IntappINTA

Intapp reported earnings of $0.41 per share, which was higher than the $0.36 analysts expected. Total revenue for the quarter reached about 150 million dollars, driven by a 27 percent jump in subscription sales for its cloud software.

The business is showing strong loyalty from its existing customers. Its net revenue retention rate hit 123 percent, meaning current clients are spending 23 percent more with Intapp than they did a year ago. This is a key sign that its specialized tools for law firms and banks are becoming more deeply embedded in how those firms operate. Looking ahead, the company is focusing on Celeste, its new artificial intelligence platform. Management expects this tool to help automate complex tasks for professional advisors, which could further increase the amount of money it earns from each customer.

See the full quarter, and how our tracked metrics did

Source: 8-K filing

Key highlights

• Cloud revenue and ARR up: Cloud annual recurring revenue, a measure of the yearly value of active cloud-based subscriptions, grew 29% to $495.7 million. Cloud services now make up 84% of the total recurring business, which is a jump from 79% just one year ago.
• High value customer growth: The company grew its count of large clients spending over $1 million annually to 142, up from 109 clients in the prior year. This expansion among the biggest spenders helped maintain a net revenue retention rate of 123%, meaning existing customers spent 23% more than they did last year.
• Cash and share buybacks: Intapp spent $275.2 million to buy back 8.4 million shares of its own stock during the fiscal year. This reduced its cash balance to $162.8 million, down from $313.1 million a year ago, as the company moved to return value to its shareholders.
• Profit margins improving: Operating income on a non-GAAP basis, which excludes certain items like stock-based pay, rose to $34.3 million compared to $21.3 million a year ago. This increase drove the non-GAAP operating margin to 22.5%, showing that the company is becoming more efficient as it scales its software.
• Fiscal year 2027 outlook: Management expects total revenue for the upcoming fiscal year to be between $656.5 million and $660.5 million. At the midpoint, this would represent a 14% increase over the $577.8 million in total revenue reported for the year just ended.

Our take: A strong quarter that shows Intapp is successfully moving its existing customers into the cloud while landing much larger deals. The jump to 142 million-dollar clients and the high retention rate reinforce the long-term case that its software is becoming essential for specialized professional firms.