appn-20250331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-38098

APPIAN CORPORATION

(Exact Name of Registrant as Specified in its Charter)


Delaware						54-1956084
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

7950 Jones Branch Drive McLean, VA						22102
(Address of principal executive offices)						(Zip Code)

Registrant’s telephone number, including area code: (703) 442-8844

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol	Name of each exchange on which registered
Class A Common Stock	APPN	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Small reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of May 5, 2025, there were 43,140,083 shares of the registrant’s Class A common stock and 31,088,085 shares of the registrant’s Class B common stock, each with a par value of $0.0001 per share, outstanding.

Table of Contents


		Page
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements	3
	Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024	3
	Consolidated Statements of Operations for the three months ended March 31 , 202 5 and March 31, 2024	4
	Consolidated Statements of Comprehensive Loss for the three months ended March 31, 2025 and March 31, 2024	5
	Consolidated Statements of Changes in Stockholders’ Deficit for the three months ended March 31, 2025 and March 31, 2024	6
	Consolidated Statements of Cash Flows for the three months ended March 31, 2025 and March 31, 2024	7
	Notes to Condensed Consolidated Financial Statements	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	42
Item 4.	Controls and Procedures	42

PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	44
Item 1A.	Risk Factors	44
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	44
Item 3.	Defaults Upon Senior Securities	45
Item 4.	Mine Safety Disclosures	45
Item 5.	Other Information	45
Item 6.	Exhibits	46

	Signatures	47

PART I—FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

APPIAN CORPORATION

CONSOLIDATED BALANCE SHEETS

(in thousands, except par value and share data)


	As of
	March 31, 2025		December 31, 2024
	(unaudited)
Assets
Current assets
Cash and cash equivalents	$	134,982	$	118,552
Short-term investments and marketable securities	64,716		41,308
Accounts receivable, net of allowance of $2,323 and $3,396, respectively	136,037		195,069
Deferred commissions, current	34,858		36,630
Prepaid expenses and other current assets	41,309		43,984
Total current assets	411,902		435,543
Property and equipment, net of accumulated depreciation of $34,326 and $32,142, respectively	36,330		37,109
Goodwill	26,546		25,555
Intangible assets, net of accumulated amortization of $5,842 and $5,341, respectively	2,032		2,240
Right-of-use assets for operating leases	31,645		31,081
Deferred commissions, net of current portion	58,457		60,540
Deferred tax assets	4,388		4,129
Other assets	21,599		24,842
Total assets	$	592,899	$	621,039
Liabilities and Stockholders’ Deficit
Current liabilities
Accounts payable	$	6,574	$	4,322
Accrued expenses	13,825		11,388
Accrued compensation and related benefits	26,487		34,223
Deferred revenue	258,582		281,760
Debt	9,598		9,598
Operating lease liabilities	12,798		12,378
Other current liabilities	2,518		1,087
Total current liabilities	330,382		354,756
Long-term debt	238,426		240,826
Non-current operating lease liabilities	51,518		52,189
Deferred revenue, non-current	3,944		5,477

Other non-current liabilities	374		431
Total liabilities	624,644		653,679
Stockholders’ deficit
Class A common stock—par value 0.0001; 500,000,000 shares authorized as of March 31, 2025 and December 31, 2024 and 43,132,115 and 42,938,701 shares issued as of March 31, 2025 and December 31, 2024, respectively	4		4
Class B common stock—par value 0.0001; 100,000,000 shares authorized as of March 31, 2025 and December 31, 2024 and 31,088,085 and 31,090,085 shares issued as of March 31, 2025 and December 31, 2024, respectively	3		3
Additional paid-in capital	597,086		591,281
Accumulated other comprehensive loss	(15,507)		(11,774)
Accumulated deficit	(613,331)		(612,154)
Total stockholders’ deficit	(31,745)		(32,640)
Total liabilities and stockholders’ deficit	$	592,899	$	621,039

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

APPIAN CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands, except per share data)


	Three months ended March 31,
	2025		2024
Revenue
Subscriptions	$	134,352	$	117,694
Professional services	32,074		32,141
Total revenue	166,426		149,835
Cost of revenue
Subscriptions	14,894		12,270
Professional services	24,024		25,727
Total cost of revenue	38,918		37,997
Gross profit	127,508		111,838
Operating expenses
Sales and marketing	54,553		58,156
Research and development	39,517		39,771
General and administrative	34,272		33,446
Total operating expenses	128,342		131,373
Operating loss	(834)		(19,535)
Other non-operating (income) expense
Other (income) expense, net	(5,716)		8,207
Interest expense	5,318		5,646
Total other non-operating (income) expense	(398)		13,853
Loss before income taxes	(436)		(33,388)
Income tax expense (benefit)	741		(465)
Net loss	$	(1,177)	$	(32,923)
Net loss per share:
Basic and diluted	$	(0.02)	$	(0.45)
Weighted average common shares outstanding:
Basic and diluted	74,094		73,300

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

APPIAN CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(unaudited, in thousands)


	Three Months Ended March 31,
	2025		2024
Net loss	$	(1,177)	$	(32,923)
Comprehensive loss, net of income taxes
Foreign currency translation adjustments	(3,716)		12,843
Unrealized (loss) gains on available-for-sale securities	(17)		4
Other comprehensive loss, net of income taxes	$	(4,910)	$	(20,076)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

APPIAN CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT

(unaudited, in thousands, except share data)


				Additional Paid-In Capital		Accumulated Other Comprehensive Loss		Accumulated Deficit		Total Stockholders' Deficit
	Common Stock
	Shares	Amount
Balance, December 31, 2024	74,028,786	$	7	$	591,281	$	(11,774)	$	(612,154)	$	(32,640)
Net loss	—	—		—		—		(1,177)		(1,177)
Issuance of common stock to directors	4,735	—		—		—		—		—
Vesting of restricted stock units	167,726	—		(3,199)		—		—		(3,199)
Exercise of stock options	18,953	—		190		—		—		190
Stock-based compensation expense	—	—		8,814		—		—		8,814
Other comprehensive loss	—	—		—		(3,733)		—		(3,733)
Balance, March 31, 2025	74,220,200	$	7	$	597,086	$	(15,507)	$	(613,331)	$	(31,745)


				Treasury Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Loss		Accumulated Deficit		Total Stockholders' Equity (Deficit)
	Common Stock
	Shares	Amount
Balance, December 31, 2023	73,366,766	$	7	$	—	$	595,781	$	(23,555)	$	(519,892)	$	52,341
Net loss	—	—		—		—		—		(32,923)		(32,923)
Issuance of common stock to directors	4,974	—		—		—		—		—		—
Vesting of restricted stock units	141,563	—		—		(2,862)		—		—		(2,862)
Exercise of stock options	43,460	—		—		345		—		—		345
Repurchase of common stock	(1,320,531)	—		(50,019)		—		—		—		(50,019)
Stock-based compensation expense	—	—		—		10,606		—		—		10,606
Other comprehensive income	—	—		—		—		12,847		—		12,847
Balance, March 31, 2024	72,236,232	$	7	$	(50,019)	$	603,870	$	(10,708)	$	(552,815)	$	(9,665)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

APPIAN CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)


	Three Months Ended March 31,
	2025		2024
Cash flows from operating activities
Net loss	$	(1,177)	$	(32,923)
Adjustments to reconcile net loss to net cash provided by operating activities
Stock-based compensation	10,039		10,606
Depreciation expense and amortization of intangible assets	2,446		2,361

Bad debt expense	(125)		(135)
Amortization of debt issuance costs	150		140
Loss on disposal of property and equipment	—		—
Benefit for deferred income taxes	(163)		(450)
Foreign currency transaction (gains) losses, net	(3,989)		11,806
Changes in assets and liabilities
Accounts receivable	60,259		40,061
Prepaid expenses and other assets	6,107		(2,245)
Deferred commissions	3,855		1,569
Accounts payable and accrued expenses	4,755		5,187
Accrued compensation and related benefits	(9,306)		(8,703)
Other current and non-current liabilities	507		1,944
Deferred revenue	(27,554)		(10,120)
Operating lease assets and liabilities	(838)		(232)
Net cash provided by operating activities	44,966		18,866
Cash flows from investing activities
Proceeds from maturities of investments	13,611		9,657
Purchases of investments	(37,037)		—
Purchases of property and equipment	(651)		(2,198)
Net cash (used by) provided by investing activities	(24,077)		7,459
Cash flows from financing activities
Proceeds from borrowings	—		50,000
Payments for debt issuance costs	—		(463)
Debt repayments	(2,500)		(1,250)
Repurchase of common stock	—		(50,019)
Payments for employee taxes related to the net share settlement of equity awards	(3,199)		(2,862)
Proceeds from exercise of common stock options	190		345
Net cash used by financing activities	(5,509)		(4,249)
Effect of foreign exchange rate changes on cash and cash equivalents	1,050		(1,319)
Net increase in cash and cash equivalents	16,430

SEC Form 10-Q filed by Appian Corporation