Company: APPN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001441683-25-000068
Chunk: 108

Company: APPIAN CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 8
Chunk 108
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 $450,337 $73,733 16.4 %

Total revenue increased $73.7 million, or 16%, in the nine months ended September 30, 2025 compared to the same period in 2024 due to an increase in our subscriptions revenue of $60.4 million as well as an increase in our professional services revenue of $13.3 million. The increase in subscriptions revenue was driven by a $51.2 million increase in cloud subscriptions revenue, a $7.2 million increase in term license subscriptions revenue, and a $2.0 million increase in maintenance and support revenue. With respect to new versus existing customers, there was a $15.1 million increase in subscriptions revenue from sales to new customers, while the remaining $45.3 million of the increase was attributable to expanded deployments, price increases on renewals, and corresponding sales of additional subscriptions to existing customers. The increase in professional services revenue was due primarily to a $15.3 million increase in revenue from sales to new customers, which was partially offset by a $2.0 million decrease in sales to existing customers.

38

Cost of Revenue

Nine Months Ended September 30,20252024$ Change% Change(dollars in thousands)Cost of revenueSubscriptions$49,810$39,614$10,196 25.7 %Professional services78,32274,8803,442 4.6 Total cost of revenue$128,132$114,494$13,638 11.9 %Subscriptions gross margin88.0 %88.8 %Professional services gross margin28.7 %22.4 %Total gross margin75.6 %74.6 %

Cost of revenue increased $13.6 million, or 12%, in the nine months ended September 30, 2025 compared to the same period in 2024, primarily due to a $8.8 million increase in hosting costs coupled with a $4.9 million increase in contractor costs. These increases were partially offset by a $0.3 million decrease in professional services and product support personnel costs. Hosting costs increased due to an increase in sales of our cloud offering during the nine months ended September 30, 2025, while contractor costs increased due to an increase in the usage of subcontractors for professional services engagements. Although professional services and product support headcount increased from September 30, 2024 to September