Okay, good morning, everyone. Welcome to Intapp's Investor Day 2026. I'm David Trone, Head of Investor Relations at Intapp. I'd like to say on my behalf and the leadership team, we really appreciate you tuning in to hear our story, for those of you on the webcast, and certainly for everyone here who braved the difficult conditions to get here in person. I'm gonna give a quick overview with the lineup and then go through some legal disclosures, and we'll get started. Our first speaker will be John Hall, our Chairman and CEO. He'll be followed by Thad Jampol, a Co-founder and our Chief Product Officer. Next will be Ben Harrison, President of Industries and founder of DealCloud, which, as most of you know, we acquired in 2018.
Don Coleman, also a co-founder, Chief Operating Officer, and we'll finish up with David Morton, our Chief Financial Officer. We'd like you to please hold questions to the end, when we will hold a Q&A session. Up until our. We endeavor to have a hard stop at 2:00 P.M., given the other activities today, including our notable annual client event, Amplify. Now I'm going to give a legal disclosure, and we'll get started. During the course of this meeting, we may make forward-looking statements regarding trends, strategies, and the anticipated performance of our business, including long-term targets.
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. Intapp 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, including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating profit, non-GAAP operating margin, free cash flow, and free cash flow margin. Reconciliation of GAAP to these non-GAAP measures can be found in today's presentation materials, which will be available on our website. With that, I'll turn it over to John.
David. Thank you all for joining us. Intapp helps the leading capital markets, legal, and advisory firms grow, manage risk, and run profitably. We're coming off a quarter of record results, with strong growth, strong retention, and a blue-chip roster of global clients. These are unusual times. AI is disrupting the software industry and the markets that we serve. Within the software industry, AI coding tools have reduced the time to build software. People are moving from clicking through software to working with agents that do the job for them. Seat-based pricing, a foundation of SaaS companies for 20 years, is under pressure. Software companies need to rethink their offerings and business models around agents. Not every company will make this shift, and it's not just the software industry. AI can now research, draft contracts, and build financial models.
Will that reduce demand for the professional services firms that we serve and the size of our market? Investors are asking: Is Intapp one of the companies that will successfully make this shift? How is Agentic AI going to impact our business? I want to begin by answering these questions clearly. Intapp is positioned to win in the Agentic AI cycle. Here's why. First, our markets are expanding. Demand for the elite professional firms we serve is growing, and we're confident this trend will continue. These top-of-the-industry firms provide essential core functions to capitalism. As the economy grows, companies will continue to need outside counsel for high-stakes litigation, bankers for acquisitions, and auditors for assurance.
Companies will continue to hire high-reputation outside advisors for their transactions because they need the expert advice, in addition, they need an accepted third party who can be held accountable for their advice and role in these transactions. That deep point has nothing to do with technology. The fundamental economic reasons that these high-end firms are in business are not going away. In fact, demand grows as the economy grows. These firms must transform. These firms absolutely do knowledge work, this industry has a tremendous opportunity to leverage all the new AI technologies to become much more efficient, capable, and competitive as firms. Most of them already see that potential, they are looking for AI solutions that help them capture that opportunity.
At the same time, having experimented with so many of these first-generation tools, the firms are increasingly aware of and acknowledging that the solutions that they need have a unique business and industry compliance requirement for AI that the horizontal players don't meet. Later in this presentation, we'll walk you through these in detail. Our news today is that we are launching Celeste, our Agentic AI platform built for professional firms. Our roadmap to this launch has been two years in the making. Celeste is a true AI-native platform built from the ground up. Celeste provides expert agents into our business workflows that drive firm growth, returns, and profitability, how firms originate new business, manage deals and assets, run business intake and compliance, and manage revenue. This is the biggest launch in our company's history. Thad Jampol is going to give you a special preview in this presentation.
Celeste is a standalone platform. It also enhances other AI tools such as Copilot, Claude, and Harvey. It provides the expert agents, firm-specific context, and professional compliance protections that those platforms need to actually work in a professional firm. Our launch partners for Celeste are Microsoft, Anthropic, and Harvey. You will have seen our release on Monday with Harvey and yesterday with Anthropic. Today, you will see all three of these partners on stage with us at Amplify. To position our portfolio for the next wave of Agentic demand, we are re-architecting all our core business applications to run as expert agents, powered by Celeste. At Amplify, we will show examples of expert agents for deal development, professional compliance, and revenue management, all powered by data in Intapp systems and running on Celeste.
Thad Jampol will also walk through these points in more detail for you later in this presentation. These innovations reinforce the strategic and AI value of our existing portfolio and expand our TAM with new Agentic use cases. As AI automates the work in a professional firm, we can move beyond software budgets and capture a larger share of their overall personnel budget. With Celeste, we're going to talk in an entirely different way about our market opportunity. We are actively entering the agent market, and it is a different TAM and size. In the way that we are rolling this out, the growth from Celeste and agents will be accretive to the growth of the core business. Don Coleman and Dave Morton will walk through these points in more detail. With Celeste, we now have the ability to apply consumption-based pricing. People are concerned about seats.
We absolutely use seats to land and expand inside accounts, and humans still work in these firms, despite rumors to the contrary, but it can be a very effective technique for account entry. Our model, though, is to land and expand that way and then convert these to enterprise agreements. A little later, Don Coleman will talk about this with you. Celeste puts us in position to charge for the value created by expert agents in place of human labor and to charge for the business activity, all that demand that the firms need to execute, flowing through the Intapp platform. Matters opened, deals managed, engagements resourced, and compliant actions approved. As firms do more with Celeste, we grow with them. With 2,750 firms already on Intapp, we have major distribution and technical advantages as we bring these Agentic innovations to market.
We already run our firm's end-to-end business workflows. We organize their most critical data, we help manage their professional compliance programs. There is no one better positioned. This is a summary of our strategy and why we're confident we'll win. We're gonna go through all of this in more detail now, beginning with our market and why it requires vertical solutions. Okay? As a reminder, we serve a large market. Professional and financial services firms, as an industry, represent roughly $4 trillion in annual revenue, including law firms, private capital firms, investment banks, accounting, consulting, and real assets. Within this market, we focus on the largest firms, two forces are reshaping the way these firms drive technology investment. The first that we've been talking about is AI. Every firm has an imperative to transform how they operate with AI. Initially, the focus was on productivity and cost.
Increasingly, we see the focus broadening to include AI-driven growth. The second is consolidation. Capital and market share are concentrating at the top. The largest law firms have roughly doubled in size since we've been working with them, through organic growth, mergers, and international expansion. The 10 largest PE firms now capture 45% of all capital raised. Private equity has entered the accounting vertical, driving over 400 M&A transactions in the past three years. Ben Harrison will walk through these market trends in more detail. As the largest firms get bigger, more complex, and more global, they need technology and AI to achieve economies of scale, to manage risk across jurisdictions, and to drive continued growth. Our keynote speaker this afternoon at Amplify will be Jim Peko, CEO of Grant Thornton Advisors, our client, who will address these trends.
As I shared at the last Investor Day, firms in our market have special needs for technology. This derives from the fact that they are structurally different. Unlike the typical corporate model, the firms we serve are led and primarily resourced by a broad group of highly experienced partners and partner-track developing professionals. In this very unusual structure, partners act as cross-functional business owners, each responsible for a wide range of business management and professional activities in their areas of the firm's investing strategy or service line. This is not a traditional company. On top of this, the firm's work is project-based. They assemble teams to complete engagements, a deal, a legal matter, a consulting project, and then they reassemble those teams in new configurations for the next project. These firms don't sell products in the traditional sense.
They win new business based on their knowledge, experience, and relationships. In large firms, like the ones that we serve, partners and professionals are working across dozens of practice areas, investment strategies, and disciplines. Over time, their collective expertise and client relationships build and compound. This institutional knowledge is the firm's moat. It's always been hard for the firm to capture and share this expertise. Much of this lives in people's heads. A partner in London may not know that a colleague in Dubai just worked on a similar deal last month. When a partner leaves, that knowledge walks out the door. As firms grow through M&A, lateral hiring, international expansion, this problem gets harder, not easier.
One of the biggest opportunities for AI is to help these firms at the firm level to capture and institutionalize their firm's knowledge, connect it across the organization, and put it to work. Finally, think about the nature of AI today. When every one of these firms has access to the same horizontal AI models, which trained on the same corpus of public information, firms need to differentiate themselves even more by putting their own proprietary knowledge to work. The firms that win will be those that capture their firm's knowledge, use it to power AI models and workflows, and deploy their knowledge at scale. Horizontal AI has a problem. Our target industry is highly regulated in a unique way. It carries a unique class of compliance requirements. We refer to these as professional compliance. These firms have professional and regulatory obligations unlike any other industry.
They must actively avoid conflicts of interest, protect material non-public information, maintain independence, and honor duties of loyalty and confidentiality that are both statutory and ethical. The requirements are strict and highly specific to each industry. Adherence to these requirements is existential for these firms. Their clients and investors depend on them to get judgment calls right every day across every engagement, and trust them with their most sensitive information to make those judgment calls. The firm is not only self-interested, they have made promises to their investors and their clients about how they will govern their activities and their knowledge and information that they must live up to. A compliance failure at a major law firm isn't a software bug, it's a malpractice claim.
A confidentiality breach of MNPI at a large multi-strategy firm operating in all the public and private markets isn't an inconvenience, it's an SEC investigation. One mistake, and the reputation these firms spent decades building is at risk. This is also why generic AI is hard to deploy in these firms. They cannot feed client data into systems that don't respect ethical walls, confidentiality obligations, or regulatory requirements. Compliance concerns are the number one blocker to AI adoption at these firms, and horizontal AI providers are not built with this specialized market in mind. This leads directly to our Agentic AI strategy. Before I go into it, I'd like to address a simple point that I think people are confused about.
The next-generation software development methodology and new tools, including Cursor, OpenAI Codex, Claude Code, GitHub Copilot, and a growing number of open-source options, are available for everyone to use, including us, and that's what we've been doing. I think we have tremendous advantages versus a startup in knowing exactly how to put these tools to use to build solutions that solve our customers' problems. We have unmatched expertise in understanding how these firms actually operate, and we already run giant portions of the firm today. Who better to use these tools to build Agentic generation solutions than us? That's exactly what we've been doing in this strategy. All right. You have seen our AI journey taking shape. When we launched Intapp Assist 24 months ago, we brought generative AI into our core products: DealCloud, our compliance suite, and Time.
Assist helps users effortlessly enter data, summarize information, and work more efficiently within the workflows they already use. We're seeing steady adoption, and Assist capabilities are driving upsells across our portfolio and improving both user experience and decision quality. We have also learned some lessons from Assist about the opportunities in driving individual productivity versus powering workflows at the firm level. Assist will continue, but it was just the beginning. Today, we are announcing Celeste, our Agentic AI platform, purpose-built for firm AI. Celeste is a true AI-native platform that we are launching today. We have incorporated years of learning into every aspect of Celeste's design. Celeste is not another productivity tool. It's AI that sits at the heart of the firm's organization, orchestrating and automating the core workflows that define a firm's success with expert agents.
Celeste is a standalone product that also complements our existing applications, DealCloud, our compliance suite, and Time. Celeste provides full governance over the agents that it powers. Celeste MCP is the gateway to the firm's governed information. Thad Jampol will walk through Celeste and these differentiators for you. As Celeste is an all-new product, we built it in-house with a fully AI-native code base. It is model-agnostic. Celeste is not tied to any single AI model. We select the best model for each task and give clients a choice of providers. As the models improve, Celeste gets better automatically without re-architecting. Being model-agnostic was a major design requirement coming from our clients. We also designed it around a new user experience paradigm. Agents replace traditional workflows. Instead of navigating through screens and clicking through menus, users work alongside expert agents that understand their firm's processes.
The expertise is in the agent, not the UI. The Celeste team is shipping on a startup cadence, leveraging all the fast-moving AI coding tools. We're learning quickly from our clients, and the product is getting better every day. Okay. Excuse me 1 second. Thank you. To the Agentic Opportunity, most AI attention in professional firms has focused on junior knowledge work: research, drafting, financial modeling. Tools for this are making real progress, but the partners who lead these firms spend their time very differently. PE partners focus on fundraising, LP relations, and deal pursuits. Law firm partners spend at least a third of their time on business development, and the senior rainmakers, much more. The senior professionals who drive firm economics are focused on relationships and origination, not document production.
Surrounding them are business services teams that keep the firm running: marketing, business development, practice management, conflicts, compliance, finance, talent, IT. These teams are growing in importance as firms scale, yet their workflows and interactions with the partners remain largely manual. The AI that partners and their teams need to run the firm looks nothing like a drafting copilot. It looks like expert intelligence that helps them identify which relationships to pursue, understand the firm's full history with a prospect, clear new business faster, and spot where a practice is leaking value. This work drives firm growth, returns, and profitability, and it is largely unaddressed. Firm leaders need AI that works for them, not just their junior staff, and firm leaders are very interested in the opportunity that expert agents have to help with the growth, returns, and profitability of the firm itself.
Let me drill into a simple illustration. You can take just one of the medium-sized business services departments, for example, the conflicts function. These functions' expense budgets grow extensively as the firm grows because the conflicts environment becomes much more complex. Firm leaders that we work with have estimated that 40%-60% of the department labor cost could be automated with AI. This kind of ROI is a different scale than traditional software. The opportunity for Intapp to deploy expert agents in the workflows we already control represents a huge change to our value proposition and value case. Obviously, this class of return is what makes Celeste such an incredible update to our value case. Don Coleman will talk more about this later.
If we take this and scale it up to our SAM, first, we have more than enough headroom in our traditional IT SAM to grow our company to $1 billion and beyond. As you have seen in our consistent results, we have been doing that. With our Agentic strategy, we are going to focus initially on making a smooth introduction of expert agents directly into those same business workflows that we already control with our software. Very conservatively, focusing only on bringing our expert agents into the same workflows that we already manage, we are today immediately naming an additional $30 billion Agentic Opportunity with Celeste. We are just launching Celeste now, this is upside to our plan as we expand our expert agent uses over time. Entering the Agentic market this way is a milestone in our company's history.
To tell you more about this exciting strategy, please let me introduce our Chief Product Officer and Co-founder, Thad Jampol.
Thank you. Thank you, John. All right, I'm gonna pick up on a few of those themes and the strategy and what we're doing with Celeste, where we're going with our product strategy. Up until now, in our markets, a lot of AI and a lot of the AI adoption has been focused on this generative-era question-answering type of AI. That is going to change. Firms are going to be moving from working with standalone models into Agentic systems of work. We think this is transformational for the operations and the competitiveness of the firms in which we serve. Here's why.
If you think about the prior generations of workflow technologies, so business process management, BPM, robotic process automation, RPA, some of the Power Automate integration class, they were powerful, but they were insufficient for the high complexity, high judgment workflows and business activities that are core to our markets and our firms. Think about sourcing and underwriting the best deals, collaborating across a global network to better serve your key clients, assessing a multiparty cross-border conflict. You could not automate those at scale. That ceiling is now gone. Agents can reason, they can adapt, and they could execute end to end. We think that is going to have a very huge impact. As John mentioned, our markets have very unique and heightened requirements, existential requirements that don't exist in other industries: MNPI, ethical walls, independence, market abuse regulations, your entire institutional history.
None of those exist in any generic AI or generic agents, that's the problem that we are solving with Celeste. As John said, this is absolutely the biggest thing that we've ever done. This is a standalone, true AI, native AI generation platform. This is what gives us the technology to harness agents. This is what is going to give us the ability to be able to deploy hundreds of agents across firms' business operations, to be able to capitalize on this incredible opportunity, to be able to fully execute on these workflows and business processes of which we are already playing a role in. Here's why nobody else can do this. Most of the firms right now are directly interacting with the models themselves. Sometimes they are working with suppliers.
The pejorative word wrapper sometimes is used around them, but very lightweight, generative-era question answering. We bring the expert agents, the industry-crafted, industry-specific agents. We are adding new ones every week. We are gonna have agents for every single function, capability, and business activity within the business operation of the firms in which we serve. Because we are already in there, we already know how they work, we are able to codify those best practices into what we call playbooks, and I'll explain those later. It runs the same way every time, and we will be building out-of-the-box libraries that we can do a lot of really exciting things, and I have a special point on that later. As you all know, LLMs and AI without context are kind of not that useful, certainly for this industry. We know these firms. We bring the industry context.
We can bring the firm context, your deals, your matters, engagements, your institutional history, the decisions that you've made, everything, and I'm gonna talk about that as well. Lastly, and perhaps most importantly, everything that Celeste does adheres to the heightened compliance and confidentiality requirements, those existential requirements that are central to this organization. Lastly, and this is a big theme that we have for our show later today, we work better together with the models. They're bringing incredible general intelligence in the frontier models, and together with our expert agents, with our industry context, with being able to embed in the workflows that the professionals use every day, and with the professional compliance, it's an incredible combination. This is why we're excited. This is why Anthropic is excited.
This is why Microsoft's excited. I expect that the remainder of the major model companies will be partners at some point. All right, this is Celeste. I'll just give you sort of a quick tour through here. I won't go too deep into it. I want to make a few points. You'll notice two things if you look closely at this. One is it looks like a modern kind of AI-era user interface. That's by design. It looks a little bit like Claude, it looks a little bit by ChatGPT. This is signifying to our clients that this truly is a new standalone AI generation offering. What is very different is, this is not generic. You don't need to work with it a month to train it.
It knows who you are from the first time that you log in, especially if you use an Intapp product. We have that decade, those years of transactional information. We know every deal that you have done. We know every matter that you've been on. We know every engagement that you have pitched. That is manifested here right from the beginning. The expert agents will bring insights into these tiles. One of them is about your professional network. Celeste knows the intermediaries, it knows the bankers that bring me the best deals. It says, "Hey, these 6 are the best. 2 of them, you probably should reach out to a little bit more. That relationship is degrading." It knows your pipeline. You should pay attention to this deal because it is very similar to one of your best deals with the best returns.
It has compliance information, it's portfolio information. This is expert agents in action, the little blue shield, it's kind of small up there, it says, "Intapp governed." That means everything that goes through Celeste is benefiting from that professional compliance, that harness, that safety. This is responsible, trusted AI that these firms require. We're going to show a super cool use case. I think everyone here will certainly understand this one. This is a team of analysts at a large private equity fund, they are drowning from the inbound deal flow, from the teasers and the CIMs that are hitting their relatively small team. What we're showing is how Celeste deploys an agent alongside those analysts to help them process those CIMs and teasers.
Instead of waking up and having this gigantic to-do list, these analysts wake up, and every single CIM and teaser has been opened, it has been processed. The comps have been validated, the metrics validated, the firm's preferred comps have been brought in. The institutional history, every historical investment, the ones that have been passed, the ones that the firm has done deals, the way that they have underwrote that, the way they have structured their IC memos, all of that is incorporated into the point of view that is waiting for that analyst at 7:30 A.M. They can look at it, they can evaluate it, and in fact, it'll even generate a preliminary LBO and valuation assessment. They can go over it before they submit it to their partner. This, again, I think you see this is transformative from just a little utility.
This is transformative from a pane with a blinking cursor that says, you know, "Type something in there." This is an agent. Then we're going to show, to my point on how we work complementary with the general models, we are going to show how this can be surfaced within Copilot. Okay, this is the architecture. I'll talk about this for a moment. The point here. Celeste is this standalone AI native product. It is also a platform, and it is how we are going to rearchitect our applications, which you see along the growth, compliance, profitability row, how we will rearchitect for the Agentic Era. I'll talk a little bit about that. Let me dig into Celeste first. Okay, I made a little bit of point earlier that we know the workflows and the business processes that drive these firms.
This is what we live and breathe, the value chains that drive the financial performance, that drive the competitiveness, that the managing partners and chair people think about every day. This is just a small list. We have an enormous one here. We play roles in it today. This is where we're going to start deploying agents. I talked about playbooks. This is super cool. As we begin to deploy these, we understand not just what they are, but how they should be run. We have relationships with malpractice insurers, with the regulators, with the thousands of customers that we have, with the industry luminaries, and we are able to channel all of those best practices into a playbook library that is included with Celeste that every customer can benefit from.
This list is constantly evolving and improving and changing, and this is something that no customer doing a do-it-yourself is going to be able to reproduce. Firms love this. They get incredible value from it. There's two points here I'd love for you to take away. So skills, these are the building blocks within playbooks. This is the part that actually does work. One of the important things about skills is that it can be run deterministically, which is pretty critical for this industry. You think about dealing with financials, and currency, and billion-dollar transactions, and bet-the-company litigation. You don't want the hallucinations, you don't want the probabilistic LLM giving you a different answer back every time. Sometimes that's okay. If you're doing a first draft of a pleading, fine. Generating a complaint, okay.
Not when you're doing heavy lifting in these big transactions, and that's what the skills allow you to do. It's a really cool architecture that benefits from the probabilistic general intelligence of the LLMs, but gives you the assurance of certainty in the moments where you need it in your most critical parts of your process. The connectors are the means by which we access all of the data, the tools, all of your systems of record, your applications, your third-party data feeds, and we have a whole set of those connectors that come out of the box. I mentioned this earlier, but an LLM without context, especially for this industry, is not super useful. The way that we solve this is through what we call Celeste Context Engine. It's looking across all of your data.
We have all the business logic, how the firm thinks about its different, and we have ontologies. All that means is we're able to look at the different business models across each of those applications, and we'll be able to tell you what an account is, or what a deal is, or what an opportunity is, or what a client is. This is how we are able to assess that a qualified opportunity at this firm means something different than a qualified opportunity at that firm. It really is how you pull all of this together to create the language that the agents can understand and act on. So we like to say we know your firm to our clients, and so we know their firm through that context engine.
There's another really important way that we know their firm, and that is through the applications that they use every day from Intapp. There are years, if not decades, of transactional information, configured workflows, approvals, permissions, compliance, that is impossible to reproduce. It would take years. If you really want an agent to go execute these value chains that I walked through, you're gonna need the data and the capabilities that live within these applications, and that's what Celeste orchestrates across. We really think we're bringing the best of all worlds to these clients. They don't have to rip out their core.
They get the benefit of the systems of record, all of their applications, what they're comfortable using, now they get the Agentic innovation and the automation on top of that from a company that they trust and they have worked with for a long time. You can see examples of the data, and this is just a small set of just the incredible wealth, and it's not just any data. These are the primitives, these are the objects. This is the foundation of how they do their deals, how they run their matters, how they run their engagements, how they compete, how they drive revenue, profit, and returns. Here you see an example of Celeste embedded within DealCloud and Conflicts.
I think I mentioned this earlier, but Celeste, not only is a standalone application, but it is embedded in every one of those applications. That does two big things. One is this is part of our Agentic refactoring or rearchitecture. Over time, Celeste will take on more and more part of the operation and the maintenance of these applications, relieving a lot of the humans that have to do that today, helping them. It also means we're not asking users to jump into Celeste standalone application on day one. This is probably how they will experience Celeste initially, within the applications that they're already using every day. As they want more power, this is a breadcrumb to lead them to the full, richer experience. This is an example of Celeste working through Claude. I showed an example of Copilot earlier. We really are agnostic.
We're agnostic with the models we use, we're agnostic with the actual model UI. Here is using our time, and pre-billing, and financial data that lives within our systems, and we're able to generate these really cool React charts through Claude that show realization within a firm, how they're gonna get paid, and then the impact in productivity that these AI tools are having with the organization, which is one of the big questions that firm leadership has. This gives a really cool way to address something that is very front of mind for leadership. Lastly, the walls for AI point. This is something that Celeste is built on top of. Again, I talked about a core design pillar. There's another point that I want to make here.
Not only does this secure and govern Celeste, but this is what underpins every AI product that firms are putting into their organizations. This is why Harvey wants to partner with us. This is why Anthropic wants to partner with us. CIOs love it, because now they can bring in additional tools for all the different use cases, and there is one governance and professional compliance layer underneath everything that allows them to deploy this in a responsible, trusted way. As John said, there's nothing that stops an AI deployment in its tracks more than a compliance issue and the GC throwing up the red flag. It is absolutely a no-go. It is the biggest encumbrance of firms successfully deploying AI in these regulated industries. We're really excited to have Walls for AI underneath that. Those are the points on Celeste.
We talked about the expert agents across all of those different business activities and value chains, being able to codify best practices in playbooks, have an ever-growing library of these, being able to activate our extensive partner network to build on top of it, to be able to continue working with our thousands of customers, to be able to engage the community of luminaries, regulators, malpractice insurers, knowing your firm to bring the context to the LLM, and doing that through the context engine, as well as benefiting from the very deep, extensive deployment of our applications, and then to have professional compliance underpinning and embedded in everything that we do. Thank you.
All right. Good afternoon. You heard from John a little bit about how different the businesses are that we serve from the traditional corporation, and from Thad, about how much we actually know about what these firms do to run. I'm gonna talk to you a little bit today about the markets that we serve, the dynamics that underlie those markets, and how we transform that into our go-to-market strategy. You take a look at the 6 core industries that we work in. Very complex, very hard to understand. We spent 25 years studying this market. We started out in the early days, actually working inside of these firms and building the products with them. After that, as we scaled up and had more resource, we've hired a tremendous number of people from this market.
Yes, analysts and associates, but the core hiring, we brought in MDs, people who've done the fundraising and led the deal process. We brought in C-suite executives from these professional services firms that have sat in that office and actually run those businesses. We brought in the heads of compliance and the, and the control function that work inside of these businesses. We brought this knowledge in-house, and we are experts in this market. It's very hard to understand. We feel like it's a moat. We don't think anybody else is studying these markets the way that we are and translating that into a go-to-market strategy. Today, we talked a lot about our enterprise focus. We've been reporting on it each quarter.
One of the biggest drivers of our knowledge and our intimacy in these markets are the tier one and the global enterprise clients that we've already landed in. They've opened their doors to us, they are teaching us about the dynamics that are driving their firms forward. We're excited about this space that we picked. While it's complex and hard to understand, we actually think we picked very good markets to work in. These are high-growth markets. There are durable, secular bull market trends in each one of them. They go through cycles, there are moments, of course, we want to talk to you about the relative growth rates in each market, because we think it's better than the general economy. We think it brings tailwinds for NTAP.
In addition to that, we want to talk about the underlying fundamentals that are driving those growth rates. That's what I really want to focus on here, because it's those fundamentals that are driving the innovation procedure in these firms, that are driving the digital transformation initiatives of the firms. We learn those, we understand those, and that's what we translate for our go-to-market field, so that they can go and approach the management teams, the boards of directors, and the heads of each of the functions inside of these industries. Bear with me. We're gonna go through each of them real quick. All right. In the legal market, this business, on average, if you look at the Am Law 100, grows about 7% to 8% a year.
If you look at the top firms in this market, some of our biggest clients, they grow at 15%-20%. There are a number of things that are driving this. A couple core items are higher billable rates and realized improvements. They're also doing practice area optimization and industry mix. They like litigation, they like M&A, they like private equity work. This is the high-value things with greater margins. In addition to that, they're looking to grow and cross-sell their clients, and they're doing global expansion. Their businesses are getting very big. There's more and more regulation in and around each of those markets, and they're getting harder to run. Each of these things are perfect dynamics for our platform. We're gonna talk about how we position it around that. In the accounting market, we have a really once-in-a-generation thing happening right now.
The private equity firms realized how consistent and recurring the assurance and tax and advisory revenue was inside of these firms. They started investing in this market. What started as small partnerships with very conservative IT spends and very small balances on the balance sheet. These businesses are now backed by private equity. They are consolidating. They are rolling up. We're extremely excited about this. We were already in this market, as this dynamic has played out, the demand for our products is growing substantially right now. Inside of the accounting firms, there's a couple core things also happening. The tech adoption and the digital transformation trends of all of their clients out in the world here is driving the need for that service. They're shifting their mix more towards advisory services. They're also building practices focused on regulatory and complexity.
We're watching all of that. The consulting business is very similar. If you look at the entirety of this market, it grows about, you know, the rate of the general economy, 3%-6%. If you get out of the Big Four and you get out of the top three strategy consulting firms, 'cause they're comping on these big revenue numbers, number 7 through 100 in the consulting markets tends to grow a lot faster at the 10%-15% rate. Private equity is rolling these businesses up as well. They are also focused on the high-value practices: digital transformation, tech transformation, strategic advisory, and M&A. They're focused on building the private equity practice and also the work in organizational changes that's undergoing with this shift to AI. We like these markets, and the roll-up dynamic is really a once-in-a-lifetime thing that we're excited about.
In the investment banking market, this is forecast to grow somewhere between 7% and 11% over the next decade. There's been a huge resurgence in M&A over the past year. The total value got to about $4.5 trillion, and as that grew and rose, that's a historic number, largest of all time. There was about a 9% rise in investment banking fees in the same period. The capital markets are open. There's a bunch of big tech IPOs expected. In addition to that, you know, there's a lot of follow-ons and debt issuance going on. This is expected to continue with these big tech companies and the strategic corporate funding needs that you've seen announced from a lot of the big tech companies that are spending on this.
In addition to this, the expansion of private equity, private credit, and the alternative capital models is a secular lift for investment banking. It provides more deal flow, it provides bespoke financing and repeated mandates, 'cause they have that 5-10 year hold, right? They've got to get in and out of the assets. We like the dynamics in this market as well. In private equity, I think we've all read the stats and heard this, but they've experienced two decades of secular bull market trends, double-digit growth, 15%-20%. AUM, $13 trillion-$14 trillion today, that's expected to grow at a 12% CAGR for the next five years, up to $17 trillion-$18 trillion.
That's good growth rate, but even within the private capital markets, there are some sub-markets, secondaries, the continuation vehicle market, some of these co-complex alternative, vehicle strategies as well, that are growing even faster than that. You know, secondaries market's a little opaque, but, some of the stats are showing that it was about a $50 billion market in 2024, and in 2025, they're saying it could be as big as a $100 billion market. We really like some of these trends, and we're orienting our business around those. In the real assets market, you guys saw we did the TermSheet acquisition. We had a position in this market. We acquired a company last year. We think the growth rate, is give or take, 7%-8% over the next decade.
There's a structural shift in capital investment into some of these new real estate assets. Of course, the data centers, which we've all read about, the industrial and tech-powered sectors. There's still some good urbanization and demographic trends for your core residential and commercial real estate investment growth, and there was a dip in COVID on the commercial side. If you actually look at the capital deployment into real estate and real assets, it's supported by increased institutional allocation right now, and there's some growing structures like these private REITs that are getting popular. There's also a tremendous amount of cross-border capital flow into the real asset sector. This isn't meant to be a dissertation or an economic presentation on the growth of our markets.
What we're trying to show you here is that we understand the underlying points in each of the markets that are causing them to grow and that are causing the management teams who run businesses in these markets to think about how they're gonna run their firms. What we just shared with you actually forms the tip of the spear for our business. This is where our marketing team and our product marketing team takes that information. We're distilling that down into our go-to-market strategy, right? We're not talking just about revenue, you know, revenue acceleration, cost reductions. We're actually talking about the core things in these markets. We're appealing to the management teams, we're appealing to the boards of directors. We're doing a value-oriented approach to our platform in and around the dynamics of each of those markets. They are hard to understand.
We do not think any horizontal player is approaching them in the same way that we are approaching them. We call these sales plays, and of course, every technology company has sales plays in terms of how they push and position their products. What we think is interesting here is actually what's inside of our sales play, and that's what's different. We have a lot of them that we run, and they change. This is the core growth driver in the market. Other years, we update them every year, right? It's about finding the greatest spot to get the throughput for our products and where we can get the best yields. I'm gonna share with you a couple of them that we've been running over the past 18 to 24 months, and then let's look at some client outcomes.
This is how we do it. This is how the sausage is made. This is how we are equipping the field team, that Don's gonna tell you about, to talk smartly on a consistent and repeatable basis. All right, let's pick one from the private capital market sector. We're gonna start with secondaries. This is super hot, very fast growth. The investment banking desks that are servicing this part of the market are some of the fastest-growing desks on the street, and obviously, the fundraising efforts in and among the GPs themselves have been massive in terms of creating some liquidity in this market. This is a publicly traded boutique investment bank, very large, a couple thousand people. They were on a horizontal solution for a decade. We had been in there, working and working.
They were unhappy, but it was functioning. We show up with a sales play focused on the private capital advisory team that's doing the secondaries transaction. This is the land for our company in that small blue bar on the left-hand side of the screen. Small desk, couple hundred people, very hard to understand what they're doing, the GP-led transactions, LP-led transactions, the fundraising. We go in there, we nail it. When we started, this desk had $40 million in revenue. Today, two years later, it's almost $110 million in revenue, this year, it's expected to go to $200 million. It was that outcome with the client of the land that won us the right to work with the entirety of the whole business.
We landed with that desk, product goes global to the whole firm. You can see the 6x growth after the initial land. This is what we're talking about. This is the level of fluency and intimacy that we have with the customer inside their business that are leading to the client outcomes. Not to mention that the product can do it, too. All right, let's pick another one. We talked about this influx of private equity dollars into the accounting market. These firms are getting big. They are getting big fast. They are doing acquisitions rapidly. They are getting harder and harder to run. This is a top 10 accounting firm. We landed here a while ago, prior to the last investor day that you saw. We had DealCloud in for their corporate finance and M&A team. It's actually a small group at the time.
They take this PE investment, right? A great leader. We start selling them employee compliance and attestation capabilities because they're transitioning the firm from that old partnership to a new corporate model, right? As they got acquired by this private equity firm. They go on an absolute acquisition tear. They have to run the global independence process across tons of member firms that they've acquired. It was the experience with their first two products with us that won us the mandate to run the global independence process across the entire international business. Tremendous growth here. We're very excited about this. We think we are the enabler to allow them to do that acquisition pace. We talked about the accounting market growth rates. This firm's growing at a 16% CAGR year-over-year for the last three years, we think underpinned by our software. Let's pick another one.
This is another top 20 accounting firm. They were an existing conflicts and Intake client and risk client of ours. They took PE investment, it was 2024. In 2025, they merged with a firm of equal size. You can see the cross-sell in the first bar, the conflicts and Intake upsell. Two firms come together, the acquirer, where we have Intake conflicts in, that product goes across to the entirety of the whole firm. The firm that was acquired has our employee compliance solution. They take that employee compliance solution backwards to the acquirer. That's the second upsell here that you see. Firm's getting big, doing mergers, going global. You see the impact here. I wanna talk just for a second about the ROI that the client achieved with our products, because I think this is pretty incredible.
Prior to putting our new business intake clearance system in, independent system in, they were doing their conflicts checks and their independence checks manually. They were doing 200 of them a year. They were doing them in a spreadsheet, and they were only doing them on the big clients where they thought they might have an issue. Today, at the run rate that our system's running on a monthly basis, John talked about how the firms gets bigger, and the independence, you know, becomes a growing, a growing problem. Today, they are doing run rates about 30,000 conflicts checks a year, from 200 manually to using an AI-oriented system to do it globally across every single client, every single engagement and transaction that they're working on. It's not manual. That's AI-enabled. I don't have a slide on it.
We have a very similar firm that we do this with that already had the system in that was doing it globally. We put our AI system in and did the same thing. We got a 30% uplift in terms of efficiency and speed with that product, as it, you know, as it went from the existing system as we replaced that existing system. You can see we're getting the breadth and the scale, but we're also getting the speed and the efficiency. Okay, many of you have seen quarter-to-quarter as we talk about moving some of those legacy on-prem clients from the early days in the legal industry to the cloud. We report this every quarter as well. We're making great progress here. Why do that?
All right, the sales play here, and the reason that we are working with these law firms to do this, is to get them to the cloud so that they can take advantage of all the AI in our products. Don't use the on-prem things because they're not as good as the cloud-based version with the AI in our products. This is one of the big sales plays that we do. This is one of the ways that we're driving that remaining on-premise revenue to the cloud, and of course, with the Agentic Release today, that proposition is even more compelling than it's been just with our first versions of Assist, some of the early machine learning AI. Let's look at a couple examples here. This is large Am Law 100 firm, New York-based. They were an early time client of ours on-premise.
We got the upsell on the profitability capability that we call Intapp Billstream, so they're doing time and billing inside of their firm. They choose to make an upgrade to the Intapp Time Cloud module. This is AI time capture. This is a better experience, cloud-based experience. You can see we're walking it up. We're making slow progress at this firm. As soon as you get to the cloud, as soon as you get to the AI experience, they want our next cloud-based product. It's not just about bringing the firm to the cloud, it's about once you get there, and you're getting that AI-oriented experience, it's so much better than it was previously, that we think it's accelerating the complete the suite of the rest of our software platform.
You can see huge growth here as we went from just being a time client to running the entire risk system globally. We are now in a DealCloud process here and early conversations about the Agentic AI capabilities across the full cloud suite. All right, one more. This is another great long-term client of ours. They started early with our entire risk suite. It was on-prem. Very happy, excellent client. We got the cross-sell of DealCloud and Collaboration, and then as they got the experience with those two products in the cloud, they looked at us, and they said, "We wanna take all of our on-premise stuff here." The reason for bringing their on-premise stuff to the cloud was that so that they could deploy AI across the entirety of the connected data. You can see the value proposition here.
This is another one, very similar. Long-term law firm client on the cloud with the compliance suite. We do terms and time in the cloud. We get the DealCloud cross-sell. They did a huge acquisition, merged two big firms, the reason for that, for the DealCloud win was so that they could have true client intelligence across those two firms that they combined and get the cross-sell and those large clients. They're in the middle of taking all of those early products that were on-premise to the cloud as well, so that they can send the Agentic AI through all of it. All right, last one. John talked about the success we've had with Assist, the CRM paradigm of DealCloud, the original, put my data in, update a Rolodex, have my analyst key information in on the pipeline.
That's really gone and a thing of the past. We have auto data ingestion, we have AI all over the UI, UX, and now we're gonna deploy agents through that software to automate most of that procedure. A huge sales play that we have is taking the thousands of clients that we have on that original usage paradigm and getting them into AI usage paradigm. It's much better and much easier. Let's talk about one exciting one here. This is real estate private equity firm. They started on DealCloud with us, deal management, they had some of the portfolio management data in there as well. It was a system of record for every transaction that they were doing. We did doc ingestion to automate the way that they were bringing in CIMs and teasers, the deal data. You can see a little bit of lift here.
They have been an early development partner with us on Celeste. You can see we nearly 2x'd the relationship just in the early Agentic AI days. The thing I really want to point out to you here is the difference in the bars between the DealCloud days and today, the Agentic AI piece. This is 2 agents. It's a development partner and 2 agents. They are running hundreds of processes for their firm in their DealCloud instance, and we just deployed 2 agents right there to get that lift. We think there's tremendous more room to run in these accounts, and when you see that TAM expansion from John, we think we have already a lot of early indications about how we can get there. All right, Don?
Ben shared the ways that we win, the sales place, how we go to market in the field. I want to offer a little bit about some of the transition that our go-to-market team has experienced over the, squeaky, transition we've experienced over the period since that last Investor Day, and start with a simple framing model. We look at the journey that a client goes on from new to us. We're gonna land them to mature and growing, scaling, and Ben talked about those stories. We also have, in our various markets, different heritage, where we've either started at the top or the bottom, and we simply split that to the middle market versus the enterprise. You will have heard from Dave over the last several years, our rotation and focus to enterprise. We call this our go-to-market transformation.
We've been embarked on this for the last two years. Overwhelmingly, the logos that are shared, that Ben talked about, those are the leading brands across this industry. Those are the top names. Those collectively fit within our enterprise motion. As we have done this, as we've done this rotation in some of these categories, from what might be an SMB to the enterprise, there's been a tremendous learning, and also we've earned that right as Ben shared, rights to serve up at that enterprise piece. Three-quarters of the SAM, this is the existing SAM in the traditional IT space, lives within the enterprise. That's the $15 billion number, and collectively, that represents 2,800 accounts. When the executives in this team on our team are thinking, we are thinking principally about those 2,800 accounts.
That is because so much of the consolidation, so much of the market forces that are driving, so much of the technology spend, exists at the top portion of that. We get in larger, we sell for more, and we have tremendous runway to sell from there. I want to share with you a little bit just how that feels across the cohorts of clients. In every single case, there has been a dramatic inflection of what we're able to land with, what we're able to win with, and how that accelerates. You can see here the impact of Intapp Assist at the very top. When you aggregate those individual stories that Ben shared, you can start to see how, over the last two years, that introduction and that inflection has lifted what we have been doing at the top layers of our client accounts.
As we are a more strategic partner, as we have earned the right to sell into, as we have mastered those industries, and we're able to speak very deeply to those sub-processes that Thad spoke about and their specific contours and workflows. This is new for us to share. Within those 2,800 accounts, today, our client logos are split roughly two-thirds, one-thirds, between professional and financial services. Of that client logo space, we have approximately one-third today as clients. When we talk about the path to $1 billion, it's a very simple story. We move that bar to the right? There's a tremendous amount of market headway. We are the trusted brand. We're having very successful sales pursuits, having earned that enterprise right across these. Landing those new logos is a very simple path to do it.
Additionally, Ben shared with you the experience we're having at just about every one of these enterprise clients, which is they grow with us, we find additional use cases, we expand, we've earned the right to get in and to serve, and then from there, you expand. This very simple view, I think, is a very core piece of how we view our traditional revenue opportunity across these firms. We've been focused this year on increasing the overall density, particularly in enterprise. That has just been a recurring theme that you've heard in our calls. We've found great success with it. I think we're just gonna keep going more. We're gonna continue to increase the density of coverage across the accounts, landing those firms that we don't have and growing across more.
We also have some additional and significant geographic expansion as you serve in that enterprise and as you're expected to cover our client firms in the major capital centers where they operate. A big part of the company's success is not just the knowledge of their firm so that we can speak intelligently in the sales process, but ultimately, it's delivering an outcome that impacts their business in some way. We have invested in our capabilities locally, but I think one of the most important parts of Intapp strategy has been to cultivate the ecosystem that services these firms already. We see ourselves as central, our clients see ourselves as central to the ecosystems in which they operate.
This is a simple view that shows the majority of the technology partner of the universe of partners in the various firms. It's split three ways. At the top are the data partners. These are the people with proprietary content, who are infusing that content for professionals to make their business decisions, whether it is conflicts, to make sure you're not dealing with a person on a list that shouldn't be, et cetera. Whether it's investment advice from any of the PitchBook or Preqin or others, much of these data is consumed directly within the Intapp systems. Secondarily, the technology partners to work in this, these are complex enterprise ecosystems, and we have spent years building glue connections and integrations across all, so that our products work with all of those. Finally, the services providers.
Many of these firms have existing relationships with folks who they know and trust, and those people have large and established now Intapp practices. You will hear, if you stay for the afternoon session, all of these people, and as well tomorrow at our partner forum, talk about how they are going to join with us in working on this Agentic Transformation. Not only are these people in our today ecosystem, but these are allies that we are enlisting in the transformation that John listed in the beginning. I'd like to give you a couple examples. We do this obviously because we win at a much higher rate, and our deal sizes are bigger. I'd like to share with you three specific examples that I think tell the story.
While we're in this room, in the room adjacent, are 20 CIOs of the leading professional services firms in the world. These are the biggest of the big, they are with us jointly in a pre-show to Amplify with an executive vice president at Microsoft talking about industry strategy and exactly the concepts that Thad and John laid out. We are charting that course together, Intapp strategy to co-sell, co-market, to co-develop with Microsoft is absolutely directly on display. You can kinda walk by and see it as you go through. The relationship there is tremendous. 50% of our largest transactions year to date, more than 50% of our largest transactions year to date, have been jointly with Microsoft.
We are at one of the four largest accounting—one of the Big Four accounting firms on a process to prepare that firm's content for the Agentic World, for the AI world, in a Microsoft SharePoint Intapp collaboration project that's beginning right now. That is the type of co-development effort that we're exploring and rolling across the market with them. We talked about Harvey. It's the opposite end of the spectrum. Great, big 50-year-old Microsoft, I think these guys are a few years old, but Harvey is an AI-era startup that's got tremendous progress in the market. There's a lot of news, a lot of excitement. Intapp is in the business of law to the extent in the legal market. We work on the operational side and the categories that John listed.
This is somebody who works in the practice of law, so practicing law. This solution cannot be deployed at scale in our firms without the confidentiality management and ethical controls, governed AI, that John and Thad spoke about. When you saw that secured by Intapp, governed by Intapp on the right-hand side, that's exactly the challenge that exists here. You'll hear the CEO of Harvey on stage this afternoon with John, explaining this value proposition and explaining directly how this governed nature of AI is necessary for the successful deployment of these technologies. It won't be just Harvey. This is something that anyone that seeks to have an all-knowing brain applied to the firm content and information must be able to adopt. What are the rules? What do you get to know? What do you get to know?
How can I validate when someone comes and asks that we've never crossed those walls? It's a very marquee announcement we're excited to make this week. On another end of the spectrum, Anthropic. You will hear this afternoon, Eleanor Dorfman, who is the Head of Industries for Anthropic, about their strategies with Intapp to bring Claude and some of those products to market together. We're very excited about this, it's just part of that model-agnostic strategy that we've got. Where our customers are, we will meet them, we'll bring these capabilities to their market. Okay. One of the big questions that exists generally about the SaaS world is, well, what's gonna happen with the seats? Well, how is that gonna unfold?
I'd like to share with you, Intapp of course, sells seats, and much of Ben's story was the seat-based story. We came in, we had a small desk, a small win, we had some success, and we expanded that. As that goes, oftentimes, we convert our firms to some type of enterprise license, and there's lots of definitions for what that can be. That could be assets under management. It could be a function of the number of professionals total in the firm. It could be something tied to their revenue, but we count something other than seats. One of the important things to appreciate about the company is that today, less than 50% of our ARR is seat based. Less than 50% of the ARR comes from a mechanism that is seat based. We're very happy with seats.
It's a great way to get in, right? We're also very excited about the fact that we can grow and expand and really have an enterprise-level partnership with these firms. Celeste does, adds another arrow to the quiver. It's not yet in our model, but we will release this in a conventional AI basis, which will have a platform fee and then a consumption model. What this means is we'll be able to get paid for the security each time we implement security, or as conflicts checks are run, or as any of those agents run their factory and provide. That's an additional piece, and I'm excited that we've got multiple different ways to monetize the relationships we've got. Okay. Thanks, Dave.
Thank you all for joining us today. You know, a good predictor of future performance is also acknowledging some of the past. Just as I stood before you approximately two years ago, we've done some quite remarkable things.
When you think about just the whole model evolution of where we broke out SaaS, you know, that's upwards of 70% of our total revenues now. We de-emphasized services. We've been trying to move more and more from on-prem to license, we've done a very good job on that. Cloud ARR, as you all know, with our quarterly earnings, the trailing 12 months at $100 million, that's up from approximately $65 million, trailing 12 months when I stood before you two years ago. We've made meaningful progress at scale, specifically with our cloud deployments. When you think about enterprise, the enterprise motion altogether, we'll show some episodic new disclosures here. I'm happy to report that our greater than $1 million cohorts have actually doubled in size.
We're talking three digits now. They're very, very meaningful, and we'll get into that cohort here in a little bit. Migrations, we're up about 5% of folks that have at least one module in the cloud. With the Celeste announcement, we only see that accelerating. Obviously, we've done a great job with M&A, pulling in some of the TermSheet assets. We have other within a long-term pipeline as well. When you think about profitability and what we've done there, we're up 10 percentage points. We've worked a lot of effort not only on OpEx, but our free cash flow margins as well. We'll talk about what the future state holds. Some of this presentation is we're drawing a line in the sand.
This is a line in the sand, rule of 40, when you look at our true growth, matters, i.e., SaaS, and where our non-GAAP operating performance has been. We'll talk about GAAP as well. Power of the platform. The reason I bring this up is Thad did a very good job walking us all through the different asymptotes and what his team has been very busy developing. I look at this as so many opportunities to monetize. When you think about not only the new consumption models that Don's been articulating, the new development of some of the key technologies that we'll be bringing forward, and just get really excited about what that portends going into the future.
Furthermore, when we step back and say, "Okay, when I stood in front of you approximately two years ago, how has our SAM TAM evolved?" We're now articulating this as a true IT SAM TAM. When you think about where we were, Investor Day, it was approximately $15 billion, and through our pricing, packaging, a couple of our acquisitions, we believe we're closer to $20 billion today of IT SAM TAM. That's just pure go forward as we know it today. That doesn't include some of that Agentic Opportunity that we've been articulating earlier. More so, within that $15 billion-$20 billion breakout, nominal amounts on pricing, packaging, product expansion, and then we've been taking opportunity really with our real assets, with the TermSheet acquisition.
Getting into the total $20 billion IT SAM TAM, plus the Agentic Opportunity, we believe we have line of sight to $30 billion or, excuse me, $50 billion go forward, just at this rate of pace today. It's a little nomenclature there, but we're still holding on to that IT SAM TAM. You're also getting into this Agentic AI Opportunity, which John walked us through with the back office and how much is there to monetize. Stepping back, this is our core revenue stream. We're gonna start broadening our definitions on a prospective basis come FY27, because we do have a lot of new models in flight, but just for common definition, subscription here is known as SaaS. We're much broader than that. As you heard Don say, less than 50% of our ARR is actually seat-based.
We're also entering the form of value, as well as consumption. For us, the nomenclature going forward is gonna be true subscription. On top, you can kinda see the movement that we've been de-emphasizing, both from a license and professional services. All things being considered, yeah, we've had a 20% CAGR. Great. If you just pull that thread on just pure subscription, it's closer to 32%. We've had 2-3 good quarters here where you've seen some slight acceleration because of our performance. Also talking about just our total ARR, when you look at where we've gone from, both on-prem and cloud, now you're seeing the complete mix of when I was in front of you for Intapp Investor Day, the inaugural one, we've increased well over 10 points on this as well.
That will continue with that forward-looking trend. Again, 32% CAGR over the time, which is very, very health and strength in these markets. When you look at just us continuing to grow total net new year-over-year, this continues to increase at scale as well. Up one and a half times, both from Investor Day to today on a trailing 12 months, which is very, very healthy. Now you're seeing the densification strategy in and around our enterprise, where both our lands and expands are getting bigger, and I'll get into that in a minute. Key growth drivers. We've talked about your nominal ones, of we have a lot more new logos to go get. We believe we can get to $1 billion of ARR there.
Clearly, with expands, we think we can get to well beyond $1 billion of ARR just on that motion. Don teased a little bit about some new geographies, we're throwing some investments, opportunities there. We're talking about new solutions, new subsets. Obviously, we've been monetizing those. Later this afternoon, over to the right, you'll hear about our full platform of Celeste, which should be incremental to our billion-dollar aspirations. This is just to provide kind of a reorientation of where we're at on total ARR of PS versus FS. I know in the previous, we've narrated around one-third versus two-thirds. It's almost 50/50. We've seen strong growth across both through our provisioning of not only on compliance and intakes, but also time as well as DealCloud, across both sets of clients that fit within these end verticals.
Our revenue mix continues to be strong, both U.S. versus non, and that will continue to grow accordingly as we continue to densify and call upon those key enterprise accounts. We've talked in the past qualitatively about, okay, where do you get a lot of your net new ACV or net new ARR? Yes, we have a very strong land motion, but we've been doing a lot of expand, and you kinda see it in the numbers as well with the NRR. This just give you context of how once we land, we're very, very sticky, and those enterprise accounts can be very, very large, and we consume a lot of that white space. In fact, when we land, our lands are almost 50% greater than where we were at the time of IPO.
We've also heard a narrative on, you know, timing, duration, in and around some of those lands and what clients are truly setting up for. If you think about it, these enterprise clients, on average, our top 10 ARR are 3 years. If you look at the performance of our RPO since growth, long-term RPO, it's up 10 points. Our average contract duration of IPO versus today is up 20%. All of those just lead to you that we are the truly entrusted platform for the clients that we serve, and they're very excited about today's announcements as well. This, we know we've provided a logo count, just total logos, in our universe of acquisition, net new logo with more than 2,750 this past quarter, which is great success.
With that said, not every net new logo is created equal. Some could be mid-market. The ones we'll continue to service those and facilitate that acquisition, but the ones we're really targeting are the enterprise level. These are the logos, 50K and above, we'll report as a cohort go forward. You can see the strength of kind of this cohort. You know, it's over 95% of the total ARR. Oh, by the way, it's up 50% of the total year-over-year on clients. When you think about it on a trend basis, it is growing extensively, up 10% year-over-year, with quarter to date or year to date, over 100 adds, net new adds. It's very healthy of those accounts that we're adding. Strong growth in our large clients.
The 100K number isn't anything new, but this $1 million cohort is net new disclosure for you all at 120, up 38% year-over-year, which is quite sizable, not only because of our net new our net lands are getting bigger, but even our expands, and it's that consumption of white space, of cross-sell and upsell activity. When you think about the, just that denomination of that cohort, we have over 10 clients, a $3 million-plus ARR. In 2, 3 years from now, hopefully, I'm talking over $5 million, $10 million, and continue to consume. Our white space is large, and we've been very entrusted by our clients. Progress in our $1 million ARR client base.
If you think about it, at the time of IPO, our total ARR, only 25% was part of that $1 million cohort. Today, it's about 40%. five of our six verticals, we have somebody over $1 million, and it represents over $225 million of ARR today, and it's up 4x since IPO. There's no reason that this number should decel at all. Just continuing on, taking the flip side of that, the white space that we have on our $50K cohort is approximately, you know, 10%. We have a lot of white space with those accounts. This is actually my favorite slide out of them all, because it doesn't speak necessarily to, you know, one cohort versus another. Each year has been very, very steadfast and growing accordingly.
It just shows that, hey, our gross revenue retention is strong, our churn is very minimal, and it's all been about to expand. Up 20% growth in FY25. Which you've all seen the 124% of NRR, which translates into that. Just pulling the thread on that 124%, it really does come from the land and expand motion. Specifically, cross-sell, and we've started narrating a little bit more about that. What does that mean? Well, that means if we landed originally with DealCloud over in financial services, we're doing really well with our compliance motion cross-selling. Vis-à-vis, if we're landing compliance with over in the other areas, we're doing very well with the cross-sell into DealCloud.
We've seen a lot of strength there, and that is a new motion for us over this past, you know, 18 months. Pricing has been nominal. Yes, we'll take it, but it's not the end all. In cloud migrations, there's still a lot more to come there, that's been about a point or two. As we continue to move through that cycle, we'll see even more tailwinds. Introduced this kind of analysis on the cohort two years ago. It showed about how much white space we have just on our top 200 clients, there's still a lot to go. Again, this is the IT SAM. When we start talking about the Agentic SAM of the $30 billion, these numbers would become even larger.
Even today, if you look at these opportunity sets, each one of them could articulate even our strongest clients. We have a lot more to sell, and that's what gets me really excited, and I know it does for Don and Ben as well. Firm AI, just as a sub-note, that's where we're pulling in Celeste and the collaboration, previously BU, that we're narrating around. This alone is just another two and a half billion dollar opportunity. When we talk about getting to that $1 billion of ARR, it's line of sight. We'll talk about what that line of sight, line in the sand means, but it's coming a lot sooner. This is an articulation that we have been successful even with Deal Cloud into legal. It's approximately 10% of our total Deal Cloud ARR.
We've made meaningfully inroads on that adoption of that cross-sell motion. It's been very successful playbook. I think Ben actually showed an example of that. We're very, very thoughtful about how we can continue to expand that as well. You've all seen this many times in and around kind of where we're at on our cloud migration. We do have even more opportunities if folks wanna aggressively move faster and faster into this Agentic era, because you need to be in the cloud. You need to be cloud native. None of that has changed. I'm excited to speak to the partners tomorrow. I know they're excited about what we've released and what that means for the whole ecosystem, and how we serve them successfully. To that point, this is kind of the progress we've made, where we're at.
This is illustrative of how much more to go, of what their picture is of that $100 million on-prem. We're furthest along on time. Conflicts, we're right behind, and walls. All of these are well underway, and we'll start finally seeing those conversions take place, which then will add further to that cloud ARR and even that NRR number that I just showed you previously. Then here. On a go-forward basis, we will have clean KPIs of our Celeste Agentic vectors. This past quarter, approximately 10% of our net new client spend was from Assist. Quite healthy, because that was just version 1.0, 2.0, and hasn't included anything of what you'll see this afternoon. We're quite excited about what that portends on that growth asymptote. M&A, we've had a great track record.
We've seen it been highly successful with the capital that we have deployed since IPO, the SAM and TAM that it has offered, and the combination that it's delivered, both from either a technology tuck-in or top-line revenue growth, or a subset into a specific vertical where we didn't necessarily have the expertise at that time. We don't see that slowing down anytime. As far as our operating leverage, this is something that we've been working very hard on as a management team. Again, gross margin improvement since where I've stood before you, back at our inaugural Investor Day, up 6 points. One, subscription revenue mix. Two, economies of scale, we still have some more opportunities there. Obviously, our services margin mix. On our operating margin, up 12 points.
We've seen the subscription mix of revenue, sales and marketing productivity, and then G&A, economies of scale. Our success in the past definitely enables us to think about how we do things in the future, and it doesn't give us any lack of confidence of what we're able to achieve. Obviously, what that yielded from our free cash flow. Gross margin leverage, working capital management, and operational efficiency, which, if you think about it, generated over $200 million, versus when I stood before you, it was only $60 million. Which then begs the question, the capital allocation framework, which we technically haven't had a formal conversation on. Yes, we have done some board-authorized share buybacks. Just to set the stage, first and foremost, we're gonna continue to invest in the team.
We have a wonderful set of releases set out today, which is of no consequence. It will be our largest one today or to date. We're going to continue to do that. Two, we're going to be deliberate and disciplined M&A. We believe we've been able to achieve that thus far. Three, dilution management, which you've seen us exercise the $150 million that the board authorized for 3 quarters ago, we just have another share authorization for $200 million. Obviously has brought us to approximately 0% dilution for this year. We'll continue to work on that. What all that means, headlines to our top line, $1 billion growth, and kind of where we see that trajectory. Cloud growth, we're going to continue to have that as our primary revenue driver.
We've got strong NRR, we've got a path just on net new logos, and we have a path just on net expand. Our 50k plus ARR clients, we've shown success factors there, and we're going to continue to grow that trajectory, that logo trajectory. Subscription mix progression, on-prem to cloud. Hopefully, we get past 80% here soon. AI ecosystem. We're going to continue to participate in that, but we're going to participate it in different ways, as Don had narrated on: consumption, platform fees, data, on and on and on. We're very, very excited about that. Client satisfaction, Don touched on that a little bit earlier. Obviously, we'll want to keep churn to a minimum, sustain leverage commitment. I think we've had a good track record, and we're going to continue doing that. Capital allocation discipline.
When I stood before you in 2024, this was kind of the articulation of where we were at then, only $365 million of ARR. Today, over $500 million. Our target, where we're putting a line in the sand, is to have $1 billion of ARR by FY29, which is approximately a 20% CAGR. It also takes off those revenue mix equation off the table between services and licenses. It's ARR, and this is what should count. non-GAAP gross margin, 80%. non-GAAP operating margins, tighten that, 28%-30%, and our free cash flow margins of 25%-30%. That's FY29, right around the corner, line of sight. Last but not least, GAAP operating income profitable, FY28. We acknowledge our stock-based comp has gone up this past 2 quarters.
We've hired some excellent talent, stage-appropriate people, executives, AI, Agentic, technologists, and we are leading the way. Unfortunately, we have a near-term bubble within that. With that said, we are committing to positive GAAP operating profit in FY28. It will be managed, as with everything else. With that, I'll turn it back over to John Hall.
Thank you, Dave. Okay. Very solid foundation, consistent execution. You all saw what we said in 2024, you see what we've delivered here. On top of this baseline, solid performance as a company to this unique market, I want to summarize some of the unique advantages we have for this Agentic Opportunity that's in front of us today. First, we're not starting from scratch. We have an extensive client base who already trust us to manage their most critical workflows, including, for example, 96% of the Am Law 100. Hundreds of the world's leading private capital firms. I can go on. Many of these clients have been asking us to build this very product for them in our advisory boards over the past 2 years.
Our distribution channel is tailor-made for the Celeste opportunity, and we have, as you saw, scaled enterprise go-to-market today that is already embedded in these firms and working with them every day on their key business process opportunities. We have a decade-long head start in establishing our position in this marketplace. Second, we already manage the critical data and the workflows for these firms today. We manage their systems of record for fundraising and fund deployment, for client engagement and deals, for conflicts and compliance, for time and billing. We power dozens, sometimes hundreds of different workflows for these firms, which they have carefully designed with us. We aren't asking firms to adopt a new platform or migrate their data. We're adding expert agents to help operate the systems they already use. If you go to Amplify, you will see this in motion.
They're working with people on this that they already trust and workflows that they already depend on. This is a platform and technical advantage that is unmatched in our industry. Third, we are unique in our professional compliance position in the market. We are recognized as the industry leader. Firm general counsels and risk and compliance officers ask for Intapp by name. When we had the joint announcement with Harvey at their event in London on Monday, Ben Harrison was there representing us and talking to the CEO. When this went up, there was applause from the audience. We have long-standing connections to the professional indemnity insurers, and the ecosystem of AI players looks to us to help manage professional compliance requirements in their own deployments. There's an example. Fourth, that ecosystem is not limited to those few companies that we're talking about.
We have cultivated one of the largest ecosystems in this market, serving these firms. We have a wide range of partners today who can amplify our value, proposition, and reach and help us bring this generation of Agentic AI solutions to every client in our market. They're motivated to do so because they want to get into the Agentic AI game, too. Fifth, we have a very successful track record of M&A, and we can continue to use this to fill out our platform as the market continues to evolve. Our most recent acquisition of TermSheet was a fantastic move to bring some excellent AI technology and teams and talent to augment our offering. You will see some of the speakers there at Amplify today. Finally, I would just like to point out the uniqueness of our team.
This isn't a business that you can just build overnight. We've spent 25 years earning the trust of these firms, and our team is a major reason why. Our people come from the industries that we serve. In addition to the Silicon Valley group, we have former bankers, lawyers, compliance professionals. Our team works with clients on all of the advisory boards that set our roadmap and our ambassador programs. Those relationships have always directly shaped our roadmap and what we build and buy. We don't guess what these firms need, they tell us. This is also a founder-led business. From the beginning, we've combined the Silicon Valley technology expertise with deep industry knowledge in New York and London, and that combination of engineering excellence and industry fluency is rare and very hard to replicate. As you know from our bootstrapped history, our focus on client success runs deep.
Our 124% cloud net revenue retention rate, it's just an example, but I think it really captures the value clients see in our platform and our ability to expand these long-term relationships over time because they trust us. The Agentic AI Opportunity is something we could not be more excited about as a team to bring to this market successfully. To sum up, firms are expanding, but they need AI that is compliant and built for how they work. Celeste is our AI-native Agentic platform, purpose-built for professional firms. We partner with Microsoft, Anthropic, and Harvey. Celeste makes their tools better, and we're re-architecting our applications as expert agents running on Celeste. These innovations reinforce the value of our portfolio, expand our TAM, and enable us to apply consumption-based pricing.
We have the distribution, the data, the workflows, the compliance, the ecosystem, and the team to win. Intapp is positioned to win the Agentic AI cycle in this highly regulated and lucrative market. Thank you. We're happy to take some questions.
We will do about 15, 20 minutes of questions, but we've all seen this. This is being webcast, so please wait for the mic to get to you, okay? The people on the webcast won't hear your question. Agnes and Dylan will be bringing the mics around for everyone who needs it. Again, please hold your question until you get the mic. Kevin McVeigh over here. Dylan.
Do you want to join me? Guys, you want to join me?
Kevin, if you want to hold off till our execs get up here, that would be great.
You folks want to come up? You go, Ben.
All right.
Okay. At your service.
Thanks so much. It's Kevin McVeigh from UBS. Really terrific presentation. John, I guess one thing to start with, what's the funding source for the increased budget from the clients? Is it coming from internal efficiencies that the AI is generating? Then, you know, as you platoon with Harvey's and Anthropic's, are you bundling that together? You know, just as kind of the industry continues to evolve, what's the source of the funding, and then ultimately, is that part of the consumption, or how does that manifest itself in the model?
There are three sources, I would say. There is absolutely a preexisting traditional IT budget, and the CIOs have become very AI-oriented. It's hard to talk to them without talking about AI anymore, as you would expect. There's a fair bit in the AI budgets that we traditionally have called on and can still win, and we are winning. There's a new set of budgets which are AI-specific. A lot of the firms have created, they might call it an AI budget, they might call it an innovation budget. Sometimes it's under the CIO, sometimes they have a new leader, like a head of innovation, who is responsible for evaluating that, or a head of AI that's responsible for evaluating that. We can pursue that category of spending as well.
Firms definitely have, you know, created a budget for that above the traditional IT budget. You're seeing already an increase in percentage of revenue going to AI plus IT. I think with this Agentic opportunity, there is a totally different source of funding, which is you look at the planned headcount increases for these various functions, and you look at how much they were planning to spend on roles X, Y, and Z, and you can make a business case to say: We will help you avoid certain types of hiring and replace that with an agent spend.
You saw that example where some of the firms that we worked with have helped us estimate this, and they're saying 40%-60% of, in that example, that particular process, is labor spent that they think they can avoid with appropriately deployed compliant agents. I think that is actually a very big opportunity because suddenly you're outside of a percentage of revenue, AI or IT spend, into what is your business expense planning for the firm and your cost structure for the firm across all of the different practice areas, service lines, investing teams, and all of the different business services folks. It's a three-part ROI case.
That's helpful. Then just, I always like to ask, what was the origin of Celeste? How'd you come up with the name for that?
Isn't it beautiful?
Yeah.
I'm very grateful. We did not have Dustin Sedgwick, our new CMO, who joined us recently, but Dustin's in the room, and his team has done incredible work putting together a very appropriate next-generation brand experience that really feels like AI native messaging and storytelling next to the incredible work that the product team has done that really bring out the benefits of it. You're gonna see a lot of the outcome here, but Dustin's here if anybody wants to talk to him. We're very appreciative of the work that he and his team have done.
Alex?
All right. Thank you. Thank you. Alex Sklar with Raymond James. First one, I don't know if John or Thad wants to take this, but with Celeste, can you just talk a little bit more about the Intapp mode, specifically around the data that's underlying those playbooks? You talked about coming pre-configured on a persona basis. Do you already have that underlying context data? Is that something clients still need to opt into? I've got a quick follow-up.
Sure. It comes out of the box with the connectors and will be automatically configured as part of the deployment to any Intapp application that they have. They have the option to extend that to other systems. We have connector for Snowflake, we have connectors for some of the partners, and so that would just be optionality as part of the deployment. The context layer does come with that. That is also a small configuration to make sure that we're using the right terminology that that firm uses, the right semantic understanding, and some of the ontological mapping, just sort of the data mappings underneath the hood. So it comes with templates out of the box, but there is a lightweight deployment process associated with it.
Got it. Just a quick follow-up. You've had Intapp Assist kind of launch 2 years ago, Walls for AI as well. When you look at the kind of adoption curve over the last 2 years, how does that kind of inform your thought process on what the adoption curve of Celeste would look like?
I think one of the things that we observed with the Intapp Assist capability was, on the one hand, there were firms, as we were talking about earlier, who were looking for AI specifically, but a lot of the end users experienced Intapp Assist as a much easier way to interact with the various products, for example, DealCloud. There was a lot of end-user enthusiasm for this. I think the opportunity going forward with Celeste is talking about expert agents at the firm level for the processes as a whole, which might interact with many different people along the path. There's a lot of benefit to the individual user because Celeste will be available, as you saw, to the individual users.
There's also a really interesting story to move up to the more senior business owners of the overall processes for the firm and be able to make a business case around enterprise agents and also make an operational case. How will your firm's performance evolve as you bring these out? Ben, you were sharing some examples of what people are seeing with some of that. You know, we don't want to claim too much, but I'm actually very optimistic about what the uptake should be, because the value case is so significant to these firms, and the interest level in enterprise agents purpose-built for the market seems very strong from all the feedback that we've gotten.
Hi, Bella Camaj on behalf of Alexei Gogolev, J.P. Morgan. You've highlighted a significant, $50 billion-plus Agentic AI Opportunity. Could you break that down a bit more by the subverticals that you serve? Where would you foresee the greatest adoption, given any trends you've noticed with past product rollouts and AI adoption?
Sure. One of the things we wanted to emphasize with this Agentic SAM that we're sharing with you all is we wanted to be relatively conservative with it as the first time that we're naming this additional SAM. We're focused on the business processes that we already own and operate. The business acceptance workflow, the sourcing and origination workflows in DealCloud, in the financial services markets and private capital markets, the conflicts, clearance, independence, governance. That is a sum of agents we think we can immediately deploy in just the systems that we already have, so that we can go directly into the same buyers with a Agentic story now.
There actually is significant opportunity above this that we haven't declared there, where we can, as we develop these playbooks and bring out more of our agents, we can propose to bring value across a much wider range of the firm's activities. That's how we put it together.
Thank you.
Hi, guys. Thank you. When you talk about rearchitecting the products to make them more AI native, what does that mean for the scaffolding of the existing applications? Do you need to change the guts of the way those apps work to make them work better with Celeste over time? Do your customers have to feel that at some point?
The, the very explicit design principle is no, to not rip it out, to not inflict that burden, and I think that's a huge advantage that we have. With the scaffolding they have, the application, the Celeste pane embeds in there, and it gives you all the benefits that Assist provides, in addition to the ability to now execute agents. As those agents develop, they will start to help users and administrators be able to take on more and more of sort of the rote, repetitive activities, so they can spend more time doing the judgment and sort of the higher value work there.
We really are trying to bring the best of all worlds, new Agentic Era, AI, standalone, but being able to embed it directly within the applications that they use every day and not have them go through the disruption of having to go rip and replace it.
I would also add, I really like this strategy for a trust reason. This design, when you see the product, the users and the firm leadership can see what it's doing in application environments and workflows that they are familiar with and they trust. I think this is a big issue in people flipping from the traditional paradigm to this text-based paradigm, is you're not quite sure what these systems are doing. I think this is a beautiful transition experience that we have the opportunity to bring out, where people know their systems, they know their workflows, they worked hard on laying all that out. They know exactly what the ins and outs are, and then they deploy Celeste agents, and they can see the Celeste agent taking over and doing work that a person used to do.
I mean, eventually, they won't need the UI at some point, but in this transition period, I think this is a huge step. It's just a really savvy design strategy that will help people start to deploy agents that they trust because they can see how it works inside the environment. I just love the transition part of this approach.
Matthew Kikkert with Stifel. Thanks for hosting us all today. Where do you see NRR maybe trending from current levels going forward, and how much might AI monetization play into that, going from now through those 2029 targets?
A couple things. Our NRR is already extremely healthy, given visibility on just kind of our net new logo land and then the expand opportunity we have. Suffice it to say, I do believe it will stay within those realms of the 120%. Is there a thesis that it could go north of that? Absolutely. That isn't something that we're specifically guiding to, other than we believe we'll get to that $1 billion of ARR by 2029, which doesn't include the full accelerant of the Celeste platform. That's incremental.
Okay, secondly, is there a metric that either you're tracking or that we should be tracking to judge the success of the AI? Excuse me.
We'll be transparent on the Celeste uptake, recognizing it's very limited today. There's some pilots going on. They've had a couple of key success stories. GA is right around the corner.
Okay, thank you.
Awesome. Thanks, everybody. Ryan Powderly on Saket Kalia's team at Barclays. Just a question around the on-premise customer base, the $100 million or so of ARR. I think we've talked about, like, a 20% or so uplift on conversion when you go from on-premise to the cloud. Just curious, you know, what could Celeste potentially add to that as more of those customers are converting? How does that sort of factor into the $1 billion by 2029 or FY29 ARR target? Thanks.
Again, Celeste is... That full platform is outside of the $1 billion of ARR, right? When you think about the on-prem going to cloud conversion, those are still on track. We're still seeing that 20%-30% uptake. I believe the pressure for that adoption will just accelerate. We've always talked about, hey, you know, where's the carrot and the stick, right? The carrot is, "Hey, please move," the stick being EOL. I think this is yet another carrot that's gonna help facilitate that transition, especially Walls, as a key one. We've already bifurcated clearly with our new Time product. Walls is another one, Intake, and you'll hear more later. It should only accelerate that plan.
The new capabilities announced all require the cloud solutions, and there are gonna be a lot of salivating clients when they see what is available if you make that transition.
Thanks. Jumping back in here. Dave, maybe just elaborating a little bit more about what's underpinning the 20% growth outlook. You're at 22% ARR growth today, so staying at kinda 20% for the next 3 years is pretty impressive. What does that embed from kind of a go-to-market productivity standpoint? Is it a lot of it just incremental hiring, or is there anything built in in terms of productivity gains? Is that an entirely organic outlook, or does it include any potential tuck-in type M&A?
No, that's primarily organic, just like as we've talked in the, in the past. For sure, we have opportunity on our productivity as we continue to densify some of those enterprise accounts. As I've explained or articulated at least earlier today, the lands keep getting bigger, the expands keep getting bigger. The rate of pace of our product innovation has been nothing less than phenomenal, even outside of just the Celeste announcement today. Even your prior release, I don't know how many additional attributes it had within DealCloud, but it's been quite expansive. You know, and again, that's coming off of, you know, the past two to three quarters of strong success that we've been able to kind of articulate where this is moving.
One more? No. No, no? Okay. Thanks, everyone. Really appreciate it. We'll be around in the room if you have any further questions for the next few minutes. david.morton@intapp.com, email me any, anytime if you have any needs until the quiet period we hit on March 15th. Thanks again for coming. Thanks for braving the elements for you guys here in the room, and thanks for everyone in the webcast for listening. Thank you all.
Thank you.