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Appian
🇺🇸 NASDAQ:APPN
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Sep 30, 2022

Appian Q3 2022 Earnings Report

Appian's Q3 2022 earnings exceeded guidance, with strong growth in cloud subscription revenue and total revenue, but adjusted EBITDA loss increased due to hiring and attrition.

Key Takeaways

Appian's Q3 2022 total revenue exceeded guidance, with cloud subscription revenue increasing by 30% year-over-year to $60.6 million. However, the adjusted EBITDA loss was higher due to pull forward hiring and a sharp drop in attrition.

Cloud subscription revenue increased 30% year-over-year to $60.6 million.

Total subscriptions revenue increased 29% year-over-year to $86.5 million.

Professional services revenue increased 25% year-over-year to $31.4 million.

Total revenue increased 28% year-over-year to $117.9 million.

Total Revenue
$118M
Previous year: $92.4M
+27.5%
EPS
-$0.43
Previous year: -$0.22
+95.5%
Cloud Sub. Rev. Retention Rate
115%
Previous year: 117%
-1.7%
Gross Profit
$84.1M
Previous year: $65.9M
+27.6%
Cash and Equivalents
$51.8M
Previous year: $127M
-59.3%
Free Cash Flow
-$44.9M
Previous year: -$26.6M
+68.9%
Total Assets
$455M
Previous year: $494M
-8.1%

Appian

Appian

Appian Revenue by Segment

Forward Guidance

Appian provided guidance for Q4 2022 and full year 2022.

Positive Outlook

  • Cloud subscription revenue is expected to be between $63.5 million and $64.5 million, representing year-over-year growth of 24% to 26% for Q4 2022.
  • Total revenue is expected to be between $121.5 million and $123.5 million, representing a year-over-year increase of 16% to 18% for Q4 2022.
  • Cloud subscription revenue is expected to be between $235.0 million and $236.0 million, representing year-over-year growth of 31% to 32% for full year 2022.
  • Total revenue is expected to be between $461.0 million and $466.0 million, representing a year-over-year increase of 25% to 26% for full year 2022.
  • Company plans to reduce losses to 10% of revenue by the second half of 2023

Challenges Ahead

  • Adjusted EBITDA loss is expected to be between $(24.0) million and $(29.0) million for Q4 2022.
  • Non-GAAP net loss per share is expected to be between $(0.36) and $(0.42), assuming weighted average common shares outstanding of 72.7 million for Q4 2022.
  • Adjusted EBITDA loss is expected to be between $(75.0) million and $(80.0) million for full year 2022.
  • Non-GAAP net loss per share is expected to be between $(1.30) and $(1.36), assuming weighted average common shares outstanding of 72.5 million for full year 2022.
  • Adjusted EBITDA loss was higher due to pull forward hiring and a sharp drop in attrition.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Appian