Intapp Announces Fourth Quarter and Full Fiscal Year 2023 Financial Results

Written by Customer Service on September 6, 2023. Posted in Earnings Releases And Operating Results.

Fourth quarter SaaS and support revenue of $67.8 million, up 29% year-over-year
Fourth quarter total revenue of $94.6 million, up 25% year-over-year
Cloud annual recurring revenue (ARR) of $222.3 million, up 36% year-over-year

PALO ALTO, Calif., Sept. 06, 2023 (GLOBE NEWSWIRE) — Intapp, Inc. (NASDAQ: INTA), a leading provider of cloud software for the global professional and financial services industry, announced its financial results for the fourth quarter and full fiscal year ended June 30, 2023. Intapp also provided its outlook for the first quarter and full fiscal year of 2024.

“We are pleased to report another strong year, with great results across the business and steady demand for our purpose-built cloud solutions,” said John Hall, CEO of Intapp. “This year we added new clients, grew existing relationships, released new applied AI applications, and demonstrated consistent growth. We enter fiscal year 2024 with optimism and momentum.”

Fourth Quarter of Fiscal Year 2023 Financial Highlights

SaaS and support revenue was $67.8 million, a 29% year-over-year increase compared to the fourth quarter of fiscal year 2022.
Total revenue was $94.6 million, a 25% year-over-year increase compared to the fourth quarter of fiscal year 2022.
Cloud ARR was $222.3 million as of June 30, 2023, a 36% year-over-year increase compared to Cloud ARR as of June 30, 2022. Cloud ARR represented 67% of total ARR as of June 30, 2023, compared to 60% as of June 30, 2022.
Total ARR was $330.2 million as of June 30, 2023, a 22% year-over-year increase compared to total ARR as of June 30, 2022.
GAAP operating loss was $(12.4) million, compared to a GAAP operating loss of $(22.8) million in the fourth quarter of fiscal year 2022.
Non-GAAP operating profit was $3.0 million, compared to a non-GAAP operating loss of $(3.9) million in the fourth quarter of fiscal year 2022.
GAAP net loss was $(11.5) million, compared to a GAAP net loss of $(21.6) million in the fourth quarter of fiscal year 2022.
Non-GAAP net income was $3.2 million, compared to a non-GAAP net loss of $(2.6) million in the fourth quarter of fiscal year 2022.
GAAP net loss per share was $(0.17), compared to a GAAP net loss per share of $(0.35) in the fourth quarter of fiscal year 2022.
Non-GAAP fully diluted net income per share was $0.04, compared to a non-GAAP net loss per share of $(0.04) in the fourth quarter of fiscal year 2022.

Fiscal Year 2023 Financial Highlights

SaaS and support revenue was $252.3 million, a 31% year-over-year increase compared to fiscal year 2022.
Total revenue was $350.9 million, a 29% year-over-year increase compared to fiscal year 2022.
GAAP operating loss was $(69.3) million, compared to a GAAP operating loss of $(99.5) million in fiscal year 2022.
Non-GAAP operating profit was $10.5 million, compared to a non-GAAP operating loss of $(7.1) million in fiscal year 2022.
GAAP net loss was $(69.4) million, compared to a GAAP net loss of $(99.7) million in fiscal year 2022.
Non-GAAP net income was $8.3 million compared to a non-GAAP net loss of $(7.3) million in fiscal year 2022.
GAAP net loss per share was $(1.08), compared to a GAAP net loss per share of $(1.63) in fiscal year 2022.
Non-GAAP fully diluted net income per share was $0.11, compared to a non-GAAP net loss per share of $(0.12) in fiscal year 2022.

Balance Sheet and Cash Flow Highlights

Cash and cash equivalents were $130.4 million as of June 30, 2023, compared to $50.8 million as of June 30, 2022, primarily reflecting proceeds from our follow-on public offering completed in May 2023.
For the fiscal year ended June 30, 2023, cash provided by operating activities was $27.5 million, compared to cash provided by operating activities of $14.2 million for the fiscal year ended June 30, 2022.

Business Highlights

As of June 30, 2023, we served more than 2,300 clients, 603 of which each generated more than $100,000 of ARR. In addition, at fiscal year ended June 30, 2023, we had 53 clients with more than $1.0 million of ARR, up from 41 such clients at the prior fiscal year end.
We upsold and cross-sold our existing clients such that our trailing twelve months’ net revenue retention rate as of June 30, 2023 was within our expected range of 113% to 117%.
We continued to add new clients and expand existing accounts including real estate investment group Asana Partners, Swedish investment bank Trill Impact, and Brazilian investment bank Unio Partners.
DealCloud won the 2023 CRM Excellence Award from CUSTOMER magazine and TMC, a global integrated media company.
We continued to develop our partner ecosystem with new and expanded relationships that make additional data and technology accessible within DealCloud, including BoardEx, Bureau Van Dijk Orbis M&A Database, and Untapp.

First Quarter and Full Fiscal Year 2024 Outlook

	Fiscal 2024 Outlook
	First Quarter	Fiscal Year
SaaS and support revenue (in millions)	$70.0 – $71.0	$306.0 – $310.0
Total revenue (in millions)	$96.0 – $97.0	$419.0 – $423.0
Non-GAAP operating profit (in millions)	$2.5 – $3.5	$20.0 – $24.0
Non-GAAP diluted net income per share	~ $0.03	$0.20 – $0.24

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 (loss),” “non-GAAP net income (loss),” and “non-GAAP net income (loss) 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 Wednesday, September 6, 2023, 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 makes the connected firm possible. We provide cloud software solutions that address the unique operating challenges and regulatory requirements of the global professional and financial services industry. Our solutions help more than 2,300 of the world’s premier private capital, investment banking, legal, accounting, and consulting firms connect their most important assets: people, processes, and data. As part of a connected firm, professionals gain easy access to the information they need to win more business, increase investment returns, streamline deal and engagement execution, and strengthen risk management and compliance.

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 first quarter and full year of 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 customers; 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; 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 (loss), non-GAAP net income (loss) and non-GAAP net income (loss) 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, acquisition-related transaction costs and the income tax effect of non-GAAP adjustments.

Unlevered free cashflow is a non-GAAP financial measure, and a supplemental liquidity measure that management uses to evaluate our core operating business and our ability to meet our current and future financing and investing needs. It consists of net cash provided by operating activities less cash paid for purchases of property and equipment and capitalized internal-use software and increased by cash paid for interest expense. 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 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 fully diluted weighted average shares outstanding for the period.

Investor Contact

David Trone
Senior Vice President, Investor Relations
Intapp, Inc.
ir@intapp.com

Media Contact

Ali Robinson
Global Media Relations Director
Intapp, Inc.
Ali.robinson@intapp.com

INTAPP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data and percentages)

	Three Months Ended June 30,						Year Ended June 30,
	2023			2022			2023			2022
Revenues
SaaS and support	$	67,841		$	52,713		$	252,310		$	192,980
Subscription license		12,166			13,391			48,970			44,202
Total recurring revenues		80,007			66,104			301,280			237,182
Professional services		14,612			9,417			49,593			34,889
Total revenues		94,619			75,521			350,873			272,071
Cost of revenues
SaaS and support		14,524			14,170			53,022			51,177
Total cost of recurring revenues		14,524			14,170			53,022			51,177
Professional services		16,329			12,984			58,440			47,906
Total cost of revenues		30,853			27,154			111,462			99,083
Gross profit		63,766			48,367			239,411			172,988
Gross margin		67.4	%		64.0	%		68.2	%		63.6	%
Operating expenses:
Research and development		25,499			19,631			93,851			74,412
Sales and marketing		32,393			30,661			132,189			111,905
General and administrative		18,316			20,905			81,031			86,127
Lease modification and impairment		—			—			1,601			—
Total operating expenses		76,208			71,197			308,672			272,444
Operating loss		(12,442	)		(22,830	)		(69,261	)		(99,456	)
Loss on debt extinguishment		—			—			—			(2,407	)
Interest expense		(39	)		(38	)		(156	)		(274	)
Other income (expense), net		216			(1,164	)		(503	)		(976	)
Net loss before income taxes		(12,265	)		(24,032	)		(69,920	)		(103,113	)
Income tax benefit		795			2,445			495			3,435
Net loss	$	(11,470	)	$	(21,587	)	$	(69,425	)	$	(99,678	)
Net loss per share, basic and diluted	$	(0.17	)	$	(0.35	)	$	(1.08	)	$	(1.63	)
Weighted-average shares used to compute net loss per share, basic and diluted		66,730			62,285			64,295			61,267

INTAPP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)

	June 30, 2023			June 30, 2022
Assets
Current assets:
Cash and cash equivalents	$	130,377		$	50,783
Restricted cash		808			3,528
Accounts receivable, net		92,973			66,947
Unbilled receivables, net		10,661			6,763
Other receivables, net		878			3,199
Prepaid expenses		7,335			5,984
Deferred commissions, current		11,807			10,187
Total current assets		254,839			147,391
Property and equipment, net		16,366			12,283
Operating lease right-of-use assets		17,180			—
Goodwill		278,890			269,103
Intangible assets, net		43,257			48,430
Deferred commissions, noncurrent		16,529			14,755
Other assets		1,846			2,451
Total assets	$	628,907		$	494,413
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	6,018		$	4,220
Accrued compensation		39,761			40,004
Accrued expenses		11,626			8,774
Deferred revenue, net		191,042			142,768
Other current liabilities		10,902			27,753
Total current liabilities		259,349			223,519
Deferred tax liabilities		1,422			2,099
Deferred revenue, noncurrent		1,355			2,712
Operating lease liabilities, noncurrent		16,195			—
Other liabilities		9,378			10,201
Total liabilities		287,699			238,531
Stockholders’ equity:
Preferred stock		—			—
Common stock		69			63
Additional paid-in capital		797,639			643,227
Accumulated other comprehensive loss		(1,339	)		(1,672	)
Accumulated deficit		(455,161	)		(385,736	)
Total stockholders’ equity		341,208			255,882
Total liabilities and stockholders’ equity	$	628,907		$	494,413

INTAPP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)

	Three Months Ended June 30,						Year Ended June 30,
	2023			2022			2023			2022
Cash Flows from Operating Activities:
Net loss	$	(11,470	)	$	(21,587	)	$	(69,425	)	$	(99,678	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		3,913			4,232			15,319			16,742
Amortization of operating lease right-of-use assets		1,129			—			4,639			—
Provision for doubtful accounts		(480	)		(263	)		922			541
Stock-based compensation		12,974			15,219			67,769			77,514
Lease modification and impairment		—			—			1,601			—
Loss on debt extinguishment		—			—			—			2,407
Change in fair value of contingent consideration, including unrealized foreign exchange gain		(889	)		(2,412	)		(1,762	)		(2,776	)
Deferred income taxes		(460	)		(3,153	)		(912	)		(4,237	)
Other		39			39			154			(133	)
Changes in operating assets and liabilities:
Accounts receivable		(24,032	)		(18,762	)		(26,402	)		(18,205	)
Unbilled receivables, current		1,981			3,041			(3,898	)		1,347
Prepaid expenses and other assets		1,047			123			1,261			905
Deferred commissions		(1,278	)		(4,015	)		(3,394	)		(7,977	)
Accounts payable and accrued liabilities		7,785			13,481			2,313			15,589
Deferred revenue, net		24,308			21,820			46,565			35,345
Operating lease liabilities		(1,328	)		—			(5,922	)		—
Other liabilities		(2,586	)		1,903			(1,341	)		(3,148	)
Net cash provided by operating activities		10,653			9,666			27,487			14,236
Cash Flows from Investing Activities:
Purchases of property and equipment		(158	)		(273	)		(2,212	)		(554	)
Capitalized internal-use software costs		(1,648	)		(1,181	)		(5,524	)		(4,233	)
Business combinations, net of cash acquired		(6,604	)		(2,500	)		(6,604	)		(2,500	)
Investment in note receivable		—			—			(500	)		—
Repayment of note receivable		500			—			500			—
Net cash used in investing activities		(7,910	)		(3,954	)		(14,340	)		(7,287	)
Cash Flows from Financing Activities:
Payments on borrowings		—			—			—			(278,000	)
Proceeds from public offering, net of underwriting discounts		70,080			—			70,080			292,758
Payments for deferred offering costs		(733	)		—			(790	)		(4,358	)
Proceeds from stock option exercises		7,729			2,141			23,456			10,211
Proceeds from employee stock purchase plan		1,459			1,163			2,700			1,163
Payments related to tax withholding for vested equity awards		(4,108	)		(10	)		(9,056	)		(3,923	)
Payments of deferred contingent consideration and holdback associated with acquisitions		—			—			(22,290	)		(10,435	)
Payment of deferred financing costs		—			—			—			(769	)
Net cash provided by financing activities		74,427			3,294			64,100			6,647
Effect of foreign currency exchange rate changes on cash and cash equivalents		49			(908	)		(373	)		(748	)
Net increase in cash, cash equivalents and restricted cash		77,219			8,098			76,874			12,848
Cash, cash equivalents and restricted cash – beginning of period		53,966			46,213			54,311			41,463
Cash, cash equivalents and restricted cash – end of period	$	131,185		$	54,311		$	131,185		$	54,311

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 June 30,						Year Ended June 30,
	2023			2022			2023			2022
GAAP gross profit	$	63,766		$	48,367		$	239,411		$	172,988
Adjusted to exclude the following:
Stock-based compensation		1,373			1,121			5,621			4,287
Amortization of intangible assets		1,009			1,986			4,340			7,877
Non-GAAP gross profit	$	66,148		$	51,474		$	249,372		$	185,152
Non-GAAP gross margin		69.9	%		68.2	%		71.1	%		68.1	%

Non-GAAP Operating Expenses

	Three Months Ended June 30,						Year Ended June 30,
	2023			2022			2023			2022
Research and development	$	25,499		$	19,631		$	93,851		$	74,412
Stock-based compensation		(3,835	)		(3,395	)		(15,186	)		(17,166	)
Non-GAAP research and development	$	21,664		$	16,236		$	78,665		$	57,246


Sales and marketing	$	32,393		$	30,661		$	132,189		$	111,905
Stock-based compensation		(2,292	)		(4,741	)		(20,426	)		(25,428	)
Amortization of intangible assets		(1,523	)		(1,287	)		(5,921	)		(5,214	)
Non-GAAP sales and marketing	$	28,578		$	24,633		$	105,842		$	81,263


General and administrative	$	18,316		$	20,905		$	81,031		$	86,127
Stock-based compensation		(5,474	)		(5,962	)		(26,536	)		(30,633	)
Amortization of intangible assets		(149	)		(109	)		(512	)		(428	)
Change in fair value of contingent consideration		889			1,366			1,762			639
Acquisition-related transaction costs		(663	)		(1,733	)		(1,366	)		(1,939	)
Non-GAAP general and administrative	$	12,919		$	14,467		$	54,379		$	53,766

Non-GAAP Operating Profit (Loss)

	Three Months Ended June 30,						Year Ended June 30,
	2023			2022			2023			2022
GAAP operating loss	$	(12,442	)	$	(22,830	)	$	(69,261	)	$	(99,456	)
Adjusted to exclude the following:
Stock-based compensation		12,974			15,219			67,769			77,514
Amortization of intangible assets		2,681			3,382			10,773			13,519
Lease modification and impairment		—			—			1,601			—
Change in fair value of contingent consideration		(889	)		(1,366	)		(1,762	)		(639	)
Acquisition-related transaction costs		663			1,733			1,366			1,939
Non-GAAP operating profit (loss)	$	2,987		$	(3,862	)	$	10,486		$	(7,123	)

Non-GAAP Net Income (Loss)

	Three Months Ended June 30,						Year Ended June 30,
	2023			2022			2023			2022
GAAP net loss	$	(11,470	)	$	(21,587	)	$	(69,425	)	$	(99,678	)
Adjusted to exclude the following:
Stock-based compensation		12,974			15,219			67,769			77,514
Amortization of intangible assets		2,681			3,382			10,773			13,519
Lease modification and impairment		—			—			1,601			—
Change in fair value of contingent consideration		(889	)		(1,366	)		(1,762	)		(639	)
Acquisition-related transaction costs		663			1,733			1,366			1,939
Income tax effect of non-GAAP adjustments ⁽¹⁾		(775	)		—			(2,017	)		—
Non-GAAP net income (loss)	$	3,184		$	(2,619	)	$	8,305		$	(7,345	)

GAAP net loss per share, basic and diluted	$	(0.17	)	$	(0.35	)	$	(1.08	)	$	(1.63	)
Non-GAAP net income (loss) per share, diluted	$	0.04		$	(0.04	)	$	0.11		$	(0.12	)


Weighted-average shares used to compute GAAP net loss per share, basic and diluted		66,730			62,285			64,295			61,267
Weighted-average shares used to compute non-GAAP net income (loss) per share, diluted		78,843			62,285			73,800			61,267

(1) The income tax effect of non-GAAP adjustments for the three and twelve months ended June 30, 2022 were immaterial.

Unlevered Free Cash Flow

	Year Ended June 30,
	2023			2022
Net cash provided by operating activities	$	27,487		$	14,236
Adjusted for the following cash outlays:
Purchases of property and equipment		(2,212	)		(554	)
Capitalized internal-use software costs		(5,524	)		(4,233	)
Cash paid for interest		3			5,950
Unlevered free cash flow	$	19,754		$	15,399

Intapp Announces Fourth Quarter and Full Fiscal Year 2023 Financial Results

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