New Thread

Ctrl

⇧

Discover

Home

Discover

Appian Corporation Stock Price: Quote, Forecast, Splits & News (APPN)

Finance

Company Profile

New

Appian Corporation Price & Performance (APPN)

Stock Performance

Updated Mar 21, 8:00 PM UTC

APPN:NASDAQ

$30.79USD

3.74% · $1.11

After Hours

-1.23% · $0.38

Open

$29.19

High

$30.82

Low

$28.88

Market Cap

$2.28B

P/E Ratio

-24.4

Volume

835.70K

Year High

$43.33

Year Low

$26.28

News & Market Insights

Supreme Court to Revisit Appian's $2 Billion Case
Mar 12, 2025
The Virginia Supreme Court has agreed to Appian Corporation's petition to reinstate a $2.036 billion verdict against Pegasystems. This legal battle centers on trade secret allegations, with Appian accusing Pegasystems of misconduct. The decision to rehear the case could have significant financial implications for both firms.12
Appian Faces Stock Decline Amid Controversy
Mar 18, 2025
Appian Corporation's shares dropped 2% following allegations linking its platform to questionable practices at Raiffeisen Bank. Concerns include the bank's compliance issues and potential misuse of Appian's software. These developments have raised investor caution and questions about Appian's client relationships and operational transparency.3
Growth Outlook Brightens for Appian in 2025
Mar 7, 2025
Appian Corporation reported strong financial performance in Q4 2024, with cloud subscription revenue up 19% year-over-year. The company forecasts continued growth in 2025, driven by its low-code platform and AI integration. Analysts remain cautiously optimistic, highlighting both potential and inherent risks for the tech firm.45

What's Happening

Peers

Earnings

Report Date

Feb 19, 2025

Reported Revenue

166.7M

Avg 1d Change

13.67%

Report Period

Q4 2024

Reported EPS

-0.12

Implied Move 1d

9.88%

Transcript

11m

During this call, we may make statements related to our business that are considered forward looking. These include comments related to our financial results, trends and guidance for the first quarter and full year 2025, benefits of our platform, industry and market trends, our go to market and growth strategy, our market opportunity and ability to expand our leadership position, our ability to maintain and upsell existing customers, and our ability to acquire new customers. These statements reflect our views only as of today and don't We won't update these statements as a result of new information unless required by law. Actual results may differ materially from expectations due to the risks and uncertainties uncertainties described in our SEC filings.

11m 46s

Additionally, non GAAP financial measures will be discussed on this conference call. Reconciliations of GAAP to non GAAP financial measures are provided in our earnings release. With that, I'd like to turn the call over to our CEO, Matt Calkins.

11m 58s

Matt?

11m 59s

Thanks, Jack, and thanks everyone for joining us today. In the fourth quarter of twenty twenty four, Appian's Appian subscription revenue grew 19% to $98,900,000 Subscriptions revenue grew by 18% to 136,800,000.0 Total revenue grew 15% to $166,700,000 Our adjusted EBITDA was positive 21,200,000.0 and our cloud subscription revenue retention rate was 116%. Our non GAAP gross margin was 80% in Q4 our best performance since the IPO. For the full year, Appian's cloud subscription revenue grew 21% to $368,000,000 Subscriptions revenue grew 19% to $490,600,000.0 Total revenue grew 13% to $617,000,000 our adjusted EBITDA was positive 20,300,000.0 The world of AI is very exciting. But it contains an unsustainable imbalance and all of you know what it is. There's a monstrous amount of investment The largest American tech firms spent nearly a quarter of a trillion dollars of CapEx last year, without a proportional AI doesn't generate enough revenue. Because AI doesn't generate enough value. This is where Appian can help Appian creates real value with AI. By putting it where it can do the most good. [indiscernible] While other firms bring work to AI. We bring AI to work. I mean, we go where work happens. And that's where we deploy AI.

13m 46s

We equip AI to make an impact directly in the places where the heaviest and most valuable work already occurs.

13m 56s

Work happens inside of a process.

13m 59s

A process is a high volume flow of tasks handled individually and procedurally inside a corporation. These tasks are carefully orchestrated to serve an important goal. Processes how an insurer manages claims and a bank validates money It's how the government operates procurement cycles and pharma companies run clinical trials. Process is how organizations spend their money, serve their customers, comply with regulation and build their reputations. Appian is called the process company. And we do a lot of processes. Appian runs 10,000,000,000 to 20,000,000,000 transactions per day. AWS alone.

14m 39s

A lot of those transactions will run better when we apply AI.

14m 44s

We used to staff our processes with digital workers like RPA and business rules. Now that we have AI, I believe that the value of process automation technology has roughly doubled. [indiscernible] It will take years for that value to reach our accessible market. But it's real. And the value of AI can also double. In a process. That is a bold statement, but if it sounds like an exaggeration, that the value of AI could double when used in a process, then hear me out. As I make the case for AI process synergy. Here are six ways AI is better when deployed in an Appian process. Starting on Slide five in the earnings deck. [indiscernible] First, it's easy to instantiate AI within an Appian to launch an AI agent in any node of a process model takes only a few clicks. Customers can use AI to make suggestions, generate content, parse documents or take Appian. Customers can use ours. Usually Claude, bring their own. We are making it easier. To access AI.

16m

And if DeepSeq commoditizes AI or makes it cheaper, We and our customers stand only to gain. Second, on slide six, our process gives AI [indiscernible] For AI to make value, in high volume workflows, it must have a structured role. Process gives AI a job. Within a coordinated effort working toward an important goal. AI gets a team of coworkers, an inbox and an outbox an escalation path, exception handling and human, I want to emphasize this human to AI coordination Many processes that can benefit from AI require humans as well. As overseers, exception handlers or final results checkers. For example, one of our customers in international health technology company uses AI in a process. To allocate human attention to incoming work. They sell medical devices and supplies to healthcare providers and they're working with us to automate order fulfillment. A third of their orders. Are submitted through email and those emails will be processed by Appian AI agents Appian job is to parse, appraise and route correspondence to the right actor within the organization. Many of these requests require a human response so the AI will frequently assign the next stage of the work. To a person.

17m 20s

The third reason why Appian Process is good for AI [indiscernible] [indiscernible] AI needs data. And different implementations require different provisioning strategies. It's not always enough to make a heap of data and train your AI model once. Sometimes you need data from disparate systems. Or you need fresh data in real time from remote sources of record or you may wish to retrain periodically on a freshly assembled dataset. If you're privacy minded, may wish not to train at all.

17m 52s

But instead want data provided in the month. Our process platform sends AI the right data at the right time. The fourth reason AI is better in a process is that we give agents what they need to be successful. Agents seek data then act. First, they need to query and learn. And for that our data fabric is ideal. Then they need to launch powerful actions. These actions should be far reaching and coordinated [indiscernible] and comprehensive and fail safe. In short, Only a process provides the power and the guardrails agents need when taking action. Appian had agents before the term was invented We called them skills. But we did it the right way. With more structure, and stronger actions. Those who let Agentic AI improvise without guardrails are making a mistake. Here's an example from a top U. S. Mortgage lender. Became a new Appian customer earlier this year. It uses Appian to automate audit processes for over 10,000 loans annually. Our AI agents analyze hundreds of different forms and cross validate data with the company's origination system with 98% accuracy, the agents flagged discrepancies, so human auditors can review and correct the data before publishing loans to the secondary market.

19m 17s

The company now runs this previously manual process more than four times faster. Using Appian. The fifth reason why AI is better inside a process platform [indiscernible] visibility. Everything that happens in a process platform like ours is tracked. Every node, every Appian, every delay, every read and write, every outcome, AI is typically a black box, but to understand it better, put it in a process then you can track what impact it has, what it does well or poorly, where it makes mistakes, where are its blind spots, And whatever you learn from this exercise, you can apply. In the process platform from rerouting certain jobs to gathering a new training dataset. The data rich environment of a process is great for validating your investment [indiscernible] And justifying your next project. And if you work in a highly regulated industry, this visibility might be a prerequisite to making any use of AI Finally, my sixth reason Appian makes AI scalable. A process platform isn't just a workflow, it's an application environment Appian gives AI up to date security certifications. And interface usable on any mobile device. [indiscernible] DDIL capability and auto scale for usage spikes. That's why top global organizations run their most critical and complex processes on [indiscernible] Our customers include over half the top life sciences asset managers and insurance companies, [indiscernible] [indiscernible] every U. S. Government cabinet level agency.

21m 2s

Speaking of the federal government, there's a lot of change in that market right now.

21m 5s

We are cautiously optimistic about the opportunity these changes may create. For twenty five years, Appian has been a vehicle for efficiency and modernization. [indiscernible] Our Army Knowledge Online deployment was in its day the world's largest Internet. We rescued a portion of the Affordable Care Act from a faulty technology implementation. We've become an acquisition management standard for civilian defense and state agencies. We advance efficiency from optimizing how money is spent to maximizing the efficacy of each [indiscernible] For example, a U. S. Military branch and longtime customer expanded its use of Appian into a new mission area this quarter. This group runs core operations like logistics, finances and supply chain management on a series of legacy enterprise resource planning systems. The organization will consolidate these systems into a single Appian view for hundreds of thousands of users and expects to save tens of millions of dollars in [indiscernible] Happiant continues to upsell our existing customer base by launching new products and identifying new use cases Two thirds of our customers at the beginning of twenty twenty four purchased more software during the year. We hired we launched a tiered pricing structure last February to monetize advanced functionality like AI.

22m 20s

Almost half of our new customers bought in above the base tier. Going forward, we hope to increase that share and to convert more existing customers. A leading U. S. Insurance providers, one of our existing customers that upgraded its life The group has been using Appian for more than a decade to manage risk and compliance in automate processes across its enterprise. The customer used Appian to expand its reinsurance business practice and generate an additional $2,000,000,000 in revenue annually. This quarter, the customer purchased a 7 figure upgrade and plans to widely deploy new capabilities like Appian AI agents. My last customer example is a medical transportation and emergency response company. I mentioned them in Q2 when they became a new Appian customer. The group has since reduced its appeal disputes processing times by 88%. Using Appian. Now the firm signed a 7 figure software deal in Q4 to integrate siloed systems and orchestrate its full claims lifecycle. And now I'll conclude my prepared remarks. This year, Appian's focus is on the basics, our core principles, our market identity, our financial goals, our street [indiscernible] We believe we have an opportunity for growth. Being a leader in a growing and changing market.

23m 43s

Growth remains our priority. If you'd like to learn more about Appian, the best place to go is our Annual Conference Appian World. This year, we're meeting in Denver from April 27 to thirty. You're all invited and I hope to see you there. Now let's talk about the financials with Mark.

24m 1s

Welcome back, Mark.

24m 3s

Thanks, Matt.

24m 4s

And thank you to everyone joining us today.

24m 7s

I'll review the financial highlights for the quarter and then we'll provide guidance for Q1 and the full year 2025.

24m 13s

We finished 2024 on a high note.

24m 16s

With our key metrics of cloud subscription revenue and adjusted EBITDA coming in above the high end of our guidance ranges. Strength was broad based across our key industry verticals with contributions from both new and existing customers.

24m 31s

Cloud subscription revenue was $98,900,000 an increase of 19% year over year. Total subscriptions revenue was $136,800,000 an increase of 18%. On a constant currency basis, total subscriptions revenue grew a similar 18% year over year.

24m 48s

Professional services revenue was $29,900,000 an increase of 1% year over year. As previously noted, services revenue can be volatile from quarter to quarter a few large projects can influence performance. Our professional services continues to be a strategic offering focusing on driving customer success and enabling partners. Over the long term, we expect professional services revenue to continue to decline as a percentage of total revenue.

25m 17s

Subscriptions revenue represented 82% of total revenue compared to 80% in the year ago period and also 80% in the prior quarter.

25m 25s

Total revenue was $166,700,000 an increase of 15% year over year. On a constant currency basis, total revenue grew 14% year over year. Our cloud subscription revenue retention rate was 116% as of year end compared with 119% a year ago and 117% in the prior quarter. We continue to target a cloud subscription driven retention rate 110% to 120% on a quarterly basis. Our international operations contributed 35% of total revenue compared to 36% in the year ago period. Cloud software net new ACV bookings were approximately 65% of total net new software bookings in Q4 compared to 80% in the prior year.

26m 11s

We had a higher mix of net new on prem ACV in Q4 than prior periods predominantly in the Let's turn to our profitability metrics.

26m 22s

Non GAAP gross margin was 80% compared to 78% in the year ago period and 77% in the prior quarter.

26m 30s

Our subscriptions non GAAP gross profit margin compared to 91% in the year ago period and 89% in the prior quarter.

26m 38s

This margin remains best in class in enterprise software. Professional services non GAAP gross margin was 31% compared to 26% in the year ago period and 30% in the prior quarter. Down 1% from $114,000,000 in the year ago period. Adjusted EBITDA was positive $21,200,000 versus our guidance of positive $6,000,000 and $8,000,000 and compared to a positive $1,000,000 in the year ago period. Reasons for outperformance relative to our guide included greater than expected high margin on prem revenue, offset by lower than expected low margin professional services revenue. In addition, some of our forecasted Q4 cloud investments and employee related costs were shifted into Q1 and our marketing spend was more efficient than previously expected.

27m 33s

In the fourth quarter, we had approximately $14,300,000 of foreign exchange losses compared to $11,100,000 in foreign exchange gains in the same period a year ago. We don't forecast movements in FX rates, therefore they aren't considered in our guidance.

27m 50s

Non GAAP net loss was $2,200,000 or breakeven $0 per share compared to non GAAP net income of $4,900,000 or $0.06 per diluted share for the fourth quarter of twenty twenty three. This is based on 740,000.00 diluted shares outstanding for the quarter [indiscernible] for the fourth quarter of twenty twenty four and 73,300,000.0 diluted shares outstanding for the fourth quarter of twenty twenty three. [indiscernible] Turning to our balance sheet. As of 12/31/2024, cash and cash equivalents and investments were $159,900,000 compared with $159,000,000 as of the close of the prior year. For the fourth quarter, cash provided by operations was $13,900,000 compared to usage of $8,200,000 for the same period last year.

28m 39s

Total deferred revenue was $287,200,000 as of 12/31/2024, an increase of 19% from the year ago period. As we have stated on past calls, the majority of our customers are invoiced on an annual upfront basis, We also have large customers that are billed quarterly or even monthly. Due to the variability of our billing terms, changes in our deferred revenue are generally not indicative of our business momentum.

29m 5s

Let me briefly recap our full year 2024 results.

29m 9s

Cloud subscription revenue was $368,000,000 representing 21% growth year over year. On a constant currency basis, cloud subscription revenue grew 20%. Total subscriptions revenue for the year was $490,600,000 an increase of 19% compared to 2023. On a constant currency basis, Professional services revenue $617,000,000 up 13% compared to last year. Adjusted EBITDA was positive $28,300,000 compared to a loss of $44,800,000 in 2023. Non GAAP net loss was $25,600,000 in 2024 or a loss of $0.35 per diluted share compared to non GAAP net loss of $59,200,000 in 2023 or a loss of $0.81 per share. These figures are based on $73,000,000 and 73,100,000.0 outstanding for 2024 and 2023 respectively. For the full year 2024, cash provided by operating activities was $6,900,000 versus a cash usage of $110,400,000 in the prior year.

30m 31s

As a reminder, included in last year's cash usage was the one time $57,300,000 premium payment for the judge preservation insurance policy.

30m 43s

We continue to believe cloud subscription revenue is a better indicator of our business momentum than billings or remaining performance obligations or RPO. The latter metrics can fluctuate based on the timing of invoicing, seasonality of on prem license revenue and the duration of customer contracts. The true scale of the business is represented by subscriptions revenue, which includes support in all software subscription revenue regardless of whether the customer deploys to the Appian cloud their private cloud or on prem. Now turn to guidance. For the first quarter twenty twenty five quad subscription revenue is expected to be between 97 and $99,000,000 representing year over year growth between 1214%. Total revenue is expected to be between $162,000,000 representing year over year growth between 89%. Adjusted EBITDA for the first quarter twenty twenty five is expected to be between positive $8,000,000 and $10,000,000 Non GAAP earnings per share is expected to be between $0.02 and $0.05 This assumes 74,700,000.0 fully diluted weighted average shares outstanding. For the full year 2025, Cloud's $1.04 $19,000,000 and $421,000,000 representing year over year growth of 14%.

32m 3s

Total revenue is expected to be between $680,000,000 and $684,000,000 representing year over year growth of 10%.

32m 11s

Adjusted EBITDA is expected to range between positive $38,000,000 and $42,000,000 Non GAAP earnings per share is expected to be between $0.17 and $0.22 This assumes 75,100,000.0 fully diluted weighted average shares outstanding. First, we expect that Q1 professional services revenue compared to a year ago. For the full year, we expect professional services revenue will be [indiscernible] or will increase by low single digit rate compared to a year ago. Second, we anticipate that on prem license revenue will grow by a low single digit percentage on a year over year basis and will track seasonality that is consistent with prior periods. Third, we expect our Q2 adjusted EBITDA to be a loss.

32m 59s

Due to the combination of on prem license, seasonality and the cost of running our annual user conference, Appian World. Fourth, total other income and interest expense will be approximately $4,000,000 in Q1 and $15,000,000 for the full year 2025.

33m 16s

Fifth, capital expenditures will be between $1,000,000 and $1,500,000 in Q1 and between $3,000,000 and $4,000,000 for the full year of 2025.

33m 24s

Sixth, our guidance assumes FX rates as of February 10, 2025. Finally, we're making a change in 2025 We're removing foreign exchange gains and losses from our non GAAP EPS calculation. And with that, we'll turn it to questions.

33m 58s

Our first question comes from Sanjit Singh with Morgan Stanley. Your line is open.

34m 5s

Yes. Thanks for taking the questions. And congrats on a strong 2024. On the Q4 performance, there did seem to be a lot of strength in sort of the on premise business. You called out strength in the public sector vertical, specifically, which sort of begs the question, just given all the uncertainty with Doge and U. S. Federal spending, what sort of the underlying assumption in terms of the guidance about public sector overall, but U. S. Federal going into next year, how do you feel about We feel cautious about it. And that's our nature. In a state of uncertainty, we want to be careful. I cannot forecast the outcome of Doge, the impact that those rearrangements going to have I love the the principles of efficiency and modernization. But how those principles will translate into the buying environment, I cannot yet predict. And I think it's important Sanjay for modeling purposes that the 65% cloud, 35% on prem was an anomaly. We expect that the ratio to go back to be consistently about 80% cloud 20% on prem for next year. We just had a couple of large deals in the public sector that skewed [indiscernible] Great.

35m 28s

And then just to follow-up, Matt, on some of the case studies that you highlighted in your broader agent strategy. As we look into 2025, from a product roadmap perspective, what can we expect in terms of more skills, you announced the skills package, in the last couple of years, but broadly on the agent strategy, what can we expect the customer base to be seeing from innovation standpoint on the agent front?

35m 59s

Yes. I pointed out that in the world of AI, there is a imbalance between excitement [indiscernible] results. And I think that as severe as that imbalance might be, it gets even stronger when you talk about agents. Our goal is to teach people that agents can be valuable. When they're structured you've got guardrails, when their actions are far reaching, when you narrow the chances that that improvisation will occur and fail, we can make practical value and I want to elevate that. I want to expose people to the value we're creating, the real value with agents. And so our goal is to show this practicality. Some of us like to say that our goal is to be boring with AI because real productive AI is is less of a flight of fancy and instead just going to where the work already is and improving how we handle it with AI. It's kind of boring, right? It doesn't really change the way your business runs. It just makes it run a lot stronger. So our intention is to be practical and even boring in the way we solve real problems these new technologies.

37m 14s

Thank you. Our next question comes from Steve Enders with Citi.

37m 19s

Your line is open. Okay, great. Thanks for taking the questions this morning. And Mark, good to hear you back on the call here. I guess I want to start on the AI point and guess follow-up on the prior question. But guess, how do you kind of see this dynamic playing out of customers, I guess, kind of understanding the Appian approach to AI and understanding kind of embedding this embedding the UGN experience into into the process pipeline versus I guess other approaches that are out there in the market?

38m 4s

Yes. I think we've got first of all, everybody thinks about AI in a different way. Some people are thinking Copilot, some people are thinking chatbots, some people are talking about agent force. We're thinking about Appian a distinctive way. And I believe that the way we approach it stacks up very well value wise results wise against any other vision around the way AI should be used. Ours allows you to deploy AI to where work is happening and therefore to put it right in the midst of things. AI shouldn't stand to the side and be your butler and help out when there's when something anomalous happens or it deserves to be in the absolute center of work. As an economy, we're going to spend as much money as we're spending on AI, This should be an absolute centerpiece to the way we address big flows of work. And so I think our approach is intuitive and even obvious when you think about it. Where does AI belong? Well, of course, it belongs exactly where the greatest amount of work is done in value is created. So that's our philosophy and we're going to make our case [indiscernible] demonstrations.

39m 16s

We're going to make our case through publicized success stories and word-of-mouth that's how we'll win this argument.

39m 27s

Okay. I guess maybe that dovetails into question just on the changes in the go to market that have taken place over the past year or so and in the new, CRO coming in. I guess how are you kind of feeling about productivity rates from the changes that have been made? And how are you kind of thinking about further further evolution of the go to market moving forward Yes. Well, first of all, I feel great about the progress we're making. And [indiscernible] we're getting back to first principles, right? We're [indiscernible] focus and discipline and leadership Appian we're getting the right people doing the right things And I'm very encouraged by the movements that we've made. And I think that higher productivity can only result from Great. Thanks for taking the questions. Thank you. Our next question comes from Derek Wood with Citi Cowen. Your line is open.

40m 39s

Great. Thank you. Matt, I guess my first question, when it comes to data fabric, and tapping into various data sources to bring more intelligence into the Appian platform. Can you talk about what the common data sources customers are looking to get access to and what vendors or you're working closely with when it comes to building connectors and APIs and and trying to bring more different data sources into the Appian platform?

41m 6s

Yes. First of all, we see this as a major advantage for our technology. Over other firms. Our ability to access the distributed data that exists in every major enterprise differentiates us from our competitors who typically wish to assemble the data to aggregate it in one place or under their control before they can properly learn from it or interact with it. So we're reaching across the enterprise relational databases, systems, important software, textual repositories, especially with AI text has become a really important source of information. We're We're at We're a universal connector and we're broadly integrated with all these systems. And I think that that tolerance for data diversity gives us an edge.

42m 1s

Got it. Thank you. Maybe one for Mark. Just hoping to get a little more color on demand trends across core verticals, financial services, government, life sciences, how the quarter went, how you're feeling about pipelines and even underneath some of those verticals, areas like in insurance and pharma, I think are newer focuses just checking in on traction there as well.

42m 26s

I'd say that the four key verticals financial services, public sector, insurance and life sciences I'd say that the performance for Q4 and the pipeline were equally distributed amongst those those top four. We also had success in other verticals like energy or manufacturing and education, etcetera. But those are the top four. So pipeline looks pretty good. And the performance speaks for itself.

42m 57s

Okay. Thank you.

43m 2s

Thank you. Our next question comes from Raimo Lenschow With Barclays. Your line is open. Hey, thank you. Congrats from UBS well. Great Q4. Two questions.

43m 13s

One for Matt, one for Mark. Matt, if you think about AI and your offering, I saw your presentation was really kind of thorough. And give us a good idea, but the question I was like how do you think about pricing your agents and how is pricing evolving around AI with these agents? Is this kind of outcome based? Is it I don't think it's perceived, etcetera. You think about your talk about your thinking there, please? And then one for Mark.

43m 44s

Your NRR on cloud tick down, it touch again. I know it's a lagging indicator. When you think that number settles down or were there anything was there anything in Q3 that might have affected that number? All right. I'll go first.

43m 56s

With regards to how do you price agents, so you price them by usage. That seems to be where the industry is coming down also. It's just request flow to agents. However, I'll add that we're going to subsidize use of agents for the time being. So we're going to going to encourage customers to make more use of them so that the value can be demonstrated, so that we can have a higher volume of adoption. So what our eventual price may be and what our prices right now may not be the same.

44m 29s

And as for the NRR, it bounces around a little bit, Raimo, you know that.

44m 35s

It's well within the range that we've stated $110,000,000 to 120 And I think more importantly is the gross renewal rate is 99%, which is best in class, right?

44m 51s

Thank you. Our next question comes from Nick Altman with Scotiabank. Your line is open.

45m

Awesome. Thank you. Matt, you mentioned half of net new customers bought in above the base tier for the new tiered pricing structure. And so can you maybe just talk about the installed base and how those customers are resonating with the new tiered pricing structure? And is there any way to think about what percentage of the installed base is on the new tiered pricing structure today and where that could head in 2025?

45m 26s

Yes, let me comment on this. We did not go after our installed base very hard with the new pricing structure. We did not disrupt the contracts and commercial relationships that we had in place in order to impose that structure. I feel like that the best opportunity to to bring our installed base higher is when there's a feature they feel that they need. And if we can make a good enough case around certain AI functionality, that might be the inflection point we need to bring them willingly onto the new price structure. And then there's some other possibilities as well. But But I'd love to see us do more. With the installed base. We absolutely have our eye on that. I think the they've honestly got a nice consumer surplus that I would like to split with them. And we're we're looking for ways to to craft and share with them a pricing system that will allow us to benefit from their success.

46m 31s

Okay.

46m 32s

Great. And then just going back to Steve's question around the go to market But can you just maybe talk about the messaging to the the go to market function coming out of sales kickoff? Are there any new incentives or tweaks in place this year versus 2024 that you'd be willing to share? Yes. Hey, that was the best sales kickoff we've had in five years.

46m 57s

The ones the one we just had. And it was the best because it was focused on the fundamentals. As I say, straightforward things, but things you've got to get right. Right people doing the right things, basics of who we are, what we stand for, what our customers benefit, how to find leverage and monetize it. It was the core things. And And there was a [indiscernible] I came away from that very encouraged. [indiscernible] where we can go. And the funny thing is, we're asserting these fundamentals in the midst of a moment when when there's so much opportunity. The change, the greater value that we're creating right now the need for clarity in a in a marketplace that's echoing with messages about AI it's essential that our identity like the process company and that our message, right, focused on putting AI in a process be extremely intuitive and clear. And so that's the kind of thing that we're getting across to the team. You asked about the incentives. Yes, the incentives have been tweaked definitely. Right. So we've got more incentive for the most important is larger deals, right? We're shifting incentives in order to motivate larger transactions and more strategic adoptions That's the most essential thing.

48m 9s

That's came out of our new incentive structure.

48m 12s

But But yes, I feel that all of it is pointing in the right direction.

48m 17s

Great.

48m 27s

And our next question comes from Devin Ah with KeyBanc Capital Markets. Your line is open. Great. Thanks for taking my question. Maybe just one for me. I wanted to get an update on solutions, particularly around the GAM suite. I mean, you mentioned you saw particular strength from federal in 4Q.

48m 48s

Curious how the adoption of GAMSuite has been trending, but also kind of what are your expectations around contribution from that? In 2025, seems like that product would be really well positioned under increasing efficiency focus from the federal government. Thank you.

49m 2s

I feel the same way about the potential for Appian I can back it up somewhat by saying that we had a substantial pipeline. We don't get specifics about pipeline, but we had a strong and his [indiscernible] pipeline in GAM coming into the year. And of course, that's before the Doge activities and the intense focus on efficiency that we're seeing now. So I like where we stood at the top of the year. We've got a lot of [indiscernible] Thank you.

49m 51s

There are no further questions at this time. This does conclude the program Appian you may now disconnect. Everyone, have a great day.

Key Insights

Q4 2024 Financial Highlights: Appian reported a 19% YoY growth in cloud subscription revenue to $98.9M, total subscription revenue grew 18% to $136.8M, and total revenue increased 15% to $166.7M. Adjusted EBITDA was $21.2M, and non-GAAP gross margin reached 80%, the highest since IPO.
Full-Year 2024 Performance: Cloud subscription revenue grew 21% YoY to $368M, total subscription revenue increased 19% to $490.6M, and total revenue rose 13% to $617M. Adjusted EBITDA for the year was $28.3M, compared to a loss of $44.8M in 2023.
2025 Guidance: For Q1 2025, cloud subscription revenue is expected to grow 12-14% YoY to $97-99M, with total revenue projected at $162-164M (8-9% YoY growth). Full-year 2025 guidance includes cloud subscription revenue of $419-421M (14% YoY growth) and total revenue of $680-684M (10% YoY growth). Adjusted EBITDA is expected to range between $38M and $42M.
AI Integration and Strategy: Appian emphasized its focus on embedding AI into processes to enhance efficiency and scalability. The company highlighted six key benefits of AI within its platform, including ease of deployment, structured roles for AI, data provisioning, guardrails for actions, visibility, and scalability. Appian plans to subsidize AI agent usage initially to drive adoption.
Go-to-Market and Customer Expansion: Appian reported strong performance across key verticals (financial services, public sector, insurance, life sciences) and highlighted successful upselling efforts, with two-thirds of customers purchasing more software in 2024. The company also introduced a tiered pricing structure, with nearly half of new customers opting for higher tiers.

Recent Transcripts

Cloud subscription revenue grew 19%, with total revenue up 15% year-over-year.

Income Statement

Revenue

	2020	2021	2022	2023	2024
Revenue	$305M	$369M	$468M	$545M	$617M
Cost of Revenue	$89M	$104M	$133M	$143M	$150M
Gross Profit	$216M	$265M	$335M	$402M	$467M
Gross Profit %	71%	72%	72%	74%	76%
R&D Expenses	$70M	$98M	$139M	$153M	$155M

2020

2021

2022

2023

2024

Revenue

$305M

$369M

$468M

$545M

$617M

Cost of Revenue

$89M

$104M

$133M

$143M

$150M

Gross Profit

$216M

$265M

$335M

$402M

$467M

Gross Profit %

71%

72%

74%

76%

R&D Expenses

$70M

$98M

$139M

$153M

$155M

Cash Flow

Net Income

	2020	2021	2022	2023	2024
Net Income	-$33M	-$89M	-$151M	-$111M	-$92M
Dep. & Amort.	$5.9M	$5.7M	$7.3M	$9.5M	$10M
Def. Tax	-$184K	-$498K	-$1.1M	-$1.5M	-$899K
Stock Comp.	$15M	$24M	$39M	$43M	$39M
Chg. in WC	$3.9M	$5.1M	-$2M	-$40M	$26M

2020

2021

2022

2023

2024

Net Income

-$33M

-$89M

-$151M

-$111M

-$92M

Dep. & Amort.

$5.9M

$5.7M

$7.3M

$9.5M

$10M

Def. Tax

-$184K

-$498K

-$1.1M

-$1.5M

-$899K

Stock Comp.

$15M

$24M

$39M

$43M

$39M

Chg. in WC

$3.9M

$5.1M

-$2M

-$40M

$26M

Balance Sheet

Cash

	2020	2021	2022	2023	2024
Cash	$112M	$101M	$148M	$149M	$119M
ST Investments	$110M	$55M	$48M	$9.7M	$41M
Cash & ST Inv.	$222M	$156M	$196M	$159M	$160M
Receivables	$97M	$130M	$166M	$172M	$195M
Inventory	$0	$0	$32M	$0	$0

2020

2021

2022

2023

2024

Cash

$112M

$101M

$148M

$149M

$119M

ST Investments

$110M

$55M

$48M

$9.7M

$41M

Cash & ST Inv.

$222M

$156M

$196M

$159M

$160M

Receivables

$97M

$130M

$166M

$172M

$195M

Inventory

$32M

Go Deeper

Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice. · See all tickers.

OverviewOverview
News & Market InsightsNews & Market Insights
PeersPeers
Recent TranscriptsRecent Transcripts
RelatedRelated
EarningsEarnings
Income StatementIncome Statement
Cash FlowCash Flow
Balance SheetBalance Sheet

Earnings

Report Date

Feb 19, 2025

Reported Revenue

166.7M

Avg 1d Change

13.67%

Report Period

Q4 2024

Reported EPS

-0.12

Implied Move 1d

9.88%

Transcript

11m

11m 46s

11m 58s

Matt?

11m 59s

13m 46s

We equip AI to make an impact directly in the places where the heaviest and most valuable work already occurs.

13m 56s

Work happens inside of a process.

13m 59s

14m 39s

A lot of those transactions will run better when we apply AI.

14m 44s

16m

17m 20s

17m 52s

19m 17s

21m 2s

Speaking of the federal government, there's a lot of change in that market right now.

21m 5s

22m 20s

23m 43s

24m 1s

Welcome back, Mark.

24m 3s

Thanks, Matt.

24m 4s

And thank you to everyone joining us today.

24m 7s

I'll review the financial highlights for the quarter and then we'll provide guidance for Q1 and the full year 2025.

24m 13s

We finished 2024 on a high note.

24m 16s

24m 31s

24m 48s

25m 17s

Subscriptions revenue represented 82% of total revenue compared to 80% in the year ago period and also 80% in the prior quarter.

25m 25s

26m 11s

We had a higher mix of net new on prem ACV in Q4 than prior periods predominantly in the Let's turn to our profitability metrics.

26m 22s

Non GAAP gross margin was 80% compared to 78% in the year ago period and 77% in the prior quarter.

26m 30s

Our subscriptions non GAAP gross profit margin compared to 91% in the year ago period and 89% in the prior quarter.

26m 38s

27m 33s

27m 50s

28m 39s

29m 5s

Let me briefly recap our full year 2024 results.

29m 9s

30m 31s

As a reminder, included in last year's cash usage was the one time $57,300,000 premium payment for the judge preservation insurance policy.

30m 43s

32m 3s

Total revenue is expected to be between $680,000,000 and $684,000,000 representing year over year growth of 10%.

32m 11s

32m 59s

33m 16s

Fifth, capital expenditures will be between $1,000,000 and $1,500,000 in Q1 and between $3,000,000 and $4,000,000 for the full year of 2025.

33m 24s

33m 58s

Our first question comes from Sanjit Singh with Morgan Stanley. Your line is open.

34m 5s

35m 28s

35m 59s

37m 14s

Thank you. Our next question comes from Steve Enders with Citi.

37m 19s

38m 4s

39m 16s

We're going to make our case through publicized success stories and word-of-mouth that's how we'll win this argument.

39m 27s

40m 39s

41m 6s

42m 1s

42m 26s

42m 57s

Okay. Thank you.

43m 2s

Thank you. Our next question comes from Raimo Lenschow With Barclays. Your line is open. Hey, thank you. Congrats from UBS well. Great Q4. Two questions.

43m 13s

43m 44s

43m 56s

44m 29s

And as for the NRR, it bounces around a little bit, Raimo, you know that.

44m 35s

It's well within the range that we've stated $110,000,000 to 120 And I think more importantly is the gross renewal rate is 99%, which is best in class, right?

44m 51s

Thank you. Our next question comes from Nick Altman with Scotiabank. Your line is open.

45m

45m 26s

46m 31s

Okay.

46m 32s

46m 57s

48m 9s

That's came out of our new incentive structure.

48m 12s

But But yes, I feel that all of it is pointing in the right direction.

48m 17s

Great.

48m 27s

48m 48s

49m 2s

49m 51s

There are no further questions at this time. This does conclude the program Appian you may now disconnect. Everyone, have a great day.

Key Insights

Q4 2024 Financial Highlights: Appian reported a 19% YoY growth in cloud subscription revenue to $98.9M, total subscription revenue grew 18% to $136.8M, and total revenue increased 15% to $166.7M. Adjusted EBITDA was $21.2M, and non-GAAP gross margin reached 80%, the highest since IPO.
Full-Year 2024 Performance: Cloud subscription revenue grew 21% YoY to $368M, total subscription revenue increased 19% to $490.6M, and total revenue rose 13% to $617M. Adjusted EBITDA for the year was $28.3M, compared to a loss of $44.8M in 2023.
2025 Guidance: For Q1 2025, cloud subscription revenue is expected to grow 12-14% YoY to $97-99M, with total revenue projected at $162-164M (8-9% YoY growth). Full-year 2025 guidance includes cloud subscription revenue of $419-421M (14% YoY growth) and total revenue of $680-684M (10% YoY growth). Adjusted EBITDA is expected to range between $38M and $42M.
AI Integration and Strategy: Appian emphasized its focus on embedding AI into processes to enhance efficiency and scalability. The company highlighted six key benefits of AI within its platform, including ease of deployment, structured roles for AI, data provisioning, guardrails for actions, visibility, and scalability. Appian plans to subsidize AI agent usage initially to drive adoption.
Go-to-Market and Customer Expansion: Appian reported strong performance across key verticals (financial services, public sector, insurance, life sciences) and highlighted successful upselling efforts, with two-thirds of customers purchasing more software in 2024. The company also introduced a tiered pricing structure, with nearly half of new customers opting for higher tiers.

Appian Corporation Price & Performance (APPN)

Stock Performance

Open

High

Low

Market Cap

P/E Ratio

Volume

Year High

Year Low

News & Market Insights

What's Happening

Peers

Earnings

Report Date

Reported Revenue

Avg 1d Change

Report Period

Reported EPS

Implied Move 1d

Transcript

Key Insights

Recent Transcripts

Income Statement

Cash Flow

Balance Sheet

Go Deeper

Related

News & Market Insights

Go Deeper

Recent Transcripts

Earnings

Report Date

Reported Revenue

Avg 1d Change

Report Period

Reported EPS

Implied Move 1d

Transcript

Key Insights