Company: APPN
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001441683-25-000017
Chunk: 28

Company: APPIAN CORP
Filing Date: 2025-02-19
Form: 10-K
Item: Item 1A
Chunk 28
---
 be adversely affected. The regulatory framework for AI and similar technologies, and automated decision making, is changing rapidly. It is possible that new laws and regulations will be adopted in the United States and in non-U.S. jurisdictions, or that existing laws and regulations may be interpreted in ways that would affect the operation of our business, including our data analytics products and services and the way in which we use AI and similar technologies in our business. For example, the European Union’s proposed Artificial Intelligence Act will likely have a material impact on the way AI is regulated in the EU, including significant fines for violations related to offering prohibited AI systems or data governance, high-risk AI systems and for supplying incorrect, incomplete, or misleading information to EU and member-state authorities.

Our future results of operations may fluctuate significantly due to a wide range of factors, which makes our future results difficult to predict.

Our revenue and results of operations have historically varied from period to period, and we expect they will continue to do so as a result of a number of factors, many of which are outside of our control, including:

•The level of demand for our platform and our professional services;

•The rate of renewal of subscriptions with, and extent of sales of additional subscriptions to, existing customers;

•Large customers failing to renew their subscriptions;

•The size, timing, and terms of our subscription agreements with existing and new customers, including revenue recognition issues;

•Variations in the revenue mix of our professional services and growth rates of our cloud subscription and professional services offerings, as well as the timing of subscriptions and sales offerings that include an on-premises software element for which the revenue allocated to that deliverable is recognized upfront;

•The timing and growth of our business, in particular through our hiring of new employees and international expansion;

•The timing of our adoption of new or revised accounting pronouncements applicable to public companies and the impact on our results of operations;

•The introduction of new products and product enhancements by existing competitors or new entrants into our market and changes in pricing for solutions offered by us or our competitors;

•Network outages, security breaches, technical difficulties, or interruptions with our platform;

•Changes in the growth rate of the markets in which we compete;

•The mix of subscriptions to our platform and professional services sold during a period;

19

•Customers delaying purchasing decisions in anticipation of new developments or enhancements by us or our competitors or otherwise;

•Changes in customers’ budgets;

•Changes in the administration and their priorities in terms of public sector budgets and funding;