Advertisement
UK markets closed

  • FTSE 100

    8,420.26
    -18.39 (-0.22%)
     

  • FTSE 250

    20,749.90
    -72.94 (-0.35%)
     

  • AIM

    794.02
    +1.52 (+0.19%)
     

  • GBP/EUR

    1.1678
    +0.0023 (+0.20%)
     

  • GBP/USD

    1.2706
    +0.0035 (+0.28%)
     

  • Bitcoin GBP

    52,647.92
    +1,237.16 (+2.41%)
     

  • CMC Crypto 200

    1,350.62
    -23.22 (-1.69%)
     

  • S&P 500

    5,303.27
    +6.17 (+0.12%)
     

  • DOW

    40,003.59
    +134.21 (+0.34%)
     

  • CRUDE OIL

    80.00
    +0.77 (+0.97%)
     

  • GOLD FUTURES

    2,419.80
    +34.30 (+1.44%)
     

  • NIKKEI 225

    38,787.38
    -132.88 (-0.34%)
     

  • HANG SENG

    19,553.61
    +177.08 (+0.91%)
     

  • DAX

    18,704.42
    -34.39 (-0.18%)
     

  • CAC 40

    8,167.50
    -20.99 (-0.26%)
     
Property:

9 houses with great-looking gardens

Check out these homes if inspiring outside space tops your property wish list

Appian Corp (APPN) Q1 2024 Earnings Call Transcript Highlights: Key Financial Metrics and ...

GuruFocus Research
·3-min read

  • Cloud Subscription Revenue: $86.6 million, up 24% year-over-year

  • Total Subscription Revenue: $117.7 million, increased 19% year-over-year

  • Total Revenue: $149.8 million, an 11% increase year-over-year

  • Cloud Subscription Revenue Retention Rate: 120% as of March 31, 2024

  • Adjusted EBITDA: Loss of $1.3 million

  • Professional Services Revenue: $32.1 million, down 11% year-over-year

  • Non-GAAP Gross Margin: 76%

  • Subscriptions Non-GAAP Gross Profit Margin: 90%

  • Professional Services Non-GAAP Gross Margin: 25%

  • Non-GAAP Net Loss: $17.7 million or $0.24 per share

  • Cash and Cash Equivalents: $170.1 million as of March 31, 2024

  • Cash Provided by Operations: $18.9 million

  • Total Deferred Revenue: $226.2 million, up 14% year-over-year

Release Date: May 02, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Cloud subscription revenue grew by 24% year-over-year, reaching $86.6 million, surpassing guidance expectations.

  • Cloud subscription revenue retention rate increased to 120% as of March 31, 2024, indicating strong customer retention and upsell performance.

  • Total revenue grew by 11% year-over-year to $149.8 million, meeting the high end of guidance.

  • Introduction of new products like Process HQ and enhancements in AI capabilities, demonstrating innovation and potential for future growth.

  • Strong partnership with AWS, enhancing Appian's capabilities in enterprise AI usage.

Negative Points

  • Professional services revenue declined by 11% year-over-year, reflecting volatility and potential challenges in project timing.

  • Adjusted EBITDA reported a loss of $1.3 million, indicating ongoing profitability challenges despite improvements.

  • Non-GAAP gross margin for professional services decreased to 25%, down from 34% the previous year, suggesting lower profitability in this segment.

  • The company experienced foreign exchange losses of approximately $11.5 million, impacting financial stability and earnings.

  • Guidance for Q2 2024 suggests a potential adjusted EBITDA loss between $17 million and $13 million, indicating expected continued losses.

Q & A Highlights

Q: Can you provide an update on the current deal environment and how it has evolved recently? A: Matthew Calkins, CEO: The macro environment is workable despite some concerns around U.S. government and international affairs. There's curiosity around AI, but no significant budgets from customers yet.

ADVERTISEMENT

Q: Could you share some feedback from customers about their thoughts on AI investments and the new pricing and packaging changes announced at the conference? A: Matthew Calkins, CEO: The conference had great energy and attendance, and the new pricing approach, which simplifies and raises prices, has been well received. There was appreciation for the new features, and no negative feedback about the changes.

Q: Can you explain the cloud revenue guidance for Q2 and the expected acceleration in the second half of the year? A: Mark Matheos, CFO: The guidance reflects typical seasonality in our business, with Q2 historically being the weakest quarter. The expected acceleration is due to normal business patterns rather than specific factors like pricing increases.

Q: How has the uptake been for your new data fabric solution, and how does it differ from competitors' offerings? A: Matthew Calkins, CEO: The uptake has been very high. Unlike competitors who may offer solutions that integrate only their own data sources, our data fabric solution integrates all enterprise data sources and allows them to be addressed through a common language.

Q: What impact did Q1 bookings have on the financial guidance, and were there any deals that slipped into Q2? A: Mark Matheos, CFO: The bookings in Q1 followed typical seasonal patterns, and there's nothing unusual about the year's bookings so far. The guidance remains consistent with these patterns.

Q: Can you discuss the net revenue retention trends and the impact of go-to-market changes on these metrics? A: Matthew Calkins, CEO: The net revenue retention rate has been encouraging and is within the desired range of 110% to 120%. Recent go-to-market changes are too recent to have impacted this metric significantly, as it is a trailing indicator.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.