- Third-quarter 2020 cloud subscription revenue increased 40% to $34.3 million, handily beating management’s expectations for as much as $31.9 million.
- The adjusted bottom line also bested the outlook and reached break-even.
- Flush with cash, Appian is a company enabling rapid change as the world adapts to new realities brought about by COVID-19.
Shares of low-code software and software robotics platform Appian (NASDAQ:APPN) were up double-digit percentages the day after reporting third-quarter 2020 results last week. The stock is up 140% year to date as of this writing, erasing worries in the spring that effects from the coronavirus pandemic would weigh heavily on the company’s customers — and thus on Appian’s growth trajectory.
Appian’s total revenue increased 17% year over year during Q3 to $77.3 million. So why the massive run-up in share prices? It all has to do with subscription services, which made up two-thirds of total sales during the period and continuously comprise a larger piece of the whole as the company’s primary growth driver (the balance made up of unpredictable “professional services” revenue). Total subscription sales specifically increased by 34% to $50.8 million.
Paired with the first half of 2020, this small software vendor is having a more than respectable showing during a challenging year.