Appian Corporation

Appian Corporation managed to surpass the revenue expectations and the earnings expectations of Wall Street. Appian reported a 31% year-over-year increase in cloud subscription revenue in the quarter, reaching $69.7 million. Overall subscription revenue came close to crossing the $100 million mark but ended up being $99.0 million. It was influenced by a larger mix of new cloud bookings during the quarter as well as by reduced on-prem license revenue, as some customers switched to the cloud this quarter. Total income increased in the quarter. Cost subscription revenue exceeded expectations. The reported number of $36.3 million in professional services revenue represented a 19% year-over-year increase. New, substantial projects with long-standing clients and the recognition of revenue from Q4 helped boost services revenue this quarter. Cloud subscription revenue is anticipated to reach $72 million to $74 million in the second quarter of 2023, reflecting a 26% to 30% increase year over year. Besides that, in the quarter, the company announced the launch of a new partner program to assist partner growth, market distinctiveness, and the success of its shared customers. We give Appian Corporation a ‘Hold’ rating with a revised target price.