Summary
Intapp reported second quarter fiscal 2024 results for the period ended December 31, 2023. Total revenue was $103.93 million, up 22.7% from the prior-year quarter. Gross profit was $73.16 million, up 26.3%, and gross margin rose to 70.4% from 68.4%. The company still posted an operating loss of $11.08 million, up from a loss of $19.43 million, as the loss narrowed. Operating margin improved to -10.7% from -22.9%. Net loss was $9.21 million, up from a loss of $19.75 million, as the loss narrowed. Diluted earnings per share was -$0.13, up from -$0.31. For the six months ended December 31, 2023, revenue was $205.51 million, up 25.1% from the prior-year period.
The quarter showed better cash generation and a larger backlog. Operating cash flow was $12.04 million for the quarter, up 18.8% from the prior-year quarter. For the six months, operating cash flow was $23.65 million, up 77.2%. Capital expenditures were $0.21 million in the quarter, up from $0.03 million a year earlier. Deferred revenue was $197.23 million as of December 31, 2023, up 20.1% from a year earlier. Remaining performance obligations were $447.60 million, up 14.7%. Those metrics point to continuing demand, though the company still relies on new bookings and renewals to support growth.
Operational metrics remained the core of the story. Cloud annual recurring revenue was $256.1 million as of December 31, 2023, up 34% year over year. Total annual recurring revenue was $365.0 million, up 21%. Cloud ARR represented 70% of total ARR, compared with 64% a year earlier. Net revenue retention was 115%, inside the expected range of 113% to 117%. The company served more than 2,400 clients, including 649 with contracts greater than $100,000 of ARR. New client wins included Beringer Capital, Indonesia Investment Authority, Howard Kennedy, IBB Law, and McCabes Lawyers. Intapp also made its solutions available in the Microsoft Azure Marketplace and launched the Rainmaker Genome Project. On a non-GAAP basis, operating profit was $7.6 million, compared with $2.8 million a year earlier. Non-GAAP net income was $8.8 million, compared with $2.2 million. Non-GAAP diluted net income per share was $0.11, compared with $0.03.
Guidance points to continued growth. For the third quarter of fiscal 2024, Intapp guided non-GAAP operating profit of $6.0 million to $7.0 million and non-GAAP diluted net income per share of $0.06 to $0.08. For the full fiscal year 2024, guidance calls for non-GAAP operating profit of $27.0 million to $31.0 million and non-GAAP diluted net income per share of $0.31 to $0.35. Management ties the outlook to new client additions, expansion within existing accounts, and cloud migration. The company did not reconcile those non-GAAP targets to GAAP, citing items such as stock-based compensation and amortization of intangible assets that it cannot forecast without unreasonable effort.
Risks are familiar but real. Intapp cites its ability to sustain growth at or near historical rates, its future profitability, data breaches and unauthorized access to client data, competition in a fast-changing market that includes AI products, a long and variable sales cycle, and economic pressure on professional and financial services clients. It also notes that professional services remain loss making after allocated overhead costs. The balance sheet held $166.4 million of cash and cash equivalents as of December 31, 2023, compared with $130.4 million as of June 30, 2023, and no amounts were borrowed under its $100.0 million revolving credit facility. Intapp will lose emerging growth company status and become a large accelerated filer as of June 30, 2024, which brings added reporting requirements. Its inaugural investor day is set for February 22, 2024.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2024 | Q1 FY2024 | QoQ | Q2 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $103.9M | $101.6M | +2.3% | $84.7M | +22.7% |
| Gross profit | $73.2M | $70.0M | +4.5% | $57.9M | +26.3% |
| Gross margin | 70.4% | 68.9% | +1.5 pp | 68.4% | +2.0 pp |
| Research & development | $28.0M | $28.5M | -1.8% | $23.4M | +19.6% |
| Sales & marketing | $35.3M | $34.4M | +2.5% | $33.5M | +5.2% |
| General & administrative | $21.0M | $21.1M | -0.3% | $20.8M | +1.2% |
| Total operating expenses | $84.2M | $84.0M | +0.3% | $77.3M | +8.9% |
| Operating income (loss) | -$11.1M | -$14.0M | +20.6% | -$19.4M | +43.0% |
| Operating margin | -10.7% | -13.8% | +3.1 pp | -22.9% | +12.3 pp |
| Net income (loss) | -$9.2M | -$15.3M | +39.9% | -$19.8M | +53.4% |
| Net margin | -8.9% | -15.1% | +6.2 pp | -23.3% | +14.5 pp |
| Diluted EPS | -$0.13 | -$0.22 | +$0.09 | -$0.31 | +$0.18 |
Risks
Future growth depends on continued client acceptance of the cloud platform and the ability to win new professional and financial services clients and expand existing accounts. MD&A notes that if clients do not see sufficient return on investment relative to alternatives, net revenue retention could suffer; net revenue retention was 115% as of December 31, 2023, within the expected range of 113% to 117%.
Professional services remain loss making after allocated overhead costs and accounted for 13% of total revenues for the six months ended December 31, 2023. MD&A reports that losses on professional services increased for the three and six months ended December 31, 2023 compared with prior-year periods, offsetting some gross profit improvement.
The company expects to continue substantial research and development and sales and marketing investment and states that operating losses could continue. Research and development expenses increased 31% and sales and marketing expenses increased 7% for the six months ended December 31, 2023; GAAP operating loss was $25.05 million year to date, narrowed from $38.57 million in the prior-year period, but remained a loss.
Because non-affiliate market value exceeded $700 million on December 31, 2023, the company will become a large accelerated filer as of June 30, 2024, will no longer qualify as an emerging growth company, must adopt new accounting standards on public company timelines beginning with the fiscal year 2024 Form 10-K, and must provide an auditor attestation report on internal control over financial reporting under Sarbanes-Oxley Section 404(b).
Billings are subject to seasonality, with billings in the fourth quarter higher than in other quarters, which may cause working capital fluctuations. For the six months ended December 31, 2023, operating cash flow was $23.65 million, up 77.2% from the prior-year period.
SaaS KPIs
All quarters →Cloud ARR
Total ARR
Clients > $100K ARR
Non-GAAP gross margin
Number of Clients
Summary, forecast, risks and KPIs are extracted from Intapp, Inc.'s SEC filings for Q2 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 2, 2026.