Intapp(INTA) - 2024 Q3 - Quarterly Results

Intapp Third Quarter Fiscal Year 2024 Financial Results Q3 FY2024 Performance Highlights Intapp achieved strong Q3 results with significant revenue and cloud ARR growth, improved GAAP and non-GAAP profitability, successful AI product launches, and strategic acquisitions Financial Highlights Q3 FY2024 saw 20% total revenue growth to $110.6 million and 33% cloud ARR growth to $274.2 million, with narrowed GAAP losses and increased non-GAAP profits Q3 FY2024 Key Financial Metrics (YoY) | Metric | Q3 FY2024 (Millions) | Q3 FY2023 (Millions) | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $110.6M | $92.0M | +20% | | SaaS and Support Revenue | $80.8M | $66.1M | +22% | | Cloud ARR | $274.2M | - | +33% | | Total ARR | $382.7M | - | +21% | | GAAP Operating Loss | $(7.4)M | $(18.2)M | N/A | | Non-GAAP Operating Profit | $11.2M | $2.9M | +286% | | GAAP Net Loss per Share | $(0.09) | $(0.28) | N/A | | Non-GAAP Diluted Net Income per Share | $0.14 | $0.03 | +367% | - Cloud ARR now constitutes 72% of Total ARR, an increase from 65% in the same period last year, indicating a successful shift towards cloud-based services[5] Balance Sheet and Cash Flow Highlights Cash and cash equivalents increased to $187.4 million by March 31, 2024, and cash flow from operations more than doubled to $40.2 million Key Balance Sheet and Cash Flow Items | Metric | As of Mar 31, 2024 (Millions) | As of Jun 30, 2023 (Millions) | | :--- | :--- | :--- | | Cash and cash equivalents | $187.4M | $130.4M | | Metric | Nine Months Ended Mar 31, 2024 (Millions) | Nine Months Ended Mar 31, 2023 (Millions) | | Cash provided by operating activities | $40.2M | $16.8M | Business Highlights Intapp expanded its client base to over 2,450 firms, maintained a 115% net revenue retention rate, launched new AI capabilities, and acquired delphai - As of March 31, 2024, the company served over 2,450 clients, with 673 having contracts greater than $100,000 of ARR[7] - The trailing twelve months' net revenue retention rate was 115%, within the expected range of 113% to 117%[7] - Strategic initiatives included launching new vertical AI capabilities like Intapp Assist for DealCloud[7] - Acquiring AI software company delphai to enhance its data foundation[7] - Adding new clients such as Alix Partners, DAC Beachcroft, and Warner Norcross + Judd[7] Fiscal Year 2024 Outlook Intapp provided Q4 and full FY2024 guidance, projecting continued revenue growth and non-GAAP profitability Q4 and Full Fiscal Year 2024 Guidance | Metric | Q4 FY2024 Outlook (Millions) | Full FY2024 Outlook (Millions) | | :--- | :--- | :--- | | SaaS and support revenue | $83.5 - $84.5 | $314.5 - $315.5 | | Total revenue | $111.0 - $112.0 | $427.0 - $428.0 | | Non-GAAP operating profit | $10.5 - $11.5 | $35.5 - $36.5 | | Non-GAAP diluted net income per share | $0.11 - $0.13 (per share) | $0.42 - $0.44 (per share) | Consolidated Financial Statements (GAAP) Unaudited consolidated financial statements detail performance, showing 20% revenue growth, stronger assets, and improved cash from operations Condensed Consolidated Statements of Operations Q3 FY2024 total revenues grew 20% to $110.6 million, with SaaS and support up 22%, gross margin at 72.4%, and GAAP operating loss narrowed to $(7.4) million Q3 Statement of Operations Summary (in thousands) | Line Item | Three Months Ended Mar 31, 2024 (Thousands) | Three Months Ended Mar 31, 2023 (Thousands) | | :--- | :--- | :--- | | Total revenues | $110,639 | $92,024 | | Gross profit | $80,058 | $63,534 | | Gross margin | 72.4% | 69.0% | | Operating loss | $(7,446) | $(18,245) | | Net loss | $(6,890) | $(18,147) | | Net loss per share | $(0.09) | $(0.28) | Condensed Consolidated Balance Sheets As of March 31, 2024, total assets grew to $684.2 million, driven by increased cash to $187.4 million, with stable liabilities and higher stockholders' equity Balance Sheet Summary (in thousands) | Line Item | March 31, 2024 (Thousands) | June 30, 2023 (Thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $187,426 | $130,377 | | Total current assets | $308,141 | $254,839 | | Total assets | $684,202 | $628,907 | | Deferred revenue, net (current) | $195,502 | $191,042 | | Total liabilities | $298,230 | $287,699 | | Total stockholders' equity | $385,972 | $341,208 | Condensed Consolidated Statements of Cash Flows Net cash from operating activities for the nine months ended March 31, 2024, significantly increased to $40.2 million, driven by a smaller net loss and working capital changes Cash Flow Summary (in thousands) | Line Item | Nine Months Ended Mar 31, 2024 (Thousands) | Nine Months Ended Mar 31, 2023 (Thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $40,152 | $16,834 | | Net cash used in investing activities | $(6,945) | $(6,430) | | Net cash provided by (used in) financing activities | $23,580 | $(10,327) | Reconciliation of GAAP to Non-GAAP Financial Measures This section reconciles GAAP to non-GAAP metrics, detailing adjustments for stock-based compensation and amortization, leading to higher non-GAAP profitability Non-GAAP Operating Profit Reconciliation Q3 FY2024 non-GAAP operating profit was $11.2 million, up from $2.9 million, primarily adjusted for $14.0 million in stock-based compensation and $2.6 million in amortization Q3 GAAP Operating Loss to Non-GAAP Operating Profit (in thousands) | Line Item | Three Months Ended Mar 31, 2024 (Thousands) | Three Months Ended Mar 31, 2023 (Thousands) | | :--- | :--- | :--- | | GAAP operating loss | $(7,446) | $(18,245) | | Stock-based compensation | $14,026 | $18,759 | | Amortization of intangible assets | $2,615 | $2,505 | | Other adjustments | $2,013 | $(139) | | Non-GAAP operating profit | $11,208 | $2,880 | Non-GAAP Net Income Reconciliation Q3 FY2024 non-GAAP net income was $11.2 million ($0.14 per diluted share), up from $2.2 million, adjusted from GAAP net loss for stock-based compensation and amortization Q3 GAAP Net Loss to Non-GAAP Net Income (in thousands) | Line Item | Three Months Ended Mar 31, 2024 (Thousands) | Three Months Ended Mar 31, 2023 (Thousands) | | :--- | :--- | :--- | | GAAP net loss | $(6,890) | $(18,147) | | Total non-GAAP adjustments | $18,654 | $21,125 | | Income tax effect of adjustments | $(611) | $(761) | | Non-GAAP net income | $11,153 | $2,217 | Important Disclosures and Definitions This section outlines forward-looking statement risks and defines key non-GAAP financial measures and operational metrics used in the report Forward-Looking Statements Forward-looking statements on financial outlook and growth strategy are subject to risks including sustained growth, economic conditions, competition, and acquisition integration - Key risks include ability to sustain growth, effects of global events, data security, managing economic downturns, competition (including in AI), and integration of acquisitions[13] Non-GAAP Financial Measures and Other Metrics This report utilizes non-GAAP measures, excluding items like stock-based compensation, and defines key operational metrics for performance evaluation - Total ARR: Annualized recurring value of all active SaaS and on-premise subscription license contracts at period end[16] - Cloud ARR: Portion of Total ARR derived from active SaaS contracts[16] - Net Revenue Retention Rate: Current period's ARR from a client cohort divided by the same cohort's ARR twelve months prior[17]