Company: APPN
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001441683-25-000041
Chunk: 43

Company: APPIAN CORP
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 43
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Revenue

Three Months Ended March 31,20252024$ Change% Change(dollars in thousands)RevenueSubscriptions$134,352 $117,694 $16,658 14.2 %Professional services32,074 32,141 (67)(0.2)Total revenue$166,426 $149,835 $16,591 11.1 %

Total revenue increased $16.6 million, or 11.1%, in the three months ended March 31, 2025 compared to the same period in 2024 due to an increase in our subscriptions revenue of $16.7 million. This increase was partially offset by a decrease in our professional services revenue of $0.1 million. The increase in subscriptions revenue was driven by a $13.2 million increase in cloud subscriptions revenue, a $3.1 million increase in term license subscriptions revenue, and a $0.3 million increase in maintenance and support revenue. With respect to new versus existing customers, there was an $8.1 million increase in subscriptions revenue from sales to new customers, while the remaining $8.5 million of the increase was attributable to expanded deployments, price increases on renewals, and corresponding sales of additional subscriptions to existing customers. The decrease in professional services 

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revenue was due primarily to a $4.9 million decrease in revenue from existing customers, which was largely offset by a $4.8 million increase in sales to new customers.

Cost of Revenue

Three Months Ended March 31,20252024$ Change% Change(dollars in thousands)Cost of revenueSubscriptions$14,894$12,270$2,624 21.4 %Professional services24,02425,727(1,703)(6.6)Total cost of revenue$38,918$37,997$921 2.4 %Subscriptions gross margin88.9 %89.6 %Professional services gross margin25.1 %20.0 %Total gross margin76.6 %74.6 %

Cost of revenue increased $0.9 million, or 2.4%, in the three months ended March 31, 2025 compared to the same period in 2024, primarily due to a $2.4 million increase in hosting costs coupled with a $0.4 million increase in contractor costs. These increases were partially offset by a $1.6