Appian(APPN) - 2025 Q4 - Annual Report

Financial Performance - The number of customers paying over $1 million in annual recurring revenue increased from 115 at the end of 2024 to 140 at the end of 2025[34] - As of December 31, 2025, the company had cash and cash equivalents of $135.8 million and held $51.4 million in fixed income securities[285][286] - Outstanding principal debt as of December 31, 2025, was $240.8 million, with a potential increase in interest expense of approximately $2.4 million annually for a 1% rise in interest rates[287] - The company recognizes revenue from cloud subscriptions ratably over the term of the subscription agreement, affecting near-term sales visibility[48] Intellectual Property - The company has 28 granted patents and 21 patents pending, with none expiring before 2034[39] - The company emphasizes the importance of maintaining and enhancing its intellectual property rights to protect its core technology[38] Market Strategy - The company targets organizations with over 2,000 employees and $2 billion in annual revenue, refining its customer definition in 2025[33] - The company faces competition from custom software providers, development platforms, and automation technology vendors[35] Operational Risks - The company relies on AWS for its cloud offering, and any disruption could adversely affect its business[49] - The company is exposed to inflation risks related to personnel costs and third-party services, which may impact future profitability[288] - Future inflation may adversely affect the company's ability to maintain operating costs and gross profit margin[290] Foreign Currency Risks - The company faces foreign currency exchange risks due to international operations, primarily with the British pound, Euro, Australian dollar, and Swiss franc[291] - A 10% change in foreign currency exchange rates could impact total revenue by approximately $25.0 million and net income by approximately $3.7 million for the year ended December 31, 2025[291] - The company has experienced fluctuations in net income due to transaction gains or losses from remeasuring certain asset and liability balances in foreign currencies[292] - The company has not engaged in hedging foreign currency transactions to date but may consider it in the future[292]