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Home Artificial Intelligence

Intapp Announces Second Quarter Fiscal Year 2025 Financial Results

February 5, 2025
in Artificial Intelligence, GlobeNewswire, Web3
Reading Time: 45 mins read
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  • Second quarter SaaS revenue of $80.0 million, up 27% year-over-year
  • Cloud annual recurring revenue (ARR) of $331.1 million, up 29% year-over-year
  • Trailing twelve months’ cloud net revenue retention rate as of December 31, 2024 was 119%

PALO ALTO, Calif., Feb. 04, 2025 (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 fiscal second quarter ended December 31, 2024. Intapp also provided its outlook for the third quarter and the full fiscal year 2025.

“I’m pleased to share that once again we’ve achieved strong quarterly results which are supported by the addition of new clients and expanded client relationships,” said John Hall, CEO of Intapp. “Our second quarter results are indicative of our ability to continually drive AI, cloud adoption, and modernization across the industries we serve.”

Second Quarter of Fiscal Year 2025 Financial Highlights

  • SaaS revenue was $80.0 million, a 27% year-over-year increase compared to the second quarter of fiscal year 2024.
  • Total revenue was $121.2 million, a 17% year-over-year increase compared to the second quarter of fiscal year 2024.
  • Cloud ARR was $331.1 million as of December 31, 2024, a 29% year-over-year increase compared to Cloud ARR as of December 31, 2023. Cloud ARR represented 76% of total ARR as of December 31, 2024, compared to 70% as of December 31, 2023.
  • Total ARR was $437.1 million as of December 31, 2024, a 20% year-over-year increase compared to total ARR as of December 31, 2023.
  • GAAP operating loss was $(10.2) million, compared to a GAAP operating loss of $(11.1) million in the second quarter of fiscal year 2024.
  • Non-GAAP operating income was $18.9 million, compared to a non-GAAP operating income of $7.6 million in the second quarter of fiscal year 2024.
  • GAAP net loss was $(10.2) million, compared to a GAAP net loss of $(9.2) million in the second quarter of fiscal year 2024.
  • Non-GAAP net income was $17.4 million, compared to a non-GAAP net income of $8.8 million in the second quarter of fiscal year 2024.
  • GAAP net loss per share was $(0.13), compared to a GAAP net loss per share of $(0.13) in the second quarter of fiscal year 2024.
  • Non-GAAP diluted net income per share was $0.21, compared to a non-GAAP diluted net income per share of $0.11 in the second quarter of fiscal year 2024.
  • Cash and cash equivalents were $285.6 million as of December 31, 2024, compared to $208.4 million as of June 30, 2024.
  • For the six months ended December 31, 2024, net cash provided by operating activities was $49.7 million, compared to net cash provided by operating activities of $23.6 million for the six months ended December 31, 2023.

Business Highlights

  • As of December 31, 2024, we served more than 2,650 clients, 728 of which each had contracts greater than $100,000 of ARR.
  • We upsold and cross-sold our existing clients such that our trailing twelve months’ cloud net revenue retention rate as of December 31, 2024 was 119%.
  • We continued to add new clients and expand existing accounts including accounting firm Milsted Langdon and consulting firm Alvarez & Marsal. 
  • We were named to Forbes’ America’s Most Successful Mid-Cap Companies listing for 2024. 
  • Intapp DealCloud won bronze in the Enterprise Product of the Year – Software category at the 2024 Best in Biz Awards.

Third Quarter and Full Fiscal Year 2025 Outlook

 Fiscal 2025 Outlook
 Third QuarterFiscal Year
 (in millions, except per share data)
SaaS revenue$84.0 – $85.0$328.8 – $332.8
Total revenue$128.3 – $129.3$498.5 – $502.5
Non-GAAP operating income$18.5 – $19.5$70.2 – $74.2
Non-GAAP diluted net income per share$0.21 – $0.23$0.83 – $0.87
   

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 income,” “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 guidance regarding non-GAAP operating income excludes known pre-tax charges related to estimated stock-based compensation of $23.4 million for the third quarter of fiscal year 2025 and $90.6 million for fiscal year 2025 and amortization of intangible assets of $2.7 million for the third quarter of fiscal year 2025 and $11.2 million for fiscal year 2025. The guidance regarding non-GAAP diluted net income per share excludes known pre-tax charges related to estimated stock-based compensation of $0.28 per share for the third quarter of fiscal year 2025 and $1.08 per share for fiscal year 2025 and amortization of intangible assets of $0.03 per share for the third quarter of fiscal year 2025 and $0.13 per share for fiscal year 2025. The Company has not included a quantitative reconciliation of its guidance for non-GAAP operating income and non-GAAP diluted net income per share to their most directly comparable GAAP financial measures, other than stock-based compensation and amortization of intangible assets, because certain of these reconciling items, including change in fair value of contingent consideration, transaction costs, restructuring and other costs and income tax effect of non-GAAP adjustments, 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, February 4, 2025, 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 third quarter and full fiscal year 2025, 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, our results of operations, our 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.

Presentation Changes Related to SaaS and License Revenue

Effective July 1, 2024, the Company adjusted the classification of support services related to subscription license to be included within “license” on the unaudited condensed consolidated statements of operations. Prior to July 1, 2024, support services related to subscription license were included in a line item entitled “SaaS and Support.” Accordingly, effective July 1, 2024, SaaS revenues include subscription fees from clients accessing our SaaS solutions, premium support services related to SaaS, and updates, if any, to the subscribed service during the subscription term. There was no change to the Company’s revenue recognition policy, except for the change in classification noted herein.

The presentation of cost of revenues has been conformed to reflect the changes related to the presentation of revenues. Such reclassifications related to the presentation of revenues and cost of revenues did not affect total revenues, operating income, or net income.

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 income, 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, 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.

Free cash flow 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. 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 Cloud 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. Cloud net revenue retention rate is the portion of our net revenue retention rate, which represents the net revenue retention of our SaaS contracts. We calculate Cloud net revenue retention by starting with the Cloud ARR from the cohort of all clients as of the twelve months prior to the applicable fiscal period, or prior period Cloud ARR. We then calculate the Cloud ARR from these same clients as of the current fiscal period, or current period Cloud ARR. We then divide the current period Cloud ARR by the prior period Cloud ARR to calculate the Cloud net revenue retention.

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, amortization of intangible assets, change in fair value of contingent consideration, transaction costs, restructuring and other costs and the income tax effect of non-GAAP adjustments. 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.
ir@intapp.com

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

 
INTAPP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data and percentages)
 
  Three Months
Ended December 31,
  Six Months
Ended December 31,
 
  2024  2023  2024  2023 
Revenues            
SaaS $79,976  $63,117  $156,852  $122,030 
License  28,017   28,135   56,509   56,186 
Professional services  13,216   12,681   26,653   27,292 
Total revenues  121,209   103,933   240,014   205,508 
Cost of revenues            
SaaS  16,292   12,810   31,610   25,521 
License  1,630   1,606   3,382   3,308 
Professional services  14,549   16,353   29,413   33,513 
Total cost of revenues  32,471   30,769   64,405   62,342 
Gross profit  88,738   73,164   175,609   143,166 
Gross margin  73.2%  70.4%  73.2%  69.7%
Operating expenses:            
Research and development  33,325   27,981   65,752   56,477 
Sales and marketing  40,791   35,269   78,551   69,688 
General and administrative  24,808   20,996   48,746   42,048 
Total operating expenses  98,924   84,246   193,049   168,213 
Operating loss  (10,186)  (11,082)  (17,440)  (25,047)
Interest and other income (expense), net  (202)  2,057   3,220   1,114 
Net loss before income taxes  (10,388)  (9,025)  (14,220)  (23,933)
Income tax benefit (expense)  171   (188)  (517)  (601)
Net loss $(10,217) $(9,213) $(14,737) $(24,534)
Net loss per share, basic and diluted $(0.13) $(0.13) $(0.19) $(0.35)
Weighted-average shares used to compute net loss per share, basic and diluted  78,118   70,521   76,861   69,729 
                 
 
INTAPP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
 
  December 31, 2024  June 30, 2024 
Assets      
Current assets:      
Cash and cash equivalents $285,631  $208,370 
Restricted cash  200   200 
Accounts receivable, net  87,596   95,103 
Unbilled receivables, net  13,786   13,300 
Other receivables, net  4,412   2,743 
Prepaid expenses  11,284   9,031 
Deferred commissions, current  14,232   13,907 
Total current assets  417,141   342,654 
Property and equipment, net  20,172   18,944 
Operating lease right-of-use assets  18,426   21,382 
Goodwill  285,907   285,969 
Intangible assets, net  34,351   40,293 
Deferred commissions, noncurrent  18,335   18,495 
Other assets  6,255   5,262 
Total assets $800,587  $732,999 
Liabilities and Stockholders’ Equity      
Current liabilities:      
Accounts payable $16,631  $13,348 
Accrued compensation  35,045   42,066 
Accrued expenses  7,266   12,040 
Deferred revenue, net  234,962   218,923 
Other current liabilities  12,243   14,270 
Total current liabilities  306,147   300,647 
Deferred tax liabilities  1,255   1,336 
Deferred revenue, noncurrent  3,033   3,563 
Operating lease liabilities, noncurrent  17,409   19,605 
Other liabilities  4,353   4,610 
Total liabilities  332,197   329,761 
Stockholders’ equity:      
Common stock  79   75 
Additional paid-in capital  971,631   891,681 
Accumulated other comprehensive loss  (1,401)  (1,336)
Accumulated deficit  (501,919)  (487,182)
Total stockholders’ equity  468,390   403,238 
Total liabilities and stockholders’ equity $800,587  $732,999 
 
 
INTAPP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
 
  Three Months Ended
December 31,
  Six Months Ended
December 31,
 
  2024  2023  2024  2023 
Cash Flows from Operating Activities:            
Net loss $(10,217) $(9,213) $(14,737) $(24,534)
Adjustments to reconcile net loss to net cash provided by operating activities:            
Depreciation and amortization  4,372   3,975   8,839   7,984 
Amortization of operating lease right-of-use assets  1,278   1,152   2,558   2,282 
Accounts receivable allowances  273   803   823   1,228 
Stock-based compensation  25,411   16,508   45,400   35,265 
Change in fair value of contingent consideration  —   (784)  (1,004)  (2,215)
Deferred income taxes  (26)  (104)  (74)  (217)
Other  38   39   76   77 
Changes in operating assets and liabilities:            
Accounts receivable  (23,742)  (10,902)  6,465   12,570 
Unbilled receivables, current  (1,009)  (1,888)  (486)  (5,774)
Prepaid expenses and other assets  (2,433)  (446)  (5,001)  (1,788)
Deferred commissions  (1,832)  (1,189)  (165)  (1,068)
Accounts payable and accrued liabilities  185   9,760   (7,875)  (1,517)
Deferred revenue, net  32,784   4,615   15,509   4,837 
Operating lease liabilities  (1,344)  (768)  (2,675)  (2,339)
Other liabilities  1,501   477   2,032   (1,144)
Net cash provided by operating activities  25,239   12,035   49,685   23,647 
Cash Flows from Investing Activities:            
Purchases of property and equipment  (62)  (213)  (416)  (1,354)
Capitalized internal-use software costs  (1,915)  (1,592)  (3,449)  (3,453)
Business combinations, net of cash acquired  —   —   (897)  — 
Net cash used in investing activities  (1,977)  (1,805)  (4,762)  (4,807)
Cash Flows from Financing Activities:            
Payments for deferred offering costs  —   (148)  —   (781)
Proceeds from stock option exercises  9,666   15,612   32,584   17,936 
Proceeds from employee stock purchase plan  1,970   1,725   1,970   1,725 
Payments of deferred contingent consideration and holdback associated with acquisitions  (1,023)  (2,551)  (2,410)  (2,551)
Net cash provided by financing activities  10,613   14,638   32,144   16,329 
Effect of foreign currency exchange rate changes on cash and cash equivalents  (2,091)  (58)  194   203 
Net increase in cash, cash equivalents and restricted cash  31,784   24,810   77,261   35,372 
Cash, cash equivalents and restricted cash – beginning of period  254,047   141,747   208,570   131,185 
Cash, cash equivalents and restricted cash – end of period $285,831  $166,557  $285,831  $166,557 
 
 

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
December 31,
  Six Months Ended
December 31,
 
  2024  2023  2024  2023 
GAAP gross profit $88,738  $73,164  $175,609  $143,166 
Adjusted to exclude the following:            
Stock-based compensation  2,702   2,018   4,934   3,892 
Amortization of intangible assets  1,509   1,055   3,080   2,110 
Restructuring and other costs  53   —   62   — 
Non-GAAP gross profit $93,002  $76,237  $183,685  $149,168 
Non-GAAP gross margin  76.7%  73.4%  76.5%  72.6%
 

Non-GAAP Operating Expenses

  Three Months Ended
December 31,
  Six Months Ended
December 31,
 
  2024  2023  2024  2023 
GAAP research and development $33,325  $27,981  $65,752  $56,477 
Stock-based compensation  (6,800)  (4,468)  (11,424)  (9,114)
Restructuring and other costs  (113)  —   (162)  — 
Non-GAAP research and development $26,412  $23,513  $54,166  $47,363 
             
             
GAAP sales and marketing $40,791  $35,269  $78,551  $69,688 
Stock-based compensation  (7,232)  (4,888)  (12,970)  (10,227)
Amortization of intangible assets  (1,268)  (1,396)  (2,536)  (2,883)
Non-GAAP sales and marketing $32,291  $28,985  $63,045  $56,578 
             
             
GAAP general and administrative $24,808  $20,996  $48,746  $42,048 
Stock-based compensation  (8,677)  (5,134)  (16,072)  (12,032)
Amortization of intangible assets  (163)  (163)  (326)  (326)
Change in fair value of contingent consideration  —   784   1,004   2,215 
Transaction costs (1)  (530)  (350)  (664)  (678)
Restructuring and other costs  (64)  —   (236)  — 
Non-GAAP general and administrative $15,374  $16,133  $32,452  $31,227 
 

Non-GAAP Operating Income

  Three Months Ended
December 31,
  Six Months Ended
December 31,
 
  2024  2023  2024  2023 
GAAP operating loss $(10,186) $(11,082) $(17,440) $(25,047)
Adjusted to exclude the following:            
Stock-based compensation  25,411   16,508   45,400   35,265 
Amortization of intangible assets  2,940   2,614   5,942   5,319 
Change in fair value of contingent consideration  —   (784)  (1,004)  (2,215)
Transaction costs (1)  530   350   664   678 
Restructuring and other costs  230   —   460   — 
Non-GAAP operating income $18,925  $7,606  $34,022  $14,000 
 

Non-GAAP Net Income

  Three Months Ended
December 31,
  Six Months Ended
December 31,
 
  2024  2023  2024  2023 
GAAP net loss $(10,217) $(9,213) $(14,737) $(24,534)
Adjusted to exclude the following:            
Stock-based compensation  25,411   16,508   45,400   35,265 
Amortization of intangible assets  2,940   2,614   5,942   5,319 
Change in fair value of contingent consideration  —   (784)  (1,004)  (2,215)
Transaction costs (1)  530   350   664   678 
Restructuring and other costs  230   —   460   — 
Income tax effect of non-GAAP adjustments  (1,489)  (710)  (2,513)  (1,125)
Non-GAAP net income $17,405  $8,765  $34,212  $13,388 
             
GAAP net loss per share, basic and diluted $(0.13) $(0.13) $(0.19) $(0.35)
Non-GAAP net income per share, diluted $0.21  $0.11  $0.41  $0.17 
             
Weighted-average shares used to compute GAAP net loss per share, basic and diluted  78,118   70,521   76,861   69,729 
Weighted-average shares used to compute non-GAAP net income per share, diluted  83,910   80,285   82,724   79,926 
 

Free Cash Flow

  Three Months Ended
December 31,
  Six Months Ended
December 31,
 
  2024  2023  2024  2023 
Net cash provided by operating activities $25,239  $12,035  $49,685  $23,647 
Adjusted for the following cash outlay:            
Purchases of property and equipment  (62)  (213)  (416)  (1,354)
Free cash flow (2) $25,177  $11,822  $49,269  $22,293 
 

(1) Consists of acquisition-related transaction costs, costs related to a legal settlement incurred in connection with an acquisition and costs related to certain non-capitalized offering-related expenses.

(2) Beginning with the second quarter ended December 31, 2023, we have excluded capitalized internal-use software costs and cash paid for interest from the calculation of our free cash flow, which we believe better aligns with industry standard. Our free cash flow for prior period presented were recast to conform to the updated methodology and are reflected herein for comparison purposes.

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