Slide 1: Q3 2019 Earnings Call Presentation
Q3 2019 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 2019 Highlights
Q3 2019 Highlights • Business Highlights • European territory grew subscription revenue 65% compared to Q3 2019 and contributed a third of new logos in the quarter • Financial Services remains our largest industry with 48% subscription revenue growth compared to Q3 2018 • US Federal is our second la
Slide 4: Subscription Revenue
Subscription Revenue USD Millions Y/Y Growth in % 40.4 38.0 33.8 33.6 29.4 42% 44% 32% 41% 38% Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 44
Slide 5: Total Revenue
Total Revenue USD Millions 69.4 66.9 60.2 59.6 54.9 27.8 27.7 25.1 24.7 24.0 1.2 1.2 1.3 1.3 1.5 38.0 40.4 33.8 33.6 29.4 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Subscription Revenue Perpetual Software & Support Professional Services *Total revenue may not foot due to rounding 55
Slide 6: Subscription Revenue Retention
Subscription Revenue Retention 125% 117% 117% 117% 119% 116% 0% Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 66
Slide 7: Gross Margins
Gross Margins* Subscriptions, Software, Professional Overall and Support Services 90% 91% 90% 90% 90% 64% 65% 63% 66% 66% 31% 29% 32% 31% 25% Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2018 2018 2019 2019 2019 2018 2018 2019 2019 2019 2018 2018 2019 2019 2019 *Non-GAAP - Data does not include any
Slide 8: Q3 2019 Highlights
Q3 2019 Highlights Subscription Revenue ($MM) Subscription Overall Gross Margins** Revenue Retention* ints +200 basis po rowth 64% 66% G 40.4 38% 119% 29.4 Q3 2018 Q3 2019 Q3 2018 Q3 2019 *As of September 30, 2019 **Non-GAAP - Data does not include any stock-based compensation expense 8
Slide 9: Guidance
Guidance* In $ Millions except for EPS Q4 2019 FY 2019 Subscription Revenue 42.0 – 42.5 154.0 – 154.5 Subscription Revenue Growth Y/Y 24% - 26% 33% - 34% Total Revenue 69.1 – 70.1 265.0 – 266.0 Total Revenue Growth Y/Y 15% - 16% 17% Non-GAAP Loss from Operations (10.0) – (9.5) (35.0) – (33.0) Non-GA
Slide 10: Appendix
Appendix 10
Slide 11: Balance Sheet
Balance Sheet As of As of September 30, December 31, $ in thousands 2019 2018 (unaudited) Assets Cash and cash equivalents $ 165,554 $ 94,930 Accounts receivable, net of allowance of $600 70,792 79,383 Deferred commissions, current 18,468 14,020 Other current assets 10,200 21,293 Property and equipm
Slide 12: Income Statement
Income Statement Three Months Ended September 30, Nine Months Ended September 30, $ in thousands, except for shares 2019 2018 2019 2018 (unaudited) (unaudited) Revenue: Subscriptions, software and support $ 41,599 $ 30,905 $ 115,767 $ 90,904 Professional services 27,788 24,043 80,110 75,623 Total re
Slide 13: Reconciliation of Non-GAAP Measures
Appian Corporation Reconciliation of Non-GAAP Measures (unaudited) The following table presents a reconciliation of GAAP net loss to non-GAAP net loss for each of the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, $ in thousands, except for shares 2019 2018 2019
Slide 14: Reconciliation of non-GAAP operating loss
The following table presents a reconciliation of GAAP operating loss to non-GAAP operating loss for each of the periods indicated (unaudited): Three Months Ended September 30, Nine Months Ended September 30, $ in thousands, except for shares 2019 2018 2019 2018 Reconciliation of non-GAAP operating l
Slide 15: ASC 606 – What is Changing?
ASC 606 – What is Changing? We will adopt a modified retrospective approach effective in the 2019 10-K filing. Current Treatment Under ASC 606 Perpetual License Upfront Upfront On-Premises Term License Ratable Upfront SaaS/ Appian Cloud Ratable Ratable Commissions Deferred Deferred 15
Slide 16: Appian
Appian