Appian Corporation (NASDAQ:APPN) Q3 2024 Earnings Call Transcript November 7, 2024 8:30 AM ET

Company Participants

Jack Andrews - Investor Relations
Matt Calkins - Founder and CEO
Mark Matheos - Chief Financial Officer

Conference Call Participants

Keith Weiss - Morgan Stanley
Derrick Wood - TD Cowen
Raimo Lenschow - Barclays
Steve Enders - Citi
Jake Roberge - William Blair

Operator

Hello. And welcome to the Appian Third Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. It is now my pleasure to introduce Vice President of Investor Relations, Jack Andrews.

Jack Andrews

Good morning and thank you for joining us. Today we will review Appian’s third quarter 2024 financial results. With me are Matt Calkins, Chairman and Chief Executive Officer; and Mark Matheos, Chief Financial Officer. After prepared remarks, we will open the call for questions.

During this call, we may make statements related to our business that are considered forward-looking. These include comments related to our financial results, trends and guidance for the third quarter and full year 2024, the benefits of our platform, industry and market trends, our go-to-market and growth strategy, our market opportunity and ability to expand our leadership position, our ability to maintain and upsell existing customers, and our ability to acquire new customers.

These statements reflect our views only as of today and don’t represent our views as of any subsequent date. We won’t update these statements as a result of new information unless required by law. Actual results may differ materially from expectations due to the risks and uncertainties described in our SEC filings. Additionally, non-GAAP financial measures will be discussed on this conference call. Reconciliation of GAAP to non-GAAP measures are provided in our earnings release. With that, I’d like to turn the call over to our CEO, Matt Calkins. Matt?

Matt Calkins

Thanks, Jack. In the third quarter of 2024, Appian's cloud subscription revenue grew 22% year-over-year to $94.1 million. Subscriptions revenue grew 19% to $123.1 million. Total revenue grew 12% to $154.1 million. Our cloud subscriptions revenue retention rate was 117% as of September 30th. Adjusted EBITDA was positive $10.8 million. Appian continues to grow even as we become more efficient. Growth remains our top priority. We now project positive adjusted EBITDA for the full current year 2024, and improvement from our break-even forecast last quarter. Mark will provide more details. Appian has pivoted to a more efficient cost structure. We did that with minimal short-term impact and without losing any long-term growth potential. We've streamlined our priorities, focusing on high-value implementations in core verticals and use cases. We've become more closely engaged with our very happy customer base. We've reorganized some departments to become leaner and more effective, and we're seeing the first results.