Intapp, Inc. Common Stock 2026 Q4 Earnings Call

Welcome to Intapp's fiscal fourth quarter and year-end 2026 financial results. On the call with me today are John Hall, Chairman and CEO of Intapp, and David Morton, Chief Financial Officer. During the course of this conference call, we may make forward-looking statements regarding trends, strategies, and the anticipated performance of our business, including guidance provided for our fiscal first quarter and full year 2027. These forward-looking statements are based on management's current views and expectations, entail certain assumptions made as of today's date, and are subject to various risks and uncertainties, including those described in our SEC filings and other publicly available documents that are difficult to predict and could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Intapp disclaims any obligation to update or revise any forward-looking statements except as required by law.

Further, on today's call, we will also discuss non-GAAP metrics that we believe aid in the understanding of our financial results, including non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP diluted net income per share, free cash flow, and free cash flow margin. Our GAAP financial results, along with reconciliations of GAAP to non-GAAP financial measures, can be found in today's earnings release and its supplemental financial tables, which is available on our website and as an exhibit to the Form 8-K furnished with the SEC prior to this call, or a supplemental financial presentation, which is available on our website. With that, I'll hand the conversation over to John.

Thanks, David. Good afternoon, everyone. Thank you for joining us. Q4 was another strong quarter, closing out a defining year for Intapp. This was the year that we took Firm AI from thesis to category. We launched Celeste, and we saw real proof that firms are ready to transform their business on it. Today, I'll share our fourth quarter and full year results, walk through what's happened with Firm AI and Celeste since Amplify, talk about our growing ecosystem, and close with the wins that show our strategy working in the market. Heading into fiscal 2027, our position is strong and getting stronger. Celeste is now generally available across the highly regulated industries we serve. I'll touch on specific wins in legal, accounting, private capital, and investment banking later in the call.

Our advantage is 25 years of firm-specific data, workflows, and compliance infrastructure that a new entrant can't shortcut their way into. Our lead compounds every quarter as more firms move onto the Intapp platform. That's the foundation for the $50 billion market ahead. Before we get to the numbers, let me start with the strategic focus that's driving it, Firm AI and Celeste. This past February at Amplify, we announced Firm AI, a category distinct from desk-level AI tools, built for the business of the firm itself. Generic AI makes individuals faster. Firm AI makes the firm bigger. A generic assistant can help someone draft an email or summarize a document. It can't screen an inbound deal against a firm's actual investment mandate, and it can't clear a conflict, because both depend on the firm's own history and methods, not something available on the open internet. Take conflicts clearance. Doing it properly means checking a new matter against every related entity, every past client, every wall already in place.

A generic assistant cannot be given that access due to compliance restrictions. That's exactly where Firm AI is built to work. We've spent this past year watching firms put that distinction to the test. They've run pilots with the same generic tools everyone has access to, and what they're telling us is consistent. Speed at the desk doesn't show up in the firm's numbers. Follow the economics and you can see why. Practice AI commoditizes the work. Lower delivery costs let a firm offer a lower price, and it competes for market share on that price. Everyone can do the same thing. The prices come down and gross margins come down with them.

In a highly competitive industry, like the ones we serve, what actually drives any firm's growth, market share, and operating margin is everything that happens after gross margin in the firm's go-to-market and in its OpEx efficiency. The business of the firm, not the practice of it. That's the gap Firm AI closes, and it's why we spent this year turning this thesis into a product. Delivering Firm AI takes four layers working as one system. Coworker agents run on firm playbooks, so an agent already knows how the firm screens a deal, clears a conflict, or decides to walk away. Those agents reason from the firm's own data and institutional judgment, the real history behind every client and every engagement. Walls for AI enforces compliance automatically, the same way every time. It all compounds. Every decision the firm's people make trains Firm AI to get sharper the next time.

A competitor might try to build any one of these layers. What they are not in a position to do is make all four work together as a single Firm AI system. That's the moat. Firm AI runs on Intapp's integrated products and the data and semantic layer underneath them. All of it is now powered by Celeste. We help the firm through its own knowledge, relationships, and methods, strengthen its own competitive advantage and compliance. You don't have to take our word for it. Thilo Zirn from Hg put it this way: "The intelligence is ours, not something generic applied to Hg." Celeste screens against our actual mandate, drawing on knowledge that we've built across the firm over two decades. At Pemberton Asset Management, Vasileios Filippidis describes the same effect in business terms.

Every minute that Celeste is saving us is being returned into value to our LPs and our clients. Two different firms saying the same thing in their own way. Celeste reinforces what the firm already knows at the scale the firm actually needs. Celeste was in limited availability throughout Q4, and we reached general availability on July 15th, after the quarter closed. Even in limited availability, it was winning competitive evaluations and firms were already choosing it and finding value fast. Celeste is already integrated with your firm's Intapp data. Available 24/7, more efficient, lets you accomplish more than people can in less time, and enforces your compliance requirements. Let me highlight a few examples. BakerHostetler, an Am Law 100 firm, is adopting Celeste to streamline intake and lateral integration. In their CIO's words, "There is really no true beginning or end to a workday in a law firm.

Knowing that Celeste is there all the time is key." A leading international law firm chose Celeste to modernize the technology and processes behind its compliance work and keep pace with new EU anti-money laundering regulations. World leading M&A business, Alvarez & Marsal, is moving to DealCloud with Celeste through a multi-phased rollout, leveraging Firm AI for competitive advantage in data capture and transaction group collaboration. The pipeline is strong, the use cases are expanding, and the best is still ahead. I'll turn now to our Q4 numbers. I'm pleased to say it was another strong quarter. Now we've had 20 consecutive quarters of cloud ARR growth above 25% year-over-year since our 2021 IPO. Q4 cloud ARR grew 29% year-over-year and now represents 84% of total ARR. We ended the quarter with more than 1,400 clients above $50,000 in ARR.

Cloud net revenue retention held steady at approximately 123%. I'm proud of the Intapp team for delivering for our clients and partners and applying the expertise we've built since 2000 to serve highly regulated firms. I'll turn now to our partner ecosystem, which just keeps growing stronger and is often a decisive factor in how we win. Co-sell partners influenced roughly a third of our new logo wins for the year, contributing to approximately 35% year-over-year growth in co-sell bookings. Microsoft is the clearest example. They were a co-sell partner on eight of our top 10 deals in the fiscal year. Buyers increasingly want to transact through the Azure Marketplace because it counts toward their MAC and simplifies procurement. That commercial alignment is accelerating deal cycles. On the delivery side, partner-led projects nearly doubled year-over-year. Partner certifications grew 29% over the same period, a sign that services partners see Intapp as a platform worth investing in.

Just after quarter end, we expanded our partnership with Moody's, bringing its credit risk, entity screening, and ownership data directly into Celeste. For deal and risk teams across legal, private capital and accounting, this means counterparty intelligence surfaces in the flow of their work, not outside it as a separate research step. It's a good example of how the right data partnerships extend what Celeste can do for a firm without requiring the firm to do anything differently. Let's take a closer look at the industries we serve. First, legal had a strong quarter and fiscal year. We ended the fiscal year with 97 of the Am Law 100. The consolidation trend continues to drive growth with our legal clients.

Top firms are capturing further market share via mergers and partner laterals. The largest firms are increasingly turning to Intapp for compliance as scaling and AML pressure push them to modernize intake and conflicts. I'll share a few legal highlights from the quarter. A global law firm chose intake and conflicts to establish a more integrated, scalable approach to conflicts clearance as its conflicts team grows. Eversheds Sutherland, another global law firm, deepened its investment in time by adding Celeste functionality to accelerate its daily billable time capture and enhance time recording firm wide. Two Am Law 100 firms moved from on-prem to cloud in Q4. They're part of a broader wave of more than 30 cloud migrations we signed in Q4, our highest quarterly migration number ever. It's clear that firms want to run on Celeste and need the foundation to support it. That's driving urgency. Next, let's turn to accounting and consulting.

As private equity and consolidation reshape the accounting landscape, firms across the industry are feeling the pressure to transform regardless of their investment status. Compliance is their starting point. Their ambitions run further to how they collaborate, win business, and compete. Here are a few of the firms who turned to us this quarter for modernization. Wipfli, a PE-backed top 25 accounting firm, chose employee compliance to modernize its independence processes and establish a scalable foundation as it experiences rapid growth and an expanding attest practice. One of the world's largest professional services firms chose DealCloud to modernize its corporate development and M&A processes from target tracking through post-merger integration. Rimkus, a forensic engineering and technical consulting firm, selected Conflicts, Intake, and Time to automate and accelerate their conflicts clearance process and consolidate time capture across their global team.