Intapp Announces Third Quarter Fiscal Year 2024 Financial Results

• Third quarter SaaS and support revenue of $80.8 million, up 22% year-over-year
  
  
• Third quarter total revenue of $110.6 million, up 20% year-over-year
• Cloud annual recurring revenue (ARR) of $274.2 million, up 33% year-over-year
  
  

PALO ALTO, Calif., May 07, 2024 (GLOBE NEWSWIRE) -- Intapp, Inc. (NASDAQ:INTA), a leading global provider of AI-powered solutions for professionals at advisory, capital markets, and legal firms, announced financial results for its third quarter ended March 31, 2024. Intapp also provided its outlook for the fourth quarter and updated outlook for the full fiscal year of 2024.

"We are pleased to report a strong and exciting third quarter, in which we released several new AI capabilities aimed directly at the needs of our target markets," said John Hall, CEO of Intapp. "Intapp Assist for DealCloud, which helps professionals apply generative AI to their daily work, has received a particularly overwhelming response, with hundreds of clients engaging with us within just a few weeks of the launch."

Third Quarter of Fiscal Year 2024 Financial Highlights

• SaaS and support revenue was $80.8 million, a 22% year-over-year increase compared to the third quarter of fiscal year 2023.
• Total revenue was $110.6 million, a 20% year-over-year increase compared to the third quarter of fiscal year 2023.
• Cloud ARR was $274.2 million as of March 31, 2024, a 33% year-over-year increase compared to Cloud ARR as of March 31, 2023. Cloud ARR represented 72% of total ARR as of March 31, 2024, compared to 65% as of March 31, 2023.
• Total ARR was $382.7 million as of March 31, 2024, a 21% year-over-year increase compared to total ARR as of March 31, 2023.
• GAAP operating loss was $(7.4) million, compared to a GAAP operating loss of $(18.2) million in the third quarter of fiscal year 2023.
• Non-GAAP operating profit was $11.2 million, compared to a non-GAAP operating profit of $2.9 million in the third quarter of fiscal year 2023.
• GAAP net loss was $(6.9) million, compared to a GAAP net loss of $(18.1) million in the third quarter of fiscal year 2023.
• Non-GAAP net income was $11.2 million, compared to a non-GAAP net income of $2.2 million in the third quarter of fiscal year 2023.
• GAAP net loss per share was $(0.09), compared to a GAAP net loss per share of $(0.28) in the third quarter of fiscal year 2023.
• Non-GAAP diluted net income per share was $0.14, compared to a non-GAAP diluted net income per share of $0.03 in the third quarter of fiscal year 2023.

Balance Sheet and Cash Flow Highlights

• Cash and cash equivalents were $187.4 million as of March 31, 2024, compared to $130.4 million as of June 30, 2023.
• For the nine months ended March 31, 2024, cash provided by operating activities was $40.2 million, compared to cash provided by operating activities of $16.8 million for the nine months ended March 31, 2023.

Business Highlights

• As of March 31, 2024, we served more than 2,450 clients, 673 of which each with contracts greater than $100,000 of ARR.
• We upsold and cross-sold our existing clients such that our trailing twelve months' net revenue retention rate as of March 31, 2024 was 115%, which is within our expected range of 113% to 117%.
• We continued to add new clients and expand existing accounts including consulting firm Alix Partners; law firms DAC Beachcroft and Warner Norcross + Judd; and private equity firm Accordion.
• DealCloud won two awards: It was named a 2024 top influencer in CRE Technology by GlobeSt.com and won bronze at the Best in Biz Awards for the Enterprise Product of the Year — All Other Software category.
• To mark our vertical AI leadership in the markets we serve, we celebrated the launch of our "Intelligence Applied" strategy and brand on February 22, 2024, ringing the bell at Nasdaq and hosting our inaugural Investor Day and well-attended client and partner events.
• We announced the availability of new vertical AI capabilities including Intapp Assist for DealCloud, Intapp Data, Intapp Walls for Copilot, and the Activator experience.
• We announced the acquisition of AI software company delphai, which represents another step forward in building the data foundation that will help firms get the most out of next-generation AI.
  
  

Fourth Quarter and Full Fiscal Year 2024 Outlook

	Fiscal 2024 Outlook
	Fourth Quarter	Fiscal Year
SaaS and support revenue (in millions)	$83.5 - $84.5	$314.5 - $315.5
Total revenue (in millions)	$111.0 - $112.0	$427.0 - $428.0
Non-GAAP operating profit (in millions)	$10.5 - $11.5	$35.5 - $36.5
Non-GAAP diluted net income per share	$0.11 - $0.13	$0.42 - $0.44

The guidance provided above constitutes forward-looking statements and actual results may differ materially. Refer to the "Forward-Looking Statements" safe harbor section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

The information presented in this press release includes non-GAAP financial measures such as "non-GAAP operating profit," "non-GAAP net income," and "non-GAAP diluted net income per share." Refer to "Non-GAAP Financial Measures and Other Metrics" for a discussion of these measures and the financial tables below for reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure. The Company has not included a quantitative reconciliation of its guidance for non-GAAP operating profit and non-GAAP diluted net income per share to their most directly comparable GAAP financial measures because certain of these reconciling items, including stock-based compensation and amortization of intangible assets, could be highly variable and cannot be reasonably predicted without unreasonable effort. This is due to the inherent difficulty of forecasting the timing of certain events that have not yet occurred and are out of the Company's control and the amounts of associated reconciling items. Please note that the unavailable reconciling items could significantly impact the Company's GAAP operating results.

Corporate Presentation

A supplemental financial presentation and other information will be accessible through Intapp's investor relations website at https://investors.intapp.com/.

Webcast

Intapp will host a conference call for analysts and investors on Tuesday, May 7, 2024, beginning at 2:00 p.m. PT (5:00 p.m. ET). The call will be webcast live via the "Investors" section of the Intapp company website at https://investors.intapp.com/. A replay of the call will be available through the Intapp website for 90 days.

About Intapp

Intapp software helps professionals unlock their teams' knowledge, relationships, and operational insights to increase value for their firms. Using the power of Applied AI, we make firm and market intelligence easy to find, understand, and use. With Intapp's portfolio of vertical SaaS solutions, professionals can apply their collective expertise to make smarter decisions, manage risk, and increase competitive advantage. The world's top firms — across accounting, consulting, investment banking, legal, private capital, and real assets — trust Intapp's industry-specific platform and solutions to modernize and drive new growth.

Forward-Looking Statements

This press release contains express and implied "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our financial outlook for the fourth quarter and full fiscal year 2024, growth strategy, business plans and market position. In some cases, you can identify forward-looking statements by terms such as "anticipate," "believe," "estimate," "expect," "intend," "may," "might," "plan," "project," "would," "should," "could," "can," "predict," "potential," "target," "explore," "continue," "expand," "outlook" or the negative of these terms, and similar expressions intended to identify forward-looking statements. By their nature, these statements are subject to numerous uncertainties and risks, including factors beyond our control, that could cause actual results, performance, or achievement to differ materially and adversely from those anticipated or implied in the statements, including: our ability to continue our growth at or near historical rates; our future financial performance and ability to be profitable; the effect of global events on the U.S. and global economies, our business, our employees, results of operations, financial condition, demand for our products, sales and implementation cycles, and the health of our clients' and partners' businesses; our ability to prevent and respond to data breaches, unauthorized access to client data or other disruptions of our solutions; our ability to effectively manage U.S. and global market and economic conditions, including inflationary pressures, economic and market downturns and volatility in the financial services industry, particularly adverse to our targeted industries; the length and variability of our sales cycle; our ability to attract and retain clients; our ability to attract and retain talent; our ability to compete in highly competitive markets, including AI products; our ability to manage additional complexity, burdens, and volatility in connection with our international sales and operations; the successful assimilation or integration of the businesses, technologies, services, products, personnel or operations of acquired companies; our ability to incur indebtedness in the future and the effect of conditions in credit markets; the sufficiency of our cash and cash equivalents to meet our liquidity needs; and our ability to maintain, protect, and enhance our intellectual property rights. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption "Risk Factors" and elsewhere in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, and any subsequent public filings. Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. Forward-looking statements speak only as of the date the statements are made and are based on information available to us at the time those statements are made and/or management's good faith belief as of that time with respect to future events. We assume no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law.

Non-GAAP Financial Measures and Other Metrics

This press release contains the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating profit, non-GAAP net income and non-GAAP diluted net income per share. These non-GAAP measures exclude the impact of stock-based compensation, amortization of intangible assets, lease modification and impairment, change in fair value of contingent consideration, transaction costs, restructuring and other costs and the income tax effect of non-GAAP adjustments. See below for a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure.

Other metrics include total ARR, Cloud ARR and net revenue retention rate. Total ARR represents the annualized recurring value of all active SaaS and on-premise subscription license contracts at the end of a reporting period. Cloud ARR is the portion of the annualized recurring value of our active SaaS contracts at the end of a reporting period. Contracts with a term other than one year are annualized by taking the committed contract value for the current period divided by number of days in that period, then multiplying by 365.

Net revenue retention rate is calculated by starting with the ARR from the cohort of all clients as of the twelve months prior to the applicable fiscal period, or prior period ARR. We then calculate the ARR from these same clients as of the current fiscal period, or current period ARR. We then divide the current period ARR by the prior period ARR to calculate the net revenue retention rate.

We believe these non-GAAP financial measures and metrics provide useful information to investors as they are used by management to manage the business, make planning decisions, evaluate our performance, and allocate resources and provide useful information regarding certain financial and business trends relating to our financial condition and results of operations. These non-GAAP financial measures, which may be different than similarly-titled measures used by other companies, should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

Guidance for non-GAAP financial measures excludes stock-based compensation expense and amortization of intangible assets. Non-GAAP diluted net income per share is calculated by dividing non-GAAP net income by the estimated diluted weighted average shares outstanding for the period.

Investor Contact

David Trone

Senior Vice President, Investor Relations

Intapp, Inc.

[email protected]

Media Contact

Ali Robinson

Global Media Relations Director

Intapp, Inc.

[email protected]

INTAPP, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, in thousands, except per share data and percentages)
	Three Months Ended March 31,								Nine Months Ended March 31,
	2024				2023				2024				2023
Revenues
SaaS and support	$	80,817			$	66,051			$	230,987			$	184,469
Subscription license		16,520				13,577				44,566				36,804
Total recurring revenues		97,337				79,628				275,553				221,273
Professional services		13,302				12,396				40,594				34,981
Total revenues		110,639				92,024				316,147				256,254
Cost of revenues
SaaS and support		14,902				13,644				43,731				38,498
Total cost of recurring revenues		14,902				13,644				43,731				38,498
Professional services		15,679				14,846				49,192				42,111
Total cost of revenues		30,581				28,490				92,923				80,609
Gross profit		80,058				63,534				223,224				175,645
Gross margin		72.4	%			69.0	%			70.6	%			68.5	%
Operating expenses:
Research and development		27,319				25,281				83,796				68,352
Sales and marketing		35,256				34,946				104,944				99,796
General and administrative		24,929				21,552				66,977				62,715
Lease modification and impairment		—				—				—				1,601
Total operating expenses		87,504				81,779				255,717				232,464
Operating loss		(7,446	)			(18,245	)			(32,493	)			(56,819	)
Interest and other income (expense), net		758				(253	)			1,872				(836	)
Net loss before income taxes		(6,688	)			(18,498	)			(30,621	)			(57,655	)
Income tax benefit (expense)		(202	)			351				(803	)			(300	)
Net loss	$	(6,890	)		$	(18,147	)		$	(31,424	)		$	(57,955	)
Net loss per share, basic and diluted	$	(0.09	)		$	(0.28	)		$	(0.44	)		$	(0.91	)
Weighted-average shares used to compute net loss per share, basic and diluted		72,634				64,327				70,690				63,487

INTAPP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, in thousands)
	March 31, 2024				June 30, 2023
Assets
Current assets:
Cash and cash equivalents	$	187,426			$	130,377
Restricted cash		200				808
Accounts receivable, net		80,420				92,973
Unbilled receivables, net		16,465				10,661
Other receivables, net		2,136				878
Prepaid expenses		8,437				7,335
Deferred commissions, current		13,057				11,807
Total current assets		308,141				254,839
Property and equipment, net		18,282				16,366
Operating lease right-of-use assets		22,211				17,180
Goodwill		278,883				278,890
Intangible assets, net		35,323				43,257
Deferred commissions, noncurrent		17,043				16,529
Other assets		4,319				1,846
Total assets	$	684,202			$	628,907
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	15,359			$	6,018
Accrued compensation		35,970				39,761
Accrued expenses		11,423				11,626
Deferred revenue, net		195,502				191,042
Other current liabilities		12,880				10,902
Total current liabilities		271,134				259,349
Deferred tax liabilities		1,098				1,422
Deferred revenue, noncurrent		1,828				1,355
Operating lease liabilities, noncurrent		20,395				16,195
Other liabilities		3,775				9,378
Total liabilities		298,230				287,699
Stockholders' equity:
Common stock		73				69
Additional paid-in capital		873,834				797,639
Accumulated other comprehensive loss		(1,350	)			(1,339	)
Accumulated deficit		(486,585	)			(455,161	)
Total stockholders' equity		385,972				341,208
Total liabilities and stockholders' equity	$	684,202			$	628,907

INTAPP, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, in thousands)
	Three Months Ended March 31,								Nine Months Ended March 31,
	2024				2023				2024				2023
Cash Flows from Operating Activities:
Net loss	$	(6,890	)		$	(18,147	)		$	(31,424	)		$	(57,955	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		4,022				3,669				12,006				11,406
Amortization of operating lease right-of-use assets		1,240				1,106				3,522				3,510
Accounts receivable allowances		1,567				726				2,795				1,402
Stock-based compensation		14,026				18,759				49,291				54,795
Lease modification and impairment		—				—				—				1,601
Change in fair value of contingent consideration		490				(641	)			(1,725	)			(873	)
Deferred income taxes		(107	)			(148	)			(324	)			(452	)
Other		38				38				115				115
Changes in operating assets and liabilities:
Accounts receivable		(2,469	)			(856	)			10,101				(2,370	)
Unbilled receivables, current		(30	)			(3,489	)			(5,804	)			(5,879	)
Prepaid expenses and other assets		(2,347	)			(815	)			(4,135	)			214
Deferred commissions		(696	)			(560	)			(1,764	)			(2,116	)
Accounts payable and accrued liabilities		7,783				2,622				6,266				(5,472	)
Deferred revenue, net		96				3,484				4,933				22,257
Operating lease liabilities		(1,144	)			(1,471	)			(3,483	)			(4,594	)
Other liabilities		926				(790	)			(218	)			1,245
Net cash provided by operating activities		16,505				3,487				40,152				16,834
Cash Flows from Investing Activities:
Purchases of property and equipment		(374	)			(356	)			(1,728	)			(2,054	)
Capitalized internal-use software costs		(1,764	)			(1,179	)			(5,217	)			(3,876	)
Investment in note receivable		—				(500	)			—				(500	)
Net cash used in investing activities		(2,138	)			(2,035	)			(6,945	)			(6,430	)
Cash Flows from Financing Activities:
Payments for deferred offering costs		—				(57	)			(781	)			(57	)
Proceeds from stock option exercises		7,251				11,247				25,187				15,727
Proceeds from employee stock purchase plan		—				—				1,725				1,241
Payments related to tax withholding for vested equity awards		—				—				—				(4,948	)
Payments of deferred contingent consideration and holdback associated with acquisitions		—				(11,175	)			(2,551	)			(22,290	)
Net cash provided by (used in) financing activities		7,251				15				23,580				(10,327	)
Effect of foreign currency exchange rate changes on cash and cash equivalents		(549	)			(71	)			(346	)			(422	)
Net increase (decrease) in cash, cash equivalents and restricted cash		21,069				1,396				56,441				(345	)
Cash, cash equivalents and restricted cash - beginning of period		166,557				52,570				131,185				54,311
Cash, cash equivalents and restricted cash - end of period	$	187,626			$	53,966			$	187,626			$	53,966

 

INTAPP, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited, in thousands, except per share data and percentages)

The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP financial measures for the periods indicated below:

Non-GAAP Gross Profit

	Three Months Ended March 31,								Nine Months Ended March 31,
	2024				2023				2024				2023
GAAP gross profit	$	80,058			$	63,534			$	223,224			$	175,645
Adjusted to exclude the following:
Stock-based compensation		1,956				1,524				5,848				4,248
Amortization of intangible assets		1,054				918				3,164				3,331
Non-GAAP gross profit	$	83,068			$	65,976			$	232,236			$	183,224
Non-GAAP gross margin		75.1	%			71.7	%			73.5	%			71.5	%

Non-GAAP Operating Expenses

	Three Months Ended March 31,								Nine Months Ended March 31,
	2024				2023				2024				2023
GAAP research and development	$	27,319			$	25,281			$	83,796			$	68,352
Stock-based compensation		(2,509	)			(4,571	)			(11,623	)			(11,351	)
Restructuring and other costs		(52	)			—				(52	)			—
Non-GAAP research and development	$	24,758			$	20,710			$	72,121			$	57,001
GAAP sales and marketing	$	35,256			$	34,946			$	104,944			$	99,796
Stock-based compensation		(4,207	)			(6,029	)			(14,434	)			(18,134	)
Amortization of intangible assets		(1,398	)			(1,467	)			(4,281	)			(4,398	)
Non-GAAP sales and marketing	$	29,651			$	27,450			$	86,229			$	77,264
GAAP general and administrative	$	24,929			$	21,552			$	66,977			$	62,715
Stock-based compensation		(5,354	)			(6,635	)			(17,386	)			(21,062	)
Amortization of intangible assets		(163	)			(120	)			(489	)			(363	)
Change in fair value of contingent consideration		(490	)			641				1,725				873
Transaction costs(1)		(1,471	)			(502	)			(2,149	)			(703	)
Non-GAAP general and administrative	$	17,451			$	14,936			$	48,678			$	41,460

Non-GAAP Operating Profit

	Three Months Ended March 31,								Nine Months Ended March 31,
	2024				2023				2024				2023
GAAP operating loss	$	(7,446	)		$	(18,245	)		$	(32,493	)		$	(56,819	)
Adjusted to exclude the following:
Stock-based compensation		14,026				18,759				49,291				54,795
Amortization of intangible assets		2,615				2,505				7,934				8,092
Lease modification and impairment		—				—				—				1,601
Change in fair value of contingent consideration		490				(641	)			(1,725	)			(873	)
Transaction costs(1)		1,471				502				2,149				703
Restructuring and other costs		52				—				52				—
Non-GAAP operating profit	$	11,208			$	2,880			$	25,208			$	7,499

Non-GAAP Net Income

	Three Months Ended March 31,								Nine Months Ended March 31,
	2024				2023				2024				2023
GAAP net loss	$	(6,890	)		$	(18,147	)		$	(31,424	)		$	(57,955	)
Adjusted to exclude the following:
Stock-based compensation		14,026				18,759				49,291				54,795
Amortization of intangible assets		2,615				2,505				7,934				8,092
Lease modification and impairment		—				—				—				1,601
Change in fair value of contingent consideration		490				(641	)			(1,725	)			(873	)
Transaction costs(1)		1,471				502				2,149				703
Restructuring and other costs		52				—				52				—
Income tax effect of non-GAAP adjustments		(611	)			(761	)			(1,736	)			(1,242	)
Non-GAAP net income	$	11,153			$	2,217			$	24,541			$	5,121
GAAP net loss per share, basic and diluted	$	(0.09	)		$	(0.28	)		$	(0.44	)		$	(0.91	)
Non-GAAP net income per share, diluted	$	0.14			$	0.03			$	0.31			$	0.07
Weighted-average shares used to compute GAAP net loss per share, basic and diluted		72,634				64,327				70,690				63,487
Weighted-average shares used to compute non-GAAP net income per share, diluted		81,437				76,306				80,426				72,125
(1) Consists of acquisition-related transaction costs and costs related to certain non-capitalized offering-related expenses.