false000156568700015656872022-11-072022-11-07

 

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): November 07, 2022

 

 

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 November 7, 2022, Intapp, Inc. issued a press release announcing its financial results for its first quarter ended September 30, 2022. 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 November 7, 2022
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: November 7, 2022		By:	/s/ Steven Todd
			Name: Steven Todd
			Title: General Counsel

 

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Exhibit 99.1

 

Intapp Announces First Quarter Fiscal Year 2023 Financial Results

 

PALO ALTO, Calif., Nov. 7, 2022 – Intapp, Inc. (NASDAQ: INTA), a leading provider of cloud software for the professional and financial services industry, announced its financial results for the first quarter of fiscal year 2023 ended September 30, 2022. Intapp also provided its outlook for the second quarter and full fiscal year of 2023.

“We’re proud of our strong start to fiscal 2023 and excited to enter this new year with considerable momentum,” said John Hall, CEO of Intapp. “Our first quarter results continue to validate our strategy as demand for our purpose-built cloud solutions across the professional and financial services industry remains strong.”

First Quarter of Fiscal Year 2023 Financial Highlights

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Balance Sheet and Cash Flow Highlights

Business Highlights

 

 

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Second Quarter and Full Fiscal Year 2023 Outlook

 

	Fiscal 2023 Outlook
	Second Quarter	Fiscal Year
SaaS and support revenue (in millions)	$59.0 - $60.0	$241.5 - $245.5
Total revenue (in millions)	$80.0 - $81.0	$332.0 - $336.0
Non-GAAP operating profit (loss) (in millions)	($1.5) - ($0.5)	($1.0) - $3.0
Non-GAAP net loss per share	($0.04) - ($0.02)	($0.07) - ($0.03)

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 profit (loss),” “non-GAAP net income (loss),” and “non-GAAP net income (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. The Company has not included a quantitative reconciliation of its guidance for non-GAAP operating profit (loss) and non-GAAP net loss 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 Monday, November 7, 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 2,150 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.

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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 second quarter and full year of fiscal year 2023, 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, 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 and economic and market downturns, particularly adverse to our targeted industries; the length and variability of our sales cycle; our ability to attract and retain customers; our ability to attract and retain talent; 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 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 operating expenses, non-GAAP operating profit (loss), non-GAAP net income (loss) and non-GAAP net income (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, impairment of lease related assets and lease modification. 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. Non-GAAP net income (loss) per share is calculated by dividing non-GAAP net income (loss) by the estimated weighted average shares outstanding for the period.

Investor Contact

David Trone

Senior Vice President, Investor Relations

Intapp, Inc.

David.trone@intapp.com

Media Contact

Ali Robinson

Global Media Relations Director

Intapp, Inc.

Ali.robinson@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 September 30,
		2022				2021
Revenues
SaaS and support		$	56,813			$	43,489
Subscription license			12,248				10,584
Total recurring revenues			69,061				54,073
Professional services			10,477				8,117
Total revenues			79,538				62,190
Cost of revenues
SaaS and support			12,398				11,342
Total cost of recurring revenues			12,398				11,342
Professional services			12,936				11,034
Total cost of revenues			25,334				22,376
Gross profit			54,204				39,814
Gross margin			68.1	%			64.0	%
Operating expenses:
Research and development			19,679				16,970
Sales and marketing			31,312				25,645
General and administrative			20,410				20,830
Impairment of lease related assets			1,949				—
Total operating expenses			73,350				63,445
Operating loss			(19,146	)			(23,631	)
Loss on debt extinguishment			—				(2,407	)
Interest expense			(39	)			(159	)
Other income (expense), net			(684	)			879
Net loss before income taxes			(19,869	)			(25,318	)
Income tax benefit (expense)			(185	)			188
Net loss		$	(20,054	)		$	(25,130	)
Net loss per share, basic and diluted		$	(0.32	)		$	(0.42	)
Weighted-average shares used to compute net loss per share, basic and diluted			62,864				60,085

 

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Intapp, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands, except per share data)

 

		September 30, 2022				June 30, 2022
Assets
Current assets:
Cash and cash equivalents		$	40,325			$	50,783
Restricted cash			3,528				3,528
Accounts receivable, net of allowance for doubtful accounts of $892 and $918 as of September 30, 2022 and June 30, 2022, respectively			52,559				66,947
Unbilled receivables, net			8,961				6,763
Other receivables, net			1,050				3,199
Prepaid expenses			9,062				5,984
Deferred commissions, current			10,475				10,187
Total current assets			125,960				147,391
Property and equipment, net			14,052				12,283
Operating lease right-of-use assets			17,308				—
Goodwill			269,230				269,103
Intangible assets, net			45,349				48,430
Deferred commissions, noncurrent			14,861				14,755
Other assets			2,540				2,451
Total assets		$	489,300			$	494,413
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		$	4,539			$	4,220
Accrued compensation			24,993				40,004
Accrued expenses			7,599				8,774
Deferred revenue, net			151,268				142,768
Other current liabilities			23,221				27,753
Total current liabilities			211,620				223,519
Deferred tax liabilities			1,940				2,099
Deferred revenue, noncurrent			1,324				2,712
Operating lease liabilities, noncurrent			16,405				—
Other liabilities			7,565				10,201
Total liabilities			238,854				238,531
Stockholders’ equity:
Preferred stock, $0.001 par value per share, 50,000 shares authorized; no shares issued or outstanding			—				—
Common stock, $0.001 par value per share, 700,000 shares authorized; 62,985 and 62,739 shares issued and outstanding as of September 30, 2022 and June 30, 2022, respectively			63				63
Additional paid-in capital			658,523				643,227
Accumulated other comprehensive loss			(2,350	)			(1,672	)
Accumulated deficit			(405,790	)			(385,736	)
Total stockholders’ equity			250,446				255,882
Total liabilities and stockholders’ equity		$	489,300			$	494,413

 

 

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Intapp, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)

 

		Three Months Ended September 30,
		2022				2021
Cash Flows from Operating Activities:
Net loss		$	(20,054	)		$	(25,130	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization			4,116				4,052
Amortization of deferred financing costs			38				—
Amortization of operating lease right-of-use assets			1,273				—
Provision for doubtful accounts			158				291
Stock-based compensation			15,768				19,028
Impairment of lease related assets			1,949				—
Loss on debt extinguishment			—				2,407
Change in fair value of contingent consideration, including unrealized foreign exchange gain			(147	)			(955	)
Deferred income taxes			(158	)			(244	)
Other			—				36
Changes in operating assets and liabilities:
Accounts receivable			15,240				16,768
Unbilled receivables, current			(2,198	)			(175	)
Prepaid expenses and other assets			(1,307	)			1,105
Deferred commissions			(394	)			(1,630	)
Accounts payable and accrued liabilities			(15,827	)			(5,481	)
Deferred revenue, net			7,112				574
Operating lease liabilities			(2,137	)			—
Other liabilities			(217	)			(5,997	)
Net cash provided by operating activities			3,215				4,649
Cash Flows from Investing Activities:
Purchases of property and equipment			(1,668	)			(32	)
Capitalized internal-use software costs			(1,266	)			(831	)
Net cash used in investing activities			(2,934	)			(863	)
Cash Flows from Financing Activities:
Payments on borrowings			—				(278,000	)
Proceeds from initial public offering, net of underwriting discounts			—				292,758
Payments for deferred offering costs			—				(3,389	)
Proceeds from stock option exercises			1,029				2,261
Payments related to tax withholding for vested equity awards			(1,501	)			—
Payment of contingent consideration			(9,299	)			—
Net cash provided by (used in) financing activities			(9,771	)			13,630
Effect of foreign exchange rates on cash and cash equivalents			(968	)			(215	)
Net increase (decrease) in cash, cash equivalents and restricted cash			(10,458	)			17,201
Cash, cash equivalents and restricted cash - beginning of period			54,311				41,463
Cash, cash equivalents and restricted cash - end of period		$	43,853			$	58,664
Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets
Cash and cash equivalents		$	40,325			$	54,937
Restricted cash			3,528				3,727
Total cash, cash equivalents and restricted cash		$	43,853			$	58,664

 

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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 September 30,
		2022				2021
Gross profit		$	54,204			$	39,814
Adjusted to exclude the following (as related to cost of revenues):
Stock-based compensation			1,033				748
Amortization of intangible assets			1,496				1,964
Non-GAAP gross profit		$	56,733			$	42,526
Non-GAAP gross margin			71.3	%			68.4	%

 

Non-GAAP Operating Expenses

		Three Months Ended September 30,
		2022				2021
Research and development		$	19,679			$	16,970
Stock-based compensation			(2,134	)			(4,350	)
Non-GAAP research and development		$	17,545			$	12,620
Sales and marketing		$	31,312			$	25,645
Stock-based compensation			(5,753	)			(6,469	)
Amortization of intangible assets			(1,464	)			(1,239	)
Non-GAAP sales and marketing		$	24,095			$	17,937
General and administrative		$	20,410			$	20,830
Stock-based compensation			(6,848	)			(7,461	)
Amortization of intangible assets			(121	)			(106	)
Change in fair value of contingent consideration			—				(337	)
Acquisition-related transaction costs			(159	)			(81	)
Non-GAAP general and administrative		$	13,282			$	12,845

 

Non-GAAP Operating Profit (Loss)

		Three Months Ended September 30,
		2022				2021
GAAP Operating loss		$	(19,146	)		$	(23,631	)
Adjusted to exclude the following (including the portion related to total cost of revenues):
Stock-based compensation			15,768				19,028
Amortization of intangible assets			3,081				3,309
Impairment of lease related assets			1,949				—
Change in fair value of contingent consideration			—				337
Acquisition-related transaction costs			159				81
Non-GAAP operating profit (loss)		$	1,811			$	(876	)

 

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Non-GAAP Net Income (Loss)

 

		Three Months Ended September 30,
		2022				2021
GAAP Net loss		$	(20,054	)		$	(25,130	)
Adjusted to exclude the following (including the portion related to cost of revenues):
Stock-based compensation			15,768				19,028
Amortization of intangible assets			3,081				3,309
Impairment of lease related assets			1,949				—
Change in fair value of contingent consideration			—				337
Acquisition-related transaction costs			159				81
Non-GAAP net income (loss)		$	903			$	(2,375	)
GAAP net loss per share, basic and diluted		$	(0.32	)		$	(0.42	)
Non-GAAP net income (loss) per share, basic and diluted		$	0.01			$	(0.04	)
Weighted-average shares used to compute GAAP net loss per share, basic and diluted			62,864				60,085
Weighted-average shares used to compute non-GAAP net income (loss) per share, basic			62,864				60,085
Weighted-average shares used to compute non-GAAP net income (loss) per share, diluted			68,092				60,085

 

 

 

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