Appian (APPN) is expanding its footprint into Japan with the recently announced collaboration with Outsourcing Technology of Japan (OSTech). The partnership aims to achieve efficiency improvements in its business through process automation and low-code development on the Appian Platform.OSTech expects to reduce the workload by approximately 25% through the Appian platform as it helps eliminate data silos and enables end-to-end visualization, integration, and automation of business processes across systems.T ...

MCLEAN, Va., Aug. 19, 2024 /PRNewswire/ -- Appian (Nasdaq: APPN) today announced the latest version of the Appian Platform, designed to transform how organizations orchestrate enterprise data and automate processes. This release delivers support for more enterprise AI use cases with expanded compliance, offering a strong framework to help organizations prepare for current and forthcoming AI regulations.The latest release introduces the expansion of AI capabilities to enhance data and process automation for ...

Core Viewpoint - Appian is transitioning from a low-code platform to a business process automation provider, leveraging AI to enhance its offerings and improve operational efficiency [1][2]. Group 1: Business Model Evolution - Appian has evolved its business model by acquiring a process mining company in 2022, which allows it to better address customer needs and improve workflow efficiency [1]. - The company is now focusing on generative AI to automate applications for various functions such as procurement and claims processing, moving away from its low-code roots [1][2]. Group 2: Financial Performance - In the second quarter, Appian's cloud subscription revenue increased by 19% to $88.4 million, while overall revenue rose by 15% to $146.5 million, surpassing estimates [3]. - The company is targeting breakeven adjusted EBITDA for the full year, with projections between -$3 million and $3 million, and expects third-quarter adjusted EBITDA to be between breakeven and $3 million [4]. Group 3: Workforce and Restructuring - Appian laid off approximately 150 employees to realign its sales and marketing teams with its new strategy, aiming to improve profitability [4]. - The restructuring is seen as a necessary step to focus on high-value deals, although it reflects the company's ongoing challenges with profitability and revenue growth [5][6]. Group 4: Customer Satisfaction and Market Challenges - Appian enjoys a high gross renewal rate of 99% and a subscription gross margin near 90%, indicating strong customer satisfaction and profitability once customers adopt the product [5]. - Despite high customer satisfaction, the company faces challenges in expanding its customer base and needs to enhance its product-market fit as it pivots towards automation and AI [6].

Thapana OnphalaiA tech correction has begun, but that doesn’t mean that investors should shy away from buying shares of high-quality companies at a discount. These volatile moments, in particular, often have the impact of severely dislodging companies’ valuations from their underlying performance. This seems to be the case for Appian (NASDAQ:APPN), a software company whose platform focuses on delivering a low-code (i.e., with business users at the wheel instead of IT departments) method of automating ma ...

Appian (APPN) reported $146.45 million in revenue for the quarter ended June 2024, representing a year-over-year increase of 14.7%. EPS of -$0.26 for the same period compares to -$0.39 a year ago.The reported revenue represents a surprise of +3.09% over the Zacks Consensus Estimate of $142.07 million. With the consensus EPS estimate being -$0.31, the EPS surprise was +16.13%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine ...

MCLEAN, Va., Aug. 01, 2024 (GLOBE NEWSWIRE) -- Appian (Nasdaq: APPN) announced today that management will be presenting and hosting meetings with institutional investors at the following upcoming conferences. KeyBanc Technology Leadership Forum. The fireside chat is scheduled for Tuesday, August 6th at 1:00pm Mountain Time.Citi 2024 Global TMT Conference. The fireside chat is scheduled for Friday, September 6th at 9:10am Eastern Time.Goldman Sachs Communacopia + Technology Conference. The fireside chat is s ...

Revenue Growth - Cloud subscriptions revenue for Q2 2024 reached $88.4 million, an 18.8% increase from $74.4 million in Q2 2023, while for the first half of 2024, it was $175.0 million, up 21.4% from $144.1 million in the same period last year [132]. - Total revenue increased by $18.7 million, or 14.7%, to $146.5 million for the three months ended June 30, 2024, compared to $127.7 million in the same period in 2023, driven primarily by a $19.2 million increase in subscriptions revenue [152]. - Total revenue increased by $33.3 million, or 12.7%, to $296,285 thousand for the six months ended June 30, 2024, primarily due to a $37.9 million increase in subscriptions revenue [163]. - Subscriptions revenue grew by $37,917 thousand, or 19.7%, to $230,668 thousand for the six months ended June 30, 2024, while professional services revenue decreased by $4,582 thousand, or 6.5% [163]. Subscription Metrics - The cloud subscriptions revenue retention rate improved to 118% as of June 30, 2024, compared to 115% in 2023, indicating strong renewal and expansion of subscription agreements [133]. - For the three months ended June 30, 2024, 77.1% of total revenue was derived from subscriptions, compared to 73.4% in the same period of 2023, highlighting a shift towards subscription-based revenue [129]. - Subscriptions revenue reached $113.0 million for the three months ended June 30, 2024, up 20.4% from $93.8 million in the same period in 2023, with a notable $14.0 million increase in cloud subscription revenue [152]. Cost and Expenses - Total cost of revenue increased by $2.6 million, or 7.0%, to $39.4 million for the three months ended June 30, 2024, primarily due to a $2.2 million increase in hosting costs [154]. - Operating expenses increased to $146.2 million for the three months ended June 30, 2024, compared to $131.5 million in 2023, reflecting continued investment in growth [148]. - General and administrative expense rose by $11.0 million, or 37.6%, to $40,193 thousand for the three months ended June 30, 2024, driven by lease impairment charges and increased amortization expenses [158]. - Total cost of revenue increased by $4.5 million, or 6.1%, to $77,410 thousand for the six months ended June 30, 2024, mainly due to higher hosting costs [164]. Profitability and Loss - The operating loss for the three months ended June 30, 2024, was $39.2 million, an improvement from a loss of $40.7 million in the same period in 2023 [148]. - Net loss for the three months ended June 30, 2024, was $43.6 million, compared to a net loss of $42.4 million in the same period in 2023 [148]. - The net loss for the six months ended June 30, 2024, was $(76.5 million), an increase of $19.4 million compared to the prior year [178]. - The net loss per share, basic and diluted, was $(1.05) for the six months ended June 30, 2024, a decrease of $0.51 from the previous year [178]. Financial Position - Cash and cash equivalents as of June 30, 2024, were $120.8 million, down from $149.4 million as of December 31, 2023 [184]. - The company had a working capital of $70.3 million as of June 30, 2024, an increase from $43.2 million at the end of 2023 [184]. - Outstanding principal debt as of June 30, 2024, was $254.0 million, with a hypothetical one percentage point increase in interest rates potentially raising annual interest expense by approximately $2.5 million [200]. Strategic Focus - The business model focuses on maximizing customer lifetime value, with significant investments in customer acquisition and sales team expansion, which can take up to a year to yield productivity [125]. - The company targets organizations with over 2,000 employees and $2 billion in annual revenue, indicating a focus on large enterprises for customer acquisition [123]. - The company plans to continue investing in its platform and infrastructure to meet evolving customer needs and may pursue strategic acquisitions to enhance product offerings [130]. Risks and Challenges - Inflation risks are present in personnel costs and general overhead expenses, with potential adverse effects on gross profit margins if inflation pressures increase [201]. - The company faces foreign currency exchange risks, primarily with the British pound, Euro, Australian dollar, and Swiss franc, impacting revenue and operating results [202]. - A 10% change in foreign currency exchange rates could affect total revenue by approximately 4% and operating loss by about 3% for the six months ended June 30, 2024 [202]. Non-GAAP Measures - The company emphasizes the importance of non-GAAP financial measures for evaluating performance and making operational decisions [173]. - Adjusted EBITDA, a non-GAAP measure, is defined as net loss before certain expenses, providing a clearer view of operational performance [176]. - The company reported an adjusted EBITDA of $(10.5) million for the three months ended June 30, 2024, compared to $(24.7) million for the same period in 2023 [181].

Core Insights - Appian's shares fell by 11.7% despite beating second-quarter earnings estimates due to weaker-than-expected revenue guidance for the third quarter and full year [1] Financial Performance - Appian's cloud subscription revenue increased by 19% to $88.4 million, while overall revenue rose by 15% to $146.5 million, surpassing the consensus estimate of $143 million [2] - The company narrowed its adjusted EBITDA loss from $24.7 million to $10.5 million, reporting a per-share loss of $0.26, which improved from a loss of $0.39 and beat the consensus estimate of a loss of $0.31 [2] Future Guidance - For the third quarter, Appian expects adjusted EBITDA to be break-even to $3 million, with total revenue forecasted between $149 million and $153 million, which is below the consensus estimate of $155.6 million [4] - For the full year, the company anticipates adjusted EBITDA of -$3 million to $3 million and total revenue between $610 million and $615 million, compared to revenue estimates of $615.7 million [4] Strategic Developments - Appian has accelerated its target for achieving break-even adjusted EBITDA from 2025 to 2024 following a round of layoffs that affected 170 employees [3]

Appian Corporation (NASDAQ:APPN) Q2 2024 Earnings Conference Call August 1, 2024 8:30 AM ET Company Participants Jack Andrews - Investor Relations Matt Calkins - Chairman and CEO Mark Matheos - Chief Financial Officer Conference Call Participants Sanjit Singh - Morgan Stanley Raimo Lenschow - Barclays Steve Enders - Citi Derrick Wood - TD Cowen Kevin Kumar - Goldman Sachs Jake Roberge - William Blair Operator Good day and thank you for standing by. Welcome to the Appian Second Quarter 2024 Earnings Conferen ...

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