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Intapp, Inc. (INTA)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 FY25 delivered strong growth: total revenue $121.2M (+17% y/y), SaaS revenue $80.0M (+27% y/y), Cloud ARR $331.1M (+29% y/y); non-GAAP diluted EPS $0.21 and non-GAAP operating income $18.9M .
  • FY25 guidance raised across the board: total revenue to $498.5–$502.5M, non-GAAP operating income to $70.2–$74.2M, and non-GAAP EPS to $0.83–$0.87; Q3 guidance set at total revenue $128.3–$129.3M and non-GAAP EPS $0.21–$0.23 .
  • KPIs strengthened: Cloud NRR 119%, RPO $615.3M (+37% y/y), clients >2,650 with 728 over $100k ARR; cash and equivalents rose to $285.6M .
  • Catalysts: raised FY guide, expanding AI offerings (Intapp Assist, Walls for Copilot), deepening Microsoft Azure Marketplace co-sell, accelerating on‑prem to cloud migrations (with ~20% upsell on conversions) .

What Went Well and What Went Wrong

What Went Well

  • AI product momentum and Microsoft partnership drove new wins and expansions; 92% of clients adopted at least one cloud module, and Azure Marketplace co-sell accelerated large enterprise adoption .
  • Margin execution improved: non-GAAP gross margin reached 76.7% (vs. 73.4% y/y), supported by professional services nearing breakeven and cloud optimization .
  • Land-and-expand working: Cloud ARR up 29% y/y; cohort growth with 728 clients >$100k ARR; Cloud NRR 119% underscored strong upsell/cross‑sell .

What Went Wrong

  • Back‑end loading of December deals tempered in‑quarter SaaS revenue yield; some deals starting 1/1/25 limited recognized revenue in Q2 despite strong bookings .
  • License revenue remained flat y/y at ~$28M due to client migrations to cloud (positive strategically, neutral for near‑term license revenue) .
  • Large enterprise deal timing remained lumpy; management noted evolving seasonality (December/June strength) and ongoing linearity normalization into Q3 .

Financial Results

Quarterly Performance vs. Prior Periods

MetricQ4 2024Q1 2025Q2 2025
Total Revenue ($USD Millions)$114.4 $118.8 $121.2
SaaS Revenue ($USD Millions)Taxonomy change; see note $76.9 $80.0
License Revenue ($USD Millions)Subscription license $16.1 $28.5 $28.0
Professional Services Revenue ($USD Millions)$13.3 $13.4 $13.2
GAAP Gross Margin (%)73.1% 73.1% 73.2%
Non-GAAP Gross Margin (%)76.1% 76.3% 76.7%
GAAP Net Loss per Share ($)$(0.01) $(0.06) $(0.13)
Non-GAAP Diluted EPS ($)$0.15 $0.21 $0.21
Non-GAAP Operating Income ($USD Millions)$13.5 $15.1 $18.9
Cash & Cash Equivalents ($USD Millions)$208.6 $253.8 $285.6

Note: Effective July 1, 2024, support services related to subscription license were reclassified to “license”. Prior periods reflect “SaaS and Support” taxonomy; comparability noted by management .

Segment Revenue Breakdown (New Taxonomy)

SegmentQ1 2025 ($USD Millions)Q2 2025 ($USD Millions)
SaaS$76.9 $80.0
License$28.5 $28.0
Professional Services$13.4 $13.2

KPIs and Operating Metrics

KPIQ4 2024Q1 2025Q2 2025
Cloud ARR ($USD Millions)$296.7 $309.1 $331.1
Total ARR ($USD Millions)$404.2 $417.2 $437.1
Net Revenue Retention (%)116% (total) 119% (cloud) 119% (cloud)
Total Clients>2,550 >2,600 >2,650
Clients ≥$100k ARR698 707 728
Remaining Performance Obligations ($USD Millions)—$549.4 $615.3

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
SaaS Revenue ($M)FY 2025$327.6–$331.6 $328.8–$332.8 Raised
Total Revenue ($M)FY 2025$495.5–$499.5 $498.5–$502.5 Raised
Non-GAAP Operating Income ($M)FY 2025$61.5–$65.5 $70.2–$74.2 Raised
Non-GAAP Diluted EPS ($)FY 2025$0.73–$0.77 $0.83–$0.87 Raised
SaaS Revenue ($M)Q2 2025 (Guided vs Actual)$79.5–$80.5 Actual: $80.0 In-line
Total Revenue ($M)Q2 2025 (Guided vs Actual)$120.5–$121.5 Actual: $121.2 Slight beat
Non-GAAP Operating Income ($M)Q2 2025 (Guided vs Actual)$14.0–$15.0 Actual: $18.9 Beat
Non-GAAP Diluted EPS ($)Q2 2025 (Guided vs Actual)$0.15–$0.17 Actual: $0.21 Beat
SaaS Revenue ($M)Q3 2025—$84.0–$85.0 New
Total Revenue ($M)Q3 2025—$128.3–$129.3 New
Non-GAAP Operating Income ($M)Q3 2025—$18.5–$19.5 New
Non-GAAP Diluted EPS ($)Q3 2025—$0.21–$0.23 New

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024 & Q1 2025)Current Period (Q2 2025)Trend
Applied AI (Intapp Assist, Walls for Copilot)Launch and expansion across DealCloud and Terms; early traction; co-innovation with Microsoft Added natural language search in DealCloud; expanded Walls for Copilot OneDrive risk assessment; continued pipeline build Accelerating adoption
Microsoft Azure Marketplace co-sellRequalified as top-tier ISV; increasing transactions; quota relief for MSFT reps Large investment bank expanded via Azure Marketplace; continued co-sell Strengthening
Enterprise go-to-market realignmentShift of resources to named enterprise accounts; initial pause in large account closings in Q1 Transformation complete; December bookings strong; productivity improving Stabilizing, positive
Services margin and efficiencyAim for breakeven; improved mix and cloud optimization lifted margins Professional services gross margin profitable; margin trajectory ahead of plan Improving
Seasonality and deal timingEvolving seasonality (Dec/Jun); lumpy large deals Back-end loaded December; Q3 linearity expected better; noted slim revenue yield from late SaaS starts Recognized; managed
On-prem to cloud migrationsProgram launched FY25; migrations enable AI and higher expansion rates Active migrations with 6–9 month timing; ~20% upsell economics on conversions Building tailwind
International revenue~34% of revenue in Q1; growth YOY International revenue grew 24% y/y; ~1/3 of total Healthy growth

Management Commentary

  • “We’ve achieved strong quarterly results supported by cloud ARR, new AI capabilities, new partnerships, new logos, expanded client accounts and cloud migrations around the world.” – John Hall, CEO .
  • “Non-GAAP gross margin was 76.7%, reflecting progress toward breakeven professional services gross margins and optimizing the relative top line contribution from that business.” – David Morton, CFO .
  • “Our Microsoft partnership continues to be a growth lever… clients purchased Intapp solutions through the Azure Marketplace… use pre-committed Microsoft spend to acquire our technology.” – John Hall .
  • “There is additional value [in conversions]… we’ve experienced thus far a nominal 20% upside.” – David Morton on on‑prem to SaaS conversions .

Q&A Highlights

  • Guidance philosophy and visibility: Management continues prudent guides with strong pipeline; December back-end loading impacted in-quarter SaaS yield, with some 1/1/25 starts .
  • Margin trajectory: Services margins profitable below the line; mid-term trajectory improving though formal targets unchanged .
  • Enterprise GTM changes: Reorg completed; December outcomes strong; continued investment in S&M to scale into FY26 .
  • Seasonality and linearity: Noted December/June seasonality; Q3 expected less back‑end loaded than Q2 .
  • Microsoft partnership and AI: Deepening engineering collaboration; co-sell momentum and marketplace procurement easing friction .

Estimates Context

  • S&P Global consensus for Q2 FY25 revenue and EPS was unavailable due to daily request limits; therefore, comparisons anchor to company guidance and reported actuals. Values would be retrieved from S&P Global if accessible.

Key Takeaways for Investors

  • FY25 guide raised materially across revenue, operating income, and EPS; Q2 exceeded its own non‑GAAP EPS and operating income guidance, underscoring execution momentum .
  • AI differentiation plus Microsoft Azure Marketplace co‑sell is driving enterprise wins; expect continued tailwinds from applied AI features embedded in daily workflows .
  • Transition to cloud (and programmatic migrations) should lift ARR and monetization, with ~20% upsell on conversions over 6–9 months—supporting H2 FY25 and FY26 growth visibility .
  • Margin trajectory improving with services profitability and cloud optimization; sustaining non‑GAAP gross margin mid‑70s provides leverage while funding product-led growth .
  • Seasonality and deal lumpiness persist (Dec/Jun), but management expects improved linearity in Q3; watch Q3 delivery vs. guide as a near-term trading catalyst .
  • KPIs trending positively: Cloud ARR +29% y/y, Cloud NRR 119%, RPO +37% y/y; these forward indicators suggest durable demand in targeted verticals .
  • Cash position strengthened to $285.6M, supporting continued investment in AI, GTM, and partner ecosystem expansion .