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Appian's (APPN) Loss Narrows in Q4, Revenues Increase Y/Y
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Appian (APPN - Free Report) reported fourth-quarter 2020 adjusted loss of 3 cents per share, narrower than the adjusted loss of 11 cents per share posted in the year-ago quarter. The Zacks Consensus Estimate for adjusted loss for the quarter was pegged at 17 cents per share.
Revenues of $81.6 million beat the consensus mark by 11%. Moreover, the figure increased 19% year over year.
The top line benefited from higher customer wins driven by the robust adoption of the company’s low-code automation platform.
In addition, significant contributions from a solid partner base, including Box (BOX - Free Report) , Alphabet (GOOGL - Free Report) , Accenture (ACN - Free Report) , KPMG, Cognizant and Deloitte, which spurred demand for Appian’s solutions, was a major growth driver.
Appian Corporation Price, Consensus and EPS Surprise
Subscription revenues climbed 33.2% year over year to $56.1 million. However, Professional service revenues declined 3.7% year on year to $25.5 million.
Within Subscription revenues, revenues from cloud subscriptions surged 40% from the year-ago reported figure to $36.9 million. Revenues from on-premises term license subscriptions, along with maintenance and support, jumped 24.6% and 14.1% year over year, respectively to $14.4 million and $4.7 million, respectively.
Markedly, as of Dec 31, 2020, the Cloud subscription revenue retention rate came in at 119% compared with 115% as of Sep 30, 2020.
Notably, in 2020, the company expanded its customer base by adding 167 net new subscription customers, adding 50% more customers from 2019.
Operating Details
Gross profit for the reported quarter came in at $59.7 million, up 30.2% year over year. Also, the gross margin expanded 630 basis points (bps) year over year to 73.1%.
Selling and marketing expenses flared up 13.3% year over year to $35.4 million. Research and development expenses shot up 20.8% year on year to $18.9 million. General and administrative expenses went up 25.3% year over year to $15.1 million.
On a non-GAAP basis, operating loss was $5.1 million, lower than the year-ago quarter’s reported operating loss of $9.7 million.
Adjusted EBITDA loss was $3.7 million in the reported quarter compared with the year-ago quarter’s $8.2 million.
Balance Sheet & Other Details
As of Dec 31, 2020, Appian had cash and cash equivalents worth $112.5 million compared with $251.1 million as of Sep 30, 2020.
In the fourth quarter, cash used in operating activities came in at $7.6 million compared with the year-ago quarter’s $8.9 million.
Guidance
For first-quarter 2021, this Zacks Rank #4 (Sell) company projects revenues in the range of $81.7-$82.7 million, suggesting year-over-year growth of 4-5%. Cloud subscription revenues are estimated between $37.7 million and $38.2 million, indicating a 33-35% year-over-year jump.
Further, adjusted EBITDA loss is anticipated between $8 million and $9 million. Also, adjusted loss per share is expected in the 13-15 cents band.
For 2021, Appian expects revenues to lie between $353 million and $355 million, calling for growth of 16-17% year over year. Cloud subscription revenues are projected at $167.5-$169.5 million, suggesting a 30-31% year-on-year increase.
Adjusted EBITDA loss is predicted between $36 million and $38 million. Also, adjusted loss per share is expected in the 60-64 cents band.
Strong adoption of Appian’s low-code automation platform among existing customers as well as an expanding customer base led by contributions from the company’s partnerships is likely to continue fueling top-line growth.
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Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Appian's (APPN) Loss Narrows in Q4, Revenues Increase Y/Y
Appian (APPN - Free Report) reported fourth-quarter 2020 adjusted loss of 3 cents per share, narrower than the adjusted loss of 11 cents per share posted in the year-ago quarter. The Zacks Consensus Estimate for adjusted loss for the quarter was pegged at 17 cents per share.
Revenues of $81.6 million beat the consensus mark by 11%. Moreover, the figure increased 19% year over year.
The top line benefited from higher customer wins driven by the robust adoption of the company’s low-code automation platform.
In addition, significant contributions from a solid partner base, including Box (BOX - Free Report) , Alphabet (GOOGL - Free Report) , Accenture (ACN - Free Report) , KPMG, Cognizant and Deloitte, which spurred demand for Appian’s solutions, was a major growth driver.
Appian Corporation Price, Consensus and EPS Surprise
Appian Corporation price-consensus-eps-surprise-chart | Appian Corporation Quote
Segment Details
Subscription revenues climbed 33.2% year over year to $56.1 million. However, Professional service revenues declined 3.7% year on year to $25.5 million.
Within Subscription revenues, revenues from cloud subscriptions surged 40% from the year-ago reported figure to $36.9 million. Revenues from on-premises term license subscriptions, along with maintenance and support, jumped 24.6% and 14.1% year over year, respectively to $14.4 million and $4.7 million, respectively.
Markedly, as of Dec 31, 2020, the Cloud subscription revenue retention rate came in at 119% compared with 115% as of Sep 30, 2020.
Notably, in 2020, the company expanded its customer base by adding 167 net new subscription customers, adding 50% more customers from 2019.
Operating Details
Gross profit for the reported quarter came in at $59.7 million, up 30.2% year over year. Also, the gross margin expanded 630 basis points (bps) year over year to 73.1%.
Selling and marketing expenses flared up 13.3% year over year to $35.4 million. Research and development expenses shot up 20.8% year on year to $18.9 million. General and administrative expenses went up 25.3% year over year to $15.1 million.
On a non-GAAP basis, operating loss was $5.1 million, lower than the year-ago quarter’s reported operating loss of $9.7 million.
Adjusted EBITDA loss was $3.7 million in the reported quarter compared with the year-ago quarter’s $8.2 million.
Balance Sheet & Other Details
As of Dec 31, 2020, Appian had cash and cash equivalents worth $112.5 million compared with $251.1 million as of Sep 30, 2020.
In the fourth quarter, cash used in operating activities came in at $7.6 million compared with the year-ago quarter’s $8.9 million.
Guidance
For first-quarter 2021, this Zacks Rank #4 (Sell) company projects revenues in the range of $81.7-$82.7 million, suggesting year-over-year growth of 4-5%. Cloud subscription revenues are estimated between $37.7 million and $38.2 million, indicating a 33-35% year-over-year jump.
Further, adjusted EBITDA loss is anticipated between $8 million and $9 million. Also, adjusted loss per share is expected in the 13-15 cents band.
For 2021, Appian expects revenues to lie between $353 million and $355 million, calling for growth of 16-17% year over year. Cloud subscription revenues are projected at $167.5-$169.5 million, suggesting a 30-31% year-on-year increase.
Adjusted EBITDA loss is predicted between $36 million and $38 million. Also, adjusted loss per share is expected in the 60-64 cents band.
Strong adoption of Appian’s low-code automation platform among existing customers as well as an expanding customer base led by contributions from the company’s partnerships is likely to continue fueling top-line growth.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>