Thu, May 8, 5:17 PM (3 days ago)
**Appian Corporation (APPN) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $166.4 million, up 11.1% YoY, driven by a 14.2% increase in subscriptions revenue. - **Gross Profit:** $127.5 million, with a gross margin of 76.6%, up from 74.6% YoY. - **Operating Loss:** $0.8 million, significantly improved from a $19.5 million loss in Q1 2024. - **Net Loss:** $1.2 million, improved from a $32.9 million loss in Q1 2024. - **Cash Flow:** Positive operating cash flow of $45.0 million, up from $18.9 million in Q1 2024. **Profit Margins:** - **Gross Margin:** 76.6%, up from 74.6% YoY. - **Operating Margin:** -0.5%, improved from -13.0% YoY. **Cash Flow:** - **Operating Cash Flow:** $45.0 million, up from $18.9 million in Q1 2024. - **Investing Cash Flow:** -$24.1 million, primarily due to investments in short-term securities. - **Financing Cash Flow:** -$5.5 million, mainly due to debt repayments and employee tax payments. **Earnings Changes:** - **EPS:** -$0.02, improved from -$0.45 in Q1 2024. **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by increased subscriptions, particularly cloud subscriptions. - **Cost Management:** Reduced sales and marketing expenses by 6.2% and research and development expenses by 0.6%. - **Cash Flow Improvement:** Strong operating cash flow due to better cost management and increased collections. **Trends and Uncertainties:** - **Market Adoption:** Continued growth in subscriptions revenue indicates positive market adoption. - **Customer Retention:** High cloud subscriptions renewal rate of 112%. - **International Growth:** 36.2% of revenue from international customers, with plans to expand further. - **Legal Uncertainties:** Ongoing litigation with Pegasystems, with a judgment of $2.036 billion, but the outcome is uncertain. **Future Operations Impact:** - **Investments:** Continued investment in platform development, sales, and marketing. - **Debt Management:** Compliance with credit agreement covenants, with $62.0 million outstanding under the revolving credit facility. - **Cash Position:** Strong cash position with $134.9 million in cash and cash equivalents, and $64.7 million in short-term investments. **Key Metrics:** - **Cloud Subscriptions Revenue:** $99.8 million, up 15.3% YoY. - **Cloud Subscriptions Revenue Retention Rate:** 112%, down from 120% in Q1 2024. **Conclusion:** Appian's Q1 2025 results show significant improvement in financial health, with increased revenue, improved margins, and strong cash flow. The company continues to invest in growth while managing costs effectively. However, legal uncertainties and market risks remain, which could impact future performance.