Summary
Intapp reported total revenue of $92.0 million for the third quarter of fiscal 2023, up 32% from the prior-year quarter. Year-to-date revenue reached $256.3 million, up 30.4%. Gross profit rose 45.5% to $63.5 million, and gross margin expanded to 69.0%, up 6.4 percentage points. For the nine-month period, gross profit was $175.6 million and gross margin was 68.5%, up 5.1 percentage points. The company still posted a GAAP operating loss of $18.2 million, an improvement of $10.5 million from the prior-year quarter. Year-to-date operating loss was $56.8 million, an improvement of $19.8 million. GAAP net loss was $18.1 million, or $0.28 per diluted share, an improvement of $10.6 million and $0.19 per share, respectively. Year-to-date net loss was $58.0 million, or $0.91 per diluted share, an improvement of $20.1 million and $0.37 per share. Operating margin was negative 19.8%, up 21.4 percentage points, and year-to-date operating margin was negative 22.2%, up 16.8 percentage points. On a non-GAAP basis, Intapp generated operating profit of $2.9 million and net income of $2.2 million, or $0.03 per diluted share, reversing non-GAAP operating and net losses in the prior-year quarter. The gap between GAAP and non-GAAP results reflects stock-based compensation and amortization of intangible assets.
Annual recurring revenue metrics showed continued cloud momentum. Cloud ARR was $206.3 million as of March 31, 2023, up 40% year over year, and total ARR was $315.6 million, up 24%. Cloud ARR represented 65% of total ARR, compared with 58% a year earlier. Deferred revenue was $167.7 million, up 36.0% from the prior-year quarter, and remaining performance obligations were $380.3 million, up 26.5%. The company served more than 2,250 clients, including 572 that each generated more than $100,000 of ARR. Net revenue retention for the trailing twelve months was within the recently increased range of 113% to 117%.
Cash generation improved. Operating cash flow was $3.5 million in the quarter, up $5.4 million from the prior-year quarter. For the nine months ended March 31, 2023, operating cash flow was $16.8 million, up $12.3 million. Capital expenditures were $0.4 million in the quarter, up 115.8%, and $2.1 million for the nine-month period, up 631.0%. The company reports operating cash flow, not free cash flow.
Guidance points to continued expansion. For the fourth quarter of fiscal 2023, Intapp guided to non-GAAP operating profit of $1.5 million to $2.5 million and non-GAAP diluted net income per share of $0.00 to $0.02. For the full fiscal year 2023, non-GAAP operating profit guidance is $9.0 million to $10.0 million and non-GAAP diluted net income per share guidance is $0.07 to $0.09. The company also issued revenue guidance for both the fourth quarter and the full fiscal year. It did not provide a quantitative reconciliation of its forward-looking non-GAAP operating profit and non-GAAP diluted net income per share to GAAP because certain reconciling items, including stock-based compensation and amortization of intangible assets, are highly variable.
Risks remain material. Professional services are still loss making after allocated overhead costs, and Intapp says operating losses could continue as it invests in growth. The company flags the length and variability of its sales cycle, competition in highly competitive markets, data breaches or unauthorized access to client data, and economic or market downturns that could hurt demand from financial services clients. Inflationary pressures, volatility in the financial services industry, and the effects of Russia's invasion of Ukraine also appear in the risk list. Intapp continues to monitor COVID-19 and has adopted a hybrid work model, which led to a reassessment of facilities needs and a lease modification and impairment charge in the nine-month period. The company also maintains a full valuation allowance on its federal and state deferred tax assets.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2023 | Q2 FY2023 | QoQ | Q3 FY2022 | YoY |
|---|---|---|---|---|---|
| Revenue | $92.0M | $84.7M | +8.7% | $69.7M | +32.1% |
| Gross profit | $63.5M | $57.9M | +9.7% | $43.7M | +45.5% |
| Gross margin | 69.0% | 68.4% | +0.7 pp | 62.7% | +6.4 pp |
| Research & development | $25.3M | $23.4M | +8.1% | $20.4M | +23.8% |
| Sales & marketing | $34.9M | $33.5M | +4.2% | $28.8M | +21.5% |
| General & administrative | $21.6M | $20.8M | +3.9% | $23.2M | -7.0% |
| Total operating expenses | $81.8M | $77.3M | +5.7% | $72.4M | +13.0% |
| Operating income (loss) | -$18.2M | -$19.4M | +6.1% | -$28.7M | +36.4% |
| Operating margin | -19.8% | -22.9% | +3.1 pp | -41.2% | +21.4 pp |
| Net income (loss) | -$18.1M | -$19.8M | +8.1% | -$28.7M | +36.8% |
| Net margin | -19.7% | -23.3% | +3.6 pp | -41.3% | +21.5 pp |
| Diluted EPS | -$0.28 | -$0.31 | +$0.03 | — | — |
Risks
All of the company's sales are to clients in the professional and financial services industry, and these clients are highly regulated, subject to intense competition, and impacted by changes in general economic and market conditions. Industry consolidation or competing technology could reduce the number of clients or the services demanded.
On March 10, 2023, the FDIC was appointed receiver of Silicon Valley Bank, and the company maintained a depository relationship with SVB for a relatively small amount of cash and regained full access shortly thereafter. Broader banking concerns could cause market-wide liquidity shortages and impair access to financing.
Inflation has risen significantly worldwide, and U.S. benchmark interest rate increases could increase market volatility and adversely affect clients in professional and financial services. Inflation could also push up labor and employee compensation costs.
Adverse economic and political conditions, including financial services volatility, could result in significant decreases in demand or lengthened sales cycles, including delay or cancellation of projects and reduced IT spending. Clients may reduce seats or terminate or renegotiate contracts.
Clients in professional and financial services are highly regulated, and changes in applicable laws and regulations could significantly impact required software functionality and require significant resources to keep solutions compliant.
Future growth depends on winning new professional and financial services clients and expanding within the existing base, primarily through continued acceptance of the cloud platform. Adding clients depends on sales personnel, marketing, and convincing decision makers to choose Intapp over point, internally developed, or horizontal solutions.
Trailing twelve months net revenue retention as of March 31, 2023 was within the recently increased range of 113% to 117%. If clients do not see return on investment relative to other software alternatives, net revenue retention could suffer and operating results may be adversely affected.
Professional services are currently loss making after allocated overhead costs for facilities and IT and accounted for 14% of total revenues during the nine months ended March 31, 2023. Demand and the mix of services provided by the company versus third-party implementation partners could affect margins.
In response to Russia's invasion of Ukraine, the company ended all work performed by contract resources in Russia and Belarus and relocated resources, causing a minor increase in research and development expenses from higher labor rates and relocation costs.
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 Q3 FY2023 (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.