Slide 1: Q1 2023 Earnings Call Presentation
Q1 2023 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: Q1 2023 highlights
Q1 2023 highlights. Business • Hosted annual user conference in San Diego last week. More than twice as many prospects attended compared to last year. • Doubled the number of seven-figure software deals in Q1 compared to the same period last year. • Launched two new solutions for US Public Sector, C
Slide 4: Days Sales Outstanding
Days Sales Outstanding. Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 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% 99 99%% 2023 98% 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 $250K+ ARR Customers Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 2019 2019 2019 2019 2020 2020 2020 2020 2021 2
Slide 7: Appian Community members
Appian Community members. Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 7 Community members are individuals with an Appian Community profile.
Slide 8: Total Revenue
Total Revenue.* $135.2 $130 $125.8 million $117.9 $114.3 36.3 $110.1 32.5 31.4 30.5 33.4 6.1 6.2 5.6 6.1 23.2 5.5 21.2 19.8 $65 24.7 14.1 million 65.8 69.7 57.1 60.6 53.4 $0 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Cloud Subscription Revenue On-Premises Subscription Revenue Maintenance and Support Pr
Slide 9: Cloud Subscription Revenue Retention
Cloud Subscription Revenue Retention. 125% 117% 116% 115% 115% 115% 0% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 9
Slide 10: Subscriptions vs. Professional Services revenue
Subscriptions vs. Professional Services revenue. IPO (Q2 2017) Q1 2023 Subscriptions Services Subscriptions Services 51% 49% 73% 27% 10
Slide 11: Gross margins
* Gross margins. Subscriptions Professional Services Overall 90% 89% 90% 90% 90% 74% 73% 73% 75% 71% 34% 29% 30% 27% 27% Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2022 2022 2022 2022 2023 2022 2022 2022 2022 2023 2022 2022 2022 2022 2023 11 *Non-GAAP - Data excludes stock-based compensation expen
Slide 12: Q1 2023 summary
Q1 2023 summary. Cloud Subscription Cloud Subscription Revenue Overall Gross Margins** Revenue Retention* (USD, in millions) % 69.7 31 74% 75% + 53.4 115% Q1 2022 Q1 2023 Q1 2022 Q1 2023 *As of March 31, 2023 12 **Non-GAAP - Data excludes stock-based compensation expense and severance costs. Refer t
Slide 13: Guidance
Guidance. Given on May 9, 2023 (in millions, except for EPS) Q2 2023 Full Year 2023 Cloud Subscription Revenue $72.0 – $74.0 $296.0 – $298.0 Cloud Subscription Revenue Growth YoY 26% – 30% 25% – 26% Total Revenue $123.0 – $125.0 $533.0 – $538.0 Total Revenue Increase YoY 12% – 14% 14% – 15% Adjusted
Slide 14: Appendix
Appendix __Y 14 appian
Slide 15: Balance sheet
Balance sheet. As of $ in thousands March 31, 2023 December 31, 2022 Assets Cash and cash equivalents $ 198,679 $ 148,132 Short-term investments and marketable securities 55,803 47,863 Accounts receivable, net of allowance 147,579 165,964 Deferred commissions, current 30,697 30,196 Prepaid expenses
Slide 16: Income statement
Income statement. Three Months Ended March 31, $ in thousands, except for per share data 2023 2022 Revenue Cloud subscriptions $ 69,692 $ 53,379 Term license (on prem) subscriptions 23,151 24,707 Maintenance and support 6,114 5,634 Total subscriptions revenue 98,957 83,720 Professional services 36,2
Slide 17: Stock-based compensation expense
Stock-based compensation expense. Three Months Ended March 31, $ in thousands 2023 2022 Cost of revenue Subscriptions $ 272 $ 179 Professional services 1,591 1,057 Operating expenses Sales and marketing 2,445 1,788 Research and development 3,626 2,314 General and administrative 3,122 1,605 Total sto
Slide 18: Reconciliation of GAAP to non-GAAP measures
Reconciliation of GAAP to non-GAAP measures. $ in thousands Three Months Ended March 31, 2023 Stock-Based Litigation Severance Non-GAAP GAAP Measure Compensation Expenses Costs Measure Subscriptions cost of revenue $ 10,448 $ (272) $ — $ (11) $ 10,165 Professional services cost of revenue 25,645 (1,
Slide 19: Reconciliation of GAAP to non-GAAP measures (cont)
Reconciliation of GAAP to non-GAAP measures (cont). Three Months Ended March 31, $ in thousands 2023 2022 Reconciliation of adjusted EBITDA: GAAP net loss (36,829) (23,154) Other (income) expense, net (2,690) 787 Interest expense 3,118 74 Income tax expense (benefit) 1,135 (1,573) Depreciation and a
Slide 20: A leader in low-code
A leader in low-code.