false000156568700015656872024-08-132024-08-13

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 13, 2024

 

 

Intapp, Inc.

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware			001-40550	46-1467620
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
3101 Park Blvd
Palo Alto, California				94306
(Address of Principal Executive Offices)				(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: (650) 852-0400

 

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.001 per share		INTA		The Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

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Item 2.02 Results of Operations and Financial Condition.

 

On August 13, 2024, Intapp, Inc. issued a press release announcing its financial results for its fourth quarter and fiscal year ended June 30, 2024. A copy of the press release is furnished herewith as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

 

The information in this Current Report on Form 8-K and the accompanying Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing, unless expressly incorporated by reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

 

Exhibit Number		Description
99.1		Press release issued by Intapp, Inc. dated August 13, 2024 entitled “Intapp Announces Fourth Quarter and Fiscal Year 2024 Financial Results.”
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

		Intapp, Inc.
Date: August 13, 2024		By:	/s/ Steven Todd
			Name: Steven Todd
			Title: General Counsel

 

 

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Intapp Announces Fourth Quarter and Fiscal Year 2024 Financial Results

 

PALO ALTO, Calif., August 13, 2024 – Intapp, Inc. (NASDAQ: INTA), a leading global provider of AI-powered solutions for professionals at advisory, capital markets, and legal firms, announced financial results for its fourth quarter and fiscal year ended June 30, 2024. Intapp also provided its outlook for the first quarter and fiscal year 2025.

“It has been a strong and exciting year for Intapp as we lead our clients to adopt and apply AI to the work of their professionals,” said John Hall, CEO of Intapp. “Our fiscal year 2024 results reflect the launch of our innovative new AI solutions, expanding our client base across the globe, forging new partnerships, and growing our clients in the cloud.”

Fourth Quarter of Fiscal Year 2024 Financial Highlights

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Fiscal Year 2024 Financial Highlights

Balance Sheet and Cash Flow Highlights

Business Highlights

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First Quarter and Fiscal Year 2025 Outlook

	Fiscal 2025 Outlook
	First Quarter	Fiscal Year
	(in millions, except per share data)
SaaS revenue	$75.3 - $76.3	$326.7 - $330.7
SaaS and support revenue	$89.5 - $90.5	$380.5 - $384.5
Total revenue	$117.2 - $118.2	$493.0 - $497.0
Non-GAAP operating income	$11.0 - $12.0	$56.5 - $60.5
Non-GAAP diluted net income per share	$0.12 - $0.14	$0.59 - $0.63

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 in this press release includes non-GAAP financial measures such as “non-GAAP operating income,” “non-GAAP net income,” and “non-GAAP diluted net income 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. The Company has not included a quantitative reconciliation of its guidance for non-GAAP operating income and non-GAAP diluted net income per share to their most directly comparable GAAP financial measures because certain of these reconciling items, including stock-based compensation and amortization of intangible assets, could be highly variable and cannot be reasonably predicted without unreasonable effort. This is due to the inherent difficulty of forecasting the timing of certain events that have not yet occurred and are out of the Company’s control and the amounts of associated reconciling items. Please note that the unavailable reconciling items could significantly impact the Company’s GAAP operating results.

Corporate Presentation

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 Tuesday, August 13, 2024, 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 software helps professionals unlock their teams’ knowledge, relationships, and operational insights to increase value for their firms. Using the power of Applied AI, we make firm and market intelligence easy to find, understand, and use. With Intapp’s portfolio of vertical SaaS solutions, professionals can apply their collective expertise to make smarter decisions, manage risk, and increase competitive advantage. The world’s top firms — across accounting, consulting, investment banking, legal, private capital, and real assets — trust Intapp’s industry-specific platform and solutions to modernize and drive new growth.

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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 first quarter and fiscal year 2025, 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 ability to continue our growth at or near historical rates; our future financial performance and ability to be profitable; the effect of global events on the U.S. and global economies, our business, our employees, our results of operations, our 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, economic and market downturns and volatility in the financial services industry, particularly adverse to our targeted industries; the length and variability of our sales cycle; our ability to attract and retain clients; our ability to attract and retain talent; our ability to compete in highly competitive markets, including AI products; our ability to manage additional complexity, burdens, and volatility in connection with our international sales and operations; the successful assimilation or integration of the businesses, technologies, services, products, personnel or operations of acquired companies; our ability to incur indebtedness in the future and the effect of conditions in credit markets; 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, 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.

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Non-GAAP Financial Measures and Other Metrics

This press release contains the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP recurring gross profit, non-GAAP recurring gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income and non-GAAP diluted net income per share. These non-GAAP measures exclude the impact of stock-based compensation, amortization of intangible assets, lease modification and impairment, change in fair value of contingent consideration, transaction costs, restructuring and other costs and the income tax effect of non-GAAP adjustments. See below for a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure.

Free cashflow is a non-GAAP financial measure, and a supplemental liquidity measure that management uses to evaluate our core operating business and our ability to meet our current and future financing and investing needs. It consists of net cash provided by operating activities less cash paid for purchases of property and equipment. 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-premise subscription license 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. Non-GAAP diluted net income per share is calculated by dividing non-GAAP net income by the estimated diluted weighted average shares outstanding for the period.

Investor Contact

David Trone

Senior Vice President, Investor Relations

Intapp, Inc.

ir@intapp.com

Media Contact

Ali Robinson

Global Media Relations Director

Intapp, Inc.

press@intapp.com

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INTAPP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except per share data and percentages)

		Three Months Ended June 30,								Year Ended June 30,
		2024				2023				2024				2023
Revenues
SaaS and support		$	84,973			$	67,841			$	315,960			$	252,310
Subscription license			16,116				12,166				60,682				48,970
Professional services			13,287				14,612				53,881				49,593
Total revenues			114,376				94,619				430,523				350,873
Cost of revenues
SaaS and support			16,100				14,524				59,831				53,022
Professional services			14,638				16,329				63,830				58,440
Total cost of revenues			30,738				30,853				123,661				111,462
Gross profit			83,638				63,766				306,862				239,411
Gross margin			73.1	%			67.4	%			71.3	%			68.2	%
Operating expenses:
Research and development			29,838				25,499				113,634				93,851
Sales and marketing			33,232				32,393				138,176				132,189
General and administrative			20,266				18,316				87,243				81,031
Lease modification and impairment			—				—				—				1,601
Total operating expenses			83,336				76,208				339,053				308,672
Operating income (loss)			302				(12,442	)			(32,191	)			(69,261	)
Interest and other income (expense), net			413				177				2,285				(659	)
Net income (loss) before income taxes			715				(12,265	)			(29,906	)			(69,920	)
Income tax (expense) benefit			(1,312	)			795				(2,115	)			495
Net loss		$	(597	)		$	(11,470	)		$	(32,021	)		$	(69,425	)
Net loss per share, basic and diluted		$	(0.01	)		$	(0.17	)		$	(0.45	)		$	(1.08	)
Weighted-average shares used to compute net loss per share, basic and diluted			73,898				66,730				71,488				64,295

 

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INTAPP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)

 

		June 30, 2024				June 30, 2023
Assets
Current assets:
Cash and cash equivalents		$	208,370			$	130,377
Restricted cash			200				808
Accounts receivable, net			95,103				92,973
Unbilled receivables, net			13,300				10,661
Other receivables, net			2,743				878
Prepaid expenses			9,031				7,335
Deferred commissions, current			13,907				11,807
Total current assets			342,654				254,839
Property and equipment, net			18,944				16,366
Operating lease right-of-use assets			21,382				17,180
Goodwill			285,969				278,890
Intangible assets, net			40,293				43,257
Deferred commissions, noncurrent			18,495				16,529
Other assets			5,262				1,846
Total assets		$	732,999			$	628,907
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		$	13,348			$	6,018
Accrued compensation			42,066				39,761
Accrued expenses			12,040				11,626
Deferred revenue, net			218,923				191,042
Other current liabilities			14,270				10,902
Total current liabilities			300,647				259,349
Deferred tax liabilities			1,336				1,422
Deferred revenue, noncurrent			3,563				1,355
Operating lease liabilities, noncurrent			19,605				16,195
Other liabilities			4,610				9,378
Total liabilities			329,761				287,699
Stockholders’ equity:
Common stock			75				69
Additional paid-in capital			891,681				797,639
Accumulated other comprehensive loss			(1,336	)			(1,339	)
Accumulated deficit			(487,182	)			(455,161	)
Total stockholders’ equity			403,238				341,208
Total liabilities and stockholders’ equity		$	732,999			$	628,907

 

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INTAPP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)

 

		Three Months Ended June 30,								Year Ended June 30,
		2024				2023				2024				2023
Cash Flows from Operating Activities:
Net loss		$	(597	)		$	(11,470	)		$	(32,021	)		$	(69,425	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization			4,698				3,913				16,704				15,319
Amortization of operating lease right-of-use assets			1,259				1,129				4,781				4,639
Accounts receivable allowances			916				(480	)			3,711				922
Stock-based compensation			10,604				12,974				59,895				67,769
Lease modification and impairment			—				—				—				1,601
Change in fair value of contingent consideration			(1,565	)			(889	)			(3,290	)			(1,762	)
Deferred income taxes			302				(460	)			(22	)			(912	)
Other			124				39				239				154
Changes in operating assets and liabilities:
Accounts receivable			(15,239	)			(24,032	)			(5,138	)			(26,402	)
Unbilled receivables, current			3,165				1,981				(2,639	)			(3,898	)
Prepaid expenses and other assets			(1,605	)			1,047				(5,740	)			1,261
Deferred commissions			(2,302	)			(1,278	)			(4,066	)			(3,394	)
Accounts payable and accrued liabilities			3,172				7,785				9,438				2,313
Deferred revenue, net			23,328				24,308				28,261				46,565
Operating lease liabilities			(783	)			(1,328	)			(4,266	)			(5,922	)
Other liabilities			1,602				(2,586	)			1,384				(1,341	)
Net cash provided by operating activities			27,079				10,653				67,231				27,487
Cash Flows from Investing Activities:
Purchases of property and equipment			(729	)			(158	)			(2,457	)			(2,212	)
Capitalized internal-use software costs			(1,181	)			(1,648	)			(6,398	)			(5,524	)
Business combinations, net of cash acquired			(10,973	)			(6,604	)			(10,973	)			(6,604	)
Investment in note receivable			—				—				—				(500	)
Repayment of note receivable			—				500				—				500
Net cash used in investing activities			(12,883	)			(7,910	)			(19,828	)			(14,340	)
Cash Flows from Financing Activities:
Proceeds from public offering, net of underwriting discounts			—				70,080				—				70,080
Payments for deferred offering costs			—				(733	)			(781	)			(790	)
Proceeds from stock option exercises			5,539				7,729				30,726				23,456
Proceeds from employee stock purchase plan			1,706				1,459				3,431				2,700
Payments related to tax withholding for vested equity awards			—				(4,108	)			—				(9,056	)
Payments of deferred contingent consideration and holdback associated with acquisitions			(500	)			—				(3,051	)			(22,290	)
Net cash provided by financing activities			6,745				74,427				30,325				64,100
Effect of foreign currency exchange rate changes on cash and cash equivalents			3				49				(343	)			(373	)
Net increase in cash, cash equivalents and restricted cash			20,944				77,219				77,385				76,874
Cash, cash equivalents and restricted cash - beginning of period			187,626				53,966				131,185				54,311
Cash, cash equivalents and restricted cash - end of period		$	208,570			$	131,185			$	208,570			$	131,185

 

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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 June 30,								Year Ended June 30,
		2024				2023				2024				2023
GAAP gross profit		$	83,638			$	63,766			$	306,862			$	239,411
Adjusted to exclude the following:
Stock-based compensation			1,474				1,373				7,322				5,621
Amortization of intangible assets			1,614				1,009				4,778				4,340
Restructuring and other costs			342				—				342				—
Non-GAAP gross profit		$	87,068			$	66,148			$	319,304			$	249,372
Non-GAAP gross margin			76.1	%			69.9	%			74.2	%			71.1	%

 

Non-GAAP Recurring Gross Profit

		Three Months Ended June 30,								Year Ended June 30,
		2024				2023				2024				2023
SaaS and support		$	84,973			$	67,841			$	315,960			$	252,310
Subscription license			16,116				12,166				60,682				48,970
Total recurring revenues			101,089				80,007				376,642				301,280
Cost of revenues - SaaS and support			16,100				14,524				59,831				53,022
Total cost of recurring revenues			16,100				14,524				59,831				53,022
GAAP recurring gross profit			84,989				65,483				316,811				248,258
Adjusted to exclude the following:
Stock-based compensation			545				388				2,292				1,705
Amortization of intangible assets			1,614				1,009				4,778				4,340
Non-GAAP recurring gross profit		$	87,148			$	66,880			$	323,881			$	254,303
GAAP recurring gross margin			84.1	%			81.8	%			84.1	%			82.4	%
Non-GAAP recurring gross margin			86.2	%			83.6	%			86.0	%			84.4	%

 

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Non-GAAP Operating Expenses

		Three Months Ended June 30,								Year Ended June 30,
		2024				2023				2024				2023
GAAP research and development		$	29,838			$	25,499			$	113,634			$	93,851
Stock-based compensation			(3,231	)			(3,835	)			(14,854	)			(15,186	)
Restructuring and other costs			(80	)			—				(132	)			—
Non-GAAP research and development		$	26,527			$	21,664			$	98,648			$	78,665
GAAP sales and marketing		$	33,232			$	32,393			$	138,176			$	132,189
Stock-based compensation			(2,878	)			(2,292	)			(17,312	)			(20,426	)
Amortization of intangible assets			(1,318	)			(1,523	)			(5,599	)			(5,921	)
Restructuring and other costs			(31	)			—				(31	)			—
Non-GAAP sales and marketing		$	29,005			$	28,578			$	115,234			$	105,842
GAAP general and administrative		$	20,266			$	18,316			$	87,243			$	81,031
Stock-based compensation			(3,021	)			(5,474	)			(20,407	)			(26,536	)
Amortization of intangible assets			(163	)			(149	)			(652	)			(512	)
Change in fair value of contingent consideration			1,565				889				3,290				1,762
Transaction costs (1)			(536	)			(663	)			(2,685	)			(1,366	)
Restructuring and other costs			(93	)			—				(93	)			—
Non-GAAP general and administrative		$	18,018			$	12,919			$	66,696			$	54,379

 

Non-GAAP Operating Income

		Three Months Ended June 30,								Year Ended June 30,
		2024				2023				2024				2023
GAAP operating income (loss)		$	302			$	(12,442	)		$	(32,191	)		$	(69,261	)
Adjusted to exclude the following:
Stock-based compensation			10,604				12,974				59,895				67,769
Amortization of intangible assets			3,095				2,681				11,029				10,773
Lease modification and impairment			—				—				—				1,601
Change in fair value of contingent consideration			(1,565	)			(889	)			(3,290	)			(1,762	)
Transaction costs (1)			536				663				2,685				1,366
Restructuring and other costs			546				—				598				—
Non-GAAP operating income		$	13,518			$	2,987			$	38,726			$	10,486

 

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Non-GAAP Net Income

		Three Months Ended June 30,								Year Ended June 30,
		2024				2023				2024				2023
GAAP net loss		$	(597	)		$	(11,470	)		$	(32,021	)		$	(69,425	)
Adjusted to exclude the following:
Stock-based compensation			10,604				12,974				59,895				67,769
Amortization of intangible assets			3,095				2,681				11,029				10,773
Lease modification and impairment			—				—				—				1,601
Change in fair value of contingent consideration			(1,565	)			(889	)			(3,290	)			(1,762	)
Transaction costs (1)			536				663				2,685				1,366
Restructuring and other costs			546				—				598				—
Income tax effect of non-GAAP adjustments			(766	)			(775	)			(2,502	)			(2,017	)
Non-GAAP net income		$	11,853			$	3,184			$	36,394			$	8,305
GAAP net loss per share, basic and diluted		$	(0.01	)		$	(0.17	)		$	(0.45	)		$	(1.08	)
Non-GAAP net income per share, diluted		$	0.15			$	0.04			$	0.45			$	0.11
Weighted-average shares used to compute GAAP net loss per share, basic and diluted			73,898				66,730				71,488				64,295
Weighted-average shares used to compute non-GAAP net income per share, diluted			79,967				78,843				80,312				73,800

Free Cash Flow

 

		Year Ended June 30,
		2024				2023
Net cash provided by operating activities		$	67,231			$	27,487
Adjusted for the following cash outlay:
Purchases of property and equipment			(2,457	)			(2,212	)
Free cash flow (2)		$	64,774			$	25,275

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