Why Appian Stock Is Plunging Today
In response to the company announcing fourth-quarter 2019 results that missed the mark, shares of Appian (NASDAQ: APPN), a software-as-a-service company focused on low-code software, fell 21% as of 2:36 p.m. EST on Friday.
Appian adopted a new accounting standard called ASC 606 in 2019 that makes its year-over-year comparisons a bit wonky. That's because ASC 606 alters the timing of revenue recognition when compared with its old accounting standard (called ASC 605), which negatively affects Appian's revenue and profitability.
Investors need to remember this when looking at Appian's fourth-quarter results, but here are the headline numbers from the period as presented in ASC 606, the new accounting standard:
Source Fool.com
