Intapp, Inc. (INTA) Q3 2026 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call presents strong financial performance with record free cash flow, increased operating income, and positive EPS. Celeste's launch is well-received, contributing significantly to ARR, and partnerships with major firms enhance credibility. Despite some vagueness in management's responses, the overall sentiment is positive, with growth in client base and strong forward visibility. The market cap suggests moderate reaction, aligning with a positive outlook.
Key Financial Performance
Cloud ARR $459 million, up 31% year-over-year. Growth supported by new clients, expansion of client accounts, and cloud migrations.
Total ARR $560 million, with cloud representing 82% of total ARR.
SaaS Revenue $107.9 million, up 27% year-over-year. Driven by new client wins and expansion within the installed base.
Total Revenue $146 million, up 13% year-over-year. Growth attributed to SaaS revenue increase and professional services revenue growth.
License Revenue $24.8 million, down 22% year-over-year. Decline due to clients preparing for migration to the cloud.
Professional Services Revenue $13.4 million, up 7% year-over-year. Growth supported by increased partner-led implementations.
Non-GAAP Gross Margin 78.8%, up from 77.9% a year ago. Improvement driven by cloud mix and efficiency gains.
Non-GAAP Operating Income $25.7 million, up from $20.3 million last year. Reflects operating leverage and investment in growth.
Non-GAAP Diluted EPS $0.29. Reflects profitability improvements.
Free Cash Flow $63.4 million, a record quarter. Indicates strong cash generation.
Remaining Performance Obligations $791.4 million, up 27% year-over-year. Provides strong forward visibility.
Clients Generating $100,000+ ARR 858 clients, representing more than 100 net adds year-over-year.
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Operating Highlights
Celeste AI Platform: Introduced as an AI-native agentic platform designed for professional firms. It integrates with workflows like business origination, deal and asset management, and compliance. Celeste enables consumption-based pricing and expands Intapp's addressable market.
Intapp Properties: Adopted by clients like a leading residential builder and Essential Properties to consolidate workflows and meet modern technology demands.
Intapp Collaboration: Chosen by firms like Summer Group and European accounting firms to streamline operations and improve collaboration.
Cloud ARR Growth: Cloud ARR grew 31% year-over-year to $459.3 million, representing 82% of total ARR.
Client Expansion: Added over 100 clients generating at least $100,000 in ARR, reaching a total of 858 clients in this category.
Geographic Expansion: European offices of major accounting firms adopted Intapp solutions, showcasing geographic growth.
Revenue Growth: Total revenue increased 13% year-over-year to $146 million, with SaaS revenue up 27% year-over-year.
Free Cash Flow: Achieved a record free cash flow of $63.4 million in Q3.
Gross Margin Improvement: Non-GAAP gross margin improved to 78.8%, up from 77.9% a year ago.
AI Integration: Strategic alliances with Microsoft, Harvey, and Anthropic to enhance AI capabilities and compliance for professional firms.
Partner Ecosystem: Expanded co-sell motion with Microsoft and built a targeted ecosystem around Celeste to scale capabilities and reach.
Share Repurchase Program: Repurchased $100 million worth of shares in Q3, reflecting confidence in long-term business value.
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Risk or Challenges
Regulatory Compliance: Professional compliance is a critical issue for the firm's clients, particularly in highly regulated industries. Failure to meet compliance standards could jeopardize client trust and operational integrity.
AI Integration Challenges: The adoption of AI tools like Celeste requires significant transformation for professional firms. There is a risk that clients may face difficulties in integrating these tools into their workflows, potentially impacting adoption rates and revenue growth.
Competitive Pressures: The firm faces competition from generic AI solutions and other technology providers. Clients may opt for alternative solutions if Intapp's offerings fail to meet their specific needs.
Economic Sensitivities: Economic uncertainties could impact demand for professional services, which are a key driver of Intapp's business.
Cloud Migration Risks: The transition of clients to cloud-based solutions involves risks, including potential disruptions to client operations and resistance to change.
Partner Ecosystem Dependencies: The firm's reliance on partnerships, such as with Microsoft, introduces risks related to alignment and execution within the partner ecosystem.
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Guidance & Outlook
SaaS Revenue Guidance for Q4 FY2026: Expected to be between $113.1 million and $114.1 million.
Total Revenue Guidance for Q4 FY2026: Expected to be between $149.1 million and $150.1 million.
Non-GAAP Operating Income Guidance for Q4 FY2026: Expected to be between $28.4 million and $29.4 million.
Non-GAAP EPS Guidance for Q4 FY2026: Expected to be between $0.36 and $0.38 based on approximately 79 million diluted shares.
SaaS Revenue Guidance for Full FY2026: Expected to be between $421 million and $422 million.
Total Revenue Guidance for Full FY2026: Expected to be between $574.3 million and $575.3 million.
Non-GAAP Operating Income Guidance for Full FY2026: Expected to be between $102.7 million and $103.7 million.
Non-GAAP EPS Guidance for Full FY2026: Expected to be between $1.22 and $1.24 based on approximately 82 million diluted shares.
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Shareholder Return Plan
Share Repurchase Program: During Q3, the company repurchased $100 million or approximately 3.9 million shares, bringing fiscal year-to-date repurchases to over 7 million shares. This reflects the company's confidence in the long-term value of the business and its continued focus on managing dilution.
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Key Q&A
Q:Can you provide initial feedback on Celeste and its impact on the average client size?
A:The feedback on Celeste has been tremendous, with strong interest and excitement from clients. It was released in limited availability, and clients like Ropes & Gray have already adopted it. Celeste addresses challenges with first-generation tools and offers a model-agnostic design that supports multiple solution types and models.
Q:Have clients shifted preferences in terms of specific LLMs?
A:Clients show a wide range of preferences, including OpenAI, ChatGPT, Claude, Anthropic models, Microsoft Copilot, xAI, and Google. Celeste is designed to be model-agnostic, allowing clients to use the best-fit model for their needs.
Q:Why was the full-year adjusted EBIT guidance raise smaller than the Q3 beat?
A:The smaller raise is due to expense timing, with some Q3 spending pushed into Q4, and continued investments in go-to-market efforts and product innovation. Additionally, the annual guide midpoint is now centered on the last quarter, which involves rounding differences.
Q:Can you quantify the mix of drivers for the impressive cloud NRR performance?
A:The cloud NRR performance of 123%-124% is driven by cross-sell and up-sell efforts, particularly in the $50,000+ ARR cohort. These trends are consistent with disclosures made at Investor Day.
Q:What are the key milestones and KPIs for integrating Celeste in the coming quarters and years?
A:Key milestones include rolling out Celeste through limited and general availability, integrating it into existing products like DealCloud and Compliance, and expanding into new value propositions and TAM. Firms are also creating budgets for AI solutions, and Celeste aims to offset future hiring needs with agents.
Q:Can you elaborate on the compliance officer hiring trend and its relevance to Celeste?
A:Compliance officers are increasingly involved in AI strategies due to risks of ungoverned information repositories. Celeste addresses these risks with its AI-native, compliance-focused design, making it a trusted solution for managing professional compliance and information governance.
Q:What are the initial use cases and workflows for Celeste?
A:Initial use cases include client intake, business acceptance, compliance, business origination, lateral hiring, and mergers in accounting and consulting. Celeste also supports business utilization and pricing/profitability management, focusing on areas where Intapp has a strong position.
Q:How are clients reacting to token costs and how does Celeste address this?
A:Clients are concerned about scaling token costs and information risk. Celeste's architecture efficiently retrieves reliable facts and manages compliance risks, offering a better alternative to DIY models and generic MCP solutions.
Q:What is the contribution of AI to net new ARR?
A:AI contributes significantly, with Celeste accounting for about 15% of new ARR. The contribution is growing rapidly, and Celeste has incorporated Assist technology into its new generation.
Q:How often do you compete with well-funded startups, and how important are partnerships like those with Anthropic and Microsoft?
A:Competition with startups is common, particularly in areas where Intapp has a strong history. Partnerships with Anthropic and Microsoft are crucial, especially in enterprise-class firms, as they enhance Intapp's credibility and competitive edge.
Q:What are clients' hiring plans and how does AI fit into them?
A:Clients are not planning significant staffing changes in the next 12 months but aim to use AI to scale their businesses without additional hiring. Professional services firms are more cautious, while financial services firms see more opportunities for efficiency through AI.
Q:What is the potential uplift from existing customers adding Celeste?
A:The potential uplift is significant, as Celeste unlocks new SAM and TAM opportunities, including a $30 billion non-IT spend market. Early demand and pipeline generation have been very encouraging.
Q:Review of Unclear Management Responses
A:Management avoided directly addressing the exact quantification of AI's overall contribution to net new ARR, as well as specific details on the uplift potential from existing customers adding Celeste. They also used vague language when discussing the timing and scale of future hiring changes due to AI.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
AI capability
AI company
AI enterprise
AI firm
Amplify client
Intapp Collaboration
Intapp Properties
Investor Day
Law firm
Today
Walls
attendee
availability
budget
chapter
client expansion
client signal
competitor
conflict solution
context compliance
core
engagement channel
environment
expert agent
firm AI
firm compliance
increase
market position
minute
momentum
order
stage
thesis
tool firm
trust compliance
way client
INTA Transcript
Intapp, Inc. (INTA) Q3 2026 Earnings Call Transcript
Positive5-6
The earnings call presents strong financial performance with record free cash flow, increased operating income, and positive EPS. Celeste's launch is well-received, contributing significantly to ARR, and partnerships with major firms enhance credibility. Despite some vagueness in management's responses, the overall sentiment is positive, with growth in client base and strong forward visibility. The market cap suggests moderate reaction, aligning with a positive outlook.
Intapp, Inc. (INTA) Presents at Morgan Stanley Technology, Media & Telecom Conference 2026 Transcript
Neutral3-2
Intapp, Inc. (INTA) Q2 2026 Earnings Call Transcript
Positive2-3
The earnings call summary reflects a positive sentiment with strong financial performance and optimistic guidance. The Q&A section reveals strategic partnerships and AI adoption as growth drivers, despite some concerns over guidance clarity. The market cap suggests moderate reaction, leading to a predicted stock price increase of 2% to 8% over the next two weeks.
Intapp, Inc. (INTA) Presents at UBS Global Technology and AI Conference 2025 Transcript
Neutral12-2
INTA Slides
INTA Report
Frequently Asked Questions
Where does this earnings call transcript come from?
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They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
