Appian stock sinks 19% as guidance narrowed to reflect ongoing forex headwinds

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Appian (NASDAQ:APPN) stock sank 19.3% on Friday after the cloud computing firm narrowed its FY22 guidance and provided Q4 outlook below estimates as it expects currency headwinds to continue to drag earnings.

The company expects FY22 revenue of $461M-$466M (prior outlook was $466M-$470M), up 25-26% Y/Y. Cloud subscription revenue is projected to be $235M-$236M, up 31-32%.

FY22 adj. loss per share is expected to be $1.30-$1.36 (earlier guidance was $0.91-$0.86).

Appian (APPN) expects Q4 revenue of $121.5M-$123.5M, up 16-18%, and cloud subscription revenue of $63.5M-$64.5M, up 24-26%. Adj. loss per share is estimated to be $0.36-$0.42.

Appian (APPN) posted a big miss on Q3 adj. earnings amid forex headwinds and higher expenses, driven by hiring surge and a sharp drop in attrition. Forex losses were ~$6.1M in Q3 vs. $2.3M in Q3 2021.

In a post-earnings call, CEO Matt Calkins guided for Q4 adj. EBITDA loss at 21.6%. “We intend to cut it in half over the next 12 months. We plan to reduce the loss to 10% by H2 2023,” he added.

“Beginning in Q4, we are capping any discretionary related expenses in the current macro environment,” said CFO Mark Matheos.

Shares of Appian (APPN) declined 40.1% YTD.

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