Apptio’s third-quarter earnings results showed that the company is still on a path of strong revenue growth and narrowing losses.
The Bellevue-based company reported third-quarter revenue of $47 million Monday, up 16 percent from the prior year. That was ahead of analyst expectations of $44.9 million, and investors gave Apptio’s stock a slight boost in after-hours trading.
Apptio lost $5.2 million in the quarter according to GAAP (generally accepted accounting principles) measures, or $0.13 a share, but backing out stock-based compensation produced a net loss of 2 cents a share, significantly better than analyst expectations of a 10 cent loss per share.
Subscription revenue for Apptio’s financial-management application rose 18 percent during the quarter to $39.4 million, a slightly faster year-over-year increase in that category compared to its second quarter. The company’s products help finance organizations inside companies understand where their cloud expenses are going, which is attractive in an era when IT staff and developers can quickly and easily sign up for new cloud services with the company credit card.
Apptio brought on a new engineering leader during the quarter, with Theo Beack joining the company as executive vice president of products and engineering. Ted Kummert, who had been leading the group, rejoined Madrona Venture Group as a partner at the same time.
[Note: References to non-GAAP earnings and analysts’ profit expectations corrected since original post.]
