Summary
Intapp opened fiscal 2025 with faster revenue growth and a narrower GAAP loss. Total revenue in the first quarter ended September 30, 2024 was $118.8 million, up 17% from the prior-year quarter. Gross profit was $86.9 million, up 24.1%, and gross margin rose to 73.1% from 68.9%, up 4.2 percentage points. The cloud mix continued to expand. Cloud ARR was $309.1 million as of September 30, 2024, up 27% year over year, while total ARR was $417.2 million, up 19% from $350.1 million as of September 30, 2023. Cloud ARR represented 74% of total ARR as of September 30, 2024, compared with 69% as of September 30, 2023. Cloud net revenue retention was 119% as of September 30, 2024.
The profit picture improved even as the company remained GAAP unprofitable. Operating loss was $7.3 million, narrowed from $14.0 million in the prior-year quarter. Operating margin was -6.1%, up 7.6 percentage points from -13.7%. Net loss was $4.5 million, narrowed from $15.3 million. Net loss per share was $(0.06), narrowed from $(0.22). On a non-GAAP basis, operating income was $15.1 million, compared with $6.4 million, and net income was $16.8 million, compared with $4.6 million. Non-GAAP diluted net income per share was $0.21, compared with $0.06. The gap between GAAP and non-GAAP results reflects large stock-based compensation and amortization of intangible assets, which the company excludes from its non-GAAP measures. Cash generation was strong. Operating cash flow was $24.4 million, up 110.5% from $11.6 million. Free cash flow, a non-GAAP measure, was $24.1 million, compared with $10.5 million. Capital expenditures were $0.4 million, down 69.0% from $1.1 million.
Backlog and retention metrics point to a durable subscription model. Deferred revenue was $205.2 million, up 6.5% from the prior-year quarter. Remaining performance obligations were $549.4 million, up 31.7%. The client base exceeded 2,600, with 707 clients each having contracts greater than $100,000 of ARR as of September 30, 2024, compared with 626 as of September 30, 2023. Total net revenue retention was 114%, which management said was within its expected range of 113% to 117%. Intapp also pointed to new client wins including Crete Professionals Alliance, Alpaca Real Estate, and NORD Holding. Product momentum included Intapp Assist for Terms, which expands generative AI functionality to compliance solutions, and DealCloud was named Deal Origination Solution of the Year at the 2024 Private Equity Wire U.S. Credit Awards.
Management gave guidance for the second quarter and the full fiscal year 2025. For the second quarter, Intapp guided to non-GAAP operating income of $14.0 million to $15.0 million and non-GAAP diluted net income per share of $0.15 to $0.17. For the full fiscal year 2025, the company guided to non-GAAP operating income of $61.5 million to $65.5 million and non-GAAP diluted net income per share of $0.73 to $0.77. The guidance excludes estimated stock-based compensation of $23.3 million for the second quarter and $85.4 million for the full year, plus amortization of intangible assets of $2.9 million for the second quarter and $11.2 million for the full year. On a per-share basis, the exclusions include stock-based compensation of $0.28 for the second quarter and $1.02 for the full year, and amortization of intangible assets of $0.04 for the second quarter and $0.13 for the full year. The company noted that it cannot reasonably reconcile certain items, including change in fair value of contingent consideration, transaction costs, restructuring and other costs, and income tax effects, so GAAP results could differ materially.
Risks remain material. Intapp cited its ability to continue growth at or near historical rates, future financial performance and profitability, global economic conditions, and volatility in the financial services industry. Other risks include data breaches or unauthorized access to client data, the length and variability of the sales cycle, attracting and retaining clients and talent, competition in highly competitive markets including AI products, complexity from international operations, integration of acquired businesses, future indebtedness and credit market conditions, liquidity, and protection of intellectual property. The company also faces execution risk as it pushes more clients to cloud solutions and de-emphasizes professional services revenue.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2025 | Q4 FY2024 | QoQ | Q1 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $118.8M | $114.4M | +3.9% | $101.6M | +17.0% |
| Gross profit | $86.9M | $83.6M | +3.9% | $70.0M | +24.1% |
| Gross margin | 73.1% | 73.1% | -0.0 pp | 68.9% | +4.2 pp |
| Research & development | $32.4M | $29.8M | +8.7% | $28.5M | +13.8% |
| Sales & marketing | $37.8M | $33.2M | +13.6% | $34.4M | +9.7% |
| General & administrative | $23.9M | $20.3M | +18.1% | $21.1M | +13.7% |
| Total operating expenses | $94.1M | $83.3M | +12.9% | $84.0M | +12.1% |
| Operating income (loss) | -$7.3M | $302.0K | -2502.0% | -$14.0M | +48.1% |
| Operating margin | -6.1% | 0.3% | -6.4 pp | -13.8% | +7.6 pp |
| Net income (loss) | -$4.5M | -$597.0K | -657.1% | -$15.3M | +70.5% |
| Net margin | -3.8% | -0.5% | -3.3 pp | -15.1% | +11.3 pp |
| Diluted EPS | -$0.06 | -$0.01 | -$0.05 | -$0.22 | +$0.16 |
Risks
The Risk Factors section states there have been no material changes to the risks disclosed in the FY2024 Form 10-K, and the MD&A notes that operating losses could continue in the future as the company keeps investing in growth. The operating loss narrowed to $7.25 million in FY2025 Q1 from $13.96 million in the prior-year quarter, and net loss narrowed to $4.52 million from $15.32 million, so sustained losses remain the base case.
MD&A states that over time, as the company focuses on new SaaS sales and migrates license clients to SaaS, license revenues are expected to decrease as a percentage of total revenues, and the company is deliberately de-emphasizing professional services revenue with third-party implementation partners. Professional services revenues decreased 8% to $13.4 million in FY2025 Q1 versus the prior-year quarter, and professional services gross profit remained negative at -$1.4 million.
MD&A identifies market adoption of the cloud platform as a key factor affecting performance, warning that if clients do not see sufficient return on investment relative to point, internally developed, or horizontal alternatives, net revenue retention could suffer. Cloud ARR rose 27% to $309.1 million and represented 74% of ARR as of September 30, 2024, while trailing twelve months' NRR of 114% sits inside but near the low end of the company's expected 113% to 117% range.
MD&A states that future capital requirements depend on many factors and that the company may need to seek additional equity or debt financing, and that failure to raise capital when desired or on acceptable terms could adversely affect the business. As of September 30, 2024 the company had $253.8 million in cash and cash equivalents and no amounts borrowed under the $100.0 million JPMorgan revolving credit facility.
SaaS KPIs
All quarters →Cloud ARR
Total ARR
Cloud ARR as % of total ARR
Total clients
Non-GAAP gross margin
Non-GAAP operating income
Remaining Performance Obligations
SaaS revenue
Free cash flow
Summary, forecast, risks and KPIs are extracted from Intapp, Inc.'s SEC filings for Q1 FY2025 (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.