Summary
Intapp closed fiscal 2023 with strong top-line momentum. Fourth-quarter revenue rose 25.3% to $94.62 million. Gross profit increased 31.8% to $63.77 million. The operating loss was $12.44 million, up 45.5% from the prior-year quarter. Net loss was $11.47 million, up 46.9%. Gross margin expanded to 67.4%, up 3.3 percentage points. Operating margin improved to negative 13.1%, up 17.1 percentage points. Growth came from new clients, expansion within existing accounts, and continued migration from on-premise solutions to the cloud. For the full fiscal year, revenue climbed 29.0% to $350.87 million. Gross profit rose 38.4% to $239.41 million. The operating loss was $69.26 million, up 30.4%. Net loss was $69.42 million, up 30.4%. Diluted EPS was negative $1.08, up 33.7% from the prior fiscal year. Full-year gross margin reached 68.2%, up 4.7 percentage points. Operating margin was negative 19.7%, up 16.8 percentage points. On a non-GAAP basis, operating profit was $10.486 million for fiscal 2023.
Cash generation improved. Fourth-quarter operating cash flow was $10.65 million, up 10.2%. Capital expenditures were $0.16 million, down 42.1%. For the full year, operating cash flow was $27.49 million, up 93.1%. Capital expenditures were $2.21 million, up 299.3%. Deferred revenue stood at $192.40 million as of June 30, 2023, up 32.2% from June 30, 2022. Remaining performance obligations were $404.50 million, up 15.7%. The company ended the year with a $100.0 million JPMorgan Credit Facility and no amounts borrowed. Material cash requirements totaled $152.362 million, with $17.066 million due short-term and $135.296 million long-term. Purchase obligations were $123.517 million. Operating lease obligations were $25.721 million. Acquisition holdbacks were $3.124 million. Contingent consideration includes up to $5.0 million for Billstream in the second quarter of fiscal 2024 and up to $6.4 million for Paragon by the third quarter of fiscal 2025.
Operational metrics show healthy expansion. Annual recurring revenue was $330.2 million as of June 30, 2023, up 22% from $270.5 million a year earlier. Cloud ARR reached $222.3 million, up 36%, and represented 67% of ARR. The company had over 2,300 clients. Clients with contracts greater than $100,000 of ARR totaled 603, up from 506. Clients with contracts greater than $1.0 million of ARR totaled 53, up from 41. Net revenue retention for the trailing twelve months ended June 30, 2023 was within the expected range of 113% to 117%. In May 2023, Intapp completed a public offering of 7,187,500 shares at $36.50 per share. The company sold 2,000,000 shares and existing stockholders sold 5,187,500 shares. Gross proceeds to the company were $73.0 million, and net proceeds were $68.5 million after $4.5 million in expenses.
Management's commentary points to continued investment. The company expects the vast majority of new ARR growth to come from SaaS subscriptions. It expects cost of revenues to increase in absolute dollars as the SaaS client base expands. Research and development and sales and marketing spending are also expected to rise. General and administrative spending should gradually increase to support operations. Professional services demand is expected to grow, while support revenues are expected to decline as a percentage of total revenues. The company also expects to evaluate acquisition opportunities to extend its platform. Risks remain. Operating losses could continue. Professional services are currently loss making. The conflict in Ukraine led to relocation of contract resources and a minor increase in research and development expenses. Client retention and net revenue retention could suffer if clients do not see sufficient return on investment. The company may need additional equity or debt financing. It maintains a full valuation allowance on federal and state deferred tax assets. The JPMorgan Credit Facility requires compliance with a total net leverage ratio not exceeding 3.50 to 1.00, and the company was in compliance as of June 30, 2023.
Forecast
No forward guidance in this quarter's filings.
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2023 | Q3 FY2023 | QoQ | Q4 FY2022 | YoY |
|---|---|---|---|---|---|
| Revenue | $94.6M | $92.0M | +2.8% | $75.5M | +25.3% |
| Gross profit | $63.8M | $63.5M | +0.4% | $48.4M | +31.8% |
| Gross margin | 67.4% | 69.0% | -1.7 pp | 64.0% | +3.3 pp |
| Research & development | $25.5M | $25.3M | +0.9% | $19.6M | +29.9% |
| Sales & marketing | $32.4M | $34.9M | -7.3% | $30.7M | +5.6% |
| General & administrative | $18.3M | $21.6M | -15.0% | $20.9M | -12.4% |
| Total operating expenses | $76.2M | $81.8M | -6.8% | $71.2M | +7.0% |
| Operating income (loss) | -$12.4M | -$18.2M | +31.8% | -$22.8M | +45.5% |
| Operating margin | -13.2% | -19.8% | +6.7 pp | -30.2% | +17.1 pp |
| Net income (loss) | -$11.5M | -$18.1M | +36.8% | -$21.6M | +46.9% |
| Net margin | -12.1% | -19.7% | +7.6 pp | -28.6% | +16.5 pp |
| Diluted EPS | -$1.08 | -$0.28 | -$0.80 | -$0.35 | -$0.73 |
Risks
Intapp is expanding AI offerings, including generative AI and large language models, but competitors may develop and embed AI more quickly. Known risks include accuracy, bias, privacy, security, and data provenance, and failure could harm business, results, and reputation.
All revenues are generated from clients in professional and financial services, which are highly regulated and exposed to economic uncertainty, inflation, liquidity concerns, and fluctuating interest rates. Bank failures such as SVB and broader financial institution stress could cause clients to reduce spending or renegotiate contracts.
The business depends on clients renewing and expanding subscriptions. Trailing twelve months net revenue retention as of June 30, 2023 was within the expected range of 113% to 117%, but if clients do not see ROI relative to alternatives, retention could suffer and harm operating results.
Markets are highly competitive and include large providers such as SAP and Salesforce, legacy systems, and new entrants. Competitors may have greater resources and may incorporate AI more quickly, leading to pricing pressure and market share loss.
Prior to Russia's invasion of Ukraine, a majority of R&D was conducted through facilities in Ukraine and contractors in Belarus, Ukraine, and Russia. The company ended work in Russia and Belarus and relocated resources, causing a minor increase in R&D expenses and potential interruptions to development.
Sales cycles are lengthy and variable, often requiring pre-purchase evaluation by many employees and extensive due diligence. Macroeconomic factors, financial services volatility, and public health outbreaks could disrupt sales activity and delay revenue.
Intapp has acquired Repstor, Billstream, and Paragon and may continue acquisitions. Integration may divert management, fail to retain key personnel or clients, and result in impairment charges or dilution.
The company occupies some office space under agreements with WeWork, which disclosed on August 8, 2023 substantial doubt about its ability to continue as a going concern. If WeWork fails, Intapp may need to adjust its real estate strategy and incur additional costs.
In May 2023, Intapp completed an underwritten public offering of 7,187,500 shares, including 2,000,000 sold by the company, which had a dilutive effect on pre-existing stockholders. Anderson and Great Hill hold approximately 28% and 23% of outstanding common stock, respectively, and future sales could reduce the market price.
Professional services are currently loss making after allocated overhead costs and accounted for 14% of total revenues in fiscal year 2023. Demand for implementation, upgrade, and migration services may increase costs and pressure margins.
Operational metrics such as ARR, Cloud ARR, and number of clients are tracked using internal systems not independently verified, and methodologies may change. Inaccurate estimates could harm reputation and results.
SaaS KPIs
All quarters →Cloud ARR
Clients > $100K ARR
Clients > $1M ARR
Number of Clients
Summary, forecast, risks and KPIs are extracted from Intapp, Inc.'s SEC filings for Q4 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.