Intapp(US:INTA)2024-11-07 21:06Revenue and Financial Performance - Total revenues for the three months ended September 30, 2024, were $118.805 million, compared to $101.575 million for the same period in 2023[7] - SaaS revenue increased to $76.876 million in Q3 2024, up from $58.913 million in Q3 2023[7] - Total revenues for the three months ended September 30, 2024, were $118.8 million, compared to $101.6 million in the same period in 2023, representing a 16.9% increase[19] - U.S. revenues increased to $78.6 million in 2024 from $69.9 million in 2023, a 12.5% growth, while U.K. revenues grew by 35.8% to $20.0 million from $14.7 million[19] - Total revenues increased by $17.2 million, or 17%, in Q3 2024 compared to Q3 2023[85] - SaaS revenues increased by $18.0 million, or 30%, in Q3 2024 compared to Q3 2023, driven by new client acquisitions and expansion of existing clients[86] - License revenues grew by $0.4 million, or 2%, in Q3 2024 compared to Q3 2023[86] - Professional services revenues decreased by $1.2 million, or 8%, in Q3 2024 compared to Q3 2023 due to a shift in resource delivery to third-party implementation partners[86] - Total revenues for the three months ended September 30, 2024 were $118.8 million with a gross margin of 73%[60] Net Loss and Profitability - Net loss for Q3 2024 was $4.520 million, an improvement from a net loss of $15.321 million in Q3 2023[7] - Comprehensive loss for Q3 2024 was $4.025 million, compared to $15.612 million in Q3 2023[9] - Net loss for the three months ended September 30, 2023 was $15.3 million[11] - Operating loss improved to $7.3 million in Q3 2024 from $14.0 million in Q3 2023[83] - Net loss decreased to $4.5 million in Q3 2024 from $15.3 million in Q3 2023[83] - Gross profit increased by $16.9 million, or 24%, in Q3 2024 compared to Q3 2023[88] - Gross profit increased by $16.9 million, or 24%, for the three months ended September 30, 2024, driven by SaaS revenue growth and cost reductions[92] Cash and Cash Equivalents - Cash and cash equivalents increased to $253.847 million as of September 30, 2024, compared to $208.370 million as of June 30, 2024[6] - Cash, cash equivalents and restricted cash as of September 30, 2023 was $141.7 million[12] - Total cash and cash equivalents as of September 30, 2024 were $253.8 million[60] - Cash and cash equivalents as of September 30, 2024, totaled $253.8 million, held with high credit quality financial institutions, including money market funds[110] Accounts Receivable and Deferred Revenue - Accounts receivable decreased to $62.053 million as of September 30, 2024, from $95.103 million as of June 30, 2024[6] - Deferred revenue decreased to $203.114 million as of September 30, 2024, from $218.923 million as of June 30, 2024[6] - Deferred commissions were $30.7 million as of September 30, 2024, down from $32.4 million as of June 30, 2024, with amortization expense of $4.0 million for the quarter[20] - Unbilled accounts receivable decreased to $12.98 million as of September 30, 2024, from $13.36 million as of June 30, 2024, while deferred revenue, net, decreased to $205.2 million from $222.5 million[21] - The company recognized $88.5 million in revenue from deferred revenue for the three months ended September 30, 2024, compared to $65.3 million in the same period in 2023[21] - Remaining performance obligations as of September 30, 2024, were $549.4 million, with 56% expected to be recognized within the next 12 months[22] - Remaining performance obligations as of September 30, 2024 were $549.4 million[60] Operating Expenses - Total operating expenses for Q3 2024 were $94.125 million, up from $83.967 million in Q3 2023[7] - Research and development expenses increased to $32.427 million in Q3 2024, compared to $28.496 million in Q3 2023[7] - Research and development expenses increased by $3.9 million, or 14%, primarily due to higher personnel and contractor costs[93] - Sales and marketing expenses increased by $3.3 million, or 10%, driven by higher personnel costs and sales commissions[94] - General and administrative expenses increased by $2.9 million, or 14%, primarily due to higher personnel-related costs[95] - Cost of SaaS revenues increased by $2.6 million, or 21%, in Q3 2024 compared to Q3 2023, primarily due to higher amortization, overhead, and personnel costs[89] - Cost of professional services revenues decreased by $2.3 million, or 13%, in Q3 2024 compared to Q3 2023, mainly due to reduced personnel-related costs[91] Stockholders' Equity and Stock-Based Compensation - Stockholders' equity increased to $442.120 million as of September 30, 2024, from $403.238 million as of June 30, 2024[6] - Total stockholders' equity as of September 30, 2023 was $346.7 million[11] - Stock-based compensation for the three months ended September 30, 2023 was $18.8 million[11] - Stock-based compensation expense totaled $19.9 million, or 17% of total revenues, in Q3 2024[84] - Stock options exercised during the three months ended September 30, 2024 had a total intrinsic value of $67.3 million and generated $22.9 million in proceeds[47] - PSUs granted during the three months ended September 30, 2024 had a grant fair value of $38.34 per share[48] Cash Flow and Financing Activities - Net cash provided by operating activities for the three months ended September 30, 2023 was $11.6 million[12] - Operating cash flow for the three months ended September 30, 2024 was $24.4 million[60] - Net cash provided by operating activities was $24.4 million for the three months ended September 30, 2024, up from $11.6 million in the same period in 2023[99] - Net cash used in investing activities was $2.8 million, primarily for capitalized internal-use software costs and property and equipment[101] - Net cash provided by financing activities was $21.5 million, primarily from stock option exercises[102] - The company had cash and cash equivalents of $253.8 million as of September 30, 2024[98] - No amounts have been borrowed under the $100 million JPMorgan Credit Facility as of September 30, 2024[104] - The company has a senior secured revolving credit facility of up to $100.0 million, with no outstanding loan balance as of September 30, 2024[110] - Future borrowings under the credit facility will accrue interest at a variable rate based on SOFR plus a spread ranging from 1.75% to 2.50% or an alternate base rate plus a spread ranging from 0.75% to 1.50%[110] Intangible Assets and Goodwill - Goodwill increased by $0.5 million due to foreign currency translation adjustments, reaching $286.5 million as of September 30, 2024[24] - Intangible assets, net, decreased to $37.3 million as of September 30, 2024, from $40.3 million as of June 30, 2024, with amortization expense of $3.0 million for the quarter[26][28] - Capitalized internal-use software costs were $1.6 million for the three months ended September 30, 2024, with amortization expense of $0.9 million[35] - Capitalized cloud computing implementation costs were $0.8 million for the three months ended September 30, 2024, with amortization expense of $0.1 million[36] Contingent Consideration and Liabilities - The fair value of contingent consideration liabilities was $0.3 million as of September 30, 2024, down from $2.6 million as of June 30, 2024, due to payments and adjustments[32][33] - Contingent consideration liabilities decreased from $6,681 thousand to $5,250 thousand as of September 30, 2023, with a payment of $1,387 thousand and a change of $920 thousand during the three months ended September 30, 2024[34] Lease and Operating Costs - Operating lease costs increased from $1,500 thousand to $1,705 thousand for the three months ended September 30, 2024[38] - The weighted-average remaining lease term decreased from 6.0 years to 5.2 years as of September 30, 2024[39] - Cash payments for operating lease liabilities increased from $1,695 thousand to $2,151 thousand for the three months ended September 30, 2024[40] Client and Revenue Concentration - No client individually accounted for 10% or more of the company's revenues for the three months ended September 30, 2023[17] - One client accounted for 16% of the company's total accounts receivable as of June 30, 2024[17] - Clients representing more than 10% of accounts receivable balance were zero as of September 30, 2024, compared to one as of June 30, 2024[108] ARR and Cloud Metrics - ARR increased by 19% to $417.2 million as of September 30, 2024 compared to $350.1 million as of September 30, 2023[65] - Cloud ARR increased by 27% to $309.1 million as of September 30, 2024 compared to $242.5 million as of September 30, 2023[66] - Trailing twelve months' NRR as of September 30, 2024 was 114%[67] - Trailing twelve months' Cloud NRR as of September 30, 2024 was 119%[68] - The company had over 2,600 clients as of September 30, 2024[69] - The company had 707 clients with contracts greater than $100,000 of ARR as of September 30, 2024[69] Inflation and Interest Rate Impact - The company does not believe inflation has had a material effect on its business, results of operations, or financial condition[109] - A hypothetical 100 basis points change in interest rates would not materially impact the company's operating results or the fair value of cash and cash equivalents over the next twelve months[110] - The company's exposure to foreign currency exchange risk is primarily related to accounts receivable, cash balances, employee compensation obligations, and lease liabilities denominated in non-U.S. dollar currencies[107] - A hypothetical 10% change in foreign currency exchange rates would result in an immaterial gain or loss on operating results over the next twelve months[107] Internal Controls and Financial Reporting - The company's disclosure controls and procedures were effective at the reasonable assurance level as of the end of the period covered by the Quarterly Report[111] - No changes in internal control over financial reporting were identified during the quarter ended September 30, 2024, that materially affected or are likely to materially affect the company's internal control[112] Cloud Services Commitment - The company has $90.9 million remaining on its $110.0 million cloud services commitment with Microsoft as of September 30, 2024[42] Acquisition and Working Capital Adjustments - The company paid $0.9 million for working capital adjustments related to the acquisition of Transform Data International B.V. during the quarter[23]