Intapp, Inc. (INTA) shares experienced a significant 24-hour plunge of 5.54% on Tuesday, despite reporting better-than-expected third-quarter earnings. The software company's stock decline came as a surprise to many investors, given its strong financial performance for the quarter ended March 31.

Intapp reported adjusted earnings per share of $0.26, surpassing analysts' estimates of $0.22. The company's adjusted net income reached $21.7 million, significantly higher than the expected $18.6 million. Revenue also showed robust growth, increasing by 16.7% to $129.07 million, slightly above the consensus forecast of $128.79 million. Despite these positive results, the stock failed to maintain its momentum in after-hours trading.

The unexpected downturn appears to be linked to Intapp's full-year outlook, which may have fallen short of investor expectations. The company projects full-year adjusted earnings per share between $0.88 and $0.90, with adjusted operating profit expected to range from $74.3 million to $75.3 million. While this guidance is positive, it might not have been as strong as some investors had hoped, potentially explaining the sell-off. Additionally, the stock's year-to-date decline of 10% prior to this earnings release suggests ongoing investor concerns about the company's growth trajectory in a challenging macroeconomic environment. This scenario illustrates a classic "sell the news" event, where positive earnings were not enough to overcome broader market skepticism.