Summary
Intapp closed fiscal 2024 third quarter with revenue of $110.64 million, up 20.2% from $92.02 million in the prior-year quarter. Gross profit rose 26.0% to $80.06 million, and gross margin expanded to 72.4% from 69.0%, a 3.3 percentage point gain. The operating loss narrowed to $7.45 million from $18.24 million, while the net loss narrowed to $6.89 million from $18.15 million. Diluted EPS improved to -$0.09 from -$0.28. Operating margin was -6.7%, compared with -19.8%, an improvement of 13.1 percentage points. Those are meaningful swings for a company still posting GAAP losses.
The non-GAAP picture turned solidly profitable. Non-GAAP operating profit was $11.2 million, up from $2.9 million. Non-GAAP net income was $11.2 million, up from $2.2 million. Non-GAAP diluted net income per share was $0.14, compared with $0.03. Cash generation also accelerated. Operating cash flow was $16.50 million in the quarter, up 373.3% from $3.49 million. For the first nine months of fiscal 2024, operating cash flow was $40.15 million, up 138.5% from $16.83 million. Capital expenditures were $0.37 million in the quarter, up 5.1% from $0.36 million. Deferred revenue stood at $197.33 million, up 17.6% from $167.74 million. Remaining performance obligations were $467.90 million, up 23.0% from $380.30 million. For the nine months, revenue reached $316.15 million, up 23.4%, and gross profit reached $223.22 million, up 27.1%. The nine-month net loss narrowed to $31.42 million from $57.96 million, and nine-month diluted EPS improved to -$0.44 from -$0.91.
Operational momentum centered on cloud and AI. Cloud ARR was $274.2 million as of March 31, 2024, up 33% year over year. Total ARR was $382.7 million, up 21%. Cloud ARR represented 72% of total ARR, up from 65% a year earlier. Net revenue retention was 115%, inside the expected range of 113% to 117%. The company served more than 2,450 clients, including 673 clients with contracts greater than $100,000 of ARR, up from 572 a year earlier. Intapp launched Intapp Assist for DealCloud, Intapp Data, Intapp Walls for Copilot, and the Activator experience. It also acquired delphai, an AI software company, to strengthen its data foundation. Management said Intapp Assist for DealCloud drew hundreds of clients within weeks of launch.
Guidance points to continued profitability but slower growth. For the fourth quarter, management guided non-GAAP operating profit to $10.5 million to $11.5 million and non-GAAP diluted net income per share to $0.11 to $0.13. For full fiscal year 2024, the outlook is non-GAAP operating profit of $35.5 million to $36.5 million and non-GAAP diluted net income per share of $0.42 to $0.44. The company has not provided a quantitative reconciliation of this non-GAAP guidance to GAAP because certain items, including stock-based compensation and amortization of intangible assets, are highly variable.
The risks are familiar for a high-growth vertical SaaS company with GAAP losses. Intapp cites its ability to continue growth at or near historical rates, future financial performance and profitability, global economic and market conditions, data breaches, sales cycle length and variability, client and talent retention, competition in AI products, international complexity, acquisition integration, indebtedness and credit markets, cash sufficiency, and intellectual property protection. Professional services remain loss making after allocated overhead costs, which drags on overall profitability. The company also noted that it will lose emerging growth company status and become a large accelerated filer as of June 30, 2024, bringing additional reporting requirements.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2024 | Q2 FY2024 | QoQ | Q3 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $110.6M | $103.9M | +6.5% | $92.0M | +20.2% |
| Gross profit | $80.1M | $73.2M | +9.4% | $63.5M | +26.0% |
| Gross margin | 72.4% | 70.4% | +2.0 pp | 69.0% | +3.3 pp |
| Research & development | $27.3M | $28.0M | -2.4% | $25.3M | +8.1% |
| Sales & marketing | $35.3M | $35.3M | -0.0% | $34.9M | +0.9% |
| General & administrative | $24.9M | $21.0M | +18.7% | $21.6M | +15.7% |
| Total operating expenses | $87.5M | $84.2M | +3.9% | $81.8M | +7.0% |
| Operating income (loss) | -$7.4M | -$11.1M | +32.8% | -$18.2M | +59.2% |
| Operating margin | -6.7% | -10.7% | +3.9 pp | -19.8% | +13.1 pp |
| Net income (loss) | -$6.9M | -$9.2M | +25.2% | -$18.1M | +62.0% |
| Net margin | -6.2% | -8.9% | +2.6 pp | -19.7% | +13.5 pp |
| Diluted EPS | -$0.09 | -$0.13 | +$0.04 | -$0.28 | +$0.19 |
Risks
MD&A identifies future growth as dependent on market adoption of Intapp's cloud platform and on demonstrating return on investment to new and existing clients. Cloud ARR was $274.2 million as of March 31, 2024, up 33%, and represented 72% of ARR, so any slowdown in cloud migration or client acceptance could adversely affect operating results.
MD&A states professional services are currently loss making after allocated overhead costs and accounted for 13% and 14% of total revenues during the nine months ended March 31, 2024 and 2023, respectively. Losses on professional services increased by $1.5 million during the nine months ended March 31, 2024, which could continue to pressure overall margins.
MD&A says the ability to add new clients and expand within existing accounts depends on convincing key decision makers at professional and financial services firms to choose Intapp over point solutions, internally developed solutions, and horizontal solutions. Failure to do so could cause net revenue retention to suffer.
MD&A highlights that adding new clients and expanding existing accounts depends on the quality and effectiveness of sales personnel and marketing efforts. Weak sales execution could impair the company's ability to grow revenues and client base as planned.
MD&A states Intapp will continue to evaluate acquisition opportunities and recently closed delphai for $13.3 million in cash at closing plus a $1.7 million holdback, and TDI for $1.6 million in cash plus up to $3.3 million in deferred and earn-out payments over the next three fiscal years. Integrating these businesses may divert management attention and increase costs.
MD&A discloses that as of December 31, 2023, non-affiliate market value exceeded $700 million, so Intapp will become a large accelerated filer as of June 30, 2024. It will no longer qualify as an emerging growth company, will lose the extended transition period for new accounting standards, and must provide an auditor attestation on internal control over financial reporting, increasing compliance costs and disclosure obligations.
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 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.