Summary
Intapp closed fiscal 2022 with strong top-line growth but wider losses. Revenue for the quarter ended June 30, 2022 was $75.5 million, up 23.3% from the prior-year quarter. Full fiscal 2022 revenue was $272.1 million, up 26.8% from fiscal 2021. Gross profit for the quarter was $48.4 million, up 18.2%, and full-year gross profit was $173.0 million, up 23.3%. Gross margin slipped to 64.0% in the quarter, down 2.7 percentage points, and full-year gross margin was 63.6%, down 1.8 percentage points. The company's operating loss widened to $22.8 million in the quarter, a 136.8% increase in the loss. Full-year operating loss was $99.5 million, a 333.2% increase in the loss. Net loss widened to $21.6 million in the quarter, a 35.7% increase in the loss. Full-year net loss was $99.7 million, a 113.2% increase in the loss. Diluted EPS for fiscal 2022 was -$1.63, and the per-share loss narrowed 26.9% from fiscal 2021. Operating margin was -30.2% in the quarter, down 14.5 percentage points, and -36.6% for the full year, down 25.9 percentage points.
Cash generation improved. Operating cash flow for the quarter was $9.7 million, up 226.0% from the prior-year quarter. Full-year operating cash flow was $14.2 million, up 246.0% from fiscal 2021. Capital expenditures were $0.3 million in the quarter, up 245.6%, and $0.6 million for the full year, down 77.6%. Deferred revenue was $24.9 million at June 30, 2022, up 47.0% from a year earlier. Remaining performance obligations stood at $349.7 million. The company said its existing cash, cash equivalents and restricted cash, along with its JPMorgan Credit Facility, will be sufficient to meet working capital and capital expenditure needs for at least the next twelve months. It had no borrowings under the JPMorgan Credit Facility as of June 30, 2022. The operating cash flow improvement reflected higher deferred revenue and the timing of collections, according to the filing.
Key performance indicators show a business shifting toward cloud. ARR was $270.5 million at June 30, 2022, up 27% from $212.3 million a year earlier. Cloud ARR was $162.9 million, up 48% from $109.7 million, and represented 60% of ARR, up from 52%. The company had over 2,100 clients. It had 506 clients with contracts greater than $100,000 of ARR, up from 420, and 41 clients with contracts greater than $1.0 million of ARR, up from 31. Net revenue retention averaged more than 114% in fiscal 2022 and more than 110% in fiscal 2021. Management attributed growth to new clients, expansion from cross-selling and upselling, and migration from on-premise to cloud. Subscription license revenue declined as the company emphasized SaaS, while professional services revenue grew. The company said it expects the vast majority of new ARR growth in the future to come from SaaS subscriptions.
Risks remain. Management expects operating losses could continue as it invests in growth. It expects cost of revenues, research and development, and sales and marketing expenses to increase in absolute dollars. It also flagged a minor increase in research and development expenses from relocating contract resources out of Russia, Belarus, and Ukraine. The company said professional services are currently loss making after allocated overhead. Net revenue retention could suffer if clients do not see return on investment. The company may need additional equity or debt financing. It also noted foreign exchange risk, especially from the British Pound. COVID-19 restrictions eased during fiscal 2022, leading to higher travel and marketing expenses. Management's commentary focuses on multi-year investment plans rather than a specific next-quarter or full-year revenue target.
Forecast
No forward guidance in this quarter's filings.
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2022 | Q3 FY2022 | QoQ | Q4 FY2021 | YoY |
|---|---|---|---|---|---|
| Revenue | $75.5M | $69.7M | +8.4% | — | — |
| Gross profit | $48.4M | $43.7M | +10.8% | — | — |
| Gross margin | 64.0% | 62.7% | +1.4 pp | — | — |
| Research & development | $19.6M | $20.4M | -3.9% | — | — |
| Sales & marketing | $30.7M | $28.8M | +6.6% | — | — |
| General & administrative | $20.9M | $23.2M | -9.8% | — | — |
| Total operating expenses | $71.2M | $72.4M | -1.6% | — | — |
| Operating income (loss) | -$22.8M | -$28.7M | +20.4% | — | — |
| Operating margin | -30.2% | -41.2% | +11.0 pp | — | — |
| Net income (loss) | -$21.6M | -$28.7M | +24.9% | — | — |
| Net margin | -28.6% | -41.3% | +12.7 pp | — | — |
| Diluted EPS | -$0.35 | — | — | — | — |
Risks
All revenues are generated from clients in the professional and financial services industry, which are highly regulated and sensitive to U.S. and global market conditions. The filing cites inflation, the adverse economic downturn, Brexit, and climate change as factors that could reduce demand, delay or cancel projects, and impair collections.
Prior to February 2022, a majority of research and development was conducted through facilities in Ukraine and contractors in Belarus, Ukraine, and Russia. The company has transitioned and relocated all development and services functions from Russia and Belarus to the EU, U.K., and Americas, and expects a minor increase in R&D expenses due to higher labor rates and relocation costs, with risk of interruptions to development and service delivery.
Net losses were $99.7 million in fiscal 2022 and $46.8 million in fiscal 2021, and operating loss widened to $99.5 million in fiscal 2022 from $23.0 million in fiscal 2021. Gross margin declined 1.8 percentage points in fiscal 2022 to 63.6%, and the company expects to continue incurring losses as it invests in sales and marketing, research and development, and public company costs.
Business depends on clients renewing and expanding subscriptions, which generally have one to three year terms and can be cancelled prior to renewal. Net revenue retention averaged more than 114% in fiscal 2022 and 110% in fiscal 2021, but the filing warns that if clients do not see return on investment, retention could suffer and operating results may be adversely affected.
Markets are highly competitive and include large software companies such as SAP and Salesforce, point solutions, legacy systems, and horizontal providers. Failure to compete effectively could lead to pricing pressure, increased sales and marketing expenses, and market share decline.
Typical sales cycle is lengthy and unpredictable, often requiring pre-purchase evaluation, extensive client due diligence, and reference checks. Sales cycles could be disrupted by public health outbreaks, delaying revenue generation.
Growth strategy focuses on SaaS solutions and requires considerable technical, financial, and sales investment, which may increase costs such as data center costs. The company continues to migrate on-premise clients to SaaS, and professional services are currently loss making.
Solutions store and transmit highly confidential client data, sometimes through third-party cloud providers. A security breach could result in client loss, litigation, indemnity obligations, and reputational damage, and geopolitical tensions such as Russia's invasion of Ukraine may heighten cyberattack risk.
On October 5, 2021, the company entered into a $100.0 million senior secured revolving credit facility with restrictive covenants and a first-priority lien on substantially all assets. As of June 30, 2022, no amounts were borrowed, but failure to comply with covenants could cause default and acceleration.
The company acquired Billstream in fiscal 2022 and Repstor in fiscal 2021 and may continue acquisitions. Acquisitions may divert management attention, cause integration difficulties, result in dilution, or lead to impairment charges.
As an emerging growth company, the company is not required to comply with auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act. Failure to maintain effective internal controls could impair timely and accurate financial reporting.
Approximately 35% of outstanding common stock is held by Anderson and approximately 29% by Great Hill. Sales of substantial amounts, or the perception of such sales, could significantly reduce the market price of common stock.
Failure to comply with the GDPR or other data privacy regimes could subject the company to liability, fines, and reputational harm.
As the market matures or competitors introduce new solutions, the company may be unable to attract new clients at the same price or pricing models. Pricing pressures could reduce revenues, gross margin, profitability, and cash flow.
Solutions are complex and rely on the company and partners for implementation, training, and technical support. Failure to meet implementation estimates or provide high-quality support could lead to client loss, negative publicity, and increased costs.
SaaS KPIs
All quarters →Summary, forecast, risks and KPIs are extracted from Intapp, Inc.'s SEC filings for Q4 FY2022 (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.