Appian Corporation · NASDAQ:APPN
Appian — Q4 2018 Earnings Presentation
18 slides from Appian's earnings presentation, Feb 21, 2019
Slide 1: Q4 2018 & FY 2018 Earnings Call Presentation
Q4 2018 & FY 2018 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: Q4 and Full Year 2018 Business Highlights
Q4 and Full Year 2018 Business Highlights • Increased value on a per customer basis in 2018 • Grew the number of seven-figure ARR customers by 58% over 2017 • Increased total revenue per customer to an all-time high of $520k per customer • Added 87 net new subscription customers and their initial AC
Slide 4: Q4 2018 Financial Highlights
Q4 2018 Financial Highlights • Revenue • Subscription Revenue was $33.8m in Q4 2018, growth of 44% over Q4 2017 • Total Revenue was $60.2m in Q4 2018, growth of 19% over Q4 2017 • Retention • Subscription Revenue Retention was 117% as of December 31, 2018 • Gross Margins* • Subscriptions, Software a
Slide 5: Full Year 2018 Financial Highlights
Full Year 2018 Financial Highlights • Revenue • Subscription Revenue was $115.7m in 2018, growth of 40% over 2017 • Total Revenue was $226.7m in 2018, growth of 28% over 2017 • Retention • Subscription Revenue Retention was 117% as of December 31, 2018 • Gross Margins* • Subscriptions, Software and
Slide 6: Subscription Revenue
Subscription Revenue USD Millions Y/Y Growth in % 33.8 29.4 27.0 25.5 23.5 42% 36% 36% 42% 44% Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 66
Slide 7: Total Revenue
Total Revenue USD Millions 59.9 60.2 54.9 50.6 51.7 26.8 25.1 24.0 25.2 24.7 1.3 6.0 1.5 1.5 1.9 33.8 27.0 29.4 23.5 25.5 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Subscription Revenue Perpetual Software & Support Professional Services *Total revenue may not foot due to rounding 77
Slide 8: Subscription Revenue Retention
Subscription Revenue Retention 125% 122% 119% 119% 117% 117% 0% Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 88
Slide 9: Gross Margins
Gross Margins* Subscriptions, Software, Professional Overall and Support Services 91% 91% 92% 90% 91% 64% 64% 64% 65% 60% 36% 31% 31% 29% 26% Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2017 2018 2018 2018 2018 2017 2018 2018 2018 2018 2017 2018 2018 2018 2018 *Non-GAAP - Data does not include any
Slide 10: Full Year 2018 Highlights
Full Year 2018 Highlights Subscription Revenue ($MM) Subscription Overall Gross Margins** Revenue Retention* -100 bas is points w th Gro 65% 64% 40% $115.7 117% $82.8 2017 2018 2017 2018 *As of December 31, 2018 **Non-GAAP - Data does not include any stock-based compensation expense 10
Slide 11: Guidance
Guidance* In $ Millions except for EPS Q1 2019 FY 2019 Subscription Revenue 33.3 – 33.6 148.0 – 150.0 Subscription Revenue Growth Y/Y 31% – 32% 28% - 30% Total Revenue 59.5 – 59.8 258.5 – 262.5 Total Revenue Growth Y/Y 15% - 16% 14% - 16% Non-GAAP Loss from Operations (10.5) – (10.0) (29.5) – (27.5)
Slide 12: Appendix
Appendix 12
Slide 13: Balance Sheet
Balance Sheet As of As of December 31, December 31, $ in thous ands 2018 2017 Assets Cash and cash equivalents $ 94,930 $ 73,758 Accounts receivable, net of allowance of $600 and $400 at December 31, 2018 and 2017, respectively 79,383 55,315 Deferred commissions, current 14,020 9,117 Other current a
Slide 14: Income Statement
Income Statement Three Months Ended December 31, Year Ended December 31, $ in thousands, except for shares 2018 2017 2018 2017 (unaudited) Revenue: Subscriptions, software and support $ 35,108 $ 25,398 $ 126,012 $ 91,514 Professional services 25,108 25,164 100,731 85,223 Total revenue 60,216 50,562
Slide 15: 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 December 31, Year Ended December 31, $ in thousands, except for shares 2018 2017 2018 2017 Reco
Slide 16: 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 December 31, Year Ended December 31, $ in thousands, except for shares 2018 2017 2018 2017 Reconciliation of non-GAAP operating loss: GAAP
Slide 17: 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 17
Slide 18: Appian
Appian