Company Performance - Appian reported break-even quarterly earnings per share, surpassing the Zacks Consensus Estimate of a loss of $0.13, and improved from a loss of $0.26 per share a year ago, resulting in an earnings surprise of +100.00% [1] - The company posted revenues of $170.64 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 6.15%, and compared to year-ago revenues of $146.45 million [2] - Over the last four quarters, Appian has consistently surpassed consensus EPS and revenue estimates [2] Stock Performance and Outlook - Appian shares have declined approximately 18.3% since the beginning of the year, contrasting with the S&P 500's gain of 7.9% [3] - The future performance of Appian's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $0.05 on revenues of $168.99 million, and for the current fiscal year, it is $0.22 on revenues of $678.76 million [7] Industry Context - The Internet - Software industry, to which Appian belongs, is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Appian's stock performance [5]

Q2 2025 Financial Highlights - Cloud subscriptions revenue reached $1069 million, a 21% year-over-year increase[10] - Total revenue was $1706 million, up 17% year-over-year[10] - Subscriptions revenue totaled $1327 million, reflecting a 17% year-over-year growth[10] - Adjusted EBITDA for Q2 2025 was $81 million[7] Margins - Subscriptions gross margin was 87%[10] - Professional services gross margin was 33%[10] - Overall gross margin was 75%[10] Revenue Retention - Cloud subscriptions revenue retention rate stood at 111% as of June 30, 2025[8,33] Guidance - Q3 2025 cloud subscriptions revenue is projected to be between $1090 million and $1110 million, representing a 16%-18% year-over-year growth[34] - Full year 2025 cloud subscriptions revenue is expected to range from $4290 million to $4330 million, indicating a 17%-18% year-over-year increase[34] - Full year 2025 total revenue is forecasted to be between $6950 million and $7030 million, a 13%-14% year-over-year increase[34]

Revenue Growth - Cloud subscriptions revenue increased 21% year-over-year to $106.9 million[4] - Total revenue rose 17% year-over-year to $170.6 million[4] - Professional services revenue was $38.0 million, up 13% compared to the second quarter of 2024[4] - Subscription revenue increased to $132.66 million in Q2 2025, up 17.4% from $112.97 million in Q2 2024[19] - Total revenue for Q2 2025 reached $170.64 million, a 16.5% increase from $146.45 million in Q2 2024[19] - Full Year 2025 guidance for total revenue is expected to be between $695.0 million and $703.0 million, representing a year-over-year increase of 13% to 14%[8] - Third Quarter 2025 guidance for cloud subscriptions revenue is expected to be between $109.0 million and $111.0 million, representing year-over-year growth of 16% to 18%[8] Profitability and Loss - GAAP operating loss improved to $(11.0) million from $(39.2) million in the second quarter of 2024[4] - Non-GAAP operating income was $5.6 million, compared to a loss of $(13.1) million in the same period last year[4] - Adjusted EBITDA was $8.1 million, compared to a loss of $(10.5) million for the second quarter of 2024[4] - Operating loss for Q2 2025 was $10.98 million, an improvement from a loss of $39.19 million in Q2 2024[19] - Net loss for the first half of 2025 was $1.49 million, significantly reduced from a loss of $76.52 million in the first half of 2024[19] - The net loss for the six months ended June 30, 2025, was $1,489 million, compared to a net loss of $76,515 million for the same period in 2024, indicating a significant improvement[27] - The operating loss for the six months ended June 30, 2025, was $11,818 million, which is an improvement from the operating loss of $58,729 million in the same period of 2024[26] - The net loss per share, basic and diluted, for the six months ended June 30, 2025, was $(0.02), compared to $(1.05) for the same period in 2024[26] Cash and Assets - Cash and cash equivalents at the end of Q2 2025 were $112.21 million, down from $118.55 million at the end of 2024[23] - Total assets decreased to $590.75 million as of June 30, 2025, from $621.04 million at the end of 2024[17] - Total liabilities were $644.49 million as of June 30, 2025, slightly down from $653.68 million at the end of 2024[17] - Stockholders' deficit increased to $53.74 million as of June 30, 2025, compared to $32.64 million at the end of 2024[17] Cost Management - Total operating expenses for the three months ended June 30, 2025, were $137,703 million, a decrease of 6.63% from the previous period[25] - The total cost of revenue for the six months ended June 30, 2025, was $82,839 million, a decrease of 3.87% from the previous year[25] - For the three months ended June 30, 2025, the total cost of revenue was $43,921 million, a decrease of 3.43% from the previous period[25] - The subscriptions cost of revenue for the six months ended June 30, 2025, was $32,048 million, reflecting a decrease of 1.38% from the previous year[25] - The professional services cost of revenue for the three months ended June 30, 2025, was $26,767 million, down from $28,122 million in the previous period, a decrease of 4.83%[25] Recognition and Awards - Appian was recognized as a Leader in the 2025 Gartner® Magic Quadrant™ for Enterprise Low-Code Application Platforms[3]

Core Insights - Appian's second quarter cloud subscriptions revenue increased by 21% year-over-year to $106.9 million, while total revenue rose by 17% year-over-year to $170.6 million, driven by Appian AI and a larger pipeline [1][5]. Financial Highlights - Cloud subscriptions revenue for Q2 2025 was $106.9 million, a 21% increase from Q2 2024 [5]. - Total subscriptions revenue, including cloud and on-premises licenses, grew 17% year-over-year to $132.7 million [5]. - Professional services revenue reached $38.0 million, up 13% compared to Q2 2024 [5]. - The cloud subscriptions revenue retention rate was 111% as of June 30, 2025 [5]. - GAAP operating loss was $(11.0) million, significantly improved from $(39.2) million in Q2 2024 [5]. - Non-GAAP operating income was $5.6 million, compared to a loss of $(13.1) million in the same quarter last year [5]. - GAAP net loss was $(0.3) million, a substantial improvement from $(43.6) million in Q2 2024, with net loss per share breakeven compared to $(0.60) [5]. - Adjusted EBITDA for Q2 2025 was $8.1 million, compared to a loss of $(10.5) million in Q2 2024 [5]. Financial Outlook - For the full year 2025, cloud subscriptions revenue is expected to be between $429.0 million and $433.0 million, indicating a year-over-year growth of 17% to 18% [4]. - Third quarter 2025 guidance estimates cloud subscriptions revenue between $109.0 million and $111.0 million, representing a growth of 16% to 18% [4]. - Total revenue for Q3 2025 is projected to be between $172.0 million and $176.0 million, reflecting a year-over-year increase of 12% to 14% [4]. - Adjusted EBITDA for Q3 2025 is expected to range from $9.0 million to $12.0 million [4]. Business Recognition - Appian was recognized as a leader in the 2025 Gartner Magic Quadrant for Enterprise Low-Code Application Platforms [5]. - The company was also acknowledged by Chartis for AI-Powered Process Orchestration and included in the 2025 AIFinTech100 List for transforming financial services with AI [5].

Core Insights - Appian has been recognized as a Leader in the Gartner® Magic Quadrant™ for Enterprise Low-Code Application Platforms (LCAP) for the third consecutive year, highlighting its strong position in the market [1][2][5] - The recognition reflects Appian's capability to unify complex business processes on a single platform, leveraging AI and low-code technology for enhanced control and visibility [1][5] Company Overview - Appian is positioned as a leading platform for AI process automation, focusing on delivering solutions that improve business processes, reduce costs, and enhance customer experiences [10] - The company serves many of the world's largest organizations across various industries, emphasizing its commitment to client success [10] Industry Context - Low-code application platforms (LCAPs) enable organizations to quickly develop and deploy custom applications, replacing traditional coding with visual interfaces and reusable components [3] - Enterprise LCAPs are designed for midsize and large organizations, providing the necessary power for mission-critical systems while ensuring security, scalability, and performance [4] Customer Recognition - Earlier in 2025, Appian was also named a Customers' Choice in the Gartner® Peer Insights Voice of the Customer for Enterprise LCAP, achieving a 99% willingness to recommend score based on 52 reviews [6]

Core Insights - Appian has been recognized in three new reports from Chartis Research, emphasizing its role in modernizing risk management, compliance, and onboarding in financial services through AI and process orchestration [1][3][4] Group 1: Recognition and Awards - Appian was included in the Chartis RiskTech AI 50 2025 list of leading global AI vendors and received a Category Award for AI-driven Process Control and Process Mining, showcasing its strong AI strategy and capabilities [4] - The Chartis FCC50 2025 report highlights Appian's recognition as a top vendor addressing financial crime and compliance, with a Category Award for "Platforms – Solution Agnostic Platform" [6] Group 2: Technology and Solutions - Appian's platform automates regulatory change management, integrates with external data sources, and employs AI for real-time fraud detection, enhancing compliance and fraud management for financial institutions [7] - The Appian Platform is recognized for its strength in corporate and investment banking, particularly in client onboarding, KYC, and AML screening, demonstrating its leadership in process orchestration [8][9] Group 3: Market Position and Strategy - Appian combines strong process orchestration with a low-code platform, establishing itself as a category leader in the corporate and investment banking client lifecycle management market [9] - The company's cloud-first architecture supports rapid deployment and is appealing to firms with legacy systems, reinforcing its position in the wealth management marketplace [9]

Core Insights - Appian has appointed David Crozier as Chief Marketing Officer, effective July 21, 2025, reporting to CEO Matt Calkins [1] - Crozier has over 20 years of marketing experience, previously serving as Vice President of Marketing at Hewlett Packard Enterprise (HPE) [2] - His experience includes leading global marketing for HPE Services and HPE GreenLake, focusing on cloud and AI solutions [2] - Crozier has held various marketing leadership roles at IBM, covering enterprise software and financial services [3] - He holds a B.A. in Marketing from the University of Stirling and an MBA from Henley Business School [3] Company Overview - Appian is known as The Process Company, providing a software platform that enhances organizational processes, reduces costs, and improves customer experiences [4] - The company serves many of the world's largest companies across various industries, emphasizing client success [4]

Market Overview - The S&P 500 is experiencing a pullback from all-time highs due to macroeconomic concerns, particularly related to tariffs and the global trade war initiated by President Trump [1] Analyst Background - Gary Alexander has extensive experience covering technology companies on Wall Street and working in Silicon Valley, providing insights into current industry themes [1] - He has been a contributor on Seeking Alpha since 2017 and has been quoted in various web publications, with his articles syndicated to popular trading apps like Robinhood [1]

Group 1 - Appian will release its financial results for Q2 2025 on August 7, 2025, before U.S. markets open [1] - A conference call to discuss the financial results and business outlook will take place at 8:30 a.m. Eastern Time [2] - The conference call will be accessible via a registration link and will also be available as a live webcast on the company's Investor Relations page [2] Group 2 - Appian is positioned as "The Process Company," providing a software platform that enhances organizational processes, reduces costs, and improves customer experiences [3] - The company serves many of the world's largest companies across various industries, emphasizing its commitment to client success [3]

Core Insights - Appian is expanding its sales leadership team to enhance its market presence and drive growth in the UK, Europe, the Middle East, and Africa (EMEA) [1] - The new appointments include Vicky Nesbit as SVP of Sales UK and EMEA, Vincent Perrin as VP of EMEA North, and Rob Cook as VP of EMEA North for Broad Markets and Public Sector [1][2][3][4] - The strategic hires are aimed at leveraging their extensive experience to innovate and deploy AI and process orchestration for organizational success [2] Company Overview - Appian has been providing a software platform for over 25 years, helping organizations improve processes, reduce costs, and enhance customer experiences [5][6] - The company serves many of the world's largest companies across various industries, emphasizing its commitment to client success [6]