Appian Corporation (NASDAQ: APPN) reported Q3 EPS of ($0.13), $0.05 better than the analyst estimate of ($0.18). Revenue for the quarter came in at $54.9 million versus the consensus estimate of $49.78 million.

• Revenue: Subscription revenue was $29.4 million for the third quarter of 2018, up 42% compared to the third quarter of 2017. Total subscriptions, software and support revenue increased 36% year-over-year to $30.9 million for the third quarter of 2018. Professional services revenue was $24.0 million for the third quarter of 2018, an increase of 9% year-over-year. Total revenue was $54.9 million for the third quarter of 2018, up 23% compared to the third quarter of 2017. Subscription revenue retention rate was 117% as of September 30, 2018.
• Operating loss and non-GAAP operating loss: GAAP operating loss was $(14.9) million for the third quarter of 2018, compared to $(6.5) million for the third quarter of 2017. Non-GAAP operating loss was $(8.1) million for the third quarter of 2018, compared to $(4.9) million for the third quarter of 2017.
• Net loss and non-GAAP net loss: GAAP net loss was $(15.0) million for the third quarter of 2018, compared to $(6.3) million for the third quarter of 2017. GAAP net loss per share attributable to common stockholders was $(0.24) for the third quarter of 2018 based on 62.5 million weighted-average shares outstanding, compared to $(0.10) for the third quarter of 2017 based on 60.2 million weighted-average shares outstanding. Non-GAAP net loss was $(8.2) million for the third quarter of 2018, compared to $(4.7) million for the third quarter of 2017. Non-GAAP net loss per share was $(0.13) for the third quarter of 2018, based on 62.5 million basic and diluted shares outstanding, compared to $(0.08) for the third quarter of 2017, based on 60.2 million basic and diluted shares outstanding.
• Balance sheet and cash flows: As of September 30, 2018, Appian had cash and cash equivalents of $107.3 million, inclusive of $57.8 million net cash raised in the company’s underwritten public offering of Class A Common Stock on August 23, 2018. Cash used in operating activities was $(0.3) million for the three months ended September 30, 2018, compared with cash used in operating activities of $(4.4) million for the three months ended September 30, 2017.

"In the third quarter, our subscription revenue grew 42% year-over-year and our subscription revenue retention rate remained high at 117%. We continue to demonstrate that our platform is the most accessible in the market. More companies are finding us to be the fastest way to build and deploy unique software to run their business," said Matt Calkins, CEO & Founder.

GUIDANCE:

Appian Corporation sees FY2018 EPS of ($0.56)-($0.54), versus the consensus of ($0.61). Appian Corporation sees FY2018 revenue of $221.6-222.6 million, versus the consensus of $214.73 million.

For earnings history and earnings-related data on Appian Corporation (APPN) click here.