Question-and-Answer SessionMaybe for those who might be a little bit newer to Appian, can you just give a little background on the company and what is it that Appian does?Srdjan TanjgaChief Financial Officer Excellent. It's no better place to start. So Appian is a platform that allows customers to automate and orchestrate their most important enterprise processes. So that's a mouthful. So maybe the best way to explain that is through a few examples. So for example, one of our largest customers is a global p ...

Appian (APPN) 2025 Conference September 03, 2025 12:50 PM ET Company ParticipantsSerge Tanjga - CFOConference Call ParticipantsSteve Enders - Equity Research AnalystSteve EndersAlright. Awesome. Well, thanks everybody for for being here today. Welcome back from from lunch. Day one of the Citi's Global TMT Conference.I'm Steve Enders, part of the software research team here at Citi. And with us for this session, have Serge from from Appian. Serge, thank you so much for being here.Serge TanjgaSteve, thanks fo ...

Core Insights - MagMutual has successfully transformed its operations by utilizing Appian's AI-powered platform, enhancing efficiency and customer experience in the medical malpractice insurance sector [1][2][8] Operational Improvements - The implementation of Appian's platform has significantly reduced policy migration time from three years to one year, allowing for faster acquisitions and minimizing service disruptions [7] - MagMutual built a self-service quoting portal that enables customers to receive quotes instantly, reducing a previously weeks-long process to mere minutes [5][6] Financial Impact - The new digital self-service quoting portal generated over $1 million in new revenue shortly after its launch, demonstrating rapid financial benefits without the need for advertising [4][5] - The insurer estimates that the new processes will lead to a 20% annual revenue growth [5] Technology Integration - Appian's solution replaced three legacy tools and integrated data from Salesforce, Oasis, and MagMutual's internal systems, streamlining workflows and enhancing operational visibility [6] - The use of Appian Process HQ allows for the identification of process bottlenecks and drives continuous improvement through AI [6]

Core Insights - Appian has appointed Scott Van Valkenburgh as Senior Vice President, Global Partnerships & Alliances, to enhance its partnership strategy and expand its market presence [1][4]. Company Overview - Appian is recognized as a leading platform for AI process automation, focusing on improving organizational processes to reduce costs and enhance customer experiences [5]. Leadership Experience - Van Valkenburgh brings over 25 years of experience in driving revenue growth and market expansion, having previously held roles as a Global Alliances & Channels executive and a Big 4 Consulting Principal [2][3]. - He has successfully built and managed revenue streams exceeding one billion dollars through strategic alliances at companies like SAS, Genpact, and Alteryx [3]. Strategic Goals - Van Valkenburgh's leadership is expected to be crucial as Appian invests in expanding its partner ecosystem, which includes system integrators, technology partners, and channel alliances [4]. - The goal is to accelerate the adoption of Appian's AI-powered process automation platform across various industries [4].

Core Insights - Appian has been recognized as a Leader in the IDC MarketScape Worldwide Business Automation Platforms 2025 Vendor Assessment, highlighting its strong position in the market for AI process automation [1][3] - The company has integrated AI into its business processes for years, enhancing speed, intelligence, and adaptability [1][2] AI Capabilities - Appian supports the development of AI agents and provides a copilot feature for user interaction with large language models (LLMs), showcasing its commitment to AI integration [2][3] - Recent innovations include Agent Studio for managing AI agents, AI Document Center for intelligent document processing, and Smart Search for semantic search capabilities across unified data [2][3] Business Impact - The integration of AI within core business processes is emphasized as a key strength, enabling organizations to optimize operations and scale AI benefits responsibly [3] - Appian's platform allows organizations to transform critical business processes, achieving greater agility and measurable business impact [3][4] Industry Insights - An IDC InfoBrief sponsored by Appian reveals how various industries, including banking, insurance, government, and life sciences, are leveraging AI and outlines their future AI plans and challenges [4]

Core Insights - Appian announced enhancements to its AI process automation platform, focusing on faster insights, greater scalability, and more secure AI access [1][3][10] Group 1: AI Enhancements - The latest release includes AI-powered semantic smart search that delivers results based on user intent rather than just keywords, improving query support and intelligent actions [4] - All Appian AI features are now available for self-managed and FedRAMP environments, ensuring secure access for all customers, including those in the public sector [5][10] Group 2: Data Fabric and Performance - Appian's data fabric now features automatic scaling to support high throughput query workloads, optimizing performance without manual intervention [7] - New asynchronous interface loading enhances application responsiveness by loading slower data in the background, improving user interaction with complex applications [8] Group 3: Reporting and Insights - The latest enhancements to Process HQ allow users to embed reports and dashboards directly into Appian Sites, facilitating easier sharing of insights [9] - Configurable drilldown reports enable users to explore enterprise data from multiple perspectives, providing deeper insights with a single click [9] Group 4: Strategic Focus - Appian emphasizes the integration of AI into core business processes, aiming to improve operational efficiency and customer service while maintaining governance and accountability [10][11]

Group 1 - Investors are losing interest and patience in small and mid-cap stocks despite some delivering strong results in a shaky macroeconomy [1] - The Q2 earnings season is highlighting this trend among investors [1] - The article references the author's extensive experience in technology and startup sectors, indicating a knowledgeable perspective on current industry themes [1]

Summary of Appian's Conference Call Company Overview - **Company**: Appian - **Industry**: Software, specifically focused on process automation and optimization - **Core Offering**: A platform that allows customers to design, automate, and optimize complex mission-critical processes across organizations [3][4] Key Points and Arguments - **Customer Use Cases**: - Appian is utilized by a major asset manager for customer onboarding and management, consolidating fragmented processes into a single application [4] - A large financial institution uses Appian for monitoring corporate customer communications for regulatory compliance [4] - Medical device companies leverage Appian for the lifecycle management of equipment from order to installation [5] - A U.S. city employs Appian for a digitized budgeting process, reducing response times by over 50% [6] - **AI Integration**: - AI enhances automation and process improvement, presenting significant incremental opportunities for Appian [9] - The company is seeing a steady increase in AI demand, with 50% of new customers opting for advanced pricing tiers that include AI features [21][25] - **Pricing Model**: - Appian employs various pricing models, primarily per seat and per app, with flexibility to adapt to customer needs [10] - The company has been successfully raising prices, reflecting the value delivered to customers, especially in the context of AI [11] - **Recent Financial Performance**: - In Q2, cloud subscription revenue grew by 21% (18% on a constant currency basis), with total revenue growth at 17% [16][17] - EBITDA margin reached 5%, exceeding guidance, attributed to strong new business and strategic focus on the enterprise segment [18][19] - **Go-to-Market Strategy**: - Appian has shifted focus to the enterprise segment, resulting in larger deal sizes and improved execution [19][23] - The company emphasizes clear communication of value to customers and has instituted a more disciplined sales process [24] - **Federal Sector Insights**: - Appian's federal business has outpaced overall growth, with expectations for continued success as the government modernizes and eliminates legacy systems [39][42] - The company anticipates more direct engagement with government entities, enhancing opportunities for software revenue [44] - **Competitive Landscape**: - Appian competes with both tech conglomerates and pure-play automation companies, maintaining steady win rates against larger competitors [47][48] - The company’s strengths include breadth of offering and quick time to value, which are critical in complex automation scenarios [50] - **Operational Efficiency and Margin Expansion**: - Appian has improved profitability, achieving close to 20 percentage points of EBITDA margin expansion over two years by eliminating low productivity areas [57] - Future focus areas include enhancing go-to-market efficiencies, R&D productivity, and leveraging AI for internal processes [60][61] Additional Important Insights - **Sales Cycle and Budgeting**: - Sales cycles remain long but stable, with no significant changes observed [54] - AI funding is not detracting from operational budgets, indicating a healthy environment for investment in new technologies [55] - **Partnership Ecosystem**: - Appian is deepening its partnership program, focusing on partners willing to invest in mutual success, which is expected to enhance market presence [51][52] This summary encapsulates the key insights from Appian's conference call, highlighting the company's strategic direction, financial performance, and market positioning.

Core Viewpoint - Appian Capital Advisory Limited has decided to withdraw its proposed senior secured loan and royalty financing facility with Pacific Lime and Cement Limited for the Central Lime Project in Papua New Guinea due to PLC's inability to secure a key offtake agreement [1][2][3] Group 1: Company Actions - Appian's withdrawal is a response to PLC's failure to meet a critical condition precedent outlined in the financing agreement from April 2024, specifically the securing of an offtake agreement before making its Final Investment Decision [2] - The decision not to draw from the senior facility further influenced Appian's conclusion that advancing the deal was not in the best interests of its investors [3] Group 2: Company Background - Appian Capital Advisory Limited specializes in long-term value-focused private capital funds that invest in metals, mining, and adjacent industries [1][4] - The company has a global presence with a team of 88 experienced investment professionals and oversees approximately 5,000 employees across various regions including South America, North America, Australia, and Africa [5][6]

Appian (APPN) reported $170.64 million in revenue for the quarter ended June 2025, representing a year-over- year increase of 16.5%. EPS of $0 for the same period compares to -$0.26 a year ago. The reported revenue represents a surprise of +6.15% over the Zacks Consensus Estimate of $160.76 million. With the consensus EPS estimate being -$0.13, the EPS surprise was +100%. Here is how Appian performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street anal ...