Appian (APPN) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates

Core Insights - Appian (APPN) reported revenue of $166.43 million for the quarter ended March 2025, reflecting an 11.1% increase year-over-year and surpassing the Zacks Consensus Estimate of $162.84 million by 2.20% [1] - The company achieved an EPS of $0.13, a significant improvement from -$0.24 in the same quarter last year, resulting in an EPS surprise of 333.33% compared to the consensus estimate of $0.03 [1] Financial Performance Metrics - Subscriptions gross margin was reported at 88.9%, slightly below the average estimate of 89.4% from two analysts [4] - Professional services gross margin stood at 25.1%, compared to the average estimate of 26% from two analysts [4] - Revenue from professional services was $32.07 million, slightly below the estimated $32.36 million, representing a -0.2% change year-over-year [4] - Revenue from subscriptions reached $134.35 million, exceeding the average estimate of $131.44 million, with a year-over-year increase of 14.2% [4] - Revenue from term license subscriptions was $26.91 million, surpassing the average estimate of $25.37 million, marking a 13.2% year-over-year change [4] - Revenue from maintenance and support subscriptions was $7.61 million, below the estimated $8.21 million, but showing a 4% increase compared to the previous year [4] - Revenue from cloud subscriptions was $99.83 million, exceeding the average estimate of $98.43 million, with a year-over-year growth of 15.3% [4] Stock Performance - Appian's shares have returned +8.3% over the past month, while the Zacks S&P 500 composite has changed by +11.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]