Company: APPN
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001441683-25-000053
Chunk: 51

Company: APPIAN CORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 1
Chunk 51
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 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 to $5.5 million of lease impairment charges recorded in the prior year period, with no 

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such charges occurring in the current year. Professional fees increased primarily due to a $2.7 million increase in litigation-related expenses attributable to the Pegasystems legal case. Although general and administrative headcount was down 5% from June 30, 2024 to June 30, 2025, personnel costs increased due to higher bonus expense and a $0.5 million increase in stock compensation expense.

Other (Income) Expense, Net

Six Months Ended June 30,20252024$ Change% Change(dollars in thousands)Other (income) expense, net$(23,280)$6,662$(29,942)***% of revenue(6.9)%2.2 %

*** Indicates a percentage