Slide 1: Q3 2020 Earnings Call Presentation
Q3 2020 Earnings Call Presentation Matt Calkins, Founder & CEO Mark Lynch, 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 financial
Slide 3: Q3 2020 Business Highlights
Q3 2020 Business Highlights Partners increase their contributions • More than doubled new logos year-to-date compared to the same period in 2019 • Influenced 77% of new logos during Q3 2020 • Helped us win most of our seven-figure deals in Q3 2020 Federal industry grows • Doubled software bookings c
Slide 4: Q3 2020 Financial Highlights
Q3 2020 Financial Highlights Revenue • Cloud Subscription Revenue was $34.3m in Q3 2020, growth of 40% over Q3 2019 • Subscriptions Revenue was $50.8m in Q3 2020, growth of 34% over Q3 2019 • Total Revenue was $77.3m in Q3 2020, growth of 17% over Q3 2019 Retention • Cloud Subscription Revenue Reten
Slide 5: Cloud Subscription Revenue
Cloud Subscription Revenue USD Millions 34.3 29.6 28.4 26.4 24.6 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 55
Slide 6: Total Revenue
Total Revenue* USD Millions 78.9 77.3 68.6 66.8 66.2 28.4 26.5 26.5 25.4 28.4 4.3 4.6 4.1 4.5 11.8 4.0 17.8 11.6 7.4 9.2 34.3 26.4 28.4 29.6 24.6 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Cloud Subscription Revenue On-prem Subscription Revenue Maintenance & Support Professional Services *Total revenue
Slide 7: Cloud Subscription Revenue Retention
Cloud Subscription Revenue Retention 125% 121% 115% 115% 115% 113% 100% Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 77
Slide 8: Mix of Subscriptions and Professional Services Revenue
Mix of Subscriptions and Professional Services Revenue 70% 65% 60% 55% 50% 45% 40% 35% 30% 25% 20% IPO Q3 Q1 Q3 Q1 Q3 Q1 Q3 2017 2018 2018 2019 2019 2020 2020 Subscriptions Professional Services 88
Slide 9: Gross Margins
Gross Margins* Subscriptions Professional Overall Services 89% 89% 90% 89% 90% 70% 73% 67% 69% 64% 40% 34% 35% 36% 32% Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2019 2019 2020 2020 2020 2019 2019 2020 2020 2020 2019 2019 2020 2020 2020 *Non-GAAP - Data does not include any stock-based compensatio
Slide 10: Q3 2020 Highlights
Q3 2020 Highlights Cloud Subscription Revenue ($MM) Cloud Subscription Overall Gross Margins** Revenue Retention* 34.3 73% 115% 64% 24.6 Q3 2019 Q3 2020 Q3 2019 Q3 2020 *As of September 30, 2020 **Non-GAAP - Data does not include any stock-based compensation expense 10
Slide 11: Guidance
Guidance Given on November 5, 2020 In $ Millions except for EPS Q4 2020 FY 2020 Cloud Subscription Revenue 35.0 – 35.5 127.3 – 127.8 Cloud Subscription Revenue Growth Y/Y 33% - 35% 34% Total Revenue 73.0 – 74.0 296.0 – 297.0 Total Revenue Growth Y/Y 6% - 8% 14% Adjusted EBITDA Loss (11.0) – (10.0) (
Slide 12: Appendix
Appendix 12
Slide 13: Balance Sheet
Balance Sheet As of As of September 30, December 31, 2020 2019 (unaudited) $ in thousands Assets Cash and cash equivalents $ 251,088 $ 159,755 Accounts receivable, net of allowance of $1,200 and $600 as of September 30, 2020 and December 31, 2019, respectively 89,219 70,408 Deferred commissions, cur
Slide 14: Income Statement
Income Statement Three monds ended September 30, Nine months ended September 30, 2020 2019 2020 2019 (unaudited) (unaudited) $ in thousands, except for shares Revenue: SaaS (cloud) subscriptions $ 34,312 $ 24,573 $ 92,282 $ 68,647 Term license (on prem) subscriptions 11,830 9,199 37,002 28,859 Maint
Slide 15: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 (unaudited) (unaudited) $ in thousands, except for shares Reconciliation of non-GAAP operating loss: GAAP operating loss $ (7,515) $ (12,287) $ (28,216) $ (37,406) Add back: Stock
Slide 16: Stock-Based Compensation Expense
Stock-Based Compensation Expense Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 (unaudited) (unaudited) $ in thousands Cost of revenue: Subscriptions $ 236 $ 147 $ 678 $ 462 Professional services 406 243 935 2,461 Operating expenses: Sales and marketing 427 776
Slide 17: Appian
Appian