Earnings

Intapp Cuts Quarterly Loss To $1.3 Million As Subscription Revenue Climbs 29%

Cloud ARR rose 28% and the loss narrowed, but second-quarter total revenue guidance sits below the quarter just reported.

Intapp, which makes cloud software for accounting, consulting, investment banking, legal and private capital firms, cut its quarterly net loss to $1.3 million as subscription revenue rose 29%, the company said in an 8-K filed Tuesday. It guided second-quarter total revenue to $158.8 million to $159.8 million, below the $161.3 million it just reported.

Subscriptions up, licenses down

For the fiscal first quarter ended September 30, subscription revenue was $125.5 million, up 29% from a year earlier. Total revenue was $161.3 million, up 16%.

License revenue fell to $23.0 million from $29.2 million, which held back total growth. Gross margin was 77.9%, against 74.7% a year earlier.

The net loss was $0.02 per share, compared with a loss of $14.4 million, or $0.18 per share, a year ago. On an adjusted basis, net income was $0.44 per share versus $0.24.

Cloud ARR and retention

Cloud annual recurring revenue, the yearly value of active cloud contracts, reached $515.3 million, up 28%, and made up 85% of total recurring revenue, versus 80% a year earlier. Total recurring revenue was $607.1 million, up 20%.

Trailing twelve-month cloud net revenue retention was 123%, meaning existing cloud clients spent that much compared with a year earlier. The company served more than 1,400 clients with contracts above $50,000 of annual recurring revenue.

Chairman and CEO John Hall said, "With Intapp Celeste now generally available and firms moving to the cloud, we're confident in where we're headed."

Guidance and cash

For the second quarter, Intapp expects subscription revenue of $129.1 million to $130.1 million. Its full-year total revenue outlook is $658.2 million to $662.2 million.

Operating cash flow was $28.4 million, up from $13.8 million. The company repurchased 0.6 million shares for $25.0 million, and cash ended at $147.7 million versus $162.8 million on June 30.

Management hosts its analyst call at 5:00 p.m. ET on Tuesday.