INTA earnings call summary

Prepared Highlights

• Cloud ARR reached $401M, up 30% YoY; cloud now represents 80% of total ARR of $504M (CEO, CFO).
• SaaS revenue was $97.5M, up 27% YoY; SaaS now 70% of total revenue, up >5 points YoY (CFO).
• Total revenue was $139M, up 17% YoY (CEO, CFO).
• License revenue was $29.2M, up 2% YoY; Professional services revenue was $12.3M, down 8% YoY (CFO).
• Non-GAAP gross margin was 77.7%, up from 76.3% a year ago (CFO).
• Non-GAAP operating income was $20.9M, up from $15.1M in Q1 last year (CFO).
• Non-GAAP diluted EPS was $0.24, compared to $0.21 in prior year period (CFO).
• Free cash flow was $13.2M for the quarter (CFO).
• Total RPO was $715.2M, up 30% YoY (CFO).
• Cloud net revenue retention rate was 121% in Q1 (CFO).
• Clients with ARR ≥$100K totaled 813, up from 707 a year ago; these represent ~30% of total clients of 2,750 (CFO).
• Share repurchase: $50M or ~1.1M shares repurchased in Q1 under $150M authorized program (CFO).

Official Guidance

• Q2 FY2026: SaaS revenue $100M–$101M; total revenue $137.6M–$138.6M; non-GAAP operating income $21.4M–$22.4M; non-GAAP EPS $0.25–$0.27 (diluted share count ~84M) (CFO).
• Full Year FY2026: SaaS revenue $412M–$416M; total revenue $569.3M–$573.3M; non-GAAP operating income $97.7M–$101.7M; non-GAAP EPS $1.15–$1.19 (diluted share count ~85M) (CFO).

Mgmt Quotes

• "The new Intapp Time offers GenAI capabilities that monitor users' workdays to find and capture billable activities, to validate entries against client guidelines, to suggest corrections when needed, and to answer questions about entries and unreleased time via an AI chat experience." (CEO)
• "Brian Donato, CIO at Vorys... said, the Intapp Time release is very intuitive and won't require us to retrain our lawyers. Our users really like the quick add functionality, the ability to use AI to create narratives and the ability to group activities in the activity stream." (CEO)
• "Of our 10 largest Q1 wins, more than half were jointly executed with Microsoft. In several of those, Microsoft fronted Azure investment dollars to help accelerate the deals." (CEO)
• "Cloud annual recurring revenue surpassed $400 million in Q1, a 30% year-over-year increase as we expanded enterprise wallet share across our vertical markets." (CFO)
• "We're also seeing strong progress in executing our vertical applied AI strategy with absolute growth in AI SKU ACV dollars and attach rates, while maintaining discipline in our operating model, proving that efficiency and leverage are tenable." (CFO)

Prepared Metrics

Q&A Batch (1-5 of 9)

Q1 — Kevin McVeigh

• Topic: Net revenue retention (NRR) drivers and GenAI impact on client behavior
• Key points:
  • NRR was 121%, up from last quarter; driven by upsell (additional seats) and cross-sell motion; enterprise model introduced last year continues to densify key accounts.
  • Churn remains low single-digits; product adoption and delivery well-received.
  • GenAI: firm is a big believer; has a program extending traditional ML with GenAI; recent announcement was "time release" tool; one client COO reported trying 9 different AI start-up tools.
  • Charging: contracts allow metering in different ways; already have per-user and firm-size revenue; working with early adopters on other models; firms are "pretty excited to pay" given ROI.
• Mgmt stance: Bullish — optimistic about GenAI opportunity to leverage existing scaled compliant systems and integrated workflow; monetization strategy deliberate.

Q2 — Alexei Gogolev

• Topic: ARR acceleration drivers and guidance conservatism
• Key points:
  • ARR and NRR acceleration driven by combination of industry trends: law firm consolidation, PE rolling up midsized accounting firms (creating compliance needs), regulatory changes (e.g., AML in Australia), PE industry secular growth (firms raising larger funds).
  • Technology transformation: digital transformation slower to come to this market; post-COVID cloud commitment accelerating; AI causing firms to re-evaluate IT portfolio.
  • Guidance: full-year outlook raised by less than Q1 beat; management cites "series of prudence" and moving parts with services and license.
• Mgmt stance: Neutral/cautious — guidance described as "prudent" to keep heads down and execute; cloud-focused but with moving parts.

Q3 — J. Lane

• Topic: Cloud migration holdouts and professional services margin/revenue trends
• Key points:
  • Cloud migration trend strong and accelerating; traditional impediments (regulatory, hosting) largely solved via Microsoft partnership; AI capturing attention but firms need trusted partner for compliance (client confidentiality, MNPI, IP management).
  • IT budget prioritization is the remaining practical issue; working with clients to get "at the front of the line with the AI story."
  • Professional services: margin pressure expected to moderate through back half of the year; longer-term model around 10% of revenue in services, could deviate 1–2 points per quarter.
• Mgmt stance: Bullish on cloud pull-through via AI and compliance; neutral on services — balancing ecosystem build vs. customer-first, with margin moderation expected.

Q4 — Koji Ikeda

• Topic: AI adoption by vertical (financial vs. professional services) and billings volatility
• Key points:
  • Both verticals are "super excited" about AI; focus is on vertical AI solutions integrating proprietary data, governance, and firm workflows; law firms distinguish "practice of law" vs. "business of law"; financial services focus on sourcing/origination.
  • Billings: volatility expected to smooth out in 6–9 months as services (fixed fee) and license (half upfront under ASC 606) transition; Q1 FY26 deferred revenue $239M (down from Q4 FY25 all-time high $259M) but up YoY from $205M.
• Mgmt stance: Bullish on AI opportunity across both verticals; neutral on billings — on right trajectory, smoothing expected.

Q5 — Dominique Manansala

• Topic: ARR seasonality with enterprise shift and path to $1B revenue
• Key points:
  • Seasonal patterns (Q2 and Q4 stronger ARR quarters) expected to continue; driven by client fiscal year-end and budget flush; enterprise shift does not intensify or deviate from "asymptote."
  • Path to $1B: two ways — selling more to existing clients (cross-sell/upsell) or landing new clients in large underserved TAM (3% of global economy); execution levers include client success, cross-sell/upsell, new client landing via reputation, innovation, and talent.
• Mgmt stance: Bullish — large opportunity; vertical strategy and client trust key; continued innovation and talent acquisition will drive scale.

Q&A Batch (6-9 of 9)

Q6 — Alexander Sklar

• Topic: International expansion and direct sales hiring plans
• Key points:
  • Historically, ~30% to 1/3 of business is international; strong in UK, Australia, New Zealand, Canada, growing in Continental Europe and Nordics; Singapore office opened last year.
  • New partners expanding into Spanish-speaking and Portuguese-speaking countries; incremental investment for international has been “pretty nominal” so far.
  • Enterprise group (announced at beginning of ’25) showing traction; land of a bulge bracket investment bank cited as direct result; hiring will continue during fiscal ’26 leading into fiscal ’27.
• Mgmt stance: Bullish – sees large enterprise opportunity and growing partner ecosystem; investment pacing is manageable.

Q7 — Steven Enders

• Topic: Microsoft partnership dynamics and margin guidance
• Key points:
  • Microsoft relationship spans technology (AI, collaboration), marketing (co-present/co-market), and co-selling; all Intapp offerings available on Azure marketplace.
  • Clients can use Azure MACC agreements to buy Intapp software, removing budget hurdles; Microsoft field gets quota relief when Intapp sells, leading to leads and co-selling.
  • Operating margin beat in Q1 but not flowing through to full-year guide; management cites continued investment in product innovation and go-to-market, plus front-end loaded marketing events.
• Mgmt stance: Neutral – margin beat acknowledged, but full-year guide unchanged due to planned investments.

Q8 — Saket Kalia

• Topic: Cloud net new ARR, on-prem conversions, and AI roadmap
• Key points:
  • On-prem conversions yield 20%–30% uplift through more seats and cross-sell; cloud net ARR from conversions was “not that material” in Q1, but acceleration expected through the year.
  • Intapp Time AI is a key driver; parallel project launched for compliance capabilities still on-prem in legal market.
  • Cloud NRR reported at 121%; GenAI features (DealCloud, Assist for Terms, Intapp Time Horizon) pulling platform uptake.
• Mgmt stance: Bullish – sees strong conversion uplift and AI-driven migration momentum; compliance migration next.

Q9 — Camden Levy

• Topic: Product drivers of SaaS beat and growth mix
• Key points:
  • Good uptake across the board; GenAI features in cloud pulling platform; DealCloud was first launch, followed by Assist for Terms and Intapp Time Horizon with GenAI.
  • Pattern of sequential releases; as more clients go live and references build, excitement grows.
• Mgmt stance: Bullish – consistent product rollout driving adoption; no single product dramatically outperformed plan.