−Removed: Appian Corporation (together with its subsidiaries, "Appian," the "Company," "we," "us," or "our") provides a low-code automation platform that accelerates the creation of high-impact business applications and workflows, enabling our customers to automate the most important aspects of their business.
+Added: Appian Corporation (together with its subsidiaries, “Appian,” “the Company,” “we,” or “our”) provides a low-code platform that accelerates the creation of high-impact business applications and workflows, enabling our customers to automate the most important aspects of their business.
Global organizations use our applications to improve customer experience, achieve operational excellence, and simplify global risk management and compliance.
−Removed: With our platform, organizations can rapidly and easily design, build, and implement powerful, enterprise-grade custom applications through our intuitive, visual interface with little or no coding required.
−Removed: Our customers have used applications built on our platform to launch new business lines, automate vital employee workflows, manage complex trading platforms, accelerate drug development, and build global procurement systems.
+Added: The Appian Low-Code Platform unifies the key capabilities needed by enterprises to build mission-critical business applications:
+Added: process mining, workflow, and automation.
+Added: With our platform, organizations can rapidly and easily discover, design, and automate powerful, enterprise-grade workflows and custom applications through our intuitive, visual interface with little or no coding required.
+Added: Our customers have used workflows and applications built on our platform to launch new business lines, automate vital employee workflows, manage complex trading platforms, accelerate drug development, and build global procurement systems.
With our platform, decision makers can reimagine their products, services, processes, and customer interactions by removing much of the complexity and many of the challenges associated with traditional approaches to software development.
Organizations across all industries are digitally transforming by leveraging software to automate and optimize mission critical operations, enhance customer experiences, and drive competitive differentiation.
−Removed: Historically, organizations have principally relied on packaged software and custom software solutions to operationalize and automate their businesses.
−Removed: Packaged software often fails to address unusual use cases or to enable differentiation and requires organizations to adapt their individual processes, needs, and systems of record to standardized frameworks.
−Removed: While traditional custom software solutions can be differentiated and tailored to meet strategic objectives, development requires a long, iterative, and cumbersome process, as well as costly integration, and relies on scarce developer talent.
+Added: Historically, organizations have principally relied on off-the-shelf packaged software and custom software solutions to operationalize and automate their businesses.
+Added: Packaged software often fails to address unique use cases or to enable differentiation.
+Added: It also requires organizations to adapt their business (processes, systems of record, etc.) to the software package, as opposed to adapting the software to their unique business needs.
+Added: While traditional custom software solutions can be differentiated and tailored to meet strategic objectives, development requires a long, iterative, and cumbersome process, as well as costly integration that relies on scarce developer talent.
We enable organizations to differentiate themselves from their competition through software-enabled digital transformation.
−Removed: Our low-code automation platform employs an intuitive, visual interface and pre-built development modules that reduce the time required to build powerful and unique applications.
−Removed: Our platform automates the creation of forms, workflows, data structures, reports, and other software elements that would otherwise need to be manually coded.
+Added: Our low-code platform employs an intuitive, visual interface and pre-built development modules that reduce the time required to build powerful and unique applications.
+Added: Our platform automates the creation of forms, workflows, data structures, reports, user interfaces, and other software elements that would otherwise need to be manually coded.
This functionality greatly reduces the iterative development process, allowing for real-time optimization and ultimately shortening the time it takes to design, build, and deploy applications.
−Removed: Our customers take advantage of our complete automation capabilities, including our industry-leading workflow engine, rules engine, native Robotic Process Automation, or RPA, capabilities, leading case management capabilities, and integrated Google-based artificial intelligence, or AI.
−Removed: Our customers can leverage these technologies to apply the right automation approach for each specific use case.
−Removed: Further, our patented Self-Assembling Interface Layer, or SAIL, technology ensures applications developed on our platform can be immediately and natively deployed across a full range of mobile and desktop devices with no additional customization, including desktop web browsers, tablets, and mobile phones.
−Removed: Updates to applications developed with SAIL disseminate automatically across device types to ensure all users benefit from the most up-to-date functionality.
−Removed: At the same time, we unify enterprise data in a single searchable environment, providing organizations with a comprehensive view of customer, product, organizational asset, and other critical information.
−Removed: Rich reporting dashboards capture detailed performance metrics, providing valuable business intelligence and analytics that enable business process optimization.
−Removed: Our platform can be deployed in the cloud or on-premises, with organizations able to access the same functionality and data sources in all cases.
+Added: Our customers take advantage of our process mining, industry-leading workflow engine, dynamic case management, and complete automation capabilities, which include our rules engine, native Robotic Process Automation, or RPA, native Intelligent Document Processing, or IDP, artificial intelligence, or AI, and Smart Services.
+Added: Our customers can leverage these technologies to apply the right automation approach for their specific use case.
+Added: We believe our unified low-code platform is a differentiator in the marketplace.
+Added: We strive to deeply integrate our capabilities so that they are all interoperable and low-code.
+Added: The result is a unified platform that makes it easier and faster to address complex use cases, particularly those that involve multiple departments within an organization.
+Added: Process mining enables customers to discover processes and identify those that can be optimized.
+Added: We expect this to expand customers’ use of our platform as they look to build, automate, and optimize such processes.
+Added: We expect this new capability will allow us to upsell existing customers and accelerate deals.
Our go-to-market strategy consists of both direct sales and sales through strategic partners.
−Removed: We sell our software almost exclusively through subscriptions and intend to grow our revenue both by adding new customers and increasing the number of users at existing customers that use our applications or increase the number of applications developed on our platform.
+Added: We sell our software almost exclusively through subscriptions and intend to grow our revenue both by adding new customers and increasing the number of users at existing customers that use our applications or increasing the number of applications developed on our platform.
Strategic partners work with organizations undergoing digital transformations projects and, when these partners recognize an opportunity for our platform, they often introduce us to potential customers.
Many of our customers begin by building a single application and grow to build dozens of applications on our platform, which implicitly reduces the per-user cost of each application.
−Removed: Generally, the development of new applications results in the expansion of our user base within an organization and a corresponding increase in revenue to us because we charge subscription fees on a per-user basis and, to a lesser degree, non-user based single application licenses.
−Removed: Every additional application an organization creates on our platform increases the value of our platform for that organization because it further integrates people, processes, and data across the organization and facilitates knowledge sharing.
−Removed: At the same time, our industry-leading
−Removed: Customer Success organization enables our customers to more easily build and deploy applications on our platform to achieve their digital transformation goals.
+Added: Generally, the development of new applications results in the expansion of our user base within an organization and a corresponding increase in revenue to us because we charge subscription fees on a per-user basis or through non-user based single application licenses.
+Added: Every additional application an organization
+Added: creates on our platform increases the value of our platform for that organization because it further integrates people, processes, and data across the organization and facilitates knowledge sharing.
+Added: At the same time, our industry-leading Customer Success organization enables our customers to more easily build and deploy applications on our platform to achieve their digital transformation goals.
We have experienced strong revenue growth, with revenue of $369.3 million, $304.6 million, and $260.4 million in 2021, 2020, and 2019, respectively.
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SaaS subscription revenue, which is also referred to as cloud subscription revenue, was $179.4 million, $129.2 million, and $95.0 million in 2021, 2020, and 2019, respectively, representing year-over-year growth rates of 39% from 2020 to 2021 and 36% from 2019 to 2020.
−Removed: Our professional services revenue, generated by our Customer Success organization, was $105.9 million, $109.1 million, and $100.7 million in 2020, 2019, and 2018, respectively.
−Removed: Over time, as the need for professional services associated with user deployments decreases and the number of end users increases, we expect subscriptions revenue as a percentage of total revenue will continue to increase.
+Added: Our professional services revenue, which is generated by our Customer Success organization, was $105.5 million, $105.9 million, and $109.1 million in 2021, 2020, and 2019, respectively.
+Added: Over time, as the need for implementation services associated with user deployments decreases and the number of end users increases, we expect subscriptions revenue as a percentage of total revenue will continue to increase.
Further, as the usage of partners expands, we expect the proportion of our total revenue from subscriptions to increase over time.
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We also used cash in operations of $53.9 million, $7.6 million, and $8.9 million in 2021, 2020, and 2019, respectively.
+Added: Recent Developments
Beginning in late 2019 and continuing into 2022, the outbreak of the novel coronavirus disease, or COVID-19, has resulted in the declaration of a global pandemic and adversely affected economic activity across virtually all sectors and industries on a local, national, and global scale.
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We have responded quickly to adopt a virtual corporate strategy consisting of enabling most of our employees to work productively from home while continuing to guard the health and safety of our teams, support our customers, and mitigate risk.
−Removed: We are focused on ensuring continuity for our customers.
−Removed: To the extent possible, we are conducting business as usual, with necessary or advisable modifications to employee travel, employee work locations, and marketing events.
+Added: In the third quarter of 2021, we announced an option allowing for our employees to return to offices in select jurisdictions if they elect to do so.
+Added: We remain focused on ensuring continuity for our customers, and we continue to conduct business as usual, with necessary or advisable modifications to employee travel, employee work locations, and marketing events.
Refer to Part II, Item 7, “Management's Discussion and Analysis of Financial Condition and Results of Operations” of this Annual Report on Form 10-K for further discussion regarding the impact of the COVID-19 pandemic on our fiscal year 2021 financial results.
Through December 31, 2021, we have not seen a meaningful adverse impact to our financial position, results of operations, and cash flows and liquidity as a result of COVID-19.
−Removed: While the verticals from which we have historically generated the majority of our revenue have been less impacted by COVID-19 to date, there may be impacts to our financial condition and results of operations in 2021 as a result of reduced demand for our products and services and longer sales cycles.
+Added: While the verticals from which we have historically generated the majority of our revenue have been less impacted by COVID-19 to date, there may be impacts to our financial condition and results of operations in 2022 and beyond as a result of reduced demand for our products and services and longer sales cycles.
The ultimate impact of COVID-19 on our business is not estimable at this time and will be largely dependent upon a number of factors outside of our control including the extent and duration of the outbreak as well as any mitigating actions which may be undertaken by global governments and the general public.
−Removed: Industry and Market Data
−Removed: Information contained in this Annual Report on Form 10-K concerning our industry and the market in which we operate, including our general expectations and market position, market opportunity, and market size is based on information from various sources, including independent industry publications by Forrester Research Inc., or Forrester, Gartner, Inc., or Gartner, Prescient & Strategic Intelligence, and International Data Corporation, or IDC.
−Removed: In presenting this information, we have also made assumptions based on such data and other similar sources, and based on our knowledge of, and our experience to date in, the markets for our services.
−Removed: This information involves a number of assumptions and limitations, and we caution readers not to give undue weight to such estimates.
−Removed: Although we have not independently verified the accuracy or completeness of any third-party information, we believe the market position, market opportunity, and market size information included in this Annual Report on Form 10-K is reliable.
−Removed: The industry in which we operate is subject to a high degree of uncertainty and risk due to a
−Removed: variety of factors, including those described in the “Risk Factors” section.
−Removed: These and other factors could cause results to differ materially from those expressed in the estimates made by the independent parties and by us.
−Removed: The Gartner content described herein, or the Gartner Content, represent(s) research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, and are not representations of fact.
−Removed: The Gartner Content speaks as of its original publication date and not as of the date of this Annual Report on Form 10-K, and the opinions expressed in the Gartner Content are subject to change without notice.
−Removed: Gartner does not endorse any vendor, product or service depicted in its research publications and does not advise technology users to select only those vendors with the highest ratings or other designation.
−Removed: Gartner research publications consist of the opinions of Gartner’s Research & Advisory organization and should not be construed as statements of fact.
−Removed: Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
Benefits of Our Platform
−Removed: We enable organizations to differentiate themselves from their competition through software-enabled digital transformation.
−Removed: With our platform, organizations can rapidly and easily design, build, and implement powerful, enterprise-grade custom applications and workflows through our intuitive, visual interface, with little or no coding required.
−Removed: Our patented SAIL technology ensures applications developed on our platform can be immediately and natively deployed across a full range of mobile and desktop devices with no additional customization, including desktop web browsers, tablets, and mobile phones.
−Removed: We also enable organizations to easily modify and enhance applications and automatically disseminate these updates across device types to ensure all users benefit from the most up-to-date functionality.
+Added: We enable organizations to stay ahead of change.
+Added: We accelerate customers’ businesses by discovering, designing, and automating the workflows and processes to help them most differentiate their products and services from their competition.
+Added: The combination of workflow, automation, and process mining in a unified platform enables us to take customers from insight to action quickly and efficiently.
+Added: Our platform has always delivered speed and agility, and our words are backed by our commitments.
+Added: The Appian Guarantee delivers a customer’s first application project in 8 weeks with a flat service fee, and the
+Added: Low-code Promise states customers can build apps at least 10x faster, reduce costs by 50%, and gain superior functionality as compared to traditional development.
+Added: The result empowers organizations to stay ahead of change, outpace their competition, and drive meaningful digital transformation.
Key benefits of our platform include:
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Our platform employs a low-code, intuitive, visual interface and pre-built development modules that reduce the time required to build powerful and unique applications.
−Removed: Our platform automates the creation of forms, workflows, data structures, reports, and other software elements that would otherwise need to be manually coded or configured.
+Added: Our platform automates the creation of forms, workflows, data structures, reports, user interfaces, and other software elements that would otherwise need to be manually coded or configured.
This functionality greatly reduces the iterative development process, allowing for real-time optimization and ultimately shortening the time it takes to design, build, and deploy applications.
2 unchanged sentences
Our patented SAIL technology allows developers to build an application once and use it everywhere with the consistency of experience and optimal performance levels that users expect.
−Removed: Applications developed on our platform can be immediately and natively deployed across a full range of mobile and desktop devices with no additional customization, including desktop web browsers, tablets, and mobile phones.
−Removed: • Delivering measurable results using automation.
−Removed: Our low-code automation allows companies to combine people, existing systems, data, process mining, RPA, and AI in a single workflow to quickly deliver a meaningful business impact.
−Removed: Our RPA automates the routine tasks across legacy and modern systems, increasing efficiency and providing even more value to the customer.
−Removed: AI boosts business outcomes by making the applications intelligent, and our platform allows companies to design, execute, manage, and optimize workflows.
+Added: Applications developed on our platform can be immediately and natively deployed across a full range of mobile and desktop devices with no additional cost or customization, including desktop web browsers, tablets, and mobile phones.
+Added: We also enable organizations to easily modify and enhance applications and automatically disseminate these updates across device types to ensure all users benefit from the most up-to-date functionality.
+Added: • Integrated process mining.
+Added: Other low-code platforms do not offer process mining integrated into their platform but rather provide a standalone acquired product or have process mining available through a partnership as a standalone tool.
+Added: Integrating it into our platform alongside workflow and automation delivers significant additional value by reducing the number of steps and time from insight to action.
+Added: It can be applied to discover processes as well as to optimize existing ones.
+Added: • Automate with one platform.
+Added: Our complete automation capabilities allow companies to combine people, systems, and data in a seamless workflow to quickly deliver meaningful business impact.
+Added: Our automation capabilities are not limited to one technology but to a set of unified, native technologies enabling customers to use the right one(s) for the job.
+Added: Our low-code RPA automates the routine tasks across legacy and modern systems, increasing efficiency and providing even more value to the customer.
+Added: Smart Services also automate common business activities, such as sending e-mail and generating documents.
+Added: They are also drag-and-drop, more resilient than RPA, and do not require dedicated hardware.
+Added: AI boosts business outcomes by making the applications intelligent, including intelligent document processing.
+Added: Business rules allow for complex decision logic to free up people for other activities.
• Seamless integration with existing systems and data.
In contrast to typical enterprise software, our platform does not require data to reside within it in order to enable robust data analysis or cross-department and cross-application insight.
+Added: Customers can access and orchestrate data from internal and external sources without needing to migrate data.
+Added: This reduces data migration complexity and time to value.
Our platform seamlessly integrates with many of the most popular enterprise software applications and data repositories and can be used within many legacy environments.
−Removed: For example, organizations frequently use our platform to extend the life and enhance the functionality of legacy systems of record, such as those used for enterprise resource planning, human capital management, and customer relationship management, by building new applications that
−Removed: enhance the functionality of those systems and by leveraging the data within those systems to further optimize and automate operations.
+Added: For example, organizations frequently use our platform to extend the life and enhance the functionality of legacy systems of record, such as those used for enterprise resource planning, human capital management, and customer relationship management, by building new applications that enhance the functionality of those systems and by leveraging the data within those systems to further optimize and automate operations.
+Added: We also integrate data without coding;
+Added: however, since accessing data is only as good as the associated performance, we take the extra step of automatically performance-tuning data, saving time and resources.
• Deployment flexibility to serve customer needs.
−Removed: Our platform can be installed in any cloud or on-premises, with organizations able to access the same functionality and data sources in all cases.
+Added: Our platform can be accessed from Appian Cloud or self-managed in any cloud or on-premises.
Our flexible deployment model also preserves a seamless path to future cloud deployments for organizations initially choosing on-premises for their most sensitive workloads.
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Therefore, it holds some of the highest security certifications available.
−Removed: Our platform was one of the first to achieve Federal Risk and Authorization Management Program (FedRAMP) compliance.
−Removed: Additionally, government agencies can deploy our platform into a fully managed environment at the Impact Level IV security levels with a comprehensive SLA.
−Removed: Our platform is also certified under the Payment Card Industry Data Security Standard (PCI DSS) and meets all requirements under the HITRUST Common Security Framework (CSF).
−Removed: To protect personal health information, our platform is Health Insurance Portability and Accountability Act (HIPAA) compliant and enables General Data Protection Regulation (GDPR) compliance.
−Removed: Our controls are documented in our SOC-2 Type 2 report, in which an independent audit firm provides a detailed review of Appian Cloud’s security, availability, and confidentiality controls.
−Removed: Also, our platform is ISO 27001 certified and possesses both a SOC-1 Type 2 report and a SOC-3 report.
+Added: Our platform was one of the first to achieve Federal Risk and Authorization Management Program, or FedRAMP, compliance.
+Added: Further, we were among the first RPA vendors to have its RPA cloud components FedRAMP certified.
+Added: Finally, our low-code platform is one of the first to receive a Provisional Authorization at Impact Level 5, allowing our Department of Defense customers to build, deploy, and manage complex workflows with the security they need.
+Added: Our platform is also certified under the Payment Card Industry Data Security Standard, or PCI DSS, and meets all requirements under the HITRUST Common Security Framework, or CSF.
+Added: To protect personal health information, our platform is U.S.
+Added: Health Insurance Portability and Accountability Act, or HIPAA, compliant and enables General Data Protection Regulation, or GDPR, compliance.
+Added: Our controls are documented through our SOC 2 Type II report and ISO 27001/27017/27018 certifications, in which independent audit firms provide detailed reviews of Appian Cloud’s security, availability, and confidentiality controls.
+Added: We also possess both a SOC 1 Type II report and a SOC 3 report, as well as regional certifications including UK G-Cloud, UK Cyber Essentials, and Spain’s Esquema Nacional de Seguridad (ENS).
+Added: • Governance capabilities.
+Added: We deliver the guardrails that CIOs of enterprise organizations need to have full visibility and control over their systems.
+Added: Our strong governance capabilities enable us to excel in regulated markets such as financial services, public sector, and life sciences.
+Added: • Open platform giving customers choice.
+Added: We respect the technology decisions organizations have made and empower them to leverage their existing investments with us.
+Added: For example, customers can leverage Appian RPA or orchestrate any third-party bot from a major RPA vendor within our platform.
+Added: Working with the customer’s current information systems allows our customers to obtain value from their initial Appian deployments quickly before migrating additional workloads to our platform over time.
+Added: • Access to Appian’s market.
+Added: We host a robust AppMarket that partners and customers use and contribute to, enabling everyone to accelerate their application development.
+Added: Organizations can select from hundreds of secure plug-ins, utilities, and more.
Our approach to digital transformation goes beyond simply enabling organizations to build custom applications fast.
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• Expand our customer base.
−Removed: We continue to grow our customer base in a variety of industries, including financial services, government, life sciences, telecommunications, media, energy, manufacturing, and transportation.
−Removed: We believe the market for our low-code automation platform is still in its early stages, and we have a significant opportunity to add additional large enterprise and government customers.
+Added: We continue to grow our customer base in a variety of industries, including financial services, government, life sciences, insurance, manufacturing, energy, healthcare, telecommunications, and transportation.
+Added: We believe the market for our low-code platform is still in its early stages, and we have a significant opportunity to add additional large enterprise and government customers globally.
+Added: We offer the Appian Community Edition, which is a free trial platform with guided learning for our prospects and customers to quickly access the Appian low-code platform for up to 25 users.
+Added: Once prospects or customers decide to move forward from trial to transaction, they can transfer from Appian Community Edition over to a production environment with a seamless export, making it easy to do business and transact with Appian.
• Grow through our differentiated land and expand model.
Many of our customers begin by building a single application and grow to build dozens of applications on our platform, which implicitly reduces the per-user cost of each application.
−Removed: Generally, the development of new applications results in the expansion of our user base within an organization and a corresponding increase in revenue to us because we usually charge subscription fees on a per-user basis and, to a lesser degree, non-user based single application licenses.
+Added: Generally, the development of new applications results in the expansion of our user base within an organization and a corresponding increase in revenue to us because we usually charge subscription fees on a per-user basis or through non-user based single application licenses.
Every additional application an organization creates on our platform increases the value of our platform for that organization because it further integrates people, process, and data across the organization and facilitates knowledge sharing.
−Removed: Applications built on our platform may be used only on our platform while customers have active subscriptions, creating a substantial incentive for customers to avoid the difficulties and costs associated with moving to a different software platform.
+Added: Applications built on our platform may be used only on our
+Added: platform while customers have active subscriptions, creating a substantial incentive for customers to avoid the difficulties and costs associated with moving to a different software platform.
• Grow revenue from key industry verticals.
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Our platform enables our customers to build applications quickly.
−Removed: To give our customers an even faster start, we and our partners offer pre-built solutions.
+Added: To give our customers an even faster start, we and our partners offer pre-built solutions in our key industries.
Every Appian solution is built on our platform so they are fully standardized, upgradeable, and compatible.
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• Grow our partner base.
−Removed: We have several strategic partnerships including with KPMG, PwC, Accenture, and Deloitte.
−Removed: These partners work with organizations undergoing digital transformation projects and, when these partners recognize an opportunity for our platform, they often introduce us to potential customers in addition to building solutions on our platform.
+Added: We have several strategic partnerships including with KPMG, Accenture, PwC, Infosys, Wipro, and Deloitte.
+Added: These partners work with organizations undergoing digital transformation projects and, when these partners recognize an opportunity for our platform, they often introduce us to potential customers.
+Added: Additionally, they also leverage pre-built solutions using our platform, delivering us software license revenue.
We intend to further grow our base of partners to provide broader customer coverage and solution delivery capabilities.
+Added: Industry and Market Data
+Added: Information contained in this Annual Report on Form 10-K concerning our industry and the market in which we operate, including our general expectations and market position, market opportunity, and market size is based on information from various sources, including independent industry publications by Forrester Research Inc., or Forrester, Gartner, Inc., or Gartner, and International Data Corporation, or IDC.
+Added: In presenting this information, we have also made assumptions based on such data and other similar sources, and based on our knowledge of, and our experience to date in, the markets for our services.
+Added: This information involves a number of assumptions and limitations, and we caution readers not to give undue weight to such estimates.
+Added: Although we have not independently verified the accuracy or completeness of any third-party information, we believe the market position, market opportunity, and market size information included in this Annual Report on Form 10-K is reliable.
+Added: The industry in which we operate is subject to a high degree of uncertainty and risk due to a variety of factors, including those described in the “Risk Factors” section.
+Added: These and other factors could cause results to differ materially from those expressed in the estimates made by the independent parties and by us.
+Added: The Gartner content described herein (the “Gartner Content”) represent(s) research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, and are not representations of fact.
+Added: Gartner Content speaks as of its original publication date (and not as of the date of this 10-K), and the opinions expressed in the Gartner Content are subject to change without notice.
+Added: Gartner and Magic Quadrant are registered trademarks and service marks of Gartner, Inc.
+Added: and/or its affiliates and are used herein with permission.
+Added: All rights reserved.
+Added: Gartner does not endorse any vendor, product or service depicted in its research publications and does not advise technology users to select only those vendors with the highest ratings or other designation.
+Added: Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact.
+Added: Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
Our Opportunity
−Removed: We believe we have a significant market opportunity in helping organizations accelerate their digital transformation by leveraging our low-code automation platform.
−Removed: • Current core software markets.
+Added: We believe we have a significant market opportunity in helping organizations accelerate their digital transformation by leveraging our low-code platform.
We believe our platform addresses several key core software markets, as follows:
−Removed: A low-code application development platform enables rapid application delivery with minimal hand-coding and quick setup and deployment.
−Removed: According to the Low-Code Development Platform Market Research Report published by Prescient & Strategic Intelligence in June 2020, the market for low-code development platforms was valued at $10.3 billion in 2019 and is expected to grow at a 28% compound annual growth rate to $57.3 billion by 2026.
−Removed: We were recognized as a "Leader" based on our completeness of vision and ability to execute in the 2020 Gartner Magic Quadrant for Enterprise Low-Code Application Platforms.
−Removed: ◦ Application PaaS.
−Removed: Application platform as a service, or application PaaS, is a cloud service that provides the necessary infrastructure to enable the development, deployment, and hosting of software applications.
−Removed: We believe we are well positioned to capture a portion of the application PaaS market.
−Removed: According to Gartner, the global application PaaS market was valued at $41.3 billion in 2019 and is expected to grow at a 23% compound annual growth rate to $118.3 billion by 2024.
−Removed: ◦ Robotic Process Automation.
−Removed: RPA allows for the automation of high volume, rule-based, repetitive tasks performed by people and/or connecting to legacy systems that do not use modern application program interfaces, or APIs.
−Removed: According to Gartner, the market for RPA totaled $2.2 billion in 2019 and is expected to grow at a 16% compound annual growth rate to $3.4 billion by 2024.
+Added: According to Gartner, spending on low-code development technologies (excluding RPA) is expected to grow from $9.6 billion in 2020 to $24.7 billion by 2025, at a CAGR of 21%.
• Intelligent Process Automation.
−Removed: Intelligent process automation, or IPA, combines task automation with process automation to orchestrate coordination across systems, humans, and digital workforce in a unified workflow.
−Removed: According to IDC, the market for worldwide IPA software totaled $16.3 billion in 2019 and is expected to grow at a compound annual growth rate of 13% to $30.5 billion by 2024.
−Removed: 4 We were included as a "Leader" based on the strength of our current offering, our strategy, and our market presence in The Forrester Wave TM:
−Removed: Software For Digital Process Automation for Deep Deployments, Q2 2019, in June 2019.
−Removed: 1 Gartner Magic Quadrant for Enterprise Low-Code Application Platforms , Published 30 September 2020;
−Removed: Paul Vincent, Yefim Natis, Jason Wong, Saikat Ray, et al.
−Removed: 2 Gartner, Forecast:
−Removed: Public Cloud Services, Worldwide, 2018-2024, 4Q20 Update, Colleen Graham, Neha Gupta, et al., 21 December 2020.
−Removed: 3 Gartner Forecast Analysis:
−Removed: Robotic Process Automation, Worldwide;
−Removed: Published 2 September 2020;
−Removed: Fabrizio Biscotti, Cathy Tornbohm, Arthur Villa, et.
−Removed: Worldwide Intelligent Process Automation Software Forecast, 2020-2024;
−Removed: Published 15 July 2020;
−Removed: Authored by Maureen Fleming.
−Removed: Taken together, these current core software markets are expected to represent a combined $70.1 billion market opportunity currently and a combined $209.5 billion market opportunity in the near term.
+Added: According to IDC, the market for worldwide IPA software is forecasted to grow from $16.9 billion in 2020 to $42.4 billion by 2025, at a CAGR of 20%.
+Added: The market for worldwide IPA software (excluding RPA and Process Mining) is forecasted to grow from $15.0 billion in 2020 to $31.6 billion by 2025, at a CAGR of 16%.
+Added: • Artificial Intelligence Software.
+Added: According to a report by Forrester, the Global AI Software market (excluding AI maker platforms) is forecasted to grow from $12.5 billion in 2020 to $23.3 billion by 2025, at a CAGR of 13%.
+Added: • Robotic Process Automation.
+Added: According to IDC, the market for RPA (Cloud) is expected to grow from $57 million in 2020 to $3.2 billion by 2025, at a CAGR of 123%.
+Added: • Process Mining.
+Added: According to Gartner, the market for Process Mining is expected to grow from $550 million in 2020 to $2.3 billion by 2025, at a CAGR of 33%.
+Added: Taken together, the market opportunity of these current core software markets represents a combined $37.7 billion in 2020 and is expected to grow to $85 billion by 2025, at a CAGR of 18%.
• Traditional custom enterprise software market.
In addition to our current core software markets, we believe our platform better addresses certain needs of enterprise companies that have historically used manually-developed custom software.
−Removed: The global enterprise application software market is expected to reach $231 billion in 2021, according to Gartner.
+Added: According to Gartner, the worldwide enterprise application software market (in constant currency terms) will grow from $273.4 billion in 2021 to $424.0 billion by 2025, at a CAGR of 11.6%.
• Our internal estimate.
2 unchanged sentences
We calculated industry- and size-specific average annual recurring revenue as of December 31, 2021 by adding the aggregate annual recurring revenue from all existing customers within each industry and size segment and dividing the total by the number of our existing customers in each industry and size segment.
+Added: 1 Gartner, Forecast Analysis:
+Added: Low-Code Deployment Technologies, 22 January 2022
+Added: 2 Worldwide Intelligent Process Automation Software Forecast, 2021-2025, Maureen Fleming, July 2021
+Added: 3 The AI Software Market Will Grow to $37 Billion Globally by 2025, Forrester, December 10, 2020
+Added: 4 Worldwide Intelligent Process Automation Software Forecast, 2021-2025, Maureen Fleming, July 2021
+Added: 5 Gartner, Forecast Analysis:
+Added: Process Mining, Worldwide, 26 October 2021
6 Gartner, Forecast:
−Removed: Enterprise Application Software, Worldwide, 2018-2024, 4Q20 Update, Neha Gupta, Chris Pang, et al., 18 December 2020.
−Removed: With our platform, organizations can rapidly and easily design, build, and implement powerful, enterprise-grade custom applications through our intuitive, visual interface, with little or no coding required.
+Added: Enterprise Application Software, Worldwide, 2019-2025, 4Q21 Update, 21 December 2021
+Added: Our Low-code Platform
+Added: With our low-code platform, organizations can rapidly and easily discover, design, and automate powerful, enterprise-grade applications through our intuitive, visual interface, with little or no coding required.
We also enable organizations to easily modify and enhance applications and automatically disseminate these updates across device types to ensure all users benefit from the most up-to-date functionality.
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We believe the key elements of our technology infrastructure are as follows:
−Removed: Low-code Automation Offering
−Removed: Our heritage as a BPM company provides us with a differentiated understanding and ability to automate complex processes, and we have incorporated that expertise into our platform to enable the development of powerful business software.
−Removed: Appian applications can leverage our complete automation capabilities, applying the right automation approach for each specific use case:
+Added: Unified Offering
+Added: Our heritage as a BPM company provides us with a differentiated understanding and ability to discover, design, and automate complex processes.
+Added: We have incorporated that expertise into our platform to enable the development of powerful business software.
At the core of our platform is an advanced engine that enables the modeling, modification, and management of complex processes.
Appian combines people, technologies, and data into a single workflow to maximize resources and improve business results.
−Removed: Workflow can include any worker (people, RPA, AI) or any resource (data and system).
−Removed: • Decision Rules.
−Removed: Appian includes a declarative environment for defining and executing business logic or rules.
−Removed: These rules can be highly complex and applied within the Appian platform to many use cases, ranging from automated decision making to user experience personalization.
+Added: Workflow can include any worker (people or digital workers) or any resource (data and system).
+Added: Workflow serves as the bridge between process mining and automation, and we believe starting with it at the core gives us an immediate competitive advantage.
+Added: Our complete automation capabilities allow companies to combine people, systems, and data in a seamless workflow to quickly deliver meaningful business impact.
+Added: Our automation capabilities are not limited to one technology but to a set of unified, native technologies enabling customers to use the right one for the job.
• Robotic Process Automation.
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These robots facilitate integration with legacy systems that do not offer modern APIs.
+Added: • Intelligent Document Processing.
+Added: Appian includes native IDP, which automatically extracts structured and unstructured data from digital forms such as invoices and classifies it using AI.
+Added: The out-of-the-box application does not require the use of time consuming templates and continuously improves accuracy with AI that learns from human corrections.
• Artificial Intelligence .
−Removed: Appian includes a range of AI features based on Google’s AI services.
−Removed: These features include sentiment analysis, translation, and document and image analysis.
+Added: Appian includes a range of native and third party AI capabilities.
+Added: These capabilities include native intelligent document processing as well as sentiment analysis, translation, and document and image analysis.
Appian also allows customers to integrate with their preferred AI provider using our zero-code connectors.
• Case Management.
−Removed: Appian case management enables automation of many of the most common patterns of collaborative human work such as service management, incident management, and investigations.
−Removed: Appian combines the power of workflow, decision rules, RPA, AI, and case management into a unified platform.
+Added: Appian dynamic case management enables automation of many of the most common patterns of collaborative human work such as service management, incident management, and investigations.
+Added: • Business Rules.
+Added: Appian includes a declarative environment for defining and executing business logic or rules.
+Added: These rules can be highly complex and applied within the Appian platform to many use cases, ranging from automated decision making to user experience personalization.
+Added: Process Mining
+Added: Appian Process Mining discovers how to reduce costs, increase efficiency, and optimize processes.
+Added: Appian removes the single largest friction point in process mining, enabling customers to spend more time improving and automating workflows.
+Added: Appian Process Mining features a no-code module that simplifies the preparation and transformation of enterprise data.
+Added: Pre-built process packages with mapping and dashboards also accelerate process mining time-to-value.
+Added: Appian combines the power of process mining, workflow, and automation into a unified, low-code platform.
Our platform has the complete automation capabilities to fuel enterprise-wide workflows and the ability to scale with an organization's growth through performance, governance, and security.
3 unchanged sentences
Appian design is a shared repository of all Appian components (interfaces, process models, APIs, new component builders, and user collaboration modules) and serves as an administration utility for managing people, processes, and data.
−Removed: The Appian design repository incorporates best practices and years of lessons learned from digital transformation initiatives.
+Added: The Appian design repository incorporates design and DevOps best practices and years of lessons learned from digital transformation initiatives.
Common development operations tasks require just a few clicks and can be automated for hands-off deployment.
Dramatic improvements in developer productivity can be achieved through user-friendly capabilities such as fast impact analysis of all changes, auto-updating applications and components when data types change, and live views of interfaces under development.
−Removed: Appian design guides developers through the necessary steps to create the foundation elements of reusable interfaces, records, and business processes, while providing all the power developers need to design, build, and implement enterprise systems at scale.
+Added: Our platform guides developers through the necessary steps to create the foundation elements of reusable interfaces, records, and business processes, while providing all the power developers need to design, build, and implement enterprise systems at scale.
Our Patented SAIL Technology
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We believe SAIL provides a significant advantage over other platforms that both require extensive customization for various devices at the time of the creation of the new applications and on an on-going basis as mobile device manufacturers continue to update their software and capabilities.
−Removed: Low-Code Data
−Removed: Appian Records is an advanced data management technology that allows end users to discover and unite enterprise data into a single searchable environment, providing a comprehensive view of an organization’s data.
−Removed: In contrast to typical enterprise software, our platform does not require data to reside within it in order to enable robust data analysis and cross-department and cross-application insight.
−Removed: Using standard database software and service connection frameworks, including APIs, our platform seamlessly integrates with many of the most popular enterprise software applications and data repositories and can be used within many legacy environments.
−Removed: Users simply need to assign a name to a given topic and decide which existing data sources within the enterprise they want to capture.
−Removed: In addition to the benefits of having an immediate snapshot of all centralized data relating to the customer, product, employee, or service request, Appian Records also allows organizations to analyze the end-to-end journeys of any given person, entity, or asset.
−Removed: Once the connections are established, users may navigate, analyze, collaborate, and take action on data from our intuitive dashboards and interactive reports.
−Removed: Unified End User Interfaces
+Added: User Interfaces for All
+Added: Our platform allows our customers to easily build the user experiences they need to serve their employees and customers best, including:
+Added: • Unified employee interface .
Our end user interfaces enable users to discover data, collaborate with other end users, and participate in process actions.
7 unchanged sentences
Business Activity Monitoring reports display real-time enterprise performance, bottleneck detection, and process optimization while scaling to millions of tasks.
−Removed: We designed our platform to support large global enterprises and government organizations at scale, in the cloud or on-premises.
+Added: • Customer experience.
+Added: Appian Portals securely connects external users to apps without authentication.
+Added: It allows users to quickly build public websites connected to their apps using low-code in a way that is easy to scale and manage.
+Added: Automatic mobile experiences, including dynamic offline capabilities, enable workers to continue using their mobile applications even when offline.
+Added: Low-Code Data
+Added: Appian Low-Code Data is an advanced data management technology that allows end users to discover and unite enterprise data into a single searchable environment, providing a comprehensive view of an organization’s data.
+Added: In contrast to typical enterprise software, our platform does not require data to reside within it in order to enable robust data analysis and cross-department and cross-application insight.
+Added: Using standard database software and service connection frameworks, including APIs, our platform seamlessly integrates with many of the most popular enterprise software applications and data repositories and can be used within many legacy environments.
+Added: Users simply need to assign a name to a given topic and decide which existing data sources within the enterprise they want to capture.
+Added: Appian Low-Code Data gives users an immediate snapshot of all centralized data relating to common business activities such as customer, product, employee, or service requests.
+Added: Appian also allows organizations to analyze the end-to-end journeys of any given person, entity, or asset.
+Added: Once the connections are established, users may navigate, analyze, collaborate, and take action on data from our intuitive dashboards and interactive reports.
+Added: We designed our platform to support large global enterprises and government organizations at scale, in the cloud or self-hosted.
We design, deploy, and manage our platform with the goal of it being a “joy to use” for both developers and users of applications.
7 unchanged sentences
We may maintain the contract as long as we pay maintenance fees.
−Removed: Kx may terminate the agreement if we materially breach the agreement, become insolvent, make an assignment for the benefit of creditors, or if a bankruptcy proceeding is initiated against us.
+Added: Kx may terminate the agreement if we materially breach the agreement, become insolvent, make an assignment for the benefit of creditors, or if a bankruptcy
+Added: proceeding is initiated against us.
Unless we fail to pay amounts due under the contract or violate certain of Kx’s intellectual property rights, Kx may not terminate the agreement until either it has successfully litigated a breach action or six months, whichever is earlier.
3 unchanged sentences
We have also implemented a wide set of technical, physical, and personnel-based security controls designed to protect against the compromise of confidential data belonging to both our customers and us.
−Removed: Professional Services
+Added: Customer Success
Since inception, we have invested in our Customer Success organization to help ensure customers are able to deploy and adopt our platform.
−Removed: We believe our investment in professional services, as well as efforts by partners to build their practices around Appian, will drive increased adoption of our platform.
+Added: We believe our investment in customer success, as well as efforts by partners to build their practices around Appian, will drive increased adoption of our platform.
+Added: Our focus on customer success creates happy customers.
+Added: Appian was named a Customers’ Choice in the 2021 Gartner Peer Insights TM ‘Voice of the Customer’:
+Added: Enterprise Low-Code Application Platforms.
+Added: The report recognizes vendors that are highly rated by their customers through Gartner Peer Insights verified reviews.
+Added: Appian was the sole Customers’ Choice for the Global Enterprise ($10B+), Large Enterprise ($1-10B), North America, and Finance categories.
When we first acquire a new customer, our professional services experts or our partners’ professional services experts start the implementation process.
−Removed: Delivery specialists facilitate deployment of our platform, and training personnel provide comprehensive support throughout the implementation process.
+Added: Specialists facilitate deployment of our platform, and training personnel provide comprehensive support throughout the implementation process.
Customers have access to our Appian Academy, which trains analysts and developers of different skill sets on our platform.
1 unchanged sentence
Once our customers have deployed and implemented our platform, our Appian Architects review our customers’ programs and applications to find potential issues and provide recommendations on best practices.
−Removed: Our professional services team also assists customers by building applications on our platform for them.
+Added: Our professional services teams also assist customers by building applications on our platform for them.
Over time, we expect professional services revenue as a percentage of total revenue to continue to decline as we increasingly rely on strategic partners to help our customers deploy our software.
6 unchanged sentences
Our Customers
−Removed: Our customers operate in a variety of industries, including financial services, government, life sciences, education, technology, media and telecommunications, consumer, and industrials.
+Added: Our customers operate in a variety of industries, including financial services, government, life sciences, insurance, manufacturing, energy, healthcare, telecommunications, and transportation.
As of December 31, 2021, we had 816 customers, of which 635 customers were commercial and 181 customers were government or non-commercial entities.
−Removed: Generally, our sales
−Removed: force targets its efforts to organizations with over 2,000 employees and $2 billion in annual revenue.
+Added: Generally, our sales team targets its efforts to organizations with over 2,000 employees and $2 billion in annual revenue.
Our number of customers paying us in excess of $1 million of annual recurring revenue has grown from 55 at the end of 2020 to 75 at the end of 2021.
8 unchanged sentences
As of December 31, 2021, we had a total global workforce of 1,798 full-time employees, 1,334 of which were based in the United States.
−Removed: During 2020, we had a voluntary attrition rate of only 9% among all employees, which we believe is a testament to the strength of our culture.
None of our U.S.
13 unchanged sentences
(2) providers of low-code development platforms, such as Microsoft, Salesforce.com, ServiceNow, OutSystems, and Mendix;
−Removed: and (3) providers of business process management and case management software, such as Pegasystems, IBM, Bizagi, Oracle, and Nintex.
+Added: and (3) providers of one or more automation technologies, including business process management, case management, process mining, and robotic process automation.
+Added: Such providers include Pegasystems, Celonis, UiPath, IBM, ServiceNow, Microsoft, SAP, Bizagi, Oracle, and Nintex.
As our market grows, we expect it will attract more highly specialized vendors as well as larger vendors that may continue to acquire or bundle their products more effectively.
19 unchanged sentences
However, this decline will negatively affect our revenue in future periods.
−Removed: Accordingly, the effect of significant downturns in sales and market acceptance of our platform and potential changes in our rate of renewals may not be fully reflected in our results of operations until future periods.
+Added: Accordingly, the effect of significant downturns in sales, market acceptance of our platform, and potential changes in our rate of renewals may not be fully reflected in our results of operations until future periods.
While we will continue to recognize the majority of our subscriptions revenue ratably over the terms of our subscription agreements, we may experience greater variability and reduced comparability of our quarterly revenue and results due to the upfront revenue recognition associated with our term license subscription agreements.
7 unchanged sentences
Marketing activities include sponsorship of, and attendance at, trade shows and conferences, our annual Appian World event, social media, advertising and other digital programs, management of our corporate website and partner portal, press outreach, and customer relations.
−Removed: In response to the COVID-19 pandemic, we have reduced the number of in-person marketing events, including shifting Appian World to virtual-only in 2020 and 2021.
+Added: In response to the COVID-19 pandemic, we reduced the number of in-person marketing events, including shifting Appian World to virtual-only in 2020 and 2021.
+Added: Partner Strategy
+Added: We have a strong and growing ecosystem of partners that helps accelerate our customers’ digital transformation initiatives and deliver customer value at scale.
+Added: Our workflow, broader automation, and discovery capabilities paired with our partners’ industry and functional domain experience help companies digitally transform their business.
+Added: Partners also help us to offer industry-focused solutions as we help companies drive new approaches in engaging their end users and employees.
+Added: We have many strategic partnerships around the world including with companies such as KPMG, Accenture, PwC, Infosys, Wipro, and Deloitte.
+Added: These partners refer software subscription customers to us and generally perform professional services with respect to any new service contracts they originate, increasing our subscriptions revenue without any change to our professional services revenue.
+Added: As we expand the network of strategic partners, we expect professional services revenue to decline as a percentage of total revenue over time since our strategic partners may perform professional services associated with software subscriptions we sell.
+Added: We are also growing our network of regional and channel partners to further expand our business into traditional and new markets.
+Added: These partners provide delivery services, sales and marketing capabilities, and contract fulfillment.
Intellectual Property
1 unchanged sentence
We rely on patents, trademarks, copyrights, trade secret laws, confidentiality procedures, and employee disclosure and invention assignment agreements to protect our intellectual property rights.
−Removed: As of December 31, 2020, we had five granted patents and six patents pending related to our platform and its technology.
+Added: As of December 31, 2021, we had six granted patents, two allowed patents, and four patents pending related to our platform and its technology.
None of our issued patents expire before 2034.
4 unchanged sentences
and international copyright and trade secret laws.
−Removed: As of December 31, 2020, we leased our headquarters office in McLean, Virginia and offices in three cities outside the United States.
−Removed: In addition to our leased offices, we occupied two flexible workspaces outside of the United States.
+Added: As of December 31, 2021, we leased our headquarters office in McLean, Virginia and offices in six cities outside the United States.
+Added: In addition to our leased offices, we occupied three flexible workspaces outside of the United States.
In 2021, as part of our response to the COVID-19 pandemic, we reduced the number of offices we occupied as we shifted to largely remote work.
11 unchanged sentences
Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to reports filed pursuant to Sections 13(a) and 15(d) of the Exchange Act are made available free of charge on or through our website at investors.appian.com as soon as reasonably practicable after such reports are filed with, or furnished to, the United States Securities and Exchange Commission, or SEC.
−Removed: The information contained on, or that can be accessed through, our website is not incorporated by reference into this Annual Report on Form 10-K or in any other report or document we file with the SEC, and any references to our website are intended to be inactive textual references only.
+Added: The information contained on, or that can be accessed through, our website is not incorporated by reference into this Annual Report on Form 10-K or in any
+Added: other report or document we file with the SEC, and any references to our website are intended to be inactive textual references only.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.