Appian's Subscription Sales Are Soaring
Appian (NASDAQ: APPN), a software-as-a-service business focused on low-code software, reported its second-quarter results on Thursday. On the surface, Appian's results only look so-so. Total revenue growth was just 12%, which represents a sequential deceleration, and its adjusted net loss was $6.6 million. These aren't the numbers that you'd expected to see from a high-growth software-as-a-service business.
However, a closer look shows that Appian's subscription revenue -- which is both high margin and recurring -- grew 41% to $38 million during the period. That represents a significant sequential acceleration. Professional services revenue, which can be lumpy and is low-margin, only grew 3%. The combination explains why overall revenue growth looks so muted.
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Source Fool.com
