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  • Third quarter SaaS and support revenue of $49.8 million, up 35% year-over-year
  • Third quarter total revenue of $69.7 million, up 25% year-over-year
  • Cloud annual recurring revenue (ARR) of $147.8 million, up 49% year-over-year

PALO ALTO, Calif., May 11, 2022 (GLOBE NEWSWIRE) — Intapp, Inc. (NASDAQ: INTA), a leading provider of industry-specific, cloud-based software solutions that enable connected professional and financial services firms, announced its financial results for the third quarter of fiscal year 2022 ended March 31, 2022. Intapp also provided its outlook for the fourth quarter of fiscal year 2022, while raising its guidance for the full fiscal year of 2022.

“We continue to see professional and financial services firms embrace the cloud and adopt our purpose-built solutions,” said John Hall, CEO of Intapp. “We are increasingly confident in Intapp’s ability to lead digital transformation in this industry, helping our clients leverage the power of the cloud to accelerate the growth of their businesses.”

Third Quarter of Fiscal Year 2022 Financial Highlights

  • SaaS and support revenue was $49.8 million, representing a 35% year-over-year increase compared to the third quarter of fiscal year 2021.
  • Total revenue was $69.7 million, representing a 25% year-over-year increase compared to the third quarter of fiscal year 2021.
  • Cloud ARR was $147.8 million as of March 31, 2022, an increase of 49% year-over-year compared to Cloud ARR as of March 31, 2021. Cloud ARR represented 58% of total ARR as of March 31, 2022, as compared to 49% as of March 31, 2021.
  • Total ARR was $253.5 million as of March 31, 2022, an increase of 26% year-over-year compared to Total ARR as of March 31, 2021.
  • GAAP operating loss was $28.7 million, compared to a GAAP operating loss of $4.1 million in the third quarter of fiscal year 2021, primarily reflecting an increase in non-cash stock compensation expense.
  • Non-GAAP operating loss was $2.2 million, compared to a non-GAAP operating profit of $1.9 million in the third quarter of fiscal year 2021.
  • GAAP net loss attributable to common stockholders was $28.7 million, compared to a GAAP net loss attributable to common stockholders of $14.0 million in the third quarter of fiscal year 2021, primarily reflecting an increase in non-cash stock compensation expense.
  • Non-GAAP net loss attributable to common stockholders was $2.3 million, compared to a non-GAAP net loss attributable to common stockholders of $4.1 million in the third quarter of fiscal year 2021.
  • GAAP net loss per share attributable to common stockholders was $0.47, compared to a GAAP net loss per share attributable to common stockholders of $0.49 in the third quarter of fiscal year 2021. Net loss per share attributable to common stockholders for the three months ended March 31, 2022 includes, on a weighted-average basis, 19.0 million shares of common stock issued upon the conversion of convertible preferred stock and 12.1 million shares of common stock issued upon the completion of our initial public offering.
  • Non-GAAP net loss per share attributable to common stockholders was $0.04, compared to a non-GAAP net loss per share attributable to common stockholders of $0.14 in the third quarter of fiscal year 2021.

Balance Sheet and Cash Flow Highlights

  • Cash and cash equivalents were $42.7 million as of March 31, 2022, compared to $37.6 million as of June 30, 2021.
  • For the nine months ended March 31, 2022, cash provided by operating activities was $4.6 million, compared to cash used in operating activities of $2.1 million for the nine months ended March 31, 2021.

Business Highlights

  • We served more than 2,050 clients, 484 of which each generated more than $100,000 of ARR.
  • Our trailing twelve months’ net revenue retention rate was above our expected range of 108% to 112% for the third quarter in a row. We are raising our guidance to an expected range of 110% to 114% on a go-forward basis.
  • We announced a strategic partnership with Microsoft to accelerate cloud adoption in the professional and financial services industry.
  • We expanded our global footprint, adding new clients including Nordic law firm Hannes Snellman, South African firm Cliffe Dekker Hofmeyr and Pan-Asian firm ADV Partners.
  • Our DealCloud platform was named the winner of two 2022 Private Equity Wire European Awards: Best Fundraising Technology and Best Deal Origination Technology.
  • Our Intapp OnePlace solution was named 2022 Legal Technology Trailblazer by The National Law Journal.

Fourth Quarter and Full Fiscal Year 2022 Outlook

  Fiscal 2022 Outlook
  Fourth Quarter Fiscal Year
SaaS and support revenue (in millions) $51.0 – $52.0 $191.0 – $192.0
Total revenue (in millions) $71.0 – $72.0 $267.5 – $268.5
Non-GAAP operating loss (in millions) $4.0 – $5.0 $7.0 – $8.0
Non-GAAP net loss per share $0.07 – $0.08 $0.15 – $0.16

The guidance provided above constitutes forward-looking statements and actual results may differ materially. Refer to the “Forward-Looking Statements” safe harbor section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

The information presented above includes non-GAAP financial measures such as “non-GAAP operating profit (loss),” “non-GAAP net loss,” and “non-GAAP net loss per share.”  Refer to “Non-GAAP Financial Measures and Other Metrics” for a discussion of these measures and the financial tables below for reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure.

A supplemental financial presentation and other information will be accessible through Intapp’s investor relations website at https://investors.intapp.com/.

Webcast

Intapp will host a conference call for analysts and investors on Wednesday, May 11, 2022, beginning at 2:00 p.m. PT (5:00 p.m. ET). The call will be webcast live via the “Investors” section of the Intapp company website at https://investors.intapp.com/. A replay of the call will be available through the Intapp website for 90 days.

About Intapp

Intapp makes the connected firm possible. We provide cloud software solutions that address the unique operating challenges and regulatory requirements of the global professional and financial services industry. Our solutions help more than 2,050 of the world’s premier private capital, investment banking, legal, accounting, and consulting firms connect their most important assets: people, processes, and data. As part of a connected firm, professionals gain easy access to the information they need to win more business, increase investment returns, streamline deal and engagement execution, and strengthen risk management and compliance.

Forward-Looking Statements

This press release contains express and implied “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our financial outlook for the fourth quarter and full year of fiscal year 2022, growth strategy, business plans and market position. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “project,” “would,” “should,” “could,” “can,” “predict,” “potential,” “target,” “explore,” “continue,” “expand,” “outlook” or the negative of these terms, and similar expressions intended to identify forward-looking statements. By their nature, these statements are subject to numerous uncertainties and risks, including factors beyond our control, that could cause actual results, performance, or achievement to differ materially and adversely from those anticipated or implied in the statements, including: our inability to continue our growth at or near historical rates; our future financial performance and ability to be profitable; the effect of global events, such as the COVID-19 pandemic and Russia’s invasion of Ukraine, on the U.S. and global economies, our business, our employees, results of operations, financial condition, demand for our products, sales and implementation cycles, and the health of our clients’ and partners’ businesses; our ability to prevent and respond to data breaches, unauthorized access to client data or other disruptions of our solutions; our ability to effectively manage U.S. and global market and economic conditions, including inflationary pressures, particularly adverse to our targeted industries; the length and variability of our sales cycle; our ability to attract and retain customers; our ability to compete in highly competitive markets; our ability to manage additional complexity, burdens, and volatility in connection with our international sales and operations; our ability to incur indebtedness in the future; the sufficiency of our cash and cash equivalents to meet our liquidity needs; and our ability to maintain, protect, and enhance our intellectual property rights. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption “Risk Factors” and elsewhere in our Annual Report on Form 10-K for the year ended June 30, 2021 filed with the Securities and Exchange Commission, our Quarterly Reports on Form 10-Q, and any subsequent public filings. Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. Forward-looking statements speak only as of the date the statements are made and are based on information available to us at the time those statements are made and/or management’s good faith belief as of that time with respect to future events. We assume no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law.

Non-GAAP Financial Measures and Other Metrics

This press release contains the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP operating expenses, non-GAAP operating profit (loss), non-GAAP net loss and non-GAAP net loss per share. These non-GAAP measures exclude the impact of stock-based compensation, amortization of intangible assets, change in fair value of contingent consideration, acquisition-related transaction costs, and non-cash cumulative preferred dividends. See below for a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure.

Other metrics include total ARR, Cloud ARR and net revenue retention rate. Total ARR represents the annualized recurring value of all active SaaS and on-premises subscription contracts at the end of a reporting period. Cloud ARR is the portion of the annualized recurring value of our active SaaS contracts at the end of a reporting period. Contracts with a term other than one year are annualized by taking the committed contract value for the current period divided by number of days in that period, then multiplying by 365.

Net revenue retention rate is calculated by starting with the ARR from the cohort of all clients as of the twelve months prior to the applicable fiscal period, or prior period ARR. We then calculate the ARR from these same clients as of the current fiscal period, or current period ARR. We then divide the current period ARR by the prior period ARR to calculate the net revenue retention rate.

We believe these non-GAAP financial measures and metrics provide useful information to investors as they are used by management to manage the business, make planning decisions, evaluate our performance, and allocate resources and provide useful information regarding certain financial and business trends relating to our financial condition and results of operations. These non-GAAP financial measures, which may be different than similarly-titled measures used by other companies, should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

Guidance for non-GAAP financial measures excludes stock-based compensation expense and amortization of intangible assets. A reconciliation of non-GAAP guidance measures to the most directly comparable GAAP financial measures is not available on a forward-looking basis due to the uncertainty regarding, and the potential variability of, the amounts of stock-based compensation expense and amortization of intangible assets that may be incurred in the future. Non-GAAP net loss per share is calculated by dividing non-GAAP net loss by the estimated weighted average shares outstanding for the period.

Investor Contact

David Trone
Senior Vice President, Investor Relations
Intapp, Inc.
[email protected]

Media Contact

Ali Robinson
Global Media Relations Director
Intapp, Inc.
[email protected]

Intapp, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data and percentages)

    Three Months Ended
March 31,
    Nine Months Ended
March 31,
 
    2022     2021     2022     2021  
Revenues                                
SaaS and support   $ 49,808     $ 36,888     $ 140,267     $ 104,644  
Subscription license     10,904       11,784       30,811       31,530  
Total recurring revenues     60,712       48,672       171,078       136,174  
Professional services     8,951       6,976       25,472       17,202  
Total revenues     69,663       55,648       196,550       153,376  
Cost of revenues                                
SaaS and support     13,490       10,826       37,007       29,981  
Total cost of recurring revenues     13,490       10,826       37,007       29,981  
Professional services     12,510       8,795       34,922       24,050  
Total cost of revenues     26,000       19,621       71,929       54,031  
Gross profit     43,663       36,027       124,621       99,345  
Gross margin     62.7 %     64.7 %     63.4 %     64.8 %
Operating expenses:                                
Research and development     20,425       13,036       54,781       37,136  
Sales and marketing     28,759       16,407       81,244       47,217  
General and administrative     23,175       10,729       65,222       28,310  
Total operating expenses     72,359       40,172       201,247       112,663  
Operating loss     (28,696 )     (4,145 )     (76,626 )     (13,318 )
Loss on debt extinguishment                 (2,407 )      
Interest expense     (39 )     (5,850 )     (236 )     (18,524 )
Other income (expense), net     (272 )     (58 )     188       1,317  
Net loss before income taxes     (29,007 )     (10,053 )     (79,081 )     (30,525 )
Income tax benefit (expense)     271       (64 )     990       (329 )
Net loss     (28,736 )     (10,117 )     (78,091 )     (30,854 )
Less: cumulative dividends allocated to preferred stockholders           (3,881 )           (11,581 )
Net loss attributable to common stockholders   $ (28,736 )   $ (13,998 )   $ (78,091 )   $ (42,435 )
Net loss per share attributable to common stockholders, basic and diluted   $ (0.47 )   $ (0.49 )   $ (1.28 )   $ (1.54 )
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted     61,564       28,741       60,868       27,588  

Intapp, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands, except share and per share data)

    March 31, 2022     June 30, 2021  
Assets                
Current assets:                
Cash and cash equivalents   $ 42,685     $ 37,636  
Restricted cash     3,528       3,827  
Accounts receivable, net of allowance for doubtful accounts of $1,235 and $764 as of March 31, 2022 and June 30, 2021, respectively     47,029       48,573  
Unbilled receivables, net     8,534       6,840  
Other receivables, net     1,403       858  
Prepaid expenses     8,323       9,591  
Deferred commissions, current     8,989       6,551  
Total current assets     120,491       113,876  
Property and equipment, net     11,674       10,674  
Goodwill     261,791       262,270  
Intangible assets, net     42,212       52,349  
Deferred commissions, noncurrent     11,938       10,414  
Other assets     1,445       10,244  
Total assets   $ 449,551     $ 459,827  
Liabilities, convertible preferred stock and stockholders’ equity (deficit)                
Current liabilities:                
Accounts payable   $ 2,546     $ 2,198  
Accrued compensation     29,758       29,218  
Accrued expenses     7,220       9,953  
Deferred revenue, net     121,546       107,893  
Other current liabilities     20,734       22,621  
Total current liabilities     181,804       171,883  
Deferred tax liabilities     4,621       5,705  
Long-term deferred revenue, net     1,780       1,908  
Other liabilities     3,939       18,170  
Debt, net           275,593  
Total liabilities     192,144       473,259  
Convertible preferred stock, $0.001 par value per share, zero and 19,870,040 shares authorized as of March 31, 2022 and June 30, 2021, respectively; zero and 19,034,437 shares issued and outstanding as of March 31, 2022 and June 30, 2021, respectively; liquidation preference of $0 and $203,340 as of March 31, 2022 and June 30, 2021, respectively           144,148  
Stockholders’ equity (deficit)                
Preferred stock, $0.001 par value per share, 50,000,000 and zero shares authorized as of March 31, 2022 and June 30, 2021, respectively; no shares issued or outstanding as of March 31, 2022 and June 30, 2021            
Common stock, $0.001 par value per share, 700,000,000 and 65,000,000 shares authorized as of March 31, 2022 and June 30, 2021, respectively; 62,150,552 and 29,444,577 shares issued and outstanding as of March 31, 2022 and June 30, 2021, respectively     62       29  
Additional paid-in capital     622,490       128,943  
Accumulated other comprehensive loss     (996 )     (494 )
Accumulated deficit     (364,149 )     (286,058 )
Total stockholders’ equity (deficit)     257,407       (157,580 )
Total liabilities, convertible preferred stock and stockholders’ equity (deficit)   $ 449,551     $ 459,827  

Intapp, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)

    Three Months Ended March 31,     Nine Months Ended March 31,  
    2022     2021     2022     2021  
Cash Flows from Operating Activities:                                
Net loss   $ (28,736 )   $ (10,117 )   $ (78,091 )   $ (30,854 )
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:                                
Depreciation and amortization     4,354       3,347       12,510       9,910  
Amortization of deferred financing costs     38       267       75       852  
Provision for doubtful accounts     210       309       804       377  
Stock-based compensation     22,827       3,398       62,295       12,223  
Loss on debt extinguishment                 2,407        
Change in fair value of contingent consideration, including unrealized foreign exchange gain     125             (364 )      
Payment of contingent consideration in excess of acquisition date fair value     (279 )           (279 )      
Deferred income taxes     (475 )     (68 )     (1,084 )     (390 )
Other     (7 )     20       32       20  
Changes in operating assets and liabilities:                                
Accounts receivable     (6,596 )     3,075       557       (4,999 )
Unbilled receivables, current     (1,633 )     (587 )     (1,694 )     1,784  
Prepaid expenses and other assets     (750 )     (781 )     782       346  
Deferred commissions     (606 )     (938 )     (3,962 )     (2,215 )
Accounts payable and accrued liabilities     5,786       2,965       2,108       890  
Deferred revenue, net     3,503       1,406       13,525       11,750  
Other liabilities     284       (455 )     (5,051 )     (1,771 )
Net cash provided by (used in) operating activities     (1,955 )     1,841       4,570       (2,077 )
Cash Flows from Investing Activities:                                
Purchases of property and equipment     (165 )     (36 )     (281 )     (2,394 )
Capitalized internal-use software costs     (1,114 )     (669 )     (3,052 )     (1,641 )
Net cash used in investing activities     (1,279 )     (705 )     (3,333 )     (4,035 )
Cash Flows from Financing Activities:                                
Payments on borrowings                 (278,000 )     (5,000 )
Proceeds from initial public offering, net of underwriting discounts                 292,758        
Payments for deferred offering costs           (1,469 )     (4,358 )     (1,591 )
Proceeds from common stock issuance                       29,020  
Proceeds from stock option exercises     4,187       7,301       8,070       14,589  
Payments related to tax withholding for vested equity awards     (3,913 )           (3,913 )      
Payment of deferred financing costs                 (769 )      
Payment of contingent consideration     (10,435 )           (10,435 )      
Repurchase of common stock                       (1,892 )
Net cash provided by (used in) financing activities     (10,161 )     5,832       3,353       35,126  
Effect of foreign exchange rates on cash and cash equivalents     (143 )     775       160       874  
Net increase (decrease) in cash, cash equivalents and restricted cash     (13,538 )     7,743       4,750       29,888  
Cash, cash equivalents and restricted cash – beginning of period     59,751       65,304       41,463       43,159  
Cash, cash equivalents and restricted cash – end of period   $ 46,213     $ 73,047     $ 46,213     $ 73,047  
Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets                                
Cash and cash equivalents   $ 42,685     $ 71,332     $ 42,685     $ 71,332  
Restricted cash     3,528       1,715       3,528       1,715  
Total cash, cash equivalents and restricted cash   $ 46,213     $ 73,047     $ 46,213     $ 73,047  

Intapp, Inc.
Reconciliation of GAAP to non-GAAP Financial Measures
(Unaudited, in thousands, except per share data and percentages)

The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP financial measures for the periods indicated below:

Non-GAAP gross profit        

    Three Months Ended March 31,     Nine Months Ended March 31,  
    2022     2021     2022     2021  
Gross profit   $ 43,663     $ 36,027     $ 124,621     $ 99,345  
Adjusted to exclude the following (as related to cost of revenues):                                
Stock-based compensation     1,228       264       3,166       827  
Amortization of intangible assets     1,964       1,628       5,891       5,061  
Non-GAAP gross profit   $ 46,855     $ 37,919     $ 133,678     $ 105,233  
Non-GAAP gross margin     67.3 %     68.1 %     68.0 %     68.6 %

Non-GAAP operating expenses

    Three Months Ended March 31,     Nine Months Ended March 31,  
    2022     2021     2022     2021  
Research and development   $ 20,425     $ 13,036     $ 54,781     $ 37,136  
Stock-based compensation     (5,136 )     (941 )     (13,771 )     (3,019 )
Non-GAAP research and development   $ 15,289     $ 12,095     $ 41,010     $ 34,117  
                                 
                                 
Sales and marketing   $ 28,759     $ 16,407     $ 81,244     $ 47,217  
Stock-based compensation     (7,330 )     (997 )     (20,687 )     (3,828 )
Amortization of intangible assets     (1,448 )     (993 )     (3,927 )     (2,977 )
Non-GAAP sales and marketing   $ 19,981     $ 14,417     $ 56,630     $ 40,412  
                                 
                                 
General and administrative   $ 23,175     $ 10,729     $ 65,222     $ 28,310  
Stock-based compensation     (9,133 )     (1,196 )     (24,671 )     (5,055 )
Amortization of intangible assets     (106 )           (319 )      
Change in fair value of contingent consideration                 (727 )      
Acquisition-related transaction costs     (125 )           (206 )      
Non-GAAP general and administrative   $ 13,811     $ 9,533     $ 39,299     $ 23,255  

Non-GAAP operating profit (loss)

    Three Months Ended March 31,     Nine Months Ended March 31,  
    2022     2021     2022     2021  
Operating loss   $ (28,696 )   $ (4,145 )   $ (76,626 )   $ (13,318 )
Adjusted to exclude the following (including the portion related to total cost of revenues):                                
Stock-based compensation     22,827       3,398       62,295       12,729  
Amortization of intangible assets     3,518       2,621       10,137       8,038  
Change in fair value of contingent consideration                 727        
Acquisition-related transaction costs     125             206        
Non-GAAP operating profit (loss)   $ (2,226 )   $ 1,874     $ (3,261 )   $ 7,449  

Non-GAAP net loss

    Three Months Ended March 31,     Nine Months Ended March 31,  
    2022     2021     2022     2021  
Net loss attributable to common stockholders   $ (28,736 )   $ (13,998 )   $ (78,091 )   $ (42,435 )
Adjusted to exclude the following (including the portion related to cost of revenues):                                
Stock-based compensation     22,827       3,398       62,295       12,729  
Amortization of intangible assets     3,518       2,621       10,137       8,038  
Change in fair value of contingent consideration                 727        
Acquisition-related transaction costs     125             206        
Non-cash cumulative preferred dividends           3,881             11,581  
Non-GAAP net loss attributable to common stockholders   $ (2,266 )   $ (4,098 )   $ (4,726 )   $ (10,087 )
                                 
GAAP net loss per share attributable to common stockholders   $ (0.47 )   $ (0.49 )   $ (1.28 )   $ (1.54 )
Non-GAAP net loss per share attributable to common stockholders   $ (0.04 )   $ (0.14 )   $ (0.08 )   $ (0.37 )
                                 
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted     61,564       28,741       60,868       27,588  

 

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