Slide 1: Q2 2019 Earnings Call Presentation
Q2 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: Q2 2019 Business Highlights
Q2 2019 Business Highlights • Theme of Appian World was ‘Low-code has arrived’ • 75% more reporters attended this year than last • 68 articles published globally, including multiple articles in Forbes and ComputerWorld • IDC study found that Appian customers break even in 7 months and attain 509% RO
Slide 4: Q2 2019 Financial Highlights
Q2 2019 Financial Highlights • Revenue • Subscription Revenue was $38.0m in Q2 2019, growth of 41% over Q2 2018 • Total Revenue was $66.9 in Q2 2019, growth of 12% over Q2 2018 • Retention • Subscription Revenue Retention was 117% as of June 30, 2019 • Gross Margins* • Subscriptions, Software and Su
Slide 5: Subscription Revenue
Subscription Revenue USD Millions Y/Y Growth in % 38.0 33.8 33.6 29.4 27.0 36% 42% 44% 32% 41% Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 55
Slide 6: Total Revenue
Total Revenue USD Millions 66.9 59.9 60.2 59.6 54.9 27.7 26.8 25.1 24.7 24.0 1.2 1.3 1.3 6.0 1.5 38.0 33.8 33.6 27.0 29.4 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Subscription Revenue Perpetual Software & Support Professional Services *Total revenue may not foot due to rounding 66
Slide 7: Subscription Revenue Retention
Subscription Revenue Retention 125% 119% 117% 117% 117% 116% 0% Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 77
Slide 8: Gross Margins
Gross Margins* Subscriptions, Software, Professional Overall and Support Services 92% 90% 91% 90% 90% 64% 64% 65% 63% 66% 31% 31% 29% 32% 25% Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2018 2018 2018 2019 2019 2018 2018 2018 2019 2019 2018 2018 2018 2019 2019 *Non-GAAP - Data does not include any
Slide 9: Q2 2019 Highlights
Q2 2019 Highlights Subscription Revenue ($MM) Subscription Overall Gross Margins** Revenue Retention* 38.0 64% 66% 27.0 117% Q2 2018 Q2 2019 Q2 2018 Q2 2019 *As of June 30, 2019 **Non-GAAP - Data does not include any stock-based compensation expense 9
Slide 10: Guidance
Guidance* In $ Millions except for EPS Q3 2019 FY 2019 Subscription Revenue 38.8 – 39.0 153.0 – 154.0 Subscription Revenue Growth Y/Y 32% - 33% 32% - 33% Total Revenue 65.0 – 65.5 260.5 – 262.5 Total Revenue Growth Y/Y 18% - 19% 15% - 16% Non-GAAP Loss from Operations (10.0) – (9.5) (35.0) – (33.0)
Slide 11: Appendix
Appendix 11
Slide 12: Balance Sheet
Balance Sheet As of As of June 30, December 31, $ in thousands 2019 2018 (unaudited) Assets Cash and cash equivalents $ 81,101 $ 94,930 Accounts receivable, net of allowance of $600 70,381 79,383 Deferred commissions, current 17,492 14,020 Other current assets 7,707 21,293 Property and equipment, ne
Slide 13: Income Statement
Income Statement Three Months Ended June 30, Six Months Ended June 30, $ in thousands, except for shares 2019 2018 2019 2018 (unaudited) (unaudited) Revenue: Subscriptions, software and support $ 39,259 $ 33,047 $ 74,168 $ 59,999 Professional services 27,652 26,836 52,322 51,580 Total revenue 66,911
Slide 14: 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 June 30, Six Months Ended June 30, $ in thousands, except for shares 2019 2018 2019 2018 Reconc
Slide 15: 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 June 30, Six Months Ended June 30, $ in thousands, except for shares 2019 2018 2019 2018 Reconciliation of non-GAAP operating loss: GAAP o
Slide 16: 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 16
Slide 17: Appian
Appian