Intapp Q1 Subscription Revenue Rises 29% as Margin Reaches 22%

Intapp (INTA) reported continued recurring-revenue growth in its fiscal first quarter of 2027, with total annual recurring revenue reaching $607.1 million and subscription revenue rising 29% year over year. Profitability also strengthened, as the professional-services software provider nearly eliminated its GAAP operating loss and generated a 22.0% non-GAAP operating margin.

Total revenue was $161.3 million, up about 16% from $139.0 million in the prior-year quarter. Subscription revenue increased to $125.5 million from $97.5 million, underscoring the growing contribution from Intapp’s cloud-based offerings.

Total ARR advanced 20% from $504.1 million a year earlier. The presentation’s detailed ARR chart showed cloud ARR of $590.5 million, up 22% from $485.4 million and representing 85% of total ARR, compared with an 80% mix a year earlier. Separately, the presentation’s financial highlights cited 28% year-over-year cloud ARR growth.

Cloud net revenue retention was 123%, indicating expansion among the existing cloud customer base. The number of clients generating more than $100,000 in ARR increased 12% to 908, while the count of clients above $50,000 in ARR rose 8% to more than 1,400.

Remaining performance obligations, which represent contracted revenue not yet recognized, increased 12% to $799.4 million from $715.2 million.

Margins and cash flow improve

GAAP gross profit rose to $125.6 million from $103.8 million, while GAAP gross margin expanded to 77.9% from 74.7%. On a non-GAAP basis, gross profit reached $129.7 million and gross margin increased to 80.4% from 77.7%.

The GAAP operating loss narrowed to $1.1 million, or 0.7% of revenue, from $14.5 million, or 10.4% of revenue, in the prior-year period. Non-GAAP operating income climbed to $35.4 million from $20.9 million, lifting the corresponding margin to 22.0% from 15.0%.

The non-GAAP result excluded $33.1 million of stock-based compensation, $1.9 million of intangible-asset amortization and smaller acquisition-related and restructuring costs.

Operating cash flow more than doubled to $28.4 million from $13.8 million. Free cash flow increased to $28.1 million from $13.2 million, representing a 17.4% margin. Intapp also repurchased 600,000 shares of common stock during the quarter.

Celeste anchors AI strategy

Management positioned Celeste, Intapp’s model-agnostic agentic AI platform, as a central element of its growth strategy. The platform is designed to automate business workflows at professional firms while incorporating firm data, business context and compliance controls.

Intapp said it has rearchitected its applications around Celeste, including capabilities spanning DealCloud, client intake, conflicts, contract terms, employee compliance, timekeeping and billing. The company is also developing a broader ecosystem of data, technology and services partners around the platform.

The presentation indicated that Celeste remains in limited availability. Intapp expects its AI initiatives to reinforce the value of its existing portfolio, expand its addressable market and support consumption-based pricing. Its estimate of a more than $30 billion agentic AI opportunity is based on internal experience, market interviews and third-party forecasts.

Fiscal 2027 outlook

For the second quarter of fiscal 2027, Intapp expects total revenue of $158.8 million to $159.8 million, including subscription revenue of $129.1 million to $130.1 million. Non-GAAP operating income is projected at $31.8 million to $32.8 million, with non-GAAP diluted net income of $0.37 to $0.39 per share.

For the full fiscal year, management expects revenue of $658.2 million to $662.2 million and subscription revenue of $530.5 million to $534.5 million. The company forecasts non-GAAP operating income of $136.8 million to $140.8 million and non-GAAP diluted earnings of $1.64 to $1.68 per share.

Intapp did not provide a complete reconciliation of those non-GAAP forecasts to GAAP results because some acquisition-related, restructuring, impairment, foreign-exchange and tax items cannot be reasonably predicted. The company cautioned that the unavailable adjustments could significantly affect GAAP operating results.

Other risks identified in the presentation include competition in AI products, compliance with evolving AI regulations, cybersecurity and unauthorized access to client data, variable sales and implementation cycles, macroeconomic volatility, client and employee retention, international operating complexity and the integration of acquired businesses.