Apptio exceeded analyst expectations for revenue and profit during its second-ever quarter as a public company.
The Bellevue, Wash.-based company posted revenue of $44.3 million during the fourth quarter of 2016, up 27 percent year-over-year, and non-GAAP earnings per share of -$0.11, down from -$0.84 at this time last year.
Analysts expected EPS of -$0.22 on revenue of $42 million.
“Our fourth quarter was highlighted by record revenue and the continued strength of our subscription revenue, which grew by 30% in 2016,” Apptio CEO Sunny Gupta said in a statement. “Cloud adoption and IT transformation continue to be catalysts and we believe the market is hearing our message regarding the power of TBM.”
Apptio, which makes software to help CIOs better understand spending in IT departments, went public in September and raised $99.1 million. Its stock soared more than 40 percent on its first day but came down to earth the following week and is now down nearly 25 percent since the IPO, trading around $17 on Thursday.
Update: Shares sunk more than 16 percent at one point in after-hours trading during the company’s post-earnings call with analysts, but are now down 3 percent. Gupta noted that Apptio suffered a specific customer loss, so that could be one reason for the dip.
For 2016 as a whole, Apptio’s revenue topped $160 million, up 24 percent from 2015 and the company’s third-straight year surpassing $100 million in revenue. Apptio has yet to turn a profit but losses appear to be slowing, as losses in 2016 reached $17 million, down from the nearly $32 million it lost in 2015.
Apptio expects revenue between $42-to-$45 million for the current quarter and a non-GAAP operating loss between $4-to-$4.5 million. It expects revenue for full-year 2017 between $178-to-$181 million, and a non-GAAP operating loss between $15-to-$18 million.