Appian Corp at TD Cowen Technology, Media & Telecom Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Derrick Wood - TD Cowen - Analyst : So we were at your conference recently, and just would kind of love to hear the high-level takeaways on what the messaging was and what the new product announcements you'd highlight.

Question: Derrick Wood - TD Cowen - Analyst : As we found out. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 01, 2023 / 12:30PM, APPN.OQ - Appian Corp at TD Cowen Technology, Media & Telecom Conference

Question: Derrick Wood - TD Cowen - Analyst : Yeah, I mean -- so I thought the message at the conference was a little bit more around process automation than low-code.

Question: Derrick Wood - TD Cowen - Analyst : I know you guys have always done both. But there is a little bit different messaging. Is that -- was that intentional and why --?

Question: Derrick Wood - TD Cowen - Analyst : Right. You mentioned data fabric. So what -- that's somewhat of a new semantic layer in the platform. What does that help?

Question: Derrick Wood - TD Cowen - Analyst : Got it. What -- when was that launched?

Question: Derrick Wood - TD Cowen - Analyst : Okay. So every new customer since then -- almost every new customer since then --

Question: Derrick Wood - TD Cowen - Analyst : Okay. So going back to AI, I mean, how should we think about what exactly you're doing in the platform and how you're going to monetize? Like are you going to allow -- are you going to enable developers to go build large language models in your platform? Or large language models will probably get trained somewhere else, and then you're going to -- you're going to want to build applications that could take advantage of that, and API into those LLMs?

Question: Derrick Wood - TD Cowen - Analyst : Yeah. Natural language query capability?

Question: Derrick Wood - TD Cowen - Analyst : What product?

Question: Derrick Wood - TD Cowen - Analyst : Now we were talking earlier about the -- yeah, I mean, there's a lot that needs to be done in the enterprise where around governance and understanding these models and a lot of policy controls and all those things. What's your sense of kind of -- there's a lot of hype in the market, but like when does this actually -- when do real investments get put to work in the enterprise in like production kind of manner? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 01, 2023 / 12:30PM, APPN.OQ - Appian Corp at TD Cowen Technology, Media & Telecom Conference

Question: Derrick Wood - TD Cowen - Analyst : What else you have down the pike in terms of your product? Process HQ is something that's coming out soon.

Question: Derrick Wood - TD Cowen - Analyst : Another big theme that's been going on is vendor consolidation. And in the world of automation, it seems like there's a lot of point tools around RPA and integration and workflow and process mining, and there's probably a couple of others. But are we at a point where that's starting? I know your guys' vision is that a lot will converge on the more single platforms. But do you see that -- do you see much evidence of like consolidation and point tools just getting displaced or --?

Question: Derrick Wood - TD Cowen - Analyst : Maybe share a little bit on how you guys compete. I think there are larger platforms out there that share a similar view and have acquired and built things into one platform. You're in good company with the likes of Salesforce and ServiceNow and Microsoft. But how do you guys stick out and differentiate from those kinds of players? I know that they may not be your -- Pegasystems is maybe your kind of top competitor, but those are big platform vendors that share similar visions.

Question: Derrick Wood - TD Cowen - Analyst : Mission critical.

Question: Derrick Wood - TD Cowen - Analyst : Right. How about the macro automation? What would you say where it falls in terms of priority? How have you guys -- what are you seeing out there in terms of customer behavior?

Question: Derrick Wood - TD Cowen - Analyst : Yeah.

Question: Derrick Wood - TD Cowen - Analyst : Yeah. And what's driven such good strength for you guys at government? I know you've built some really good applications that just keep having this flywheel effect of adoption. Is that it or -- and I mean, partly what you guys have delivered to that vertical, that is partly because they're still spending a lot of money in IT and their budgets are healthy.

Question: Derrick Wood - TD Cowen - Analyst : State and local is kind of a newer effort for you?

Question: Derrick Wood - TD Cowen - Analyst : Yeah, okay. How are you managing costs relative to the slowdown and growth of the macro? And how are you still investing back and ensuring that you've got growth capacity? I think you've done some minor headcount cuts, but you've still talked about having some real good growth in sales capacity.

Question: Derrick Wood - TD Cowen - Analyst : Give us a little bit more flavor on those dynamics.

Question: Derrick Wood - TD Cowen - Analyst : Yeah. I think you made reference to the -- a target to trying to increase the pipeline, 2x. I don't know what that timeframe was. But how do you do that?

Question: Derrick Wood - TD Cowen - Analyst : Any flavor on how much -- what kind of growth in productive sales capacity you have?

Question: Derrick Wood - TD Cowen - Analyst :

Question: Derrick Wood - TD Cowen - Analyst : See if there's any questions out there. So what was that 2x pipeline target? Was that -- am I right on that?

Question: Derrick Wood - TD Cowen - Analyst : You had a dynamic last quarter where I think there's a bit higher cloud mix. And is that -- can you double-click on that? And is that a trend that's going to happen? And what does that mean for the model, medium term?

Question: Derrick Wood - TD Cowen - Analyst : On renewal?

Question: Derrick Wood - TD Cowen - Analyst : Yeah.

Question: Derrick Wood - TD Cowen - Analyst : Yeah. And just in the last couple of minutes, can we just talk a little bit more about the model? You guys seem to have a much bigger push to get to breakeven and beyond than you've had before. How -- remind us that timeframe and what your longer-term targets are?

Question: Derrick Wood - TD Cowen - Analyst : For the full year?

Question: Derrick Wood - TD Cowen - Analyst : And 2024 is at least one quarter, you're going to get to breakeven?

Question: Derrick Wood - TD Cowen - Analyst : And any change in professional services kind of mix, that gradually goes down as a percentage over time, but nothing too acute?

Question: Derrick Wood - TD Cowen - Analyst : Anything to us on the Pega outcome events to look for?

Question: Derrick Wood - TD Cowen - Analyst : All right. We're out of time. Thank you, gentlemen.