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Investing.com -- Appian (NASDAQ:APPN) Corporation (NASDAQ: APPN) stock climbed 20% following a positive fourth-quarter earnings report and an encouraging financial outlook for the upcoming year. The company reported earnings per share (EPS) of $0.00 for the fourth quarter, surpassing analyst expectations by $0.01. Revenue for the quarter reached $166.7 million, which was above the consensus estimate of $164.36 million and represented a 15% increase compared to the same period last year.
Appian’s guidance for the first quarter of 2025 forecasts EPS between $0.02 and $0.05, which is significantly higher than the consensus estimate of a $0.39 loss. For the full fiscal year 2025, the company anticipates EPS to be between $0.17 and $0.22, compared to the consensus estimate of $0.12. Furthermore, Appian expects first-quarter revenue to be between $162 million and $164 million, compared to the consensus of $166.9 million. The full-year revenue guidance is set at $680 million to $684 million, closely aligning with the consensus estimate of $682.8 million.
The company’s strong performance is highlighted by a 19% year-over-year increase in cloud subscription revenue, amounting to $98.9 million for the fourth quarter. Total (EPA:TTEF) subscription revenue, including cloud subscriptions, on-premises term license subscriptions, and maintenance and support, rose by 18% to $136.8 million. Professional services revenue also saw a slight increase of 1% from the previous year, reaching $29.9 million.
For the full year of 2024, Appian reported cloud subscription revenue of $368.0 million, marking a 21% increase from the previous year. Total subscriptions revenue for the year was up 19% to $490.6 million. The company’s adjusted EBITDA for the fourth quarter was $21.2 million, a significant improvement from the $1.0 million reported in the same quarter of the previous year.
Analysts have provided mixed reactions to Appian’s financial results and guidance. TD Cowen’s Derrick Wood commented, "1Q25 guide was below Street estimates while FY25 guide was in-line and likely better than feared." This sentiment reflects a cautious optimism, acknowledging the company’s conservative approach to guidance that still aligns with expectations.
Investors seem to be responding positively to Appian’s performance and future prospects, as reflected in the stock’s significant rise. The company’s focus on efficiency and value creation through AI, as described by CEO Matt Calkins, appears to resonate with the market, positioning Appian for continued growth in the evolving tech landscape.
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