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Appian Corporation (APPN)

NasdaqGM - NasdaqGM Real Time Price. Currency in USD
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81.50-1.76 (-2.11%)
At close: 4:00PM EDT
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Previous close83.26
Open82.80
Bid0.00 x 3000
Ask0.00 x 800
Day's range78.43 - 82.80
52-week range44.03 - 260.00
Volume776,433
Avg. volume979,995
Market cap5.774B
Beta (5Y monthly)1.69
PE ratio (TTM)N/A
EPS (TTM)-0.51
Earnings date04-Aug-2021 - 09-Aug-2021
Forward dividend & yieldN/A (N/A)
Ex-dividend dateN/A
1y target est117.25
  • Appian Announces First Quarter 2021 Financial Results
    GlobeNewswire

    Appian Announces First Quarter 2021 Financial Results

    Cloud subscription revenue increased 38% year-over-year to $39.1 millionSubscriptions revenue increased 26% year-over-year to $63.8 million MCLEAN, Va., May 06, 2021 (GLOBE NEWSWIRE) -- Appian (Nasdaq: APPN) today announced financial results for the first quarter ended March 31, 2021. “Once again, we exceeded our guidance, grew cloud subscription revenue by 38%, and set a new high mark for gross profit margin. Appian leads in unifying the Low-code Automation market and providing agility to our customers,” said Matt Calkins, CEO & Founder. First Quarter 2021 Financial Highlights: Revenue: Cloud subscription revenue was $39.1 million for the first quarter of 2021, up 38% compared to the first quarter of 2020. Total subscriptions revenue, which includes sales of our SaaS subscriptions, on-premises term license subscriptions, and maintenance and support, increased 26% year-over-year to $63.8 million for the first quarter of 2021. Professional services revenue was $25.1 million for the first quarter of 2021, compared to $28.4 million for the first quarter of 2020. Total revenue was $88.9 million for the first quarter of 2021, up 13% compared to the first quarter of 2020. Cloud subscription revenue retention rate was 118% as of March 31, 2021.Operating loss and non-GAAP operating loss: GAAP operating loss was $(10.5) million for the first quarter of 2021, compared to $(8.6) million for the first quarter of 2020. Non-GAAP operating loss was $(0.9) million for the first quarter of 2021, compared to $(5.1) million for the first quarter of 2020.Net loss and non-GAAP net loss: GAAP net loss was $(13.6) million for the first quarter of 2021, compared to $(11.7) million for the first quarter of 2020. GAAP net loss per share was $(0.19) for the first quarter of 2021, based on 70.7 million weighted-average shares outstanding, compared to $(0.17) for the first quarter of 2020, based on 67.5 million weighted-average shares outstanding. Non-GAAP net loss was $(4.0) million for the first quarter of 2021, compared to $(8.2) million for the first quarter of 2020. Non-GAAP net loss per share was $(0.06) for the first quarter of 2021, based on 70.7 million basic and diluted shares outstanding, compared to the $(0.12) net loss per share for the first quarter of 2020, based on 67.5 million basic and diluted shares outstanding.Adjusted EBITDA: Adjusted EBITDA was $0.4 million for the first quarter of 2021, compared to adjusted EBITDA loss of $(3.6) million for the first quarter of 2020.Balance sheet and cash flows: As of March 31, 2021, Appian had total cash, cash equivalents, and investments of $255.1 million. Net cash used in operating activities was $(2.8) million for the three months ended March 31, 2021 compared to $(3.9) 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.” First Quarter 2021 Business Highlights: Appian announced the appointment of Denise Broady as Chief Marketing Officer.Accenture selected Appian as a Core Partner in the INTIENT Network for Life Sciences.Appian named a 2021 Gartner Peer Insights customers' choice for enterprise low-code application platforms.HP Hood deployed Appian Workforce Safety Solution with Vaccination Insights.The University of Texas at Dallas integrated the Appian platform into the core curriculum of its new Intelligent Automation course. Financial Outlook: As of May 6, 2021, guidance for 2021 is as follows: Second Quarter 2021 Guidance: Cloud subscription revenue is expected to be in the range of $41.0 million and $41.5 million, representing year-over-year growth of between 39% and 40%.Total revenue is expected to be in the range of $77.0 million and $78.0 million, representing a year-over-year increase of between 15% and 17%.Adjusted EBITDA loss is expected to be in the range of $(16.0) million and $(14.0) million.Non-GAAP net loss per share is expected to be in the range of $(0.26) and $(0.23), assuming weighted average common shares outstanding of 71.0 million. Full Year 2021 Guidance: Cloud subscription revenue is expected to be in the range of $171.0 million and $172.0 million, representing year-over-year growth of between 32% and 33%.Total revenue is expected to be in the range of $353.0 million and $355.0 million, representing a year-over-year increase of between 16% and 17%.Adjusted EBITDA loss is expected to be in the range of $(38.0) million and $(36.0) 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 71.2 million. Conference Call Details: Appian will host a conference call today, May 6, 2021, at 5:00 p.m. ET to discuss Appian's financial results for the first quarter ended March 31, 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 (877) 407-0792 in the U.S. or (201) 689-8263 internationally. 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 13717973. Management will also present at the following investor conference: 16th Annual Needham Virtual Technology & Media Conference. The presentation is scheduled for Monday, May 17th at 8:45 a.m. ET. About Appian Appian helps organizations build apps and workflows rapidly, with a low-code automation 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. 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 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 or 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 second 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 ContactMark LynchChief Financial Officer703-442-8844mark.lynch@appian.com Media ContactBen FarrellVice President, Corporate Communications703-442-1067ben.farrell@appian.com APPIAN CORPORATION AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(in thousands, except share and per share data) As of March 31, December 31, 2021 2020 (unaudited) Assets Current assets Cash and cash equivalents$114,752 $112,462 Short-term investments and marketable securities 118,012 109,826 Accounts receivable, net of allowance of $1,400 as of each of March 31, 2021 and December 31, 2020 87,424 97,278 Deferred commissions, current 18,749 17,899 Prepaid expenses and other current assets 28,484 27,955 Total current assets 367,421 365,420 Property and equipment, net 34,682 35,404 Long-term investments 22,317 36,120 Goodwill 4,651 4,862 Intangible assets, net of accumulated amortization of $513 and $429 as of March 31, 2021 and December 31, 2020, respectively 1,566 1,744 Operating right-of-use assets 30,610 30,659 Deferred commissions, net of current portion 35,991 34,198 Deferred tax assets 482 489 Other assets 2,875 3,625 Total assets$500,595 $512,521 Liabilities and Stockholders’ Equity Current liabilities Accounts payable$4,194 $2,967 Accrued expenses 5,777 5,821 Accrued compensation and related benefits 20,919 22,981 Deferred revenue, current 107,893 116,256 Operating lease liabilities, current 7,664 6,923 Other current liabilities 509 940 Total current liabilities 146,956 155,888 Operating lease liabilities, net of current portion 50,572 51,194 Deferred revenue, net of current portion 2,698 3,886 Deferred tax liabilities 65 70 Other non-current liabilities 4,744 4,878 Total liabilities 205,035 215,916 Stockholders’ equity Class A common stock - par value $0.0001; 500,000,000 shares authorized and 39,321,079 shares issued and outstanding as of March 31, 2021; 500,000,000 shares authorized and 38,971,324 shares issued and outstanding as of December 31, 2020 4 4 Class B common stock - par value $0.0001; 100,000,000 shares authorized and 31,503,666 shares issued and outstanding as of March 31, 2021; 100,000,000 shares authorized and 31,707,866 shares issued and outstanding as of December 31, 2020 3 3 Additional paid-in capital 479,017 470,498 Accumulated other comprehensive loss (987) (5,010)Accumulated deficit (182,477) (168,890)Total stockholders’ equity 295,560 296,605 Total liabilities and stockholders’ equity$500,595 $512,521 APPIAN CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited, in thousands, except share and per share data) Three Months Ended March 31, 2021 2020 Revenue Subscriptions$63,766 $50,436 Professional services 25,089 28,428 Total revenue 88,855 78,864 Cost of revenue Subscriptions 5,854 5,383 Professional services 17,675 18,736 Total cost of revenue 23,529 24,119 Gross profit 65,326 54,745 Operating expenses Sales and marketing 35,984 34,172 Research and development 20,690 16,038 General and administrative 19,142 13,141 Total operating expenses 75,816 63,351 Operating loss (10,490) (8,606)Other expense Other expense, net 2,893 3,114 Interest expense 81 143 Total other expense 2,974 3,257 Loss before income taxes (13,464) (11,863)Income tax expense (benefit) 123 (194)Net loss$(13,587) $(11,669)Net loss per share: Basic and diluted$(0.19) $(0.17)Weighted average common shares outstanding: Basic and diluted 70,730,235 67,528,331 APPIAN CORPORATION AND SUBSIDIARIES STOCK BASED COMPENSATION EXPENSE (unaudited, in thousands) Three Months Ended March 31, 2021 2020 Cost of revenue Subscriptions$297 $213 Professional services 641 212 Operating expenses Sales and marketing 1,108 753 Research and development 1,015 553 General and administrative 4,833 1,745 Total stock-based compensation expense$7,894 $3,476 APPIAN CORPORATION AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited, in thousands) Three Months Ended March 31, 2021 2020 Cash flows from operating activities: Net loss$(13,587) $(11,669)Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 1,278 1,511 Bad debt expense― 200 Loss on disposal of property and equipment― 7 Change in fair value of available-for-sale securities (8) ― Deferred income taxes (448) ― Stock-based compensation 7,894 3,476 Changes in assets and liabilities: Accounts receivable 12,651 5,751 Prepaid expenses and other assets (279) 37 Deferred commissions (2,642) 525 Accounts payable and accrued expenses 1,159 (1,800)Accrued compensation and related benefits (1,955) (399)Other current and non-current liabilities 151 (154)Deferred revenue (7,192) (2,503)Operating lease liabilities 168 1,159 Net cash used in operating activities (2,810) (3,859)Cash flows from investing activities: Proceeds from sale of investments 5,625 ― Payments for acquisitions, net of cash acquired ― (6,138)Purchases of property and equipment (468) (202)Net cash provided by (used in) investing activities 5,157 (6,340)Cash flows from financing activities: Principal payments on finance leases ― (357)Proceeds from exercise of common stock options 625 670 Net cash provided by financing activities 625 313 Effect of foreign exchange rate changes on cash and cash equivalents (682) (706)Net increase (decrease) in cash and cash equivalents 2,290 (10,592)Cash and cash equivalents, beginning of period 112,462 159,755 Cash and cash equivalents, end of period$114,752 $149,163 Supplemental disclosure of cash flow information: Cash paid for interest$88 $49 Cash paid for income taxes$148 $43 APPIAN CORPORATION AND SUBSIDIARIESRECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES(unaudited, in thousands, except share and per share data) Three Months Ended March 31, 2021 2020 Reconciliation of non-GAAP operating loss: GAAP operating loss$(10,490) $(8,606)Add back: Stock-based compensation expense 7,894 3,476 Litigation expenses(1) 1,687 ― Non-GAAP operating loss$(909) $(5,130) Reconciliation of non-GAAP net loss: GAAP net loss$(13,587) $(11,669)Add back: Stock-based compensation expense 7,894 3,476 Litigation expenses(1) 1,687 ― Loss on disposal of property and equipment ― 7 Non-GAAP net loss$(4,006) $(8,186) Non-GAAP earnings per share: Non-GAAP net loss$(4,006) $(8,186)Non-GAAP weighted average shares used to compute net loss per share, basic and diluted 70,730,235 67,528,331 Non-GAAP net loss per share, basic and diluted$(0.06) $(0.12) Reconciliation of non-GAAP net loss per share, basic and diluted: GAAP net loss per share, basic and diluted$(0.19) $(0.17)Add back: Non-GAAP adjustments to net loss per share 0.13 0.05 Non-GAAP net loss per share, basic and diluted$(0.06) $(0.12) Reconciliation of adjusted EBITDA: GAAP net loss$(13,587) $(11,669)Other expense, net 2,893 3,114 Interest expense 81 143 Income tax expense (benefit) 123 (194)Depreciation and amortization expense 1,278 1,511 Stock-based compensation expense 7,894 3,476 Litigation expenses(1) 1,687 ― Adjusted EBITDA$369 $(3,619) (1) Consists of professional fees and other costs incurred in connection with two separate lawsuits, one involving reciprocal false advertising and related claims with a competitor and one involving an effort to enforce our intellectual property. We believe the costs incurred related to these cases are outside of our ordinary course of business; therefore, exclusion of such costs aids to provide supplemental information and comparable financial results from period to period.

  • Appian Schedules First Quarter 2021 Financial Results Conference Call and Will Present at Upcoming Investor Conferences
    GlobeNewswire

    Appian Schedules First Quarter 2021 Financial Results Conference Call and Will Present at Upcoming Investor Conferences

    MCLEAN, Va., April 14, 2021 (GLOBE NEWSWIRE) -- Appian (NASDAQ: APPN) today announced that it will release financial results for the first quarter 2021 after market close on Thursday, May 6, 2021. The company also will host a conference call that day at 5:00 p.m. ET to review its financial results and business outlook. The live webcast of the conference call can be accessed on the Investor Relations page of the Company’s website at http://investors.appian.com. To access the call, please dial (877) 407-0792 in the U.S. or (201) 689-8263 internationally. 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 13717973. Management will also present at the following investor conferences. The William Blair Annual Growth Stock Virtual Conference. The presentation is scheduled for Tuesday, June 1st at 12:00 p.m. ET.Cowen Annual Technology, Media & Telecom Conference. The presentation is scheduled for Wednesday, June 2nd at 12:20 p.m. ET. The presentations will be webcast live, and the replays will be available for a limited time under the “News & Events” section on the Investor Relations website (http://investors.appian.com). About AppianAppian helps organizations build apps and workflows rapidly, with a low-code automation 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. For more information, visit www.appian.com. Investor ContactMark Lynch703-442-8844mark.lynch@appian.com Media ContactBen FarrellVice President, Corporate Communications703-442-1067ben.farrell@appian.com

  • Appian Announces Fourth Quarter and Full Year 2020 Financial Results
    GlobeNewswire

    Appian Announces Fourth Quarter and Full Year 2020 Financial Results

    Fourth quarter cloud subscription revenue increased 40% year-over-year to $36.9 million Full year cloud subscription revenue increased 36% year-over-year to $129.2 million MCLEAN, Va., Feb. 18, 2021 (GLOBE NEWSWIRE) -- Appian (Nasdaq: APPN) today announced financial results for the fourth quarter and full year ended December 31, 2020. “For the full year, we exceeded our guidance and grew cloud subscription revenue by 36% to $129.2 million. Low-code emerged in 2020 as a successful way for organizations to remain nimble in the face of change. Appian is leading this market because our low-code platform is more than 10x faster, our partner ecosystem is growing, and our customers are happy,” said Matt Calkins, CEO & Founder. Fourth Quarter 2020 Financial Highlights: Revenue: Cloud subscription revenue was $36.9 million for the fourth quarter of 2020, up 40% compared to the fourth quarter of 2019. Total subscriptions revenue, which includes sales of SaaS subscriptions, on-premises term license subscriptions and maintenance and support, increased 33% year-over-year to $56.1 million for the fourth quarter of 2020. Professional services revenue was $25.5 million for the fourth quarter of 2020, compared to $26.5 million for the fourth quarter of 2019. Total revenue was $81.6 million for the fourth quarter of 2020, up 19% compared to the fourth quarter of 2019. Cloud subscription revenue retention rate was 119% as of December 31, 2020. Operating loss and non-GAAP operating loss: GAAP operating loss was $(9.7) million for the fourth quarter of 2020, compared to $(13.1) million for the fourth quarter of 2019. Non-GAAP operating loss was $(5.1) million for the fourth quarter of 2020, compared to $(9.7) million for the fourth quarter of 2019.Net loss and non-GAAP net loss: GAAP net loss was $(6.4) million for the fourth quarter of 2020, compared to $(10.8) million for the fourth quarter of 2019. GAAP net loss per share was $(0.09) for the fourth quarter of 2020, based on 70.4 million weighted average shares outstanding, compared to $(0.16) for the fourth quarter of 2019, based on 67.3 million weighted average shares outstanding. Non-GAAP net loss was $(1.8) million for the fourth quarter of 2020, compared to $(7.4) million for the fourth quarter of 2019. Non-GAAP net loss per share was $(0.03) for the fourth quarter of 2020, based on 70.4 million weighted average shares outstanding, compared to $(0.11) per share for the fourth quarter of 2019, based on 67.3 million weighted average shares outstanding.Adjusted EBITDA: Adjusted EBITDA loss was $(3.7) million for the fourth quarter of 2020, compared to $(8.2) million for the fourth quarter of 2019. Full Year 2020 Financial Highlights: Revenue: Cloud subscription revenue was $129.2 million for the full year 2020, up 36% compared to the full year 2019. Total subscriptions revenue was $198.7 million for the full year 2020, an increase of 31% from the prior year. Professional services revenue was $105.9 million for the full year 2020, a decrease of 3% from the prior year. Total revenue was $304.6 million for the full year 2020, up 17% compared to the full year 2019. Operating loss and non-GAAP operating loss: GAAP operating loss was $(37.9) million for the full year 2020, compared to $(50.5) million for the full year 2019. Non-GAAP operating loss was $(22.6) million for the full year 2020, compared to $(34.0) million for the full year 2019.Net loss and non-GAAP net loss: GAAP net loss was $(33.5) million for the full year 2020, compared to $(50.7) million for the full year 2019. GAAP net loss per share was $(0.48) for the full year 2020, based on 69.1 million weighted average shares outstanding, compared to $(0.77) for the full year 2019, based on 65.5 million weighted average shares outstanding. Non-GAAP net loss was $(18.2) million for the full year 2020, compared to $(34.1) million for the full year 2019. Non-GAAP net loss per share was $(0.26) for the full year 2020, based on 69.1 million weighted average shares outstanding, compared to $(0.52) per share for the full year 2019, based on 65.5 million weighted average shares outstanding.Adjusted EBITDA: Adjusted EBITDA loss was $(16.8) million for the full year 2020, compared to $(29.3) million for the full year 2019.Balance sheet and cash flows: As of December 31, 2020, Appian had cash and cash equivalents and investments of $258.4 million. For the fourth quarter of 2020, net cash provided by operating activities was $5.8 million, compared to $(6.0) million of net cash used in operating activities for the same period in 2019. Net cash used in operating activities was $(7.6) million for the year ended December 31, 2020, compared to net cash used in operating activities of $(8.9) million for the year ended December 31, 2019. In accordance with U.S. GAAP, $17.0 million of tenant improvement allowance reimbursements received during the year ended December 31, 2019 are a source of cash in operating activities. 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.” Fourth Quarter 2020 Business Highlights: Appian RPA achieved the Federal Risk and Authorization Management Program (FedRAMP) certification, the only robotics process automation product to have its cloud components natively certified.Appian was named a Leader in Gartner’s 2020 Magic Quadrant for Enterprise Low-Code Application Platforms report for the second consecutive year.Appian was named a Leader in Nucleus Research’s 2020 Value Matrix for Low-Code Application Platforms report.Appian launched the Connected Claims solution for insurers to streamline the insurance claims process.Appian launched the Award Management solution for government organizations to automate an early stage of the award management process.Appian was named a 2020 Top Workplace by The Washington Post for the seventh consecutive year and the #1 technology employer. Financial Outlook: As of February 18, 2021, guidance for the first quarter 2021 and full year 2021 is as follows: First Quarter 2021 Guidance: Cloud subscription revenue is expected to be in the range of $37.7 million and $38.2 million, representing year-over-year growth of between 33% and 35%.Total revenue is expected to be in the range of $81.7 million and $82.7 million, representing a year-over-year increase of between 4% and 5%.Adjusted EBITDA loss is expected to be in the range of $(9.0) million and $(8.0) million.Non-GAAP net loss per share is expected to be in the range of $(0.15) and $(0.13). This assumes 70.8 million weighted average common shares outstanding. Full Year 2021 Guidance: Cloud subscription revenue is expected to be in the range of $167.5 million and $169.5 million, representing year-over-year growth of between 30% and 31%.Total revenue is expected to be in the range of $353.0 million and $355.0 million, representing a year-over-year increase of between 16% and 17%.Adjusted EBITDA loss is expected to be in the range of $(38.0) million and $(36.0) million.Non-GAAP net loss per share is expected to be in the range of $(0.64) and $(0.60). This assumes 71.2 million weighted average common shares outstanding. Conference Call Details: Appian will host a conference call today, February 18, 2021, at 5:00 p.m. ET to discuss Appian's financial results for the fourth quarter and full year ended December 31, 2020 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 (877) 407-0792 in the U.S. or (201) 689-8263 internationally. 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 13715479. About Appian Appian (NASDAQ: APPN) helps organizations build apps and workflows rapidly, with a low-code automation 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. 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 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 and losses on disposal of an asset. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or 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 that 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 that 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 first quarter and full year 2021, the impact of COVID-19 on Appian’s 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 subscription 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, and the timing of Appian’s recognition of subscription 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 ContactScott WalkerDirector, Investor Relations703-496-4573scott.walker@appian.com Media ContactNicole GreggsDirector, Media Relations703-260-7868nicole.greggs@appian.com APPIAN CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) As of As of December 31, December 31, 2020 2019 Assets Current assets Cash and cash equivalents$112,462 $159,755 Short-term investments and marketable securities 109,826 - Accounts receivable, net of allowance of $1,400 and $600 as of December 31, 2020 and December 31, 2019, respectively 97,278 70,408 Deferred commissions, current 17,899 14,543 Prepaid expenses and other current assets 27,955 32,955 Total current assets 365,420 277,661 Property and equipment, net 35,404 39,554 Long-term investments 36,120 - Goodwill 4,862 - Intangible assets, net of accumulated amortization of $429 as of December 31, 2020 1,744 - Operating right-of-use assets 30,659 24,205 Deferred commissions, net of current portion 34,198 28,979 Deferred tax assets 489 494 Other assets 3,625 592 Total assets$512,521 $371,485 Liabilities and Stockholders’ Equity Current liabilities Accounts payable$2,967 $5,222 Accrued expenses 5,821 7,488 Accrued compensation and related benefits 22,981 10,691 Deferred revenue, current 116,256 82,201 Operating lease liabilities, current 6,923 3,836 Finance lease liabilities, current - 1,447 Other current liabilities 940 1,395 Total current liabilities 155,888 112,280 Operating lease liabilities, net of current portion 51,194 44,416 Finance lease liabilities, net of current portion - 2,375 Deferred revenue, net of current portion 3,886 7,139 Deferred tax liabilities 70 38 Other non-current liabilities 4,878 - Total liabilities 215,916 166,248 Stockholders’ equity Class A common stock - par value $0.0001; 500,000,000 shares authorized and 38,971,324 shares issued and outstanding as of December 31, 2020; 500,000,000 shares authorized and 34,525,386 shares issued and outstanding as of December 31, 2019 4 3 Class B common stock - par value $0.0001; 100,000,000 shares authorized and 31,707,866 shares issued and outstanding as of December 31, 2020; 100,000,000 shares authorized and 32,942,636 shares issued and outstanding as of December 31, 2019 3 3 Additional paid-in capital 470,498 340,929 Accumulated other comprehensive loss (5,010) (285) Accumulated deficit (168,890) (135,413) Total stockholders’ equity 296,605 205,237 Total liabilities and stockholders’ equity$512,521 $371,485 APPIAN CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data) Three Months Ended December 31, Year Ended December 31, 2020 2019 2020 2019 (unaudited) Revenue Subscriptions$56,096 $42,108 $198,710 $151,299 Professional services 25,534 26,510 105,863 109,053 Total revenue 81,630 68,618 304,573 260,352 Cost of revenue Subscriptions 5,641 4,993 20,826 17,098 Professional services 16,299 17,780 67,940 76,743 Total cost of revenue 21,940 22,773 88,766 93,841 Gross profit 59,690 45,845 215,807 166,511 Operating expenses Sales and marketing 35,425 31,254 130,316 117,440 Research and development 18,875 15,625 70,241 58,043 General and administrative 15,076 12,028 53,152 41,496 Total operating expenses 69,376 58,907 253,709 216,979 Operating loss (9,686) (13,062) (37,902) (50,468) Other income: Other income, net (3,941) (2,822) (5,786) (941) Interest expense 88 131 478 367 Total other income (3,853) (2,691) (5,308) (574) Loss before income taxes (5,833) (10,371) (32,594) (49,894) Income tax expense 548 426 883 820 Net loss$(6,381) $(10,797) $(33,477) $(50,714) Net loss per share: Basic and diluted$(0.09) $(0.16) $(0.48) $(0.77) Weighted average common shares outstanding: Basic and diluted 70,362,387 67,316,098 69,050,565 65,479,327 APPIAN CORPORATION AND SUBSIDIARIES STOCK-BASED COMPENSATION EXPENSE (in thousands) Three Months Ended December 31, Year Ended December 31, 2020 2019 2020 2019 (unaudited) Cost of revenue: Subscriptions$265 $185 $943 $647 Professional services 542 287 1,477 2,748 Operating expenses Sales and marketing 984 771 2,821 4,742 Research and development 877 497 2,718 3,480 General and administrative 1,943 1,648 7,320 4,826 Total stock-based compensation expense$4,611 $3,388 $15,279 $16,443 APPIAN CORPORATION AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands) Year Ended December 31, 2020 2019Cash flows from operating activities: Net loss$(33,477) $(50,714)Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 5,851 4,742 Bad debt expense 984 99 Loss on disposal of property and equipment 22 146 Change in fair value of available-for-sale securities 22 - Deferred income taxes (184) (334)Stock-based compensation 15,279 16,443 Changes in assets and liabilities: Accounts receivable (33,559) 7,432 Prepaid expenses and other assets 3,740 8,972 Deferred commissions (8,575) (9,319)Accounts payable and accrued expenses (4,238) (4,039)Accrued compensation and related benefits 11,801 (3,072)Other liabilities 3,681 1,318 Deferred revenue 27,626 12,573 Operating lease liabilities 3,407 6,827 Net cash used in operating activities (7,620) (8,926)Cash flows from investing activities: Purchases of investments (145,968) - Payments for acquisitions, net of cash acquired (6,138) - Purchases of property and equipment (1,251) (32,421)Net cash used in investing activities (153,357) (32,421)Cash flows from financing activities: Principal payments on finance leases (3,822) (653)Proceeds from public offering, net of underwriting discounts 108,260 101,653 Payments of costs related to public offerings (346) (350)Proceeds from exercise of common stock options 6,376 4,899 Net cash provided by financing activities 110,468 105,549 Effect of foreign exchange rate changes on cash and cash equivalents 3,216 623 Net (decrease) increase in cash and cash equivalents (47,293) 64,825 Cash and cash equivalents, beginning of period 159,755 94,930 Cash and cash equivalents, end of period$112,462 $159,755 Supplemental disclosure of cash flow information: Cash paid for interest$165 $331 Cash paid for income taxes$1,182 $356 Supplemental disclosure of non-cash financing information: Finance lease obligations to acquire new office furniture and fixtures and computer hardware$― $4,475 APPIAN CORPORATION AND SUBSIDIARIES RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES (unaudited, in thousands, except share and per share data) Three Months Ended December 31, Year Ended December 31, 2020 2019 2020 2019 Reconciliation of non-GAAP operating loss: GAAP operating loss$(9,686) $(13,062) $(37,902) $(50,468) Add back: Stock-based compensation expense 4,611 3,388 15,279 16,443 Non-GAAP operating loss$(5,075) $(9,674) $(22,623) $(34,025) Reconciliation of non-GAAP net loss: GAAP net loss$(6,381) $(10,797) $(33,477) $(50,714) Add back: Stock-based compensation expense 4,611 3,388 15,279 16,443 Loss on disposal of property and equipment ― ― 22 146 Non-GAAP net loss$(1,770) $(7,409) $(18,176) $(34,125) Non-GAAP earnings per share: Non-GAAP net loss$(1,770) $(7,409) $(18,176) $(34,125) Non-GAAP weighted average shares used to compute net loss per share, basic and diluted 70,362,387 67,316,098 69,050,565 65,479,327 Non-GAAP net loss per share, basic and diluted$(0.03) $(0.11) $(0.26) $(0.52) Reconciliation of non-GAAP net loss per share, basic and diluted: GAAP net loss per share, basic and diluted$(0.09) $(0.16) $(0.48) $(0.77) Add back: Non-GAAP adjustments to net loss per share 0.06 0.05 0.22 0.25 Non-GAAP net loss per share, basic and diluted$(0.03) $(0.11) $(0.26) $(0.52) Reconciliation of adjusted EBITDA: GAAP net loss$(6,381) $(10,797) $(33,477) $(50,714) Other (income), net (3,941) (2,822) (5,786) (941) Interest expense 88 131 478 367 Income tax expense 548 426 883 820 Depreciation and amortization expense 1,366 1,469 5,851 4,742 Stock-based compensation expense 4,611 3,388 15,279 16,443 Adjusted EBITDA$(3,709) $(8,205) $(16,772) $(29,283)