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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 December 31, Six Months Ended December 31, 2024 2023 2024 2023 GAAP gross profit $88,738 $73,164 $175,609 $143,166 Adjusted to exclude the following: Stock-based compensation 2,702 2,018 4,934 3,892 Amortization of intangible assets 1,509 1,055 3,080 2,110 Restructuring and other costs 53 — 62 — Non-GAAP gross profit $93,002 $76,237 $183,685 $149,168 Non-GAAP gross margin 76.7% 73.4% 76.5% 72.6% Non-GAAP Operating Expenses Three Months Ended December 31, Six Months Ended December 31, 2024 2023 2024 2023 GAAP research and development $33,325 $27,981 $65,752 $56,477 Stock-based compensation (6,800) (4,468) (11,424) (9,114)Restructuring and other costs (113) — (162) — Non-GAAP research and development $26,412 $23,513 $54,166 $47,363 GAAP sales and marketing $40,791 $35,269 $78,551 $69,688 Stock-based compensation (7,232) (4,888) (12,970) (10,227)Amortization of intangible assets (1,268) (1,396) (2,536) (2,883)Non-GAAP sales and marketing $32,291 $28,985 $63,045 $56,578 GAAP general and administrative $24,808 $20,996 $48,746 $42,048 Stock-based compensation (8,677) (5,134) (16,072) (12,032)Amortization of intangible assets (163) (163) (326) (326)Change in fair value of contingent consideration — 784 1,004 2,215 Transaction costs (1) (530) (350) (664) (678)Restructuring and other costs (64) — (236) — Non-GAAP general and administrative $15,374 $16,133 $32,452 $31,227 Non-GAAP Operating Income Three Months Ended December 31, Six Months Ended December 31, 2024 2023 2024 2023 GAAP operating loss $(10,186) $(11,082) $(17,440) $(25,047)Adjusted to exclude the following: Stock-based compensation 25,411 16,508 45,400 35,265 Amortization of intangible assets 2,940 2,614 5,942 5,319 Change in fair value of contingent consideration — (784) (1,004) (2,215)Transaction costs (1) 530 350 664 678 Restructuring and other costs 230 — 460 — Non-GAAP operating income $18,925 $7,606 $34,022 $14,000 Non-GAAP Net Income Three Months Ended December 31, Six Months Ended December 31, 2024 2023 2024 2023 GAAP net loss $(10,217) $(9,213) $(14,737) $(24,534)Adjusted to exclude the following: Stock-based compensation 25,411 16,508 45,400 35,265 Amortization of intangible assets 2,940 2,614 5,942 5,319 Change in fair value of contingent consideration — (784) (1,004) (2,215)Transaction costs (1) 530 350 664 678 Restructuring and other costs 230 — 460 — Income tax effect of non-GAAP adjustments (1,489) (710) (2,513) (1,125)Non-GAAP net income $17,405 $8,765 $34,212 $13,388 GAAP net loss per share, basic and diluted $(0.13) $(0.13) $(0.19) $(0.35)Non-GAAP net income per share, diluted $0.21 $0.11 $0.41 $0.17 Weighted-average shares used to compute GAAP net loss per share, basic and diluted 78,118 70,521 76,861 69,729 Weighted-average shares used to compute non-GAAP net income per share, diluted 83,910 80,285 82,724 79,926 Free Cash Flow Three Months Ended December 31, Six Months Ended December 31, 2024 2023 2024 2023 Net cash provided by operating activities $25,239 $12,035 $49,685 $23,647 Adjusted for the following cash outlay: Purchases of property and equipment (62) (213) (416) (1,354)Free cash flow (2) $25,177 $11,822 $49,269 $22,293 (1) Consists of acquisition-related transaction costs, costs related to a legal settlement incurred in connection with an acquisition and costs related to certain non-capitalized offering-related expenses.(2) Beginning with the second quarter ended December 31, 2023, we have excluded capitalized internal-use software costs and cash paid for interest from the calculation of our free cash flow, which we believe better aligns with industry standard.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited, in thousands) Three Months Ended December 31, Six Months Ended December 31, 2024 2023 2024 2023 Cash Flows from Operating Activities: Net loss $(10,217) $(9,213) $(14,737) $(24,534)Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 4,372 3,975 8,839 7,984 Amortization of operating lease right-of-use assets 1,278 1,152 2,558 2,282 Accounts receivable allowances 273 803 823 1,228 Stock-based compensation 25,411 16,508 45,400 35,265 Change in fair value of contingent consideration — (784) (1,004) (2,215)Deferred income taxes (26) (104) (74) (217)Other 38 39 76 77 Changes in operating assets and liabilities: Accounts receivable (23,742) (10,902) 6,465 12,570 Unbilled receivables, current (1,009) (1,888) (486) (5,774)Prepaid expenses and other assets (2,433) (446) (5,001) (1,788)Deferred commissions (1,832) (1,189) (165) (1,068)Accounts payable and accrued liabilities 185 9,760 (7,875) (1,517)Deferred revenue, net 32,784 4,615 15,509 4,837 Operating lease liabilities (1,344) (768) (2,675) (2,339)Other liabilities 1,501 477 2,032 (1,144)Net cash provided by operating activities 25,239 12,035 49,685 23,647 Cash Flows from Investing Activities: Purchases of property and equipment (62) (213) (416) (1,354)Capitalized internal-use software costs (1,915) (1,592) (3,449) (3,453)Business combinations, net of cash acquired — — (897) — Net cash used in investing activities (1,977) (1,805) (4,762) (4,807)Cash Flows from Financing Activities: Payments for deferred offering costs — (148) — (781)Proceeds from stock option exercises 9,666 15,612 32,584 17,936 Proceeds from employee stock purchase plan 1,970 1,725 1,970 1,725 Payments of deferred contingent consideration and holdback associated with acquisitions (1,023) (2,551) (2,410) (2,551)Net cash provided by financing activities 10,613 14,638 32,144 16,329 Effect of foreign currency exchange rate changes on cash and cash equivalents (2,091) (58) 194 203 Net increase in cash, cash equivalents and restricted cash 31,784 24,810 77,261 35,372 Cash, cash equivalents and restricted cash - beginning of period 254,047 141,747 208,570 131,185 Cash, cash equivalents and restricted cash - end of period $285,831 $166,557 $285,831 $166,557 INTAPP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited, in thousands, except per share data and percentages) Three Months Ended December 31, Six Months Ended December 31, 2024 2023 2024 2023 Revenues SaaS $79,976 $63,117 $156,852 $122,030 License 28,017 28,135 56,509 56,186 Professional services 13,216 12,681 26,653 27,292 Total revenues 121,209 103,933 240,014 205,508 Cost of revenues SaaS 16,292 12,810 31,610 25,521 License 1,630 1,606 3,382 3,308 Professional services 14,549 16,353 29,413 33,513 Total cost of revenues 32,471 30,769 64,405 62,342 Gross profit 88,738 73,164 175,609 143,166 Gross margin 73.2% 70.4% 73.2% 69.7%Operating expenses: Research and development 33,325 27,981 65,752 56,477 Sales and marketing 40,791 35,269 78,551 69,688 General and administrative 24,808 20,996 48,746 42,048 Total operating expenses 98,924 84,246 193,049 168,213 Operating loss (10,186) (11,082) (17,440) (25,047)Interest and other income (expense), net (202) 2,057 3,220 1,114 Net loss before income taxes (10,388) (9,025) (14,220) (23,933)Income tax benefit (expense) 171 (188) (517) (601)Net loss $(10,217) $(9,213) $(14,737) $(24,534)Net loss per share, basic and diluted $(0.13) $(0.13) $(0.19) $(0.35)Weighted-average shares used to compute net loss per share, basic and diluted 78,118 70,521 76,861 69,729 INTAPP, INC.
