Appian(US:APPN)2024-05-02 16:43Financial 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]