Press Release

Appian Announces Second Quarter 2021 Financial Results

Appian Contributor
August 5, 2021

Cloud subscription revenue increased 44% year-over-year to $42.5 million

Subscriptions revenue increased 37% year-over-year to $56.9 million

McLean, VA – August 5, 2021 Appian (NASDAQ: APPN)  today announced financial results for the second quarter ended June 30, 2021.

“In Q2, Appian increased cloud subscription revenue by 44% and announced the acquisition of a leading process mining firm. With this acquisition, we are unifying process mining and low-code automation. Companies can now discover their processes and automate them within the Appian platform,” said Matt Calkins, CEO & Founder. 

Second Quarter 2021 Financial Highlights:

  • Revenue: Cloud subscription revenue was $42.5 million for the second quarter of 2021, up 44% compared to the second quarter of 2020. Total subscriptions revenue, which includes sales of our SaaS subscriptions, on-premises term license subscriptions, and maintenance and support, increased 37% year-over-year to $56.9 million for the second quarter of 2021. Professional services revenue was $26.1 million for the second quarter of 2021, compared to $25.4 million for the second quarter of 2020. Total revenue was $83.0 million for the second quarter of 2021, up 24% compared to the second quarter of 2020. Cloud subscription revenue retention rate was 121% as of June 30, 2021.
  • Operating loss and non-GAAP operating loss: GAAP operating loss was $(24.6) million for the second quarter of 2021, compared to $(12.1) million for the second quarter of 2020. Non-GAAP operating loss was $(17.6) million for the second quarter of 2021, compared to $(8.5) million for the second quarter of 2020.
  • Net loss and non-GAAP net loss: GAAP net loss was $(23.8) million for the second quarter of 2021, compared to $(11.8) million for the second quarter of 2020. GAAP net loss per share was $(0.34) for the second quarter of 2021, based on 71.0 million weighted-average shares outstanding, compared to $(0.17) for the second quarter of 2020, based on 68.4 million weighted-average shares outstanding. Non-GAAP net loss was $(16.9) million for the second quarter of 2021, compared to $(8.2) million for the second quarter of 2020. Non-GAAP net loss per share was $(0.24) for the second quarter of 2021, based on 71.0 million basic and diluted shares outstanding, compared to the $(0.12) net loss per share for the second quarter of 2020, based on 68.4 million basic and diluted shares outstanding.
  • Adjusted EBITDA: Adjusted EBITDA loss was $(16.3) million for the second quarter of 2021, compared to adjusted EBITDA loss of $(7.0) million for the second quarter of 2020.
  • Balance sheet and cash flows: As of June 30, 2021, Appian had total cash, cash equivalents, and investments of $249.7 million. Net cash used in operating activities was $(6.6) million for the three months ended June 30, 2021 compared to $(3.1) million of net cash used in operating activities for the same period in 2020.

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.”

Second Quarter 2021 Business Highlights:

Appian announced KPMG, Accenture, PwC, Wipro, Infosys, Vuram, Appcino, GxP Partners, and Needzaio as recipients of 2021 Partner awards. The awards recognize their achievements and contributions to the Appian community.

Bankhaus von der Heydt, one of Europe's oldest banks, delivers new products 10x faster with the Appian Low-code Automation Platform.

CNA Financial Corporation, a top commercial insurer, wins the Celent 2021 Model Insurer Award. They were selected for developing CNA ComPass, a solution built on the Appian Low-code Automation Platform.

Entelgy, a consultancy company, deployed the Appian Low-code Automation Platform and accelerated the time between invoicing and payment by 35%. They process 98% of all invoices without human intervention, using Appian Robotic Process Automation.

Appian unveiled the latest version of its low-code automation platform, including enhanced AI-driven Intelligent Document Processing (IDP), new design guidance and developer collaboration features, and enhanced DevSecOps capabilities.

Financial Outlook:

As of August 5, 2021, guidance for 2021 is as follows

Third Quarter 2021 Guidance

  • Cloud subscription revenue is expected to be in the range of $45.0 million and $45.5 million, representing year-over-year growth of between 31% and 33%.
  • Total revenue is expected to be in the range of $90.5 million and $91.0 million, representing a year-over-year increase of between 17% and 18%.
  • Adjusted EBITDA loss is expected to be in the range of $(13.0) million and $(11.0) million.
  • Non-GAAP net loss per share is expected to be in the range of $(0.20) and $(0.17), assuming weighted average common shares outstanding of 71.3 million.

Full Year 2021 Guidance

  • Cloud subscription revenue is expected to be in the range of $174.0 million and $175.0 million, representing year-over-year growth of 35%
  • Total revenue is expected to be in the range of $355.0 million and $357.0 million, representing a year-over-year increase of 17%.
  • Adjusted EBITDA loss is expected to be in the range of $(40.0) million and $(38.0) million.
  • Non-GAAP net loss per share is expected to be in the range of $(0.68) and $(0.65), assuming weighted average common shares outstanding of 71.3 million.

Conference Call Details: 

Appian will host a conference call today, August 5, 2021, at 5:00 p.m. ET to discuss Appian's financial results for the second quarter ended June 30, 2021 and business outlook.

The live webcast of the conference call can be accessed on the Investor Relations page of Appian’s website at http://investors.appian.com. To access the call, please dial (800) 430-8332 in the U.S. or (323) 347-3277 internationally (Conference ID: 6145770). Following the call, an archived webcast will be available at the same location on the Investor Relations page. A telephone replay will be available for one week at (844) 512-2921 in the U.S. or (412) 317-6671 internationally with recording access code 6145770.

Management will present at the following investor conferences:

  • Oppenheimer 24th Annual Technology, Internet & Communications Conference. The presentation is scheduled for Tuesday, August 10th at 8:15 a.m. ET.
  • Keybanc’s 2021 Technology Leadership Forum. Management will be participating in a panel: The Evolving Automation Software Stack – From RPA to Low Code/No-Code, scheduled for Wednesday, August 11th at 10:00 a.m, ET. Management will also participate in a fire-side chat presentation scheduled for Wednesday, August 11th at 12:40 p.m. ET.

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 measures, including non-GAAP operating loss, non-GAAP net loss, non-GAAP net loss per share, non-GAAP weighted average shares outstanding, and adjusted EBITDA. These non-GAAP financial measures exclude the effect of stock-based compensation expense, gains or losses on disposals of assets, and certain litigation-related expenses consisting of legal and other professional fees which are not indicative of our core operating performance and are not part of our normal course of business.

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, please see the reconciliation of these non-GAAP financial measures to their nearest comparable GAAP measures at the end of this press release. A reconciliation of non-GAAP guidance measures to the most comparable GAAP measures is not available on a forward-looking basis without unreasonable efforts due to the high variability, complexity, and low visibility with respect to the charges excluded from these non-GAAP measures.

Appian uses these non-GAAP financial 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 its 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.

Forward-Looking Statements

This press release includes forward-looking statements. 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 third quarter and full year 2021, the impact of COVID-19 on our business and on the global economy, future investment by Appian in its go-to-market initiatives, increased demand for the Appian 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," 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 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, 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, the potential fluctuation of Appian’s future quarterly results of operations, Appian’s ability to shift its revenue towards subscriptions and away from professional services, Appian’s ability to operate in compliance with applicable laws and regulations, Appian’s strategic relationships with third parties and use of third-party licensed software and its platform’s compatibility with third-party applications, the timing of Appian’s recognition of subscriptions revenue which may delay the effect of near term changes in sales on its operating results, and the additional risks and uncertainties set forth in the "Risk Factors" section of Appian’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the Securities and Exchange Commission on February 18, 2021 and other reports that Appian has filed 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 Contact

Srinivas Anantha, CFA

703-442-8844

investors@appian.com

 

About Appian

Appian helps organizations build apps and workflows rapidly, with a low-code platform. Combining people, technologies, and data in a single workflow, Appian can help companies maximize their resources and improve business results. Many of the world’s largest organizations use Appian applications to improve customer experience, achieve operational excellence, and simplify global risk management and compliance.

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