NASDAQ$APPN

Appian Corporation · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Appian's Q3 2023 results showed revenue growth and improved profitability.

Appian announced its Q3 2023 financial results, with total revenue reaching $137.1 million, a 16% increase year-over-year. Cloud subscription revenue grew by 27% to $77.2 million. The company's GAAP operating loss improved to $(15.2) million, and the cloud subscription revenue retention rate was 117%.

  • Cloud subscription revenue increased 27% year-over-year to $77.2 million.
  • Total revenue was $137.1 million, up 16% compared to the third quarter of 2022.
  • GAAP operating loss improved to $(15.2) million, compared to $(37.8) million in Q3 2022.
  • Cloud subscription revenue retention rate was 117% as of September 30, 2023.

Headline financials

Total Revenue

$137M

Previous: $118M+16.0%
EPS (adj)

-$0.20

Previous: -$0.43+53.5%
Capital Expenditures

-$8.28M

Previous: -$5.86M-41.2%
Free Cash Flow

-$30.5M

Previous: -$49.9M+38.8%
Net Income

-$22.3M

Previous: -$44M+49.4%
Operating Income

-$15.2M

Previous: -$37.8M+59.7%
Gross Profit

$101M

Previous: $84.1M+20.1%
Cash & Equivalents

$131M

Previous: $51.8M+152.4%
Total Assets

$597M

Previous: $455M+31.3%
R&D Expense

$37.1M

No prior period
Stock-Based Comp

$11M

Previous: $11.3M-2.9%

Revenue & EPS history

Appian · Revenue · Quarterly

$137M

Q3 2023+16%vs Q3 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Appian · $110M total across 2 segments · Q3 2023

  • Cloud Subscriptions
    $77.2M+27.4%
  • Professional Services
    $33.3M+6.0%

Forward guidance

Appian provided guidance for Q4 2023 and full year 2023.

Tailwinds

  • Cloud subscription revenue is expected to be between $78.6 million and $79.6 million for Q4 2023, representing year-over-year growth of 19% to 21%.
  • Total revenue is expected to be between $138.0 million and $143.0 million for Q4 2023, representing a year-over-year increase of 10% to 14%.
  • Cloud subscription revenue is expected to be between $300.0 million and $301.0 million for full year 2023, representing year-over-year growth of 27%.
  • Total revenue is expected to be between $538.0 million and $543.0 million for full year 2023, representing a year-over-year increase of 15% to 16.
  • Adjusted EBITDA loss is expected to be between $(16.1) million and $(12.1) million for Q4 2023.

Headwinds

  • Adjusted EBITDA loss is expected to be between $(16.1) million and $(12.1) million for Q4 2023.
  • Non-GAAP net loss per share is expected to be between $(0.29) and $(0.24) for Q4 2023, assuming weighted average common shares outstanding of 73.3 million.
  • Adjusted EBITDA loss is expected to be between $(62.0) million and $(58.0) million for full year 2023.
  • Non-GAAP net loss per share is expected to be between $(1.13) and $(1.07) for full year 2023, assuming weighted average common shares outstanding of 73.1 million.
  • Net cash used by operating activities was $(65.0) million for the three months ended September 30, 2023, compared to $(43.7) million for the same period in 2022.

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 2023

Historical avgQ3 2023

-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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