason that that trend should not continue as we kind of think about our forecast of the business in the future? Thanks.
David Morton : Good question, Brian. And I’m just thinking out loud here, as we cogitate our ‘24 plan and the implied guide, we definitely have, SaaS is going to [Technical Difficulty] grow and then obviously the support will have a tail, kind of a flat line, right? It’s not going to grow at the same rate or pace. And so, from there you can kind of see the implied linear where those two are starting to have a crossover effect. Does that make sense, Brian?
Brian Schwartz: Yes. That’s helpful, Dave. And congratulations on real nice quarter.
Operator: Our next question comes from the line of Matt Vanvliet with BTIG. Your line is open.
Matt Vanvliet: Yes. Thanks for taking the question. And welcome, David. Congrats, Steve. I guess, as you look at some of the recent success you’ve had in the financial services world, as that’s sort of a newer area, thinking about not only investments in go to market, is there an expectation for sort of an outsize portion of those investments you’re talking about coming in this area, or how do you feel about your market coverage in general? And then kind of a part B to that is, you’ve mentioned before that sometimes as things slow down somewhat it gives some of these organizations an opportunity [Technical Difficulty] in new technology rather than just trying to keep their head above water. So, curious how the current market environment, especially with the slower capital markets activity may or may not be impacting overall deal cycles.
John Hall: Thanks Matt. First of all, you’re right. We have talked about the fact that we’ve had a lot of progress in the financial services target industry, also in the professional services target industry. Both grow for us, but the financial services group is newer and starting from a smaller base and it has really been growing. We’ve also had a lot of success, we’ve talked about this in both the private capital markets firms, private capital asset managers of various strategies, as well as the investment banks and the other advisory firms. And we’ve even talked about some of the other segments like the pension funds. I talked about PSP in the prepared remarks. So there’s a lot of excitement about the range of classes of firms that are picking up, our DealCloud solution, our Collaboration & Content solution, our compliance solution, so really across the board.
I think we are going to feed that because it’s such a growth industry itself. Regardless of the cycle of the economy, the general macro trend is a shift of investment dollars from the traditional public markets more and more to these private capital models. And it’s a growth industry just structurally. And I think we’ve really benefited from that and are continuing to benefit from that as the company scales. So, we’re going to support that and make sure that we take advantage of the opportunity there. The second question is you asked about how do we — how are we impacted by the market generally? I think the one thing that we’ve said is that if there’s a part of our target market that might be more sensitive to the capital markets, it’s the investment banking group.
The rest of the industries that we sell, even the private capital firms themselves, have been remarkably stable and growing and growing their spend for digital transformation and for cloud and for applied AI because they’re trying to modernize themselves. They’re trying to do that internationally. So, there’s a lot of opportunity for us that has fed our growth through some sort of uncertain times over the past couple years. And the investment banks, interestingly, are some of our largest deals that we’ve talked about here in this year’s report. So, we are making very good progress there, and I think they’re kind of coming from behind. There’s an opportunity for them to modernize with technology that’s purpose built for their industry for the first time.
So, there’s a lot of tailwinds there. But we have been kind of transparent about that. If there’s a market signal that we experience one day, it’s probably investment banking.
Operator: Our next question comes from the line of Saket Kalia, with Barclays. Your line is open.
Saket Kalia: John, maybe first for you, a lot of helpful deal examples that you gave on the call and called out some displacements of either in-house or horizontal applications. I was wondering if you just go one level deeper just into the competitive environment a little bit, particularly with those horizontal SaaS providers. Maybe you could just touch on qualitatively, of course a little bit on just on competitive win rates and sort of what you hear from customers about your very purpose-built platform versus other kind of more horizontal solutions out there. Does that make sense?
John Hall: You bet. And welcome to the group. Saket, we’re very appreciative that you guys are covering us. Thank you.
Saket Kalia: Sure.
John Hall: So, there’s an interesting dynamic that we’ve talked about a little bit and I can go into. When comparing us to the traditional large horizontal suppliers, the firms are sort of in two classes. They’re either coming off of their in-house built bespoke system and they’re trying to decide do we go with one of these classic horizontal players that everybody has known for many years, or do we go with a purpose-built company like Intapp in their first move. And in the early days we were a small company and we’re not well known, and we won kind of more in the mid-size firms and fewer in the large, because they felt like the big guys were the safe bet. As we have grown and won more market share in the midsize and started to move up and added some real capabilities to the platform that met both the technology requirements and the security requirements for the more enterprise class firms, we now have more and more references that have successfully picked us in the first instance.
And the win rate there is pretty good and getting better. The flip side is there’s a whole generation of firms that already went to the classic horizontal players for reasons that are very logical, but they’re not getting good adoption. And this is the big knock is even after people go through all the pain and efforts to try to put the thing in and try to customize it to make it work for the unique business model that it wasn’t really designed for, at the end, they don’t get the users to run with it, because it’s too clunky, and it’s not a knock on the software because the software’s excellent. That’s why these firms are running all over the place in other industries. But in this industry, the professionals really have a very specific workflow, very specific data model that they need to model for their deals and their engagements.
They have to look at the market data coming in from third-parties to really try to orient themselves with the types of strategies they want to pursue and the types of clients they want to pursue, they have to use very modern applied AI if they want to compete on networking to the right clients. There is all kinds of things now that are available in our platform that are so natural to the end user in this market that when they see it, and they can compare it to their experience, what their experience has been with the previous generation, the horizontal systems, they say, oh, finally, somebody built something for me. And they buy it. And so, our win rate when people are looking at adoption problems or those things come up for renewal is actually higher than in the first instance when they are trying to figure out whether they should go with us or go with one of the big horizontal players.
So, as we march forward, I think both of those numbers should move in the right direction for us. And it’s just the natural purpose built value proposition. As people become more comfortable and we get bigger and we become more capable, it’s easier and easier to trust their environment to us. And one of the great quotes, I loved in this quarter’s report was actually the adoption change that one of these big firms experienced when they put us in and moved off with the traditional horizontal thing, because that’s ultimately the proof and the stickiness for the purpose built system.
