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Intapp, Inc. (NASDAQ:INTA) defied analyst predictions to release its second-quarter results, which were ahead of market expectations. The results overall were credible, with revenues of US$65m beating expectations by 10%. Statutory losses were US$0.40 per share, 17% below what the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
After the latest results, the eight analysts covering Intapp are now predicting revenues of US$260.5m in 2022. If met, this would reflect a modest 6.8% improvement in sales compared to the last 12 months. Losses are forecast to balloon 27% to US$1.73 per share. Before this earnings announcement, the analysts had been modelling revenues of US$250.8m and losses of US$1.75 per share in 2022.
The consensus price target fell 10% to US$36.38as the analysts signal that ongoing losses are likely to weigh on the stock price. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Intapp analyst has a price target of US$45.00 per share, while the most pessimistic values it at US$30.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Intapp's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Intapp's revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 14% growth on an annualised basis. This is compared to a historical growth rate of 26% over the past year. Compare this to the 496 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 15% per year. Factoring in the forecast slowdown in growth, it looks like Intapp is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Intapp's future valuation.
With that in mind, we wouldn't be too quick to come to a conclusion on Intapp. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Intapp analysts - going out to 2024, and you can see them free on our platform here.
Plus, you should also learn about the 2 warning signs we've spotted with Intapp .
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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.