Appian reported third‑quarter 2025 revenue of $187.0 million, a 21 % year‑over‑year increase that surpassed the consensus estimate of $173.8 million by $13.2 million, or 7.6 %. Cloud subscription revenue rose to $113.6 million, up 21 % from $94.4 million in Q3 2024, and accounted for 61 % of total revenue, reflecting the company’s growing share of its recurring top line.
The revenue lift was driven by a combination of higher subscription volumes and a favorable mix shift toward higher‑margin cloud contracts. Appian’s unified low‑code platform, now enhanced with Data Fabric and AI capabilities, attracted new enterprise customers and expanded usage among existing accounts. Retention rates for cloud subscriptions were 111 %, indicating that customers are not only staying but also expanding their spend, which supports the company’s margin profile.
GAAP earnings per share of $0.11 and non‑GAAP EPS of $0.32 beat consensus estimates of $0.05 and $0.06, respectively. The EPS beat was largely a result of disciplined cost management and the pricing power gained from the AI‑enabled platform. While operating expenses grew modestly to $140.5 million, the company’s operating income reached $13.1 million, a turnaround from the $2.1 million loss reported in Q3 2024. The improvement in operating income, combined with a 111 % subscription retention rate, underpins the strong earnings performance.
Management raised its full‑year 2025 revenue outlook to $711.0 million–$715.0 million, up from the previous $705.0 million–$709.0 million range, and guided cloud subscription revenue to $435.0 million–$437.0 million, a 18–19 % increase from the prior guidance of $425.0 million–$427.0 million. The upward revision signals confidence in sustained demand for the platform and the continued monetization of AI features. Adjusted EPS guidance was also increased to $0.50–$0.54, a 62 % lift from the earlier $0.32–$0.36 range, reflecting expectations of higher margin expansion and recurring revenue growth.
Margin performance improved markedly: GAAP operating margin expanded to 7.0 % from 3.5 % in Q3 2024, while adjusted EBITDA rose to $32.2 million from $10.8 million. The margin gains are attributable to the higher mix of cloud subscriptions, which carry higher gross margins, and to effective cost control in sales and marketing. The company’s ability to convert increased revenue into operating profit demonstrates operational leverage and a healthy cost structure.
CEO Matt Calkins said the quarter “demonstrates the power of our AI‑driven platform, with higher prices and a larger pipeline.” CFO Srdjan Tanjga added that “Appian’s AI value proposition resonates in the market, driving both new customer acquisition and expansion among existing accounts.” These comments underscore the strategic focus on AI as a growth engine and a differentiator in the low‑code automation space.
Investors responded positively to the results, citing the strong earnings beat, the raised guidance, and the company’s demonstrated ability to convert cloud subscription growth into higher margins. The market reaction reflects confidence in Appian’s continued execution and the broader demand for AI‑enabled low‑code solutions.
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