Appian Reports 12.4% Revenue Growth, Reduced Net Loss in Q3 2024

Appian Corporation reported its financial results for the third quarter and the nine months ended September 30, 2024, showing notable improvements in revenue and a reduction in net losses compared to the previous fiscal period.

For the three months ended September 30, 2024, Appian generated total revenue of $154.1 million, a 12.4% increase from $137.1 million in the same period of 2023. Subscriptions revenue rose 18.6% to $123.1 million, driven by a $16.8 million increase in cloud subscription revenue. Gross profit for the quarter was $117.0 million, yielding a gross margin of 75.9%, up from 73.7% year-over-year. Operating expenses increased to $124.1 million from $116.2 million, leading to an operating loss of $7.2 million, significantly improved from a loss of $15.2 million in Q3 2023. The net loss for the quarter was $2.1 million, a substantial reduction from $22.3 million in the prior year.

For the nine months ended September 30, 2024, total revenue reached $450.3 million, up 12.6% from $400.0 million in the same period of 2023. Subscriptions revenue for this period increased by 19.3% to $353.8 million. The net loss for the nine months was $78.6 million, compared to $101.4 million in the same period last year, marking a 22.5% improvement.

Appian's total current assets decreased to $360.5 million from $414.4 million at the end of 2023, while total assets fell to $549.9 million from $627.5 million. Long-term debt increased significantly to $243.2 million from $140.2 million, contributing to an accumulated deficit of $(598.5) million, worsening from $(519.9) million at the end of 2023.

The company has also made strategic moves, including a share repurchase program authorized in February 2024, allowing for the repurchase of up to $50 million in common stock. In March 2024, Appian repurchased 1.3 million shares for approximately $50 million. Additionally, the company incurred $5.5 million in severance costs during the nine months ended September 30, 2024, reflecting a reduction in sales and marketing personnel by 21% year-over-year.

Appian continues to focus on expanding its customer base, particularly in sectors such as financial services and government, while investing in its platform and infrastructure to drive long-term growth. The company is also enhancing its international presence, with 36.3% of total revenue for Q3 2024 coming from international customers, up from 35.3% in the prior year.