AI Drives Growth for Tech Companies Arteris and Appian in Q4 2024

AI Drives Demand for Arteris and Appian in Q4 2024

Arteris and Appian, two leading technology companies, have reported strong financial results for the fourth quarter of 2024, with artificial intelligence (AI) playing a significant role in driving demand for their products and services.

Arteris Sees Record Growth in AI-Driven Markets

Arteris, a provider of system IP for system-on-chip (SoC) creation, announced record-breaking results for Q4 2024 1

1

. The company achieved an Annual Contract Value (ACV) plus royalties of $65.million, representing a 16% year-over-year increase. This growth was primarily driven by strong demand for Arteris' commercial semiconductor System IP products, particularly in AI-driven enterprise computing and automotive SoCs.

K. Charles Janac, President and CEO of Arteris, stated, "As AI adoption accelerates across data centers, autonomous driving, and edge devices, the growing complexity of both high performance and traditional technologies like MCUs is fueling demand for the efficiency enabled by Arteris' networks-on-chip IP technology" 1

1

.

Key highlights for Arteris in 2024 include:

• Signing 14 new customers, including two major automotive OEMs
• Expanding into the microcontroller space with a license to Infineon, the leading MCU company
• Announcing design wins with GigaDevice for automotive microcontrollers and Menta for edge AI and IoT chiplet designs
• Releasing FlexGen smart NoC IP, which has the potential to deliver up to 10x engineer productivity and lower power consumption

Appian Demonstrates Growth and Efficiency in AI Integration

Appian, a leader in low-code process automation, reported strong financial results for Q4 2024, with cloud subscription revenue increasing 19% year-over-year to $98.million 2

2

. The company's CEO, Matt Calkins, emphasized Appian's focus on creating value with AI by deploying it in processes, stating, "While others bring work to AI, we bring AI to work" 2

2

.

Appian's key financial highlights for Q4 2024 include:

• Total revenue of $166.million, up 15% compared to Q4 2023
• GAAP operating income of $5.million, compared to a loss of $(16.million in Q4 2023
• Non-GAAP operating income of $18.million, compared to a loss of $(1.million in Q4 2023

The company's success in integrating AI into its platform has led to recognition from industry analysts. Appian was named a Leader in Everest Group's Process Orchestration Products PEAK Matrix® 2024 2

2

.

AI Adoption Driving Industry-Wide Growth

The strong performance of both Arteris and Appian in Q4 2024 reflects a broader trend of AI adoption driving growth across various industries. As companies increasingly integrate AI into their products and processes, demand for specialized technologies that enable efficient AI implementation continues to rise.

Arteris' success in AI-driven markets such as enterprise computing and automotive SoCs demonstrates the growing need for advanced system IP solutions that can handle the complexity of AI workloads. Similarly, Appian's focus on bringing AI to work processes highlights the increasing demand for intelligent automation solutions across industries.

As AI adoption continues to accelerate, companies that can effectively integrate AI capabilities into their products and services are likely to see sustained growth and market opportunities in the coming years.