Company: APPN
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001441683-25-000041
Chunk: 91

Company: APPIAN CORP
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 91
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 the three months ended March 31, 2025 compared to 20.0% in the same period in 2024 due largely to a decrease in professional services personnel expense, partially offset by a slight decrease in professional services revenue in the comparable period. Gross margin increased to 76.6% for the three months ended March 31, 2025 compared to 74.6% for the three months ended March 31, 2024, driven largely by the increase in subscriptions revenue and the improvement in professional services gross margin.

Sales and Marketing Expense

Three Months Ended March 31,20252024$ Change% Change(dollars in thousands)Sales and marketing$54,553$58,156$(3,603)(6.2)%% of revenue32.8 %38.8 %

Sales and marketing expense decreased $3.6 million, or 6.2%, in the three months ended March 31, 2025 compared to the same period in 2024, primarily due to a $2.2 million decrease in sales and marketing personnel costs. This decrease was partially offset by a $0.3 million increase travel and entertainment costs and a $0.2 million increase in contractor costs. Sales and marketing personnel costs decreased due to a decrease in sales and marketing headcount of 24% from March 31, 2024 to March 31, 2025 and a $0.3 million decrease in stock compensation expense. Travel and entertainment expense increased due to a higher number of in-person events and engagements relative to the prior year, while the increase in contractor costs was attributable to an increase in third-party consulting fees.

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Research and Development Expense

Three Months Ended March 31,20252024$ Change% Change(dollars in thousands)Research and development$39,517$39,771$(254)(0.6)%% of revenue23.7 %26.5 %

Research and development expense decreased $0.3 million, or 0.6%, in the three months ended March 31, 2025 compared to the same period in 2024. This change is primarily attributable to a $0.3 million decline in research and development personnel costs. Research and development headcount remained consistent period over period, but overall personnel costs declined due to realized cost savings from our product development center in India. 

General and Administrative Expense

Three Months Ended March 31,20252024$ Change% Change