Company: APPN
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001441683-25-000041
Chunk: 88

Company: APPIAN CORP
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 88
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 and power of our software platform. In 2022, we opened a new product development center in India. Although we expect research and development expense to continue to increase in absolute dollars as such costs are critical to maintain and improve the quality of applications and our competitive position, we believe our product development center will result in cost savings over time.

General and Administrative Expense

General and administrative expense consists primarily of personnel costs, including salaries, bonuses, stock-based compensation, and other personnel costs for our administrative, legal, information technology, human resources, finance, and accounting teams as well as our senior executives. Additional expenses included in this category are non-personnel costs such as travel-related expenses, contracting and professional fees for such services as audits, taxation, and legal, insurance and other corporate expenses, including allocated overhead costs, and bad debt expenses. In 2025, we expect general and administrative expense to increase in absolute dollars largely due to investments in our information technology team.

Other Non-Operating Expense

Other Expense (Income), Net

Other expense (income), net consists primarily of gains and losses related to changes in foreign currency exchange rates, interest income on our cash and cash equivalents and investments, and other sources of income or expense not related to our core business operations.

Interest Expense

Interest expense consists primarily of interest on our debt, amortization of deferred financing fees, unused credit facility fees, and commitment fees on our letters of credit.

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Results of Operations

The following table sets forth our consolidated statements of operations (in thousands):

Three Months Ended March 31,20252024RevenueSubscriptions$134,352 $117,694 Professional services32,074 32,141 Total revenue166,426 149,835 Cost of revenueSubscriptions14,894 12,270 Professional services24,024 25,727 Total cost of revenue38,918 37,997 Gross profit127,508 111,838 Operating expensesSales and marketing54,553 58,156 Research and development39,517 39,771 General and administrative34,272 33,446 Total operating expenses128,342 131,373 Operating loss(834)(19,535)Other non-operating (income) expenseOther (income) expense, net(5,716)8,207 Interest expense5,318 5,646 Total other non-operating (income) expense(398)13,853 Loss before income taxes(436)(33,388