Executive Summary
Appian delivered a solid top-line result in QQ1 2025, with revenue of $166.43 million, up 11% year over year and modestly down quarter over quarter (-0.16%). Gross margin remained robust at 76.6%, underscoring the strength of the core platform economics. However, the quarter showed a near-term profitability headwind, as operating income declined to a small loss of $0.83 million and net income was negative at $1.18 million, mainly due to ongoing investments in R&D and go-to-market activities, including stock-based compensation.
Key Performance Indicators
QoQ: -116.57% | YoY:95.73%
Key Insights
Revenue: $166.43 million in QQ1 2025, up 11.07% YoY and -0.16% QoQ. Gross Profit: $127.51 million, gross margin 76.62% (YoY +17.31%; QoQ -2.67%). Operating Income: -$0.83 million, operating margin -0.50% (YoY improvement vs. QQ1 2024, but QoQ deterioration from a positive print in the prior quarter). EBITDA: $7.33 million, EBITDA margin 4.40%. Net Income: -$1.18 million, net margin -0.71%; EPS: -$0.0159 (basic and diluted). Weighted average shares: 74.09 million. Cash flow: Net cash provided by ...
Financial Highlights
Revenue: $166.43 million in QQ1 2025, up 11.07% YoY and -0.16% QoQ. Gross Profit: $127.51 million, gross margin 76.62% (YoY +17.31%; QoQ -2.67%). Operating Income: -$0.83 million, operating margin -0.50% (YoY improvement vs. QQ1 2024, but QoQ deterioration from a positive print in the prior quarter). EBITDA: $7.33 million, EBITDA margin 4.40%. Net Income: -$1.18 million, net margin -0.71%; EPS: -$0.0159 (basic and diluted). Weighted average shares: 74.09 million. Cash flow: Net cash provided by operating activities $44.97 million; free cash flow $44.32 million; CFO-to-revenue margin ~27.0%. Capital expenditures: $0.65 million; free cash flow yield remains attractive given the revenue base. Balance sheet highlights: cash and cash equivalents $134.98 million; cash and short-term investments $199.70 million; total debt $312.34 million; long-term debt $289.94 million; net debt $177.36 million; deferred revenue $258.58 million (current). Equity is negative at $(31.75) million, yielding a leveraged capital structure with a debt-to-capitalization measure above 1.0 and negative book value; liquidity ratios show current ratio 1.25 and quick ratio 1.25, indicating modest near-term liquidity headroom. Key efficiency metrics show receivables turnover ~1.22x and payables turnover ~5.92x, with a cash conversion cycle of ~58 days.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
166.43M |
11.07% |
-0.16% |
| Gross Profit |
127.51M |
17.31% |
-2.67% |
| Operating Income |
-834.00K |
95.73% |
-116.57% |
| Net Income |
-1.18M |
96.42% |
91.38% |
| EPS |
-0.02 |
96.47% |
91.17% |
Key Financial Ratios
operatingProfitMargin
-0.5%
operatingCashFlowPerShare
$0.61
freeCashFlowPerShare
$0.6
priceEarningsRatio
-453.41
Management Commentary
Earnings call transcript data not provided in the dataset. Consequently, management quotes and segment commentary from the QQ1 2025 call could not be extracted. Plan to augment this section with direct quotes and thematic synthesis (strategy, operations, market conditions) once the transcript is available.
Not available due to transcript not provided.
— Not available
Not available due to transcript not provided.
— Not available
Forward Guidance
Management commentary or formal forward guidance for QQ1 2025 is not included in the provided data. Given the trajectory of revenue growth, sustained gross margins, and a cash-generation profile, the near-term focus appears to be on improving operating leverage through a combination of revenue mix optimization, disciplined SG&A investment, and continued R&D initiatives to extend platform capabilities. Investors should monitor: (1) the trajectory of deferred revenue (current $258.58M) and renewal visibility, (2) the rate of operating expense containment and R&D efficiency, (3) the cadence of free cash flow generation relative to working capital changes, and (4) the company’s ability to deleverage given the substantial long-term debt load relative to equity.