Apptio’s cloud-based applications for tracking IT spending propelled the Bellevue company to record-high revenue in its second fiscal quarter, beating analyst expectations for both revenue and earnings per share as it continues to narrow its losses.
Revenue for the quarter was $45.2 million, up 17 percent from the same quarter last year and exceeding analyst expectations of $43.8 million, according to Yahoo Finance. Apptio is still losing money, posting a net loss of $7 million for the quarter, but that compared favorably to a net loss of $9 million a year ago. Excluding one-time items, net loss per share was $0.08, ahead of analyst expectations of net loss per share of $0.12.
Almost a year after its 2016 IPO, Apptio is investing in sales and marketing in hopes of finding new customers for its products, which help companies track how much money they are spending on tech services across their hybrid cloud organizations. However, it’s generating cash, adding just under $2 million to its coffers during the quarter, according to its balance sheet.
As demand for cloud software surges, Apptio is in a unique position to understand how money is flowing to the cloud. Apptio CEO Sunny Gupta told attendees at our GeekWire Cloud Tech Summit last month that customers are increasingly managing multiple cloud providers as part of their IT strategy, and that adds complexity that Apptio hopes to capitalize on with its Cost Transparency and IT Planning apps.
Subscription revenue from those products remains the lion’s share of Apptio’s revenue, coming in at $37.2 million, up 19 percent compared to last year. Revenue from support services attached to those apps was $8 million, a 8 percent increase over the previous year’s second quarter.