Appian Raises Outlook After Revenue Beats Forecast
Second-quarter revenue reached $203.3 million, exceeding Appian’s forecast ceiling by $8.3 million.
Appian Corp. (APPN), the business-software maker, raised its full-year outlook after second-quarter revenue and adjusted profit exceeded the company’s guidance ranges.
Growth moderated from the first quarter as revenue rose 19% from a year earlier, compared with 21% growth in the prior period. Sequential revenue increased 0.5%, while non-GAAP operating margin fell to about 6.7% from 12.1%.
Revenue totaled $203.3 million, and non-GAAP earnings were $0.13 a share, compared with breakeven a year earlier and $0.27 in the first quarter. GAAP net loss widened to $11.8 million from $0.3 million a year earlier, even as the operating loss narrowed to $5.4 million from $11.0 million.
Cloud subscriptions revenue increased 23% to $131.7 million, slowing from 25% growth in the first quarter. Cloud net annual recurring revenue expansion held at 115% for a second consecutive quarter, up from 114% at the end of 2024.
Professional-services revenue rose 20% to $45.6 million, down from growth of 31% in the first quarter and 36% in the fourth quarter. Adjusted earnings before interest, taxes, depreciation and amortization doubled from a year earlier to $16.2 million, then declined 39% sequentially.
Appian now expects full-year cloud subscriptions revenue of $525 million to $529 million, up from its previous range of $515 million to $521 million. It projects total revenue of $845 million to $853 million and adjusted EBITDA of $104 million to $110 million, lifting the respective midpoints by $24 million and $6 million.
The company also raised its full-year non-GAAP earnings forecast to $1.04 to $1.12 a share from $0.94 to $1.05. Higher litigation costs remained a drag: expense rose to $6.3 million in the quarter and $13.2 million for the first half, more than triple the year-earlier six-month amount.