Company: APPN
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001441683-25-000041
Chunk: 45

Company: APPIAN CORP
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 45
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 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.

33

Research and Development Expense

Three Months Ended March 31,20252024$ Change% Change(dollars in thousands)Research and development$39,517$39,771$(254)(0.6)%% of revenue23.7 %26.5 %

Research and development expense decreased $0.3 million, or 0.6%, in the three months ended March 31, 2025 compared to the same period in 2024. This change is primarily attributable to a $0.3 million decline in research and development personnel costs. Research and development headcount remained consistent period over period, but overall personnel costs declined due to realized cost savings from our product development center in India. 

General and Administrative Expense

Three Months Ended March 31,20252024$ Change% Change(dollars in thousands)General and administrative$34,272$33,446$826 2.5 %% of revenue20.6 %22.3 %

General and administrative expense increased $0.8 million, or 2.5%, in the three months ended March 31, 2025 compared to the same period in 2024 primarily due to increases of $0.8 million in information technology spending and $0.7 million in professional fees. These increases were partially offset by decreases of $1.4 million in insurance expense and $0.3 million in personnel costs. Information technology costs were higher due to continued investments in computer software while professional fees were higher due to a $1.1 million increase in litigation-related expenses attributable to the Pegasystems cases and a $0.4 million increase in contract labor spending. The decrease in insurance expense was driven by the lower amortization expense of our judgment preservation insurance policy, and personnel costs were lower due to headcount decreasing by 3% from March 31, 2024 to March 31, 2025.

Other Non-Operating (Income) Expense, Net

Three Months Ended March 31,20252024$ Change% Change(dollars in thousands)Other (income) expense, net$(5,716)$8,207$(13,923)***% of revenue(3.4)%5.5 %

*** Indicates a percentage that is not meaningful.

Other income, net was