Core Viewpoint - The market anticipates Appian (APPN) will report a year-over-year increase in earnings driven by higher revenues when it releases its quarterly results for the period ending March 2025 [1][2] Earnings Expectations - Appian is expected to report quarterly earnings of $0.03 per share, reflecting a year-over-year increase of +112.5% [3] - Revenue projections stand at $162.84 million, which is an increase of 8.7% compared to the same quarter last year [3] Estimate Revisions - The consensus EPS estimate has been revised down by 6.82% over the last 30 days, indicating a reassessment by analysts regarding the company's earnings outlook [4] - The Most Accurate Estimate for Appian is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -25%, suggesting a bearish sentiment among analysts [10][11] Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with positive readings being more reliable [7][8] - Appian currently holds a Zacks Rank of 3, which complicates the prediction of an earnings beat [11] Historical Performance - In the last reported quarter, Appian was expected to incur a loss of $0.01 per share but instead reported break-even earnings, resulting in a surprise of +100% [12] - Over the past four quarters, Appian has exceeded consensus EPS estimates three times [13] Conclusion - While Appian does not appear to be a strong candidate for an earnings beat, investors should consider other factors when making investment decisions ahead of the earnings release [16]

Core Insights - Appian announced the winners of the 2025 Partner Awards at its annual Appian World global conference, recognizing partners for their innovative solutions on the Appian Platform that deliver significant client impact and value [1][3] Partner Awards - **Global Delivery Award**: KPMG was recognized for empowering clients to drive large-scale digital transformation through its technology ecosystem and advanced Appian implementation capabilities, focusing on operational efficiency and customer experience [4] - **Global Growth Award**: Deloitte achieved a 97% increase in Appian-related services revenue since FY22, driven by rapid growth in North America, Europe, and Australia, and a 96% year-over-year rise in Appian certifications [5] - **Americas Delivery Award**: Perficient experienced 30% revenue growth in its Appian practice and nearly doubled its sales pipeline in 2024, expanding offshore capabilities by over 40% [6] - **Americas Growth Award**: PwC's Interactions Hub, a SaaS solution built on Appian, doubled its client base and user count, driven by the launch of seven new Appian Cloud instances for pharmaceutical clients [7] Innovation Award Winners - **Accenture**: Developed hyperautomation solutions for financial processes, enhancing productivity and ensuring audit compliance [9][10] - **Bits In Glass**: Implemented intelligent automation for a top-10 global reinsurer, improving speed to resolution and data-driven decision-making [11] - **EY**: Created a real estate auctioning platform that increased asset returns by over €20 million in 2.5 years [12] - **Impera**: Built a crypto core banking solution for Towerbank, automating 96% of processes [12] - **Ignyte**: Developed a patient-centered care coordination solution on the Appian Platform, modernizing healthcare support [13] - **Inetum**: Launched a digital framework for the Spanish public sector, reducing processing times by up to two-thirds [14] - **Groundswell**: Developed the Groundswell Integrated Budget Suite to modernize the federal budget lifecycle [15] - **Macedon Technologies**: Automated 85% of processing for the US No Surprises Act claims [16] - **Waivgen**: Introduced the EngaigeQ: AI Builder framework to scale AI adoption [17] - **WNS**: Built Malkom for the shipping industry, achieving significant reductions in processing time and costs [18] - **Xebia**: Integrated IntelliAgent with the Appian Platform, enabling rapid deployment of AI agents [19]

Core Insights - Appian announced the winners of the 2025 Appian Innovation Awards, highlighting the transformative applications created by customers that leverage AI and process orchestration on the Appian Platform [1][2][4] North America Winners - Gordon Food Service (GFS) utilized Appian to enhance its customer ordering process, achieving a 70% reduction in order entry time and a 40% increase in quote production, leading to higher sales productivity [5] - MagMutual implemented AI-powered solutions on the Appian Platform, resulting in a 30% reduction in turnaround times for quotes and a 25% decrease in claims processing times, which improved employee productivity by 20% and customer satisfaction by 15% [6] - Regeneron developed a clinical trial feasibility platform that integrates data from over 10 sources, achieving a 50% reduction in data query time, thus accelerating clinical trials and reducing costs [7] EMEA and LATAM Winners - Novartis streamlined clinical trial operations by connecting over 15 core systems on the Appian Platform, benefiting over 10,000 professionals with improved productivity and faster decision-making [8] - Towerbank International launched "Ikigii" to enhance its onboarding process, reducing onboarding time from seven hours to under two by automating 96% of processes, and processed $30 million in crypto-to-fiat transactions [9] Asia-Pacific and Japan Winners - Ramsay Health Care deployed multiple applications on the Appian Platform, achieving a 25% increase in adoption rates and recovering $30 million through workflow automation [10] - Westpac Banking Corporation introduced a Mortgage Assessor AI solution on the Appian platform, improving loan assessment times and speeding up approvals [11] Global Public Sector Winner - Idaho Workforce Development Council (WDC) created a system for the LAUNCH grant program on the Appian Platform, enabling over 14,000 students to receive nearly $40 million in aid, while saving the agency the equivalent of three full-time staff members [12] Conclusion - The Innovation Award winners exemplify how organizations are leveraging AI and process orchestration to create significant operational improvements and deliver measurable value to employees and customers [13]

Core Insights - Appian has announced enhancements to its agentic AI platform aimed at helping organizations build, deploy, and scale intelligent process applications [2] - The release includes the beta launch of Agent Studio and the general availability of AI Document Center, along with expanded data fabric support for document management and semantic search [2][4] AI Platform Enhancements - Agent Studio allows users to design and deploy AI agents with greater autonomy and contextual awareness, enabling them to reason through complex tasks and interact with multiple systems [5] - AI Document Center is designed for enterprise-grade intelligent document processing, achieving high extraction accuracy and scalability, as demonstrated by Century Fire Protection, which reduced invoice operating time by 36% [6][7] Data Fabric and Smart Search - The data fabric now includes native support for documents, allowing organizations to manage and secure documents without folder-based organization [10] - Smart search utilizes AI-driven semantic search to enhance record retrieval, interpreting intent and uncovering connections beyond simple keyword matching [8] Autoscale and Process Efficiency - Generative AI agents can now be utilized in autoscale processes, dynamically adjusting execution capacity based on demand, delivering 10-100x the power without over-provisioning resources [9] - Incremental syncs support dynamic data environments, allowing external data sync as frequently as every 15 minutes and up to 20 million rows per record [10] User Experience Improvements - Appian's UI enhancements include automatic incorporation of common form headers and wizard functionality, improving form design and user experience [11] - The integration of AI into processes provides purpose, governance, and accountability, essential for delivering value [12]

Core Insights - Appian empowers customers to integrate AI directly into their business processes, enhancing governance and accountability for better outcomes [1][10] - The company emphasizes a process-first approach, which has led to transformative results for various clients [2][4] Customer Adoption and Impact - Appian's customer AI adoption has surged 7.9 times year-over-year, with 70% of Appian Cloud customers utilizing AI for various applications [3] - Acclaim Autism reduced patient intake time by 83% using Appian AI to process unstructured medical documents [5] - Century Fire Protection cut invoice processing time by 36% and reduced missed discounts by 50% through an AI-driven accounts payable application [6] - Hitachi expects a 20% reduction in operating expenses and a 60% improvement in time-to-market by optimizing internal processes with Appian [7] - The Texas Department of Public Safety improved procurement efficiency by deploying a generative AI chatbot, providing instant access to regulatory information for over 10,000 stakeholders [8] - The University of South Florida enhanced academic advising by using Appian AI, allowing advisors to save time and provide personalized support to students [9] Product Features and Strategy - The latest product release allows customers to embed AI in any interface, further powering their processes [4] - Appian's strategy focuses on embedding AI within processes to optimize operations, enhance accuracy, and accelerate outcomes [10] Company Overview - Appian is recognized as The Process Company, delivering a software platform that helps organizations improve processes, reduce costs, and enhance customer experiences [12]

Core Insights - Appian has launched the latest version of its platform, Appian 25.1, which enhances scalability, speed, and performance for enterprise applications [1][5] - The new version allows for processing 75 times more documents per hour, significantly improving data extraction and classification capabilities with AI [2][3] - Appian 25.1 supports syncing up to 10 million rows per record type, addressing the growing data needs of organizations [5][6] Performance Improvements - Participants in the beta program reported performance improvements of 5 to 10 times faster for complex queries against record types with millions of rows, with some queries being up to 40 times faster [6] - The platform's improved AI architecture enables organizations to classify or extract data from hundreds of millions of pages annually, reducing delays and bottlenecks [3][4] User Experience Enhancements - The release includes component improvements for user interfaces, such as editable grids and form layout formatting, enhancing the overall user experience [5] - Users can now add key performance indicators (KPIs) to centralized dashboards, allowing for better monitoring and navigation of process insights [4][6] Data Fabric Capabilities - Appian's data fabric architecture allows for both reading and writing of 10 million rows per record, making it suitable for mission-critical processes across various industries [5] - The platform's comprehensive field-level security configurations provide greater control and compliance, supplementing existing record-level security settings [6]

Customer Growth - As of December 31, 2024, the company had over 1,000 customers, with the number of customers paying over $1 million in annual recurring revenue increasing from 110 in 2023 to 126 in 2024[32] Financial Position - The company held cash and cash equivalents of $118.6 million and $41.3 million in fixed income securities as of December 31, 2024, which are subject to market risk due to interest rate fluctuations[286][287] - As of December 31, 2024, the company had outstanding debt of $250.4 million, with a hypothetical increase of one percentage point in interest rates potentially increasing annual interest expense by approximately $2.5 million[288] - A hypothetical 100 basis point change in interest rates would not have had a material effect on the fair market value of the company's investment portfolio as of December 31, 2024[287] Revenue Composition - The company expects subscriptions revenue as a percentage of total revenue to continue increasing, while professional services revenue as a percentage of total revenue is expected to decrease[43] Intellectual Property - The company has 21 granted patents and 20 pending patents related to its platform and technology, with none expiring before 2034[36] Competitive Position - The company competes favorably in terms of platform features, security, performance, and total cost of ownership, as validated by Gartner ranking it 1 for Complex Internal Applications in 2024[34] - The company has experienced significant competition and must continue to innovate to maintain its market position[46] Market Opportunities - The company anticipates that the market opportunity will expand, particularly with the competitive impact of AI and the need for technological adaptation[43] Cloud Dependency - The company relies on Amazon Web Services (AWS) for its cloud offering, and any disruption could adversely affect its business[47] Shareholder Structure - The company has a dual-class stock structure, concentrating voting control with its founder, which may limit the influence of other shareholders[46] Inflation and Currency Risks - The company is exposed to inflation risks, particularly in personnel costs and third-party services, which may adversely affect gross profit margins if inflation pressures increase[290] - The company's reporting currency is the U.S. dollar, and a 10% change in foreign currency exchange rates could impact total revenue by approximately 4% and operating loss by approximately 8%[291] - The company has not engaged in hedging foreign currency transactions to date, although it may consider this in the future[292]

Q4 2024 Earnings Call Presentation Matt Calkins, Founder & CEO Mark Lynch, Interim 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 first quarter and full year 2025, the impact of macroeconomic changes, the benefits of ...

Financial Data and Key Metrics Changes - In Q4 2024, Appian Corporation's cloud subscription revenue grew 19% to $98.9 million, while total revenue increased 15% to $166.7 million [7][40] - For the full year 2024, cloud subscription revenue reached $368 million, representing a 21% growth year over year [47] - Adjusted EBITDA for Q4 was positive $21.2 million, significantly above guidance [43] - Non-GAAP gross margin was 80% in Q4, the best performance since the IPO [8][42] Business Line Data and Key Metrics Changes - Subscriptions revenue grew by 18% to $136.8 million in Q4, with subscriptions revenue representing 82% of total revenue [38][40] - Professional services revenue was $29.9 million, a slight increase of 1% year over year, but expected to decline as a percentage of total revenue over the long term [39][40] Market Data and Key Metrics Changes - International operations contributed 35% of total revenue, a slight decrease from 36% in the previous year [41] - Cloud software net new ACV bookings were approximately 65% of total net new software bookings in Q4, down from 80% in the prior year [41] Company Strategy and Development Direction - Appian Corporation aims to leverage AI to enhance process automation, emphasizing the integration of AI within existing workflows [10][11] - The company is focusing on upselling existing customers and expanding its product offerings, with two-thirds of customers purchasing more software in 2024 [31][32] - The strategic priority for 2025 is to maintain a focus on core principles, market identity, and operational rigor [35] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding opportunities in the public sector amidst uncertainty in federal spending [61][62] - The company anticipates a return to a more typical revenue mix of 80% cloud and 20% on-premise in the upcoming year [62] - Management highlighted the importance of demonstrating the practical value of AI to customers, aiming for a more structured approach to AI deployment [66] Other Important Information - The company plans to remove foreign exchange gains and losses from its non-GAAP EPS calculation starting in 2025 [57] - Cash and cash equivalents as of December 31, 2024, were $159.9 million, slightly up from $159 million the previous year [46] Q&A Session Summary Question: What are the underlying assumptions regarding public sector guidance given the uncertainty in US federal spending? - Management feels cautious about the public sector's outlook and cannot predict the impact of federal budget changes [61][62] Question: What can be expected from the product roadmap regarding the agent strategy? - The focus will be on demonstrating the practical value of agents within structured processes, aiming for a more intuitive approach to AI [66] Question: How does Appian Corporation's approach to AI differ from competitors? - Appian Corporation emphasizes embedding AI directly into workflows rather than treating it as a separate entity, positioning it at the center of work processes [71][72] Question: What are the trends in demand across core verticals? - Performance and pipeline were evenly distributed among key verticals: financial services, public sector, insurance, and life sciences [83] Question: How is pricing evolving around AI agents? - Agents will be priced by usage, with a current strategy to subsidize their use to encourage adoption [88]

Exhibit 99.1 Appian Announces Fourth Quarter and Full Year 2024 Financial Results Fourth quarter cloud subscription revenue increased 19% year-over-year to $98.9 million Full year cloud subscription revenue increased 21% year-over year to $368.0 million McLean, VA – February 19, 2025 – 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 val ...