Appian(US:APPN)2025-11-06 12:20Revenue Growth - Cloud subscriptions revenue increased 21% year-over-year to $113.6 million for Q3 2025[1] - Total revenue for Q3 2025 was $187.0 million, reflecting a 21% year-over-year increase[4] - Professional services revenue rose 29% year-over-year to $39.8 million in Q3 2025[4] - Total revenue for the three months ended September 30, 2025, was $187,004,000, representing a 21.4% increase from $154,052,000 in the same period of 2024[20] - Subscription revenue increased to $147,188,000 for the three months ended September 30, 2025, up 19.5% from $123,121,000 in the prior year[20] - For the nine months ended September 30, 2025, total revenue was $49,138 million, compared to $38,973 million for the same period in 2024, representing an increase of approximately 26%[28] Profitability - GAAP net income for Q3 2025 was $7.8 million, compared to a net loss of $(2.1) million in Q3 2024[4] - Non-GAAP net income for Q3 2025 was $24.4 million, up from $1.8 million in Q3 2024[4] - Net income for the three months ended September 30, 2025, was $7,825,000, compared to a net loss of $2,100,000 in the same period of 2024[20] - Operating income for the three months ended September 30, 2025, was $13,114,000, a significant improvement from an operating loss of $7,157,000 in the prior year[20] - Net income for the nine months ended September 30, 2025, was $34,449 million, compared to a net loss of $22,577 million for the same period in 2024, indicating a turnaround in profitability[28] - The company reported a basic net income per share of $0.47 for the nine months ended September 30, 2025, compared to a loss of $0.31 per share in the same period of 2024[28] Guidance and Future Outlook - Full year 2025 guidance for cloud subscriptions revenue is expected to be between $435.0 million and $437.0 million, representing 18% to 19% year-over-year growth[8] - Total revenue guidance for full year 2025 is expected to be between $711.0 million and $715.0 million, indicating a 15% to 16% year-over-year increase[8] - Fourth quarter 2025 guidance for total revenue is expected to be between $187.0 million and $191.0 million, representing a year-over-year increase of 12% to 15%[8] - The company plans to continue focusing on market expansion and new product development to sustain growth momentum in the upcoming quarters[28] Cash Flow and Financial Position - Cash and cash equivalents increased to $125,249,000 as of September 30, 2025, from $118,552,000 at the end of 2024[24] - Total assets decreased slightly to $611,735,000 as of September 30, 2025, from $621,039,000 at the end of 2024[18] - Total liabilities increased to $660,279,000 as of September 30, 2025, compared to $653,679,000 at the end of 2024[18] - Cash flows from operating activities for the nine months ended September 30, 2025, were $61,737,000, compared to a cash outflow of $6,993,000 in the prior year[24] Operating Expenses and Cost Management - Total operating expenses decreased to $128,597 million, down from $137,234 million, representing a reduction of 6.3% year-over-year[26] - Total operating expenses for the nine months ended September 30, 2025, were $351,090 million, down from $350,716 million in the same period of 2024, indicating effective expense control despite revenue growth[28] - The cost of subscriptions as a percentage of revenue decreased from 39,614 million in 2024 to 49,810 million in 2025, reflecting improved cost management[28] Stockholder and Legal Expenses - The company reported stock-based compensation expense of $10,260,000 for the three months ended September 30, 2025, up from $9,505,000 in the same period of 2024[22] - The company incurred litigation expenses of $6,324 million for the nine months ended September 30, 2025, compared to $3,442 million in the same period of 2024, indicating increased legal costs[29]