Core Insights - The article discusses the challenges faced by life insurance underwriters due to scattered information and outdated systems, which hinder timely and accurate risk assessment [1] - Appian has partnered with Swiss Re Reinsurance Solutions to introduce the Connected Underwriting Life Workbench, aimed at improving operational efficiency and customer experience for life insurers [1][3] - The solution is designed to streamline underwriting processes, enhance risk management, and ensure policy consistency across multiple markets while adapting to local regulations [1][3] Group 1: Challenges in the Insurance Industry - Traditional insurance workbenches lack integration among various internal systems, partners, and third-party services, requiring underwriters to access multiple systems for a single life policy [2] - Underwriters need a unified system to manage workloads seamlessly across multiple cases and clients, which necessitates a powerful, reliable, and secure workbench to connect data and automate processes [2] Group 2: Benefits of Appian Connected Underwriting Life Workbench - The integration of Swiss Re's Magnum solution with Appian's Connected Underwriting provides insurers with a comprehensive platform for automating underwriting and workload management [3] - Key benefits include intelligent case and workload management, process automation for faster policy issuance, improved customer experience through reduced wait times and errors, and enhanced profitability by analyzing risk profiles [3]

Core Insights - Appian has appointed Emanuele Galdi as the new Senior Partner Sales Manager for Appian Italy, bringing over 15 years of IT experience in digital transformation and business process automation [1][2] - The appointment is part of Appian's growth strategy to establish itself as a leader in end-to-end business process automation in Italy, where it has seen significant employee growth since entering the market in 2015 [1][2] - Galdi's role will focus on strengthening Appian's ecosystem of partners, facilitating access to training, and introducing innovative solutions to enhance digital transformation for Italian customers [2][3] Company Growth and Strategy - Appian entered the Italian market in 2015 and has experienced a 182% increase in employees over the past five years, with a total growth of 600% since its market entry [1] - The company aims to expand its presence in Italy through a robust partner program that incentivizes and rewards partners for developing new opportunities [2][3] Role and Responsibilities of Emanuele Galdi - As Senior Partner Sales Manager, Galdi will engage with partners throughout the sales cycle, from project identification to closing sales, and will be responsible for enhancing the partner experience [2][3] - Galdi's previous experience includes roles at Capgemini and Deloitte Italia, and he holds an EMBA from the University of Pavia [3] Appian Overview - Appian is a software company specializing in automating business processes, offering a comprehensive AI Process Platform designed to optimize complex processes [4] - The company is recognized for improving workflows and unifying data to enhance operational efficiency and customer experiences [4]

Group 1 - Appian has appointed Sabine Bührer as Area Vice President for Central Europe to lead growth and strategic initiatives in the region [1][2] - Bührer will focus on revenue generation, customer satisfaction, and optimizing Appian's sales organization while expanding the regional partner ecosystem [2][3] - The Central Europe region, including Germany, Austria, Switzerland, and France, is crucial for Appian's growth, with a combined GDP of over 6.4 trillion pounds and an average GDP growth rate of 2.9% [4] Group 2 - Bührer brings 15 years of sales leadership experience from large enterprise technology companies, including her previous role as Sales VP at Tableau [3] - Appian's AI Process Platform aims to enhance productivity and efficiency through process automation, which is essential for organizations to remain competitive [3][5] - The company emphasizes its commitment to investing in top talent to accelerate expansion and better serve customers in Central Europe [2]

MCLEAN, Va., May 14, 2024 /PRNewswire/ -- Appian (Nasdaq: APPN) today announced that Vishal Hanjan, Regional Vice President Of Sales - State & Local Government And Education (SLED) at Appian, was recognized for his industry leadership and significant contributions that are driving government IT forward as part of the 2024 StateScoop 50 Awards. Appian's Vishal Hanjan is recognized for his industry leadership & contributions that are driving government IT forward. Post this Vishal Hanjan is Appian’s Region ...

Appian shares are down, but the company is gaining traction in AI.There's been no shortage of hype around artificial intelligence (AI) among investors. Ever since the launch of ChatGPT in late 2022, tech companies have been plowing billions of dollars into AI technologies, and investors have bid those stocks higher in the hopes of a new opportunity that could be as transformative as the internet, according to a number of tech CEOs and others in the know. However, outside of Nvidia, few companies have seen m ...

In this articleAPPNJust_super | E+ | Getty ImagesBig technology companies are consuming as much data as possible to become winners in artificial intelligence — but that's not necessarily what will define winners, according to the boss of software giant Appian.Matt Calkins, CEO and co-founder of Appian, said that though internet giants like Microsoft, Amazon, and Google are spending billions on the tech, ensuring success in AI is "not just about money.""AI is not a place where money makes more money," Calkin ...

Shares of the low-code software fell on disappointing guidance in its first-quarter report.Shares of Appian (APPN -17.61%) were taking a dive today after the low-code cloud software company reported first-quarter results that matched analyst expectations on the top line but came up short on the bottom line.Appian also cut its bottom-line forecast for the year.As a result, the stock was down 19.1% as of 11:43 a.m. ET. Appian is growing, but not fast enoughAppian had already given investors preliminary result ...

Core Insights - Appian has been recognized as a Leader in Gartner's 2024 Magic Quadrant for Process Mining Platforms, highlighting its strong position in the industry [1][3] - The company emphasizes its value proposition in designing, automating, and optimizing complex business processes [1][3] Group 1: Appian's Recognition and Positioning - Appian was evaluated among 18 vendors in the Gartner report, showcasing its capabilities in process mining [1] - The company was also named a Leader in the 2023 Gartner Magic Quadrant for Enterprise Low-Code Application Platforms [3] - Appian ranked 1 for Business Workflow Automation with Integration Use Case in the 2023 Gartner Critical Capabilities for Enterprise Low-Code Application Platforms report [3] Group 2: Features and Innovations - Key features that contribute to Appian's leadership include faster data preparation, automated process analysis, and a low-code experience for process performance optimization [1][2] - The integration of data fabric, process mining, machine learning, and generative AI through Process HQ enhances operational efficiency and decision-making [2] Group 3: Business Impact - Appian's solutions aim to reduce costs, risks, and delays while improving compliance and business outcomes [2] - The company’s platform is designed to streamline manual data preparation, enabling quicker insights and easier implementation of improvements [2]

Financial Data and Key Metrics Changes - In Q1 2024, Appian's cloud subscription revenue grew 24% year-over-year to $86.6 million, while total revenue increased 11% to $149.8 million [6][16] - Subscription revenue rose 19% to $117.7 million, with a cloud subscription revenue retention rate of 120% as of March 31, 2024, up from 115% a year ago [16][19] - Adjusted EBITDA was a loss of $1.3 million, significantly better than the previous year's loss of $15.8 million [19][24] Business Line Data and Key Metrics Changes - Professional services revenue decreased by 11% year-over-year to $32.1 million, reflecting fluctuations due to project timing [17] - Subscriptions revenue accounted for 79% of total revenue, compared to 73% in the previous year [17] - International operations contributed 37% of total revenue, up from 33% a year ago [17] Market Data and Key Metrics Changes - Foreign exchange movements provided a revenue benefit of 1% to 2% on a constant currency basis [18] - Cash provided by operations was $18.9 million, a significant improvement from cash used in operations of $25.3 million in the same period last year [21] Company Strategy and Development Direction - Appian is focusing on enhancing its AI capabilities and has launched a 30-day fixed price offering to demonstrate ROI [8][9] - The company announced a Strategic Collaboration Agreement with AWS to enhance enterprise AI use [9] - Appian aims to push technological boundaries with new features like Process HQ and Elastic Process Execution (EPIX) [10][12] Management's Comments on Operating Environment and Future Outlook - Management noted that while the macro environment is not perfect, it remains workable, particularly regarding AI investments [28] - The company is optimistic about its long-term growth prospects and is focused on optimizing its cost structure to drive profitability [24][25] - Management expressed confidence in the demand for their platform, with a high gross revenue retention rate of 98% [75] Other Important Information - Appian completed a $50 million share repurchase program in Q1, buying back 1.32 million shares [21] - Total deferred revenue was $226.2 million as of Q1 2024, an increase of 14% from the previous year [21] Q&A Session Summary Question: Update on the deal environment and macro conditions - Management indicated that the macro environment is workable, with no significant budget increases for AI among customers [28] Question: Feedback from customers on AI investments and new products - The conference received positive feedback, with customers appreciating the new pricing approach and features [30] Question: Clarification on cloud revenue guidance and seasonal impacts - Management explained that Q2 is typically the weakest quarter due to seasonality, but they expect recovery in the second half [33][34] Question: Uptake of the new Data Fabric solution and competitive positioning - Management highlighted that their Data Fabric is designed to integrate across the enterprise, differentiating it from competitors [35][36] Question: Trends in net revenue retention and impact of go-to-market changes - Management noted that the recent changes are expected to positively impact net revenue retention in the long run [46] Question: Insights on the macro demand environment in core verticals - Management reported strong customer satisfaction and loyalty, contributing to consistent retention rates [75]

PART I. FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Q1 2024 unaudited condensed consolidated financial statements, showing increased revenue, reduced net loss, and a stockholders' deficit [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets decreased to **$595.4 million**, liabilities increased, resulting in a **$9.7 million** stockholders' deficit Consolidated Balance Sheet Highlights (in thousands) | Metric | March 31, 2024 (unaudited) | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$595,358** | **$627,503** | | Cash and cash equivalents | $170,108 | $149,351 | | Accounts receivable, net | $129,317 | $171,561 | | **Total Liabilities** | **$605,023** | **$575,162** | | Deferred revenue | $226,159 | $240,692 | | Total debt | $255,123 | $206,589 | | **Total Stockholders' (Deficit) Equity** | **($9,665)** | **$52,341** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2024 total revenue increased **11%** to **$149.8 million**, narrowing operating loss to **$19.5 million** and net loss to **$32.9 million** Q1 2024 Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | **Total Revenue** | **$149,835** | **$135,235** | | Subscriptions Revenue | $117,694 | $98,957 | | Professional Services Revenue | $32,141 | $36,278 | | **Gross Profit** | **$111,838** | **$99,142** | | **Operating Loss** | **($19,535)** | **($35,266)** | | **Net Loss** | **($32,923)** | **($36,829)** | | **Net Loss Per Share (Basic & Diluted)** | **($0.45)** | **($0.51)** | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 2024 net cash from operations turned positive to **$18.9 million**, with **$4.2 million** used in financing due to a **$50.0 million** share repurchase Q1 2024 Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash provided by (used by) operating activities | $18,866 | ($25,265) | | Net cash provided by (used by) investing activities | $7,459 | ($12,316) | | Net cash (used by) provided by financing activities | ($4,249) | $88,144 | | **Net increase in cash, cash equivalents, and restricted cash** | **$20,757** | **$50,578** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, cloud subscriptions at **$86.6 million**, Pegasystems litigation, a **$57.3 million** JPI policy, and a **$50.0 million** share repurchase - Revenue from government agencies represented **21.7% of total revenue** for Q1 2024, while international customers accounted for **37.2%**[31](index=31&type=chunk) Revenue by Type (in thousands) | Revenue Type | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Cloud subscriptions | $86,603 | $69,692 | | Term license subscriptions | $23,771 | $23,151 | | Maintenance and support | $7,320 | $6,114 | | **Total subscriptions** | **$117,694** | **$98,957** | | Professional services | $32,141 | $36,278 | | **Total revenue** | **$149,835** | **$135,235** | - The company has a **$2.036 billion judgment** against Pegasystems, which will not be recorded until all contingencies are resolved and collection occurs[97](index=97&type=chunk)[98](index=98&type=chunk) - In September 2023, the company purchased a Judgment Preservation Insurance (JPI) policy for **$57.3 million**, providing up to **$500.0 million of coverage** for the Pegasystems judgment, amortized over an estimated three-year appeals process[99](index=99&type=chunk)[100](index=100&type=chunk) - In March 2024, the company completed a **$50.0 million share repurchase program**, buying back **1.3 million shares** at an average price of **$37.86**[103](index=103&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 performance, noting **10.8%** total revenue increase, **18.9%** subscription growth, **120%** cloud revenue retention, and improved operating cash flow [Key Metrics](index=27&type=section&id=Key%20Metrics) Key metrics show strong growth, with cloud subscriptions revenue up **24.3%** to **$86.6 million** and retention rate improving to **120%** Cloud Subscriptions Revenue (in thousands) | Period | Revenue | % Change YoY | | :--- | :--- | :--- | | Three Months Ended March 31, 2024 | $86,603 | 24.3% | | Three Months Ended March 31, 2023 | $69,692 | | Cloud Subscriptions Revenue Retention Rate | As of | Rate | | :--- | :--- | | March 31, 2024 | 120% | | March 31, 2023 | 115% | [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Q1 2024 total revenue grew **10.8%** to **$149.8 million**, gross margin improved to **74.6%**, and operating loss reduced to **$19.5 million** - The increase in subscriptions revenue was driven by a **$16.9 million increase** in cloud subscription revenue, with **$5.9 million from new customers** and **$12.9 million from existing customers**[150](index=150&type=chunk) - Sales and marketing expense decreased by **$4.9 million (7.8%)** due to a **7.3% reduction in headcount** and lower severance costs[154](index=154&type=chunk) - General and administrative expense increased by **$3.8 million (12.6%)**, primarily due to **$4.5 million in amortization expense** for the judgment preservation insurance policy[156](index=156&type=chunk) - Other expense was **$8.2 million**, a significant shift from other income of **$2.7 million** in the prior year, primarily due to **$11.5 million in foreign exchange losses**[158](index=158&type=chunk)[159](index=159&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2024, Appian held **$170.1 million** in cash, generated **$18.9 million** from operations, and believes resources are sufficient for the next twelve months Liquidity Position (in thousands) | Metric | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $170,108 | $149,351 | | Working capital | $95,950 | $43,183 | - The company has non-cancellable cloud hosting commitments with AWS requiring **$28.0 million** in minimum spending for each of the next three years[181](index=181&type=chunk) - Net cash from operating activities improved by **$44.1 million** year-over-year, driven by stronger collections and lower operating expenses[183](index=183&type=chunk)[184](index=184&type=chunk) - Net cash used in financing activities was **$4.2 million**, compared to **$88.1 million provided** in the prior year, mainly due to a **$50.0 million share repurchase** and lower debt proceeds[185](index=185&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risks include interest rates and foreign currency, with a **1%** rate increase impacting annual interest expense by **$2.5 million** and a **10%** currency change affecting revenue by **3%** and operating loss by **4%** - A hypothetical **1 percentage point increase** in interest rates would increase annual interest expense by approximately **$2.5 million**[190](index=190&type=chunk) - A **10% change** in foreign currency exchange rates would have impacted Q1 2024 total revenue by approximately **3%** and operating loss by approximately **4%**[192](index=192&type=chunk) [Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting - The CEO and CFO concluded that as of March 31, 2024, the company's disclosure controls and procedures were effective at the reasonable assurance level[196](index=196&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[197](index=197&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 12 for Pegasystems litigation details, stating no other legal proceedings are expected to materially adversely affect the business - For information regarding legal proceedings, the report refers to Note 12 – Commitments, Contingencies, and Other Matters in the financial statements[200](index=200&type=chunk) [Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have occurred since those disclosed in the company's 2023 Annual Report on Form 10-K - There have been no material changes from the risk factors described in the company's 2023 Annual Report on Form 10-K[202](index=202&type=chunk) [Issuer Purchases of Equity Securities](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's equity security purchases, including a **$50.0 million share repurchase** in March 2024 of **1.3 million shares** - In February 2024, the Board of Directors authorized a share repurchase program of up to **$50.0 million**[205](index=205&type=chunk) - In March 2024, the company completed the program, repurchasing **1.3 million shares** at an average price of **$37.86** for a total cost of **$50.0 million**[205](index=205&type=chunk) [Other Items (Defaults, Mine Safety, Other Information)](index=48&type=section&id=Other%20Items%20(3%2C%204%2C%205)) The company reported no defaults on senior securities, no mine safety disclosures, and no other information under Item 5 - The company reported 'Not applicable' for Defaults Upon Senior Securities and Mine Safety Disclosures, and 'None' for Other Information[205](index=205&type=chunk) [Exhibits](index=49&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including Credit Agreement amendments, officer certifications, and XBRL data - Key exhibits filed include amendments to the Credit Agreement, officer certifications pursuant to Sarbanes-Oxley Act Sections 302 and 906, and XBRL instance documents[207](index=207&type=chunk)[208](index=208&type=chunk)