Appian Corporation Q1 FY2026 earnings call

Matt Calkins mentioned that Appian's purpose is to bring AI into mission critical applications at large regulated companies. There was a study with the Harvard Business Review on AI in the workplace. Appian's DocCenter automatically extracts data from incoming documents with over 95% accuracy. Legacy modernization is a fast-growing component of the business, with examples like the U.S. Air Force and Hitachi. Customers have strong interest in Appian's agentic AI, with examples like a leading telecommunications company using it for digital advertisement operations.

In the first quarter of 2026, Appian's cloud subscriptions revenue grew 25% year-over-year to $124.5 million. Subscriptions revenue grew 19% to $160.3 million. Total revenue grew 21% to $202.2 million. Adjusted EBITDA was $26.6 million. Our weighted rule of 40 scored 42, and our go-to-market efficiency metric posted its 11th straight quarter of improvement.

For the second quarter of 2026, cloud subscription revenue is expected to be between $126 and $128 million, total revenue between $191 and $195 million, and adjusted EBITDA between $5 and $8 million. For the full year 2026, cloud subscription revenue is expected to be between 515 and 521 million, total revenue between 819 and 831 million, and adjusted EBITDA between 97 and 105 million. We are increasing our share repurchase program from 50 to 100 million.

Q: Steve Enders with Citi asked about agentic AI deployment and incremental use cases driving pipeline.

A: Matt Calkins said the pipeline is driven by having the answer to applying AI to strategic applications, with DocCenter being a strong use case.

Q: Raymo asked about federal exposure.

A: Matt Calkins said they feel good about their position in federal with momentum, pipeline, and larger deals.

Q: Pat Mickley with William Blair asked about cloud NRR.

A: Serge Tonga said it's driven by AI tier upgrades and selling large strategic deals.

Q: Sanjeev Singh with Morgan Stanley asked about Appian being a destination for efficient AI.

A: Matt Calkins said it's about the portfolio of tools.

Q: Devin with KeyBank Capital Markets asked about Appian World Conference.

A: Matt Calkins said there was enthusiasm, clarity on AI use, and DocCenter as an example.

Q: Derek Wood with TD Cohen asked about MCP access and monetization.

A: Matt Calkins talked about the open ecosystem and monetization through external inbound requests