APPN Stock: Over 10% Decrease Pre-Market Explanation

By Amit Chowdhry ● May 7, 2021
  • The stock price of Appian Corp (NASDAQ: APPN) fell by over 10% pre-market. This is why it happened.

The stock price of Appian Corp (NASDAQ: APPN) fell by over 10% pre-market. Investors are responding negatively to the company’s first-quarter 2021 financial results.

Q1 2021 Financial Highlights:

— Cloud subscription revenue was $39.1 million for the first quarter of 2021, up 38% compared to the first quarter of 2020. Total subscriptions revenue, which includes sales of the company’s SaaS subscriptions, on-premises term license subscriptions, and maintenance and support, increased 26% year-over-year to $63.8 million for the first quarter of 2021. And professional services revenue was $25.1 million for the first quarter of 2021, compared to $28.4 million for the first quarter of 2020. Total revenue was $88.9 million for the first quarter of 2021, up 13% compared to the first quarter of 2020. Cloud subscription revenue retention rate was 118% as of March 31, 2021.

— Operating loss and non-GAAP operating loss: GAAP operating loss was $(10.5) million for the first quarter of 2021, compared to $(8.6) million for the first quarter of 2020. Non-GAAP operating loss was $(0.9) million for the first quarter of 2021, compared to $(5.1) million for the first quarter of 2020.

— Net loss and non-GAAP net loss: GAAP net loss was $(13.6) million for the first quarter of 2021, compared to $(11.7) million for the first quarter of 2020. GAAP net loss per share was $(0.19) for the first quarter of 2021, based on 70.7 million weighted-average shares outstanding, compared to $(0.17) for the first quarter of 2020, based on 67.5 million weighted-average shares outstanding. Non-GAAP net loss was $(4.0) million for the first quarter of 2021, compared to $(8.2) million for the first quarter of 2020. Non-GAAP net loss per share was $(0.06) for the first quarter of 2021, based on 70.7 million basic and diluted shares outstanding, compared to the $(0.12) net loss per share for the first quarter of 2020, based on 67.5 million basic and diluted shares outstanding.

— Adjusted EBITDA: Adjusted EBITDA was $0.4 million for the first quarter of 2021, compared to adjusted EBITDA loss of $(3.6) million for the first quarter of 2020.

— Balance sheet and cash flows: As of March 31, 2021, Appian had total cash, cash equivalents, and investments of $255.1 million. Net cash used in operating activities was $(2.8) million for the three months ended March 31, 2021 compared to $(3.9) million of net cash used in operating activities for the same period in 2020.

Q2 2021 Guidance:

— Cloud subscription revenue is expected to be in the range of $41.0 million and $41.5 million, representing year-over-year growth of between 39% and 40%.

— Total revenue is expected to be in the range of $77.0 million and $78.0 million, representing a year-over-year increase of between 15% and 17%.

— Adjusted EBITDA loss is expected to be in the range of $(16.0) million and $(14.0) million.

— Non-GAAP net loss per share is expected to be in the range of $(0.26) and $(0.23), assuming weighted average common shares outstanding of 71.0 million.

Full Year 2021 Guidance:

— Cloud subscription revenue is expected to be in the range of $171.0 million and $172.0 million, representing year-over-year growth of between 32% and 33%.

— Total revenue is expected to be in the range of $353.0 million and $355.0 million, representing a year-over-year increase of between 16% and 17%.

— Adjusted EBITDA loss is expected to be in the range of $(38.0) million and $(36.0) million.

— Non-GAAP net loss per share is expected to be in the range of $(0.68) and $(0.65), assuming weighted average common shares outstanding of 71.2 million.

KEY QUOTE:

“Once again, we exceeded our guidance, grew cloud subscription revenue by 38%, and set a new high mark for gross profit margin. Appian leads in unifying the Low-code Automation market and providing agility to our customers.”

— Matt Calkins, CEO & Founder

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.