In This Article:
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Cloud Subscription Revenue: $94.1 million, up 22% year over year.
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Total Revenue: $154.1 million, up 12% year over year.
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Subscriptions Revenue: $123.1 million, up 19% year over year.
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Professional Services Revenue: $30.9 million, down 7% year over year.
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Cloud Subscription Revenue Retention Rate: 117% as of September 30, 2024.
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Non-GAAP Gross Margin: 77%.
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Subscriptions Non-GAAP Gross Profit Margin: 89%.
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Professional Services Non-GAAP Gross Margin: 30%.
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Adjusted EBITDA: Positive $10.8 million.
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Non-GAAP Net Income: $11.4 million or $0.15 per diluted share.
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Cash, Cash Equivalents, and Investments: $140 million as of September 30, 2024.
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Cash Used by Operating Activities: $8.2 million.
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Total Deferred Revenue: $227.6 million, up 15% from the year ago period.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Appian Corp (NASDAQ:APPN) reported a 22% year-over-year growth in cloud subscription revenue, reaching $94.1 million.
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The company achieved a positive adjusted EBITDA of $10.8 million, surpassing previous guidance.
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Appian Corp (NASDAQ:APPN) maintained a high cloud subscription revenue retention rate of 117% as of September 30, 2024.
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The company has successfully expanded its presence in the public sector, now serving all 15 US cabinet-level agencies.
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Appian Corp (NASDAQ:APPN) has introduced a more efficient cost structure, leading to higher advisory service attachment rates and increased customer renewal uplifts.
Negative Points
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Professional services revenue declined by 7% year over year, highlighting potential volatility in this segment.
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The company anticipates a sequential decline in adjusted EBITDA for Q4 2024 due to increased sales commissions and marketing event expenses.
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Appian Corp (NASDAQ:APPN) experienced a slight decline in total non-GAAP expenses, indicating potential challenges in cost management.
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The departure of CFO Mark Matheos introduces uncertainty in financial leadership, with an interim CFO stepping in.
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Despite positive growth, the macroeconomic environment remains a variable, with no clear insight into potential Q4 budget flushes.
Q & A Highlights
Q: Is the discussion about process versus agents, or is it about agents as a user interface and execution layer on top of process? A: Matthew Calkins, CEO: Agents are not just a means to an end but an end themselves. The focus is on AI taking actions, and process empowers agents to be stronger by providing information, structured collaborators, and pre-coded output levers. Process is proposed as a better way to achieve a superior version of action-taking agents.