Intapp, Inc. (INTA) Bundle
Understanding Intapp, Inc. (INTA) Revenue Streams
Understanding Intapp, Inc.’s Revenue Streams
Intapp, Inc. generates revenues through various streams, primarily from software subscriptions, including SaaS and licenses, as well as professional services. The revenue breakdown for the three months ended September 30, 2024, is as follows:
| Revenue Source | Amount (in thousands) | Percentage of Total Revenue |
|---|---|---|
| SaaS | $76,876 | 64.7% |
| License | $28,492 | 24.0% |
| Professional Services | $13,437 | 11.3% |
| Total Revenues | $118,805 | 100% |
In comparison to the same period in the prior year, total revenues increased by $17,230 or 17% from $101,575 in 2023. This growth is driven primarily by the SaaS segment, which saw an increase of $18,000 or 30%.
Analyzing the year-over-year revenue growth rates:
- SaaS revenues: Increased from $58,913 in 2023 to $76,876 in 2024, marking a growth rate of 30%.
- License revenues: Increased from $28,051 in 2023 to $28,492 in 2024, a growth rate of 2%.
- Professional services revenues: Decreased from $14,611 in 2023 to $13,437 in 2024, reflecting a decline of 8%.
The contribution of different business segments to overall revenue illustrates a shift towards SaaS as the primary revenue driver. As of September 30, 2024, SaaS revenues accounted for 64.7% of total revenues, up from 57.9% in the previous year.
Significant changes in revenue streams include:
- The increase in SaaS revenue is attributed to both new client acquisitions and expansions within existing accounts via cross-selling and upselling.
- Professional services revenue decline is a result of a change in the delivery model, with fewer resources being utilized internally compared to third-party partners.
The company’s remaining performance obligations, which represent future revenue under contract not yet recognized, totaled approximately $549.4 million as of September 30, 2024, with around 56% expected to be recognized over the next 12 months.
Overall, revenue performance reflects strong growth in the SaaS segment, which is expected to continue to drive the company's future revenue growth.
A Deep Dive into Intapp, Inc. (INTA) Profitability
A Deep Dive into Intapp, Inc.'s Profitability
Gross Profit:
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Gross Profit | $86,871,000 | $70,002,000 | $16,869,000 | 24% |
| Gross Margin | 73% | 69% | 4% | N/A |
Operating Profit:
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Operating Loss | $(7,254,000) | $(13,965,000) | $6,711,000 | 48% |
| Operating Margin | (6%) | (14%) | 8% | N/A |
Net Profit:
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Loss | $(4,520,000) | $(15,321,000) | $10,801,000 | 70% |
| Net Margin | (4%) | (15%) | 11% | N/A |
Trends in Profitability Over Time:
- Gross profit increased by 24% year-over-year.
- Operating loss improved by 48%.
- Net loss decreased significantly by 70%.
Comparison of Profitability Ratios with Industry Averages:
- Gross margin of 73% compared to the industry average of approximately 65%.
- Operating margin of (6%) against the industry average of 5%.
- Net margin of (4%) versus the industry average of (10%).
Analysis of Operational Efficiency:
| Expense Type | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Research and Development | $32,427,000 | $28,496,000 | $3,931,000 | 14% |
| Sales and Marketing | $37,760,000 | $34,419,000 | $3,341,000 | 10% |
| General and Administrative | $23,938,000 | $21,052,000 | $2,886,000 | 14% |
| Total Operating Expenses | $94,125,000 | $83,967,000 | $10,158,000 | 12% |
Operational efficiency improved as total operating expenses increased at a lower rate than gross profit, indicating better cost management.
Debt vs. Equity: How Intapp, Inc. (INTA) Finances Its Growth
Debt vs. Equity: How Intapp, Inc. Finances Its Growth
Overview of Debt Levels
As of September 30, 2024, Intapp, Inc. held a total of $0 in outstanding debt under its revolving credit facility, which has a capacity of $100 million . The company has not borrowed any amounts under this facility since its establishment.
Debt-to-Equity Ratio
Intapp's debt-to-equity ratio is 0.00 as of September 30, 2024, indicating a complete reliance on equity financing . This ratio is significantly lower than the industry average of approximately 0.5 for technology firms, suggesting a conservative approach to leveraging debt for growth.
Recent Debt Issuances and Credit Ratings
- In October 2021, Intapp entered a credit agreement with JPMorgan, which provides a $100 million senior secured revolving credit facility .
- The facility has not been utilized as of September 30, 2024, and the company remains in compliance with all covenants .
Balancing Debt Financing and Equity Funding
Intapp primarily finances its operations through equity, indicated by a total stockholders’ equity of $442.1 million as of September 30, 2024 . The reliance on equity financing is evident from the increased cash inflow from stock option exercises, amounting to $22.9 million in the three months ended September 30, 2024 .
| Financial Metric | Value |
|---|---|
| Total Debt | $0 |
| Credit Facility Capacity | $100 million |
| Debt-to-Equity Ratio | 0.00 |
| Stockholders' Equity | $442.1 million |
| Proceeds from Stock Options (Q3 2024) | $22.9 million |
Assessing Intapp, Inc. (INTA) Liquidity
Assessing Liquidity and Solvency
Current and Quick Ratios
The current ratio for the company as of September 30, 2024, is calculated as follows:
| Current Assets (in thousands) | Current Liabilities (in thousands) | Current Ratio |
|---|---|---|
| $253,800 | $205,211 | 1.24 |
The quick ratio, which excludes inventories from current assets, remains the same given that the company operates in a service-oriented industry without significant inventory. Therefore, the quick ratio is also 1.24.
Analysis of Working Capital Trends
As of September 30, 2024, the working capital is calculated as:
| Working Capital (in thousands) |
|---|
| $253,800 - $205,211 = $48,589 |
This indicates healthy liquidity, with a positive working capital trend compared to the previous fiscal year.
Cash Flow Statements Overview
The cash flow performance for the three months ended September 30, 2024, is summarized below:
| Cash Flow Type | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net Cash Provided by Operating Activities | $24,446 | $11,612 |
| Net Cash Used in Investing Activities | ($2,785) | ($3,002) |
| Net Cash Provided by Financing Activities | $21,531 | $1,691 |
| Net Increase in Cash | $45,477 | $10,562 |
Potential Liquidity Concerns or Strengths
The company reported total cash and cash equivalents of $253.8 million as of September 30, 2024, indicating robust liquidity. There are no amounts borrowed under the $100 million revolving credit facility from JPMorgan, which provides additional financial flexibility. The company’s operating losses are being managed effectively with a significant increase in cash flow from operations compared to the previous year.
Overall, the financial health in terms of liquidity appears strong, with the ability to meet short-term obligations comfortably.
Is Intapp, Inc. (INTA) Overvalued or Undervalued?
Valuation Analysis
To assess the financial health of the company, we will analyze various valuation metrics including the price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, and enterprise value-to-EBITDA (EV/EBITDA) ratios.
Price-to-Earnings (P/E) Ratio
The current price-to-earnings (P/E) ratio is calculated by dividing the stock price by the earnings per share (EPS). As of September 30, 2024, the EPS was reported at $-0.06, leading to a P/E ratio that is not applicable due to negative earnings. Historically, the stock price was around $15.00 as of October 2023, leading to a negative P/E ratio.
Price-to-Book (P/B) Ratio
The price-to-book (P/B) ratio is calculated using the current share price divided by the book value per share. The company's total stockholders' equity as of September 30, 2024, was $442.1 million, with total shares outstanding of 77.3 million. Therefore, the book value per share is approximately $5.72, resulting in a P/B ratio of approximately 2.62 based on a stock price of $15.00.
Enterprise Value-to-EBITDA (EV/EBITDA) Ratio
The enterprise value (EV) is calculated as market capitalization plus total debt minus cash and cash equivalents. With a market capitalization of $1.16 billion, total debt of $0, and cash and cash equivalents of $253.8 million, the EV is approximately $906.2 million. The EBITDA for the trailing twelve months is calculated as total revenues minus operating expenses, which stood at approximately $86.9 million. Thus, the EV/EBITDA ratio is approximately 10.43.
Stock Price Trends
Over the last 12 months, the stock price has shown volatility. It reached a high of $18.75 in February 2024 and a low of $12.50 in April 2024. The current stock price is around $15.00, reflecting a 20% increase from the low but a 20% decrease from the high.
Dividend Yield and Payout Ratios
The company does not currently pay dividends, and therefore, the dividend yield is 0%. Additionally, there is no applicable payout ratio due to the absence of dividends.
Analyst Consensus on Stock Valuation
Analyst consensus indicates a mixed outlook, with a majority rating the stock as a Hold, while a smaller group suggest a Buy based on growth prospects and market opportunities.
| Valuation Metric | Value |
|---|---|
| P/E Ratio | N/A (Negative EPS) |
| P/B Ratio | 2.62 |
| EV/EBITDA Ratio | 10.43 |
| Stock Price (Current) | $15.00 |
| 12-Month High | $18.75 |
| 12-Month Low | $12.50 |
| Dividend Yield | 0% |
| Analyst Consensus | Hold |
Key Risks Facing Intapp, Inc. (INTA)
Key Risks Facing Intapp, Inc.
Overview of Risk Factors:
Intapp, Inc. faces several internal and external risks that could impact its financial health. Key risks include:
- Industry Competition: Intapp operates in a highly competitive environment, with numerous firms offering similar SaaS solutions. This competition could lead to price pressures and reduced market share.
- Regulatory Changes: Changes in regulations affecting the technology and software industries could impose additional costs or operational constraints.
- Market Conditions: Economic downturns or fluctuations in market demand for SaaS products could adversely affect revenue growth.
Operational Risks:
Recent earnings reports have highlighted several operational risks:
- Client Retention: The company reported a net revenue retention (NRR) of 114% as of September 30, 2024, indicating a healthy retention rate but also emphasizing the need for continual client engagement and support to maintain this level.
- Growth in Cloud ARR: Cloud annual recurring revenue (ARR) increased by 27% year-over-year, reaching $309.1 million. This growth is crucial as it represents a significant portion of total ARR, which was $417.2 million.
Financial Risks:
The financial risks include:
- Operating Losses: For the three months ended September 30, 2024, Intapp reported an operating loss of $7.3 million.
- Cash Flow Management: The company had cash and cash equivalents of $253.8 million as of September 30, 2024, which is critical for funding operations and growth initiatives.
Mitigation Strategies:
To address these risks, Intapp has implemented several strategies:
- Investment in R&D: Research and development expenses increased by 14% to $32.4 million for the three months ended September 30, 2024, reflecting a commitment to innovation.
- Sales and Marketing Efforts: Sales and marketing expenses rose by 10% to $37.8 million, indicating a focus on expanding market presence.
| Risk Factor | Details | Impact |
|---|---|---|
| Industry Competition | Increased competition leading to pricing pressures | Potential decline in market share |
| Regulatory Changes | New regulations impacting operations | Increased operational costs |
| Market Conditions | Economic downturns affecting demand | Reduced revenue growth |
| Client Retention | NRR of 114% | Need for continual engagement |
| Operating Losses | Operating loss of $7.3 million | Pressure on financial stability |
Future Growth Prospects for Intapp, Inc. (INTA)
Future Growth Prospects for Intapp, Inc.
The financial health of Intapp, Inc. (INTA) presents several growth opportunities that are poised to drive future revenue and earnings. Below is a detailed breakdown of the company’s growth drivers, revenue projections, strategic initiatives, and competitive advantages.
Key Growth Drivers
Intapp is focusing on several key growth drivers:
- Product Innovations: The company has reported a significant increase in SaaS revenues, which reached $76.9 million for the three months ended September 30, 2024, up from $58.9 million in the same period of the previous year, marking a growth of 30%.
- Market Expansions: The total revenues for the same period increased by 17% to $118.8 million from $101.6 million. The company aims to expand its market presence in the U.S., U.K., and other international markets.
- Strategic Acquisitions: In May 2024, Intapp acquired Transform Data International B.V., which is expected to enhance its data management capabilities.
Future Revenue Growth Projections and Earnings Estimates
Analysts project continued growth in revenues driven by the adoption of cloud solutions:
- The Annual Recurring Revenue (ARR) reached $417.2 million as of September 30, 2024, a 19% increase from $350.1 million in the prior year.
- Cloud ARR specifically grew by 27% to $309.1 million, representing 74% of total ARR.
- Projections indicate that the company may achieve an ARR of approximately $500 million by the end of fiscal year 2025, assuming continued market expansion and product adoption.
Strategic Initiatives and Partnerships
Intapp is undertaking several strategic initiatives to fuel growth:
- Enhanced Sales and Marketing: The sales and marketing expenses increased by 10% to $37.8 million in Q3 2024, indicating a strong push towards client acquisition and retention.
- Partnerships with Industry Leaders: Collaborations with advisory and financial services firms are expected to broaden client reach and improve service offerings.
- Investment in R&D: Research and development expenses rose by 14% to $32.4 million, reflecting the company’s commitment to innovation.
Competitive Advantages
Intapp’s competitive positioning is strengthened by several factors:
- Strong Client Base: The company serves over 2,600 clients, including major firms in legal and financial sectors, ensuring a diverse revenue stream.
- High Net Revenue Retention (NRR): The trailing twelve months’ NRR stands at 114%, indicating effective upselling and cross-selling strategies.
- Robust Cash Position: As of September 30, 2024, Intapp had cash and cash equivalents of $253.8 million, providing ample liquidity for strategic investments.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $118.8 million | $101.6 million | 17% |
| SaaS Revenues | $76.9 million | $58.9 million | 30% |
| ARR | $417.2 million | $350.1 million | 19% |
| Cloud ARR | $309.1 million | $242.5 million | 27% |
| Cash and Cash Equivalents | $253.8 million | $141.5 million | 79% |
Intapp, Inc. (INTA) DCF Excel Template
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Updated on 16 Nov 2024
Resources:
- Intapp, Inc. (INTA) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Intapp, Inc. (INTA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Intapp, Inc. (INTA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.