Summary
Appian closed fiscal 2024 with fourth-quarter total revenue of $166.7 million, up 14.7% from the prior-year quarter. Full-year revenue reached $617.0 million, up 13.1%. Gross profit was $131.0 million in the quarter, up 18.0%, and $466.8 million for the full year, up 16.1%. Gross margin expanded to 78.6% in the quarter, up 2.2 percentage points, and to 75.7% for the full year, up 1.9 percentage points. The company swung to operating income of $5.0 million in the quarter from an operating loss in the prior-year quarter. Operating margin was 3.0%, up 14.6 percentage points. For the full year, operating loss narrowed to $(60.9) million, and operating margin improved to -9.9%, up 9.9 percentage points. Net loss widened to $(13.6) million in the quarter. Full-year net loss narrowed to $(92.3) million. Full-year diluted EPS was $(1.26), a narrowed loss.
Cash generation improved sharply. Operating cash flow was $13.9 million in the fourth quarter, up from cash used in the prior-year quarter. Full-year operating cash flow was $6.9 million, up from cash used in the prior-year period. Capital expenditures were $0.5 million in the quarter, down 62.4%, and $3.8 million for the full year, down 60.6%. Deferred revenue stood at $287.2 million, up 19.3% from the prior-year quarter. Remaining performance obligations, or backlog, were $546.0 million, up 11.5%. About 34% of backlog as of December 31, 2024 is not expected to be recognized in 2025. The cloud subscription revenue retention rate was 116% as of December 31, 2024, compared with 119% a year earlier. Over the last three completed fiscal years, the average cloud subscription gross revenue renewal rate was 98%.
Non-GAAP results showed a similar turn. Non-GAAP operating income was $18.7 million in the fourth quarter, compared with a non-GAAP operating loss of $(1.4) million in the prior-year quarter. Adjusted EBITDA was $21.2 million, compared with $1.0 million in the prior-year quarter. For the full year, adjusted EBITDA was $20.3 million, compared with an adjusted EBITDA loss of $(44.8) million. Non-GAAP net loss was $(0.2) million in the quarter, compared with non-GAAP net income of $4.9 million in the prior-year quarter. Full-year non-GAAP net loss was $(25.6) million, compared with $(59.2) million. Full-year non-GAAP net loss per share was $(0.35), compared with $(0.81). Guidance for the first quarter of 2025 calls for year-over-year revenue growth of 8% to 9% and cloud subscription revenue growth of 12% to 14%. Adjusted EBITDA is guided to $8.0 million to $10.0 million, and non-GAAP net income per share to $0.02 to $0.05, assuming 74.7 million weighted average shares. For the full year 2025, revenue growth is guided to 10% and cloud subscription revenue growth to 14%. Adjusted EBITDA is guided to $38.0 million to $42.0 million, and non-GAAP net income per share to $0.17 to $0.22, assuming 75.1 million weighted average shares.
Operationally, Appian was named a Leader in the Everest Group's Process Orchestration Products PEAK Matrix 2024. The company unveiled its latest platform release and highlighted AGL Energy's use of Appian to transform retail operations. It also announced partner award winners in Europe and APJ. Headcount fell from 2,257 employees at December 31, 2023 to 2,033 at December 31, 2024. Sales and marketing headcount dropped from 666 to 509, while research and development headcount rose from 681 to 702. General and administrative headcount declined from 280 to 267. Government agencies represented 32.2% of revenue in 2024, and customers outside the United States generated 36.6% of revenue. No single end-customer accounted for more than 10% of revenue. Risks include the length and variability of the sales cycle, competition, AI as a disruptive technology, customer concentration, and foreign currency fluctuations. Appian has a non-cancellable cloud hosting arrangement with Amazon Web Services with purchase commitments of $220.0 million over five years and minimum annual spending requirements of $44.0 million from November 2024 to October 2029. The company was in compliance with all credit facility covenants as of December 31, 2024. Management said 2025 will take a more balanced approach to growth while continuing on a path to profitability.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2024 | Q3 FY2024 | QoQ | Q4 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $166.7M | $154.1M | +8.2% | $145.3M | +14.7% |
| Gross profit | $131.0M | $117.0M | +12.0% | $111.0M | +18.0% |
| Gross margin | 78.6% | 75.9% | +2.7 pp | 76.4% | +2.2 pp |
| Research & development | $37.2M | $38.6M | -3.6% | $34.6M | +7.5% |
| Sales & marketing | $55.3M | $50.9M | +8.7% | $61.0M | -9.5% |
| General & administrative | $33.5M | $34.7M | -3.4% | $32.2M | +4.1% |
| Total operating expenses | $126.0M | $124.1M | +1.5% | $127.8M | -1.5% |
| Operating income (loss) | $5.0M | -$7.2M | +170.3% | -$16.8M | +129.9% |
| Operating margin | 3.0% | -4.7% | +7.7 pp | -11.6% | +14.6 pp |
| Net income (loss) | -$13.6M | -$2.1M | -549.9% | -$10.0M | -36.4% |
| Net margin | -8.2% | -1.4% | -6.8 pp | -6.9% | -1.3 pp |
| Diluted EPS | -$0.19 | -$0.03 | -$0.16 | -$0.14 | -$0.05 |
| Customers | 1,000 | — | — | 1,000 | ±0.0% |
Risks
The filing highlights AI as a disruptive technology that may shift human-orchestrated processes to machine-orchestrated processes. It warns that competitors, customers, or other third parties may incorporate AI into their products more quickly or more successfully, and that reliance on third-party large language model providers limits Appian's ability to differentiate its AI offerings.
Revenue from U.S. federal government agencies represented 23.9%, 21.3%, and 19.2% of total revenue in 2024, 2023, and 2022, respectively, and MD&A reports government agencies represented 32.2%, 29.1%, and 26.1% of total revenue over those same years. The filing notes that changes in the administration and their priorities may impact public sector budgets and funding for federal government agencies.
Appian is seeking to reinstate a $2.036 billion judgment against Pegasystems for trade secret misappropriation after the Court of Appeals of Virginia reversed the judgment on July 30, 2024 and remanded for a new trial. Collection is uncertain: Pegasystems does not currently have the cash necessary to satisfy the full amount, and the judgment preservation insurance policy provides up to $500.0 million of coverage.
Appian outsources substantially all cloud infrastructure to AWS, and the AWS agreement allows AWS to terminate with two years prior written notice, or sooner in specified circumstances. The MD&A also notes minimum purchase commitments totaling $220.0 million over five years, including minimum annual spending of $44.0 million from November 2024 to October 2029, with $41.2 million spent in 2024.
The sales cycle is described as long and unpredictable, particularly for large customers, and the company typically enters a significant portion of agreements in the last month and often the last two weeks of each quarter. MD&A also notes fourth-quarter seasonality in customer agreements and that about 34% of the $546.0 million backlog as of December 31, 2024 is not expected to be recognized in 2025.
The filing states that success depends on founder and CEO Matt Calkins and other highly skilled personnel, that there is no key person insurance on executive officers or key employees, and that return-to-office policies may hinder hiring and retention. MD&A reports total headcount decreased from 2,257 at December 31, 2023 to 2,033 at December 31, 2024, with sales and marketing headcount down from 666 to 509.
The Credit Agreement provides a $200.0 million term loan and up to $100.0 million revolving credit facility, with $62.0 million of revolver capacity used as of December 31, 2024. Interest expense increased $5.7 million, or 32.0%, in 2024 compared to 2023, and covenants limit additional indebtedness while a default could accelerate amounts due.
The regulatory framework for AI is changing rapidly, and the European Union's proposed Artificial Intelligence Act will likely have a material impact on how AI is regulated in the EU, including significant fines for violations related to prohibited AI systems, data governance, high-risk AI systems, and supplying incorrect, incomplete, or misleading information to authorities.
MD&A reports $16.8 million in foreign exchange losses in 2024 compared to $8.7 million in foreign exchange gains in 2023, contributing to other expense, net of $6.8 million in 2024 versus other income, net of $17.6 million in 2023. Revenue generated outside the United States was 36.6%, 35.8%, and 33.5% of total revenue in 2024, 2023, and 2022, respectively.
SaaS KPIs
All quarters →Cloud Subscriptions Revenue Retention Rate
Total Customers
Summary, forecast, risks and KPIs are extracted from APPIAN CORP's SEC filings for Q4 FY2024 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.