Robust Cloud ARR Growth
Cloud ARR was $433.6M (reported as $434M), up 31% year over year; cloud now represents ~81% of total ARR (total ARR ~$535M), reflecting strong progress in the company's cloud transition and enterprise traction.
SaaS and Total Revenue Expansion
SaaS revenue was $102.5M, up 28% year over year and now ~73% of total revenue; total revenue was $140.2M, up 16% year over year, demonstrating continued recurring revenue growth.
Improving Margins and Profitability
Non-GAAP gross margin improved to 78.1% from 76.7% a year ago (+1.4 percentage points). Non-GAAP operating income increased to $27.7M from $18.9M (≈+46.6% year over year). Non-GAAP diluted EPS was $0.33 for the quarter.
Strong Cash Generation and Capital Allocation
Free cash flow was $22.2M in the quarter and cash & equivalents ended at $191.2M (post $100M Q2 repurchase). The company repurchased ~3.4M shares to-date and the board authorized an additional $200M buyback, signaling confidence in capital return.
High ARR Visibility and Retention
Remaining performance obligations were $777.1M, up 26% year over year, providing revenue visibility. Total ARR grew ~22% YoY. Cloud net revenue retention was strong at 124%. Clients generating $100k+ ARR increased from 728 to 834 (≈15% YoY), now representing ~30% of the client base.
Expanding Partner Ecosystem and Microsoft Traction
Ecosystem includes 145+ curated data/technology partners; partners directly participated in 7 of the 10 largest deals this quarter. Service partner certifications rose 35% YoY. More than half of the largest wins were jointly executed with Microsoft, with Azure marketplace and Microsoft investment dollars accelerating deals.
Product Momentum and AI Enhancements Driving Wins
Significant product advancements: a major new Intapp Time release (catalyzing cloud migrations) and >70 new AI capabilities in DealCloud. These AI and compliance capabilities contributed to notable client wins across legal, accounting, financial services, and real assets (examples include AmLaw clients, Roche, Gray, Reed Smith, Neuberger Berman, and several large accounting and investment firms).
Forward-Looking Guidance and Investment
Management provided Q3 guidance (SaaS $105–106M; total revenue $143.8–144.8M; non-GAAP operating income $23.1–24.1M) and full-year guidance (SaaS $415–419M; total revenue $570.3–574.3M; non-GAAP operating income $99.9–103.9M; non-GAAP EPS $1.20–1.24), while signaling targeted incremental investments in marketing and AI delivery to accelerate product rollout.