Slide 1: Q2 2023 Earnings Call Presentation
Q2 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: Q2 2023 highlights
Q2 2023 highlights. Revenue • Cloud subscription revenue was $74.4 million in Q2 2023, representing growth of 30% over Q2 2022. • Subscriptions revenue was $93.8 million in Q2 2023, representing growth of 22% over Q2 2022. • Total revenue was $127.7 million in Q2 2023, representing growth of 16% ove
Slide 4: Days Sales Outstanding
Days Sales Outstanding. Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 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% 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 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2019 2019 2019 2019 2020 2020 2020
Slide 7: Appian Community members
Appian Community members. Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 7 Community members are individuals with an Appian Community profile.
Slide 8: Total Revenue
Total Revenue.* $135.2 $130 $125.8 $127.7 million $117.9 $110.1 36.3 32.5 33.9 31.4 33.4 6.1 6.2 6.4 6.1 23.2 13.0 5.5 21.2 19.8 $65 14.1 million 69.7 74.4 60.6 65.8 57.1 $0 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Cloud Subscription Revenue On-Premises Subscription Revenue Maintenance and Support Pr
Slide 9: Cloud Subscription Revenue Retention
Cloud Subscription Revenue Retention. 125% 116% 115% 115% 115% 115% 0% Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 9
Slide 10: Subscriptions vs. Professional Services revenue
Subscriptions vs. Professional Services revenue. IPO (Q2 2017) Q2 2023 Subscriptions Services Subscriptions Services 51% 49% 73% 27% 10
Slide 11: Gross margins
* Gross margins. Subscriptions Professional Services Overall 89% 90% 90% 90% 89% 73% 73% 75% 73% 71% 34% 30% 28% 27% 27% Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2022 2022 2022 2023 2023 2022 2022 2022 2023 2023 2022 2022 2022 2023 2023 11 *Non-GAAP - Data excludes stock-based compensation expen
Slide 12: Q2 2023 summary
Q2 2023 summary. Cloud Subscription Cloud Subscription Revenue Overall Gross Margins** Revenue Retention* (USD, in millions) 74.4 % 30 73% + 71% 57.1 115% Q2 2022 Q2 2023 Q2 2022 Q2 2023 *As of June 30, 2023 12 **Non-GAAP - Data excludes stock-based compensation expense and severance costs. Refer to
Slide 13: Guidance
Guidance. Given on August 3, 2023 (in millions, except for EPS) Q3 2023 Full Year 2023 Cloud Subscription Revenue $75.5 – $76.5 $299.0 – $301.0 Cloud Subscription Revenue Growth YoY 25% – 26% 26% – 27% Total Revenue $134.0 – $136.0 $538.0 – $543.0 Total Revenue Increase YoY 14% – 15% 15% – 16% Adjus
Slide 14: Appendix
Appendix __Y 14 appian
Slide 15: Balance sheet
Balance sheet. As of $ in thousands June 30, 2023 December 31, 2022 Assets Cash and cash equivalents $ 171,530 $ 148,132 Short-term investments and marketable securities 65,430 47,863 Accounts receivable, net of allowance 134,016 165,964 Deferred commissions, current 30,389 30,196 Prepaid expenses a
Slide 16: Income statement
Income statement. Three Months Ended June 30, Six Months Ended June 30, $ in thousands, except for per share data 2023 2022 2023 2022 Revenue Cloud subscriptions $ 74,442 $ 57,083 $ 144,134 $ 110,462 Term license (on prem) subscriptions 12,999 14,063 36,150 38,770 Maintenance and support 6,353 5,522
Slide 17: Stock-based compensation expense
Stock-based compensation expense. Three Months Ended June 30, Six Months Ended June 30, $ in thousands 2023 2022 2023 2022 Cost of revenue Subscriptions $ 230 $ 249 $ 502 $ 428 Professional services 1,472 1,330 3,063 2,387 Operating expenses Sales and marketing 2,772 2,266 5,217 4,054 Research and d
Slide 18: Reconciliation of GAAP to non-GAAP measures
Reconciliation of GAAP to non-GAAP measures. $ in thousands Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Stock-Based Litigation Severance Non-GAAP Stock-Based Litigation Severance Non-GAAP GAAP Measure Compensation Expenses Costs Measure GAAP Measure Compensation Expenses Costs Me
Slide 19: Reconciliation of GAAP to non-GAAP measures (cont)
Reconciliation of GAAP to non-GAAP measures (cont). Three Months Ended June 30, Six Months Ended June 30, $ in thousands 2023 2022 2023 2022 Reconciliation of adjusted EBITDA: GAAP net loss (42,355) (49,354) (79,184) (72,508) Other (income) expense, net (3,886) 6,153 (6,576) 6,940 Interest expense 4
Slide 20: A leader in process automation
A leader in process automation.