"Underwriters often find themselves juggling information scattered across email inboxes, outdated systems, and lengthy documents. This is especially true for life underwriters, for whom administrative burden can significantly slow down their ability to accurately assess risk in a timely manner," said Jacob Sloan, Industry Vice President, Global Insurance, Appian. "That's why Appian has partnered with Swiss Re Reinsurance Solutions to introduce Connected Underwriting Life Workbench to improve operational eff ...

Financial Data and Key Metrics Changes - In Q1 2024, Appian's cloud subscription revenue grew 24% year-over-year to $86.6 million, while total revenue increased 11% to $149.8 million [6][16] - Subscription revenue rose 19% to $117.7 million, with a cloud subscription revenue retention rate of 120% as of March 31, 2024, up from 115% a year ago [16][19] - Adjusted EBITDA was a loss of $1.3 million, significantly better than the previous year's loss of $15.8 million [19][24] Business Line Data and Key Metrics Changes - Professional services revenue decreased by 11% year-over-year to $32.1 million, reflecting fluctuations due to project timing [17] - Subscriptions revenue accounted for 79% of total revenue, compared to 73% in the previous year [17] - International operations contributed 37% of total revenue, up from 33% a year ago [17] Market Data and Key Metrics Changes - Foreign exchange movements provided a revenue benefit of 1% to 2% on a constant currency basis [18] - Cash provided by operations was $18.9 million, a significant improvement from cash used in operations of $25.3 million in the same period last year [21] Company Strategy and Development Direction - Appian is focusing on enhancing its AI capabilities and has launched a 30-day fixed price offering to demonstrate ROI [8][9] - The company announced a Strategic Collaboration Agreement with AWS to enhance enterprise AI use [9] - Appian aims to push technological boundaries with new features like Process HQ and Elastic Process Execution (EPIX) [10][12] Management's Comments on Operating Environment and Future Outlook - Management noted that while the macro environment is not perfect, it remains workable, particularly regarding AI investments [28] - The company is optimistic about its long-term growth prospects and is focused on optimizing its cost structure to drive profitability [24][25] - Management expressed confidence in the demand for their platform, with a high gross revenue retention rate of 98% [75] Other Important Information - Appian completed a $50 million share repurchase program in Q1, buying back 1.32 million shares [21] - Total deferred revenue was $226.2 million as of Q1 2024, an increase of 14% from the previous year [21] Q&A Session Summary Question: Update on the deal environment and macro conditions - Management indicated that the macro environment is workable, with no significant budget increases for AI among customers [28] Question: Feedback from customers on AI investments and new products - The conference received positive feedback, with customers appreciating the new pricing approach and features [30] Question: Clarification on cloud revenue guidance and seasonal impacts - Management explained that Q2 is typically the weakest quarter due to seasonality, but they expect recovery in the second half [33][34] Question: Uptake of the new Data Fabric solution and competitive positioning - Management highlighted that their Data Fabric is designed to integrate across the enterprise, differentiating it from competitors [35][36] Question: Trends in net revenue retention and impact of go-to-market changes - Management noted that the recent changes are expected to positively impact net revenue retention in the long run [46] Question: Insights on the macro demand environment in core verticals - Management reported strong customer satisfaction and loyalty, contributing to consistent retention rates [75]

PART I. FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Q1 2024 unaudited condensed consolidated financial statements, showing increased revenue, reduced net loss, and a stockholders' deficit [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets decreased to **$595.4 million**, liabilities increased, resulting in a **$9.7 million** stockholders' deficit Consolidated Balance Sheet Highlights (in thousands) | Metric | March 31, 2024 (unaudited) | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$595,358** | **$627,503** | | Cash and cash equivalents | $170,108 | $149,351 | | Accounts receivable, net | $129,317 | $171,561 | | **Total Liabilities** | **$605,023** | **$575,162** | | Deferred revenue | $226,159 | $240,692 | | Total debt | $255,123 | $206,589 | | **Total Stockholders' (Deficit) Equity** | **($9,665)** | **$52,341** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2024 total revenue increased **11%** to **$149.8 million**, narrowing operating loss to **$19.5 million** and net loss to **$32.9 million** Q1 2024 Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | **Total Revenue** | **$149,835** | **$135,235** | | Subscriptions Revenue | $117,694 | $98,957 | | Professional Services Revenue | $32,141 | $36,278 | | **Gross Profit** | **$111,838** | **$99,142** | | **Operating Loss** | **($19,535)** | **($35,266)** | | **Net Loss** | **($32,923)** | **($36,829)** | | **Net Loss Per Share (Basic & Diluted)** | **($0.45)** | **($0.51)** | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 2024 net cash from operations turned positive to **$18.9 million**, with **$4.2 million** used in financing due to a **$50.0 million** share repurchase Q1 2024 Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash provided by (used by) operating activities | $18,866 | ($25,265) | | Net cash provided by (used by) investing activities | $7,459 | ($12,316) | | Net cash (used by) provided by financing activities | ($4,249) | $88,144 | | **Net increase in cash, cash equivalents, and restricted cash** | **$20,757** | **$50,578** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, cloud subscriptions at **$86.6 million**, Pegasystems litigation, a **$57.3 million** JPI policy, and a **$50.0 million** share repurchase - Revenue from government agencies represented **21.7% of total revenue** for Q1 2024, while international customers accounted for **37.2%**[31](index=31&type=chunk) Revenue by Type (in thousands) | Revenue Type | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Cloud subscriptions | $86,603 | $69,692 | | Term license subscriptions | $23,771 | $23,151 | | Maintenance and support | $7,320 | $6,114 | | **Total subscriptions** | **$117,694** | **$98,957** | | Professional services | $32,141 | $36,278 | | **Total revenue** | **$149,835** | **$135,235** | - The company has a **$2.036 billion judgment** against Pegasystems, which will not be recorded until all contingencies are resolved and collection occurs[97](index=97&type=chunk)[98](index=98&type=chunk) - In September 2023, the company purchased a Judgment Preservation Insurance (JPI) policy for **$57.3 million**, providing up to **$500.0 million of coverage** for the Pegasystems judgment, amortized over an estimated three-year appeals process[99](index=99&type=chunk)[100](index=100&type=chunk) - In March 2024, the company completed a **$50.0 million share repurchase program**, buying back **1.3 million shares** at an average price of **$37.86**[103](index=103&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 performance, noting **10.8%** total revenue increase, **18.9%** subscription growth, **120%** cloud revenue retention, and improved operating cash flow [Key Metrics](index=27&type=section&id=Key%20Metrics) Key metrics show strong growth, with cloud subscriptions revenue up **24.3%** to **$86.6 million** and retention rate improving to **120%** Cloud Subscriptions Revenue (in thousands) | Period | Revenue | % Change YoY | | :--- | :--- | :--- | | Three Months Ended March 31, 2024 | $86,603 | 24.3% | | Three Months Ended March 31, 2023 | $69,692 | | Cloud Subscriptions Revenue Retention Rate | As of | Rate | | :--- | :--- | | March 31, 2024 | 120% | | March 31, 2023 | 115% | [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Q1 2024 total revenue grew **10.8%** to **$149.8 million**, gross margin improved to **74.6%**, and operating loss reduced to **$19.5 million** - The increase in subscriptions revenue was driven by a **$16.9 million increase** in cloud subscription revenue, with **$5.9 million from new customers** and **$12.9 million from existing customers**[150](index=150&type=chunk) - Sales and marketing expense decreased by **$4.9 million (7.8%)** due to a **7.3% reduction in headcount** and lower severance costs[154](index=154&type=chunk) - General and administrative expense increased by **$3.8 million (12.6%)**, primarily due to **$4.5 million in amortization expense** for the judgment preservation insurance policy[156](index=156&type=chunk) - Other expense was **$8.2 million**, a significant shift from other income of **$2.7 million** in the prior year, primarily due to **$11.5 million in foreign exchange losses**[158](index=158&type=chunk)[159](index=159&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2024, Appian held **$170.1 million** in cash, generated **$18.9 million** from operations, and believes resources are sufficient for the next twelve months Liquidity Position (in thousands) | Metric | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $170,108 | $149,351 | | Working capital | $95,950 | $43,183 | - The company has non-cancellable cloud hosting commitments with AWS requiring **$28.0 million** in minimum spending for each of the next three years[181](index=181&type=chunk) - Net cash from operating activities improved by **$44.1 million** year-over-year, driven by stronger collections and lower operating expenses[183](index=183&type=chunk)[184](index=184&type=chunk) - Net cash used in financing activities was **$4.2 million**, compared to **$88.1 million provided** in the prior year, mainly due to a **$50.0 million share repurchase** and lower debt proceeds[185](index=185&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risks include interest rates and foreign currency, with a **1%** rate increase impacting annual interest expense by **$2.5 million** and a **10%** currency change affecting revenue by **3%** and operating loss by **4%** - A hypothetical **1 percentage point increase** in interest rates would increase annual interest expense by approximately **$2.5 million**[190](index=190&type=chunk) - A **10% change** in foreign currency exchange rates would have impacted Q1 2024 total revenue by approximately **3%** and operating loss by approximately **4%**[192](index=192&type=chunk) [Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting - The CEO and CFO concluded that as of March 31, 2024, the company's disclosure controls and procedures were effective at the reasonable assurance level[196](index=196&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[197](index=197&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 12 for Pegasystems litigation details, stating no other legal proceedings are expected to materially adversely affect the business - For information regarding legal proceedings, the report refers to Note 12 – Commitments, Contingencies, and Other Matters in the financial statements[200](index=200&type=chunk) [Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have occurred since those disclosed in the company's 2023 Annual Report on Form 10-K - There have been no material changes from the risk factors described in the company's 2023 Annual Report on Form 10-K[202](index=202&type=chunk) [Issuer Purchases of Equity Securities](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's equity security purchases, including a **$50.0 million share repurchase** in March 2024 of **1.3 million shares** - In February 2024, the Board of Directors authorized a share repurchase program of up to **$50.0 million**[205](index=205&type=chunk) - In March 2024, the company completed the program, repurchasing **1.3 million shares** at an average price of **$37.86** for a total cost of **$50.0 million**[205](index=205&type=chunk) [Other Items (Defaults, Mine Safety, Other Information)](index=48&type=section&id=Other%20Items%20(3%2C%204%2C%205)) The company reported no defaults on senior securities, no mine safety disclosures, and no other information under Item 5 - The company reported 'Not applicable' for Defaults Upon Senior Securities and Mine Safety Disclosures, and 'None' for Other Information[205](index=205&type=chunk) [Exhibits](index=49&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including Credit Agreement amendments, officer certifications, and XBRL data - Key exhibits filed include amendments to the Credit Agreement, officer certifications pursuant to Sarbanes-Oxley Act Sections 302 and 906, and XBRL instance documents[207](index=207&type=chunk)[208](index=208&type=chunk)

[First Quarter 2024 Financial Highlights](index=1&type=section&id=First%20Quarter%202024%20Financial%20Highlights) Appian achieved strong Q1 2024 results with cloud subscription revenue up 24% to $86.6 million and significant profitability improvements Q1 2024 Key Financial Metrics (in millions) | Metric | Q1 2024 | Q1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Cloud Subscription Revenue | $86.6 | $69.9 (implied) | +24% | | Total Revenue | $149.8 | $135.2 | +11% | | GAAP Operating Loss | $(19.5) | $(35.3) | +44.7% Improvement | | Non-GAAP Operating Loss | $(3.7) | $(18.2) | +79.7% Improvement | | Adjusted EBITDA Loss | $(1.3) | $(15.8) | +91.8% Improvement | | GAAP Net Loss per Share | $(0.45) | $(0.51) | +11.8% Improvement | | Net Cash from Operations | $18.9 | $(25.3) | N/A | - The cloud subscription revenue retention rate was strong at **120%** as of March 31, 2024, indicating robust customer expansion and retention[2](index=2&type=chunk) - GAAP and non-GAAP net loss for Q1 2024 included a significant foreign currency exchange loss of **$11.5 million**, or **$0.16 per share**, compared to a small gain in the prior year[2](index=2&type=chunk) [Recent Business Highlights](index=2&type=section&id=Recent%20Business%20Highlights) Appian advanced its market position through strategic partnerships with AWS and Symphony, and launched new platform capabilities - Key strategic initiatives and partnerships in Q1 2024 include: * A strategic collaboration agreement with **AWS** to deliver Private AI and end-to-end process automation * A partnership with **Symphony** to enable compliant financial communications and process automation * The launch of **Appian ProcureSight**, a new solution designed for better and faster government procurement[4](index=4&type=chunk) [Financial Outlook](index=2&type=section&id=Financial%20Outlook) Appian projects continued double-digit growth for Q2 and full year 2024, with cloud subscription revenue expected to grow 20% annually [Second Quarter 2024 Guidance](index=2&type=section&id=Second%20Quarter%202024%20Guidance) Appian forecasts Q2 2024 cloud subscription revenue growth of 16-18% and total revenue growth of 10-13% Q2 2024 Guidance (in millions) | Metric | Guidance Range | | :--- | :--- | | Cloud Subscription Revenue | $86.0 - $88.0 (+16% to +18% YoY) | | Total Revenue | $140.0 - $144.0 (+10% to +13% YoY) | | Adjusted EBITDA Loss | $(17.0) - $(13.0) | | Non-GAAP Net Loss per Share | $(0.34) - $(0.28) | [Full Year 2024 Guidance](index=2&type=section&id=Full%20Year%202024%20Guidance) For full year 2024, Appian anticipates cloud subscription revenue to grow 20% and total revenue to increase 13% Full Year 2024 Guidance (in millions) | Metric | Guidance Range | | :--- | :--- | | Cloud Subscription Revenue | $364.0 - $366.0 (+20% YoY) | | Total Revenue | $615.0 - $617.0 (+13% YoY) | | Adjusted EBITDA Loss | $(22.5) - $(17.5) | | Non-GAAP Net Loss per Share | $(0.85) - $(0.79) | [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements detail Appian's financial health, showing increased cash, higher revenues, reduced operating loss, and positive cash flow from operations [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2024 total revenue increased to $149.8 million, driven by subscription growth, with gross profit rising and operating loss significantly narrowed Q1 2024 Statement of Operations Highlights (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Subscriptions Revenue | $117,694 | $98,957 | | Total Revenue | $149,835 | $135,235 | | Gross Profit | $111,838 | $99,142 | | Total Operating Expenses | $131,373 | $134,408 | | Operating Loss | $(19,535) | $(35,266) | | Net Loss | $(32,923) | $(36,829) | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, Appian's balance sheet shows total assets of $595.4 million, increased cash, and $226.2 million in deferred revenue Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $170,108 | $149,351 | | Total current assets | $389,880 | $414,355 | | Total assets | $595,358 | $627,503 | | Deferred revenue (current) | $220,943 | $235,992 | | Total liabilities | $605,023 | $575,162 | | Total stockholders' (deficit) equity | $(9,665) | $52,341 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 2024 saw significant cash flow improvement, with $18.9 million generated from operations, leading to a $20.8 million increase in cash and equivalents Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash from Operating Activities | $18,866 | $(25,265) | | Net cash from Investing Activities | $7,459 | $(12,316) | | Net cash from Financing Activities | $(4,249) | $88,144 | | Net increase in cash | $20,757 | $50,578 | | Cash at end of period | $170,108 | $200,959 | [Reconciliation of GAAP to Non-GAAP Measures](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section details adjustments from GAAP to non-GAAP metrics, primarily for stock-based compensation, JPI amortization, and litigation expenses, resulting in a non-GAAP operating loss of $(3.7) million Reconciliation of GAAP Net Loss to Adjusted EBITDA (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **GAAP net loss** | **$(32,923)** | **$(36,829)** | | Stock-based compensation expense | $10,606 | $11,056 | | Litigation Expense | $742 | $1,842 | | JPI Amortization | $4,504 | — | | Severance Costs | — | $4,204 | | Other adjustments | $16,049 | $3,905 | | **Adjusted EBITDA** | **$(1,322)** | **$(15,822)** | Reconciliation of GAAP Operating Loss to Non-GAAP Operating Loss (Q1 2024, in thousands) | Line Item | Amount | | :--- | :--- | | **GAAP Operating loss** | **$(19,535)** | | Stock-Based Compensation | $10,606 | | Litigation Expense | $742 | | JPI Amortization | $4,504 | | **Non-GAAP Operating loss** | **$(3,683)** | [Notes and Disclosures](index=3&type=section&id=Notes%20and%20Disclosures) This section provides context for financial results, including the rationale for non-GAAP measures and a safe harbor statement for forward-looking statements [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) Appian uses non-GAAP measures to provide supplemental information on core operating performance, excluding non-recurring expenses like stock-based compensation and litigation costs - Management uses non-GAAP measures for financial decision-making and to evaluate period-to-period comparisons, believing they offer greater transparency into the company's ongoing operational performance[9](index=9&type=chunk) - Key expenses excluded from non-GAAP calculations include **stock-based compensation**, **litigation expenses** related to the Pegasystems cases, **JPI Amortization**, and **severance costs** from a 2023 workforce reduction[10](index=10&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) The earnings release includes forward-looking statements subject to risks like competition, market acceptance, sales cycle variability, and AI's impact, where actual results may differ - The report's statements about future financial performance, demand for the Appian platform, and market opportunities are forward-looking and not guarantees of future results[14](index=14&type=chunk) - Key risks that could impact future results include **competition**, the **length and variability of sales cycles**, the **unpredictable effects of AI technologies**, and **customer concentration**[14](index=14&type=chunk)

Appian Corporation (NASDAQ:APPN) Q4 2023 Earnings Conference Call February 15, 2024 8:30 AM ET Company Participants Sri Anantha - Vice President of Finance & Investor Relations Matt Calkins - Chairman & Chief Executive Officer Mark Matheos - Chief Financial Officer Conference Call Participants Sanjit Singh - Morgan Stanley Steve Enders - Citi Jake Roberge - William Blair Kevin Kumar - Goldman Sachs Frederick Havemeyer - Macquarie Capital Thomas Blakey - KeyBanc Capital Markets Operator Thank you for standin ...

Customer Base and Revenue - As of December 31, 2023, the company had approximately 1,000 customers, with the number of customers paying over $1 million in annual recurring revenue increasing from 94 in 2022 to 110 in 2023[26] - The company has seen an increase in the number of customers with over 2,000 employees and $2 billion in annual revenue, indicating a focus on larger organizations[26] - The company anticipates that subscriptions revenue as a percentage of total revenue will continue to increase, while professional services as a percentage of total revenue will continue to decrease[36] Competition and Market Position - The company faces significant competition from custom software providers, low-code platforms, and automation technology providers[28] - The company is ranked 1 for Business Workflow Automation with Integration Use Case in the 2023 Gartner Critical Capabilities for Enterprise Low-Code Application Platforms report[30] Financial Performance and Risks - The company has experienced losses in the past and may not achieve or sustain profitability in the future[38] - Outstanding debt as of December 31, 2023, was $206.6 million, with a hypothetical 1% increase in interest rates potentially increasing annual interest expense by approximately $2.1 million[288] - 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[290] Investments and Development - The company expects to continue to invest in research and development, which may increase expenses in absolute dollar values[36] - The company has 16 granted patents and nine patents pending related to its platform and technology, with none expiring before 2034[31] Financial Position and Currency Risks - As of December 31, 2023, the company had cash and cash equivalents of $149.4 million, primarily held for reinvestment and working capital purposes[286] - The company held $9.7 million in fixed income securities, which are subject to market risk due to interest rate fluctuations[287] - The reporting currency is the U.S. dollar, with foreign currency risks primarily related to the British pound, Euro, Australian dollar, and Swiss franc[291] - A 10% change in foreign currency exchange rates could impact total revenue by approximately 4% and operating loss by about 2%[291] - The company has not engaged in hedging foreign currency transactions to date but may consider it in the future[292] Operational Dependencies - The company relies on Amazon Web Services (AWS) for its cloud offering, and any disruption could adversely affect its business[39] - The company has a dual-class stock structure that concentrates voting control with its CEO, potentially limiting influence from other shareholders[39]

Financial Data and Key Metrics Changes - In Q3 2023, Appian's cloud subscription revenue grew 27% year-over-year to $77.2 million, while total revenue increased 16% year-over-year to $137.1 million [7][18] - The adjusted EBITDA loss was $5.3 million, significantly better than the guidance of a loss between $16 million and $12 million [21] - Non-GAAP gross margin reached 75%, the highest since the IPO, with subscription non-GAAP gross margin at 89% [20][8] Business Line Data and Key Metrics Changes - Subscriptions revenue grew by 20% year-over-year to $103.8 million, with cloud subscription revenue retention rate at 117% [17][18] - Professional services revenue increased by 6% year-over-year to $33.3 million, but is expected to decline as a percentage of total revenue [18] - The count of seven-figure ARR customers surpassed 100 for the first time, driven by large deals in the U.S. Public Sector [12] Market Data and Key Metrics Changes - International operations contributed 35% of total revenue, up from 31% in the previous year, with healthy contributions from both APAC and EMEA regions [19] - Cloud software net new ACV bookings were approximately 80% of total net new software bookings during the nine months ending September 30, 2023 [19] Company Strategy and Development Direction - The company is focusing on a Private AI approach, emphasizing data privacy and compliance, which is expected to differentiate its offerings in the AI market [8][9] - Appian is investing in its platform and evolving its go-to-market strategies to prepare for future growth [16] - The company aims to maintain a balance between growth and the path to positive EBITDA [8] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the macroeconomic environment, noting deal slippage and elongation of sales cycles [24] - The company remains optimistic about the future of AI and its integration into existing processes, viewing it as a multi-year growth driver [39] - Management highlighted the importance of demonstrating practical value in AI to secure budgets from customers [29] Other Important Information - Appian obtained a Judgment Preservation Insurance policy, resulting in a one-time payment of $57.3 million, which will be amortized over three years [24] - The company was named a leader in the Gartner Magic Quadrant for Enterprise Low-code Applications platforms [15] Q&A Session Summary Question: Where is the budget for AI spend coming from? - Management indicated that AI spending is primarily coming from existing IT budgets and will need to demonstrate value to secure additional funds [29] Question: Any commentary on the linearity of demand throughout the quarter? - Management noted continued caution into Q4, with no significant improvement in the macro environment [31] Question: What does "bubbling under the surface" mean for the business? - Management emphasized ongoing activity and energy towards future growth, but did not want to quantify it in financial models [33] Question: Rationale for the insurance policy? - Management directed inquiries about the insurance policy to the 8-K filing for detailed information [37] Question: How is the government sector performing in terms of bookings? - Management reported strong growth in the public sector, particularly with the new case management solution [43] Question: What is driving the upsell strength among existing customers? - Management attributed upsell strength to customer satisfaction and value creation [49] Question: Any shifts in marketing strategy with the new CMO? - Management expects continuity in marketing strategy with an evolution towards new priorities under the new CMO [56]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 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 APPIAN CORPORATION (Exact Name of Registrant as Specified in its Charter) Delaware 54-1956084 (State or other ju ...

Appian Corporation (NASDAQ:APPN) Q2 2023 Earnings Conference Call August 3, 2023 4:30 PM ET Company Participants Sri Anantha - Senior Director, Finance & Investor Relations Matt Calkins - Chairman & Chief Executive Officer Mark Matheos - Chief Financial Officer Conference Call Participants Vinod Srinivasaraghavan - Barclays Steve Enders - Citi Kevin Kumar - Goldman Sachs Joe Meares - Truist Securities Andrew Sherman - TD Cowen Jake Roberge - William Blair Operator Good day, and thank you for standing by. W ...

Q2 2023 Earnings Call Presentation Matt Calkins, Founder & CEO Mark Matheos, CFO Disclaimer. In this presentation, we may make statements related to our business that are forward-looking statements under federal securities laws and are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements related to our financial results, trends and guidance for the third quarter and full year 2023, the impact of macroeconomic changes, the benefits of our p ...