Company: APPN
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001441683-25-000017
Chunk: 88

Company: APPIAN CORP
Filing Date: 2025-02-19
Form: 10-K
Item: Item 7
Chunk 88
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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.

The number of employees in general and administrative functions decreased from 280 at December 31, 2023 to 267 at December 31, 2024. 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.

51

Results of Operations

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

Year Ended December 31, 202420232022RevenueSubscriptions$490,568 $412,337 $340,152 Professional services126,454 133,026 127,839 Total revenue617,022 545,363 467,991 Cost of revenueSubscriptions53,487 43,563 36,005 Professional services96,692 99,759 97,301 Total cost of revenue150,179 143,322 133,306 Gross profit466,843 402,041 334,685 Operating expensesSales and marketing230,885 242,381 220,374 Research and development154,977 153,098 139,210 General and administrative141,834 114,535 120,111 Total operating expenses527,696 510,014 479,695 Operating loss(60,853)(107,973)(145,010)Other non-operating expenseOther expense (income), net6,773 (17,603)3,545 Interest expense23,582 17,862 1,673 Total other non