INTA

Firm AI and Celeste Product Launch

• Intap positions its new Firm AI strategy as distinct from commoditized generic practice AI; generic AI only improves individual desk productivity and compresses margins, while Firm AI unlocks efficiency and growth in the back-office, go-to-market, and operational (non-practice) layers of professional firms.
• Celeste, Intap's agentic Firm AI platform, reached general availability on July 15 after a limited availability period in Q4. Celeste is built on four integrated layers: coworker agents trained on the firm's unique playbooks and data, automatic compliance enforcement via AI walls, and continuous improvement from ongoing user decisions, creating a competitive moat that competitors cannot replicate with single-layer tools.
• AI bookings doubled sequentially in Q4, and now represent over 20% of net new bookings in the quarter. Early adoption was strong across legal, accounting, consulting, and financial services, with multiple large client wins including Baker Hostetler, Alvarez and Marsal, HG, and Evershed Sutherland.

Client and Growth Milestones

• Intap achieved 20 consecutive quarters of cloud ARR growth above 25% year-over-year, with Q4 cloud ARR growing 29% year-over-year. Total ARR grew 22% year-over-year to $590.5 million.
• The number of clients with over $1 million in ARR grew 30% year-over-year to 142, with ARR for this cohort growing 40% year-over-year. Clients with over $100,000 ARR reached 897, marking the fourth consecutive quarter of over 100 net new adds year-over-year. Total clients above $50,000 ARR exceed 1,400.
• Q4 saw a record 30+ cloud migrations signed, bringing 95% of Intap's total client base to the cloud, positioning all clients to adopt Celeste.

Partner Ecosystem Expansion

• Co-sell partners influenced roughly one-third of 2026 new logo wins, driving 35% year-over-year growth in co-sell bookings. Microsoft was a co-sell partner on 8 of Intap's top 10 fiscal year deals, with Azure Marketplace procurement accelerating deal cycles via existing enterprise Microsoft agreements.
• Partner-led projects nearly doubled year-over-year, and partner certifications grew 29% year-over-year, with a certified partner network now over 1,000 strong. Just after quarter end, Intap expanded its partnership with Moody's to integrate Moody's credit risk and entity screening data directly into Celeste.

Vertical Industry Traction

• Legal: 97 of the AMLW 100 top law firms are now Intap clients. Continued industry consolidation via mergers and lateral hiring, plus growing AML compliance pressure, is driving cloud migration and Celeste adoption. Two AMLW 100 firms migrated from on-prem to cloud in Q4.
• Accounting and Consulting: 17 of the top 20 global accounting firms run on Intap, with 20 new logos added in FY26. Compliance modernization is the initial use case, with firms expanding to collaboration and deal process optimization as they scale amid industry consolidation driven by private equity.
• Financial Services: Private capital, investment banking, and real asset firms are moving to consolidate fragmented proprietary deal and relationship data onto Intap's platform, with Celeste enabling compliant access to decades of firm-specific data for front office teams. Real estate and alternative investment firms show continued momentum consolidating onto DealCloud.

Management provided the following FY27 guidance, with an maintained long-term target of reaching $1 billion in total ARR:

• Q1 FY27: Expected subscription revenue of $123.7-$124.7 million, total revenue of $159.3-$160.3 million, non-GAAP operating income of $33.4-$34.4 million, non-GAAP EPS of $0.39-$0.41 on ~79 million diluted shares.
• Full year FY27: Expected subscription revenue of $528.7-$532.7 million, total revenue of $656.5-$660.5 million, non-GAAP operating income of $134.7-$138.7 million, non-GAAP EPS of $1.58-$1.62 on ~81 million diluted shares.
• Management reaffirmed the long-term target of reaching a 25% free cash flow margin, which the company already hit in FY26, entering the targeted range three years ahead of the original FY29 schedule.

Intap reports results across three primary industry vertical segments, with consolidated financial performance as follows:

• Subscription (Cloud + AI): Q4 2026 subscription revenue was $115 million, up 27% year-over-year, representing 75% of total Q4 revenue. Full-year 2026 subscription revenue was $422.8 million, up 27% year-over-year. Cloud ARR grew 29% year-over-year to $495.7 million, accounting for 84% of total ARR. Cloud net revenue retention held at 123% for Q4, and stayed above 120% for all four quarters of FY26.
• License (On-Premise): Q4 2026 license revenue was $23.9 million, down 25% year-over-year. Full-year 2026 license revenue was $103.4 million, down 14% year-over-year. Total on-premise ARR is now below $100 million as of Q4, as clients accelerate migration to the cloud.
• Professional Services: Q4 2026 services revenue was $13.6 million, up 5% year-over-year. Full-year 2026 services revenue was $51.6 million, flat year-over-year, representing 9% of total full-year revenue.

No material new risks or operational failures were explicitly discussed on the call. Management acknowledged ongoing industry discussion of AI token cost volatility, but noted Celeste's architecture is designed to mitigate this risk. The only headwind called out was continued decline in on-premise license revenue as clients accelerate cloud migration, which was fully expected and factored into guidance.

Q: Analysts asks where the operating leverage offsetting declining on-prem license revenue comes from, and what were the key company achievements of FY26. / A: Management explains the leverage comes from the growing mix of high-margin SaaS subscription revenue, which now exceeds 75% of total revenue. Additional leverage comes from improved professional services margins, efficiency gains in G&A, and falling customer acquisition costs driven by product innovation. Key FY26 achievements include launching the Celeste Firm AI platform across the entire Intap product line, securing significant new wins in large enterprise accounts, growing the $1 million+ ARR client base at 30% year-over-year, and making key talent hires to support long-term growth toward $1 billion ARR.

Q: What are the key drivers of remaining on-prem cloud migration, and how does Intap manage AI token costs to protect margins? / A: Most remaining on-prem clients are long-time legal industry clients, and the core driver of accelerated migration is the need to access Celeste Firm AI functionality, which is only available on the cloud. To manage token costs, Celeste is architected to leverage existing firm data to reduce unnecessary external LLM queries, and is model-agnostic, allowing Intap to switch between foundational AI providers to take advantage of cost competition, addressing client CIO concerns about token cost volatility.

Q: Where do clients source budget for Celeste adoption, and how has the competitive landscape changed for firm AI? / A: Client budget comes from three main sources: existing IT budgets that have shifted priority to AI, new dedicated AI budgets firms have created to stay competitive, and operational/labor budgets allocated to back-office and business support functions that Firm AI will make more efficient. The competitive landscape has three segments: horizontal generic AI tools and individual practice AI tools that address individual productivity, and the new firm AI segment that Intap created focused on business operations and growth. Intap holds a unique position in this new segment with little direct competition today.

Q: What are the characteristics of clients already leaning into Celeste adoption, and how has Intap adjusted its go-to-market motion? / A: Early adopters fall into two groups: technically sophisticated enterprise IT teams that have already experimented with multiple generic AI pilots and now understand the need for a compliance-first, enterprise-grade firm AI architecture, and new business-focused AI/innovation leadership roles that control dedicated AI budgets and are looking to unlock efficiency and growth in underaddressed business operations. Intap has densified coverage for the top 2,000 largest enterprise firms (which hold 70% of the total TAM) and added senior go-to-market talent with experience selling large enterprise deals, while expanding sales engagement to include senior business leaders, compliance teams, and IT teams, rather than just individual department buyers.