Vision, Strategy

and Culture
Matt Calkins
Founder & CEO, Appian
 Growth &
Strong growth trajectory.Mix Shift (1)

Cloud Subscription Revenue ($MM)

129.2 Profit Margin

C A GR 88%
%
48 95.0
2Q 2021

67.4

Net Revenue Retention

40.2

121%
2Q 2021

2019 and 2020 revenue figures are presented in accordance with ASC 606. 2017 and 2018 revenue figures are presented in accordance with ASC 605.
Profit margin is Non-GAAP.
Our market today.
Core Software Categories

$22B Low-Code

$18B AI

$17B Intelligent Process Automation

$2B RPA

$1B Process Mining

$60B
Core software market estimates include: Low-code, Markets and Markets (2022); AI excluding “AI maker platforms”, Forrester (2021);
Intelligent Process Automation excluding RPA and Process Mining, IDC (2021); RPA, Markets and Markets (2022); Process Mining, Gartner (2021).
Low-code goes mainstream.
Low-code is ...

Low Code
Action means
B
High Speed
Action
A
faster to build
END
faster to modify
faster to execute
Low-code platform.

WORKFLOW

PROCESS
AUTOMATION
MINING
 +
A leader in process mining joins the Appian platform.
What is process mining?

Data Analysis

Activity Logs
Process Mining Model
Process mining model.
Workflow.
Process Mining Model Workflow
Low-code platform.

WORKFLOW

PROCESS
AUTOMATION
MINING
Our competition.
Why we win.

WORKFLOW

PROCESS
AUTOMATION
MINING

Unified platform
Customers like us best

Speed Open architecture

Winning across industries.
Financial Services Insurance Life Sciences

Healthcare US Federal Government Transportation

Telecom/Media Energy & Utilities Manufacturing/Other

Accelerators
Consolidating market.

WORKFLOW

PROCESS AUTOMATION
MINING
Scaling through partners.
Solutions built on the Appian platform.

Specialty Finance

Financial Services
Clause Automation
Change Management

Risk and Compliance -

Source Selection
Third Party

Awards Management Connected Servicing Insurance

Connected Claims
Requirements Management Connected Onboarding Healthcare

Government Financial Services Insurance

Partner Solutions
Appian Solutions
In summary.

WF
PM A

Market Unified Growth

demand platform accelerators
A leader in low-code.
Engineering Culture
and Innovation
Suvajit Gupta
EVP Engineering, Appian
Low-code helps organizations keep up with change.

Traditional Development Packaged applications Low-code Platforms

Perfect balance of
Completely flexible Quick to deploy
speed
-but- -but-
-and-
slow inflexible
open architecture
Appian apps are fast to build, open, and beautiful.
Acme
Bank
 Continuous innovation. • Intelligent Document Processing
• Dynamic offline
• Low-code data
• Government acquisition suite
2022

• Visual integrations
• Visual reports 2021 • Process mining
• Workflow • Financial services suite • Public portal
• Native mobile • Guided app design
• Modern UI 2020
• Decisions
• Low-code apps 2019
• High availability cloud
• Robotic process automation
2018 • Artificial Intelligence
• Cloud native
IPO • Workforce Safety solution
2017
• Drag and drop interfaces
• Containerization
• Intelligent Contact Center solution
Low-code platform.

WORKFLOW

PROCESS
AUTOMATION
MINING
More Low-code
Differentiators.
Differentiator #1: fast in 8 weeks.
Differentiator #2: powerful native mobile built easily.
Differentiator #3: access dispersed enterprise data quickly.
Differentiator #4: enterprise grade.
Differentiator #5: future proof.

No tech debt More devices More secure More extendable

Upgrade with platform Compatible on new Certified with newly Extend with
releases automatically. devices automatically. deployed security Appian solutions and
frameworks in Appian feature releases like RPA,
Cloud automatically. AI and process mining.
Synergistic Acquisitions.

Reliability Low-code Synergy

Enterprise grade security, Drag-and-drop, point- Deeply integrated with

scale, performance, uptime. and-click. the rest of Appian.
Unified platform.
Engineering is organized for scale.
Future teams

STRATEGY

PEOPLE

PROCESS

TECHNOLOGY
Our unique culture ships great software.

Hiring Values Retention Market driven

“We hire people for We nurture and promote We boast impressive We value our field,
their character, not generosity instead of employee tenures with customer, partner and
just their skills.” competitiveness. average single-digit market feedback and
annual attrition since IPO. can quickly prioritize
market demand.
A leader in low-code.
Go-To-Market Strategy

Denise Vu Broady
Chief Marketing Officer, Appian
Marketing Priorities

Elevate the Build quality Increase Market

messaging pipeline Awareness
New Brand

appian.com
Focus on Thought Leadership Content

Thought Leadership
focus with internal and
sponsored content

Dedicated Thought
Leadership team

+ Scaling with Appian led

Thought Leadership
and joint partner blogs
and co-branded content
Scaling With and Through Partners

DIAMOND TECHTANIUM

PARTNER LOGO
Growing Appian’s Community Experience

Programs
and Goals
Initiatives
Provide users and partners
Appian User channels to present their
Ecosystem Experience expertise

Community
AppMarket Help accelerate customer
Community Edition implementations

Academy Online
Examity Support the growing user
Forum and partner ecosystem
around Appian
Documentation
Appian Community Edition

• Free, unlimited-time, self-

service cloud environment
for developers
• Learning, Evaluation, and
limited production use with
path to upgrade
• 3x increase in Appian Community
sign-ups comparing July 2020 to
July 2021
Community Experience Goals

Accelerate the growth of Increase the ratio of Drive engagement and

our developer community certified developers create advocates
A leader in low-code.
Go-To-Market Strategy

Eric Cross
Chief Revenue Officer, Appian
GTM business update.

1. Market Dynamics

2. Customers

3. Sales Philosophy

4. Sales Model

5. Sales coverage

6. Solutions strategy

7. Investment Areas
Appian market dynamics.

Accelerating market Limited competition for the

Large TAM
adoption most complex use cases

Greater efficiencies with investments High net retention

Strategic Partners
in GTM strategy and processes of customers
Appian market dynamics.

Why we win:

• Completeness of offering.

• Confidence and experience to drive a

successful project or projects.

• Speed and time to value.

• Ability for customer to solve the most

and least complex automation
challenges with one vendor.
Innovate with Appian.
Financial Services Insurance Life Sciences

Healthcare US Federal Government Transportation

Telecom/Media Energy & Utilities Manufacturing/Other

Sales philosophy.

Focused on solving a customers Accomplished through our market leading technology,

most critical business challenges consulting services, and robust partner ecosystem

Automate complex back office and front Priority #1:

facing business/workflow processes that Create great customer outcomes
drive tangible business outcomes
Sales philosophy.
Sales engagement:
• Focus on our unique and differentiated
value that drives business outcomes.

• Supported by our low code promise

(Appian Guarantee) where appropriate.

• Work hand in hand with strategic partners to

influence and accelerate customer acquisition.

• Highlighting speed and time to value, reduced

project risk and the ability to scale from the
most complex to least complex use cases.
Sales methodology.

Experiencing a Typical/Ideal Strategic

TAM extending customer engagement partner
beyond the G2000 (Land and Expand) engagement

• Continued advancements • Starts with a highly visible, • GSI’s, ISV’s, Strategic and
in our platform. complex business problem. Boutique consultants.
• Evolving off the shelf • Accompanied by an Appian • Bring our AE’s and Partners
configurable solutions. Guarantee (MVP 8 weeks). together for joint selling rhythm.
• Democratizing Appian • Evolving into a second, third, • Strong focus on partner
skillsets via our fourth….. Project. enablement for delivery.
partner ecosystem.
• Leading to customer developing • Partners also sell branded
a COE around Appian. solutions built on Appian
(LIBOR, EUS remediation, KYC).
 Major Banking Land & Expand Example

Portugal Branches
S.Spain Operations New Spain Projects
(PEX), SCF (eNews), (Digital Endorsement,
SGO (Poland), Customer Mexico, Customer Portugal, Insurance, Risk Socio-
August Corporate Cost Customer Uruguay, Customer Colombia, environmental)
MSA signed (Kubik/Rubik) Corporate Center Customer BPI SGO Mexico

2017 2018 2019 2020 2021

First Projects Customer UK, Customer S. Operation Extension SCF – Cronos project Appian Kubernetes
Corporate Compliance NA – US, OpenBank, (PEX – Appian Europe) PEX for Branches Beta Tester RFP Global
SC&IB – SBGM, SGO, SGO – Comex, SBGM SGO Extension PEX for Portugal BPM Appian Win
SC&IB – GTB (Demand Management) Customer UK Mexico extensión – Licenses Extension S.
(Extension FCTP) AML, BEI OpenBank Portugal in Appian
S&CIB Extension Extension Spain & Europe 2021
Argentina
Sales coverage.

Understand the customer

Field teams in a
business, problems, Total ”sale” mindset
named account model
desired outcomes
Sales coverage.

Teams structured into

the following:

• Global Strategics: 1 to 3 accounts

• Enterprise: 5 to 7 accounts

• Mid Enterprise: 10 to 12 accounts

• Vertical Specialization

• Reseller focused teams:

manage 8 to 10 partners
Solutions focus: horizontal and vertical GTM.

Horizontal Vertical Partner Solutions

• Workforce safety • Insurance: • KYC

• CampusPass Connected Claims • Libor
• Financial services: • EUC remediation
Connected onboarding,
Servicing and KYC
• Government Acquisitions:
Requirements Mgmt, Award
Mgmt, Source Selection,
Clause Automation
Investment areas.

Global sales methodology rollout Strategic hires New markets

Vertical markets Talent leadership investments Licensing models

A leader in low-code.
Financial Overview

Mark Lynch
Chief Financial Officer, Appian
Financial highlights.
Strong Growth and Margin Profile
Cloud Subscription revenue CAGR of 48%; 90% NG-GM

Predictable Business Model

Subs. rev. – 69% vs. 51% @ IPO; 90%+ Renewal Rate

Solid Customer and Unit Economics

Growth across all customer cohorts and solid LTV/CAC

Investing For Sustainable Growth

Long-term ARR growth drivers and target model
 Growth &revenue
Solid cloud subscription Mix Shiftgrowth. (1)

y q tr.
r
th eve
gr ow
%
> =3 0
A GR
C
%
48

2017 2018 2019 2020 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21

2019 and 2020 revenue figures are presented in accordance with ASC 606. 2018, 2017, and 2016 revenue figures are presented in accordance with ASC 605.
 Growth & Mix Shift
Healthy ARR Growth – total and cloud subscription.
(1)

AGR G R
A
% +C +C
33 40
%

2017 2018 2019 2020 2017 2018 2019 2020

Note: Total ARR includes only Software term licenses (both cloud and on-premise) and is calculated only for contract items that are of a recurring nature (e.g., excludes one-time fees).
Healthy customer growth across all deal sizes.

4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21
Customers w/ARR >=$100K Customers w/ARR >=$250K Customers w/ARR >=$500K
Platform strategy drives compelling gross margins.
1

90.4% 90.0%

72.5%

64.5%

2017 2018 2019 2020 1H21

Non-GAAP Subscription Gross Margins Non-GAAP Total Gross Margins

1 - Refer to footnote 1 in the Appendix slide for further details on this calculation.
Increasing mix of subscriptions revenue.

IPO (Q2 2017) Q2 2021

Subscriptions Services
Subscriptions Services
51% 49%
69% 31%
Customer focused subscription software
revenue model.

100%
subscription
12-36mo

100% of software revenue Price by user, application, Typical contract length of

was subscription in 2020 or effort to build 12 to 36 months
Consistent cloud subscription net revenue
retention rate.
2

140%

121% 119% 119% 121%

120% 115% 115% 113% 115%

100%

80%

60%

40%

20%

0%
Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021

Renewal Rate Upsell Rate

2 - Refer to footnote 2 in the Appendix slide for further details on this calculation.
Healthy LTV:CAC unit economics.
3

>7x
3 - Refer to footnote 3 in the Appendix slide for further details on this calculation.
 Continued expansion across cohorts.
Total Growth
in ARR

87%

121%

160%

233%

209%

127%

346%

390%

458%

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Chart reflects annualized subscription revenue for the group of customers that became our customers in each respective cohort year. For instance, the 2011 cohort includes all customers whose contract start date was
between January 1, 2014 and December 31, 2014. Annualized subscription revenue is the total amount of daily subscription revenue for that applicable customer cohort in January of the following year multiplied by 365.
 12/01/16
01/01/17
02/01/17
03/01/17
04/01/17
05/01/17
06/01/17
07/01/17
08/01/17
09/01/17
10/01/17
11/01/17
12/01/17
01/01/18
02/01/18
03/01/18
04/01/18
05/01/18
06/01/18
Tot

07/01/18
a l

08/01/18
gro

09/01/18
wt

10/01/18
11/01/18
h: 4

12/01/18
01/01/19
50%
;

02/01/19
03/01/19
CAG

04/01/19
R:

05/01/19
06/01/19
41%

07/01/19
08/01/19
09/01/19
10/01/19
11/01/19
12/01/19
01/01/20
02/01/20
4 - Refer to footnote 4 in the Appendix slide for further details on this calculation.

03/01/20
04/01/20
05/01/20
06/01/20
07/01/20
08/01/20
09/01/20
10/01/20
11/01/20
12/01/20
01/01/21
02/01/21
03/01/21
04/01/21
05/01/21
Spending growth journey – top 25 customers.
4

06/01/21
 Spending growth journey – customer case studies.

Top 25 Bank Top 25 Pharmaceutical Top 25 Insurance Broker

x+ 0x 6x
y 40 ~1 by
wb b y w
gre re w gre
ng gg ding
di in n
en end Spe
ta l sp ta l sp
To To

3/1/2017
6/1/2017
9/1/2017

3/1/2018
6/1/2018
9/1/2018

3/1/2019
6/1/2019
9/1/2019

3/1/2020
6/1/2020
9/1/2020

3/1/2021
6/1/2021
12/1/2016

12/1/2017

12/1/2018

12/1/2019

12/1/2020

6/1/2019

8/1/2019

2/1/2020

4/1/2020

6/1/2020

8/1/2020

2/1/2021

4/1/2021

6/1/2021
2/1/2018
4/1/2018
6/1/2018
8/1/2018

2/1/2019
4/1/2019
6/1/2019
8/1/2019

2/1/2020
4/1/2020
6/1/2020
8/1/2020

2/1/2021
4/1/2021
6/1/2021
12/1/2017

10/1/2018
12/1/2018

10/1/2019
12/1/2019

10/1/2020
12/1/2020

10/1/2019

12/1/2019

10/1/2020

12/1/2020
Appian Low-Code Platform consolidated legacy Appian Low-Code Platform is used across several Appian Low-Code Platform centralized a multi-
systems and information into one case management business units. Appian supports new go-to-market party process to establish, monitor and process
solution. Appian also provided a complete view of initiatives, modernization of call centers, and claims. Appian enables real time visibility on key
their data from an intuitive and natively-mobile automates the processing of hundreds of thousands performance measures, reduced time to market,
interface of cases. and improved quality of solutions.
Targeting sustainable 30%+ cloud subscription growth.

Growing strategic partners

International expansion

Solutions

New customer growth

Platform expansion

Broad adoption of low-code

Rising demand for digital transformation

Target long-term model.
5

Target Model

2016 2020 @ IPO Updated

Gross Margin 62% 72% 75% 78% 80% 85%

S&M 41% 42% 34% 36% 38% 40%

R&D 17% 22% 14% 16% 15% 17%

G&A 13% 15% 7% 9% 7% 8%

Operating margin -9% -8% 20% 20%

5 - Refer to the Reconciliation of Long-Term Model slide for complete details on how these metrics were calculated for fiscal years 2016 and 2020.
Appendix
The following slide includes definitions of common metrics we utilize to evaluate the performance of our business.

1 – Non-GAAP Gross Margins: Non-GAAP gross margins are calculated excluding the impact of stock-based compensation.

2 – Net Revenue Retention Rate: We calculate retention over a set of customers who have been with us for at least one full year. To calculate our cloud
subscription revenue retention rate for a trailing 12-month period, we first establish the recurring cloud subscription revenue for the previous trailing 12-month
period. This effectively represents recurring dollars that we should expect in the current trailing 12-month period from the cohort of customers from the previous
trailing 12-month period without any expansion or contraction. We subsequently measure the recurring cloud subscription revenue in the current trailing 12-month
period from the cohort of customers from the previous trailing 12-month period. Cloud subscription revenue retention rate is then calculated by dividing the
aggregate recurring cloud subscription revenue in the current trailing 12-month period by the previous trailing 12-month period. This calculation includes the impact
on our revenue from customer non-renewals, pricing changes and growth in the number of users on our platform. Our cloud subscription revenue retention rate can
fluctuate from period to period due to large customer contracts in any given period.

3 – Lifetime Value of a Customer as Compared to the Cost of Acquiring that Customer (“LTV/CAC”): Our business model focuses on maximizing the
lifetime value of a customer as compared to the cost of acquiring that customer. This metric is a function of the duration of a customer’s deployment of Appian as
well as the price and number of subscriptions of Appian a customer purchases. We also incur significant customer acquisition costs, including expenses associated
with hiring new sales representatives, who generally take up to one year to become productive given the length of our sales cycle, and marketing costs, all of which,
except for sales commissions, are expensed as incurred. We calculate LTV/CAC as (1) the average gross margin multiplied by average cloud subscription revenue for
a given month divided by (2) the average percentage of monthly recurring revenue that did not renew in each month for the previous 12 months. We then divide
this calculated lifetime customer value by our customer acquisition costs, which is the total sales and marketing expense incurred during the corresponding month.
Note for fiscal years 2018 and prior, we utilized total subscription revenue to calculate lifetime customer value. Because upon adoption of ASC 606 we began to
primarily recognize revenue from our on-premises term license subscriptions upfront, we amended the LTV/CAC calculation by replacing subscriptions revenue with
cloud subscriptions revenue.

4 – Annualized Recurring Revenue (“ARR”): ARR is calculated by annualizing the contract value of an active software order or contract at a given point in time
based on the contract’s start and end dates. To annualize the value, a daily rate is calculated by dividing the contract value by the number of days in the contract’s
subscription term. The daily rate is then multiplied by 365 days. ARR is only calculated for software term licenses (i.e., cloud and on-premises) and only for contract
items that are of a recurring nature (i.e., excluding one-time fees).
Reconciliation of Target Long-Term Model
$ in thousands FY 2016 FY 2020

Reconciliation of Non-GAAP Gross Margins:

Revenue $ 132,923 $ 304,573
Cost of Revenue 50,123 88,766
Less: Stock Compensation Expense – Cost of Revenue — (2,420)
Non-GAAP Cost of Revenue 50,123 86,346
Non-GAAP Gross Margins 62% 72%

Reconciliation of Non-GAAP S&M Expense as a Percentage of Revenue:

Revenue $ 132,923 $ 304,573
Sales and Marketing Expense 54,137 130,316
Less: Stock Compensation Expense – Sales and Marketing — (2,821)
Non-GAAP Sales and Marketing Expense 54,137 127,495
Non-GAAP Sales and Marketing Expense as a Percentage of Revenue 41% 42%

Reconciliation of Non-GAAP R&D Expense as a Percentage of Revenue:

Revenue $ 132,923 $ 304,573
Research and Development Expense 22,994 70,241
Less: Stock Compensation Expense – Research and Development — (2,718)
Non-GAAP Research and Development Expense 22,994 67,523
Non-GAAP Research and Development Expense as a Percentage of Revenue 17% 22%

Reconciliation of Non-GAAP G&A Expense as a Percentage of Revenue:

Revenue $ 132,923 $ 304,573
General and Administrative Expense 17,039 53,152
Less: Stock Compensation Expense – General and Administrative — (7,320)
Non-GAAP General and Administrative Expense 17,039 45,832
Non-GAAP General and Administrative Expense as a Percentage of Revenue 13% 15%

Reconciliation of Non-GAAP Operating Margin:

Revenue $ 132,923 $ 304,573
Operating Loss (11,370) (37,902)
Less: Stock Compensation Expense – Operating Expense — (12,859)
Non-GAAP Operating Loss (11,370) (25,043)
Non-GAAP Operating Margin (9%) (8%)
A leader in low-code.