Oct 27, 2026 earnings call — Celeste launch and cloud migration
Celeste became generally available and subscription revenue was $125.5 million, up 29% year-over-year.
Revenue $0.2B (est $0.2B) · EPS $0.44 (est $0.40) · Next-quarter revenue outlook $0.2B–$0.2B
Key quotes
"Since GA, our Celeste pipeline has grown 2 to 3x and has never been larger, with more firms moving from trials into deployment."
"Cloud ARR grew 28% year-over-year and now accounts for 85% of our total ARR."
"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."
Analyst Q&A 6
Q2 revenue and cloud migrations
Q (Isabella Camaj · JPMorgan): Why does 2Q total revenue guide fall despite subscription growth? And will Celeste keep migration growth as migration opportunity shrinks — migration vs expansion vs new logos?
A: Management said the guide is to total subscription and the on-prem to cloud license transition is accelerating, which hits FQ2. They said subscription and services fundamentals remain intact. They also said Celeste and agentic offerings are driving migrations, demand exceeds supply, and they see net new logos and expansions behind their confident growth guidance.
"No, that's exactly it, right, because we specifically guide to total subscription." — David Morton (CFO)
Alliances and on-prem to cloud impact
Q (Kevin McVeigh · UBS): What are the new partnerships (Legora, Harvey, OpenAI, Moody's) doing and how do they compare to Microsoft/KPMG? Also, is on-prem to cloud conversion now revenue-accretive versus neutral?
A: Management said Celeste sits in a growing ecosystem that includes horizontal AI and practice AI players, and Intapp aims to interoperate and govern those tools for firms. They said the on-prem to cloud acceleration lets clients use more agentic offerings, and they are seeing an uptick of "20% or 30%" when customers move from on-prem to cloud after deployment.
"Our ecosystem strategy, consistent with our whole history, is to work well with the universe of tools that exist inside the firm." — John Hall (CEO·CHAIR)
Celeste pricing and large-customer growth
Q (Truist): Are the new Celeste products extra-paid or upgrades for current subscribers? And why did customers above $100,000 ARR grow only 11% sequentially — seasonality or slower/ smaller deals?
A: John said Celeste Agentic products were announced GA in mid-August, engagement is strong, and firms "absolutely pay extra" because the value is much better and Intapp is positioned to maintain compliance. David said there's nothing abnormal with the >$100,000 cohort: cohorts are strong, NRR is solid, churn is de minimis, and the dynamics reflect normal rounding and enterprise customer behavior.
"So firms absolutely pay extra as we bring these solutions out because the value proposition is significantly better than what we were doing in the prior era, and we're perfectly positioned" — John Hall (CEO·CHAIR)
Celeste pipeline, sales cycles, context advantage
Q (Alexander Sklar · Raymond James): What are prospects saying about evaluation periods and new-logo wins in the 2.5x Celeste pipeline? And how strong is Intapp's context advantage feeding Celeste?
A: Management said Celeste launched broadly this quarter, the firm AI paper drove senior-level interest, and sales cycles are enterprise-level decisions. They reported about 200 enterprise firms are running Celeste today after launch but have not yet converted to full subscriptions. They also said Intapp's unique firm-level data and governance give a contextual and compliance advantage to drive agentic transformation.
"I can tell you, even in that amount of time, 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." — John Hall (CEO·CHAIR)
Supply constraints and ROI for Celeste
Q (Stiffel): Is demand running ahead of your ability to staff deployments and will this cause a headwind? How quickly do firms capture operating-margin gains or other early ROI from Celeste?
A: David said demand and pipeline growth have outpaced resources and they remain constrained, though execution is coming online through the back half of the year. John said firms see a large labor-cost opportunity in business services and that Celeste's architecture uses deterministic methods where appropriate and probabilistic models where needed, making it token-efficient; that efficiency and compliance-focused design support a strong economic case.
"And so as we continue to garner more and more pipe, more and more opportunities, obviously, we're swiftly working through this, but we continue to be constrained in that matter." — David Morton (CFO)
Net new ARR and monetization mix
Q (Saket Kalia · Barclays): Why was net new ARR down and what drove the quarter? And of the three monetization paths for firm AI (new entitlements, new Celeste-first customers, governance with third-party tools), which is biggest so far?
A: David said the dynamics relate to on-prem to cloud transitions and shortening deal durations, with on-prem to cloud playing a part; he pointed to the December quarter as a big renewal season and said they are focused on AI identification across the portfolio and deploying firm-deployed engineers to POCs. John said the quoted pipeline includes all three monetization paths — existing-client entitlements, new Celeste-first buyers, and governance for multiple third-party tools — and all are contributing to the pipeline.
"I think the pipeline that I quoted includes all 3 of those." — John Hall (CEO·CHAIR)