Appian (Nasdaq: APPN) today announced financial results for the
fourth quarter and full year ended December 31, 2023.
“Appian delivered our plan in 2023 and reached two milestones.
Full year revenue exceeded half a billion dollars, and we achieved
the highest quarterly gross margin in our public history,” said
Matt Calkins, CEO & Founder.
Fourth Quarter
2023 Financial Highlights:
- Revenue: Cloud
subscription revenue was $83.1 million, up 26% compared to the
fourth quarter of 2022. Total subscriptions revenue, which includes
sales of our cloud subscriptions, on-premises term license
subscriptions, and maintenance and support, increased 24%
year-over-year to $115.8 million. Professional services revenue was
$29.5 million, a decrease of 9% compared to the fourth quarter of
2022. Total revenue was $145.3 million, up 16% compared to the
fourth quarter of 2022. Cloud subscription revenue retention rate
was 119% as of December 31, 2023.
- Operating loss and non-GAAP
operating loss: GAAP operating loss was $(16.8) million,
compared to $(40.6) million for the fourth quarter of 2022.
Non-GAAP operating loss was $(1.4) million, compared to $(26.8)
million for the fourth quarter of 2022.
- Net loss and non-GAAP net
loss: GAAP net loss was $(10.0) million, compared to
$(34.4) million for the fourth quarter of 2022. GAAP net loss per
share was $(0.14) for the fourth quarter of 2023, compared to
$(0.47) for the fourth quarter of 2022. Non-GAAP net income was
$4.9 million, compared to non-GAAP net loss of $(20.6) million for
the fourth quarter of 2022. Non-GAAP net income per diluted share
was $0.06, compared to the $(0.28) net loss per share for the
fourth quarter of 2022. GAAP net loss and non-GAAP net income for
the fourth quarter of 2023 included $11.1 million, or $0.15 per
share, of foreign currency exchange gains. GAAP and non-GAAP net
loss for the fourth quarter of 2022 included $8.5 million, or $0.12
per share, of foreign currency exchange gains. We do not forecast
foreign exchange rate movements.
- Adjusted EBITDA:
Adjusted EBITDA was $1.0 million, compared to adjusted EBITDA loss
of $(24.8) million for the fourth quarter of 2022.
- Cash flows: Net
cash used in operating activities was $(8.2) million for the three
months ended December 31, 2023 compared to $(12.6) million of net
cash used in operating activities for the same period in 2022.
Full Year 2023
Financial Highlights:
- Revenue: Cloud
subscription revenue was $304.5 million for the full year 2023, up
29% compared to the full year 2022. Total subscriptions revenue
increased 21% year-over-year to $412.3 million for the full year
2023. Professional services revenue was $133.0 million for the full
year 2023, compared to $127.8 million for the full year 2022. Total
revenue was $545.4 million for the full year 2023, up 17% compared
to the full year 2022.
- Operating loss and non-GAAP
operating loss: GAAP operating loss was $(108.0) million
for the full year 2023, compared to $(145.0) million for the full
year 2022. Non-GAAP operating loss was $(54.3) million for the full
year 2023, compared to $(83.3) million for the full year 2022.
- Net loss and non-GAAP net
loss: GAAP net loss was $(111.4) million for the full year
2023, compared to $(150.9) million for the full year 2022. GAAP net
loss per share was $(1.52) for the full year 2023, compared to
$(2.08) for the full year 2022. Non-GAAP net loss was $(59.2)
million for the full year 2023, compared to $(89.2) million for the
full year 2022. Non-GAAP net loss per share was $(0.81) for the
full year 2023, compared to the $(1.23) net loss per share for the
full year 2022. GAAP and non-GAAP net loss for the full year 2023
included $8.7 million, or $0.12 per share, of foreign currency
exchange gains. GAAP and non-GAAP net loss for the full year 2022
included $6.1 million, or $(0.08) per share, of foreign currency
exchange losses.
- Adjusted EBITDA:
Adjusted EBITDA loss was $(44.8) million for the full year 2023,
compared to adjusted EBITDA loss of $(76.0) million for the full
year 2022.
- Balance sheet and cash flows: As of
December 31, 2023, Appian had total cash, cash equivalents,
and investments of $159.0 million. Net cash used in operating
activities was $(110.4) million for the full year 2023, compared to
$(106.6) million of net cash used in operating activities for the
full year 2022.
A reconciliation of GAAP to non-GAAP financial measures has been
provided in the tables following the financial statements in this
press release. An explanation of these measures is also included
below under the heading “Non-GAAP Financial Measures.”
Recent Business Highlights:
- US Army Revolutionizes Contract
Writing with Appian Platform
- Appian Government Cloud Achieves “In
Process” Designation for FedRAMP High Impact Level
- Appian Delivers Better Business
Decisions and Outcomes with AI Plus Data Fabric Analytics
- Appian Named a Leader in Everest
Group’s Low-code Technology Providers in Insurance PEAK Matrix
Assessment 2023
- Appian Named a 2023 Tech100 Honoree
by the Northern Virginia Technology Council
- 2023 Appian International Partner
Award Winners Demonstrate Process Automation Excellence in
Europe
- Appian Enhances “One Appian” Global Partner Program Strategy
for 2024
Financial Outlook:
As of February 15, 2024, guidance for 2024 is as
follows:
- First Quarter
2024 Guidance:
- Cloud subscription revenue is
expected to be between $84.0 million and $86.0 million,
representing year-over-year growth of 21% to 23%.
- Total revenue is expected to be
between $148.0 million and $150.0 million, representing a
year-over-year increase of 9% to 11%.
- Adjusted EBITDA loss is expected to
be between $(9.0) million and $(5.0) million.
- Non-GAAP net loss per share is expected to be between $(0.21)
and $(0.16), assuming weighted average common shares outstanding of
73.5 million.
- Full Year 2024
Guidance:
- Cloud subscription revenue is
expected to be between $364.0 million and $366.0 million,
representing year-over-year growth of 20%.
- Total revenue is expected to be
between $615.0 million and $617.0 million, representing a
year-over-year increase of 13%.
- Adjusted EBITDA loss is expected to
be between $(25.0) million and $(20.0) million.
- Non-GAAP net loss per share is expected to be between $(0.73)
and $(0.66), assuming weighted average common shares outstanding of
73.8 million.
Conference Call Details:
Appian will host a conference call today, February 15,
2024, at 8:30 a.m. ET to discuss Appian's financial results for the
fourth quarter ended December 31, 2023 and business
outlook.
To access the call, navigate to the following link(1). Once
registered, participants can dial in using their phone with a dial
in and PIN, or they can choose the Call Me option for instant dial
to their phone. The live webcast of the conference call can also be
accessed on the Investor Relations page of our website at
http://investors.appian.com.
________________________1
https://register.vevent.com/register/BI223928344b2743fba392097edbdf6253
Investor Day:
We announced an Investor Day on Tuesday, April 16 near
Washington DC starting at 1:30 p.m. ET.
Event Details:What: Appian Investor Day 2024When: April 16, 2024
at 1:30 P.M. to 5:00 P.M. Eastern TimeIn-person attendance: Please
contact our team at investors@appian.com for more
information.Webcast:
https://investors.appian.com/events-and-presentations/events (live
and replay)Replay: A replay of the event will be archived on the
investor relations website
About Appian
Appian is a software company that automates business processes.
The Appian AI Process Platform includes everything you need to
design, automate, and optimize even the most complex processes,
from start to finish. The world's most innovative organizations
trust Appian to improve their workflows, unify data, and optimize
operations—resulting in better growth and superior customer
experiences. For more information, visit www.appian.com.
Non-GAAP Financial Measures
To supplement its consolidated financial statements, which are
prepared and presented in accordance with GAAP, Appian provides
investors with certain non-GAAP financial performance measures.
Appian uses these non-GAAP financial performance measures for
financial and operational decision-making and as a means to
evaluate period-to-period comparisons. Appian’s management believes
these non-GAAP financial measures provide meaningful supplemental
information regarding Appian’s performance by excluding certain
expenses that may not be indicative of our recurring core business
operating results. Appian believes both management and investors
benefit from referring to these non-GAAP financial measures in
assessing Appian’s performance and when planning, forecasting, and
analyzing future periods. These non-GAAP financial measures also
facilitate management’s internal comparisons to historical
performance as well as comparisons to competitors’ operating
results. Appian believes these non-GAAP financial measures are
useful to investors both because (1) they allow for greater
transparency with respect to measures used by management in its
financial and operational decision-making and (2) they are used by
Appian’s institutional investors and the analyst community to help
them analyze the health of Appian’s business.
The non-GAAP financial performance measures include the
following: non-GAAP subscriptions cost of revenue, non-GAAP
professional services costs of revenue, non-GAAP total cost of
revenue, non-GAAP total operating expense, non-GAAP operating loss,
non-GAAP income tax expense, non-GAAP net loss, and non-GAAP net
loss per share, basic and diluted. These non-GAAP financial
performance measures exclude the effect of stock-based compensation
expense, certain non-ordinary litigation-related expenses
consisting of legal and other professional fees associated with the
Pegasystems cases (net of insurance reimbursements), or Litigation
Expense, amortization of the judgment preservation insurance
policy, or JPI Amortization, and severance costs related to an
involuntary reduction in our workforce in 2023, or Severance Costs.
While some of these items may be recurring in nature and should not
be disregarded in the evaluation of our earnings performance, it is
useful to exclude such items when analyzing current results and
trends compared to other periods as these items can vary
significantly from period to period depending on specific
underlying transactions or events that may occur. Therefore, while
we may incur or recognize these types of expenses in the future, we
believe removing these items for purposes of calculating our
non-GAAP financial measures provides investors with a more focused
presentation of our ongoing operating performance.
Appian also discusses adjusted EBITDA, a non-GAAP financial
performance measure it believes offers a useful view of the overall
operation of its businesses. The company defines adjusted EBITDA as
net loss before (1) other non-operating (income) expenses, net, (2)
interest expense, (3) income tax expense, (4) depreciation expense
and amortization of intangible assets, (5) stock-based compensation
expense, (6) Litigation Expense, (7) JPI Amortization, and (8)
Severance Costs. The most directly comparable GAAP financial
measure to adjusted EBITDA is net loss. Users should consider the
limitations of using adjusted EBITDA, including the fact this
measure does not provide a complete measure of our operating
performance. Adjusted EBITDA is not intended to purport to be an
alternative to net loss as a measure of operating performance or to
cash flows from operating activities as a measure of liquidity.
The presentation of these non-GAAP financial measures is not
intended to be considered in isolation from, as a substitute for,
or superior to the financial information prepared and presented in
accordance with GAAP, and Appian’s non-GAAP measures may be
different from non-GAAP measures used by other companies. For more
information on these non-GAAP financial measures, see the
reconciliation of these non-GAAP financial measures to their
nearest comparable GAAP measures at the end of this press release.
Appian provides guidance ranges for non-GAAP net loss per share and
adjusted EBITDA; however, we are not able to reconcile these
amounts to their comparable GAAP financial measures without
unreasonable efforts because certain information necessary to
calculate such measures on a GAAP basis is unavailable, subject to
high variability, dependent on future events outside of our
control, and cannot be predicted. In addition, Appian believes such
reconciliations could imply a degree of precision that might be
confusing or misleading to investors. The actual effect of the
reconciling items that Appian may exclude from these non-GAAP
expense numbers, when determined, may be significant to the
calculation of the comparable GAAP measures.
Forward-Looking Statements
This press release includes forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. All statements contained in this press release other than
statements of historical facts, including statements regarding
Appian’s future financial and business performance for the first
quarter and full year 2024, future investment by Appian in its
go-to-market initiatives, increased demand for the Appian
AI-Powered Process platform, market opportunity and plans and
objectives for future operations, including Appian’s ability to
drive continued subscriptions revenue and total revenue growth, are
forward-looking statements. The words “anticipate,” “believe,”
“continue,” “estimate,” “expect,” “intend,” “may,” “will,” “plan,”
and similar expressions are intended to identify forward-looking
statements. Appian has based these forward-looking statements on
its current expectations and projections about future events and
financial trends that Appian believes may affect its financial
condition, results of operations, business strategy, short-term and
long-term business operations and objectives, and financial needs.
These forward-looking statements are subject to a number of risks
and uncertainties, including the risks and uncertainties associated
with Appian’s ability to grow its business and manage its growth,
Appian’s ability to sustain its revenue growth rate, continued
market acceptance of Appian’s AI-Powered Process platform and
adoption of low-code solutions to drive digital transformation, the
fluctuation of Appian’s operating results due to the length and
variability of its sales cycle, competition in the markets in which
Appian operates, AI being a disruptive set of technologies that may
affect the markets for Appian’s software dramatically and in
unpredictable ways, risks and uncertainties associated with the
composition and concentration of Appian’s customer base and their
demand for its platform and satisfaction with the services provided
by Appian, Appian’s ability to operate in compliance with
applicable laws and regulations, Appian’s strategic relationships
with third parties, and additional risks and uncertainties set
forth in the “Risk Factors” section of Appian’s most recent annual
report on Form 10-K, quarterly reports on Form 10-Q, and other
filings with the Securities and Exchange Commission. Moreover,
Appian operates in a very competitive and rapidly changing
environment. New risks emerge from time to time. It is not possible
for Appian’s management to predict all risks, nor can Appian assess
the impact of all factors on its business or the extent to which
any factor, or combination of factors, may cause actual results to
differ materially from those contained in any forward-looking
statements Appian may make. In light of these risks, uncertainties,
and assumptions, Appian cannot guarantee future results, levels of
activity, performance, achievements, or events and circumstances
reflected in the forward-looking statements will occur. Appian is
under no duty to update any of these forward-looking statements
after the date of this press release to conform these statements to
actual results or revised expectations, except as required by
law.
Investor ContactSrinivas Anantha,
CFA703-442-8844investors@appian.com
Media ContactBen
Farrell703-442-1067ben.farrell@appian.com
|
APPIAN CORPORATIONCONSOLIDATED BALANCE
SHEETS(in thousands, except par value and share data) |
|
|
As of December 31, |
|
|
2023 |
|
|
|
2022 |
|
Assets |
|
|
|
Current
assets |
|
|
|
Cash and cash equivalents |
$ |
149,351 |
|
|
$ |
148,132 |
|
Short-term investments and marketable securities |
|
9,653 |
|
|
|
47,863 |
|
Accounts receivable, net of allowance of $2,606 and $2,125,
respectively |
|
171,561 |
|
|
|
165,964 |
|
Deferred commissions, current |
|
34,261 |
|
|
|
30,196 |
|
Prepaid expenses and other current assets |
|
49,529 |
|
|
|
28,093 |
|
Restricted cash, current |
|
— |
|
|
|
2,249 |
|
Total current assets |
|
414,355 |
|
|
|
422,497 |
|
Property and equipment, net of
accumulated depreciation of $25,141 and $18,864, respectively |
|
42,682 |
|
|
|
41,855 |
|
Goodwill |
|
27,106 |
|
|
|
26,349 |
|
Intangible assets, net of
accumulated amortization of $4,152 and $2,715, respectively |
|
3,889 |
|
|
|
5,251 |
|
Right-of-use assets for
operating leases |
|
39,975 |
|
|
|
37,248 |
|
Deferred commissions, net of
current portion |
|
59,764 |
|
|
|
55,788 |
|
Deferred tax assets |
|
3,453 |
|
|
|
1,940 |
|
Other assets |
|
36,279 |
|
|
|
3,286 |
|
Total
assets |
$ |
627,503 |
|
|
$ |
594,214 |
|
Liabilities and
Stockholders’ Equity |
|
|
|
Current
liabilities |
|
|
|
Accounts payable |
$ |
6,174 |
|
|
$ |
7,997 |
|
Accrued expenses |
|
11,046 |
|
|
|
12,227 |
|
Accrued compensation and related benefits |
|
38,003 |
|
|
|
40,718 |
|
Deferred revenue |
|
235,992 |
|
|
|
194,768 |
|
Debt |
|
66,368 |
|
|
|
2,740 |
|
Operating lease liabilities |
|
11,698 |
|
|
|
8,681 |
|
Other current liabilities |
|
1,891 |
|
|
|
3,121 |
|
Total current liabilities |
|
371,172 |
|
|
|
270,252 |
|
Long-term debt |
|
140,221 |
|
|
|
115,379 |
|
Non-current operating lease
liabilities |
|
59,067 |
|
|
|
57,225 |
|
Deferred revenue,
non-current |
|
4,700 |
|
|
|
5,556 |
|
Deferred tax liabilities |
|
2 |
|
|
|
102 |
|
Total
liabilities |
|
575,162 |
|
|
|
448,514 |
|
Stockholders’
equity |
|
|
|
Class A common stock—par value
$0.0001; 500,000,000 shares authorized as of December 31, 2023
and 2022 and 42,169,970 and 41,320,091 shares issued and
outstanding as of December 31, 2023 and 2022,
respectively |
|
4 |
|
|
|
4 |
|
Class B common stock—par value
$0.0001; 100,000,000 shares authorized as December 31, 2023
and 2022 and 31,196,796 and 31,497,796 shares issued and
outstanding as of December 31, 2023 and 2022,
respectively |
|
3 |
|
|
|
3 |
|
Additional paid-in
capital |
|
595,781 |
|
|
|
561,390 |
|
Accumulated other
comprehensive loss |
|
(23,555 |
) |
|
|
(7,246 |
) |
Accumulated deficit |
|
(519,892 |
) |
|
|
(408,451 |
) |
Total stockholders’
equity |
|
52,341 |
|
|
|
145,700 |
|
Total liabilities and
stockholders’ equity |
$ |
627,503 |
|
|
$ |
594,214 |
|
|
APPIAN CORPORATIONCONSOLIDATED STATEMENTS
OF OPERATIONS(in thousands, except per share data) |
|
|
Three Months EndedDecember 31, |
|
Year EndedDecember 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
(unaudited) |
|
|
|
|
Revenue |
|
|
|
|
|
|
|
Subscriptions |
$ |
115,783 |
|
|
$ |
93,244 |
|
|
$ |
412,337 |
|
|
$ |
340,152 |
|
Professional services |
|
29,536 |
|
|
|
32,542 |
|
|
|
133,026 |
|
|
|
127,839 |
|
Total
revenue |
|
145,319 |
|
|
|
125,786 |
|
|
|
545,363 |
|
|
|
467,991 |
|
Cost of
revenue |
|
|
|
|
|
|
|
Subscriptions |
|
11,071 |
|
|
|
9,942 |
|
|
|
43,563 |
|
|
|
36,005 |
|
Professional services |
|
23,244 |
|
|
|
25,289 |
|
|
|
99,759 |
|
|
|
97,301 |
|
Total cost of
revenue |
|
34,315 |
|
|
|
35,231 |
|
|
|
143,322 |
|
|
|
133,306 |
|
Gross
profit |
|
111,004 |
|
|
|
90,555 |
|
|
|
402,041 |
|
|
|
334,685 |
|
Operating
expenses |
|
|
|
|
|
|
|
Sales and marketing |
|
61,043 |
|
|
|
63,270 |
|
|
|
242,381 |
|
|
|
220,374 |
|
Research and development |
|
34,596 |
|
|
|
37,808 |
|
|
|
153,098 |
|
|
|
139,210 |
|
General and administrative |
|
32,193 |
|
|
|
30,097 |
|
|
|
114,535 |
|
|
|
120,111 |
|
Total operating
expenses |
|
127,832 |
|
|
|
131,175 |
|
|
|
510,014 |
|
|
|
479,695 |
|
Operating
loss |
|
(16,828 |
) |
|
|
(40,620 |
) |
|
|
(107,973 |
) |
|
|
(145,010 |
) |
Other non-operating
(income) expense |
|
|
|
|
|
|
|
Other (income) expense, net |
|
(12,966 |
) |
|
|
(9,271 |
) |
|
|
(17,603 |
) |
|
|
3,545 |
|
Interest expense |
|
5,072 |
|
|
|
1,451 |
|
|
|
17,862 |
|
|
|
1,673 |
|
Total other
non-operating (income) expense |
|
(7,894 |
) |
|
|
(7,820 |
) |
|
|
259 |
|
|
|
5,218 |
|
Loss before income
taxes |
|
(8,934 |
) |
|
|
(32,800 |
) |
|
|
(108,232 |
) |
|
|
(150,228 |
) |
Income tax expense |
|
1,072 |
|
|
|
1,617 |
|
|
|
3,209 |
|
|
|
692 |
|
Net loss |
$ |
(10,006 |
) |
|
$ |
(34,417 |
) |
|
$ |
(111,441 |
) |
|
$ |
(150,920 |
) |
Net loss per share: |
|
|
|
|
|
|
|
Basic and diluted |
$ |
(0.14 |
) |
|
$ |
(0.47 |
) |
|
$ |
(1.52 |
) |
|
$ |
(2.08 |
) |
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
Basic and diluted |
|
73,310 |
|
|
|
72,703 |
|
|
|
73,102 |
|
|
|
72,455 |
|
|
APPIAN CORPORATIONSTOCK-BASED COMPENSATION
EXPENSE(in thousands) |
|
|
Three Months EndedDecember 31, |
|
Year EndedDecember 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
(unaudited) |
|
|
|
|
Cost of revenue |
|
|
|
|
|
|
|
Subscriptions |
$ |
212 |
|
|
$ |
284 |
|
|
$ |
925 |
|
|
$ |
996 |
|
Professional services |
|
1,457 |
|
|
|
1,521 |
|
|
|
6,055 |
|
|
|
5,309 |
|
Operating expenses |
|
|
|
|
|
|
|
Sales and marketing |
|
2,380 |
|
|
|
2,431 |
|
|
|
10,842 |
|
|
|
9,152 |
|
Research and development |
|
3,020 |
|
|
|
3,692 |
|
|
|
12,486 |
|
|
|
12,523 |
|
General and administrative |
|
3,103 |
|
|
|
3,475 |
|
|
|
13,079 |
|
|
|
10,850 |
|
Total stock-based compensation
expense |
$ |
10,172 |
|
|
$ |
11,403 |
|
|
$ |
43,387 |
|
|
$ |
38,830 |
|
|
APPIAN CORPORATIONCONSOLIDATED STATEMENTS
OF CASH FLOWS(in thousands) |
|
|
Year Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
Cash flows from
operating activities: |
|
|
|
Net loss |
$ |
(111,441 |
) |
|
$ |
(150,920 |
) |
Adjustments to reconcile net loss to net cash used by
operating activities: |
|
|
|
Stock-based compensation |
|
43,387 |
|
|
|
38,830 |
|
Depreciation expense and amortization of intangible assets |
|
9,473 |
|
|
|
7,297 |
|
Bad debt expense |
|
1,091 |
|
|
|
1,298 |
|
Amortization of debt issuance costs |
|
444 |
|
|
|
43 |
|
Loss on disposal of property and equipment |
|
— |
|
|
|
3 |
|
Deferred income taxes |
|
(1,541 |
) |
|
|
(1,089 |
) |
Foreign currency transaction gains, net |
|
(12,263 |
) |
|
|
— |
|
Changes in assets and liabilities: |
|
|
|
Accounts receivable |
|
(1,868 |
) |
|
|
(37,922 |
) |
Prepaid expenses and other assets |
|
(54,753 |
) |
|
|
(2,027 |
) |
Deferred commissions |
|
(8,043 |
) |
|
|
(12,298 |
) |
Accounts payable and accrued expenses |
|
(1,394 |
) |
|
|
(3,289 |
) |
Accrued compensation and related benefits |
|
(3,157 |
) |
|
|
6,582 |
|
Other current and non-current liabilities |
|
(1,134 |
) |
|
|
(264 |
) |
Deferred revenue |
|
28,668 |
|
|
|
47,534 |
|
Operating lease assets and liabilities |
|
2,089 |
|
|
|
(329 |
) |
Net cash used by operating activities |
|
(110,442 |
) |
|
|
(106,551 |
) |
Cash flows from
investing activities: |
|
|
|
Proceeds from maturities of investments |
|
91,670 |
|
|
|
84,642 |
|
Purchases of investments |
|
(53,443 |
) |
|
|
(65,283 |
) |
Purchases of property and equipment |
|
(9,637 |
) |
|
|
(9,095 |
) |
Net cash provided by investing activities |
|
28,590 |
|
|
|
10,264 |
|
Cash flows from
financing activities: |
|
|
|
Proceeds from borrowings |
|
92,000 |
|
|
|
120,000 |
|
Payments for debt issuance costs |
|
(276 |
) |
|
|
(1,940 |
) |
Debt repayments |
|
(3,563 |
) |
|
|
(625 |
) |
Payments for employee taxes related to the net share settlement of
equity awards |
|
(9,748 |
) |
|
|
— |
|
Proceeds from exercise of common stock options |
|
752 |
|
|
|
25,432 |
|
Net cash provided by financing activities |
|
79,165 |
|
|
|
142,867 |
|
Effect of foreign
exchange rate changes on cash, cash equivalents, and restricted
cash |
|
1,657 |
|
|
|
(159 |
) |
Net (decrease)
increase in cash, cash equivalents, and restricted
cash |
|
(1,030 |
) |
|
|
46,421 |
|
Cash, cash
equivalents, and restricted cash at beginning of
period |
|
150,381 |
|
|
|
103,960 |
|
Cash, cash
equivalents, and restricted cash at end of period |
$ |
149,351 |
|
|
$ |
150,381 |
|
|
|
|
|
Supplemental cash flow
information: |
|
|
|
Cash paid for interest |
$ |
16,906 |
|
|
$ |
1,671 |
|
Cash paid for income taxes |
$ |
3,999 |
|
|
$ |
1,239 |
|
Supplemental non-cash
investing and financing information: |
|
|
|
Accrued capital expenditures |
$ |
654 |
|
|
$ |
1,774 |
|
|
APPIAN CORPORATIONRECONCILIATION OF GAAP
MEASURES TO NON-GAAP MEASURES(unaudited, in thousands,
except per share data) |
|
|
GAAPMeasure |
|
Stock-BasedCompensation |
|
LitigationExpense |
|
JPIAmortization |
|
SeveranceCosts |
|
Non-GAAPMeasure |
Three
Months Ended December 31, 2023 |
Subscriptions cost of revenue |
$ |
11,071 |
|
|
$ |
(212 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
10,859 |
|
Professional services cost of revenue |
|
23,244 |
|
|
|
(1,457 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
21,787 |
|
Total cost of revenue |
|
34,315 |
|
|
|
(1,669 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
32,646 |
|
Total operating expense |
|
127,832 |
|
|
|
(8,503 |
) |
|
|
(708 |
) |
|
|
(4,553 |
) |
|
|
— |
|
|
|
114,068 |
|
Operating loss |
|
(16,828 |
) |
|
|
10,172 |
|
|
|
708 |
|
|
|
4,553 |
|
|
|
— |
|
|
|
(1,395 |
) |
Income tax expense |
|
1,072 |
|
|
|
571 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,643 |
|
Net income |
|
(10,006 |
) |
|
|
9,601 |
|
|
|
708 |
|
|
|
4,553 |
|
|
|
— |
|
|
|
4,856 |
|
Net income per share, basic(a) |
$ |
(0.14 |
) |
|
$ |
0.13 |
|
|
$ |
0.01 |
|
|
$ |
0.06 |
|
|
$ |
— |
|
|
$ |
0.07 |
|
Net income per share, diluted(b) |
$ |
(0.14 |
) |
|
$ |
0.13 |
|
|
$ |
0.01 |
|
|
$ |
0.06 |
|
|
$ |
— |
|
|
$ |
0.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended December 31, 2023 |
|
|
|
|
Subscriptions cost of revenue |
$ |
43,563 |
|
|
$ |
(925 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(30 |
) |
|
$ |
42,608 |
|
Professional services cost of revenue |
|
99,759 |
|
|
|
(6,055 |
) |
|
|
— |
|
|
|
— |
|
|
|
(158 |
) |
|
|
93,546 |
|
Total cost of revenue |
|
143,322 |
|
|
|
(6,980 |
) |
|
|
— |
|
|
|
— |
|
|
|
(188 |
) |
|
|
136,154 |
|
Total operating expense |
|
510,014 |
|
|
|
(36,407 |
) |
|
|
2,064 |
|
|
|
(6,038 |
) |
|
|
(6,111 |
) |
|
|
463,522 |
|
Operating loss |
|
(107,973 |
) |
|
|
43,387 |
|
|
|
(2,064 |
) |
|
|
6,038 |
|
|
|
6,299 |
|
|
|
(54,313 |
) |
Income tax expense |
|
3,209 |
|
|
|
1,302 |
|
|
|
— |
|
|
|
— |
|
|
|
139 |
|
|
|
4,650 |
|
Net loss |
|
(111,441 |
) |
|
|
42,085 |
|
|
|
(2,064 |
) |
|
|
6,038 |
|
|
|
6,160 |
|
|
|
(59,222 |
) |
Net loss per share, basic and diluted |
$ |
(1.52 |
) |
|
$ |
0.58 |
|
|
$ |
(0.03 |
) |
|
$ |
0.08 |
|
|
$ |
0.08 |
|
|
$ |
(0.81 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Per share amounts do not foot due to rounding.(b) Accounts
for the impact of 2.0 million shares of dilutive securities
resulting in total diluted shares of 75.3 million.
|
GAAPMeasure |
|
Stock-BasedCompensation |
|
LitigationExpense |
|
Non-GAAPMeasure |
Three
Months Ended December 31, 2022 |
Subscriptions cost of revenue |
$ |
9,942 |
|
|
$ |
(284 |
) |
|
$ |
— |
|
|
$ |
9,658 |
|
Professional services cost of revenue |
|
25,289 |
|
|
|
(1,521 |
) |
|
|
— |
|
|
|
23,768 |
|
Total cost of revenue |
|
35,231 |
|
|
|
(1,805 |
) |
|
|
— |
|
|
|
33,426 |
|
Total operating expense |
|
131,175 |
|
|
|
(9,598 |
) |
|
|
(2,453 |
) |
|
|
119,124 |
|
Operating loss |
|
(40,620 |
) |
|
|
11,403 |
|
|
|
2,453 |
|
|
|
(26,764 |
) |
Net loss |
|
(34,417 |
) |
|
|
11,403 |
|
|
|
2,453 |
|
|
|
(20,561 |
) |
Net loss per share, basic and diluted |
$ |
(0.47 |
) |
|
$ |
0.16 |
|
|
$ |
0.03 |
|
|
$ |
(0.28 |
) |
|
|
|
|
|
|
|
|
Year
Ended December 31, 2022 |
Subscriptions cost of revenue |
$ |
36,005 |
|
|
$ |
(996 |
) |
|
$ |
— |
|
|
$ |
35,009 |
|
Professional services cost of revenue |
|
97,301 |
|
|
|
(5,309 |
) |
|
|
— |
|
|
|
91,992 |
|
Total cost of revenue |
|
133,306 |
|
|
|
(6,305 |
) |
|
|
— |
|
|
|
127,001 |
|
Total operating expense |
|
479,695 |
|
|
|
(32,525 |
) |
|
|
(22,886 |
) |
|
|
424,284 |
|
Operating loss |
|
(145,010 |
) |
|
|
38,830 |
|
|
|
22,886 |
|
|
|
(83,294 |
) |
Net loss |
|
(150,920 |
) |
|
|
38,830 |
|
|
|
22,886 |
|
|
|
(89,204 |
) |
Net loss per share, basic and diluted |
$ |
(2.08 |
) |
|
$ |
0.54 |
|
|
$ |
0.32 |
|
|
$ |
(1.23 |
) |
|
Three Months EndedDecember 31, |
|
Year EndedDecember 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Reconciliation of
adjusted EBITDA: |
|
|
|
|
|
|
|
GAAP net loss |
$ |
(10,006 |
) |
|
$ |
(34,417 |
) |
|
$ |
(111,441 |
) |
|
$ |
(150,920 |
) |
Other (income) expense, net |
|
(12,966 |
) |
|
|
(9,271 |
) |
|
|
(17,603 |
) |
|
|
3,545 |
|
Interest expense |
|
5,072 |
|
|
|
1,451 |
|
|
|
17,862 |
|
|
|
1,673 |
|
Income tax expense |
|
1,072 |
|
|
|
1,617 |
|
|
|
3,209 |
|
|
|
692 |
|
Depreciation expense and amortization of intangible assets |
|
2,427 |
|
|
|
1,965 |
|
|
|
9,473 |
|
|
|
7,297 |
|
Stock-based compensation expense |
|
10,172 |
|
|
|
11,403 |
|
|
|
43,387 |
|
|
|
38,830 |
|
Litigation Expense |
|
708 |
|
|
|
2,453 |
|
|
|
(2,064 |
) |
|
|
22,886 |
|
JPI Amortization |
|
4,553 |
|
|
|
— |
|
|
|
6,038 |
|
|
|
— |
|
Severance Costs |
|
— |
|
|
|
— |
|
|
|
6,299 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
1,032 |
|
|
$ |
(24,799 |
) |
|
$ |
(44,840 |
) |
|
$ |
(75,997 |
) |
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