Appian’s second quarter results were positively received by the market, reflecting a combination of robust sales execution and continued expansion in high-value enterprise deals. Management credited the company’s progress to a deliberate upmarket strategy and effective use of artificial intelligence to enhance its value proposition. CEO Matthew Calkins highlighted that AI not only contributed to higher deal values—with a 25% price upcharge—but also opened doors to new industries and use cases. The company’s sales productivity reached an eighth straight quarterly high, and public sector performance outpaced global trends, benefiting from government efficiency initiatives.
Is now the time to buy APPN? Find out in our full research report (it’s free).
Appian (APPN) Q2 CY2025 Highlights:
- Revenue: $170.6 million vs analyst estimates of $160 million (16.5% year-on-year growth, 6.7% beat)
- Adjusted EPS: $0 vs analyst estimates of -$0.13 (significant beat)
- Adjusted Operating Income: $5.61 million vs analyst estimates of -$5.90 million (3.3% margin, significant beat)
- The company lifted its revenue guidance for the full year to $699 million at the midpoint from $684 million, a 2.2% increase
- Management raised its full-year Adjusted EPS guidance to $0.32 at the midpoint, a 45.5% increase
- EBITDA guidance for the full year is $52 million at the midpoint, above analyst estimates of $43.62 million
- Operating Margin: -6.4%, up from -26.8% in the same quarter last year
- Net Revenue Retention Rate: 111%, down from 112% in the previous quarter
- Billings: $183.8 million at quarter end, up 28.4% year on year
- Market Capitalization: $2.20 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Appian’s Q2 Earnings Call
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Raimo Lenschow (Barclays) asked about the pace and complexity of AI-driven application modernization. CEO Matthew Calkins explained that while AI is transforming the market, Appian’s platform advantages in security and scalability are not easily replicated by generic AI tools.
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Keith Weiss (Morgan Stanley) questioned Appian’s competitive moat as generative AI becomes more capable. Calkins argued that Appian’s built-in features, like high availability and data integration, provide differentiation beyond what AI or smaller competitors can offer.
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Steven Lester Enders (Citi) inquired about the impact of Appian AI on the sales pipeline and customer conversations. Calkins responded that AI is increasingly central to both the value proposition and pipeline growth, leading to higher deal sizes and broader industry relevance.
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Cole Erskine (TD Cowen) asked about federal sector pipeline dynamics and the impact of evolving government procurement trends. Calkins noted ongoing structural changes in federal buying behavior that favor direct engagement with Appian, enhancing the company’s market position.
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Devin Au (KeyBanc Capital Markets) requested more detail on recent leadership hires in EMEA and their expected impact. Calkins said these appointments are part of a broader strategy to improve sales alignment and execution, not a sudden shift in approach.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will monitor (1) the pace at which customers transition to AI-enabled modernization projects, (2) progress in Appian’s shift toward value-based and consumption pricing, and (3) continued improvement in sales productivity and operating margins. Additional attention will be paid to new leadership’s impact on EMEA execution and the durability of public sector momentum.
Appian currently trades at $29.83, up from $26.93 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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