Company: APPN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001441683-25-000068
Chunk: 47

Company: APPIAN CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 1
Chunk 47
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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 (Income)

Other Income, Net

Other 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 September 30,Nine Months Ended September 30,2025202420252024RevenueSubscriptions$147,188 $123,121 $414,197 $353,789 Professional services39,816 30,931 109,873 96,548 Total revenue187,004 154,052 524,070 450,337 Cost of revenueSubscriptions17,762 14,082 49,810 39,614 Professional services27,531 23,002 78,322 74,880 Total cost of revenue45,293 37,084 128,132 114,494 Gross profit141,711 116,968 395,938 335,843 Operating expensesSales and marketing51,918 50,865 166,929 175,613 Research and development40,263 38,572 120,127 117,789 General and administrative36,416 34,688 107,586 108,327