APPN - Earnings call 4 2023 | Appian Corporation

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Operator

Thank you for standing by, and welcome to Appian Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, today's program is being recorded.

And now I'd like to introduce your host for today's program, Sri Anantha, Vice President, Finance and Investor Relations. Please go ahead.

Srinivas Anantha

operator. you, Thank thank fourth and joining to us Good and you full Appian's quarter results. year review morning, for XXXX financial today Chairman Calkins, Mark Officer. are Executive me and Financial Matheos, and Officer; Chief With Chief Matt

prepared After for we the will call remarks, questions. open

with along presentation earnings main follow from at investors.appian.com. by investor of our can site it the our You downloading page

growth of and to During quarter to maintain the ability and expect, benefits the strategy, our intended XXXX, include safe forward-looking under are statements and or our and business words this industry and that similar the Reform Litigation existing customers. platform, call, our we Securities results, market identify the year The comments of similar expand to securities forward-looking Private may expressions ability continue, and are to laws Act make leadership anticipate, harbor of These first pursuant and statements ability expectations. position, and for our future full upsell guidance acquire new provisions our indications our customers, related estimate, to market XXXX. trends trends, to go-to-market to made will our federal opportunity intend, are and of financial related our

to of views variety statements materially risks of represent from our and any today. that These views differ our only a They uncertainties reflect cause as subjected expectations. are subsequent of as do results actual to not date. could They

XX-K, of on documents available important XX-Q, results, that refer recent with our please are filings annual on For most website. a the These and quarterly Investors Form on SEC. affect could to discussion of reports actual section our also other risks Form our factors and the material our other report

for financial the Additionally, non-GAAP website discussed and comparable section GAAP measures most the Refer be Investors will this in measures. of to on our reconciliation to financial their a of directly earnings call. our tables release these conference measures

I that, over would to Matt. With the turn call like to

Matthew Calkins

XXXX, thanks, million. subscription revenue today. grew for million. to and of XX% XX% Total Appian's cloud joining $XXX.X fourth quarter XX% Subscriptions grew revenue Sri, us $XXX.X revenue to to million. Thanks, everyone, grew by In the $XX.X

XXX%. of Our million. EBITDA cloud adjusted was rate $X.X revenue a gain our was And retention subscriptions

the cloud revenue million. Subscriptions grew XX% For grew to to million. grew $XXX.X full to Appian's million. Total year, subscription $XXX.X $XXX.X XX% revenue XX% revenue

Our was adjusted loss of $XX.X a EBITDA million.

I $X.X want revenue for the milestones X to mention our year, of at first billion. this exceeded Last time, top call. the

the non-GAAP Second, our complement highest and an interesting first in at XX%. gross public history margin to last we achieved quarter observation, the

In our expected, presentation the deck, it last starting we've macro in complications, XXXX. there We get were I time Page X. metrics, on the can bonus quarterly tracked but all some didn't included and you one special see we recession

AI Last was talk. the year of year

shift will things, good conversation successful change tangible That the to more will be shift for Now features, value. deployments, practical Appian.

and distinctive have a the AI leadership to We based years technology. existing of on market approach

customer's in like these fabric, We enterprise. be we virtual database, of X and now And to the specifically are We're in application the AI of are the combination data AI, focused which data. uniting is things. a in we leaders leaders leaders on will

the to behind benefit data strategy by across only good open allows an AI information now AI. from understands as as data, enterprise. scattered data everyone think that better I has is the More Appian that it. AI

output. the generating will data known The silo. new informed Same to business, and be by bring supports the sources you for of more Ask better to just a your question AI, the contents content. the not response that bear, the one the everything more

contracts We that this example. the draw advantage work that multiple you must of AI large having federal deployed awards are data with The millions year Appian. Its dollars its an awards example sources, QX, procurement regulated way. highly this a this state explore to using with optimize process. processes from organization in and government comply is entity Appian AI that is every show Let's purpose local management hundreds of with and of to of U.S. better laws. In AI

different As usually many locations. data objects involves you know, contracting typically in different in of different formats, types, many

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its One of take before actions to deployed cases and improve on students. meeting to the will nation's agendas AI AI Appian Appian to student recently advisers advisers. meet with universities proposed largest uses graduation to recommend they student rates,

emphasize the enterprise. that First, in draw such data how important system it the I is to a want on all

trying student all complete know help X-year to a a to degree, about need the threats you're their progress. to If you

failing they're in You need that's to courses, system. know any if one

payments. on if know in tuition another they're to need system. You That's late

missing logs. they're classes. That's if know to the attendance need You in

someplace if they out. dropped know else. have friends to That's who recently need You

get and And the These recommendation. You are all good AI different needs make to a risks idea. identify sources. them data

become in their easy is under themselves. well, it months. X deploy other Counselors system live going students, chatbot easy. be that want as a it AI We set just up a point easy My technologists to was questions And to ask use. must and made not such to some about

the the of the of about enterprise, disclosing algorithms across insights merging talk don't none you on you until amount that. it. We requires the control. drawing sounds within we implications, great it least of AI widest the All massive enterprise and data, of this full but while data training do amounts data, of uploading offer Appian sets data consider

in algorithm organization rather architecture an cost and on AI. the to for more our It's much specialize an more use private We data pretraining pertinent privacy. of clients' every just effective respectful our than everything that's provide We fabric information and question, knows.

example core manages In platform, company the Another It now enterprise processes with pharmaceutical make company to top QX, logistics. this XX,XXX deploy several employees. Appian ones our standard trials its to to will manufacturing our point. related over including workflow tool. A clinical and platform named

aims to company market to bring products The new faster.

This and, decided technology to privy it. keeping the very they is while to know the results, lab most to firm trust say, AI et sensitive of This protecting their their privacy global take make to has Our highest commitment our to is documents, their data work seriously. needless they confidential the cetera. what of

the some QX by landed total to deals XXXX X-figure quarter. compared deals XX% of our period top Appian software last The value contract largest new year. in this XX increased our same of net

are Appian personnel A modern purchased operational Here U.S. integrate to analysts it can its system and train, Appian data to it mobilize XXX,XXX platform. notable some a software forces. into from stories. its will wants In XX so use military equip better a single branch will deal. globally. QX, X-figure manage systems unify legacy

The assets too billions modernize customer Another legacy wants financial managing company a example, growing new that became are hundreds maintain. costly in dollars to with and QX of is and fabric company systems help of run more unify view, systems data than software in a process the a Appian a to services quickly Appian's can deal. onboarding, over scale will data single core into workflows like customer so dozen will customer from a million we annually. transfer. X transactions end-to-end wire X-figure

police platform cases and priorities operations requests, triage systems, manual. the Next, incident to to app. field officers QX, improve Desk as productivity inbound them process recently to unify workers national group's a public new disparate investigation. enterprise-wide adopted In force with will had strategic route safety. and an Appian selected and for This starting open it always an been optimize management improve

Now incidents faster respond Appian. able to using to will thousands of officers be

a a became selected X-figure to our with effort, now, systems billion. process. is provider this platform QX health and and top deal aid $X It its example initiative a made to provider Last insurance in save modernize into The data running software enrollment will millions do company-wide a initiate expects checks, single to approve new annually fix applications, eligibility The discrepancies, fabric requests customer. process Medicaid application, a can and Appian. employees consolidate so request and of Medicare organization the Appian's on billing starting process.

notes. amount of up million. final financial Appian The from loan And our few We $XXX facility term a up $XXX with is facility is strength. the Now additional the $XXX million, existing principal quarter from welcome now revolving facility million. new this credit million, and participation $XX from aggregate the expanded lenders. credit

this market in to Appian anything so discipline held deals. without progress in intention sell has done our our aim to large high growth. financial from made more and and taking We've

our at more. hope on Meeting You'll hear AI April Washington, strategy, in to plans and more at about Investor you XX technology, Appian see We'll I D.C. results, talk there. World our

With call to that, Mark. the I'll hand

Mark Matheos

review XXXX. guidance full the for year and then financial the I'll for Matt. QX highlights and Thanks, provide quarter, we'll the

range. existing from customers We high in our verticals. closed contribution above growth XXXX of continued coming from guidance end on a the and and We industry revenue strong note adjusted with saw key EBITDA healthy strong

Let's go the details. into

revenue currency basis, subscription guidance. On was XX% revenue of currency constant cloud and XX% an Total total million, grew above revenue an a subscriptions Cloud grew subscription XX% of $XXX.X subscriptions was increase year-over-year. million, increase revenue year-over-year. $XX.X year-over-year constant XX% a basis, On year-over-year.

X% Professional down was services $XX.X revenue year-over-year. million,

quarter-to-quarter As volatile performance. previously can noted, be from can influence a large services revenue few and projects

to revenue. percentage on as a we success. expect services driving Our revenue term, of be professional a continue partners continue strategic focused decline customer to to services Long and will total professional offering, enabling

an XX% XX% was and a the prior period of was revenue constant year total grew basis, guidance our range. of currency On revenue in ago above XX% year-over-year. to XX% XX% Subscriptions $XXX.X revenue, in increase and quarter. million, revenue the compared Total total year-over-year

a in up and the prior quarter. Cloud subscription revenue was year XXX% XXX% from XXXX, retention of as ago XXX% December XX, rate

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

XX% of contributed operations total year XX% international ago compared period. the revenue, to in Our

net XX% last year's in Our mix. total with new bookings XXXX, ACV new approximately cloud software consistent bookings software of net were the

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

the Professional margin services compared in the in period year-ago was XX% quarter. and prior XX%, non-GAAP gross XX% to

on management. of adoption increase our our to invest success the prior earnings noted As achieve These technology we platform. customer advisers customers and our help most in calls, continue from

beyond. result, to the and professional As XX% a margin services in decline should range gross non-GAAP low XXXX

operating from adjusted $XX.X $XXX.X $XX.X X% non-GAAP of million, the Adjusted EBITDA versus ago to compared and guidance an our the year were period. ago million expenses EBITDA year million, a million Total loss period. million, down was of of in million loss $XX.X in gain $XXX.X between $X a

the million aren't considered in movements approximately a to compared in $XX.X year exchange gains, forecast We quarter, the period exchange in In had FX our same million rates. guidance. foreign don't gains fourth of foreign we they $X.X of ago. Therefore,

outstanding Non-GAAP net non-GAAP outstanding million is $X.X the million the per $XX.X of XXXX on for XXXX. for diluted million the diluted XXXX. shares of to $X.XX income fourth XX.X of share, loss $X.XX quarter and per This quarter net was diluted of fourth shares diluted fourth quarter million XX.X based share for compared or or

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

sheet, the and by of million credit $XXX The revolving loan facility million $XX February principal turn by to million. credit wanted revolving update and balance the the Now to million. term $XX term agreement. facility of I XX, to on XXXX, total increased recent loan credit now the amount the aggregate $XXX before facility I On the we is the is amendment briefly our aggregate limit facility

filing. Additional details the be XX-K of will financing on in the terms the

Turning balance sheet. to our

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

last For from of operations as by year-ago year. revenue period the was XXXX, $XXX.X same XX% fourth million was an quarter, for cash December million Total XX, versus $X.X of $XX.X the period. deferred used increase million the

of have monthly. billing the past or basis, are customers billed our we on an we Due of the stated also our in invoiced annual deferred calls, business. As indicative that on to our our in are terms, upfront are have not changes the momentum customers majority revenue variability but large generally of quarterly

I'll XX% a our a subscription year million, total subscriptions Total year revenues currency subscription basis, million, currency recap XX% year-over-year. On revenue grew of for increase XXXX. revenue now the to representing year-over-year. full growth constant compared XXXX was revenue XX% cloud subscriptions $XXX.X XX% $XXX.X basis, Cloud results. an constant was grew On year-over-year.

X% Professional $XXX.X was grew services increase an constant revenue XXXX. On compared compared up year-over-year. to total million, was to XX% revenue XXXX. of total $XXX revenue million, basis, The currency a XX%

of XX.X and million based million non-GAAP million, Non-GAAP loss diluted for net respectively. XX.X loss or and $XX for Adjusted diluted in a per XXXX. a was of XXXX. compared XXXX EBITDA to $XX.X XXXX net share, $XX.X loss million was $X.XX XXXX, of or loss is in on share $X.XX outstanding compared to loss diluted million $XX.X million loss shares per This

ended million for December payment XX, same Preservation last Policy, in Judgment XXXX year. for XXXX. the million year million $XXX.X of substantial versus the a used cash for improvement was XXXX, of cash in onetime the usage the versus third operations Insurance quarter Adjusting $XXX.X showed For period $XX.X the XXXX

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

to Now I'll guidance. turn

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

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

Our guidance assumes the following.

decline year-over-year. by professional QX will rate First, revenue a low services double-digit

we For or by a single-digit decline will the year, year to will ago. professional compared a rate low services revenue expect be flat

seasonality a to Second, on-prem by grow prior year-over-year rate revenue that will mid-single-digit consistent is license will track periods. and with

income QX cost combination World. interest and QX's EBITDA loss is Third, be and adjusted other seasonality our expense be our $X year capital bigger adjusted and for million million license million This full EBITDA between total QX will the than Fifth, conference, be the to full QX and for $XX expenditures due $XX the approximately will million the loss. Appian user $XX will Fourth, in and of on-prem XXXX. $X $X year of XXXX. global million and running million between in

Finally, our rates FX of XX, assumes XXXX. February guidance as

In conclusion, this quarter. the we with pleased are performance

to growth in investing are and opportunities value profitability. optimizing long-term costs that drive drive We

to areas CSM R&D, profile and demand such prioritize cost our innovation, balance activities capacity. to and partnerships, targeted continue generation strategic coverage sales go-to-market We investments global in as

And will up open the questions. with that, for Operator? line we

Operator

from the first line our question Sanjit comes Instructions] Singh Stanley. Morgan And of from [Operator

Sanjit Singh

and demand about in you environment of XXXX, seeing coming the it automation value year. some other on cases as your as this What what of around relates to getting out maybe your space? AI? pursue Congrats starting you practical the momentum are are with to to customers of and a in some the of versus out in use initiatives think pipeline XXXX are Matt, end that the Appian solid

Matthew Calkins

Right simple a with door it's very now, opener, a proposition. fantastic AI done but best is

to our of their able an and get is to believe So on I to understand, short way of approach keeping a period and topic show in implement innovate easy to that easy customer catalyzing payoff before the large you the investment AI be rapid [ benefits. kind to it simple today. team essential get we're interest equipping the in to ] having

So that's helpful.

I pipeline also feel large about good the where particularly end pipeline. stands the of the and

As you know, we're on focused more a now. opportunities little those larger bit

Sanjit Singh

to the the about managing growth, sense. I or lot continue QX, get any EBITDA another in of Is bend When Yes, QX? -- you, what's the would to that or that in mean, adjusted for expense think we Matt, in of from we adjusted for benefit that positive shifting the any to expenses potential EBITDA versus -- balance of a really makes in then was that margins nice saw way, to sort what sort from said between QX positive the see. And QX?

Matthew Calkins

you Do that? take to want

Mark Matheos

really of was on regard. ship. we're with growth tight so But there our getting just that scrutiny still ordinary steady QX she out for the make we're operational name for of to just discipline. plan QX. to out revenue artifact a Sure. a discussed level here we the sure game the as goes expenses top We But ordinary strong get in lot in running on a expense ROI doing past, we was We're we're need on terms of our No, And good we've that nothing the us. didn't that adjusted on a in the in the is line. the anything to had do EBITDA really performance. side of of an -- on in and linearity of our Yes. positive That and of

Operator

Enders of from comes our next question from the Citi. And Steve line

Steven Enders

just conservatism guess and extra the are XQ, just what's kind some for broadly environment government other for seeing of kind and kind maybe start, environment shutdown taking here of of kind deal here. of of know guess, in in today in maybe to what about I baked what the you being for outlook for that things. questions bigger 'XX? But demand there's assuming for kind 'XX. I assumed the I the of you're thinking kind more and Thanks

Matthew Calkins

Okay.

still So disruption, never a macro it deal the think I environment. but that broadly, of there's rose to the level some recession.

the do across board genuine can there's that AI. think interest and them we what with I for

that and that it value, we're for for that just demand opportunities propels think industry, and sparks there's organization. creating I expansion our real recognition our not

I think this is a workable demand environment.

think a is that succeed in. demand I environment can we this

Steven Enders

Okay. I That's the number being helpful. the expansion. here quarter? guess of customer the maybe retention view strength do really expansion on good one, versus new kind And pick then the, And drove what what's that embedded how I for of here. of sustainability see the in for guess net maybe 'XX? guidance the guess, up forward? you just I net And into the it's to moving the the

Matthew Calkins

All right.

make also am up. on NRR. don't to we it any pleased I see guide tick Now

However, couple a It's can of a want it now. don't points. to but blip Maybe that. we for substantially. trend, make I And for it That's that now. hasn't blip a ticked up it's a on dwell

want that to deepening lead humanity we clients, contrast with in the techniques they our We the more touch substitute, conceive Appian substitute do something our sort want I emphasizing think it's we exposure, to we technology. the see with points, more to a are big relationship for having of that expansion. expansion, excel we what tech our more And want might on have be focusing -- more to that in. having

having the if connection. our will do in works. ways larger of human are advantaged by think pervasive I And lead sort it to the that's expansion that naturally the of to that we And sort we that shine thing competition. we against want more

want this implications an it's to So important but don't going. about number any is to I me, where make

Operator

Blair. line And Roberge of from Jake William comes the our next question from

Jacob Roberge

and how I into drive fabric? early data talk new solid AI Matt, about XXXX? Could on initiatives of monetization growth it any solutions too it's see Or the still you results. for that? Gen some Congrats up heading can to early, those but for start know shaping you is the

Matthew Calkins

We a those for have monetization strategy features. both of

specifically data it's and pay stratified a system whereby accessing for for you have if We for multiple more or AI, more fabric data Private sources pricing AI.

Not these advantage, also we will that but just absolutely [ So expecting volume, with a ] a just are not not them features just differentiation. tagging drive retention, revenue competitive revenue.

Jacob Roberge

past Helpful. into How then between go-to-market And then you your changes so, some leadership as the feel to focus a motion and the also changes, do the you've Okay. year partner just year? on like made go-to-market deeper head or the restructuring, over this organization. small is positioned you organization

Matthew Calkins

year like we're than were feel a I read how we stronger a lot it. I'd ago. That's

changes that better. been made that we I think careful we've been year, changes the but last with they've for the

Operator

And TD our the Derrick question Wood of comes line Cowen. next from from

Unknown Analyst

Derrick. is Cole This [ ] for on

good about flagged top little TCV that talk for in the and strength Could you You XX bit customers. a that unpack strength? what just new net drove

Matthew Calkins

it and is Yes. has Well, I part organizations we of big first at right. trying higher that our our and price median I to sites top strategic strategy, focus. all, that's relatively fact that TCVs mission-critical We're think, just on our little do happening. right? believe matter, in We seeing for And seeing doing a we're the All that with things points. something to higher higher by think deal, driven the we're belong the XX of target that on deals, bit, raise

aligned, going, say promises in unintended. strategically see don't about it's it it just did where make come It's just that any right? to we because So say gratifying I'll want it that's I to not intended. And it's to was what yes, where

Operator

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

Kevin Kumar

the into workflows? thinking the higher guess, AI their you're go-to-market traction early of more about public the little And Maybe and kind about sector I sector there. public implementing these you're making I are about there. of seeing level, a intelligence ask how terms investments and in talk wanted to international bit organizations

Matthew Calkins

U.S. and my and -- done represented looking we're this window Washington, company, it at the and international with federal has a sector out is untapped take always government D.C. so in matter, that in has lot you federal for U.S., we've the beltway government. the big us. opportunity. I'm for call, largely now as opportunity a state a public know, business the right As And of And Washington I here a

We though -- government procurement prove the the I did other substantial or so the iceberg feel of minimal. even mention wins hundreds and on of the every state remarks That's we public us that do, of the in of prepared one just like organization year do. Appian in penetration stuff. works enough what the and can Platform. with We've level nonfederal in notable beginning. to can we I millions dollars is This much have And can -- not tip it done does international opportunities, the do how to sector we that's great, but we like enough show is still

into And to an We're opportunity. forward moving largely We now. unsaturated it. making look move effort into. that's it's So an to right

Operator

next [Operator the Capital. comes Our Instructions] Macquarie line from Havemeyer from Frederick of question

Frederick Havemeyer

depth in integration data space data useful. a about to and speaking, to do and enterprises are data a considering have trying course, with it trying fantastic being everyone make now is little bit space what Gen of is in AI strategy. bit of trying ask positioning their And to wanted more I seems it the enterprise right about, generally a like data fabric here to

implement address? data significant been So helping also helping around challenges fabric, most what I'm And when the your are challenges you're that when customers onboarding implementing an have data most that this, what that, them you fabric? the to significant customers curious to or with partners face you're

Matthew Calkins

right. All Yes.

imaginations. does to First enterprise and you imagine so that have dominated will of synthesis right? to landscape benefit from be that We're silos. is cut open their the not data combined software into is silos walls, an have all, them. That merge organization by possible it used typical up to The to or

You just possible. them you have that to first tell it's --

integration. secondly, the then And

easy. it's Sometimes

then intuitive. It's you a one it's the once in and of very date easily overcome so it stitch have And Sometimes it's the not convey than with to bit very been cases, works -- But silos can challenge. some is these more out and custom-built data could APIs, a once might together. of entities we benefit, difficult simpler or imagine. integration

And it's very fully featured.

saying and you the permission strength such this can data by year, more a fabric will of is powerful read write, that By that actually filter can really I You the the way, years going layer. these have words, featured had that it. is data I And and suspect what not fully fabric. something what they've They'll start expect the have built we've be claim got It's organizations way individual to like is. that they for access.

and It's of and an competitors flag. to our to their use an Many their leverage customer unify to they of kind have seek aggregation force of whereby the strategy our to own data strategy. against are big artifact that they a data their to divergent enough in some enterprise. own pull claim data a their in an off, size, cases to under And

to if into always customer's We data our existing fabric you enables into we of the had call data wanted why architecture. because it Instead, customer, concept force that's in an place, that do respects empowers be the trying the all the have open to data And the they this got we customer strategy that a, that. it, to have database. attempt would first not we it, and pro vendor wanted enable way to the data is and like, have instead

not decision built have they company data technology. enable the be largely to taken decision, took have this we this because of strategy. that first that -- So also sort we've we our disperse this developed taken technology would that rivals to not have And because

of the be a result the is more technology than might this it because initially that think market I works, might beliefs how appear. it persistent division different about

Frederick Havemeyer

your cloud also, rates, down in a rate your also, you understanding while to renewal Matt. subscription couple of renewal not ask, up. ask XXXX rates net by retention a slightly ticked to data earlier, that But looks total I points yet does wanted like ticked wanted like both gross retention rate and it make. on said trends I revenue quarters,

to the total be would wanted there out that is I point cloud at to So and that? worth business attributable happening be company between that could calling anything ask, this

Matthew Calkins

Yes.

all, downtick. to that I want of address First

gross in that And downtick, did XX%. been Our and to numbers. indeed though now XX% XX%, It's it's XX%, still rate retention risen to I revenue a want remarkable bottoming clarify is best downtick still that may to from have back just class. at

I a small just been, migration, thought be I there when bit. very of more, to would any I there point amount, say, then bit little want was little secondly, a And there but say cloud, from a just just at to has a wouldn't on-premise

a may numbers that impacting so And small amount. be the

Operator

next comes Capital the from of from Thomas Our question Markets. Blakey line KeyBanc

Thomas Blakey

or cloud-based use understand use akin down you, a great. especially to to on have Matt. as And what the couple data these organizations That like Gen examples? on launching -- the these question an uptick they double AI enterprise data going on have applications company Is terms data the in given we're silos/bringing then are enterprise, fabric, be their something click they after don't I Maybe do together? cases, answering warehouse pros these here. about the compared -- from actual all data Snowflake, are that, the heels if your AI, great if would Appian maybe -- terms to what hearing it first of in just of fabric, also could solutions to asked our in or you I Gen if calls architecturally like don't if the want to use use going customers the a think to I he of that, Fred's breaking on

Matthew Calkins

is It's that's Well, going data modern give data. to example. do are No, your is Like warehouse. obvious data fabric? great one Snowflake like Snowflake what without a asking, us a all question. they

you one central all Just lined can on can of you got you of could a pile data their when repository, it. everything all they for we've move partnership source. move else's. data and into their of of you remember your talk fine, lot do, can't That's top it. all of if But, anyone can And a data there, this pertinent data to already or Gen if up any AI saying them boy, Snowflake that CIOs a or even I move I of into all

flaws AI a saying can can train, today, So or going a train, all If essentially which data isn't upload, like of want, to strategy. you on but a data you lot that typically, one with you've can access data everything variable you've source. Snowflake, right? freshness runs got after on if you run AI address then a to you that can loading in one it's got silo, you've got I'll that just another giant of all source you're costs, personal levels moment, either data you So There's or issues. issues, security fabric. It's upload

decision-makers. algorithm the lot tech And the a of at also does an CIO just for not I idea length great of that is training think own problematic

is, it absence too see of data that fabric, data on that I limited typical the fabric. AI one happening, So the most And in these Snowflake data think the is the strategy, strategies. the not algorithm data external think AI pertinent fallback And is though time, even there is one. there an of unfortunately, lake and on strategy, silo I everything on the what in runs the and absence just I of knows. with train plausible is are

Thomas Blakey

That's you've interesting. evolution maybe sprout planning out in seen in use 'XX? or that early the Any cases to

Matthew Calkins

Because which fabric? use sources. participation even in using makes rate, fabric. beneficial. connect most It our one, it's customers of and intuitive actually if got We've mean to simple. a use for data just feature. cases Like good you're to you Yes, it makes data is usage somewhere it XX%, terrific a easy for data so a Well, it XX%,

a objectize and huge in also it's easier possible fabric applications far it the object. so that was we over the just makes that's report grab to you're it or of forward past. new a and if that drag what And of multiple, process data been all touched a creator can a by new for data step using the user because But develop drop

creation objects data intuitive. across these environment. really of just of are within the new draggable artifacts the of It objects of enterprise now All sort makes development

payment use hypothetical of for my it remarks how need the in would the students cases, I right? challenge rescue, where cases need about prepared And data more source. I mentioned you one as more mean friends than all be great missed one really And dropped in is don't like of tuition it thinking or any attended those able in have know classes or of to things or grades, or be of had who exist to their out whether that, had a they've bad to going are different systems.

is for do fabric. natural simple can well we like use student how case a that's a something data help even application So to the

Thomas Blakey

in there Appian's significantly a And you understanding Where my question of to sell programs of my question. Do to of -- have my terms follow-up terms Gen in the in enterprises that, AI this point you Appian in these reaching at year's would World, solution of what lines your It would is kind last right in partner reach mind motion? expanded today terms fabric? of be and pretty out had your go-to-market touch along final the was. sales points from be, Excellent. to that infrastructure last data infrastructure enterprises touch the these large just

Matthew Calkins

down definitely we big Well, beneficial that on had focus partners big that a We that to coming wanted really And going a still we we registered make partners. and we year. And partners ton XXX But make decided have that into do partners willing No. in were year. the pivot investments into strategic did the of last XXXX. is investments in set reciprocity have focus, pattern to we us.

as of it greater in will think implementation partner will it our be quality and a commitment motivational I that well. for to be expansion, it will leads because allow more greater level

Operator

like remarks. hand Sri the today's I'd session conclude any program. for does back the of to question-and-answer Anantha to further This program

Srinivas Anantha

today. all you to look and thank of to events -- upcoming and Jonathan, soon. you you for you, forward investor you, talk you Thank Thank and next joining seeing Great. many call. at us We on earnings our

Operator

the ladies participation your conference. program. and does This today's gentlemen, you, in for conclude Thank

Good You day. disconnect. may now

Appian (APPN) 15 Feb 242023 Q4 Earnings call transcript