Financial Data and Key Metrics Changes - Appian's cloud subscriptions revenue grew 21% to $106.9 million, while subscriptions revenue increased 17% to $132.7 million, and total revenue rose 17% to $170.6 million [5][21][24] - Adjusted EBITDA was $8.1 million, significantly better than the guidance of a loss between $5 million and $2 million, and compared to a loss of $10.5 million in the previous year [24][25] - Net income was $300,000 or breakeven per diluted share, compared to a net loss of $18.2 million or $0.25 per share for the previous year [25] Business Line Data and Key Metrics Changes - Professional services revenue was $38 million, up 13% year-over-year, while subscription revenue represented 78% of total revenue, compared to 77% in the previous year [21][24] - The cloud subscription revenue retention rate was 111%, down from 118% a year ago [21] Market Data and Key Metrics Changes - International operations contributed 38% of total revenue, unchanged from the previous year [21] - The U.S. public sector outperformed the global business in cloud revenue, new bookings, and software pipeline [11] Company Strategy and Development Direction - Appian's upmarket strategy is yielding results, with a focus on high-value transactions and leveraging AI to enhance its platform [6][7] - The company is optimistic about the modernization of legacy applications, driven by AI, which is expected to create significant market opportunities [13][14][18] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the federal business, noting a shift towards direct engagement with software providers [13][64] - The company anticipates continued growth in cloud subscription revenue and total revenue for the full year 2025, with adjusted EBITDA expected to range between $49 million and $55 million [26] Other Important Information - David Crozier was appointed as the new Chief Marketing Officer, bringing extensive experience in enterprise software and AI [20] - The company is transitioning to a consumption-based pricing model, moving away from user-based pricing [67][69] Q&A Session Summary Question: App modernization journey and vendor contributions - Management acknowledged that app modernization is complex and emphasized their leadership in the market, with AI playing a crucial role in both extraction and instantiation processes [29][30] Question: NRR rate and its implications - Management explained that the NRR rate's decline to 111% is due to past downsells and highlighted the strength in acquiring new customers [34][36] Question: Competitive advantages against AI and other vendors - Management detailed that Appian's built-in functionalities and robust platform provide advantages that AI alone cannot replicate, emphasizing the importance of a comprehensive application environment [40][41][42] Question: Federal pipeline dynamics and AI's role - Management noted a positive shift in government purchasing behavior, with increased interest in efficiency and direct engagement with Appian [64][65] Question: Guidance changes and FX impact - Management clarified that the guidance increase is primarily due to fundamental business strength rather than changes in guidance philosophy or FX rates [60][61] Question: New sales leaders and go-to-market strategy - Management indicated that new hires are aligned with ongoing transformation efforts to enhance discipline and best practices across the organization [72] Question: Efficiency improvements and AI's impact - Management highlighted ongoing efforts to improve sales productivity and the potential for AI to drive further efficiencies across various functions [49][80]

Financial Data and Key Metrics Changes - In Q2 2025, Appian's cloud subscriptions revenue grew 21% to $106.9 million, total subscriptions revenue increased 17% to $132.7 million, and total revenue rose 17% to $170.6 million [5][24] - Adjusted EBITDA was $8.1 million, a significant improvement from a loss of $10.5 million in the previous year [24] - The cloud subscription revenue retention rate was 111%, down from 118% a year ago [24] Business Line Data and Key Metrics Changes - Professional services revenue was $38 million, up 13% compared to the previous year [24] - Subscription revenue represented 78% of total revenue, compared to 77% in the year-ago period [24] Market Data and Key Metrics Changes - International operations contributed 38% of total revenue, unchanged from the previous year [24] - The company noted strong performance in the U.S. public sector, with federal business outpacing global business in cloud revenue and new bookings [11] Company Strategy and Development Direction - Appian's upmarket strategy is proving effective, with a focus on high-value transactions [6] - The company is leveraging AI to enhance its platform, allowing for higher pricing and new industry opportunities [7][8] - Appian is positioned to capitalize on the modernization of legacy applications, which is expected to grow significantly as AI reduces costs [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the federal business, validating their expectations with strong results [13] - The company anticipates continued growth driven by AI and modernization trends, with a focus on efficiency and customer satisfaction [22][66] Other Important Information - A new Chief Marketing Officer, David Crozier, has joined the company, bringing extensive experience in enterprise software and AI [20] - The company is shifting towards a consumption-based pricing model while maintaining flexibility in its pricing strategies [68] Q&A Session Summary Question: Status of app modernization journey and vendor reliance - Management indicated that app modernization is complex and will require both services and software solutions, with confidence in their leadership position in this market [29][30] Question: Explanation of the NRR decline - The decline to 111% was attributed to previous downsells and a higher percentage of new business coming from new customers, indicating strength in acquiring new logos [32][33] Question: Competitive advantages against AI and other vendors - Appian's platform offers built-in functionality that AI cannot replicate, such as security and scalability, providing a durable competitive advantage [40][41] Question: Impact of AI on customer conversations and pipeline - AI has significantly enhanced the value proposition, changing customer perceptions and driving pipeline growth [56][58] Question: Guidance changes and FX impact - The increase in guidance is primarily due to fundamental business strength rather than changes in guidance philosophy or FX rates [60][61] Question: Federal pipeline dynamics and AI's role - The federal market is shifting towards direct relationships with software providers, which is favorable for Appian, and AI is expected to enhance efficiency in government operations [65][66] Question: New sales leaders' impact on go-to-market strategy - New leadership appointments are aimed at enhancing alignment and best practices across the organization, continuing the ongoing transformation [73] Question: Details on expense shifts affecting EBITDA - The outperformance in EBITDA was due to the tactical movement of marketing and consulting expenses to the second half of the year [75]

Core Insights - The article emphasizes the importance of application modernization and intelligent integration as key drivers for innovation and competitive advantage in an era characterized by uncertainty [1][4][14] - Huawei's CodeArts Doer platform is highlighted as a significant advancement in software development, enabling intelligent upgrades across various industries [2][3] Group 1: Application Modernization - Application modernization is no longer limited to migrating old systems to the cloud but involves a comprehensive restructuring of capabilities and systems [1][4] - The integration of AI and intelligent agents in the development process can enhance efficiency by over 40%, allowing for 24/7 concurrent task handling [2][3] - The platform facilitates a full lifecycle approach, connecting all stages from requirement gathering to testing and deployment, thus improving overall development accuracy and stability [3][6] Group 2: Intelligent Development - CodeArts Doer employs advanced algorithms to act as a trusted assistant for development teams, learning from context and team practices [2][3] - The platform's ability to quickly respond to project needs and continuously optimize its processes exemplifies a self-evolving digital asset management system [3][10] - The introduction of ROMA MCP allows traditional APIs to transform into intelligent nodes, enhancing the integration of AI capabilities across business systems [9][10] Group 3: Industry Collaboration - Huawei Cloud has initiated an application modernization industry alliance to foster collaboration across various sectors, aiming to enhance the software industry's technological upgrade [12][13] - The alliance focuses on practical implementations of intelligent applications, as demonstrated through partnerships with companies like Guizhou Xijiu and Dongfeng Motor [12][13] - The release of the "Application Lifecycle Intelligence White Paper" aims to guide enterprises in their digital transformation journey [13][14]