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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 March 31, Nine Months Ended March 31, 2025 2024 2025 2024 GAAP gross profit $96,406 $80,058 $272,015 $223,224 Adjusted to exclude the following: Stock-based compensation 2,619 1,956 7,553 5,848 Amortization of intangible assets 1,509 1,054 4,589 3,164 Restructuring and other costs 40 — 102 — Non-GAAP gross profit $100,574 $83,068 $284,259 $232,236 Non-GAAP gross margin 77.9% 75.1% 77.0% 73.5% Non-GAAP Operating Expenses Three Months Ended March 31, Nine Months Ended March 31, 2025 2024 2025 2024 GAAP research and development $34,089 $27,319 $99,841 $83,796 Stock-based compensation (6,381) (2,509) (17,805) (11,623)Restructuring and other costs (9) (52) (171) (52)Non-GAAP research and development $27,699 $24,758 $81,865 $72,121 GAAP sales and marketing $42,258 $35,256 $120,809 $104,944 Stock-based compensation (6,267) (4,207) (19,237) (14,434)Amortization of intangible assets (1,038) (1,398) (3,574) (4,281)Restructuring and other costs (88) — (88) — Non-GAAP sales and marketing $34,865 $29,651 $97,910 $86,229 GAAP general and administrative $25,761 $24,929 $74,507 $66,977 Stock-based compensation (7,448) (5,354) (23,520) (17,386)Amortization of intangible assets (162) (163) (488) (489)Change in fair value of contingent consideration — (490) 1,004 1,725 Transaction costs (1) (394) (1,471) (1,058) (2,149)Restructuring and other costs — — (236) — Non-GAAP general and administrative $17,757 $17,451 $50,209 $48,678 Non-GAAP Operating Income Three Months Ended March 31, Nine Months Ended March 31, 2025 2024 2025 2024 GAAP operating loss $(5,702) $(7,446) $(23,142) $(32,493)Adjusted to exclude the following: Stock-based compensation 22,715 14,026 68,115 49,291 Amortization of intangible assets 2,709 2,615 8,651 7,934 Change in fair value of contingent consideration — 490 (1,004) (1,725)Transaction costs (1) 394 1,471 1,058 2,149 Restructuring and other costs 137 52 597 52 Non-GAAP operating income $20,253 $11,208 $54,275 $25,208 Non-GAAP Net Income Three Months Ended March 31, Nine Months Ended March 31, 2025 2024 2025 2024 GAAP net loss $(2,952) $(6,890) $(17,689) $(31,424)Adjusted to exclude the following: Stock-based compensation 22,715 14,026 68,115 49,291 Amortization of intangible assets 2,709 2,615 8,651 7,934 Change in fair value of contingent consideration — 490 (1,004) (1,725)Transaction costs (1) 394 1,471 1,058 2,149 Restructuring and other costs 137 52 597 52 Income tax effect of non-GAAP adjustments (1,320) (611) (3,833) (1,736)Non-GAAP net income $21,683 $11,153 $55,895 $24,541 GAAP net loss per share, basic and diluted $(0.04) $(0.09) $(0.23) $(0.44)Non-GAAP net income per share, diluted $0.26 $0.14 $0.67 $0.31 Weighted-average shares used to compute GAAP net loss per share, basic and diluted 79,890 72,634 77,856 70,690 Weighted-average shares used to compute non-GAAP net income per share, diluted 84,933 81,437 83,449 80,426 Free Cash Flow Three Months Ended March 31, Nine Months Ended March 31, 2025 2024 2025 2024 Net cash provided by operating activities $35,501 $16,505 $85,186 $40,152 Adjusted for the following cash outlay: Purchases of property and equipment (379) (374) (795) (1,728)Free cash flow (2) $35,122 $16,131 $84,391 $38,424 (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 March 31, Nine Months Ended March 31, 2025 2024 2025 2024 Cash Flows from Operating Activities: Net loss $(2,952) $(6,890) $(17,689) $(31,424)Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 4,153 4,022 12,992 12,006 Amortization of operating lease right-of-use assets 1,228 1,240 3,786 3,522 Accounts receivable allowances 669 1,567 1,492 2,795 Stock-based compensation 22,715 14,026 68,115 49,291 Change in fair value of contingent consideration — 490 (1,004) (1,725)Deferred income taxes (311) (107) (385) (324)Other 260 38 336 115 Changes in operating assets and liabilities: Accounts receivable 24,973 (2,469) 31,438 10,101 Unbilled receivables, current (3,780) (30) (4,266) (5,804)Prepaid expenses and other assets (1,700) (2,347) (6,701) (4,135)Deferred commissions 861 (696) 696 (1,764)Accounts payable and accrued liabilities 6,683 7,783 (1,192) 6,266 Deferred revenue, net (15,517) 96 (8) 4,933 Operating lease liabilities (1,009) (1,144) (3,684) (3,483)Other liabilities (772) 926 1,260 (218)Net cash provided by operating activities 35,501 16,505 85,186 40,152 Cash Flows from Investing Activities: Purchases of property and equipment (379) (374) (795) (1,728)Capitalized internal-use software costs (2,046) (1,764) (5,495) (5,217)Business combinations, net of cash acquired — — (897) — Net cash used in investing activities (2,425) (2,138) (7,187) (6,945)Cash Flows from Financing Activities: Payments for deferred offering costs — — — (781)Proceeds from stock option exercises 3,555 7,251 36,139 25,187 Proceeds from employee stock purchase plan — — 1,970 1,725 Payments of deferred contingent consideration and holdback associated with acquisitions — — (2,410) (2,551)Net cash provided by financing activities 3,555 7,251 35,699 23,580 Effect of foreign currency exchange rate changes on cash and cash equivalents 944 (549) 1,138 (346)Net increase in cash, cash equivalents and restricted cash 37,575 21,069 114,836 56,441 Cash, cash equivalents and restricted cash - beginning of period 285,831 166,557 208,570 131,185 Cash, cash equivalents and restricted cash - end of period $323,406 $187,626 $323,406 $187,626 INTAPP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited, in thousands, except per share data and percentages) Three Months Ended March 31, Nine Months Ended March 31, 2025 2024 2025 2024 Revenues SaaS $84,910 $66,391 $241,762 $188,421 License 31,684 30,946 88,193 87,132 Professional services 12,473 13,302 39,126 40,594 Total revenues 129,067 110,639 369,081 316,147 Cost of revenues SaaS 16,897 13,355 48,507 38,876 License 1,511 1,547 4,893 4,855 Professional services 14,253 15,679 43,666 49,192 Total cost of revenues 32,661 30,581 97,066 92,923 Gross profit 96,406 80,058 272,015 223,224 Gross margin 74.7% 72.4% 73.7% 70.6%Operating expenses: Research and development 34,089 27,319 99,841 83,796 Sales and marketing 42,258 35,256 120,809 104,944 General and administrative 25,761 24,929 74,507 66,977 Total operating expenses 102,108 87,504 295,157 255,717 Operating loss (5,702) (7,446) (23,142) (32,493)Interest and other income, net 3,384 758 6,604 1,872 Net loss before income taxes (2,318) (6,688) (16,538) (30,621)Income tax expense (634) (202) (1,151) (803)Net loss $(2,952) $(6,890) $(17,689) $(31,424)Net loss per share, basic and diluted $(0.04) $(0.09) $(0.23) $(0.44)Weighted-average shares used to compute net loss per share, basic and diluted 79,890 72,634 77,856 70,690 INTAPP, INC.
