Company: APPN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001441683-25-000068
Chunk: 105

Company: APPIAN CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 8
Chunk 105
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 by a $19.5 million increase in cloud subscriptions revenue, a $3.5 million increase in term license subscriptions revenue, and a $1.0 million increase in maintenance and support revenue. With respect to new versus existing customers, there was a $6.3 million increase in subscriptions revenue from sales to new customers, while the remaining $17.8 million 

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of the increase was attributable to expanded deployments, price increases on renewals, and corresponding sales of additional subscriptions to existing customers. The increase in professional services revenue was due primarily to a $6.5 million increase in revenue from sales to new customers along with a $2.4 million increase in sales to existing customers.

Cost of Revenue

Three Months Ended September 30,20252024$ Change% Change(dollars in thousands)Cost of revenueSubscriptions$17,762$14,082$3,680 26.1 %Professional services27,53123,0024,529 19.7 Total cost of revenue$45,293$37,084$8,209 22.1 %Subscriptions gross margin87.9 %88.6 %Professional services gross margin30.9 %25.6 %Total gross margin75.8 %75.9 %

Cost of revenue increased $8.2 million, or 22%, in the three months ended September 30, 2025 compared to the same period in 2024, primarily due to a $3.1 million increase in hosting costs coupled with a $2.5 million increase in contractor costs and a $2.2 million increase in professional services and product support personnel costs. Hosting costs increased due to an increase in sales of our cloud offering during the three months ended September 30, 2025, while contractor costs increased due to an increase in the usage of subcontractors for professional services engagements. Professional services and product support personnel costs increased due to an increase in headcount from September 30, 2024 to September 30, 2025.

Sales and Marketing Expense

Three Months Ended September 30,20252024$ Change% Change(dollars in thousands)Sales and marketing$51,918$50,865$1,053 2.1 %% of revenue27.8 %33.0 %

Sales and marketing expense increased $1.1 million, or 2%, in the three months ended September 30, 2025 compared to the same