Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| I think that there's recognition that we're creating real value and that sparks expansion opportunities and it propels demand for our industry, not just for our organization |
| I also feel good about where the pipeline stands and particularly the large end of the pipeline |
| In conclusion, we are pleased with the performance this quarter |
| We welcome the additional financial strength |
| We've got a terrific usage rate, somewhere 80%, 90% which is good for a participation in a feature |
| As a reminder, we continue to believe cloud subscription revenue is a better indicator of our business momentum than billings or remaining performance obligations or RPO |
| And then Matt, for you, I mean, the positive adjusted EBITDA in Q4, that was really nice to see |
| You flagged good strength in the TCV for top 10 net new customers |
| That was an artifact of our strong revenue performance |
| We saw continued healthy contribution from existing customers and strong growth from key industry verticals |
| These advisers help our customers achieve the most from our technology and increase adoption of our platform |
| Second and an interesting complement to the first observation, we achieved the highest non-GAAP gross margin in our public history last quarter at 78% |
| We closed 2023 on a strong note with revenue and adjusted EBITDA coming in above the high end of our guidance range |
| How do you feel like the go-to-market motion is positioned as you head into this year? Matt Calkins I feel like we're a lot stronger than we were a year ago |
| Subscriptions revenue grew by 24% to $115.8 million |
| On a constant currency basis, cloud subscription revenue grew 26% year-over-year |
| So we're equipping our team to be able to approach the customer innovate [ph] kind of an easy to understand, easy to implement way to get in on AI and show rapid benefits |
| I guess, for one, it's really good to see the net retention number pick up here |
| On a constant currency basis, cloud subscription revenue grew 23% year-over-year |
| I am also pleased to see it tick up |
| Second, on-prem license revenue will grow year-over-year by a mid-single-digit rate and will track to seasonality that is consistent with prior periods |
| Cloud subscription revenue was $83.1 million, an increase of 26% year-over-year and above guidance |
| Subscriptions revenue grew 21% to $412.3 million |
| Total revenue was $145.3 million, an increase of 16% year-over-year and above our guidance range |
| On a constant currency basis, total subscriptions revenue grew 21% year-over-year |
| On a constant currency basis, total subscriptions revenues grew 19% year-over-year |
| Total revenue grew 17% to $545.4 million |
| Total revenue grew 16% to $145.3 million |
| We had a really good level of linearity in -- on the top line |
| For the full year, Appian's cloud subscription revenue grew 29% to $304.5 million |
| Statement |
|---|
| Professional services revenue was $29.5 million, down 9% year-over-year |
| First, Q1 professional services revenue will decline by a low double-digit rate year-over-year |
| Our gross revenue retention rate did indeed downtick from 99% to 98%, bottoming at 97% and it's now risen back to 98% |
| Our adjusted EBITDA was a loss of $44.8 million |
| As a result, professional services non-GAAP gross margin should decline to the low 20% range in 2024 and beyond |
| And in some cases, the entities could have been custom-built or very out of date and then integration is a bit more of a challenge |
| For the year, we expect professional services revenue will be flat or will decline by a low single-digit rate compared to a year ago |
| Total non-GAAP operating expenses were $114.1 million, down 4% from $119.1 million in the year ago period |
| I still think that there's some macro disruption but it never rose to the level of a recession |
| There's a lot of flaws with that strategy |
| Long term, we expect professional services revenue to continue to decline as a percentage of total revenue |
| And I think that is, unfortunately, the typical fallback in the absence of data fabric |
| Third, our Q2 adjusted EBITDA loss will be bigger than Q1's adjusted EBITDA loss |
| And I suspect that what they have is not going to be fully featured the way what we've built and have had for years is |
| As previously noted, services revenue can be volatile from quarter-to-quarter and a few large projects can influence performance |
| But I wanted to ask, it looks like your total gross renewal rate ticked down slightly in 2023 by quarters, while your cloud subscription revenue retention rate ticked up |
| Adjusted EBITDA loss was $44.8 million, compared to $76 million loss in 2022 |
| And I think also just the idea of training at great length an algorithm that the CIO does not own is problematic for a lot of tech decision-makers |
| Adjusted EBITDA loss for the first quarter of 2024 is expected to be between $9 million and $5 million |
| And I just want to clarify that though that may have been a downtick, is still best in class |
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