A few days ago, we announced Appian's 3rd-Quarter 2013 performance results. It was a record-breaking three months. Total software revenue jumped 31 percent over Q3 last year. Total sales orders hit an all-time Q3 high. That's good enough all on its own - particularly in light of the economic turbulence and spending reductions that continue to confront public and private sector markets. But the big drivers behind our success in the quarter and to-date in 2013 indicate encouraging trends for the future.
Cloud BPM:Our Appian Cloud business continues to accelerate at a dramatic pace. While we are still doing plenty of on-premise business, our cloud revenues increased 70 percent over Q3 2012. Those recurring subscriptions give us ever-greater revenue predictability and visibility, which is great for our business. The cloud model is clearly great for our customers as well, as 4 out of 10 new Appian customers now opt for cloud deployment. There are two reasons Appian Cloud has emerged as the dominant Cloud BPM platform. One is that we provide everything from modeling to execution to continuous improvement in the cloud. More than 90 percent of Appian Cloud customers are using us in production, not just in test environments, for the full design-execute-monitor-optimize cycle. No other Cloud BPM vendor can match that. The other key factor is that our unique Portable Cloud architecture reduces cloud risk. We make it easy to wrap-up and export entire Appian applications from the cloud to behind the firewall, or vice-versa, or to run hybrid Appian programs.
New Geographies:Our U.S. business did very well, despite the lack of the historically strong Q3 Federal buying season. In addition, our investments in oversees business have really paid off. Through September 30 2013, our international revenues increased 70 percent over the same period of the prior year, contributing 30 percent of total company revenues.We have grown our EMEA business with new offices in France and Germany (reporting to Appian Europe in London), while driving more APAC business through our Sydney regional HQ, Melbourne and Singapore offices. We have also taken root in Latin America's largest BPM market, Brazil.
To support this expansion, Appian is aggressively hiring throughout its global operations. So far in 2013, Appian has hired 97 new employees across virtually all departments, from Sales, Professional Services, and Engineering to Marketing, Training, Human Resources and more. Appian's 2013 goal is to hire 120 new employees.
New BPM Markets: Perhaps because our heritage is so rooted in new driving BPM innovations, Appian has seen great success recently in introducing BPM software to new industries that have not historically been BPM users. Pharmaceuticals is a great example. In a very short time, 4 of the 5 largest pharma companies in the world have signed with Appian - a few in the cloud, a few on premise. Transportation is another industry that we have ignited, with organizations like Ryder, Vermont Transit and major airports in the US and abroad. Retail is also a great example, where brand-names like Nike and Oakley have joined Starbucks, Enterprise Rent-A-Car and Amazon.com on Appian's customer roster.
Native Mobile Apps:It is obvious that Appian's leadership in Mobile BPM is driving a lot of our success. Organizations must find a rapid and cost-effective way to get business value from the devices that employees and customers now clearly prefer to desktop computers. Mobile is a major driver for us in just about every market, but particularly in industries like retail, financial services and transportation that have distributed workforces and many consumer-facing business processes.
Our "write once, deploy everywhere" approach, that delivers mobile apps with no specialized mobile development or maintenance, is the key to speed and value for the mobile enterprise. Coupled, as it is, with our zero-training social collaboration interface, Appian is the platform to turn the mobile and social revolutions into real business value.
If you want the real inside track on Appian, the Appian BPM Suite, and where we will take the BPM industry next, hear it all at Appian World 2014, April 30-May 2 at the Grand Hyatt in Washington, DC. Early Bird discounts are on, so register today!
-Ben Farrell, Director, Corporate Communications
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