NASDAQ$APPN

Appian Corporation · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

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.

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.

Headline financials

Total Revenue

$118M

Previous: $92.4M+27.5%
EPS (adj)

-$0.43

Previous: -$0.22-95.5%
Capital Expenditures

-$5.86M

Previous: -$2.47M-137.0%
Free Cash Flow

-$49.9M

Previous: -$27.9M-79.0%
Net Income

-$44M

Previous: -$25.4M-73.3%
Operating Income

-$37.8M

Previous: -$22.9M-65.0%
Gross Profit

$84.1M

Previous: $65.9M+27.6%
Cash & Equivalents

$51.8M

Previous: $127M-59.3%
Total Assets

$455M

Previous: $494M-8.1%
Stock-Based Comp

$11.3M

Previous: $5.2M+118.0%

Revenue & EPS history

Appian · Revenue · Quarterly

$118M

Q3 2022+27.5%vs Q3 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Appian · $92M total across 2 segments · Q3 2022

  • Cloud Subscriptions
    $60.6M+29.8%
  • Professional Services
    $31.4M+24.7%

Forward guidance

Appian provided guidance for Q4 2022 and full year 2022.

Tailwinds

  • 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

Headwinds

  • 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.

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 2022

Historical avgQ3 2022

-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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