Appian Corporation (APPN) Bundle
A Brief History of Appian Corporation
Company Overview
Appian Corporation, a leading provider of low-code automation platforms, was established in 1999. The company specializes in developing software solutions that facilitate the rapid creation of applications for businesses, focusing on enhancing operational efficiency and improving customer engagement.
Financial Performance
As of September 30, 2024, Appian reported the following key financial metrics:
| Metric | Value |
|---|---|
| Net Loss (Q3 2024) | $(2,100,000) |
| Net Loss (YTD 2024) | $(78,615,000) |
| Total Revenue (Q3 2024) | $150,052,000 |
| Gross Profit (Q3 2024) | $116,968,000 |
| Operating Expenses (Q3 2024) | $124,125,000 |
| Cash and Cash Equivalents (Sept 30, 2024) | $99,193,000 |
| Short-term Investments (Sept 30, 2024) | $40,798,000 |
| Working Capital (Sept 30, 2024) | $61,998,000 |
Revenue Breakdown
Appian's revenue is primarily derived from subscription and professional services. The following table summarizes the revenue breakdown for the three months ended September 30, 2024:
| Revenue Type | Q3 2024 ($) | Q3 2023 ($) | Change (%) |
|---|---|---|---|
| Subscriptions | $119,088,000 | $95,000,000 | 25.4% |
| Professional Services | $30,964,000 | $38,000,000 | (18.5%) |
| Total Revenue | $150,052,000 | $133,000,000 | 12.8% |
Operating Expenses
Appian's operating expenses for the nine months ended September 30, 2024 were as follows:
| Expense Category | Amount ($) |
|---|---|
| Sales and Marketing | $175,613,000 |
| Research and Development | $117,789,000 |
| General and Administrative | $108,327,000 |
| Total Operating Expenses | $401,729,000 |
Stock Performance
As of the end of September 2024, Appian's shares were trading at approximately $1.37, reflecting a year-to-date decrease of 23.4%. The company's market capitalization stood at approximately $99 million.
Recent Developments
In 2024, Appian faced challenges, including a significant legal dispute with Pegasystems, which resulted in a reversal of a previously awarded $2.036 billion judgment. The ongoing litigation has caused fluctuations in operational expenses and impacted investor confidence.
Outlook
Despite current challenges, Appian is focused on expanding its market presence through strategic partnerships and continued innovation in its low-code platform. The company aims to enhance its subscription revenue while managing costs effectively.
A Who Owns Appian Corporation (APPN)
Major Shareholders
As of September 30, 2024, Appian Corporation (APPN) had the following major shareholders:
| Shareholder | Type | Shares Owned | Percentage Ownership |
|---|---|---|---|
| Insight Partners | Institutional Investor | 9,000,000 | 12.4% |
| The Vanguard Group | Institutional Investor | 6,500,000 | 9.0% |
| BlackRock, Inc. | Institutional Investor | 5,800,000 | 7.9% |
| SSgA Funds Management | Institutional Investor | 4,200,000 | 5.7% |
| Directors and Officers | Insider | 3,500,000 | 4.8% |
| Other Institutional Investors | Various | 15,000,000 | 20.5% |
| Public Float | Public | 40,000,000 | 54.0% |
Institutional Ownership
As of September 30, 2024, institutional ownership was approximately 70% of the total shares outstanding. The total number of shares outstanding was reported at 73,224,030.
Insider Ownership
As of September 30, 2024, insiders owned approximately 4.8% of the total shares. This includes shares held by executive officers and members of the board of directors.
Recent Changes in Ownership
In the last quarter, Appian Corporation repurchased approximately 1,320,531 shares of common stock, reducing the total shares available in the market.
Capital Structure
As of September 30, 2024, the capital structure of Appian Corporation was as follows:
| Category | Amount (in thousands) |
|---|---|
| Common Stock | $7 |
| Additional Paid-In Capital | $614,204 |
| Accumulated Deficit | $(598,507) |
| Total Stockholders' Equity | $(49,801) |
Market Performance
As of September 30, 2024, Appian Corporation's stock performance included:
| Metric | Value |
|---|---|
| Stock Price | $30.46 |
| Market Capitalization | $2.23 billion |
| 52-Week High | $40.00 |
| 52-Week Low | $25.00 |
| Average Daily Volume | 1,500,000 shares |
Recent Financial Performance
For the nine months ended September 30, 2024, Appian Corporation reported the following financial metrics:
| Metric | Value (in thousands) |
|---|---|
| Total Revenue | $450,337 |
| Net Loss | $(78,615) |
| Cash and Cash Equivalents | $99,193 |
| Debt | $200,000 |
Appian Corporation (APPN) Mission Statement
Company Overview
Appian Corporation focuses on providing a low-code automation platform that enables organizations to create applications rapidly. The company aims to empower organizations to improve their operational efficiency and enhance customer engagement through innovative software solutions.
Mission Statement
As of 2024, Appian's mission statement is to deliver a powerful low-code automation platform that helps businesses achieve their goals by simplifying the application development process and driving digital transformation.
Financial Performance
For the nine months ended September 30, 2024, Appian reported the following financial metrics:
| Metric | 2024 | 2023 | $ Change | % Change |
|---|---|---|---|---|
| Total Revenue | $450,337,000 | $400,044,000 | $50,293,000 | 12.6% |
| Subscriptions Revenue | $353,789,000 | $296,554,000 | $57,235,000 | 19.3% |
| Professional Services Revenue | $96,548,000 | $103,490,000 | ($6,942,000) | (6.7%) |
| Net Loss | ($78,615,000) | ($101,435,000) | $22,820,000 | 22.5% |
| Basic & Diluted Loss per Share | ($1.08) | ($1.39) | $0.31 | 22.3% |
Key Metrics
Appian tracks several key performance indicators to measure the effectiveness of its operations:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Cloud Subscriptions Revenue | $94,075,000 | $77,247,000 | 21.8% |
| Cloud Subscriptions Revenue Retention Rate | 117% | 117% | 0% |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024 are as follows:
| Expense Type | 2024 | 2023 | $ Change | % Change |
|---|---|---|---|---|
| Sales and Marketing | $175,613,000 | $181,338,000 | ($5,725,000) | (3.2%) |
| Research and Development | $117,789,000 | $118,502,000 | ($713,000) | (0.6%) |
| General and Administrative | $108,327,000 | $82,342,000 | $25,985,000 | 31.6% |
Balance Sheet Highlights
As of September 30, 2024, Appian's balance sheet reflects the following key items:
| Asset/Liability | 2024 | 2023 |
|---|---|---|
| Cash and Cash Equivalents | $99,193,000 | $130,761,000 |
| Total Assets | $207,892,000 | $211,690,000 |
| Total Liabilities | $128,516,000 | $132,588,000 |
| Total Stockholders' Equity | $79,376,000 | $79,102,000 |
Market Position
Appian continues to enhance its market presence by focusing on cloud subscription models and investing in growth strategies to capture a larger share of the low-code application platform market.
How Appian Corporation (APPN) Works
Business Model
Appian Corporation operates primarily as a cloud-based software provider focusing on business process management (BPM) and low-code application development. The company generates revenue through:
- Subscriptions: Cloud subscriptions bundled with maintenance and support.
- Professional Services: Consulting services, including application development and training.
Financial Performance
As of September 30, 2024, Appian reported the following financial metrics:
| Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenue | $154,052 | $137,094 | $16,958 | 12.4% |
| Subscriptions Revenue | $123,121 | $103,803 | $19,318 | 18.6% |
| Professional Services Revenue | $30,931 | $33,291 | ($2,360) | (7.1%) |
| Net Loss | ($2,100) | ($22,251) | $20,151 | 90.6% |
Revenue Breakdown
For the nine months ended September 30, 2024, the revenue breakdown was as follows:
| Revenue Type | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Subscriptions | $353,789 | $296,554 | $57,235 | 19.3% |
| Professional Services | $96,548 | $103,490 | ($6,942) | (6.7%) |
| Total Revenue | $450,337 | $400,044 | $50,293 | 12.6% |
Cost Structure
Cost of revenue for the nine months ended September 30, 2024 included:
| Cost Type | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Subscriptions | $39,614 | $32,492 | $7,122 | 21.9% |
| Professional Services | $74,880 | $76,515 | ($1,635) | (2.1%) |
| Total Cost of Revenue | $114,494 | $109,007 | $5,487 | 5.0% |
Gross Margins
The gross margins for the three and nine months ended September 30, 2024 were:
| Period | Subscriptions Gross Margin (%) | Professional Services Gross Margin (%) | Total Gross Margin (%) |
|---|---|---|---|
| Q3 2024 | 88.6% | 25.6% | 75.9% |
| 9M 2024 | 88.8% | 22.4% | 74.6% |
Operating Expenses
For the three months ended September 30, 2024, the operating expenses were:
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Sales and Marketing | $50,865 | $55,667 | ($4,802) | (8.6%) |
| Research and Development | $38,572 | $37,135 | $1,437 | 3.9% |
| General and Administrative | $34,688 | $23,440 | $11,248 | 48.0% |
Cash and Liquidity
As of September 30, 2024, Appian's liquidity position was as follows:
| Metric | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $99,193 |
| Short-term Investments | $40,798 |
| Working Capital | $61,998 |
Debt and Interest Expense
Interest expense for the nine months ended September 30, 2024 was reported as:
| Metric | Amount (in thousands) |
|---|---|
| Interest Expense | $17,921 |
Appian Corporation continues to evolve its business model by focusing on increasing its subscription revenue while managing costs effectively to improve overall profitability.
How Appian Corporation (APPN) Makes Money
Revenue Streams
Appian Corporation generates revenue primarily through two main streams: subscriptions and professional services. The subscription revenue includes cloud subscriptions bundled with maintenance and support, as well as term license subscriptions.
Subscription Revenue
As of September 30, 2024, Appian reported the following subscription revenue figures (in thousands):
| Revenue Type | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Cloud Subscriptions | $94,075 | $77,247 | $269,106 | $221,381 |
| Term License Subscriptions | $21,265 | $20,026 | $62,263 | $56,176 |
| Maintenance and Support | $7,781 | $6,530 | $22,420 | $18,997 |
| Total Subscriptions | $123,121 | $103,803 | $353,789 | $296,554 |
Professional Services Revenue
Professional services revenue is generated from consulting services, application development, deployment assistance, and training related to the Appian platform. The revenue figures for professional services are as follows (in thousands):
| Period | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Professional Services Revenue | $30,931 | $33,291 | $96,548 | $103,490 |
Total Revenue and Growth
For the three months ended September 30, 2024, Appian's total revenue was $154,052 thousand, compared to $137,094 thousand for the same period in 2023, reflecting a 12.4% increase. For the nine months ended September 30, 2024, total revenue reached $450,337 thousand, up from $400,044 thousand in 2023, marking a 12.6% increase.
Cost of Revenue
The cost of revenue for Appian, including both subscriptions and professional services, is detailed below (in thousands):
| Cost Type | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Subscriptions | $14,082 | $11,265 | $39,614 | $32,492 |
| Professional Services | $23,002 | $24,804 | $74,880 | $76,515 |
| Total Cost of Revenue | $37,084 | $36,069 | $114,494 | $109,007 |
Gross Margin
Appian's gross margins for the three and nine months ended September 30, 2024, were as follows:
| Period | Gross Margin (Subscriptions) | Gross Margin (Professional Services) | Total Gross Margin |
|---|---|---|---|
| Three Months Ended September 30, 2024 | 88.6% | 25.6% | 75.9% |
| Nine Months Ended September 30, 2024 | 88.8% | 22.4% | 74.6% |
Operating Expenses
Appian's operating expenses for the three months ended September 30, 2024, are broken down as follows (in thousands):
| Expense Type | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 |
|---|---|---|
| Sales and Marketing | $50,865 | $55,667 |
| Research and Development | $38,572 | $37,135 |
| General and Administrative | $34,688 | $23,440 |
| Total Operating Expenses | $124,125 | $116,242 |
Net Loss
Appian reported a net loss of $2,100 thousand for the three months ended September 30, 2024, compared to a net loss of $22,251 thousand for the same period in 2023. For the nine months ended September 30, 2024, the net loss was $78,615 thousand, down from $101,435 thousand in the previous year.
Key Metrics
As of September 30, 2024, Appian's cloud subscriptions revenue retention rate stood at 117%, consistent with the previous year, indicating strong customer retention and growth potential.
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Resources:
- Appian Corporation (APPN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Appian Corporation (APPN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Appian Corporation (APPN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.