Intapp, Inc.

Hello, everyone, and welcome to the Intap Second Quarter Fiscal 2026 Earnings Webcast. At this time, all participants are in a listen-only mode. After the speaker's remarks, or after the speaker's presentation, there will be a question and answer session. Please be advised that today's conference is being recorded. Now, it is my pleasure to turn the call over to Senior Vice President of Investor Relations, David Trone. The floor is yours.

Thank you. Welcome to INTAP's fiscal second quarter financial results. On the call with me today are John Hall, Chairman and CEO of INTAP, and David Morton, Chief Financial Officer. During the course of this conference call, we may make forward-looking statements regarding trends, strategies, and the anticipated performance of our business, including guidance provided for our fiscal third quarter and four-year 2026. These forward-looking statements are based on management's current views and expectations entail certain assumptions made as of today's date and are subject to various risks and uncertainties, including those described in our SEC filings and other publicly available documents that are difficult to predict and could cause actual results to differ materially from those expressed or implied by such forward-looking statements. INTAP disclaims any obligation to update or revise any forward-looking statements except as required by law. Further on today's call, we will discuss certain non-GAAP metrics that we believe aid in the understanding of our financial results, including non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP diluted net income per share, and free cash flow. Our GAAP financial results, along with reconciliations of GAAP to non-GAAP financial measures, can be found in today's earnings release and its supplemental financial tables, which is available on our website and as an exhibit to the Form 8K furnished with the SEC prior to this call, or a supplemental financial presentation, which is available on our website. With that, I'll hand the conversation over to John.

Thank you, David. Good afternoon, everyone. Thank you for joining us today as we share the results of our fiscal second quarter. I'm happy to share that once again, we've achieved strong quarterly results supported by the addition of new clients and the expansion of client accounts around the world. Our results also reflect our ability to serve enterprise clients, a growing partner ecosystem, and demand for our AI capabilities in the highly regulated industries we serve. I'll share details on these select growth drivers on this call. In Q2, Our cloud ARR grew to $434 million, up 31% year over year. Cloud now represents 81% of our total ARR of $535 million. In the quarter, we earned SAS revenue of $102 million. up 28% year over year. And total revenue of $140 million up 16% year over year. Now, I'd like to share some highlights from our fiscal second quarter. We continue to execute our vertical AI roadmap which is designed to increase adoption of AI in the highly regulated industries we serve. As a reminder, our industry-specific AI solutions automate rote tasks, but more importantly, they deliver actionable insights that are drawn from a firm's proprietary information and are enriched with our industry graph data model and trusted third-party sources. These advanced, tailored, compliance capabilities are what set Intap apart and why firms continue to invest in our technology. This leads me to my first example. You may recall that last quarter we announced a significant new release of Intap Time, which delivers faster, easier, and more accurate timekeeping powered by major new AI features. It's proven to be a catalyst for cloud migrations with large firms like Buchanan, Ingersoll, and Rooney, and multiple AnLaw 100 clients moving their time instances to the cloud. The new time release is also drawing large firms to buy the solution for the first time, sometimes in addition to their other in-tap solutions. Examples include Seifarth Shaw and Burr Informant. Additionally, we added more than 70 new AI capabilities and enhancements to our deal cloud platform. Among their many benefits, these new advancements save users time, surface personalized actionable data insights, and support infosec by monitoring data access in real time. They come together in DeoCloud to boost productivity, support regulatory compliance, unlock firm intelligence, and create a competitive edge. Now let's turn to our partner network. We continue to grow our expansive partner ecosystem anchored by Microsoft and a strategic set of more than 145 curated data, technology and services partners. This powerful network continues to drive growth for us and greatly influenced many of our recent logo wins. In Q2, partners were directly involved in seven of our ten largest deals. reflecting how deeply embedded our partners are in our go-to-market motions. Microsoft in particular continues to be a major growth driver. More than half of our largest wins this quarter were jointly executed with Microsoft, and then several Microsofts even contributed Azure investment dollars to help us accelerate the deals. Our growth was also powered by adding new clients, expanding within existing clients, and migrating clients to the cloud. And we continued to gain traction in newer markets across our verticals, products, and global locations. In our legal vertical, we once again saw some distinct trends across our wins. First, we had some of the largest law firms in the US turn to Intac for AI-powered, enterprise-grade compliance solutions. These clients include several AMLO 100 firms. For example, Ropes and Gray chose our compliance solutions to modernize their intake and complex checking processes in the cloud. This transaction was completed on the Azure marketplace with Microsoft providing investment dollars to accelerate the deal. An AMLAW 30 firm added our compliance solutions and chose to migrate time to the cloud after attending an event and seeing them in action. And an AMLAW 75 firm chose our compliance products to automate managing access to sensitive matters across applications. Second, law firms continue to choose deal cloud to strengthen their business development operations and innovate with AI. This quarter, Ford and Harrison and an AMLA 100 firm, among others, moved off their legacy horizontal or bespoke systems to support more strategic new business acquisition with deal cloud. And third, evolving anti-money laundering and know-your-client regulations are fueling the modernization of intake and conflicts processes globally. A few examples of firms who have chosen our AML solutions in response this quarter include a Netherlands-based firm, Holding Redlich in Australia, and US-based Reed Smith. In the accounting industry, The influx of PE investments and mergers has continued to create disruption and increase competition across the industry. In response, firms, no matter their investment status, are modernizing their compliance practices and extending that modernization to collaboration and business development as well. Among the firms that turned to Intap for AI-driven modernization this quarter, One of the largest public accounting firms in the U.S. deepened its investment in Intap employee compliance to modernize personal independence processes across its global employee base. BKL and Graviton both replaced their legacy systems with Intap collaboration. They needed a scalable cloud-based solution that integrates seamlessly with their Microsoft tools, streamlines collaboration, and sets them up for growth. And a top UK accounting firm chose DeoCloud to establish a scalable foundation for relationship management and business development as it undergoes rapid growth through M&A. In the financial services vertical, Firms are continuing to replace their legacy horizontal CRMs with DealCloud for AI-powered relationship and business intelligence, especially enterprise and mid-market investment banks. For example, one of the most prestigious boutique investment banks in the world chose DealCloud for its after a successful pilot with its private capital advisory team. The firm sees DealCloud as a way to help modernize its business with purpose-built AI, allowing them to unlock key deal and relationship insights more easily. Meridian Capital. chose DealCloud to improve visibility and management of deal origination, active mandates, buyer outreach, and business development and forecasting. Finally, our investments in real assets, including the April 2025 acquisition of Termsheet, continue to attract new clients who are coming to Intap for AI-driven solutions. I'll share a few examples. Neuberger Berman moved off its legacy horizontal CRM and onto DeoCloud to improve reporting, streamline workflows, reduce key person risk, and eliminate duplicative and inaccurate data. A leading mixed-use and multifamily housing developer replaced its existing system with DeoCloud. to improve data quality, user experience, analytics, reporting and optimization. And Smith Douglas replaced multiple legacy systems with DealCloud, which spans all of their divisions and will help them improve workflows and operations so they can deliver homes faster. In conclusion, we're proud of our strong second quarter performance. and we continue to be optimistic about our growth opportunities. As our Q2 performance has shown, we are growing by adding new capabilities and increasing our global enterprise go-to-market reach. We see continued opportunity both to add new clients across a broad TAM and to deliver greater value by expanding our existing client base. We're serving a durable end market with our subscription revenue model, industry-specific cloud platform, and applied AI and compliance capabilities. We have a great growth opportunity to drive AI, cloud adoption, and modernization across all the industries we serve. As always, I'd like to thank our clients, our partners, our investors, our board, and our global Intap team for their teamwork and dedication. Thank you all very much. Okay, David, over to you.