Appian's Cloud Growth Blasts Through Expectations: What's Next for the Stock?

Low-code provider Appian’s latest report results in massive run-up of the stock

  • 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.

Read more here: Appian’s Cloud Growth Blasts Through Expectations: What’s Next for the Stock?

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