Intapp outlines FY 2027 non-GAAP EPS of $1.64-$1.68 as Celeste ramps and deployments add capacity

• "Q1 was a defining quarter for Intapp." (Chairman & CEO John Hall) "This was the quarter we made Intapp Celeste generally available." (Chairman & CEO Hall) "Since GA, our Celeste pipeline has grown 2 to 3x and has never been larger, with more firms moving from trials into deployment." (Chairman & CEO Hall)
• "On August 19, we made Celeste the core of 2 of our largest product families." (Chairman & CEO Hall) "Compliance with Celeste brings agentic workflows into Intapp intake, conflicts, and terms." (Chairman & CEO Hall) "And time with Celeste does the same for Intapp time." (Chairman & CEO Hall)
• "Our Harvey integration became generally available this past quarter and is already seeing adoption." (Chairman & CEO Hall) "At Iltacon in August, we announced a strategic partnership with Legora that brings walls for AI and Intapp Time into Legora." (Chairman & CEO Hall)
• "In Q1, partner-involved co-sell grew 34% year-over-year, and co-sell with Microsoft grew 26%." (Chairman & CEO Hall)
• "We delivered a strong start to fiscal 2027 with subscription revenue up 29%, a non-GAAP operating margin of 22%, and free cash flow more than doubling year-over-year." (Chief Financial Officer David Morton) "Firm AI now sees Celeste as the re-architected core platform across our growth, compliance, and profitability offerings, representing more than 40% of net new bookings in FQ1, up from over 20% last quarter." (CFO Morton)

Outlook

• "For the second quarter of fiscal 2027, we expect subscription revenue between $129.1 million and $130.1 million." (CFO Morton) "Total revenue between $158.8 million and $159.8 million, non-GAAP operating income between $31.8 million and $32.8 million, and non-GAAP EPS between $0.37 and $0.39 based on approximately 79 million diluted shares." (CFO Morton)
• "For the full fiscal year 2027, we expect subscription revenue between $530.5 million and $534.5 million, total revenue between $658.2 million and $662.2 million, non-GAAP operating income between $136.8 million and $140.8 million, and non-GAAP EPS between $1.64 and $1.68, based on approximately 80 million diluted shares." (CFO Morton)
• "As we continue to go through that transition, that's where you're starting to see an acceleration there, and it's really hitting us in FQ2." (CFO Morton) "But as far as the basic fundamentals on subscription as well as total services, those are all very much intact." (CFO Morton)

Financial Results

• "Subscription revenue was $125.5 million, up 29% year-over-year." (CFO Morton) "Total revenue was $161.3 million, up 16% year-over-year." (CFO Morton) "License revenue was $23 million, down 21% year-over-year." (CFO Morton)
• "Our non-GAAP gross margin was 80.4%, up from 77.7% a year ago." (CFO Morton) "Non-GAAP operating income was $35.4 million, up from $20.9 million last year." (CFO Morton) "Non-GAAP diluted EPS was $0.44 compared to $0.24 a year ago." (CFO Morton)
• "Free cash flow was $28.1 million, more than double the prior year." (CFO Morton) "In the trailing 12 months, free cash flow was approximately $160 million, and we ended Q1 with $147.7 million in cash and cash equivalents." (CFO Morton)
• "Share repurchase activity continued this quarter with approximately 600,000 shares bought back for $25 million." (CFO Morton) "At the end of FQ1, $50 million remained under our current repurchase authorization." (CFO Morton)
• "Cloud ARR grew 28% year-over-year to $515.3 million, and total ARR increased 20% to $607.1 million." (CFO Morton) "Our cloud net revenue retention rate was 123% in the first quarter." (CFO Morton)

Q&A

• Isabella Camaj, JPMorgan Chase & Co: "the 2Q total revenue guide implies a sequential decline"; CFO Morton: "as we continue to go through that transition, that's where you're starting to see an acceleration there, and it's really hitting us in FQ2" and "the basic fundamentals on subscription as well as total services, those are all very much intact."
• Kevin McVeigh, UBS: asked about "strategic collaborations with OpenAI, Moody's, and Legora" and "what you're doing with Legora relative to Harvey"; Chairman & CEO Hall: "The ecosystem that is forming around Celeste is fantastic" and "our ecosystem strategy... is to work well with the universe of tools that exist inside the firm."
• Luke Rides, Truist: asked if Compliance/Time with Celeste are "something customers pay extra for"; Chairman & CEO Hall: "firms absolutely pay extra as we bring these solutions out" and "going forward, absolutely, this is the plan."
• Alexander Sklar, Raymond James: asked about "evaluation period" and new-logo pipeline; Chairman & CEO Hall: "we have gone to now 200 enterprise firms that are running Celeste today following this launch and have not yet converted to a full subscription" and "it is absolutely an enterprise decision."
• Jack McShane, Stifel: asked if deployments capacity creates a headwind; CFO Morton: "we continue to be constrained" and "we are adding deployment capacity to catch up to demand."

Sentiment Analysis

• "the 2Q total revenue guide implies a sequential decline" (Isabella Camaj, JPMorgan Chase & Co) and "net new ARR down about 11% year-over-year" (Saket Kalia, Barclays) reflected a slightly negative, detail-seeking analyst tone centered on transition effects and underlying demand.
• "Q1 was a defining quarter" (Chairman & CEO Hall) and "gives us confidence in FY '27" (CFO Morton) reflected a positive management tone in prepared remarks; in Q&A, management stayed explanatory on near-term revenue mix, saying "that's exactly it" (CFO Morton) on the license transition impact.
• Compared with the prior quarter’s framing that "Celeste was in limited availability throughout Q4" (Chairman & CEO Hall), the current call’s tone emphasized execution after GA, including "demand is running ahead of our ability to engage" (CFO Morton).

Quarter-over-Quarter Comparison

• Celeste positioning shifted from "limited availability throughout Q4" and "we reached general availability on July 15 after the quarter closed" (Chairman & CEO Hall, prior quarter) to "On July 15, Celeste became generally available" (Chairman & CEO Hall, current quarter) and follow-on launches: "On August 19, we made Celeste the core of 2 of our largest product families." (Chairman & CEO Hall)
• AI contribution language moved from "AI now representing over 20% of net new bookings in FQ4" (CFO Morton, prior quarter) to "more than 40% of net new bookings in FQ1" (CFO Morton, current quarter).
• Guidance ranges increased versus the prior call: prior FY27 total revenue "$656.5 million" to "$660.5 million" (CFO Morton, prior quarter) vs. current "$658.2 million" to "$662.2 million" (CFO Morton, current quarter).

Risks and Concerns

• "Demand is running ahead of our ability to engage, run proofs of concept, and deploy." (CFO Morton) "We are adding deployment capacity to catch up to demand." (CFO Morton)
• "License revenue was $23 million, down 21% year-over-year" (CFO Morton) alongside "many [on-prem] to 1 year or less" (CFO Morton) reflected continued on-prem shortening and mix pressure on total revenue, with management attributing it to clients moving "to the cloud for an agentic-first future." (CFO Morton)

Final Takeaway

Management described Q1 as the first quarter with Celeste in general availability, citing a materially larger Celeste pipeline and a higher share of net new bookings tied to Celeste-powered offerings. The company guided to FY 2027 subscription revenue of $530.5 million to $534.5 million and total revenue of $658.2 million to $662.2 million, while also highlighting deployment capacity constraints and continued on-prem-to-cloud transition effects on near-term revenue mix.

Read the full Earnings Call Transcript

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