Fourth quarter cloud subscription revenue increased 19% year-over-year to $98.9 millionFull year cloud subscription revenue increased 21% year-over year to $368.0 million MCLEAN, Va., Feb. 19, 2025 (GLOBE NEWSWIRE) -- Appian (Nasdaq: APPN) today announced financial results for the fourth quarter and full year ended December 31, 2024. “In 2024, Appian demonstrated its ability to grow with increasing efficiency. We specialize in creating value with AI, by deploying it in a process. While others bring work to ...

Appian Corporation (NASDAQ:APPN) Q3 2024 Earnings Call Transcript November 7, 2024 8:30 AM ET Company Participants Jack Andrews - Investor Relations Matt Calkins - Founder and CEO Mark Matheos - Chief Financial Officer Conference Call Participants Keith Weiss - Morgan Stanley Derrick Wood - TD Cowen Raimo Lenschow - Barclays Steve Enders - Citi Jake Roberge - William Blair Operator Hello. And welcome to the Appian Third Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-on ...

Revenue Performance - Cloud subscriptions revenue for the three months ended September 30, 2024, was $94,075,000, representing a 21.8% increase compared to $77,247,000 in the same period of 2023[120]. - For the nine months ended September 30, 2024, cloud subscriptions revenue reached $269,106,000, up 21.6% from $221,381,000 in 2023[120]. - Total revenue for the three months ended September 30, 2024, increased by $16.96 million, or 12.4%, to $154.05 million compared to $137.09 million in the same period in 2023, driven primarily by an increase in subscriptions revenue of $19.32 million[141]. - Total revenue increased by $50.3 million, or 12.6%, to $450.3 million for the nine months ended September 30, 2024, driven by a $57.2 million increase in subscriptions revenue[153]. - Subscriptions revenue reached $123.12 million, representing an 18.6% increase from $103.80 million in the same period last year, with a $16.8 million increase in cloud subscription revenue[141]. - Subscriptions revenue increased by $57.2 million, or 19.3%, to $353.8 million for the nine months ended September 30, 2024, while professional services revenue decreased by $6.9 million[153]. Customer Metrics - The cloud subscriptions revenue retention rate remained stable at 117% for both September 30, 2024, and 2023, indicating strong customer loyalty and expansion[121]. - For the three months ended September 30, 2024, 79.9% of total revenue was derived from subscriptions, compared to 75.7% in the same period of 2023[118]. - Revenue from U.S. federal government agencies accounted for 23.2% of total revenue for the three months ended September 30, 2024, compared to 21.1% in the same period of 2023[112]. - As of September 30, 2024, 36.3% of total revenue was generated from customers outside the United States, up from 35.3% in the same period of 2023[113]. Operating Expenses - Operating expenses are expected to increase in absolute dollars as the company invests in growing its teams, albeit at a more measured rate than prior years[130]. - Sales and marketing expenses decreased by $4.80 million, or 8.6%, to $50.87 million, primarily due to a 21% reduction in sales and marketing headcount[145]. - Research and development expenses increased to $38.57 million for the three months ended September 30, 2024, compared to $37.14 million in the same period in 2023, reflecting ongoing investment in platform enhancement[138]. - General and administrative expenses rose to $34.69 million, up from $23.44 million in the same period last year, largely due to increased costs associated with IT investments[135]. - General and administrative expense rose by $11.2 million, or 48.0%, to $34.7 million for the three months ended September 30, 2024, primarily due to a $7.7 million increase in professional fees[148]. Profitability and Loss - The company reported a net loss of $2.10 million for the three months ended September 30, 2024, an improvement from a net loss of $22.25 million in the same period in 2023[138]. - The company reported a net loss of $78.6 million for the nine months ended September 30, 2024, compared to a net loss of $25.4 million in 2023[170]. - Basic and diluted net loss per share for the nine months ended September 30, 2024, was $(1.08), compared to $(0.35) in the same period of 2023[170]. - Adjusted EBITDA is defined as net loss before other expenses, interest expense, income tax expense, depreciation, and other specified costs, providing a clearer view of operational performance[168]. Cash Flow and Investments - Cash and cash equivalents decreased to $99,193,000 as of September 30, 2024, down 24.1% from $130,761,000 as of September 30, 2023[186]. - Net cash used by operating activities was $6,993,000 for the nine months ended September 30, 2024, a significant decrease from $102,198,000 used in the same period of 2023, reflecting improved cash collections[187]. - Net cash used by investing activities was $34.3 million for the nine months ended September 30, 2024, compared to $0.9 million in net cash provided for the same period in 2023, primarily due to a $51.0 million decline in proceeds from the sale of investments[188]. - Net cash used by financing activities was $8.5 million for the nine months ended September 30, 2024, a significant decrease from $82.4 million of net cash provided in the same period in 2023, driven by a $50.0 million increase in common stock repurchases[188]. - The company has utilized $62,000,000 of its $100,000,000 revolving credit facility as of September 30, 2024, indicating active management of its capital resources[179]. Strategic Initiatives - The company plans to continue investing in its platform and infrastructure to maximize growth and meet evolving customer needs[119]. - The company plans to continue investing in sales and marketing to expand its geographical footprint and brand awareness, expecting an increase in sales and marketing expenses in absolute dollars[132]. - The company has established strategic partnerships with firms like Accenture and Deloitte to enhance customer acquisition and service delivery[110]. - The company entered into a share repurchase program in February 2024, repurchasing approximately 1.3 million shares for about $50,000,000 during the first quarter[183]. Market and Economic Risks - The company is exposed to inflation risks related to personnel costs and general overhead expenses, which may adversely affect gross profit margins if inflation pressures increase[195]. - The company is exposed to market risks primarily due to fluctuations in interest rates and foreign currency exchange rates[192]. - A 10% change in foreign currency exchange rates for the nine months ended September 30, 2024, would have impacted total revenue by approximately 4% and operating loss by approximately 6%[196]. - The company has not engaged in hedging of foreign currency transactions to date, although it may consider doing so in the future[197].

| --- | --- | --- | --- | --- | --- | --- | --- | --- | |---------------------------------------|-------|-------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Q3 2024 Earnings Call Presentation | | | | | | | | | | Matt Calkins, Founder & CEO | | | | | | | | | | Mark Matheos, CFO | | | | | | | | | | | | | | | | | | | Disclaimer In this presentation, we may make statements related to our business that are ...

Revenue Performance - Cloud subscription revenue increased 22% year-over-year to $94.1 million in Q3 2024[3] - Total revenue for Q3 2024 was $154.1 million, up 12% compared to Q3 2023[3] - Full year 2024 cloud subscription revenue is expected to be between $364.0 million and $366.0 million, representing year-over-year growth of 20%[8] - Total revenue for full year 2024 is expected to be between $613.0 million and $615.0 million, representing a year-over-year increase of 12% to 13%[8] - Fourth quarter 2024 cloud subscription revenue is expected to be between $95.0 million and $97.0 million, representing year-over-year growth of 14% to 17%[6] - Total revenue for the three months ended September 30, 2024, was $154,052,000, a 12.9% increase from $137,094,000 in the same period of 2023[20] - Subscription revenue increased to $123,121,000, up 18.5% from $103,803,000 year-over-year[20] Profitability Metrics - Non-GAAP net income for Q3 2024 was $11.4 million, compared to a non-GAAP net loss of $(14.6) million in Q3 2023[4] - Adjusted EBITDA for Q3 2024 was $10.8 million, compared to an adjusted EBITDA loss of $(5.3) million in Q3 2023[4] - Operating loss narrowed to $(7,157,000) for the three months ended September 30, 2024, compared to $(15,217,000) in the same quarter of 2023[20] - The adjusted EBITDA for the three months ended September 30, 2024, was $10,848, a significant improvement from an adjusted EBITDA of $(5,342) in the same period last year[25] - The total operating loss for the nine months ended September 30, 2024, was $(52,918), compared to $(91,145) in the previous year, indicating an improvement of approximately 42%[24] - The net loss for the nine months ended September 30, 2024, was $(25,352), compared to $(101,435) in the previous year, showing a significant improvement of approximately 75%[24] Cash and Assets - Cash and cash equivalents decreased to $99,193,000 as of September 30, 2024, down from $149,351,000 at the end of 2023[19] - Total assets decreased to $549,913,000 as of September 30, 2024, from $627,503,000 at the end of 2023[19] - Long-term debt increased significantly to $243,225,000 as of September 30, 2024, compared to $140,221,000 at the end of 2023[19] - Total stockholders' equity showed a deficit of $(49,801,000) as of September 30, 2024, compared to a positive equity of $52,341,000 at the end of 2023[19] Cost Management - For the three months ended September 30, 2024, the total cost of revenue was $35,548, a decrease from $37,084 in the previous quarter, reflecting a reduction of approximately 4.1%[23] - The subscriptions cost of revenue for the nine months ended September 30, 2024, was $38,973, compared to $39,614 in the previous year, showing a slight decrease of 1.6%[23] - The professional services cost of revenue for the nine months ended September 30, 2024, was $69,118, down from $74,880, reflecting a decrease of approximately 7.8%[23] - For the nine months ended September 30, 2024, the total operating expense was $350,716, down from $401,729 in the previous year, indicating a reduction of approximately 12.7%[24] Leadership and Strategic Initiatives - Appian has accelerated government procurement with AI through the new ProcureSight integration[5] - Appian appointed Mark Dorsey as Chief Revenue Officer[5] Tax and Other Expenses - The income tax expense for the three months ended September 30, 2024, was $1,436, compared to $1,319 in the previous quarter, reflecting an increase of approximately 8.9%[23] - The total cost of revenue for the three months ended September 30, 2023, was $34,323, which is a decrease from $36,069 in the previous quarter, indicating a reduction of approximately 4.9%[24] - Stock-based compensation expense for the nine months ended September 30, 2024, was $30,011,000, down from $33,215,000 in the same period of 2023[21]

MCLEAN, Va., Aug. 19, 2024 /PRNewswire/ -- Appian (Nasdaq: APPN) today announced the latest version of the Appian Platform, designed to transform how organizations orchestrate enterprise data and automate processes. This release delivers support for more enterprise AI use cases with expanded compliance, offering a strong framework to help organizations prepare for current and forthcoming AI regulations.The latest release introduces the expansion of AI capabilities to enhance data and process automation for ...

Revenue Growth - Cloud subscriptions revenue for Q2 2024 reached $88.4 million, an 18.8% increase from $74.4 million in Q2 2023, while for the first half of 2024, it was $175.0 million, up 21.4% from $144.1 million in the same period last year [132]. - Total revenue increased by $18.7 million, or 14.7%, to $146.5 million for the three months ended June 30, 2024, compared to $127.7 million in the same period in 2023, driven primarily by a $19.2 million increase in subscriptions revenue [152]. - Total revenue increased by $33.3 million, or 12.7%, to $296,285 thousand for the six months ended June 30, 2024, primarily due to a $37.9 million increase in subscriptions revenue [163]. - Subscriptions revenue grew by $37,917 thousand, or 19.7%, to $230,668 thousand for the six months ended June 30, 2024, while professional services revenue decreased by $4,582 thousand, or 6.5% [163]. Subscription Metrics - The cloud subscriptions revenue retention rate improved to 118% as of June 30, 2024, compared to 115% in 2023, indicating strong renewal and expansion of subscription agreements [133]. - For the three months ended June 30, 2024, 77.1% of total revenue was derived from subscriptions, compared to 73.4% in the same period of 2023, highlighting a shift towards subscription-based revenue [129]. - Subscriptions revenue reached $113.0 million for the three months ended June 30, 2024, up 20.4% from $93.8 million in the same period in 2023, with a notable $14.0 million increase in cloud subscription revenue [152]. Cost and Expenses - Total cost of revenue increased by $2.6 million, or 7.0%, to $39.4 million for the three months ended June 30, 2024, primarily due to a $2.2 million increase in hosting costs [154]. - Operating expenses increased to $146.2 million for the three months ended June 30, 2024, compared to $131.5 million in 2023, reflecting continued investment in growth [148]. - General and administrative expense rose by $11.0 million, or 37.6%, to $40,193 thousand for the three months ended June 30, 2024, driven by lease impairment charges and increased amortization expenses [158]. - Total cost of revenue increased by $4.5 million, or 6.1%, to $77,410 thousand for the six months ended June 30, 2024, mainly due to higher hosting costs [164]. Profitability and Loss - The operating loss for the three months ended June 30, 2024, was $39.2 million, an improvement from a loss of $40.7 million in the same period in 2023 [148]. - Net loss for the three months ended June 30, 2024, was $43.6 million, compared to a net loss of $42.4 million in the same period in 2023 [148]. - The net loss for the six months ended June 30, 2024, was $(76.5 million), an increase of $19.4 million compared to the prior year [178]. - The net loss per share, basic and diluted, was $(1.05) for the six months ended June 30, 2024, a decrease of $0.51 from the previous year [178]. Financial Position - Cash and cash equivalents as of June 30, 2024, were $120.8 million, down from $149.4 million as of December 31, 2023 [184]. - The company had a working capital of $70.3 million as of June 30, 2024, an increase from $43.2 million at the end of 2023 [184]. - Outstanding principal debt as of June 30, 2024, was $254.0 million, with a hypothetical one percentage point increase in interest rates potentially raising annual interest expense by approximately $2.5 million [200]. Strategic Focus - The business model focuses on maximizing customer lifetime value, with significant investments in customer acquisition and sales team expansion, which can take up to a year to yield productivity [125]. - The company targets organizations with over 2,000 employees and $2 billion in annual revenue, indicating a focus on large enterprises for customer acquisition [123]. - The company plans to continue investing in its platform and infrastructure to meet evolving customer needs and may pursue strategic acquisitions to enhance product offerings [130]. Risks and Challenges - Inflation risks are present in personnel costs and general overhead expenses, with potential adverse effects on gross profit margins if inflation pressures increase [201]. - The company faces foreign currency exchange risks, primarily with the British pound, Euro, Australian dollar, and Swiss franc, impacting revenue and operating results [202]. - A 10% change in foreign currency exchange rates could affect total revenue by approximately 4% and operating loss by about 3% for the six months ended June 30, 2024 [202]. Non-GAAP Measures - The company emphasizes the importance of non-GAAP financial measures for evaluating performance and making operational decisions [173]. - Adjusted EBITDA, a non-GAAP measure, is defined as net loss before certain expenses, providing a clearer view of operational performance [176]. - The company reported an adjusted EBITDA of $(10.5) million for the three months ended June 30, 2024, compared to $(24.7) million for the same period in 2023 [181].

Appian Corporation (NASDAQ:APPN) Q2 2024 Earnings Conference Call August 1, 2024 8:30 AM ET Company Participants Jack Andrews - Investor Relations Matt Calkins - Chairman and CEO Mark Matheos - Chief Financial Officer Conference Call Participants Sanjit Singh - Morgan Stanley Raimo Lenschow - Barclays Steve Enders - Citi Derrick Wood - TD Cowen Kevin Kumar - Goldman Sachs Jake Roberge - William Blair Operator Good day and thank you for standing by. Welcome to the Appian Second Quarter 2024 Earnings Conferen ...

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-----------------------------|--------------------|-------|-------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Q2 Presentation | 2024 Earnings Call | | | | | | | | | | Matt Calkins, Founder & CEO | | | | | | | | | | | Mark Matheos, CFO | | | | | | | | | | | | | | | | | | | | | Disclaimer ...

Exhibit 99.1 Appian Announces Second Quarter 2024 Financial Results Second quarter cloud subscription revenue increased 19% year-over-year to $88.4 million McLean, VA – August 1, 2024 – Appian (Nasdaq: APPN) today announced financial results for the second quarter ended June 30, 2024. "Due to enhanced functionality launched this quarter, Appian AI usage nearly doubled," said Matt Calkins, CEO & Founder. "Looking ahead, we are accelerating our path to profitability. We now expect to achieve adjusted EBITDA b ...