Appian Corporation · NASDAQ:APPN
Appian — Q4 2024 Earnings Presentation
29 slides from Appian's earnings presentation, Feb 19, 2025
Slide 1: Q4 2024 Earnings Call Presentation
Q4 2024 Earnings Call Presentation Matt Calkins, Founder & CEO Mark Lynch, Interim CFO
Slide 2: Disclaimer
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 financia
Slide 3: Q4 2024 Highlights
Q4 2024 Highlights. Profitability • Q4 2024 adjusted EBITDA was positive $21.2 million. Revenue • Cloud subscription revenue was $98.9 million in Q4 2024, representing growth of 19% over Q4 2023. • Subscriptions revenue was $136.8 million in Q4 2024, representing growth of 18% over Q4 2023. • Total
Slide 4: Full Year 2024 Highlights
Full Year 2024 Highlights. Profitability • 2024 adjusted EBITDA was positive $20.3 million. Revenue • Cloud subscription revenue was $368.0 million in 2024, representing growth of 21% over 2023. • Subscriptions revenue was $490.6 million in 2024, representing growth of 19% over 2023. • Total revenue
Slide 5: AI works best inside a Process
AI works best inside a Process Launch AI inside a process with just a few clicks. Easy AI
Slide 6: AI works best inside a Process
AI works best inside a Process Process gives AI a goal, a Easy team, a flow of work, exception handling, human oversight, and Structure escalation paths. AI
Slide 7: AI works best inside a Process
AI works best inside a Process Easy Structure AI Process provides access to the whole of enterprise data and regulates data Data access for privacy.
Slide 8: AI works best inside a Process
AI works best inside a Process Easy Structure AI Data Process puts guardrails on AI agents. AI becomes powerful and safe. Safety
Slide 9: AI works best inside a Process
AI works best inside a Process Easy Structure Process tracks every AI action AI makes, enabling measurement of ROI of AI investments. Analytics Data Safety
Slide 10: AI works best inside a Process
AI works best inside a Process Process provides the Easy tools and infrastructure required to scale AI usage. Tooling Structure AI Analytics Data Safety
Slide 11: AI works best inside a Process
AI works best inside a Process Easy Tooling Structure AI Analytics Data Safety
Slide 12: Cloud Gross Renewal Rate
Cloud Gross Renewal Rate. Q1 Q2 Q3 Q4 2022 99% 99% 99% 99% 99 99%% 2023 98% 98% 97% 98% 2024 99% 99% 99% 99% 12 Calculated as the the percentage of recurring cloud subscription revenue retained from existing customers for the previous trailing 12-month period.
Slide 13: Annualized Recurring Revenue ("ARR")
Annualized Recurring Revenue ("ARR"). Total ARR $250K+ ARR Customers Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 '19 '19 '19 '19 '20 '20 '20 '20 '21 '21 '21 '21 '22 '22 '22 '22 '23 '23 '23 '23 '24 '24
Slide 14: Total Revenue
Total Revenue.* 166.7 154.1 149.8 146.5 $150.0 million 145.3 29.9 30.9 29.5 32.1 7.9 33.5 7.8 6.6 7.3 7.3 29.9 21.3 $100.0 million 26.1 23.8 17.2 $50.0 million 94.1 98.9 83.1 86.6 88.4 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Cloud Subscription Revenue On-Premises Subscription Revenue Maintenance and
Slide 15: Cloud Subscription Revenue Retention Rate
Cloud Subscription Revenue Retention Rate.* 125% 119% 120% 118% 117% 116% 0% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Calculated by dividing the aggregate recurring cloud subscription revenue in the current trailing 12-month period by the aggregate recurring cloud subscription 15 revenue from the pre
Slide 16: Subscriptions vs. Professional Services Revenues
Subscriptions vs. Professional Services Revenues. IPO (Q2 2017) Q4 2024 Subscriptions Services Subscriptions Services 51% 49% 82% 18% 16
Slide 17: Non-GAAP Gross Margins
Non-GAAP Gross Margins.* Subscriptions Professional Services Overall 91% 90% 89% 89% 90% 78% 80% 76% 75% 77% 30% 30% 31% 26% 25% Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2023 2024 2024 2024 2024 2023 2024 2024 2024 2024 2023 2024 2024 2024 2024 17 * Data excludes stock-based compensation expense
Slide 18: Q4 2024 Summary
Q4 2024 Summary.* Cloud Subscription Revenue Cloud Subscription Revenue Non-GAAP Overall Gross (USD, in millions) Retention Margins* 98.9 As of December 31, 2024 % 19 83.1 78% 80% 116% Q4 2023 Q4 2024 Q4 2023 Q4 2024 18 * Data excludes stock-based compensation expense and severance costs. Refer to t
Slide 19: Full Year 2024 Summary
Full Year 2024 Summary. Cloud Subscription Revenue Cloud Subscription Revenue Non-GAAP Overall Gross (USD, in millions) Retention Margins* As of December 31, 2024 368.0 % 21 304.5 75% 77% 116% 2023 2024 2023 2024 19 * Data excludes stock-based compensation expense and severance costs. Refer to the r
Slide 20: Guidance
Guidance. Given on February 19, 2025 (in millions, except for EPS) Q1 2025 Full Year 2025 Cloud Subscription Revenue $97.0 – $99.0 $419.0 – $421.0 Cloud Subscription Revenue Growth YoY 12% – 14% 14% – 14% Total Revenue $162.0 – $164.0 $680.0 – $684.0 Total Revenue Increase YoY 8% – 9% 10% – 10% Adju
Slide 21: Appendix
Appendix
Slide 22: Balance Sheet
Balance Sheet. As of $ in thousands December 31, 2024 December 31, 2023 Assets Cash and cash equivalents $ 118,552 $ 149,351 Short-term investments and marketable securities 41,308 9,653 Accounts receivable, net of allowance 195,069 171,561 Deferred commissions, current 36,630 34,261 Prepaid expense
Slide 23: Income Statement
Income Statement. Three Months Ended December 31, Year Ended December 31, 2024 $ in thousands, except for per share data 2024 2023 2024 2023 (unaudited) Revenue Cloud subscriptions $ 98,924 $ 83,100 $ 368,030 $ 304,481 Term license subscriptions 29,925 26,106 92,188 82,282 Maintenance and support 7,
Slide 24: Stock-Based Compensation Expense
Stock-Based Compensation Expense. Three Months Ended December 31, Year Ended December 31, $ in thousands 2024 2023 2024 2023 (unaudited) Cost of revenue Subscriptions $ 207 $ 212 $ 848 $ 925 Professional services 1,310 1,457 5,674 6,055 Operating expenses Sales and marketing 1,930 2,380 8,200 10,842
Slide 25: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures. $ in thousands Lease Impairment and Lease- GAAP Stock-Based Litigation JPI Related Short-Swing Non-GAAP Measure Compensation Expense Amortization Severance Costs Charges Profit Payment Measure Three Months Ended December 31, 2024 Subscriptions cost of rev
Slide 26: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures. $ in thousands GAAP Stock-Based Litigation JPI Severance Non-GAAP Measure Compensation Expense Amortization Costs Measure Three Months Ended December 31, 2023 Subscriptions cost of revenue $ 11,071 $ (212) $ — $ — $ — $ 10,859 Professional services cost o
Slide 27: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures. $ in thousands Three Months Ended December 31, Year Ended December 31, 2024 2024 2023 2024 2023 Reconciliation of adjusted EBITDA: GAAP net loss (13,647) (10,006) (92,262) (111,441) Other expense (income), net 12,655 (12,966) 6,773 (17,603) Interest expen
Slide 28: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures. The following table reconciles our GAAP gross margin percentage to our non-GAAP gross margin percentage for our overall, subscriptions, and professional services margins. The non-GAAP adjustment represents adding back the margin impact of stock- based com
Slide 29: Slide 29