Revenue Performance - Cloud subscription revenue for Q1 2023 was $69.7 million, representing a 30.6% increase from $53.4 million in Q1 2022[132]. - Revenue from government agencies accounted for 20.5% of total revenue in Q1 2023, up from 18.1% in Q1 2022[123]. - For Q1 2023, 73.2% of total revenue was derived from subscription sales, while 26.8% came from professional services[130]. - Total revenue increased by $21.0 million, or 18.4%, to $135.2 million for the three months ended March 31, 2023, compared to $114.3 million for the same period in 2022[157]. - Subscription revenue rose by $15.2 million, or 18.2%, driven by a $16.3 million increase in cloud subscription revenue[157]. - Professional services revenue increased by $5.7 million, or 18.8%, primarily due to a $6.4 million increase in sales to new customers[158]. Cost and Expenses - Total cost of revenue increased by $5.2 million, or 16.7%, to $36.1 million, with subscriptions cost rising by 27.3%[159]. - Sales and marketing expenses increased by $17.2 million, or 37.4%, to $63.1 million, primarily due to a 29.0% increase in sales and marketing personnel headcount[161]. - Research and development expenses rose to $41.6 million, reflecting ongoing investments in enhancing the software platform[146]. - General and administrative expenses are expected to decrease in 2023 due to anticipated declines in legal costs[147]. - General and administrative expense decreased by $1.8 million, or 5.6%, to $29.7 million for the three months ended March 31, 2023, compared to $31.5 million in the same period in 2022[164]. Profitability and Loss - Gross profit margin improved slightly to 73.3% for the three months ended March 31, 2023, compared to 72.9% in the same period in 2022[160]. - Net loss for the three months ended March 31, 2023, was $36.8 million, compared to a net loss of $23.2 million for the same period in 2022[152]. - Non-GAAP net loss for the three months ended March 31, 2023, was $19.7 million, compared to a non-GAAP net loss of $4.4 million in the same period in 2022[174]. Cash Flow and Liquidity - Cash and cash equivalents as of March 31, 2023, were $198.7 million, up from $148.1 million as of December 31, 2022[183]. - Short-term investments and marketable securities increased to $55.8 million as of March 31, 2023, from $47.9 million as of December 31, 2022[183]. - The company had working capital of $145.5 million as of March 31, 2023, compared to $150.0 million as of December 31, 2022[183]. - Net cash used by operating activities was $25.3 million for the three months ended March 31, 2023, compared to $20.6 million for the same period in 2022, primarily due to a $13.7 million increase in net losses[195]. - Net cash provided by financing activities was $88.1 million for the three months ended March 31, 2023, an increase from $24.4 million in the same period in 2022, mainly due to a $92.0 million increase in proceeds from borrowings[197]. Strategic Initiatives - The business model focuses on maximizing customer lifetime value, with significant investments in customer acquisition and sales team expansion[125]. - The company plans to continue investing in its platform and infrastructure to support long-term growth and may pursue strategic acquisitions[131]. - The company targets organizations with over 2,000 employees and $2 billion in annual revenue for its sales efforts[123]. - The company has established partnerships with firms like KPMG, Accenture, and Deloitte to enhance customer coverage and solution delivery capabilities[122]. Debt and Financial Commitments - As of March 31, 2023, the company had outstanding debt of $210.6 million, with a potential increase in interest expense of approximately $2.1 million annually for a hypothetical 100 basis point increase in interest rates[204]. - The company entered into a Senior Secured Credit Facilities Credit Agreement in 2022, providing a five-year term loan facility of $120.0 million and a revolving credit facility of up to $60.0 million[185]. - The company has a minimum purchase commitment of $131.0 million over five years with Amazon Web Services, with $9.4 million spent in the three months ended March 31, 2023[190]. Market Conditions - The company is closely monitoring liquidity and market conditions following the receivership of Silicon Valley Bank, but does not expect a material impact on operations[191][192]. - A 10% change in foreign currency exchange rates would have impacted total revenue by approximately 3% and operating loss by approximately 1% for the three months ended March 31, 2023[206].

Appian Corp (NASDAQ:APPN) Q4 2022 Earnings Conference Call February 16, 2023 4:30 PM ET Company Participants Srinivas Anantha - Senior Director, Finance & IR Matthew Calkins - Founder, Chairman, CEO & President Mark Matheos - CFO Conference Call Participants Sanjit Singh - Morgan Stanley Kevin Kumar - Goldman Sachs Group Andrew Sherman - Cowen and Company Steven Koenig - SMBC Nikko Securities Jacob Roberge - William Blair & Company Andrew DeGasperi - Berenberg Frederick Havemeyer - Macquarie Research Joseph ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38098 APPIAN CORPORATION (Exact Name of Registrant as Specified in its Charter) Delaware 54-1956084 (State or other jurisdiction of in ...

Financial Data and Key Metrics Changes - In Q2 2022, Appian's cloud subscription revenue grew 34% year-over-year to $57.1 million, while total revenue increased 33% to $110.1 million [6][19] - Subscription revenue was $76.7 million, reflecting a 35% year-over-year growth [7][19] - Adjusted EBITDA loss was $25 million, compared to a loss of $16.3 million in the same period last year [23][24] - Non-GAAP net loss was $33.4 million, or $0.46 per share, compared to a loss of $16.9 million, or $0.24 per share, in Q2 2021 [24] Business Line Data and Key Metrics Changes - Professional services revenue was $33.4 million, an increase of 28% year-over-year, driven by strong performance in the U.S. public sector, U.S. commercial, and APAC [19][20] - Subscriptions revenue accounted for 70% of total revenue, compared to 69% in the prior year [21] Market Data and Key Metrics Changes - International operations contributed 35% of total revenue, consistent with the previous year, with growth driven by APAC and EMEA regions [21] - Cloud software net new ACV bookings were approximately 80% of total net new software bookings in the first half of 2022 [21] Company Strategy and Development Direction - Appian is focusing on the convergence of low-code markets, integrating process mining, workflow, and automation into a unified platform [7][8] - The company plans to continue hiring, opening new offices, and acquiring new customers even in a potential downturn [9] - Appian launched new solutions, including Appian Portals and enhancements to its government acquisition management program suite, to broaden its appeal [11][13] Management's Comments on Operating Environment and Future Outlook - Management expressed a bearish outlook on the economy but noted that Appian is not currently experiencing any downturn symptoms [8][9] - The company aims to grow cautiously through economic uncertainty, leveraging its strong customer retention and value proposition [9][35] - Management emphasized the importance of efficiency and optimization in their messaging to customers, especially in a challenging economic environment [9][40] Other Important Information - Appian opened a new product development center in Chennai, India, to enhance operational efficiency and expand its product team [17] - The company welcomed a new Chief Revenue Officer, Chris Jones, to strengthen its sales organization [17] Q&A Session Summary Question: Can you provide context on the guidance and assumptions for Q3 and Q4? - Management indicated that guidance reflects economic uncertainty and includes FX considerations, with no significant changes in sales cycles observed [31][32] Question: What trends are seen in core verticals and exposure to SMB customers? - Management noted a low churn rate of 99% and attributed it to the appeal of their value proposition, with no significant exposure to SMBs or startups [35][36] Question: Can you discuss the opportunity for international government entities? - Management highlighted the growth potential in international public sector deals and the importance of partners in securing these opportunities [38] Question: Has the IL-5 certification led to new business? - Management acknowledged the certification's significance but noted that it has not yet resulted in new business due to long public sector sales cycles [43] Question: How is the strength of new products like Portals impacting customer awareness? - Management stated that new products are broadening user engagement and raising awareness of the Appian platform [48] Question: What is the outlook for profitability amidst economic uncertainty? - Management emphasized a cautious growth strategy, focusing on prudent investments that align with long-term revenue growth [58] Question: How is the mix of pricing options evolving? - Management indicated that the unlimited pricing option remains a minority choice, with most customers preferring flexible pricing models [60]

Appian Corporation (NASDAQ:APPN) Q1 2022 Earnings Conference Call May 5, 2022 4:30 PM ET Company Participants Sri Anantha – Director of Investor Relations Matt Calkins – Chairman and Chief Executive Officer Mark Matheos - Chief Financial Officer Mark Lynch – Former, Chief Financial Officer Conference Call Participants Kevin Kumar - Goldman Sachs Jake Roberge - William Blair Joe Meares - Truist Vinod Srinivasaraghavan - Barclays Operator Greetings, and welcome to the Appian Corporation First Quarter 2022 Ear ...