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APPN Nasdaq· Appian Corporation
Earnings report Q4 2023

Appian Corporation Reports Strong Revenue Growth in Latest Quarter

Segments of Revenue

Appian Corporation, a leading provider of low-code automation software, reported total revenue of $545.36 million in the latest quarter. The company's revenue is divided into two segments: subscriptions and professional services. Subscriptions revenue amounted to $412.34 million, while professional services revenue reached $133.03 million.

Strengths

Appian Corporation demonstrated strong revenue growth in the latest quarter, with a significant increase of 16.6% compared to the previous year. This growth was primarily driven by the subscriptions segment, which saw a remarkable increase of 21.1% year-over-year. The company's low-code automation software continues to gain traction in the market, attracting more customers and driving subscription revenue growth.

Management comments highlighted the increasing demand for Appian's cloud subscriptions, which accounted for the majority of the company's revenue. The company's focus on providing innovative and scalable solutions to meet the evolving needs of businesses has contributed to its success in attracting new customers and expanding its subscription base.

Challenges

Despite the overall positive performance, Appian Corporation faced challenges in its professional services segment. Professional services revenue experienced a slight decline of 0.8% compared to the previous year. This decline may be attributed to various factors, such as increased competition in the market or a shift in customer preferences towards self-service options.

Additionally, the company reported an operating loss of $107.97 million in the latest quarter. This loss can be attributed to the high operating expenses incurred by the company, including sales and marketing, research and development, and general and administrative expenses. Appian Corporation will need to carefully manage its expenses to improve profitability in future quarters.

Noteworthy

One noteworthy aspect of Appian Corporation's performance is the significant growth in cloud subscriptions revenue. Cloud subscriptions revenue increased by 28.2% compared to the previous year, indicating a strong demand for the company's cloud-based solutions. This growth aligns with the industry trend of businesses adopting cloud technologies for enhanced flexibility, scalability, and cost-efficiency.

Summary

Appian Corporation delivered a strong performance in the latest quarter, driven by robust revenue growth. The company's focus on low-code automation software and cloud subscriptions has resulted in a significant increase in revenue, particularly in the subscriptions segment. However, challenges in the professional services segment and the operating loss incurred by the company highlight areas that require attention. Overall, Appian Corporation's revenue growth and increasing demand for its cloud subscriptions position it well for future success in the competitive software market.

Source documents

Form 10-K  filed on Feb 15, 2024
27 pages scanned

Reference data

Company financials Q4 revenue 145M
Analyst estimates Q4 EPS missed by -124.14%
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