Appian Corporation · NASDAQ:APPN
Appian — Q3 2024 Earnings Presentation
20 slides from Appian's earnings presentation, Nov 7, 2024
Slide 1: Q3 2024 Earnings Call Presentation
Q3 2024 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 financial
Slide 3: Q3 2024 Highlights
Q3 2024 Highlights Profitability • Q3 2024 adjusted EBITDA was positive $10.8 million. • Now projecting positive adjusted EBITDA for the full year 2024. Revenue • Cloud subscription revenue was $94.1 million in Q3 2024, representing growth of 22% over Q3 2023. • Subscriptions revenue was $123.1 mill
Slide 4: Cloud Gross Renewal Rate
Cloud Gross Renewal Rate Q1 Q2 Q3 Q4 2022 99% 99% 99% 99% 99 99%% 2023 98% 98% 97% 98% 2024 99% 99% 99% Calculated as the the percentage of recurring cloud subscription revenue retained from existing customers for the previous trailing 12-month period. 4
Slide 5: 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 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 '19 '19 '19 '19 '20 '20 '20 '20 '21 '21 '21 '21 '22 '22 '22 '22 '23 '23 '23 '23 '24 '24 '24 '1
Slide 6: Total Revenue
Total Revenue* $154.1 $149.8 $146.5 $145.3 $137.1 30.9 $130 million 29.5 32.1 33.5 33.3 7.8 6.6 7.3 7.3 21.3 6.5 23.8 26.1 17.2 20.0 $65 million 88.4 94.1 83.1 86.6 77.2 $0 million Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Cloud Subscription Revenue On-Premises Subscription Revenue Maintenance and Sup
Slide 7: Cloud Subscription Revenue Retention Rate
Cloud Subscription Revenue Retention Rate* 125% 119% 120% 118% 117% 117% 0% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 * Calculated by dividing the aggregate recurring cloud subscription revenue in the current trailing 12-month period by the aggregate recurring cloud subscription revenue from the previ
Slide 8: Subscriptions vs. Professional Services Revenues
Subscriptions vs. Professional Services Revenues IPO (Q2 2017) Q3 2024 Subscriptions Services Subscriptions Services 51% 49% 80% 20% 8
Slide 9: Non-GAAP Gross Margins
Non-GAAP Gross Margins* Subscriptions Professional Services Overall 89% 91% 90% 89% 89% 78% 76% 77% 75% 75% 30% 30% 30% 26% 25% Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2023 2023 2024 2024 2024 2023 2023 2024 2024 2024 2023 2023 2024 2024 2024 * Margin calculation excludes stock-based compensati
Slide 10: Q3 2024 Summary
Q3 2024 Summary Cloud Subscription Revenue Cloud Subscription Revenue Non-GAAP Overall Gross (USD, in millions) Retention* Margins** 94.1 % 22 75% 77% 77.2 117% Q3 2023 Q3 2024 Q3 2023 Q3 2024 * As of September 30, 2024 ** Data excludes stock-based compensation expense and severance costs. Refer to
Slide 11: Guidance
Guidance Given on November 7, 2024 (in millions, except for EPS) Q4 2024 Full Year 2024 Cloud Subscription Revenue $95.0 – $97.0 $364.0 – $366.0 Cloud Subscription Revenue Growth YoY 14% – 17% 20% Total Revenue $163.5 – $165.5 $613.0 – $615.0 Total Revenue Increase YoY 13% – 14% 12% – 13% Adjusted E
Slide 12: Appendix
Appendix
Slide 13: Balance Sheet
Balance Sheet As of $ in thousands September 30, 2024 December 31, 2023 Assets (unaudited) Cash and cash equivalents $ 99,193 $ 149,351 Short-term investments and marketable securities 40,798 9,653 Accounts receivable, net of allowance 140,213 171,561 Deferred commissions, current 34,785 34,261 Prep
Slide 14: Income Statement
Income Statement Three Months Ended September 30, Nine Months Ended September 30, $ in thousands, except for per share data 2024 2023 2024 2023 (unaudited) Revenue Cloud subscriptions $ 94,075 $ 77,247 $ 269,106 $ 221,381 Term license subscriptions 21,265 20,026 62,263 56,176 Maintenance and support
Slide 15: Stock-Based Compensation Expense
Stock-Based Compensation Expense Three Months Ended September 30, Nine Months Ended September 30, $ in thousands 2024 2023 2024 2023 (unaudited) Cost of revenue Subscriptions $ 211 $ 211 $ 641 $ 713 Professional services 1,325 1,535 4,364 4,598 Operating expenses Sales and marketing 1,746 3,245 6,27
Slide 16: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Lease Impairment unaudited, $ in thousands and Lease- GAAP Stock-Based Litigation JPI Severance Related Short-Swing Non-GAAP Measure Compensation Expense Amortization Costs Charges Profit Payment Measure Three Months Ended September 30, 2024 Subscriptions
Slide 17: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Lease Impairment unaudited, $ in thousands and Lease- GAAP Stock-Based Litigation JPI Severance Related Short-Swing Non-GAAP Measure Compensation Expense Amortization Costs Charges Profit Payment Measure Nine Months Ended September 30, 2024 Subscriptions c
Slide 18: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures unaudited, $ in thousands Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Reconciliation of adjusted EBITDA: GAAP net loss $ (2,100) $ (22,251) $ (78,615) $ (101,435) Other (income) expense, net (12,544) 1,939 (5,882) (
Slide 19: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures 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- based comp
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