Intapp (NASDAQ:INTA) reported fiscal first-quarter 2027 results marked by subscription growth, higher profitability and the general availability of its Celeste artificial intelligence platform, which the company positions as a tool for managing business processes at professional-services firms.
Chairman and CEO John Hall said the quarter was significant because Celeste became generally available on July 15. The platform is designed for what Intapp calls “Firm AI,” focused on processes including client intake, conflicts checks, deal screening, time capture and engagement economics. Hall contrasted that approach with horizontal AI tools intended to speed individual workers’ tasks and practice AI tools used for individual work products.
“Firm AI is AI for the business of the firm,” Hall said, adding that it depends on firms’ proprietary data and compliance policies. He said the company’s Celeste pipeline has grown by between two and three times since general availability, with more firms progressing from trials to deployments.
Financial Results and Key Metrics
Chief Financial Officer David Morton said subscription revenue rose 29% year over year to $125.5 million, accelerating from 27% growth in the preceding quarter. Total revenue increased 16% to $161.3 million.
License revenue declined 21% to $23 million, which Morton attributed to shorter on-premises contract durations as customers prepare to migrate to cloud offerings. Professional services revenue increased 3% to $12.7 million and represented 8% of total revenue.
- Cloud annual recurring revenue increased 28% year over year to $515.3 million.
- Total ARR grew 20% to $607.1 million.
- Cloud represented 85% of total ARR, compared with 80% a year earlier.
- Cloud net revenue retention was 123%.
- Non-GAAP operating income rose to $35.4 million from $20.9 million a year earlier, producing a 22% operating margin.
- Non-GAAP diluted earnings per share were $0.44, compared with $0.24 a year earlier.
- Free cash flow totaled $28.1 million, more than double the prior-year period.
Intapp ended the quarter with $147.7 million in cash and cash equivalents. The company repurchased about 600,000 shares for $25 million during the quarter and had $50 million remaining under its current repurchase authorization.
The company reported 908 clients with at least $100,000 in ARR, up 12% year over year, and more than 1,400 customers generating at least $50,000 in ARR.
Celeste Adoption, Cloud Migration and Partnerships
Hall said Celeste had been activated for more than 150 DealCloud customers. Intapp also released Compliance with Celeste and Time with Celeste in August, adding agentic workflows to its compliance, intake, conflicts, terms and time-management products.
Morton said Firm AI represented more than 40% of net new bookings in the fiscal first quarter, compared with more than 20% in the prior quarter. He said qualified Celeste pipeline rose about 2.5 times sequentially following the general-availability release and associated customer events.
Management said demand for Celeste was running ahead of its current deployment capacity. Morton said the company is adding resources, including firm-deployed engineers, to support proofs of concept and customer implementations. He said the company expects execution to build through the remainder of the fiscal year, while acknowledging ongoing capacity constraints.
Hall also highlighted Intapp’s Walls for AI offering, which extends a firm’s confidentiality and ethical-wall policies to third-party AI applications. He said more than 70 Am Law 100 firms use Intapp Walls. During the quarter, Intapp’s Harvey integration became generally available, while the company announced a partnership with Legora that incorporates Walls for AI and Intapp Time.
The company also cited integrations and ecosystem relationships involving OpenAI, Anthropic and Microsoft. Hall said OpenAI selected Intapp to bring firm business processes into ChatGPT through Astra for Law, while DealCloud with Celeste is included in the ChatGPT for Financial Services ecosystem. Celeste connectors are also available in Anthropic’s Claude, according to the company.
Partner-involved co-sell activity grew 34% year over year in the quarter, while co-sell activity with Microsoft rose 26%, Hall said. Morton added that joint partner engagement occurred on seven of Intapp’s 10 largest deals.
Outlook
For the fiscal second quarter, Intapp forecast subscription revenue of $129.1 million to $130.1 million and total revenue of $158.8 million to $159.8 million. It expects non-GAAP operating income of $31.8 million to $32.8 million and non-GAAP EPS of $0.37 to $0.39, based on approximately 79 million diluted shares.
For fiscal 2027, the company projected subscription revenue of $530.5 million to $534.5 million and total revenue of $658.2 million to $662.2 million. Intapp expects full-year non-GAAP operating income of $136.8 million to $140.8 million and non-GAAP EPS of $1.64 to $1.68, based on approximately 80 million diluted shares.
Addressing the expected sequential decline in second-quarter total revenue, Morton said the outlook primarily reflects the continued transition of customers from on-premises deployments to cloud subscriptions. He said the company’s subscription and services fundamentals remain intact and that cloud migrations are being accelerated by customers seeking access to Intapp’s agentic AI capabilities.
About Intapp (NASDAQ:INTA)
Intapp, Inc develops cloud-based software for professional and financial services firms. Its platform is designed to help organizations manage client and relationship data, business development, risk and compliance processes, collaboration, time tracking, billing, and operational workflows.
The company’s product portfolio includes solutions for relationship management and deal management, professional-services time and billing, conflicts and compliance, document and information management, secure collaboration, and workflow automation.
