Summary of Appian FY Conference Call (December 10, 2025) Company Overview - **Company**: Appian (NasdaqGM: APPN) - **Industry**: Enterprise Software, focusing on AI and process automation Key Points and Arguments Financial Performance - Appian has high retention rates and gross margins, indicating a strong business model [1][6] - EBITDA margin improved from negative 12% in 2023 to approximately 10% in the latest guidance [15] AI Integration and Value Proposition - Appian is positioned to facilitate enterprise adoption of AI, addressing the need for guardrails, security, and data access [4][6] - Approximately 25% of customers are already paying for AI services, indicating strong initial adoption [49] - AI is integrated into existing processes, enhancing efficiency and accuracy, particularly in document processing [82][83] Go-to-Market Strategy - The company has shifted focus to high-value use cases, targeting complex, mission-critical applications [7][36] - A reduction in the sales organization has led to increased productivity and cost savings [39][41] - Appian aims to align with C-suite priorities to drive larger deal sizes [7][36] Market Dynamics - Despite market volatility, Appian has not seen hesitance from customers in pursuing IT objectives [48] - The federal sector has shown growth, with Appian's federal business outpacing overall company growth [58] Capital Discipline and Profitability - Appian has implemented capital discipline, focusing on profitability and scrutinizing headcount growth [14][115] - The company aims to balance moderate growth with profitability improvements [116] Cloud vs. Self-Managed Business - Approximately 80%-90% of new business is in the cloud, but self-managed deployments continue to grow, especially in regulated industries [97][100] - The self-managed business model presents cash flow challenges due to upfront payments [101] Future Outlook and Capital Allocation - Appian is generating meaningful cash flow and approaching a net debt zero position [128] - The company has conducted share buybacks to return capital to shareholders, indicating a commitment to shareholder value [132] - While open to M&A opportunities, Appian remains cautious about large acquisitions in the rapidly evolving AI landscape [134][138] Additional Insights - The company culture is noted for its focus on efficiency and internal use of AI [9] - Appian's AI offerings are expected to evolve, with a focus on customer engagement and proof points [85] - The emphasis on automation in government processes presents a long-term growth opportunity for Appian [60][63]

Core Insights - The AI boom continues to be a defining theme in the market as 2025 approaches, with a focus on undervalued high-tech assets, particularly in the AI sector [2] - Appian Corporation has emerged as a significant player in enterprise AI, with a recent quarterly report that exceeded expectations and led to a substantial increase in stock price [3][6] Company Performance - Appian's stock surged over 50% following a strong quarterly report, marking its highest level since 2023 after being down approximately 90% from its 2021 peak [3][5] - The company's revenue and earnings per share (EPS) surpassed expectations, and forward guidance for Q4 sales was also positive, indicating improved market performance and deal execution [6] Market Sentiment - Despite the positive earnings report and stock surge, skepticism remains among analysts regarding the sustainability of this turnaround, with some cautioning against over-optimism [4][7] - Appian's latest AI platform launch has generated renewed interest, positioning the company as a serious contender in the enterprise AI market [7][9] Product Development - Appian has integrated AI into its low-code automation platform, distinguishing itself from competitors who are merely adding AI to existing systems, as evidenced by the launch of its Agent Studio product [9]

Core Insights - Appian has announced enhancements to its platform that integrate powerful AI agents into enterprise processes, aiming to provide measurable value beyond traditional AI assistance [2][3] - The new features are designed to modernize legacy applications and improve operational efficiency for business users [2][4] Group 1: AI Agent Integration - The new Agent Studio allows organizations to deploy advanced AI agents that can reason, handle unexpected conditions, and automate complex tasks using enterprise data [3][4] - These AI agents inherit critical platform properties such as complete data access and process context, enabling smarter decision-making and real-time adjustments [3][4] - Early users of Agent Studio reported it as intuitive, with 100% of beta participants validating its ease of use [4] Group 2: Application Modernization - Appian Composer is now available, enabling over 130 organizations to create more than 1,300 applications quickly, transforming the application modernization process [4] - Composer facilitates collaboration among business, IT, and AI teams, allowing users to turn ideas into working applications rapidly [4] Group 3: Data Fabric Enhancements - Appian's data fabric can now manage up to 50 million rows with five times faster write throughput, enhancing information security compliance through transparent data encryption [5] Group 4: Market Positioning - Appian differentiates itself by embedding AI agents directly into workflows, addressing the high failure rate of standalone AI chatbots in back-office operations [6] - The integration of AI into workflows allows enterprises to scale their AI initiatives effectively, moving beyond isolated pilot projects [6]

Core Insights - Appian reported Q3 CY2025 revenue of $187 million, a 21.4% year-on-year increase, exceeding analyst estimates of $174.1 million by 7.4% [1][6] - The company’s non-GAAP profit was $0.32 per share, significantly above the consensus estimate of $0.05 [1][6] - Revenue guidance for Q4 CY2025 is set at $189 million, surpassing analyst expectations of $187.4 million [1][6] Performance Highlights - The positive market reaction was attributed to strong cloud subscription performance and operational efficiency [3] - Over 25% of Appian's customer base is now utilizing Appian AI, contributing to a 50% increase in large software deals [3] - The company achieved a net revenue retention rate of 111%, consistent with the previous quarter [6] Future Outlook - Management anticipates continued demand driven by AI, with upcoming product releases like Agent Studio expected to enhance adoption [4] - The company plans to balance sales headcount growth with sustainable margin expansion, projecting more modest margin growth ahead [4] - Full-year adjusted EPS guidance has been raised to $0.52, reflecting a 62.5% increase [6]

Financial Data and Key Metrics Changes - In Q3 2025, Appian's total revenue grew 21% year-over-year to $187 million, with cloud subscriptions revenue increasing 21% to $113.6 million and total subscriptions revenue rising 20% to $147.2 million [4][18] - Adjusted EBITDA was $32.2 million, significantly higher than the guidance of $9-$12 million and up from $10.8 million in the same quarter last year [20][23] - Net income reached $24.4 million, or $0.32 per diluted share, compared to $1.8 million, or $0.02 per diluted share, in Q3 2024 [20] Business Line Data and Key Metrics Changes - Cloud subscription revenue retention rate was 111%, stable compared to the previous quarter but down from 117% a year ago [19] - Professional services revenue increased by 29% year-over-year to $39.8 million, with a gross margin of 34%, up from 30% in the previous year [18][19] Market Data and Key Metrics Changes - International operations contributed 40% of total revenue, up from 36% in the year-ago period, indicating strong growth in international markets [19] - Cloud net new ACV bookings accounted for approximately 90% of total net new software bookings in Q3, reflecting strong demand [19] Company Strategy and Development Direction - The company is focusing on integrating AI with business processes, emphasizing the importance of connecting AI to real work to enhance its value [5][8] - Appian's up-market strategy is driving growth, with over 50% more new seven-figure software deals booked compared to the previous year [15][17] - The launch of new features like Agent Studio is expected to enhance AI capabilities and drive further adoption among customers [13][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the government sector's purchasing patterns, noting a shift towards efficiency and openness to AI solutions despite the temporary impact of the government shutdown [31] - The company anticipates continued growth in cloud subscription revenue and total revenue for Q4 2025, with adjusted EBITDA expected to be between $10 million and $13 million [22][23] Other Important Information - The company is increasing its full-year guidance for cloud subscription revenue and total revenue, expecting cloud subscription revenue to be between $435 million and $437 million, representing year-over-year growth of 18% to 19% [23][24] - The upcoming release of Agent Studio is highly anticipated, with positive feedback from early customer programs indicating strong demand for the new capabilities [32] Q&A Session Summary Question: What drove the strength in cloud ACV bookings this quarter? - Management attributed the strength to a broad market improvement and the success of the up-market strategy, rather than specific sectors [27] Question: How does the company view its go-to-market transformation progress? - Management feels they are in the fourth or fifth inning of the transformation, with plans to return to growth in the sales organization while maintaining productivity [28] Question: What is the outlook for government business given the shutdown? - Management remains bullish about government business, noting that the shutdown is temporary and that long-term changes in purchasing patterns are positive [31] Question: What feedback has been received regarding the upcoming AI Studio release? - The beta program for AI Studio was oversubscribed, with positive feedback indicating strong anticipation for the release [32] Question: How does the company differentiate itself in the AI market? - Management emphasized the importance of connecting AI to data and processes, positioning Appian as a leader in providing complementary technologies to AI [35] Question: What is the expected path for profitability moving forward? - Management expects modest margin expansion in the future, focusing on sustainable revenue growth and continued efficiency improvements [38] Question: What is driving the strong performance in international markets? - The growth is attributed to AI adoption and higher-level conversations with decision-makers, along with favorable foreign exchange rates [39] Question: What is the outlook for professional services margins? - Management noted that while the current high margins may not be sustainable, they expect continued high profitability in professional services moving forward [41]

Summary of Oracle 2025 Conference Call Company and Industry Overview - **Company**: Oracle Corporation (NYSE: ORCL) - **Industry**: Software and Cloud Computing, specifically focusing on enterprise applications and AI integration Key Points and Arguments 1. **Comprehensive Application Suite**: Oracle emphasizes the completeness of its application suite, which includes both horizontal applications (ERP, HCM, supply chain, CX) and industry-specific applications, crucial for customer success in the age of AI [2][3][4] 2. **Customer Success Stories**: Milwaukee Tool shared its successful implementation of Oracle Fusion Applications, highlighting a growth from $1 billion to $10 billion in revenue over 20 years, showcasing the importance of innovation and speed in operations [6][10][11] 3. **AI Integration**: Oracle is focusing on AI as a catalyst for business transformation, with Milwaukee Tool leveraging AI for product design and operational efficiency [22][23] 4. **Partnerships and Collaboration**: The partnership between Oracle and its customers, such as Milwaukee Tool, is highlighted as critical for success, with Oracle adapting its solutions based on customer feedback [25][70] 5. **AI Agent Development**: Oracle has developed over 600 AI agents, significantly exceeding previous commitments, and introduced the AI Agent Marketplace, allowing customers to create and modify agents [28][36][42] Additional Important Content 1. **Milwaukee Tool's Challenges**: The company faces challenges in driving efficiency and scalability in operations, particularly in distribution and supply chain management, which Oracle's solutions help address [11][12][19] 2. **BHE Renewables' Focus**: BHE Renewables is harnessing AI for grid management and demand forecasting, emphasizing the importance of data for making informed business decisions [47][49][51] 3. **Industry-Specific Applications**: Oracle's industry applications are designed to address specific client needs, enhancing operational efficiency and customer satisfaction through AI [81][83] 4. **Real-World AI Applications**: An example was provided of how utilities can use AI to optimize customer engagement, from identifying better rate plans to scheduling service appointments [84][86] This summary encapsulates the core discussions and insights from the Oracle 2025 Conference, focusing on the company's strategic direction, customer success stories, and the integration of AI into its offerings.

Group 1: OpenAI and AI Developments - OpenAI launched GPT-5-Codex, which can work independently for over 7 hours and has been integrated into all Codex use cases [1] - The model outperformed GPT-5 in two benchmark tests and can dynamically adjust thinking time based on task complexity [1] - GPT-5-Codex has code review capabilities and can identify vulnerabilities, capturing 40% of Codex traffic within just 2.5 hours of launch [1] Group 2: Tencent's Mixed Reality and 3D Modeling - Tencent released the Mixed Reality 3D model 3.0, achieving a modeling precision increase of 3 times and a geometric resolution of 1536³ [2] - The new model is optimized for character generation, significantly enhancing realism and aesthetics to achieve a figurine-level effect [2] - Tencent's cloud API and professional Mixed Reality 3D Studio have been launched, covering seven core stages of the 3D pipeline [2] Group 3: AI Music Creation - Kunlun Wanwei's AI music platform Mureka introduced the "Agent Studio" feature, allowing users to generate lyrics and music styles by simply stating their ideas [3] - Six different Agent scenarios have been launched, including album creation and personalized music based on trending topics [3] - The feature aims to make music creation accessible to everyone, integrating it into daily life [3] Group 4: Robotics and AI Interaction - Yushu Technology open-sourced the UnifoLM-WMA-0 world model for robots, which understands physical interactions between robots and their environments [4] - The model supports decision-making and simulation modes, achieving high accuracy in action prediction during real-world tests [4] - The model has gained over 100 stars on GitHub shortly after release, with its inference code and model checkpoints open-sourced [4] Group 5: Meizu AI Glasses - Meizu launched the AI glasses StarV Snap at a starting price of 1999 yuan, weighing only 39g and powered by Qualcomm's Snapdragon AR1 platform [6] - The glasses feature a 12MP camera, support for 12 languages in real-time translation, and AI object recognition [6] - Strategic partnerships with Alipay and Ant International allow for direct payment through the glasses, with safety features included [6] Group 6: Meta's AI Glasses - Meta's upcoming AI glasses were leaked before the Connect conference, featuring a single-eye heads-up display and a neural wristband interaction system [7] - The glasses are expected to be released under the Ray-Ban brand, with a rumored starting price of $800 [7] - The leaked video showcased a complete line of smart glasses products developed in collaboration with EssilorLuxottica [7] Group 7: OpenAI's ChatGPT Usage Insights - OpenAI, in collaboration with Duke and Harvard, released a report revealing that ChatGPT has over 700 million weekly active users, with 180 billion messages sent weekly [9] - Non-work-related usage increased from 53% to 70%, with practical advice, information queries, and document writing being the top three use cases [9] - The report indicated a significant drop in programming usage from 12% to 5%, while Anthropic's Claude showed a 39% task delegation rate for coding [9] Group 8: Tencent's Growth Strategy - Tencent's senior executive emphasized that "intelligentization drives industry efficiency, and globalization drives revenue scale" as core growth strategies [10] - AI has become a new business gene for Tencent, with significant growth in user engagement across various AI applications [11] - Tencent Cloud's international business has seen high double-digit growth, with a doubling of global customer numbers year-on-year [11]

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]