- Second quarter SaaS and support revenue of
$47.0 million , up 36% year-over-year - Second quarter total revenue of
$64.7 million , up 30% year-over-year - Cloud annual recurring revenue (ARR) of
$135.3 million , up 52% year-over-year
“We are pleased to report another quarter of strong results, our third consecutive since our IPO in June of 2021,” said CEO
Second Quarter of Fiscal Year 2022 Financial Highlights
- SaaS and support revenue was
$47.0 million , representing a 36% year-over-year increase compared to the second quarter of fiscal year 2021. - Total revenue was
$64.7 million , representing a 30% year-over-year increase compared to the second quarter of fiscal year 2021. - Cloud ARR was
$135.3 million as ofDecember 31, 2021 compared to$88.9 million as ofDecember 31, 2020 , which represents a 52% year-over-year increase. Cloud ARR represented 56% of total ARR as ofDecember 31, 2021 , compared to 47% as ofDecember 31, 2020 . - Total ARR was
$240.0 million as ofDecember 31, 2021 compared to$189.4 million as ofDecember 31, 2020 , which represents a 27% year-over-year increase. - GAAP operating loss was
$24.3 million , compared to a GAAP operating loss of$4.9 million in the second quarter of fiscal year 2021, primarily reflecting an increase in non-cash stock compensation expense. - Non-GAAP operating loss was
$0.2 million , compared to a non-GAAP operating profit of$2.0 million in the second quarter of fiscal year 2021. - GAAP net loss attributable to common stockholders was
$24.2 million , compared to a GAAP net loss attributable to common stockholders of$14.2 million in the second quarter of fiscal year 2021, primarily reflecting an increase in non-cash stock compensation expense. - Non-GAAP net loss attributable to common stockholders was
$0.1 million , compared to a non-GAAP net loss attributable to common stockholders of$3.4 million in the second quarter of fiscal year 2021. - GAAP net loss per share attributable to common stockholders was
$0.40 , compared to a GAAP net loss per share attributable to common stockholders of$0.51 in the second quarter of fiscal year 2021. Net loss per share attributable to common stockholders for the three months endedDecember 31, 2021 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 (
$0.00 ), compared to a non-GAAP net loss per share attributable to common stockholders of$0.12 in the second quarter of fiscal year 2021.
Balance Sheet and Cash Flow Highlights
- Cash and cash equivalents were
$56.0 million as ofDecember 31, 2021 , compared to$37.6 million as ofJune 30, 2021 . The increase primarily reflects net cash provided by operating and financing activities. - For the six months ended
December 31, 2021 , cash provided by operating activities was$6.5 million , compared to cash used in operating activities of$3.9 million for the six months endedDecember 31, 2020 . - As of
December 31, 2021 , we had no debt outstanding, reflecting theJuly 2021 repayment of prior debt using the proceeds from our initial public offering.
Business Highlights
- We served more than 2,000 clients, 467 of which 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 second quarter in a row.
- We held our annual user conference, Connect21, which had over 1,700 registered attendees from the professional and financial services industry engaged in two days of strategic discussions around leveraging technology to drive returns and outcomes for investors and clients.
- To further enhance the integration of the Repstor and
Intapp platforms, we launched our first integrated offering, the Intapp Collaboration & Content suite inDecember 2021 . - On
February 3, 2022 , our Board electedBeverly R. Allen , General Counsel and Chief Compliance and Privacy Officer at Inovalon, a leading provider of cloud-based platforms empowering data-driven healthcare, as a new director.
Third Quarter and Full Fiscal Year 2022 Outlook
Fiscal 2022 Outlook | ||
Third Quarter | Fiscal Year | |
SaaS and support revenue (in millions) | ||
Total revenue (in millions) | ||
Non-GAAP operating loss (in millions) | ||
Non-GAAP net loss per share |
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.
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About
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 third 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 impact of the COVID-19 pandemic on
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
Senior Vice President, Investor Relations
David.trone@intapp.com
Media Contact
Global Media Relations Director
Ali.robinson@intapp.com
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
Three Months Ended | Six Months Ended | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
Revenues | |||||||||||||||
SaaS and support | $ | 46,970 | $ | 34,651 | $ | 90,459 | $ | 67,756 | |||||||
Subscription license | 9,323 | 9,750 | 19,907 | 19,746 | |||||||||||
Total recurring revenues | 56,293 | 44,401 | 110,366 | 87,502 | |||||||||||
Professional services | 8,404 | 5,184 | 16,521 | 10,226 | |||||||||||
Total revenues | 64,697 | 49,585 | 126,887 | 97,728 | |||||||||||
Cost of revenues | |||||||||||||||
SaaS and support | 12,175 | 9,876 | 23,517 | 19,155 | |||||||||||
Total cost of recurring revenues | 12,175 | 9,876 | 23,517 | 19,155 | |||||||||||
Professional services | 11,378 | 7,551 | 22,412 | 15,255 | |||||||||||
Total cost of revenues | 23,553 | 17,427 | 45,929 | 34,410 | |||||||||||
Gross profit | 41,144 | 32,158 | 80,958 | 63,318 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 17,386 | 12,146 | 34,356 | 24,100 | |||||||||||
Sales and marketing | 26,840 | 15,472 | 52,485 | 30,810 | |||||||||||
General and administrative | 21,217 | 9,437 | 42,047 | 17,581 | |||||||||||
Total operating expenses | 65,443 | 37,055 | 128,888 | 72,491 | |||||||||||
Operating loss | (24,299 | ) | (4,897 | ) | (47,930 | ) | (9,173 | ) | |||||||
Loss on debt extinguishment | — | — | (2,407 | ) | — | ||||||||||
Interest expense | (38 | ) | (6,395 | ) | (197 | ) | (12,674 | ) | |||||||
Other income (expense), net | (419 | ) | 1,107 | 460 | 1,375 | ||||||||||
Net loss before income taxes | (24,756 | ) | (10,185 | ) | (50,074 | ) | (20,472 | ) | |||||||
Income tax benefit (expense) | 531 | (145 | ) | 719 | (265 | ) | |||||||||
Net loss | (24,225 | ) | (10,330 | ) | (49,355 | ) | (20,737 | ) | |||||||
Less: cumulative dividends allocated to preferred stockholders | — | (3,889 | ) | — | (7,700 | ) | |||||||||
Net loss attributable to common stockholders | $ | (24,225 | ) | $ | (14,219 | ) | $ | (49,355 | ) | $ | (28,437 | ) | |||
Net loss per share attributable to common stockholders, basic and diluted | $ | (0.40 | ) | $ | (0.51 | ) | $ | (0.82 | ) | $ | (1.05 | ) | |||
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted | 60,889 | 28,063 | 60,487 | 27,024 |
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands, except share and per share data)
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 56,024 | $ | 37,636 | |||
Restricted cash | 3,727 | 3,827 | |||||
Accounts receivable, net of allowance for doubtful accounts of | 40,505 | 48,573 | |||||
Unbilled receivables, net | 6,901 | 6,840 | |||||
Other receivables, net | 1,168 | 858 | |||||
Prepaid expenses | 7,742 | 9,591 | |||||
Deferred commissions, current | 8,429 | 6,551 | |||||
Total current assets | 124,496 | 113,876 | |||||
Property and equipment, net | 11,248 | 10,674 | |||||
262,043 | 262,270 | ||||||
Intangible assets, net | 45,731 | 52,349 | |||||
Deferred commissions, noncurrent | 11,892 | 10,414 | |||||
Other assets | 1,561 | 10,244 | |||||
Total assets | $ | 456,971 | $ | 459,827 | |||
Liabilities, convertible preferred stock and stockholders’ equity (deficit) | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 1,305 | $ | 2,198 | |||
Accrued compensation | 25,917 | 29,218 | |||||
Accrued expenses | 6,544 | 9,953 | |||||
Deferred revenue, net | 117,544 | 107,893 | |||||
Other current liabilities | 31,674 | 22,621 | |||||
Total current liabilities | 182,984 | 171,883 | |||||
Deferred tax liabilities | 5,096 | 5,705 | |||||
Long-term deferred revenue, net | 2,279 | 1,908 | |||||
Other liabilities | 3,294 | 18,170 | |||||
Debt, net | — | 275,593 | |||||
Total liabilities | 193,653 | 473,259 | |||||
Convertible preferred stock, | — | 144,148 | |||||
Stockholders’ equity (deficit) | |||||||
Preferred stock, | — | — | |||||
Common stock, | 61 | 29 | |||||
Additional paid-in capital | 599,401 | 128,943 | |||||
Accumulated other comprehensive loss | (731 | ) | (494 | ) | |||
Accumulated deficit | (335,413 | ) | (286,058 | ) | |||
Total stockholders’ equity (deficit) | 263,318 | (157,580 | ) | ||||
Total liabilities, convertible preferred stock and stockholders’ equity (deficit) | $ | 456,971 | $ | 459,827 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
Three Months Ended | Six Months Ended | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
Cash Flows from Operating Activities: | |||||||||||||||
Net loss | $ | (24,225 | ) | $ | (10,330 | ) | $ | (49,355 | ) | $ | (20,737 | ) | |||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||||||||||
Depreciation and amortization | 4,104 | 3,301 | 8,156 | 6,563 | |||||||||||
Amortization of deferred financing costs | 37 | 291 | 37 | 585 | |||||||||||
Provision for doubtful accounts | 303 | 117 | 594 | 68 | |||||||||||
Stock-based compensation | 20,440 | 4,235 | 39,468 | 8,825 | |||||||||||
Loss on debt extinguishment | — | — | 2,407 | — | |||||||||||
Change in fair value of contingent consideration, including unrealized foreign exchange gain | 466 | — | (489 | ) | — | ||||||||||
Deferred income taxes | (365 | ) | (180 | ) | (609 | ) | (322 | ) | |||||||
Other | 3 | — | 39 | — | |||||||||||
Changes in operating assets and liabilities: | |||||||||||||||
Accounts receivable | (9,615 | ) | (8,064 | ) | 7,153 | (8,074 | ) | ||||||||
Unbilled receivables, current | 114 | 1,936 | (61 | ) | 2,371 | ||||||||||
Prepaid expenses and other assets | 427 | 1,169 | 1,532 | 1,127 | |||||||||||
Deferred commissions | (1,726 | ) | (1,130 | ) | (3,356 | ) | (1,277 | ) | |||||||
Accounts payable and accrued liabilities | 1,803 | 1,827 | (3,678 | ) | (2,075 | ) | |||||||||
Deferred revenue, net | 9,448 | 12,382 | 10,022 | 10,344 | |||||||||||
Other liabilities | 662 | 1,355 | (5,335 | ) | (1,316 | ) | |||||||||
Net cash provided by (used in) operating activities | 1,876 | 6,909 | 6,525 | (3,918 | ) | ||||||||||
Cash Flows from Investing Activities: | |||||||||||||||
Purchases of property and equipment | (84 | ) | (1,960 | ) | (116 | ) | (2,358 | ) | |||||||
Capitalized internal-use software costs | (1,107 | ) | (626 | ) | (1,938 | ) | (972 | ) | |||||||
Net cash used in investing activities | (1,191 | ) | (2,586 | ) | (2,054 | ) | (3,330 | ) | |||||||
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 | (969 | ) | (122 | ) | (4,358 | ) | (122 | ) | |||||||
Proceeds from common stock issuance | — | — | — | 29,020 | |||||||||||
Proceeds from stock option exercises | 1,622 | 1,583 | 3,883 | 7,288 | |||||||||||
Payment of deferred financing costs | (769 | ) | — | (769 | ) | — | |||||||||
Repurchase of common stock | — | — | — | (1,892 | ) | ||||||||||
Net cash provided by (used in) financing activities | (116 | ) | 1,461 | 13,514 | 29,294 | ||||||||||
Effect of foreign exchange rates on cash and cash equivalents | 518 | 69 | 303 | 99 | |||||||||||
Net increase in cash, cash equivalents and restricted cash | 1,087 | 5,853 | 18,288 | 22,145 | |||||||||||
Cash, cash equivalents and restricted cash - beginning of period | 58,664 | 59,451 | 41,463 | 43,159 | |||||||||||
Cash, cash equivalents and restricted cash - end of period | $ | 59,751 | $ | 65,304 | $ | 59,751 | $ | 65,304 | |||||||
Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets | |||||||||||||||
Cash and cash equivalents | $ | 56,024 | $ | 63,590 | $ | 56,024 | $ | 63,590 | |||||||
Restricted cash | 3,727 | 1,714 | 3,727 | 1,714 | |||||||||||
Total cash, cash equivalents and restricted cash | $ | 59,751 | $ | 65,304 | $ | 59,751 | $ | 65,304 |
Reconciliation of GAAP to non-GAAP Financial Measures
(Unaudited, in thousands, except per share data)
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 | Six Months Ended | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
Gross profit | $ | 41,144 | $ | 32,158 | $ | 80,958 | $ | 63,318 | |||||||
Adjusted to exclude the following (as related to cost of revenues): | |||||||||||||||
Stock-based compensation | 1,190 | 317 | 1,938 | 563 | |||||||||||
Amortization of intangible assets | 1,963 | 1,681 | 3,927 | 3,433 | |||||||||||
Non-GAAP gross profit | $ | 44,297 | $ | 34,156 | $ | 86,823 | $ | 67,314 |
Non-GAAP operating expenses
Three Months Ended | Six Months Ended | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
Research and development | $ | 17,386 | $ | 12,146 | $ | 34,356 | $ | 24,100 | |||||||
Stock-based compensation | (4,285 | ) | (1,052 | ) | (8,635 | ) | (2,078 | ) | |||||||
Non-GAAP research and development | $ | 13,101 | $ | 11,094 | $ | 25,721 | $ | 22,022 | |||||||
Sales and marketing | $ | 26,840 | $ | 15,472 | $ | 52,485 | $ | 30,810 | |||||||
Stock-based compensation | (6,888 | ) | (1,246 | ) | (13,357 | ) | (2,831 | ) | |||||||
Amortization of intangible assets | (1,240 | ) | (992 | ) | (2,479 | ) | (1,984 | ) | |||||||
Non-GAAP sales and marketing | $ | 18,712 | $ | 13,234 | $ | 36,649 | $ | 25,995 | |||||||
General and administrative | $ | 21,217 | $ | 9,437 | $ | 42,047 | $ | 17,581 | |||||||
Stock-based compensation | (8,077 | ) | (1,620 | ) | (15,538 | ) | (3,859 | ) | |||||||
Amortization of intangible assets | (107 | ) | — | (213 | ) | — | |||||||||
Change in fair value of contingent consideration | (390 | ) | — | (727 | ) | — | |||||||||
Acquisition-related transaction costs | — | — | (81 | ) | — | ||||||||||
Non-GAAP general and administrative | $ | 12,643 | $ | 7,817 | $ | 25,488 | $ | 13,722 |
Non-GAAP operating profit (loss)
Three Months Ended | Six Months Ended | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
Operating loss | $ | (24,299 | ) | $ | (4,897 | ) | $ | (47,930 | ) | $ | (9,173 | ) | |||
Adjusted to exclude the following (including the portion related to total cost of revenues): | |||||||||||||||
Stock-based compensation | 20,440 | 4,235 | 39,468 | 9,331 | |||||||||||
Amortization of intangible assets | 3,310 | 2,673 | 6,619 | 5,417 | |||||||||||
Change in fair value of contingent consideration | 390 | — | 727 | — | |||||||||||
Acquisition-related transaction costs | — | — | 81 | — | |||||||||||
Non-GAAP operating profit (loss) | $ | (159 | ) | $ | 2,011 | $ | (1,035 | ) | $ | 5,575 |
Non-GAAP net loss
Three Months Ended | Six Months Ended | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
Net loss attributable to common stockholders | $ | (24,225 | ) | $ | (14,219 | ) | $ | (49,355 | ) | $ | (28,437 | ) | |||
Adjusted to exclude the following (including the portion related to cost of revenues): | |||||||||||||||
Stock-based compensation | 20,440 | 4,235 | 39,468 | 9,331 | |||||||||||
Amortization of intangible assets | 3,310 | 2,673 | 6,619 | 5,417 | |||||||||||
Change in fair value of contingent consideration | 390 | — | 727 | — | |||||||||||
Acquisition-related transaction costs | — | — | 81 | — | |||||||||||
Non-cash cumulative preferred dividends | — | 3,889 | — | 7,700 | |||||||||||
Non-GAAP net loss attributable to common stockholders | $ | (85 | ) | $ | (3,422 | ) | $ | (2,460 | ) | $ | (5,989 | ) | |||
GAAP net loss per share attributable to common stockholders | $ | (0.40 | ) | $ | (0.51 | ) | $ | (0.82 | ) | $ | (1.05 | ) | |||
Non-GAAP net loss per share attributable to common stockholders | $ | (0.00 | ) | $ | (0.12 | ) | $ | (0.04 | ) | $ | (0.22 | ) | |||
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted | 60,889 | 28,063 | 60,487 | 27,024 |
Source:
2022 GlobeNewswire, Inc., source