Appian Corp Q4 2024 Earnings Call Transcript

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

Question: Sanjit Singh - Morgan Stanley - Analyst : Yeah, thanks for taking the questions, and congrats on a strong end to 2024. On the Q4 performance, there did seem to be a lot of strength in sort of the on-premise business. You called out strength in the public sector vertical, specifically, which sort of begs the question just given all the uncertainty with DOGE and US Federal spending, what sort of the underlying assumption in terms of the guidance about public sector overall, but US Federal going to next year? How do you feel about Appian's positioning, in an uncertain US Federal budget environment?

Question: Sanjit Singh - Morgan Stanley - Analyst : Great. And then just to follow up, Matt, on some of the case studies that you highlighted in your broader, agent strategy. As we look into 2025, from a product road map perspective, what can we expect in terms of more skills you announced the skills package in the last couple of years, but broadly on the agent strategy, what can we expect the customer base to be seeing from innovation standpoint on the on the agent front?

Question: Steve Enders - Citi - Analyst : Okay great thanks for taking the questions this morning and Mark, good to hear you back on the back on the call here. I guess I want to start on the AI point and I guess follow up on the prior question, but I guess how do you kind of see this dynamic playing out of customers I guess kind of understanding, the app being approach to AI and understanding, kind of embedding this, embedding the aging experience into the process pipeline versus. I guess other approaches that are that are out there in the market.

Question: Steve Enders - Citi - Analyst : Okay, I guess maybe that dovetails into in the next question just on, the changes in the go to market that have, taken place over the past year or so and the new, CRO coming in. I guess how are you kind of feeling about, productivity rates from the changes that have been made and how are you kind of thinking about, further evolution of the go to market moving forward.

Question: Steve Enders - Citi - Analyst : That's great thanks for taking the questions.

Question: Derek Wood - TD Cowan - Analyst : Great, thank you, Matt, I guess my first question when it comes to data fabric and tapping into various data sources to bring more intelligence into the Appian platform, can you talk about what the common data sources customers are looking to get access to and what vendors or systems you're working closely with when it comes to building connectors and APIs and trying to bring more different data sources into the Appian platform.

Question: Derek Wood - TD Cowan - Analyst : Got it thank you. Maybe one for Mark just hoping to get a little more color on demand trends across core verticals, financial services, government, life sciences, how the quarter went, how you're feeling about pipelines and even underneath, some of those verticals, areas like insurance and pharma, I think our newer focus is just checking in on tracks in there as well. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 19, 2025 / 1:30PM, APPN.OQ - Q4 2024 Appian Corp Earnings Call

Question: Derek Wood - TD Cowan - Analyst : Okay, thank you.

Question: Raimo Lenschow - Barclays - Analyst : Hey, thank you. Congrats from you as well. Great you for two questions, one for Matt, one for Mark. For me Matt, if you think about the AI and you're offering, I saw your presentation was really kind of thorough and give us a good idea, but the question I is like how do you think about pricing. Your agents and how pricing evolving around AI with these agents? Is it kind of outcome based? Is it, I don't think it's perceived, etc. You think about your talk about your thinking. And then one for Mark, your NRR on cloud, take down a touch again. I know it's a lagging indicator. When you think that number settles down or whether anything worth anything in Q4 that might have that number. Thank you.

Question: Raimo Lenschow - Barclays - Analyst : Yes, okay.

Question: Nick Altmann - Scotiabank - Analyst : Awesome. Thank you. Matt, you mentioned half of net new customers bought in above the base tier for the new tier pricing structure and so can you maybe just talk about the installed base and how those customers are resonating with the the new tiered pricing structure and is there any way to think about what percentage of the installed base is on the new tiered pricing structure today and where that could head in 2025?

Question: Nick Altmann - Scotiabank - Analyst : Okay great and then just going back to Steve's question around the go to market, but can you just maybe talk about the messaging to the go to market function coming out of sales kickoff? Are there any new incentives or or tweaks in place and, this year versus 2024 that you you you'd be willing to share?

Question: Nick Altmann - Scotiabank - Analyst : Great. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 19, 2025 / 1:30PM, APPN.OQ - Q4 2024 Appian Corp Earnings Call

Question: Devin Au - KeyBank Capital Markets - Analyst : Great. Thanks for taking my question. Maybe just one for me. I kind of wanted to get an update on solutions, particularly around the GAM suite. I mean, you mentioned you saw particular strength from Federal and 4Q. Curious how the adoption of GAM suite has been trending, but also kind of what are your expectations around contributions from that in '25, seems like that product would be really well positioned under increasing efficiency focus from the federal government. Thank you.