APPN - Earnings call transcript Q2 2022

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Operator

Thank you for standing by. And at this time, I would like to welcome everyone to the Appian Second Quarter 2022 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]. you. Thank Director Relations, Senior your may and conference. Finance Anantha, you Investor begin Sri

Sri Anantha

Good you prepared With and to you, Chief for Chief afternoon Thank operator. questions. Mark and thank will Matt Chairman second Matheos, open XXXX Executive call Officer; are Officer. review quarter for we financial today results. After me Financial Calkins, and remarks, Appian's us joining the

financial not to existing and similar leadership The identify estimate, future will, intend, statements to materially date. our from expectations. as today. reflect impact made and business pursuant we actual acquire indications our represent differ go-to-market to risks our of may related the quarter customers; Litigation cause expect, any laws results variety of make similar words the are that our of are third call, to anticipate, These macroeconomic market securities the our and and intended customers. or and of to Securities growth forward-looking this changes; market trends; strategy; to ability ability provisions of During forward-looking guidance expressions to new expectations. and our trends position; and of industry our XXXX. Harbor related expand are of to results; our They continue, They our Safe ability views the as to Private comments a of federal and under statements for These the maintain include do platform, statements XXXX; views subject only and subsequent are full uncertainties opportunity Act year upsell benefits that and our Reform

our These site. that refer risks important are factors Web actual our SEC. available XX-K the our periodic filings the and For XXXX of documents a section our could of other material and results, on Investors discussion with to other affect

comparable section our tables and our non-GAAP Additionally, call. earnings Refer I be to the conference Investors that, discussed CEO, these of With site turn measures to reconciliation financial for like Calkins. results Matt? Matt this a our their to results. in of will GAAP directly financial call would the Web release on to

Matt Calkins

the Sri, for XXXX, million. year-over-year XX% Thanks, grew million. XX.X subscription to Subscriptions of today. XX% cloud Appian's year-over-year In everyone you by grew quarter XX% revenue million. to joining grew second us Total and XX.X thank XXX.X revenue revenue to

low-code mining, subscriptions is million. was revenue EBITDA cloud more suite. XX as June these bearish. uncertainty. more This important mining is that Appian I'm together. separate be formerly a bearish convergence are even two and the leading the rate of predictable, of synergy a platform. for convergence. software, our natural And together times year total and workflow of Our belong demand retention a We These for same automation single industries cost. believe the XXX% affordable separate technologies, the in our officially strength they're Appian terms the was faster on from of of workflow loss the and between combine and process unified XX. they buying We're This a is unthinkable, more operating automation. Appian in fueled We will powerful, economic pioneering in in economy. process adjusted low-code or market. more

from of it this a We None an the of cycles the I Appian's always but deals evidence unhealthy upfront the saw of second of will see are described U.S. visible the slip opposite which just growth perspective end lengthening stands suffering is seeing as landing of Appian's soft not the business. and from informs be deal the I out we clear that taken be the to essentially penalties demand I as sign because few any a level unusual. experience. slow, quarter, forecast think I and will persist while and of that a our slip, wasn't say of are theory. want inflation Appian downturn. reduced some will while inflation economy-wide well, probably could apart symptoms deals accommodating plans, my QX up

our Of have to acquiring still darkens, we competition. and when turns cautiously it. our grow we're the as we the gained you'll value note some affected new offices what we'll opening FX relative rates, We'll If course, we have by steadily advantages. there economy selling back new downturn, plan and and to through hiring customers. is climate provide. importantly, customers forecast. And up, ground If keep Most in carefully, results a and

We XX% Customers' discovered us company's and cost software linked In easily pitch our report. in rate industry, actionable. voting analyzed process. since to they Also, the there's the to global top by customers and renewal Choice workflows keep elevator requests. a some qX, become it's focus gross quick our have mining can areas hours rebilling discoveries human efficiency Process managers Gartner ago a with obviously would manufacturer quick that's A optimization. a few years. thousands well It when effective inefficiency. this automated pivot discovering the with and for wants customer Appian same annually and credit customer efficiency. on building process year us. The workflow, in We a an example, true can as of branch process have especially sold be for low-value been optimization healthy verifying of mining, on we That's spend efficiency for is become It mining Appian particular, offers investment. virtues in year that designed cost for return touted next a and agility appreciate equally instantly of more

same also front rules, with quick This innovations us design We and the may appeal. organization door Appian external expresses users a you of our discover, like its group a lately. first the to insights unified login. needs automate our change platform. enables things we Portals right, will of automate one Appian applications, use save we're volumes is the Appian, other platform It adapt design public it that high that recall, product. you Portals our with an use applications. to has design automate the new Discover, user can to the It seeing new so Portals. quarter examples. to business processes Now, help without we unification for groups and year, how facing some launched money. first can this and cases say we're Appian slogan discover pioneering. adoption. recent Briefly our broaden All opens a In and Appian and and is It's the of all in explain prospect. shows

unemployed developers from to use new and legacy resources. unemployment large a in small built businesses RPA services applications. from systems The of app Appian a determined by second consolidate Appian bots Appian. a data to enroll the start, team expert be overseeing and to it classes and costs, joint placement information an will will Portal registration Appian fetch its benefits Thousands weeks consolidate It's in course and advisors agency first deploy First, QX. job update IT legacy constituents became workers state and new system will in interface. example. gain To will Portal in central an training internal XX of a customer skills. A that customers' and reduce connects

all a Appian rights, finalizes local manufacturers in Portals the lifecycle customer companies also and licensing QX. prominent and entertainment runs and It became last licensed media uses consumer to market manage retailing of One world's most new assessment, group the on of its platform The and year our products. selects Appian.

the third about. party the Now they systems. and the more will solution want simplification Appian government extend company and goods onboard of It's to thousands talk distributors. pretty a to dramatic app launched government what In enhancement to with a suite used manual our we an process There's management procurement this new Portal GAM program groups I be follow consolidates legacy when complex services. one manages suite. of QX, it acquire product acquisition Appian's a process to

military dollars back a office agencies part vendors Appian to and contracts correspondence including a annually. the group we've hub We contracting employees Our successfully of manage suite of so to branch contracts outside creates Appian of acquisition Vendor to called officers, of the deal and multiple procurement growing that QX. and will solutions, modernized newest GAM vendors in several GAM use process of for billions since processes the central outside U.S. XXXX. Vendor branches allows Management. Thousands solution, because sold military It We proposals. in won this the is over Management,

the agency billions reconcile Solutions are replace for and to offers years solutions agency an a to A figure additional a within uses annual seven gateway few of It customer Appian a our in federal fiscal base. a year this. ago same GAM public process customer QX, a example. There's use professional In health strong. funding. dollars became congressional legacy Appian for time, build us deal budget agency several purchased expansions The licenses revenue for budgeting all At the on system. business, bring more practitioners. and solutions our Appian continue two their for Appian approval. platform new to management formulate Partners train and own Appian will services is reasons to plan

with more selling a subscription packaged pricing we're offerings fixed premium First, or model.

a can partner expertise parties to approaching supplement revenue, gain good our and positioning the our see faster. In both and we're a this additional services partner customers ensured a model, has Second, alongside theirs. as customer outcome

a became Here's customer and platform new manages QX. unify core an Appian to systems app single disparate federal Appian in performance will that reviews. selected low-code agency its our a processes. example. business Civilian It automate employee create

selected professional through software Canadian workflows helped our them a in a a by delivered another. seven our new called staff be land connects build new will research students, deal partner Partners that Appian administrators customer making guidance project first Boost. unify team with a figure to with packaged and services us from technical The QX. offering our university, top also Appian platform to systems and one It

graduation for will of thousands access a courses, Portal transcript centralized register services, of tens example, requesting tracking use Appian like student to and a students milestones. For

and to platform We partner siloed new quarter. engagement run reducing billing The will QX, efficiencies, one our fuel to replace customer will leadership applications. university onboarding, purchased their and to One this day. customer we customer will the Before just use A this way drive is deal The lacked including Appian two to customer pre-built wants a system. innovate. Appian. integrate onboarding a Appian, partner customer enterprise-wide example. their processes. weeks company's incomplete solution because This American North In on last a relationship management solution won supplier from usage distributor

I'd to like make announcements. Finally, two

forward look Appian's Monday, companies like them. software First, August click experience working Jones we partner Revenue strong Officer. X. Chris to running has Chief decades Chris with He for comes to technologies. He as background, global a and new of all we us joined organizations with welcome this sales also

Second announcement, Chennai, gives new Appian India. This talent. a access just development product our broader expansion top us pool center of in opened to engineering

our operational to We to expect launch local Appian enhanced product run new our market. our allows engineering Growing efficiency. team platform with to offerings expand and department our pioneer

financials. Mark our turn the for I'll deeper Mark? call Now, of discussion a over to

Mark Matheos

financial Thanks, of Matt. strong then and quarter, I'll the for year another delivered the guidance year-over-year. provide revenue growth we'll XX% the We driven QX review quarter highlights more for than XXXX. and full subscriptions by

We key and industry our growth also saw strong geographical of in each verticals regions.

XX% the end Cloud details. our year-over-year of XX.X was of million, increase go into top and the subscription above guidance. an Let's revenue

initial revenue our when impact of call, percentage X foreign currency on changes compared had an As subscription our on unfavorable last points approximately discussed February XX. to earnings cloud guidance on

U.S. subscriptions was strength the an was increase million, XX.X driven APAC. Our of by Professional U.S. million, and XX% XX% total revenue professional year-over-year. services commercial was The an of in sector, services increase year-over-year. public revenue XX.X

professional Appian's are and large cases noted, services in that run to by partners. offerings, previously As partner programs certain our complementary are support

particular. healthy customers we're consulting success architects of allows and Appian engage partners in managers. While still Accelerate to early, uptake Appian's seeing and offering customer offering, a This

strategy. spend to Long and to period Over Subscriptions Importantly, as seasonality customers time, sequential continue will of revenue. believe percentage a and revenue year decline was guidance three. to doubling will year of we more of our range. Total is partly new term, the of services expect Accelerate and prior due on revenue up larger continue professional in year-over-year partners end part who as revenue with software than two The year buy growth total XX% total compared was be revenue. a revenue we in their license prior XXX.X quarter. mix million, XX% term our revenue to in an XX% subscriptions decline the associated XX% increase in purchases the above

XXX% to of as June retention as quarter. last XXX% rate was revenue XX, subscription cloud XXXX Our compared

As a to rate basis. retention a a cloud reminder, we continue quarterly to on subscription XXX% target revenue XXX% of

in of period. total regions. was operations and The APAC contributed with continued ago driven in the healthy year EMEA revenue international growth by both revenue, consistent performance XX% Our international

bookings software first cloud net XX% half bookings were of first in for the of Our half during total new software full net new XX% of XX% the the ACV year and XXXX. XXXX XXXX approximately the versus

to XX%, Now, Non-GAAP period. to metrics. consistent year Professional I'll XX% compared was period. XX% was the XX% XX% gross services non-GAAP turn ago ago our Subscriptions the year gross non-GAAP gross profitability with profit ago margin the year in margin was period. in compared to margin

was Non-GAAP million, expenses partners. quarter, XX.X the mid conference XXX.X our of non-GAAP approximately Therefore, period. was in had in decrease increase costs, EBITDA beyond, same to share exchange basic net compared non-GAAP compared was basic an of of XX.X losses from margin on XXXX The as World. go-to-market X in gross in-person diluted and we Adjusted compared ago period events, gains and range continue million expect an the to year considered to of of success for basic dedicate to Total million, for based for quarter and XX% in our EBITDA diluted customer support We million movements our FX basic the increase and of foreign adjusted year personnel share the to $X.XX we in and loss We million shares In XX.X a to ago. higher or rates. forecast expenses million user guidance. period. second more per or exchange expansion aren't quarter the This million XX.X XX XXXX line XX% loss net diluted per million the loss operating low second year in driven professional were to outstanding annual range XX.X with $X.XX guidance second XXXX. XX.X and to quarter return services loss second of diluted non-GAAP to shares foreign in don't and they and is by outstanding the million in X.X Appian resources million including in the XXXX. ago

above, loss million original guidance. which XXXX noted or in As of $X.XX second X.X loss per share, foreign net was negatively not impacted losses was quarter a in non-GAAP our included by exchange

Turning to our balance sheet.

compared XXXX, cash and of As investments were XXX December of cash to June million million XX, as XX, equivalents XXX and XXXX.

versus million used second cash ago For year. million last same by the the expenses, of period. commissions, was quarter, year operating to cash marketing was XXXX, the ago litigation by increased revenue impacted sales XX, an year operations was wage for period, Total increase increases spend. higher Compared XX% of higher million negatively X.X XX.X period XXX.X the flow as and deferred from June

our As stated are calls, upfront majority past of the on we have on basis. an annual invoiced customers

Due in our indicative billing changes the quarterly large to the customers not our are variability have or are our of deferred terms, revenue in monthly. generally momentum billed also We business. that of

subscription software represented and the cloud which continue or performance believe business better customer to in of indicator the revenue, on-prem. of scale of the RPO. includes based support whether can fluctuate the seasonality by subscription and latter of or momentum our Appian of duration term metrics revenue, than a contracts. the is is We remaining on deploys business total or The billings all customer timing subscriptions obligations, invoicing, revenue This cloud of licensed revenue regardless

Now I'll turn to guidance.

Adjusted XXXX between to million Total common XX% growth expected per XX%. representing subscription shares for quarter to XX.X basic XX% cloud year-over-year XX%. and XX.X loss and XX.X XXXX, expected and the and loss EBITDA XX XXX be is of revenue between of outstanding. of This expected XX of between and $X.XX is growth weighted is average million third XXX quarter third million. representing diluted is $X.XX. and million to million, net to expected million, be be assumes revenue the be and share Non-GAAP year-over-year million For

million average the Total million, of be currency year-over-year percentage XX.X of in and XX% subscription cloud XXX Cloud and between is weighted and million representing points. X factors $X.XX million diluted subscription million, Non-GAAP be to full XX%. revenue share revenue between XXX revenue expected Adjusted is $X.XX. XXX common and is be be is XX expected headwinds loss year-to-date growth XXX shares year-over-year and For representing year XX% between XX%. guidance to growth expected assumes to XX million. loss This per and outstanding. to expected and XXXX, EBITDA of between basic million net approximately

the following. assumes guidance Our

First, professional sequential on basis. single in decline a revenue a mid digit percentage services

expect In We logo, services generally us situations to where project. new work. partners close to perform continue the a help more lead they partners

wages, the greater closely events expenses employee T&E where in-person current marketing discretionary-related related environment. any watching Second, we're and in to expenses macro

X between expenditures space. XXXX, build primarily of half second related million office a approximately of out in capital additional and Third, the to million X

continue over rates operating about business confident Finally, to making XXXX. market as the of let's it our and and investments to turn guidance excited We're growth in address opportunity. accelerate questions. assumes strategic to success us. of August disciplined remain summary, to ahead go-to-market X, model. expand growing With about large the FX the we're that, our In opportunities leverage platform We the

Operator

Instructions]. [Operator

go first Your Sanjit of Singh Morgan ahead. from question is Stanley. Please

line Your is open. line Sanjit is your open. Singh,

Sanjit Singh

you you. hear me? Thank Can

Matt Calkins

Yes.

Sanjit Singh

that I guidance Appian's your sort to very a Thanks, guys. comments then the strong the Matt, ability execute at wanted I the up sort quarter, of Perfect. guidance on economy. off when of in look coming economy to and on pick reiterated. is And

an that of conversion going you any if those of better super pipeline, your assumptions on more bit FX? of on understanding the guidance around sales we helpful sort understand of not terms have into didn't a see guys that in on seen context terms second the guidance? the be And in Mark, are you're you QX for rates us raise impact, in to could context you seeing wanted sort half? would give sort may little the on and quarter, why assuming of terms positioning June factors some maybe Was in cycles, what I the versus And what so of a you're how QX of in

Matt Calkins

projections And a FX of in are QX. as the Yes, course, that's uncertainty. downturn, we and know, of we left for Whether Well, because is you moment the possible range a there And of variants, we uncertainty. or QX great. into a figured economic is be cautious higher not on to side. we prefer there

why your that did. guidance our any year difference that answer from show if cycles preempt I to don't quarter matter, we for sales is we issued or this quarter mind so And that serially. didn't to tell you the can I ago that a

for efficiency is the signs we've the several our us so product the an we bootstrap. got there. able our like not customers, is particularly like through appreciated deeply process be pivot are believe we that to are in relevant might otherwise. downturns downturn. thus effects product I'd as And have have messaging, that a remind from been And believe a audience insulated I some that we to of that by seen I solid with mining and order a in [indiscernible] to

to it that. exactly comes strife, prudent if in know how to economic we so And be

as economist, that? past back, you position want business to we growing, add an to a an grow our we're if symptoms. to are like pull did I to my Mark, not other of opportunity anything this as keep the And much. And person is right spite to them. very pessimism choose because companies So seeing in

Mark Matheos

of little warranted I on by point. but the guide. an would much that's think current my we're stole on just up our extra saying of conservatism there's it and it's sum thunder, bit layer baked piece into the guidance conservative uncertainty economic kind Matt I a that's of pretty kind normally of by

Sanjit Singh

then helpful. And I super if That's follow one up, may.

correct financial and color I in tech customers would before, of government, exposure any from that fin, lot and who major churn verticals. and think have verticals? to more services, vertical you but a startups customer sort your healthcare don't vertical, on optimize discussed guys their well? if helpful think just I'm run industry and stable cohorts, And industries, kinds it's spend, SMB efficiently your may to to I you who me of may pretty As do core about your concentration, wrong, sort What your to some as give of think see you of be think, sort this prone to I be that exposure those trends of the business of more to exposure younger sort those

Matt Calkins

that our low. is well, primary do to Yes, our note right about exceptionally as industries. want you're I churn always

stick low In churn, just I prefer fact, with the stripes would low solidity XX% could proposition. And attributed renewal it's customers our a all appeal us. our gross at not value much to But be rate, the of we're to I which of to of seeing why end the of think it that's with primarily industries. attribute

Mark Matheos

Yes, to any There I to exposure areas. startups. those significant with you to think exposure SMB, regard isn't mentioned

Sanjit Singh

Perfect. for all context. Great. you the Thank

Operator

Your next from comes Kevin line of from Sachs. Goldman the question Kumar

open. is line Your

Kevin Kumar

a of And these opportunity that large Thanks bit for how to in a for do question. Can broader partners of you types about bringing deals? important international talk is? government about the recent Municipality taking with Hi. you are the I market ask Milan. entities? deal How Thanks. wanted think my

Matt Calkins

the Appian bided long love U.S. within before layers been I U.S. finally approaching and be government local international question, branching And because state and within this government, we're or time very of the out. strong other our they has yet

potential to sector to we the it's time it. there's This lot And federal. the is And a branched so example. criticality think you'll handshake sector in extraordinary do here, one hear expertise special do out it's us. that from deals that federal of And applications we're terrific, just our for with I ahead. we've scale, to you'll long U.S. about of more on deployed. see our are U.S. I public it some But And growth you high public got an a outside whole the believe business used based entity calls and years

and So you'll more. that we're now, hear doing

Kevin Kumar

Got Is the it. a types in cases then use there sales are shift curious reps there's the you. in going how at sales That's a any more if macro of volatile pitching is in to all? to force of to market helpful. changes And terms customers Thank environment?

Matt Calkins

a cost Right say believe our be not in centered case emerge. it's assembly being conservative use and optimization value ROI, of for I a deployed. necessary. now, they want around speculative I'd as now, hardly patterns to cases, the not is efficiency, I there's shift proposition team conservative the a offering to deployed in be buying But ready right

Kevin Kumar

for it. Got Thanks questions. my taking

Operator

line comes question Meares Truist. Your Joseph next from with the of

Your line open. is

Joseph Meares

of Great. lead in new XX% new the just this public taking sector questions, IL-X retention on there and the could year? in pipeline additional on growth Are federal I'm first side any Thanks certification my conversations guys, and Has the congrats in the the any environment. curious potentially for rest that quarter that led you to the business? to the through received general.

Matt Calkins

last for us, public so get competition. our and as credentials deal a sector could it it not to and we going know, any this then it cycles IL-X. expect entry And to we high get a for you are it's short to of And major qualify but aware was it's That I'm a end already, to a be period. it And sales that that business testament so led to within the against wouldn't it's that long lot and Appian's telling. of barrier quarter certification quickly. win a to

I impact. So yet. believe an think impact had I it's going an it's to don't have

Joseph Meares

call think noted North number you. fuel a the I Thank I that had solutions of just were total. I'm the I management, And me. on said curious called partner for it solution. helpful. that's that Okay, there that guys and ones going? prebuilt you you American you in also And supplier then XX think And grown, see you has solutions out purchased you written the think if where that's prepared in -- remarks

Matt Calkins

the were solutions is enthusiasm time. number they own demoing the the their Yes, at partner of And Appian latest of amongst a was lot all partners authored our growing World. There solutions.

some to around of their a had And many of at this. running them show different enthusiasm monitors There's on booth. solutions lot

inspiration absolutely, the better, more the of of the to for the most that all. becoming are ones growing. So number is the That's most even And community successful. are broadening going be successful

is So the answer yes.

Joseph Meares

Thanks.

Operator

line Your Jacob comes from William the from of next question Blair. Roberge

line Your is open.

Jake Roberge

Hi, guys. my Thanks questions. taking for

So we've over How now, that platform strength it and a a platform customer customers? few the like talked year. Appian's on you within and about out what for seeing rest awareness for elevated products, productizing is you're the call of past while you've the the Portals solutions introduced with demand of the new

Matt Calkins

members of organization. like done so is used because by for has an something Traditionally, Appian intra-applications Yes, which are Portals wonderful awareness, elevating only it appeals to many more users.

lot Now of aren't vendors or there members partners. a or as or that are but many be may customers members, there there suppliers

I the really lot raising get so love It can you our externally, a if application you create count. appeals profile. user more suddenly And And that an broadens that interaction. for

same that the we're getting very external as you for getting not But it's for users internal. raising user for we're mentioned. dollars awareness, course, of Now, per good

Jake Roberge

Yes. activity are environment? it seeing that as macro And headwinds resources then strong like a some in Have competitors low-code in result any was seems the businesses the partner this partner well the you as of throughout seen your of some of just really their in other as increase quarter.

Matt Calkins

system, converting saying people Appian. over a that more. They're Appian. that. Yes, on their There's they're practice to more dedicated training of they're definitely Yes, partners converting who training They're to have we be definitely. of evidence different used to

Jake Roberge

questions my for quarter. and Great. thanks solid taking on Well, congrats a

Matt Calkins

you. Thank

Operator

of next comes with Wood Derrick Your question the line from Cowen.

line open. is Your

Andrew Sherman

past model. value Great. quarter? about the and seen sales pricing newer helped for this guys. Derrick. methodologies by is Have cycles it Thanks, but selling in you bit little sales It's past help talked longer know Matt, maybe? Andrew a overall you you've in in shorter this on on pressure that cycles helping your And seen out general? this is to helping of called environment cycles, cycles relative I given

Matt Calkins

expedite that our expect Overall, deal not the equal less to say options, less experiencing should over cycles the nor business they sales a shorter expect increased that cycle shorten Appian. time eliminate a partners, decrease Yes. also I'd customer's would would because speculation, is lead cycle solution because partner proof I factors concept. of a there's some to and be I a sales partner introduce decision, have The decreased. could

You can see it prebuilt.

agent. instead our of cycles factors are either shortening consistent. But could a sales be think say those now, that would one I right I

Andrew Sherman

you or impact Great. that? competitively from in And any lawsuit from was feedback any you wondering quarter? the on saw helped customers Has that if all at Pega the

Matt Calkins

Yes. didn't even which jury overturned it's upheld. us We confident going did award not two estimate. for damages. And can't we're of we Instead, I verdict itself, Look, I've mind to and from they're enrichment the got that would how can't be customer And little dialing reasonable sure. back. ask with bit about comment years be just But observations. be Keep be the maybe say by in to I law. supported verdict can't that awarded are appeals a there's the we for timeline, a relatively the were the is the punitive an feedback it's that I tell can yet. when punitive circumstantial as impact occasional sure is sure the few to have I damages. unjust easy. resolved. and you we all But believe regards damages, evidence the three a for

Andrew Sherman

Thanks, Great. guys.

Operator

with from Macquarie. comes line the question next Fred Your Havemeyer of

open. Your line is

Fred Havemeyer

Hi. Thank you.

of adverse I defensively, positioning to too. profitability. is discussing being then I and thinking you're and condition you growth potentially I backdrop Matt Mark think profitable you're mentioning and how around the about as more begin earlier with believe were lines a macroeconomic wanted And

profitability this future? where year with growth really So year is to negative towards find how guided EBITDA being consistently guiding an usage of as you growth balance a in another think And Appian you adjusted EBITDA, of backdrop adverse, you the that how against and do driving and potentially recession? do adjusted the about profitable to

Matt Calkins

of strategy the time careful increase they a is and going all careful new like give very That with a we growth. becomes and against business. believe new a emphasize Yes, growth to business like be customer, right? acquire right. as an retention to likely when And our rate prudent an customer revenue retention -- in acquire new our brought not you, high will of expenditures revenue could acquiring us want very that's to a these we've payments I and recession, make you at a long we're tell we've -- that may And in do revenue And probably loyal increase measure that's rivals when forceful of even I will expected of as a moment like revenue, a growth from to if that expect exceptionally the But time for strategy This that moment can mind that a investments cautious and got, that isn't growth we opportunity strategy. that's a a business that long on of to it board, stream revenue string take. experience. be a base we this that this that is and

is on, new making investment follows that the of customer because an long that so And tail it. worth

going environment our make expenditures still could company to believe return we're some cautious about this worth where strengths with which this. the that I I So the investment. only But may think be investments. wise is make in And we'll be extremely a an

Fred Havemeyer

of discussed Thank that traction seeing you. I and mix some options I'd of ask your unlimited also generally we've what pricing the And about uptake be you're past evolving? the how table. like in to then that you or unlimited that the brings to with across might seeing know different

are be update customers you. trends Thank helpful? So Appian pricing, quite or about any ways provide choosing which it'd could in if you

Matt Calkins

minority Sure. I which customers pricing Unlimited most a customer wish every I remains option, it. choose is say choose it. to it. love would don't

it I for good and unusual. us. is think it's for them good But

to bringing already, we by we I orients so of it will and conform -- I But to thanks We'll love options for and app. the aligns of them think preference give our the seat, by really it not customer. in them an force preferences buy need allow conform the And choose we'll on the the to And our industry model complicated enough pricing most the to unlimited, it most buyer. preferred time, to that's Instead, the time. up. interests we well. of their

all I way. if had my they'd price that So way,

Fred Havemeyer

Thank you.

Operator

Srinivasaraghavan line of the Vinod from comes question next from Barclays. Your

is Your line open.

Vinod Srinivasaraghavan

how also transversing and was much question. that the talk of better year, monetize was broader. maybe speak Thanks talked pulled bundling will kind especially Earlier how just data of and June you that for taking about had you then the platform throughout the about can my that you Can higher and this that's trended platform you Thanks. the help and how amount July? of you've into some to really much bracing levers usage indicated throughout platform? And on year, the your

Matt Calkins

Yes.

trends it am on has even adopted process, First I that But part low-code to excited it, they And strongly. it it's required all, from can't been I trend people has very usage to point can creation the get disclosing real of data build the platform. spectacular. here. this it it, numbers about We're often which functionality into the we has before it's data to last been shows been Appian radically. having data an been hardest the was year of that Appian's a And the the in be aggregating expert not the And in application of quarter. always take toughest simplified application. integrating part. data, it time, always the The

It's one amount that through have model. with It's been coming data of multiplied you drop. deploy process easy mouse the that now onto just and Appian. data. drag it's in And we And your a more So object amounts. can great now has adopted

And organizations an their terms part feature momentum the goal somewhat here, way multiplied tremendous. And tremendous, which and in vague own that integral becoming that is but the of first process in digest place. the the shows is it it. trajectory was we're the Speaking of information,

power that very say to believe powerful low do to easy and the a our is truly proposition to our value be code, goal same lot to time. which I staying with our fulfilling So being at and has use, despite

Don't features excited one the of it's most is today, but the a I'm number you So momentum about. have terrific. for personally

Vinod Srinivasaraghavan

you new can I on about with can like Thanks. of think existing at logo then growth? that. It cloud just did is but fine quarter? your new I expansion comment you XXX How seems kind growth? that maybe retention you talk said, the just logo And appreciate rate evolve throughout

Matt Calkins

important that are won world another deals, than about say great thing it. do large on not right? change large rely That's critical about we disclosing fundamentally. to and I to projects. able that proud institutions doing the we other We of Appian customers. things. More is had the any choose for We continue We're big us segment, they important things to other mission and appeal than and that several stories wanting pivot be -- leading organizations new way customers won what That to to we're those market

have a don't I that while want we I place businesses to important market So the say hold of frequent most in doing the largest around continue that, the to numbers that as things. choice

Vinod Srinivasaraghavan

Got it.

July June change really didn't into compared trends? it to or So see you're you in even prior that saying

Matt Calkins

that's say, consistent. XX% like of touch and partner onboarding? our new Partner been -- trends still did partners Maybe the you about logos,

alliance So them we customers to their and mean we on that issues. they're they with and that. in and know to to influential, we depend because handle a big the that of order their strategic influential team We make work want they're them very reassure good

Vinod Srinivasaraghavan

you. Thank Okay.

Operator

turn this There time. call to are over presenters. the no the I back at further like questions would to

Matt Calkins

We All then. wrap speaking and individual forward right. your to you in Well, interest, up you. it we going sessions. to look just to Thank appreciate we're

Operator

This concludes conference call. today's

disconnect. now may You

Appian (APPN) 5 Aug 222022 Q2 Earnings call transcript