Appian (Nasdaq: APPN) today announced financial results for the
fourth quarter and full year ended December 31, 2019.
"For the full year, we exceeded our guidance and grew
subscription revenue by 34% to $155.1 million. Companies are
choosing Appian because of our strong customer outcomes, growing
partner ecosystem, and the speed of our low-code automation
platform," said Matt Calkins, CEO & Founder.
Fourth Quarter 2019 Financial Highlights
(under ASC 605):
- Revenue: Subscription revenue was $43.1
million for the fourth quarter of 2019, up 28% compared to the
fourth quarter of 2018. Total subscriptions revenue, which includes
sales of our SaaS subscriptions, on-premises term license
subscriptions and maintenance and support, increased 26%
year-over-year to $44.3 million for the fourth quarter of 2019.
Professional services revenue was $26.2 million for the fourth
quarter of 2019, compared to $25.1 million for the fourth quarter
of 2018. Total revenue was $70.5 million for the fourth quarter of
2019, up 17% compared to the fourth quarter of 2018. Subscription
revenue retention rate was 116% as of December 31, 2019.
- Operating loss and non-GAAP operating loss:
GAAP operating loss was $(12.1) million for the fourth quarter of
2019, compared to $(13.3) million for the fourth quarter of
2018. Non-GAAP operating loss was $(8.7) million for the
fourth quarter of 2019, compared to $(8.5) million for the fourth
quarter of 2018.
- Net loss and non-GAAP net loss: GAAP net loss
was $(10.0) million for the fourth quarter of 2019, compared to
$(13.9) million for the fourth quarter of 2018. GAAP net loss
per share attributable to common stockholders was $(0.15) for the
fourth quarter of 2019, based on 67.3 million weighted-average
shares outstanding, compared to $(0.22) for the fourth quarter of
2018, based on 63.8 million weighted-average shares
outstanding. Non-GAAP net loss was $(6.6) million for the
fourth quarter of 2019, compared to $(9.1) million for the fourth
quarter of 2018. Non-GAAP net loss per share was $(0.10) for
the fourth quarter of 2019, based on 67.3 million basic and diluted
shares outstanding, compared to $(0.14) for the fourth quarter of
2018, based on 63.8 million basic and diluted shares
outstanding.
- Adjusted EBITDA: Adjusted EBITDA was $(7.2)
million for the full year 2019, compared to $(7.9) million for the
fourth quarter of 2018.
Full Year 2019 Financial Highlights
(under ASC 605):
- Revenue: Subscription revenue was $155.1
million for the full year 2019, up 34% compared to the full year
2018. Total subscriptions revenue was $160.1 million for the full
year 2019, an increase of 27% from the prior year. Professional
services revenue was $106.3 million for the full year 2019, an
increase of 5% from the prior year. Total revenue was $266.3
million for the full year 2019, up 17% compared to the full year
2018.
- Operating loss and non-GAAP operating loss:
GAAP operating loss was $(49.1) million for the full year 2019,
compared to $(46.7) million for full year 2018. Non-GAAP
operating loss was $(32.7) million for the full year 2019, compared
to $(30.7) million for the full year 2018.
- Net loss and non-GAAP net loss: GAAP net loss
was $(49.4) million for the full year 2019, compared to $(49.5)
million for the full year 2018. GAAP net loss per basic and diluted
share attributable to common stockholders was $(0.75) for the full
year 2019, based on 65.5 million weighted average shares
outstanding, compared to $(0.80) for the full year 2018, based on
62.1 million weighted average shares outstanding. Non-GAAP
net loss was $(32.8) million for the full year 2019, compared to
$(33.4) million for the full year 2018. Non-GAAP net loss per
share was $(0.50) for the full year 2019, based on 65.5 million
basic and diluted shares outstanding, compared to $(0.54) for the
full year 2018, based on 62.1 million basic and diluted shares
outstanding.
- Adjusted EBITDA: Adjusted EBITDA was $(27.9)
million for the full year 2019.
- Balance sheet and cash flows: As of December
31, 2019, Appian had cash and cash equivalents of $159.8 million.
For the fourth quarter of 2019, cash used in operating activities
was $(6.0) million, compared with $(7.4) million in the fourth
quarter of 2018. Cash used in operating activities was $(9.0)
million for the year ended December 31, 2019, compared to cash used
by operating activities $(31.3) million for the year ended December
31, 2018. In accordance with U.S. GAAP, the $17.0 million of
tenant improvement allowance reimbursements received during the
year ended December 31, 2019 are a source of cash in operating
activities, while the $32.4 million of capital expenditures,
largely for the build-out of Appian's new headquarters and the
purchase of property and equipment, are recorded as cash used in
investing activities.
Appian adopted Accounting Standards Update No. 2014-09, Revenue
from Contracts with Customers (Topic 606), or ASC 606, on January
1, 2019, using the modified retrospective method. Financial
results for the quarter and year ended December 31, 2019 are
presented in accordance with ASC 606 and for purposes of
comparability, financial information for the quarter and year ended
December 31, 2019 have also been disclosed under ASC Topic 605,
Revenue Recognition, or ASC 605. This press release and the
associated fourth quarter 2019 earnings presentation, which can be
found on Appian's website at
https://investors.appian.com/investor-relations, includes
additional information to reconcile the impact of the adoption of
ASC 606.
Fourth Quarter 2019 Financial Highlights (under ASC
606):
- Revenue: Cloud subscription revenue was $26.4
million for the fourth quarter of 2019. Total subscriptions revenue
was $42.1 million. Professional services revenue was $26.5
million. Total revenue was $68.6 million for the fourth quarter of
2019. Cloud subscription revenue retention rate, a new metric, was
115% as of December 31, 2019.
- Operating loss and non-GAAP operating loss:
GAAP operating loss was $(13.1) million for the fourth quarter of
2019. Non-GAAP operating loss was $(9.7) million for the
fourth quarter of 2019.
- Net loss and non-GAAP net loss: GAAP net loss
was $(10.8) million for the fourth quarter of 2019. GAAP net loss
per share attributable to common stockholders was $(0.16) for the
fourth quarter of 2019, based on 67.3 million weighted average
shares outstanding. Non-GAAP net loss was $(7.4) million for the
fourth quarter of 2019. Non-GAAP net loss per share was $(0.11) for
the fourth quarter of 2019, based on 67.3 million basic and diluted
weighted average shares outstanding.
- Adjusted EBITDA: Adjusted EBITDA was $(8.2)
million for the fourth quarter of 2019.
Full Year 2019 Financial Highlights
(under ASC 606):
- Revenue: Cloud subscription revenue was $95.0
million for the full year 2019. Total subscriptions revenue was
$151.3 million. Professional services revenue was $109.1 million.
Total revenue was $260.4 million for the full year 2019.
- Operating loss and non-GAAP operating loss:
GAAP operating loss was $(50.5) million for the full year
2019. Non-GAAP operating loss was $(34.0) million for the
full year 2019.
- Net loss and non-GAAP net loss: GAAP net loss
was $(50.7) million for the full year 2019. GAAP net loss per
basic share attributable to common stockholders was $(0.77) for the
year 2019, based on 65.5 million weighted average shares
outstanding. Non-GAAP net loss was $(34.1) million for the
full year 2019. Non-GAAP net loss per share was $(0.52) for
the full year 2019, based on 65.5 million basic and diluted shares
outstanding.
- Adjusted EBITDA: Adjusted EBITDA was $(29.3)
million for the full year 2019.
A reconciliation of GAAP to non-GAAP financial
measures has been provided in the tables following the financial
statements in this press release. An explanation of these
measures is also included below under the heading “Non-GAAP
Financial Measures.”
Fourth Quarter 2019 Business
Highlights:
- Gartner Peer Insights named Appian a Customers’ Choice
for enterprise Low-code platforms.
- Aite Group ranked Appian Best-in-Class for Financial
Services Client Life Cycle.
- Appian released the latest version of its low-code automation
platform.
- UiPath integrated with Appian's Robotic Process Automation
orchestration capabilities.
- Naturgy, a leading multinational energy provider, selected
Appian's low-code platform to fuel its digital transformation.
Financial Outlook:
The guidance below includes the adoption of ASC
606. As of February 20, 2020, guidance for the first quarter 2020
and full year 2020 under ASC 606 are as follows:
- First Quarter 2020 Guidance:
- Cloud subscription revenue is expected to be in the range of
$27.8 million and $28.1 million, representing year-over-year growth
of between 31% and 32%.1
- Total revenue is expected to be in the range of $71.0 million
and $71.5 million, representing year-over-year growth of between
18% and 19%.
- Adjusted EBITDA loss is expected to be in the range of $(12.0)
million and $(11.0) million.
- Non-GAAP net loss per share is expected to be in the range of
$(0.20) and $(0.18). This assumes 67.6 million weighted average
common shares outstanding.
- Full Year 2020 Guidance:
- Cloud subscription revenue is expected to be in the range of
$121.3 million and $123.1 million, representing year-over-year
growth of between 28% and 30%.
- Total revenue is expected to be in the range of $296.0 million
and $298.0 million, representing year-over-year growth of
14%.
- Adjusted EBITDA loss is expected to be in the range of $(34.0)
million and $(32.0) million.
- The impact from ASC 606 on full year 2020 subscriptions revenue
is anticipated to be more than the $8.8 million decrease in
2019.
- Non-GAAP net loss per share is expected to be in the range of
$(0.58) and $(0.55). This assumes 68.3 million non-GAAP
weighted average common shares outstanding.
1Under ASC 605, the estimated range for
subscription revenue guidance for the first quarter 2020 represents
a year-over-year growth rate of between 32% to 33%.
Conference Call Details:
Appian will host a conference call today,
February 20, 2020, at 5:00 p.m. ET to discuss Appian's financial
results for the fourth quarter and full year ended December 31,
2019 and business outlook.
The live webcast of the conference call can be
accessed on the Investor Relations page of Appian’s website at
http://investors.appian.com. To access the call, please dial (877)
407-0792 in the U.S. or (201) 689-8263 internationally.
Following the call, an archived webcast will be available at the
same location on the Investor Relations page. A telephone
replay will be available for one week at (844) 512-2921 in the U.S.
or (412) 317-6671 internationally with recording access code
13698412.
About Appian
Appian (NASDAQ: APPN) provides a low-code automation platform
that accelerates the creation of high-impact business applications.
Many of the world’s largest organizations use Appian applications
to improve customer experience, achieve operational excellence, and
simplify global risk management and compliance. For more
information, visit www.appian.com.
Non-GAAP Financial Measures
To supplement its consolidated financial statements, which are
prepared and presented in accordance with GAAP, Appian provides
investors with certain non-GAAP financial measures, including
non-GAAP operating loss, non-GAAP net loss, non-GAAP net loss per
share, non-GAAP weighted average shares outstanding and
adjusted EBITDA. These non-GAAP financial measures exclude the
effect of stock-based compensation expense and gain or loss on
disposal of an asset. The presentation of these non-GAAP financial
measures is not intended to be considered in isolation or as a
substitute for, or superior to, the financial information prepared
and presented in accordance with GAAP, and Appian’s non-GAAP
measures may be different from non-GAAP measures used by other
companies. For more information on these non-GAAP financial
measures, please see the reconciliation of these non-GAAP financial
measures to their nearest comparable GAAP measures at the end of
this press release. A reconciliation of non-GAAP guidance
measures to the most comparable GAAP measures is not available on a
forward-looking basis without unreasonable efforts due to the high
variability, complexity and low visibility with respect to the
charges excluded from these non-GAAP measures.
Appian uses these non-GAAP financial measures for financial and
operational decision-making and as a means to evaluate
period-to-period comparisons. Appian’s management believes that
these non-GAAP financial measures provide meaningful supplemental
information regarding Appian’s performance by excluding certain
expenses that may not be indicative of its recurring core business
operating results. Appian believes that both management and
investors benefit from referring to these non-GAAP financial
measures in assessing Appian’s performance and when planning,
forecasting, and analyzing future periods. These non-GAAP financial
measures also facilitate management’s internal comparisons to
historical performance as well as comparisons to competitors’
operating results. Appian believes these non-GAAP financial
measures are useful to investors both because (1) they allow for
greater transparency with respect to measures used by management in
its financial and operational decision-making and (2) they are used
by Appian’s institutional investors and the analyst community to
help them analyze the health of Appian’s business.
Forward-Looking Statements
This press release includes forward-looking statements. All
statements contained in this press release other than statements of
historical facts, including statements regarding Appian’s future
financial and business performance for the first quarter and
full-year 2020, future investment by Appian in its go-to-market
initiatives, increased demand for the Appian platform, market
opportunity and plans and objectives for future operations,
including Appian’s ability to drive continued subscription revenue
and total revenue growth, are forward-looking statements. The words
"anticipate," believe," "continue," "estimate," "expect," "intend,"
"may," "will" and similar expressions are intended to identify
forward-looking statements. Appian has based these forward-looking
statements on its current expectations and projections about future
events and financial trends that Appian believes may affect its
financial condition, results of operations, business strategy,
short-term and long-term business operations and objectives and
financial needs. These forward-looking statements are subject to a
number of risks and uncertainties, including the risks and
uncertainties associated with Appian’s ability to grow its business
and manage its growth, Appian’s ability to sustain its revenue
growth rate, continued market acceptance of Appian’s platform and
adoption of low-code solutions to drive digital transformation, the
fluctuation of Appian’s operating results due to the length and
variability of its sales cycle, competition in the markets in which
Appian operates, risks and uncertainties associated with the
composition and concentration of Appian’s customer base and their
demand for its platform and satisfaction with the services provided
by Appian, the potential fluctuation of Appian’s future quarterly
results of operations, Appian’s ability to shift its revenue
towards subscriptions and away from professional services, Appian’s
ability to operate in compliance with applicable laws and
regulations, Appian’s strategic relationships with third parties
and use of third-party licensed software and its platform’s
compatibility with third-party applications, and the timing of
Appian’s recognition of subscription revenue which may delay the
effect of near term changes in sales on its operating results, and
the additional risks and uncertainties set forth in the "Risk
Factors" section of Appian’s Annual Report on Form 10-K for the
year ended December 31, 2019 filed with the Securities and Exchange
Commission on February 20, 2020 and other reports that Appian has
filed with the Securities and Exchange Commission. Moreover,
Appian operates in a very competitive and rapidly changing
environment. New risks emerge from time to time. It is not possible
for Appian’s management to predict all risks, nor can Appian assess
the impact of all factors on its business or the extent to which
any factor, or combination of factors, may cause actual results to
differ materially from those contained in any forward-looking
statements Appian may make. In light of these risks, uncertainties
and assumptions, Appian cannot guarantee future results, levels of
activity, performance, achievements or events and circumstances
reflected in the forward-looking statements will occur. Appian is
under no duty to update any of these forward-looking statements
after the date of this press release to conform these statements to
actual results or revised expectations, except as required by
law.
Investor ContactWill Maina
ICR703-442-1091investors@appian.com
Media ContactNicole
GreggsDirector, Media
Relations703-260-7868nicole.greggs@appian.com
|
APPIAN CORPORATION AND SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(in thousands, except share and per share data) |
|
|
Year Ended December 31, |
|
2019 |
|
2018 |
|
As Reported (ASC 606) |
|
Impacts fromAdoption |
|
WithoutAdoption(ASC 605) |
|
As Reported(ASC 605) |
Assets |
|
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
159,755 |
|
|
|
$ |
— |
|
|
|
$ |
159,755 |
|
|
|
$ |
94,930 |
|
|
Accounts receivable, net of allowance |
70,408 |
|
|
|
— |
|
|
|
70,408 |
|
|
|
79,383 |
|
|
Deferred commissions, current |
14,543 |
|
|
|
(6,061 |
) |
|
|
20,604 |
|
|
|
14,020 |
|
|
Prepaid expenses and other current assets |
32,955 |
|
|
|
16,343 |
|
|
|
16,612 |
|
|
|
21,293 |
|
|
Total current assets |
277,661 |
|
|
|
10,282 |
|
|
|
267,379 |
|
|
|
209,626 |
|
|
Property and equipment,
net |
39,554 |
|
|
|
— |
|
|
|
39,554 |
|
|
|
7,539 |
|
|
Operating right-of-use
asset |
24,205 |
|
|
|
— |
|
|
|
24,205 |
|
|
|
— |
|
|
Deferred commissions, net of
current portion |
28,979 |
|
|
|
15,780 |
|
|
|
13,199 |
|
|
|
15,088 |
|
|
Deferred tax assets |
494 |
|
|
|
— |
|
|
|
494 |
|
|
|
326 |
|
|
Other assets |
592 |
|
|
|
— |
|
|
|
592 |
|
|
|
601 |
|
|
Total
assets |
371,485 |
|
|
|
26,062 |
|
|
|
345,423 |
|
|
|
233,180 |
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
|
Accounts payable |
$ |
5,222 |
|
|
|
$ |
— |
|
|
|
$ |
5,222 |
|
|
|
$ |
9,249 |
|
|
Accrued expenses |
7,488 |
|
|
|
— |
|
|
|
7,488 |
|
|
|
7,464 |
|
|
Accrued compensation and related benefits |
10,691 |
|
|
|
— |
|
|
|
10,691 |
|
|
|
13,796 |
|
|
Deferred revenue, current |
82,201 |
|
|
|
(28,985 |
) |
|
|
111,186 |
|
|
|
95,523 |
|
|
Operating lease liability, current |
3,836 |
|
|
|
— |
|
|
|
3,836 |
|
|
|
— |
|
|
Finance lease liability, current |
1,447 |
|
|
|
— |
|
|
|
1,447 |
|
|
|
— |
|
|
Other current liabilities |
1,395 |
|
|
|
— |
|
|
|
1,395 |
|
|
|
2,369 |
|
|
Total current liabilities |
112,280 |
|
|
|
(28,985 |
) |
|
|
141,265 |
|
|
|
128,401 |
|
|
Operating lease liability, net
of current portion |
44,416 |
|
|
|
— |
|
|
|
44,416 |
|
|
|
— |
|
|
Finance lease liability, net
of current portion |
2,375 |
|
|
|
— |
|
|
|
2,375 |
|
|
|
— |
|
|
Deferred revenue, net of
current portion |
7,139 |
|
|
|
(4,891 |
) |
|
|
12,030 |
|
|
|
16,145 |
|
|
Deferred tax liabilities |
38 |
|
|
|
— |
|
|
|
38 |
|
|
|
42 |
|
|
Deferred rent, net of current
portion |
— |
|
|
|
— |
|
|
|
— |
|
|
|
15,400 |
|
|
Total
liabilities |
166,248 |
|
|
|
(33,876 |
) |
|
|
200,124 |
|
|
|
159,988 |
|
|
Stockholders’
equity |
|
|
|
|
|
|
|
Class A common stock |
3 |
|
|
|
— |
|
|
|
3 |
|
|
|
3 |
|
|
Class B common stock |
3 |
|
|
|
— |
|
|
|
3 |
|
|
|
3 |
|
|
Additional paid-in
capital |
340,929 |
|
|
|
— |
|
|
|
340,929 |
|
|
|
218,284 |
|
|
Accumulated other
comprehensive (loss) income |
(285 |
) |
|
|
320 |
|
|
|
(605 |
) |
|
|
542 |
|
|
Accumulated deficit |
(135,413 |
) |
|
|
59,618 |
|
|
|
(195,031 |
) |
|
|
(145,640 |
) |
|
Total stockholders’
equity |
205,237 |
|
|
|
59,938 |
|
|
|
145,299 |
|
|
|
73,192 |
|
|
Total liabilities and
stockholders’ equity |
$ |
371,485 |
|
|
|
26,062 |
|
|
|
$ |
345,423 |
|
|
|
$ |
233,180 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
APPIAN CORPORATION AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(in thousands, except share and per share data) |
|
|
Three Months Ended December 31, |
|
2019 |
|
2018 |
|
As Reported(ASC 606) |
|
Impacts fromAdoption |
|
WithoutAdoption(ASC 605) |
|
As Reported(ASC 605) |
Revenue: |
|
|
|
|
|
|
|
Subscriptions |
$ |
42,108 |
|
|
|
$ |
(2,210 |
) |
|
|
$ |
44,318 |
|
|
|
$ |
35,108 |
|
|
Professional services |
26,510 |
|
|
|
358 |
|
|
|
26,152 |
|
|
|
25,108 |
|
|
Total revenue |
68,618 |
|
|
|
(1,852 |
) |
|
|
70,470 |
|
|
|
60,216 |
|
|
Cost of revenue: |
|
|
|
|
|
|
|
Subscriptions |
4,993 |
|
|
|
— |
|
|
|
4,993 |
|
|
|
3,284 |
|
|
Professional services |
17,780 |
|
|
|
— |
|
|
|
17,780 |
|
|
|
18,926 |
|
|
Total cost of revenue |
22,773 |
|
|
|
— |
|
|
|
22,773 |
|
|
|
22,210 |
|
|
Gross profit |
45,845 |
|
|
|
(1,852 |
) |
|
|
47,697 |
|
|
|
38,006 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
Sales and marketing |
31,254 |
|
|
|
(860 |
) |
|
|
32,114 |
|
|
|
30,177 |
|
|
Research and development |
15,625 |
|
|
|
— |
|
|
|
15,625 |
|
|
|
12,332 |
|
|
General and administrative |
12,028 |
|
|
|
— |
|
|
|
12,028 |
|
|
|
8,799 |
|
|
Total operating expenses |
58,907 |
|
|
|
(860 |
) |
|
|
59,767 |
|
|
|
51,308 |
|
|
Operating loss |
(13,062 |
) |
|
|
(992 |
) |
|
|
(12,070 |
) |
|
|
(13,302 |
) |
|
Other (income) expense: |
|
|
|
|
|
|
|
Other (income) expense, net |
(2,822 |
) |
|
|
(228 |
) |
|
|
(2,594 |
) |
|
|
510 |
|
|
Interest expense |
131 |
|
|
|
— |
|
|
|
131 |
|
|
|
64 |
|
|
Total other (income)
expense |
(2,691 |
) |
|
|
(228 |
) |
|
|
(2,463 |
) |
|
|
574 |
|
|
Loss before income taxes |
(10,371 |
) |
|
|
(764 |
) |
|
|
(9,607 |
) |
|
|
(13,876 |
) |
|
Income tax expense |
426 |
|
|
|
— |
|
|
|
426 |
|
|
|
27 |
|
|
Net loss |
$ |
(10,797 |
) |
|
|
$ |
(764 |
) |
|
|
$ |
(10,033 |
) |
|
|
$ |
(13,903 |
) |
|
Net loss per share
attributable to common stockholders: |
|
|
|
|
|
|
|
Basic and diluted |
$ |
(0.16 |
) |
|
|
$ |
(0.01 |
) |
|
|
$ |
(0.15 |
) |
|
|
$ |
(0.22 |
) |
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
Basic and diluted |
67,316,098 |
|
|
|
— |
|
|
|
67,316,098 |
|
|
|
63,793,704 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
2019 |
|
2018 |
|
As Reported(ASC 606) |
|
Impacts from Adoption |
|
WithoutAdoption(ASC 605) |
|
As Reported(ASC 605) |
Revenue: |
|
|
|
|
|
|
|
Subscriptions |
$ |
151,299 |
|
|
|
$ |
(8,786 |
) |
|
|
$ |
160,085 |
|
|
|
$ |
126,012 |
|
|
Professional services |
109,053 |
|
|
|
2,791 |
|
|
|
106,262 |
|
|
|
100,731 |
|
|
Total revenue |
260,352 |
|
|
|
(5,995 |
) |
|
|
266,347 |
|
|
|
226,743 |
|
|
Cost of revenue: |
|
|
|
|
|
|
|
Subscriptions |
17,098 |
|
|
|
— |
|
|
|
17,098 |
|
|
|
11,997 |
|
|
Professional services |
76,743 |
|
|
|
— |
|
|
|
76,743 |
|
|
|
72,928 |
|
|
Total cost of revenue |
93,841 |
|
|
|
— |
|
|
|
93,841 |
|
|
|
84,925 |
|
|
Gross profit |
166,511 |
|
|
|
(5,995 |
) |
|
|
172,506 |
|
|
|
141,818 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
Sales and marketing |
117,440 |
|
|
|
(4,625 |
) |
|
|
122,065 |
|
|
|
105,992 |
|
|
Research and development |
58,043 |
|
|
|
— |
|
|
|
58,043 |
|
|
|
44,724 |
|
|
General and administrative |
41,496 |
|
|
|
— |
|
|
|
41,496 |
|
|
|
37,821 |
|
|
Total operating expenses |
216,979 |
|
|
|
(4,625 |
) |
|
|
221,604 |
|
|
|
188,537 |
|
|
Operating loss |
(50,468 |
) |
|
|
(1,370 |
) |
|
|
(49,098 |
) |
|
|
(46,719 |
) |
|
Other (income) expense: |
|
|
|
|
|
|
|
Other (income) expense, net |
(941 |
) |
|
|
(47 |
) |
|
|
(894 |
) |
|
|
2,295 |
|
|
Interest expense |
367 |
|
|
|
— |
|
|
|
367 |
|
|
|
198 |
|
|
Total other (income)
expense |
(574 |
) |
|
|
(47 |
) |
|
|
(527 |
) |
|
|
2,493 |
|
|
Loss before income taxes |
(49,894 |
) |
|
|
(1,323 |
) |
|
|
(48,571 |
) |
|
|
(49,212 |
) |
|
Income tax expense |
820 |
|
|
|
— |
|
|
|
820 |
|
|
|
239 |
|
|
Net loss |
$ |
(50,714 |
) |
|
|
$ |
(1,323 |
) |
|
|
$ |
(49,391 |
) |
|
|
$ |
(49,451 |
) |
|
Net loss per share
attributable to common stockholders: |
|
|
|
|
|
|
|
Basic and diluted |
$ |
(0.77 |
) |
|
|
$ |
(0.02 |
) |
|
|
$ |
(0.75 |
) |
|
|
$ |
(0.80 |
) |
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
Basic and diluted |
65,479,327 |
|
|
|
— |
|
|
|
65,479,327 |
|
|
|
62,140,684 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
APPIAN CORPORATION AND SUBSIDIARIES |
STOCK BASED COMPENSATION EXPENSE |
(in thousands) |
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
(unaudited) |
|
|
|
|
Cost of revenue |
|
|
|
|
|
|
|
Subscriptions |
$ |
185 |
|
|
$ |
159 |
|
|
$ |
647 |
|
|
$ |
514 |
|
Professional services |
287 |
|
|
1,072 |
|
|
2,748 |
|
|
1,717 |
|
Operating expenses |
|
|
|
|
|
|
|
Sales and marketing |
771 |
|
|
1,692 |
|
|
4,742 |
|
|
3,473 |
|
Research and development |
497 |
|
|
1,310 |
|
|
3,480 |
|
|
2,416 |
|
General and administrative |
1,648 |
|
|
574 |
|
|
4,826 |
|
|
7,934 |
|
Total stock-based compensation expense |
$ |
3,388 |
|
|
$ |
4,807 |
|
|
$ |
16,443 |
|
|
$ |
16,054 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
APPIAN CORPORATION AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(in thousands) |
|
|
Year Ended
December 31, |
|
2019 |
|
2018 |
|
As Reported(ASC 606) |
|
ImpactsfromAdoption |
|
WithoutAdoption(ASC 605) |
|
As Reported(ASC 605) |
Net loss |
$ |
(50,714 |
) |
|
|
$ |
(1,323 |
) |
|
|
$ |
(49,391 |
) |
|
|
$ |
(49,451 |
) |
|
Adjustments to reconcile net loss to net cash used in
operating activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
4,742 |
|
|
|
— |
|
|
|
4,742 |
|
|
|
2,021 |
|
|
Loss (gain) on disposal of equipment |
146 |
|
|
|
— |
|
|
|
146 |
|
|
|
(4 |
) |
|
Bad debt expense |
99 |
|
|
|
— |
|
|
|
99 |
|
|
|
211 |
|
|
Deferred income taxes |
(330 |
) |
|
|
— |
|
|
|
(330 |
) |
|
|
(218 |
) |
|
Stock-based compensation |
16,443 |
|
|
|
— |
|
|
|
16,443 |
|
|
|
16,054 |
|
|
Changes in assets and liabilities: |
|
|
|
|
|
|
601 |
|
|
Accounts receivable |
7,432 |
|
|
|
— |
|
|
|
7,432 |
|
|
|
(23,332 |
) |
|
Prepaid expenses and other assets |
8,754 |
|
|
|
4,095 |
|
|
|
4,659 |
|
|
|
(1,025 |
) |
|
Deferred commissions |
(9,319 |
) |
|
|
(4,625 |
) |
|
|
(4,694 |
) |
|
|
(7,615 |
) |
|
Accounts payable and accrued expenses |
(4,043 |
) |
|
|
— |
|
|
|
(4,043 |
) |
|
|
7,461 |
|
|
Accrued compensation and related benefits |
(3,072 |
) |
|
|
— |
|
|
|
(3,072 |
) |
|
|
(3 |
) |
|
Other current liabilities |
1,318 |
|
|
|
— |
|
|
|
1,318 |
|
|
|
1,823 |
|
|
Deferred revenue |
12,791 |
|
|
|
1,935 |
|
|
|
10,856 |
|
|
|
23,023 |
|
|
Operating lease liabilities |
6,827 |
|
|
|
— |
|
|
|
6,827 |
|
|
|
|
— |
|
|
Deferred rent, non-current |
— |
|
|
|
— |
|
|
|
— |
|
|
|
(266 |
) |
|
Net cash used in operating activities |
(8,926 |
) |
|
|
82 |
|
|
|
(9,008 |
) |
|
|
(31,321 |
) |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
Purchases of property and equipment |
(32,421 |
) |
|
|
— |
|
|
|
(32,421 |
) |
|
|
(7,014 |
) |
|
Proceeds from sale of equipment |
— |
|
|
|
— |
|
|
|
— |
|
|
|
4 |
|
|
Net cash used in investing activities |
(32,421 |
) |
|
|
— |
|
|
|
(32,421 |
) |
|
|
(7,010 |
) |
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
Proceeds from public offering, net of underwriting discounts |
101,653 |
|
|
|
— |
|
|
|
101,653 |
|
|
|
58,258 |
|
|
Payment of costs related to public offerings |
(350 |
) |
|
|
— |
|
|
|
(350 |
) |
|
|
(429 |
) |
|
Proceeds from exercise of common stock options |
4,899 |
|
|
|
— |
|
|
|
4,899 |
|
|
|
3,133 |
|
|
Principal payments on finance lease obligations |
(653 |
) |
|
|
— |
|
|
|
(653 |
) |
|
|
— |
|
|
Net cash provided by financing activities |
105,549 |
|
|
|
— |
|
|
|
105,549 |
|
|
|
60,962 |
|
|
Effect of foreign exchange rate changes on cash and
cash equivalents |
623 |
|
|
|
(82 |
) |
|
|
705 |
|
|
|
(1,459 |
) |
|
Net increase in cash and cash
equivalents |
64,825 |
|
|
|
— |
|
|
|
64,825 |
|
|
|
21,172 |
|
|
Cash and cash equivalents, beginning of
period |
94,930 |
|
|
|
— |
|
|
|
94,930 |
|
|
|
73,758 |
|
|
Cash and cash equivalents, end of period |
$ |
159,755 |
|
|
|
— |
|
|
|
$ |
159,755 |
|
|
|
$ |
94,930 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
APPIAN CORPORATION AND SUBSIDIARIES |
RECONCILIATION OF GAAP MEASURES TO NON-GAAP
MEASURES |
(in thousands, except share and per share data) |
(unaudited) |
|
Three Months Ended December 31, |
|
2019 |
|
2018 |
|
As Reported(ASC 606) |
|
WithoutAdoption(ASC 605) |
|
As Reported(ASC 605) |
Reconciliation of non-GAAP
operating loss: |
|
|
|
|
|
GAAP operating loss |
$ |
(13,062 |
) |
|
|
$ |
(12,070 |
) |
|
|
$ |
(13,302 |
) |
|
Add back: |
|
|
|
|
|
Stock-based compensation expense |
3,388 |
|
|
|
3,388 |
|
|
|
4,807 |
|
|
Non-GAAP operating loss |
$ |
(9,674 |
) |
|
|
$ |
(8,682 |
) |
|
|
$ |
(8,495 |
) |
|
|
|
|
|
|
|
Reconciliation of non-GAAP net
loss: |
|
|
|
|
|
GAAP net loss |
$ |
(10,797 |
) |
|
|
$ |
(10,033 |
) |
|
|
$ |
(13,903 |
) |
|
Add back: |
|
|
|
|
|
Stock-based compensation expense |
3,388 |
|
|
|
3,388 |
|
|
|
4,807 |
|
|
Non-GAAP net loss |
$ |
(7,409 |
) |
|
|
$ |
(6,645 |
) |
|
|
$ |
(9,096 |
) |
|
|
|
|
|
|
|
Non-GAAP earnings per
share: |
|
|
|
|
|
Non-GAAP net loss |
$ |
(7,409 |
) |
|
|
$ |
(6,645 |
) |
|
|
$ |
(9,096 |
) |
|
Non-GAAP weighted average shares used to compute net loss per
shareattributable to common stockholders, basic and diluted |
67,316,098 |
|
|
|
67,316,098 |
|
|
|
63,793,704 |
|
|
Non-GAAP net loss per share, basic and diluted |
$ |
(0.11 |
) |
|
|
$ |
(0.10 |
) |
|
|
$ |
(0.14 |
) |
|
|
|
|
|
|
|
Reconciliation of non-GAAP net
loss per share, basic and diluted: |
|
|
|
|
|
GAAP net loss per share attributable to common stockholders, basic
and diluted |
(0.16 |
) |
|
|
$ |
(0.15 |
) |
|
|
$ |
(0.22 |
) |
|
Add back: |
|
|
|
|
|
Non-GAAP adjustments to net loss per share |
0.05 |
|
|
|
0.05 |
|
|
|
0.08 |
|
|
Non-GAAP net loss per share, basic and diluted |
$ |
(0.11 |
) |
|
|
$ |
(0.10 |
) |
|
|
$ |
(0.14 |
) |
|
|
|
|
|
|
|
Reconciliation of adjusted
EBITDA: |
|
|
|
|
|
GAAP net loss |
$ |
(10,797 |
) |
|
|
$ |
(10,033 |
) |
|
|
$ |
(13,903 |
) |
|
Other (income) expense, net |
(2,822 |
) |
|
|
(2,594 |
) |
|
|
510 |
|
|
Interest expense |
131 |
|
|
|
131 |
|
|
|
64 |
|
|
Income tax expense |
426 |
|
|
|
426 |
|
|
|
27 |
|
|
Depreciation expense |
1,469 |
|
|
|
1,469 |
|
|
|
568 |
|
|
Stock-based compensation expense |
3,388 |
|
|
|
3,388 |
|
|
|
4,807 |
|
|
Adjusted EBITDA |
$ |
(8,205 |
) |
|
|
$ |
(7,213 |
) |
|
|
$ |
(7,927 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
2019 |
|
2018 |
|
As Reported(ASC 606) |
|
WithoutAdoption(ASC 605) |
|
As Reported(ASC 605) |
Reconciliation of non-GAAP
operating loss: |
|
|
|
|
|
GAAP operating loss |
$ |
(50,468 |
) |
|
|
$ |
(49,098 |
) |
|
|
$ |
(46,719 |
) |
|
Add back: |
|
|
|
|
|
Stock-based compensation expense |
16,443 |
|
|
|
16,443 |
|
|
|
16,054 |
|
|
Non-GAAP operating loss |
$ |
(34,025 |
) |
|
|
$ |
(32,655 |
) |
|
|
$ |
(30,665 |
) |
|
|
|
|
|
|
|
Reconciliation of non-GAAP net
loss: |
|
|
|
|
|
GAAP net loss |
$ |
(50,714 |
) |
|
|
$ |
(49,391 |
) |
|
|
$ |
(49,451 |
) |
|
Add back: |
|
|
|
|
|
Stock-based compensation expense |
16,443 |
|
|
|
16,443 |
|
|
|
16,054 |
|
|
Loss (gain) on disposal of asset |
146 |
|
|
|
146 |
|
|
|
$ |
(4 |
) |
|
Non-GAAP net loss |
$ |
(34,125 |
) |
|
|
$ |
(32,802 |
) |
|
|
$ |
(33,401 |
) |
|
|
|
|
|
|
|
Non-GAAP earnings per
share: |
|
|
|
|
|
Non-GAAP net loss |
$ |
(34,125 |
) |
|
|
$ |
(32,802 |
) |
|
|
$ |
(33,401 |
) |
|
Non-GAAP weighted average shares used to compute net loss per share
attributable to common stockholders, basic and diluted |
65,479,327 |
|
|
|
65,479,327 |
|
|
|
62,140,684 |
|
|
Non-GAAP net loss per share, basic and diluted |
$ |
(0.52 |
) |
|
|
$ |
(0.50 |
) |
|
|
$ |
(0.54 |
) |
|
|
|
|
|
|
|
Reconciliation of non-GAAP net
loss per share, basic and diluted: |
|
|
|
|
|
GAAP net loss per share attributable to common stockholders, basic
and diluted |
(0.77 |
) |
|
|
$ |
(0.75 |
) |
|
|
$ |
(0.80 |
) |
|
Add back: |
|
|
|
|
|
Non-GAAP adjustments to net loss per share |
0.25 |
|
|
|
0.25 |
|
|
|
0.26 |
|
|
Non-GAAP net loss per share, basic and diluted |
$ |
(0.52 |
) |
|
|
$ |
(0.50 |
) |
|
|
$ |
(0.54 |
) |
|
|
|
|
|
|
|
Reconciliation of adjusted
EBITDA: |
|
|
|
|
|
GAAP net loss |
$ |
(50,714 |
) |
|
|
$ |
(49,391 |
) |
|
|
$ |
(49,451 |
) |
|
Other (income) expense, net |
(941 |
) |
|
|
(894 |
) |
|
|
2,295 |
|
|
Interest expense |
367 |
|
|
|
367 |
|
|
|
198 |
|
|
Income tax expense |
820 |
|
|
|
820 |
|
|
|
239 |
|
|
Depreciation expense |
4,742 |
|
|
|
4,742 |
|
|
|
2,020 |
|
|
Stock-based compensation expense |
16,443 |
|
|
|
16,443 |
|
|
|
16,054 |
|
|
Adjusted EBITDA |
$ |
(29,283 |
) |
|
|
$ |
(27,913 |
) |
|
|
$ |
(28,645 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appian (NASDAQ:APPN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Appian (NASDAQ:APPN)
Historical Stock Chart
From Jul 2023 to Jul 2024