Company: APPN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001441683-25-000068
Chunk: 138

Company: APPIAN CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 2
Chunk 138
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2 %(17.5)%

* Totals may not foot due to rounding.

Comparison of the Three Months Ended September 30, 2025 and 2024

Revenue

Three Months Ended September 30,20252024$ Change% Change(dollars in thousands)RevenueSubscriptions$147,188 $123,121 $24,067 19.5 %Professional services39,816 30,931 8,885 28.7 Total revenue$187,004 $154,052 $32,952 21.4 %

Total revenue increased $33.0 million, or 21%, in the three months ended September 30, 2025 compared to the same period in 2024 due to an increase in our subscriptions revenue of $24.1 million coupled with an increase in our professional services revenue of $8.9 million. The increase in subscriptions revenue was driven by a $19.5 million increase in cloud subscriptions revenue, a $3.5 million increase in term license subscriptions revenue, and a $1.0 million increase in maintenance and support revenue. With respect to new versus existing customers, there was a $6.3 million increase in subscriptions revenue from sales to new customers, while the remaining $17.8 million 

35

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 $6.5 million increase in revenue from sales to new customers along with a $2.4 million increase in sales to existing customers.

Cost of Revenue

Three Months Ended September 30,20252024$ Change% Change(dollars in thousands)Cost of revenueSubscriptions$17,762$14,082$3,680 26.1 %Professional services27,53123,0024,529 19.7 Total cost of revenue$45,293$37,084$8,209 22.1 %Subscriptions gross margin87.9 %88.6 %Professional services gross margin30.9 %25.6 %Total gross margin75.8 %75.9 %

Cost of revenue increased $8.2 million, or 22%, in the three months ended September 30, 2025 compared to the same period in 2024, primarily due to a $3.1 million increase in hosting costs coupled with a $