Appian (APPN) Q2 2024 earnings summary

Executive summary

• Cloud subscription revenue grew 19% year-over-year to $88.4 million, with total revenue up 15% to $146.5 million in Q2 2024.

• Subscriptions revenue totaled $113.0 million, a 20% increase year-over-year, while professional services revenue declined 1% to $33.5 million.

• Adjusted EBITDA loss improved to $10.5 million, significantly better than the $24.7 million loss a year ago.

• Strategic cost reductions included a workforce reduction of about 150 employees and a $5–$5.5 million restructuring charge.

• Cloud subscription revenue retention rate reached 118% as of June 30, 2024, up from 115% a year earlier.

Financial highlights

• Total revenue: $146.5 million (+15% YoY); cloud subscription revenue: $88.4 million (+19% YoY); total subscriptions revenue: $113.0 million (+20% YoY); professional services revenue: $33.5 million (-1% YoY).

• Non-GAAP gross margin: 75% (up from 73% YoY); subscriptions gross margin: 88.5%; professional services gross margin: 30.4%.

• Adjusted EBITDA loss: $10.5 million (improved from $24.7 million loss YoY).

• Non-GAAP net loss: $19.1 million, or $0.26 per share (improved from $28.5 million, or $0.39 per share YoY); GAAP net loss: $43.6 million, or $0.60 per share.

• Cash, cash equivalents, and investments: $149.1 million as of June 30, 2024; total debt: $254.0 million.

Outlook and guidance

• Q3 2024 cloud subscription revenue expected between $89–$91 million (+15–18% YoY); total revenue $149–$153 million (+9–12% YoY).

• Q3 adjusted EBITDA expected between breakeven and $3 million; non-GAAP net loss per share $0.10–$0.06.

• Full-year 2024 cloud subscription revenue guidance $358–$360 million (+18% YoY); total revenue $610–$615 million (+12–13% YoY).

• Full-year adjusted EBITDA guidance improved to a range of -$3 million to +$3 million.

• Full-year non-GAAP net loss per share expected between $0.61–$0.52.