Intapp Expands Margins as SaaS Growth Holds at 27%
Cloud annual recurring revenue reached $495.7 million as Intapp extended its shift toward subscription contracts.
Intapp Inc. (INTA), a provider of software for professional and financial-services firms, increased fourth-quarter SaaS revenue as its cloud shift lifted margins and non-GAAP earnings.
SaaS revenue growth held at 27% year over year, matching the third quarter and easing from 28% in the second quarter. Total revenue growth also held sequentially at 13%, down from 16% two quarters earlier. Cloud contracts accounted for 84% of total annual recurring revenue, compared with 82% in the preceding quarter and 79% a year earlier.
Fourth-quarter revenue rose 13% to $152.5 million, with SaaS revenue increasing to $115.0 million. Non-GAAP diluted earnings climbed to $0.41 a share from $0.27 a year earlier. The results exceeded Intapp’s previous guidance ceilings for revenue by $2.4 million and earnings by $0.03 a share.
The revenue mix moved further toward subscriptions. SaaS revenue rose from $90.2 million a year earlier, license revenue fell 25% to $23.9 million and professional-services revenue edged up 5% to $13.6 million. GAAP gross margin expanded 2.8 percentage points to 77.6%, while non-GAAP gross margin increased 1.4 points to 79.4%.
Non-GAAP operating income rose to $34.3 million from $21.3 million a year earlier, even as the GAAP operating loss remained about unchanged at $4.2 million. For the full year, non-GAAP operating income increased 44% to $108.6 million. GAAP operating loss widened to $40.1 million as stock-based compensation increased 36% to $120.0 million.
Larger client relationships continued to expand. Intapp has 897 clients with more than $100,000 of annual recurring revenue, up from 858 in the preceding quarter, while clients above $1 million increased to 142 from 109 a year earlier. The company also made Celeste, an agentic coworker within its Firm AI offering, commercially available during the quarter.
For the fiscal first quarter, Intapp expects subscription revenue of $123.7 million to $124.7 million, about 8% above the fourth-quarter level at the midpoint. It projects non-GAAP operating income of $33.4 million to $34.4 million, roughly even with the latest quarter.
Fiscal-year operating cash flow rose 19% to $146.8 million and free cash flow increased 19% to $144.7 million. Year-end cash fell 48% to $162.8 million after Intapp spent $275.2 million to repurchase 8.4 million shares, directing more than the year’s free cash flow toward buybacks.