Company: APPN
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001441683-25-000053
Chunk: 104

Company: APPIAN CORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 8
Chunk 104
---
 million, or 8%, in the six months ended June 30, 2025 compared to the same period in 2024, primarily due to a $7.3 million decrease in sales and marketing personnel costs, a $1.6 million decrease in allocated costs such as rent and employee medical costs, and a $0.7 million decrease in marketing expenses. These decreases were partially offset by a $0.7 million increase in travel and entertainment costs and a $0.6 million increase in contractor costs. Sales and marketing personnel costs decreased due to a decrease in sales and marketing headcount of 25% from June 30, 2024 to June 30, 2025. Travel and entertainment expense increased due to a higher number of in-person events and engagements relative to the prior year, while the increase in contractor costs was attributable to an increase in third-party consulting fees.

Research and Development Expense

Six Months Ended June 30,20252024$ Change% Change(dollars in thousands)Research and development$79,864$79,217$647 0.8 %% of revenue23.7 %26.7 %

Research and development expense increased $0.6 million, or 1%, in the six months ended June 30, 2025 compared to the same period in 2024. This change is primarily attributable to a $0.6 million increase in research and development personnel costs. Although research and development headcount remained consistent period over period, overall personnel costs increased due to higher stock compensation and severance expense, offset by a reduction in salaries expense. 

General and Administrative Expense

Six Months Ended June 30,20252024$ Change% Change(dollars in thousands)General and administrative$71,170$73,639$(2,469)(3.4)%% of revenue21.1 %24.9 %

General and administrative expense decreased $2.5 million, or 3%, in the six months ended June 30, 2025 compared to the same period in 2024 primarily due to a $4.5 million decrease in rent expense. In addition, insurance expense decreased $2.7 million due to lower amortization expense associated with our judgment preservation insurance policy. These decreases were partially offset by increases of $1.8 million in professional fees, $1.2 million in information technology spending, and $0.7 million in general and administrative personnel costs. Rent expense decreased due