Appian Corp at William Blair Growth Stock Conference Transcript

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

Question: Jake Roberge - William Blair - Analyst : Myles, I guess first question for you, if you could just take a step back and give a high-level overview of what Appian does and some of the problems that it aims to solve for its customers.

Question: Jake Roberge - William Blair - Analyst : Yeah. That would be great. 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 07, 2023 / 5:40PM, APPN.OQ - Appian Corp at William Blair Growth Stock Conference

Question: Jake Roberge - William Blair - Analyst : Yeah. So when you think about the old way of developing software applications with manual development, how much faster does low-code automation make things in terms of developing these complex enterprise-grade applications? And are those two aspects complementary or do you think at one point in time, low-code is going to be more and more of the predominant way of developing applications?

Question: Jake Roberge - William Blair - Analyst : Yeah. So in terms of generative AI, because that's what everyone's talking about in software land these days. And one of the more compelling use cases that I think that I've heard on generative AI is just how much it increases the productivity of developers. So I'm curious how you think that flows into the low-code space because that's one of your main avenues, is how much you can increase the application development time. So just curious how you're thinking about the puts and takes around generative AI for Appian.

Question: Jake Roberge - William Blair - Analyst : Yeah. So Appian has been pretty vocal about this idea of private AI. So I guess first off, could you explain to us what the difference is between private AI and public AI. And then just as a follow-up to that, why did you choose the private AI model? Because if we think about public AI and just the vast amount of data that you can train it off of, I'm curious how you came about the process to select private AI being the best route to market for Appian. 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 07, 2023 / 5:40PM, APPN.OQ - Appian Corp at William Blair Growth Stock Conference

Question: Jake Roberge - William Blair - Analyst : Yeah, that's helpful. And then as CIO, how do you think about the product roadmap moving forward for generative AI? How do you more effectively integrated into a platform? And I'm curious, if we could bring in Sri kind of on the financial side of things, how is Appian thinking about the monetization angle for generative AI?

Question: Jake Roberge - William Blair - Analyst : Okay, helpful. And so you mentioned some of those other products. So Appian's kind of built -- it's built a pretty comprehensive platform with low-code application development. You have RPA, you have process mining where it's really this holistic process optimization suite for customers. I'm curious, do customers understand the value prop to combining all of those technologies into one platform? Or are they still adopting these solutions more a la carte?

Question: Jake Roberge - William Blair - Analyst : Yeah. And I guess, Myles, on the on the product side, if we can dig more into process mining. So you acquire those capabilities with your acquisition of Lana Labs. I mean, how does that product changed over the last few years? Has that been under the Appian umbrella and you're really starting to bring it more to market?

Question: Jake Roberge - William Blair - Analyst : And, Sri, I'm curious thinking about those different products with low-code process mining, RPA. Had any of those been more or less prioritized by the macro? Or even just thinking about the recent buzz around generative AI. Do you think that generative AI can be more effectively integrated into any of those products?

Question: Jake Roberge - William Blair - Analyst : Taking a step back and thinking more about the platform strategy and product roadmap. We've talked a lot about kind of productization on top of the Appian platform, and you've seen some pretty impressive growth with some of the new suites you've rolled out with government acquisition management, the stuff that you're doing with KYC and financial services. I'm curious how those products have been selling amid this macro and kind of what the product roadmap is from here. And then as a follow-up to that, what are you seeing from partners in terms of actually building products on top of Appian's platform?

Question: Jake Roberge - William Blair - Analyst : And then thinking more longer term, as you build more productized solutions, as partners build more productized solutions and the current ones gain more steam, is there a day when productized solutions could be the majority of revenue for Appian?

Question: Jake Roberge - William Blair - Analyst : Yeah, that makes sense. And then just thinking about the macro environment, it's obviously gotten a bit tougher out there. How would you assess Appian's ability to execute this year? And what opportunities do you see with the business as you move into the back half of the year? 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 07, 2023 / 5:40PM, APPN.OQ - Appian Corp at William Blair Growth Stock Conference

Question: Jake Roberge - William Blair - Analyst : Yeah. And then Appian is actually still hiring right now and you're making some investments in the go-to-market motion. How are you thinking about the decision to potentially keep investing on that side while preserving margins? I'm just curious how you're thinking about the balance between growth and profitability as we move forward.

Question: Jake Roberge - William Blair - Analyst : Yeah. Myles, I'm curious on your standpoint on the product side and still leaning into certain areas. Which areas are you most excited about? Is it process mining and Process HQ? Is it productization on top of the platform? I'm curious where you are arguing with Sri and Mark and some of the people for some of these incremental budget dollars to really dive into the platform.

Question: Jake Roberge - William Blair - Analyst : Yeah. You mentioned shortening sales cycles with these productized solutions. Obviously, Appian's focus on enterprise customers and various things have led to longer sales cycles. What are the fruit that you're bearing on the shortening sales cycles with these productized solutions?

Question: Jake Roberge - William Blair - Analyst : Yeah. And then at your Investor Day earlier this year, you laid out a target to breakeven on an EBITDA basis by the end of 2024. I'm curious which areas do you see the biggest opportunities to find more efficiency in the model and really drive that leverage story as we move forward? And if you could just touch on where you're at today and where you get to by then.

Question: Jake Roberge - William Blair - Analyst : Yeah. And then I'll let either of you take a crack at this one. But last year, Appian was in the news. They won a $2 billion jury verdict from its largest competitor, Pegasystems. Could you walk us through kind of how that case came to be? Where we're at today in terms of the appeals process and just what's going on? 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 07, 2023 / 5:40PM, APPN.OQ - Appian Corp at William Blair Growth Stock Conference

Question: Jake Roberge - William Blair - Analyst : Great. And then thinking outside of the case and the $2 billion and everything that's going on there. But thinking more specifically in terms of the right here and right now and as it pertains to the actual competitive environment in new deals that are coming to market, has Appian seen any competitive benefits there as a result of those types of conversations coming up with customers with this initial jury verdict?

Question: Jake Roberge - William Blair - Analyst : Yeah. And then thinking outside of Pega, so obviously, Pega has been your -- historically your biggest competitor. But we've heard some other of the large software providers enter into the low-code space, which obviously means it's an attractive market. There's going to be multiple vendors. But I'm curious how the competitive ecosystem has evolved over the last few years as we see the ServiceNows of the world enter into the space.

Question: Jake Roberge - William Blair - Analyst : And then maybe shifting back over to you. One of the things we hear is just about Appian's kind of competitive differentiation, especially recently has been the release of data fabric and how that's been resonating with customers, especially after Appian World. Could you explain to us what data fabric is? And why it's different than what a lot of your other competitors can do? 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 07, 2023 / 5:40PM, APPN.OQ - Appian Corp at William Blair Growth Stock Conference

Question: Jake Roberge - William Blair - Analyst : That's good to hear. I'm curious, as we -- you've mentioned -- you both mentioned partners quite a bit in this conversation and what they're doing

Question: Jake Roberge - William Blair - Analyst : Yes.

Question: Jake Roberge - William Blair - Analyst : Yeah. And you talked about how professional services is much more expensive, do you want to do it for Appian? The dynamic, we've talked about a decent amount, with Matt mentioned this a few times on the public calls is just Appian has 98% to 99% gross retention. You're seeing usage spike quite a bit where customers are getting more and more out of their products. I'm curious how you can use pricing as a mechanism for growth as we move forward, just given how much value and how much usage growth you're seeing with those products and how sticky your products are when they land with customers.

Question: Jake Roberge - William Blair - Analyst : And then you've talked about this for a while now, a sustainable 30%-plus growth rate. Obviously, macro dependent on some different puts and takes around that. What's kind of the breakdown there between new and existing logos? And how our partners really incrementally helping you land a lot of those new logos?

Question: Jake Roberge - William Blair - Analyst : Okay. Helpful. And then I know we're coming up on time soon. So, Myles, I am curious if we shift back to you, and thinking you've been at Appian for quite a while now. I'm curious what keeps you staying at Appian and what excites you most of Appian as we head forward into the future?

Question: Jake Roberge - William Blair - Analyst : Yeah. And about those exciting opportunities, what are you more excited about, the next wave of generative AI, the next wave of productized solutions, going more into this Process HQ and just holistic process optimization. I'm curious what excites you most about those different opportunities.

Question: Jake Roberge - William Blair - Analyst : Well, sounds good. Well, thanks, Myles, appreciate you coming. Sri, thanks for coming out.

Question: Jake Roberge - William Blair - Analyst : Appreciate all the attendees in the room.