NASDAQ$APPN

Appian Corporation · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Appian's Q3 2020 results were announced, demonstrating revenue growth and exceeding expectations.

Appian announced its Q3 2020 financial results, reporting a 17% increase in total revenue to $77.3 million and a 40% increase in cloud subscription revenue to $34.3 million. The company's GAAP net loss was $(3.6) million, or $(0.05) per share, while non-GAAP net loss was $(34,000), or $(0.00) per share. Appian exceeded its guidance and reached an all-time high for gross profit margin.

  • Cloud subscription revenue increased 40% year-over-year to $34.3 million.
  • Total subscriptions revenue increased 34% year-over-year to $50.8 million.
  • Total revenue was $77.3 million, up 17% compared to the third quarter of 2019.
  • GAAP net loss was $(3.6) million, compared to $(14.7) million for the third quarter of 2019.

Headline financials

Total Revenue

$77.3M

Previous: $69.4M+11.4%
EPS (adj)

-$0.05

Previous: -$0.14+63.1%
Capital Expenditures

-$1.04M

Previous: -$31.4M+96.7%
Free Cash Flow

-$4.65M

Previous: -$43.9M+89.4%
Net Income

-$3.61M

Previous: -$12.4M+70.9%
Operating Income

-$7.52M

Previous: -$10.3M+27.1%
Gross Profit

$55.8M

Previous: $45.4M+22.7%
Cash & Equivalents

$251M

No prior period
Total Assets

$492M

No prior period
Stock-Based Comp

$3.58M

No prior period

Revenue & EPS history

Appian · Revenue · Quarterly

$77.3M

Q3 2020+11.4%vs Q3 2019
Beat estimate in 3 of 16 quarters(19%)
ActualEstimate

Revenue by segment

Appian · $60.8M total across 2 segments · Q3 2020

  • Cloud Subscriptions
    $34.3M+40.0%
  • Professional Services
    $26.5M-6.7%

Forward guidance

Appian provided guidance for the fourth quarter and full year 2020.

Tailwinds

  • Cloud subscription revenue is expected to be in the range of $35.0 million and $35.5 million, representing year-over-year growth of between 33% and 35%.
  • Total revenue is expected to be in the range of $73.0 million and $74.0 million, representing a year-over-year increase of between 6% and 8%.
  • Cloud subscription revenue is expected to be in the range of $127.3 million and $127.8 million, representing year-over-year growth of 34%.
  • Total revenue is expected to be in the range of $296.0 million and $297.0 million, representing a year-over-year increase of 14%.
  • This assumes 70.5 million weighted average common shares outstanding.

Headwinds

  • Adjusted EBITDA loss is expected to be in the range of $(11.0) million and $(10.0) million.
  • Non-GAAP net loss per share is expected to be in the range of $(0.18) and $(0.16).
  • Adjusted EBITDA loss is expected to be in the range of $(24.0) million and $(23.0) million.
  • Non-GAAP net loss per share is expected to be in the range of $(0.42) and $(0.40).
  • This assumes 69.1 million weighted average common shares outstanding.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

-0.4%

Avg return

Earnings day

-0.4%

Avg return

5 days after

+2.6%

Avg return

30 days after

49%

17 / 35 earnings

Positive

+30.8%

Q3 2025

Best reaction

-21.6%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.5%-11.5%+6.7%
Q4 2025+1.8%+3.7%+5.2%
Q3 2025+30.8%+50.8%+39.7%
Q1 2025+5.3%+8.2%+5.8%
Q4 2024+16.2%+3.7%-3.9%
Q3 2024+0.7%-1.3%+0.4%
Q2 2024-19.2%-24.8%-12.2%
Q1 2024-12.9%-13.3%-22.7%
Q4 2023+11.5%+8.3%+8.4%
Q3 2023+2.0%-2.2%-3.7%
Q2 2023+2.3%-0.4%+2.3%
Q1 2023+5.5%-0.1%+34.5%
Q4 2022+3.9%-3.6%-5.9%
Q3 2022-19.1%-26.3%-19.9%
Q2 2022-1.4%-6.8%-21.9%
Q1 2022-7.2%+16.4%-4.0%
Q4 2021+1.6%-3.6%+13.1%
Q3 2021-8.4%+3.1%-29.9%
Q2 2021-5.7%-2.4%+3.7%
Q1 2021-13.7%-13.2%-11.1%
Q4 2020-5.9%-16.5%-30.0%
Q3 2020+28.2%+36.8%+114.0%
Q2 2020+1.9%-8.2%+10.4%
Q1 2020+0.4%-2.2%+8.9%
Q4 2019-21.6%-23.9%-42.9%
Q3 2019-1.9%-5.9%-4.8%
Q2 2019+26.0%+34.7%+28.8%
Q1 2019-10.2%-6.9%+1.1%
Q4 2018-7.2%-4.0%-9.4%
Q3 2018-0.5%+3.3%+16.9%
Q2 2018-4.3%-0.3%+9.6%
Q1 2018-7.6%-7.6%+15.4%
Q4 2017-6.2%-9.5%-14.3%
Q3 2017-1.1%-1.4%-9.6%
Q2 2017+0.5%+13.7%+13.4%
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016

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