Summary
Intapp opened fiscal 2024 with a stronger top line and a smaller loss. Total revenue for the first quarter ended September 30, 2023 was $101.6 million, up 27.7% year over year. Gross profit rose 29.1% to $70.0 million, and gross margin reached 68.9%, up 0.8 percentage points. The operating loss was $14.0 million, an improvement of 27.1%, and the operating margin was -13.7%, up 10.3 percentage points. Net loss was $15.3 million, an improvement of 23.6%. Diluted loss per share was $0.22, an improvement of $0.10. On a non-GAAP basis, gross profit was $72.9 million and gross margin was 71.8%.
Cloud momentum drove the quarter. Cloud ARR was $242.5 million as of September 30, 2023, up 38% year over year, and total ARR was $350.1 million, up 23%. Cloud ARR represented 69% of total ARR, compared with 62% a year earlier. Net revenue retention for the trailing twelve months landed within the company's expected range of 113% to 117%. Intapp served more than 2,350 clients, including 626 that each generated more than $100,000 of ARR, up from 522 a year earlier. Deferred revenue was $192.6 million, up 26.2%, and remaining performance obligations were $417.2 million, up 17.3%. Non-GAAP operating profit was $6.4 million, non-GAAP net income was $4.6 million, and non-GAAP diluted net income per share was $0.06, compared with $1.8 million, $0.9 million, and $0.01 in the prior-year quarter.
Cash generation improved. Operating cash flow was $11.6 million, up 261.2% year over year. Capital expenditures were $1.1 million, down 31.6%. The company reported no borrowings under its $100.0 million JPMorgan revolving credit facility as of September 30, 2023, and it remained in compliance with all covenants. Management said operating losses could continue as it invests in growth. Professional services remains loss making after allocated overhead costs, and billings are seasonal, with the fourth quarter typically higher than other quarters.
Guidance points to continued growth. For the second quarter of fiscal 2024, Intapp expects non-GAAP operating profit of $5.0 million to $6.0 million and non-GAAP diluted net income per share of $0.04 to $0.06. For the full fiscal year 2024, the company guided non-GAAP operating profit to $24.5 million to $28.5 million and non-GAAP diluted net income per share to $0.25 to $0.29. Intapp does not provide a quantitative reconciliation of non-GAAP guidance to GAAP because items such as stock-based compensation and amortization of intangible assets are highly variable.
Risks remain familiar for a high-growth software vendor. The company's forward-looking statements flag its ability to sustain growth at or near historical rates, its future financial performance and path to profitability, the effect of global events on the economy and on client demand, and the possibility of data breaches or unauthorized access to client data. Other named risks include inflationary pressures, economic and market downturns, volatility in the financial services industry, the length and variability of the sales cycle, competition from point solutions and AI products, complexity in international operations, conditions in credit markets, and the sufficiency of cash to meet liquidity needs. Intapp also notes that no single client represented more than 10% of total revenues in the quarter.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2024 | Q4 FY2023 | QoQ | Q1 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $101.6M | $94.6M | +7.4% | $79.5M | +27.7% |
| Gross profit | $70.0M | $63.8M | +9.8% | $54.2M | +29.1% |
| Gross margin | 68.9% | 67.4% | +1.5 pp | 68.2% | +0.8 pp |
| Research & development | $28.5M | $25.5M | +11.8% | $19.7M | +44.8% |
| Sales & marketing | $34.4M | $32.4M | +6.3% | $31.3M | +9.9% |
| General & administrative | $21.1M | $18.3M | +14.9% | $20.4M | +3.1% |
| Total operating expenses | $84.0M | $76.2M | +10.2% | $73.3M | +14.5% |
| Operating income (loss) | -$14.0M | -$12.4M | -12.2% | -$19.1M | +27.1% |
| Operating margin | -13.8% | -13.2% | -0.6 pp | -24.1% | +10.3 pp |
| Net income (loss) | -$15.3M | -$11.5M | -33.6% | -$20.1M | +23.6% |
| Net margin | -15.1% | -12.1% | -3.0 pp | -25.2% | +10.1 pp |
| Diluted EPS | -$0.22 | -$1.08 | +$0.86 | -$0.32 | +$0.10 |
Risks
MD&A states future growth depends on continued acceptance of the cloud platform and on convincing key decision makers at professional and financial services firms to choose Intapp over point solutions, internally developed tools and horizontal solutions. If clients do not continue to see return on investment relative to other software alternatives, net revenue retention could suffer and operating results may be adversely affected.
MD&A discloses that professional services are currently loss making after allocated overhead costs and accounted for 14% of total revenues in the quarter ended September 30, 2023, up from 13% in the prior-year quarter. Professional services gross profit was negative $2.5 million in the quarter, with the loss widening by $0.09 million versus the prior-year quarter.
MD&A states operating losses could continue in the future as the company continues to invest in growth. GAAP operating loss was $13.96 million in the quarter ended September 30, 2023, though the loss narrowed from $19.15 million in the prior-year quarter, and net loss narrowed to $15.32 million from $20.05 million.
MD&A notes future capital requirements depend on revenue growth and the timing and extent of investment, and that the company may need to seek additional equity or debt financing, including for acquisitions. If it is unable to raise additional capital when desired or on acceptable terms, business, financial condition and results of operations could be adversely affected.
MD&A states the company will continue to evaluate acquisition opportunities to extend its platform, broaden market leadership and add clients, which carries integration and execution risk. The prior-year quarter included a $9.3 million final contingent consideration payment related to the Repstor acquisition, and general and administrative expense in the current quarter benefited from a $1.4 million change in fair value of contingent consideration.
SaaS KPIs
All quarters →Cloud ARR
Total ARR
Cloud ARR as % of total ARR
Total clients
Clients > $100K ARR
Non-GAAP gross margin
Non-GAAP Operating Profit
Summary, forecast, risks and KPIs are extracted from Intapp, Inc.'s SEC filings for Q1 FY2024 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.