Slide 1: Q3 2022 Earnings Call Presentation
Q3 2022 Earnings Call Presentation Matt Calkins, Founder & CEO Mark Matheos, 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: Q3 2022 highlights
Q3 2022 highlights. Appian's development center in Appian closed a five-year term loan of Chennai, India opened ahead of $100 million with another $50 million schedule, with a new facility and a full available from a revolving credit facility. complement of employees. Appian's lawsuit against Pegasy
Slide 4: Days sales outstanding
Days sales outstanding. Q1 2022 Q2 2022 Q3 2022 4 Calculated as the average accounts receivable balance for the period divided by total revenue.
Slide 5: Cloud Gross Renewal Rate
Cloud Gross Renewal Rate. Q1 Q2 Q3 Q4 2022 99% 99% 99% 5 Calculated as the the percentage of recurring cloud subscription revenue retained from existing customers for the previous trailing 12-month period.
Slide 6: Annualized recurring revenue ("ARR")
Annualized recurring revenue ("ARR"). Total ARR (in millions) $250K+ ARR Customers Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 20
Slide 7: Appian Community members
Appian Community members. Q1 2022 Q2 2022 Q3 2022 7 Community members are individuals with an Appian Community profile.
Slide 8: Total revenue
Total revenue.* $120 $117.9 $114.3 million $110.1 $105.0 31.4 30.5 $92.4 33.4 29.2 5.6 6.1 25.2 5.7 5.5 19.8 5.4 24.7 14.1 $60 18.9 million 15.1 57.1 60.6 51.2 53.4 46.7 $0 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Cloud Subscription Revenue On-Premises Subscription Revenue Maintenance and Support Pro
Slide 9: Cloud subscription revenue retention
Cloud subscription revenue retention. 125% 117% 116% 117% 116% 115% 0% Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 9
Slide 10: Subscriptions vs. Professional Services revenue
Subscriptions vs. Professional Services revenue. IPO (Q2 2017) Q3 2022 Subscriptions Services Subscriptions Services 51% 49% 73% 27% 10
Slide 11: Gross margins
* Gross margins. Subscriptions Professional Services Overall 90% 90% 90% 89% 90% 73% 74% 74% 73% 71% 32% 29% 30% 26% 27% Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2021 2021 2022 2022 2022 2021 2021 2022 2022 2022 2021 2021 2022 2022 2022 11 *Non-GAAP - Data excludes stock-based compensation expen
Slide 12: Q3 2022 summary
Q3 2022 summary. Cloud Subscription Cloud Subscription Revenue Overall Gross Margins** Revenue Retention* (USD, in millions) 60.6 % 30 + 73% 73% 46.7 115% Q3 2021 Q3 2022 Q3 2021 Q3 2022 *As of September 30, 2022 12 **Non-GAAP - Data excludes stock-based compensation expense. Refer to the reconcilia
Slide 13: Guidance
Guidance. Given on November 3, 2022 (in millions, except for EPS) Q4 2022 Full Year 2022 Cloud Subscription Revenue $63.5 – $64.5 $235.0 – $236.0 Cloud Subscription Revenue Growth YoY 24% – 26% 31% – 32% Total Revenue $121.5 – $123.5 $461.0 – $466.0 Total Revenue Increase YoY 16% – 18% 25% – 26% Adj
Slide 14: Appendix
Appendix __Y 14 appian
Slide 15: Balance sheet
Balance sheet. As of $ in thousands September 30, 2022 December 31, 2021 Assets (unaudited) Cash and cash equivalents $ 51,802 $ 100,796 Short-term investments and marketable securities 40,885 55,179 Accounts receivable, net of allowance of $1,901 and $1,400, respectively 143,385 130,049 Deferred co
Slide 16: Income statement
Income statement. Three Months Ended September 30, Nine Months Ended September 30, $ in thousands, except for per share data 2022 2021 2022 2021 (unaudited) (unaudited) Revenue Cloud subscriptions $ 60,621 $ 46,699 $ 171,083 $ 128,238 Term license (on prem) subscriptions 19,773 15,114 58,543 44,290
Slide 17: Stock-based compensation expense
Stock-based compensation expense. Three Months Ended September 30, Nine Months Ended September 30, $ in thousands 2022 2021 2022 2021 (unaudited) (unaudited) Cost of revenue: Subscriptions $ 284 $ 381 $ 712 $ 973 Professional services 1,401 777 3,788 2,283 Operating expenses: Sales and marketing 2,6
Slide 18: Reconciliation of GAAP to non-GAAP measures
Reconciliation of GAAP to non-GAAP measures. Three Months Ended September 30, Nine Months Ended September 30, $ in thousands, except for per share data 2022 2021 2022 2021 (unaudited) (unaudited) Reconciliation of non-GAAP operating loss: GAAP operating loss $ (37,776) $ (22,897) $ (104,390) $ (57,9
Slide 19: Reconciliation of GAAP to non-GAAP measures (cont)
Reconciliation of GAAP to non-GAAP measures (cont). 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-bas
Slide 20: A leader in low-code
A leader in low-code.