Appian Corp, a cloud computing and enterprise software company, recently announced its fourth-quarter FY21 financial results, showcasing impressive revenue growth and beating market expectations. The company reported a year-on-year revenue increase of 16% to $145.3 million, surpassing the consensus estimate of $140.9 million.
Additionally, Appian Corp achieved an adjusted EPS loss of $0.06, outperforming the consensus loss of $(0.24). Following the announcement, the stock price experienced a positive surge.
One of the key factors contributing to Appian’s growth was its total subscription revenue, which includes sales of SaaS subscriptions, on-premises term license subscriptions, and maintenance and support. This revenue stream witnessed a significant 24% year-on-year increase, reaching $115.8 million. However, professional services revenue declined by 9% to $29.5 million.
CEO Matt Calkins expressed his satisfaction with the company’s performance, highlighting two significant milestones achieved in 2023. Appian Corp generated revenue exceeding half a billion dollars for the full year, and it achieved its highest quarterly gross margin in history.
Looking ahead, Appian Corp provided its outlook for the first quarter and FY24. The company expects first-quarter revenue in the range of $148.00 million to $150.00 million, slightly below the consensus estimate of $150.84 million. Furthermore, Appian projects an adjusted EPS loss of $(0.21) to $(0.16), compared to the consensus loss of $(0.17).
For the full fiscal year 2024, Appian Corp anticipates revenue between $615.00 million and $617.00 million, falling short of the consensus estimate of $618.17 million. The company also projects an adjusted EPS loss in the range of $(0.73) to $(0.66), while the consensus loss stands at $(0.60).
Despite the slightly lower revenue and earnings forecasts for FY24, investors responded positively to Appian Corp’s strong performance in the fourth quarter. The company’s shares traded higher by 12.3% at $37.50 premarket on the last check Thursday, indicating investor confidence in its future prospects.
In conclusion, Appian Corp’s fourth-quarter FY21 financial results showcased impressive revenue growth and exceeded market expectations. The company’s strong subscription revenue and achievement of significant milestones demonstrate its ability to thrive in the cloud computing and enterprise software industry. With a positive market response and a solid outlook for the future, Appian Corp appears to be on a promising trajectory.
