EXHIBIT 99.1

Apptio Announces Results for the Third Quarter of 2017

Reported Q3 revenue of $47.0 million and strong cash flow

Bellevue, WA (October 30, 2017) - Apptio, Inc. (NASDAQ:APTI), the business management system of record for hybrid IT, today announced results for the quarter ended September 30, 2017.

"In the third quarter, we achieved record revenue of $47.0 million and returned our trailing twelve months subscription net dollar retention to approximately 100%,” said Sunny Gupta, co-founder and CEO, Apptio. “Our value proposition is resonating with companies of all sizes, as is evidenced by our third quarter customer acquisitions, the early success of our new IT Financial Management (ITFM) Foundation offering, and our strong competitive position.”

Third Quarter Financial Summary

• Subscription revenue was $39.4 million, an increase of 18% from the third quarter of 2016, and comprised 84% of total revenue. Services revenue was $7.6 million, an increase of 4% from the third quarter of 2016. Total revenue was $47.0 million, an increase of 16% from the third quarter of 2016.

• GAAP gross margin was 70%, a significant improvement from the third quarter of 2016 GAAP gross margin of 66%.  Non-GAAP gross margin improved to 72%, as compared to non-GAAP gross margin of 67% in the third quarter of 2016.

• GAAP operating margin was negative 11%, improving from GAAP operating margin of negative 17% in the third quarter of 2016. Non-GAAP operating margin improved to negative 2%, as compared to non-GAAP operating margin of negative 11% in the third quarter of 2016. 

• GAAP net loss per basic and diluted share was $0.13 based on 40.1 million weighted average shares outstanding, compared to a GAAP net loss per basic and diluted share of $0.63 based on 13.9 million weighted average shares outstanding in the third quarter of 2016.

• Non-GAAP net loss per basic and diluted share was $0.02 based on 40.1 million weighted average shares outstanding, compared to a non-GAAP net loss per basic and diluted share of $0.45 based on 13.9 million weighted average shares outstanding in the third quarter of 2016.

• For the three months ended September 30, 2017, net cash provided by operating activities was $9.1 million as compared to net cash used in operating activities of $0.8 million in the comparable period last year. Free cash flow was $8.5 million, as compared to negative $2.0 million in the three months ended September 30, 2016.

• Cash, cash equivalents and marketable securities were approximately $135.5 million as of September 30, 2017.

Business Highlights

• Launched ITFM Foundation to address the specific needs of IT finance professionals. The offering combines the capabilities from our Cost Transparency and IT Planning applications, allowing IT leaders to make informed planning decisions, reduce risk to the business and shift spending toward innovation.

• Saw continued momentum in the Public sector, as evidenced by recent customer additions and a commitment from the CIO Council, the General Services Administration, and the Office of the Federal CIO to guide agency adoption of TBM.

• We are excited about the TBM Conference beginning on November 6 in Las Vegas.  We expect over 1,000 technology and finance leaders to attend.

Financial Outlook

Apptio provides guidance based on current market conditions and expectations and actual results may differ materially. Please refer to the company’s comments below regarding Forward Looking Statements. Apptio is initiating guidance for the fourth quarter ending December 31, 2017 and for the full year 2017 as follows:

Fourth quarter of 2017:

• Total revenue is expected to be in the range of $49.5 to $50.0 million

• Non-GAAP operating loss between $3.5 and $4.0 million

Full year 2017:

• Total revenue is expected to be in the range of $185.7 and $186.2 million

• Non-GAAP operating loss between $10.9 and $11.4 million

All forward-looking non-GAAP financial measures contained in this section titled "Financial Outlook" exclude the effects of stock-based compensation expense.

Conference Call Information

Apptio plans to host a conference call today to discuss the results. The call is scheduled to begin at 2:00 p.m. PT/ 5:00 p.m. ET and can be accessed by dialing 844-233-0116 (passcode: 95458380), or if outside North America, by dialing 574-990-1011 (passcode: 95458380). Individuals may also access the live teleconference from the investor relations section of the Apptio website at investors.apptio.com. A replay will be available following completion of the live broadcast.

About ApptioApptio (NASDAQ: APTI) is the business management system of record for hybrid IT. We transform the way IT runs its business and makes decisions. With our cloud-based applications, IT leaders manage, plan and optimize their technology investments across on-premises and cloud. With Apptio, IT leaders become strategic partners to the business by demonstrating the value of IT investments, accelerate innovation and shift their technology investments from running the business to digital innovation. Hundreds of customers choose Apptio as their business system of record for hybrid IT. For more information, please visit www.Apptio.com.

Forward-Looking Statements This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding our strategy, prospects,customer demand, application adoption and our financial outlook for the fourth quarter of, and full year, 2017. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the caption "Risk Factors" and elsewhere in our filings with the U.S. Securities and Exchange Commission, including, without limitation, the Form 10-Q filed with the SEC on August 3, 2017.  All information provided in this release and in the attachments is as of the date hereof, and we undertake no duty to update this information unless required by law.

Non-GAAP Financial Measures To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP), we use the following non-GAAP financial measures: non-GAAP gross margin, non-GAAP operating loss, non-GAAP net loss per basic and diluted share, and free cash flow. In computing these measures, with the exception of free cash flow, we exclude the effects of stock-based compensation expense. We define free cash flow as net cash used in operating activities, less the purchases of property and equipment. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies.

We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and expenditures that may not be indicative of our ongoing core business operating results. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when analyzing historical performance and liquidity and planning, forecasting, and analyzing future periods.

For a reconciliation of these non-GAAP financial measures to GAAP measures, please see the tables captioned "Results of Operations GAAP to Non-GAAP Reconciliation" included at the end of this release. We have not reconciled guidance for non-GAAP metrics to their most directly comparable GAAP measures because such items that impact these measures are not within our control or cannot be reasonably predicted.

Apptio, Inc.

Condensed Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2017			2016			2017			2016
Revenue
Subscription	$	39,426		$	33,314		$	112,860		$	94,995
Professional services		7,570			7,313			23,292			21,254
Total revenue		46,996			40,627			136,152			116,249
Cost of revenue
Subscription		7,167			6,921			22,269			19,960
Professional services		6,763			7,068			21,599			19,780
Total cost of revenue		13,930			13,989			43,868			39,740
Gross profit		33,066			26,638			92,284			76,509
Operating expenses
Research and development		10,139			9,015			30,060			26,072
Sales and marketing		20,863			18,300			60,983			54,256
General and administrative		7,188			6,285			20,342			16,969
Total operating expenses		38,190			33,600			111,385			97,297
Loss from operations		(5,124	)		(6,962	)		(19,101	)		(20,788	)
Other income (expense)
Interest income (expense) and other, net		311			(1,312	)		811			(1,746	)
Foreign exchange gain (loss)		105			(367	)		173			(774	)
Loss before provision for income taxes		(4,708	)		(8,641	)		(18,117	)		(23,308	)
Provision for income taxes		(463	)		(114	)		(614	)		(328	)
Net loss	$	(5,171	)	$	(8,755	)	$	(18,731	)	$	(23,636	)
Net loss per share attributable to common stockholders, basic and diluted	$	(0.13	)	$	(0.63	)	$	(0.48	)	$	(1.78	)
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted		40,120			13,884			39,240			13,307

Apptio, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

	September 30,			December 31,
	2017			2016
Assets
Current assets
Cash and cash equivalents	$	29,279		$	42,007
Short-term investments		106,249			36,741
Accounts receivable, net of allowance for doubtful accounts
of $305 and $122		46,136			58,587
Prepaid expenses and other current assets		5,530			5,440
Total current assets		187,194			142,775
Long-term assets
Property and equipment, net of accumulated depreciation
of $20,982 and $17,091		11,168			12,827
Long-term investments		--			38,446
Other long-term assets		944			734
Total assets	$	199,306		$	194,782
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	3,995		$	3,574
Accrued payroll and other expenses		14,568			14,073
Deferred revenue		96,609			97,885
Deferred rent		868			799
Capital leases		27			43
Total current liabilities		116,067			116,374
Long-term liabilities
Deferred revenue, net of current portion		3,602			2,254
Deferred rent, net of current portion		3,709			4,360
Capital leases, net of current portion		31			51
Asset retirement obligation		194			175
Total liabilities		123,603			123,214
Stockholders’ equity
Class A and Class B Common stock		4			4
Additional paid-in capital		294,848			271,982
Accumulated other comprehensive loss		(94	)		(94	)
Accumulated deficit		(219,055	)		(200,324	)
Total stockholders’ equity		75,703			71,568
Total liabilities and stockholders' equity	$	199,306		$	194,782

Apptio, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2017			2016			2017			2016
Cash flows from operating activities
Net loss	$	(5,171	)	$	(8,755	)	$	(18,731	)	$	(23,636	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Depreciation and amortization		1,575			1,502			4,657			4,487
Amortization of premiums on investments		5			5			59			20
Loss on disposal of property and equipment		11			1			7			26
Stock-based compensation		4,357			2,487			11,667			6,902
Accretion of expense on line of credit fees		--			55			18			127
Loss on extinguishment of debt		--			722			--			722
Remeasurement of preferred stock warrant liability		--			210			--			202
Foreign exchange gain		(105	)		--			(173	)		--
Change in operating assets and liabilities
Accounts receivable		4,696			1,759			12,026			10,302
Prepaid expenses and other assets		1,779			101			3,260			(660	)
Accounts payable		(402	)		173			635			1,648
Accrued expenses		(298	)		(500	)		(2,025	)		(2,442	)
Deferred revenue		2,892			1,576			72			535
Deferred rent		(198	)		(115	)		(596	)		(421	)
Net cash provided by (used in) operating activities		9,141			(779	)		10,876			(2,188	)
Cash flows from investing activities
Purchases of property and equipment		(601	)		(1,198	)		(2,837	)		(3,518	)
Proceeds from sale of equipment		2			--			11			--
Proceeds from maturities of investments		15,375			--			35,075			6,245
Purchases of investments		(37,298	)		(10,826	)		(66,196	)		(10,826	)
Payment of security deposits		6			9			(23	)		(43	)
Net cash used in investing activities		(22,516	)		(12,015	)		(33,970	)		(8,142	)
Cash flows from financing activities
Proceeds from exercise of common stock options		3,453			489			8,948			1,000
Proceeds from purchases of stock under employee stock purchase plan		--			--			2,251			--
Proceeds from initial public offering		--			102,672			--			102,672
Payment of initial public offering costs		--			(356	)		(243	)		(574	)
Proceeds from long-term debt		--			--			--			20,000
Principal payments on long-term debt		--			(20,000	)		--			(20,000	)
Payment of debt prepayment fees		--			(200	)		--			(200	)
Principal payments on capital lease obligations		(11	)		(10	)		(32	)		(33	)
Payment of capitalized loan fees		--			(12	)		--			(248	)
Net cash  provided by financing activities		3,442			82,583			10,924			102,617
Foreign currency effect on cash, cash equivalents and restricted cash		(622	)		(129	)		(558	)		(331	)
Net (decrease) increase in cash, cash equivalents and restricted cash		(10,555	)		69,660			(12,728	)		91,956
Cash, cash equivalents and restricted cash
Beginning of period		39,834			42,052			42,007			19,756
End of period	$	29,279		$	111,712		$	29,279		$	111,712

Apptio, Inc.

Results of Operations GAAP to Non-GAAP Reconciliation

(In thousands, except per share data)

(Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2017			2016			2017			2016
Revenue
Subscription	$	39,426		$	33,314		$	112,860		$	94,995
Professional services		7,570			7,313			23,292			21,254
Total revenue		46,996			40,627			136,152			116,249
Cost of revenue reconciliation:
GAAP subscription		7,167			6,921			22,269			19,960
Non-GAAP adjustment:
Stock-based compensation		(330	)		(232	)		(927	)		(564	)
Non-GAAP subscription cost of revenue		6,837			6,689			21,342			19,396
GAAP professional services		6,763			7,068			21,599			19,780
Non-GAAP adjustment:
Stock-based compensation		(294	)		(190	)		(842	)		(557	)
Non-GAAP professional services cost of revenue	$	6,469		$	6,878		$	20,757		$	19,223
Gross profit and gross margin reconciliation:
GAAP subscription gross profit	$	32,259		$	26,393		$	90,591		$	75,035
Non-GAAP adjustment:
Stock-based compensation		330			232			927			564
Non-GAAP subscription gross profit		32,589			26,625			91,518			75,599
GAAP subscription gross margin		81.8	%		79.2	%		80.3	%		79.0	%
Non-GAAP subscription gross margin		82.7	%		79.9	%		81.1	%		79.6	%
GAAP professional services gross profit		807			245			1,693			1,474
Non-GAAP adjustment:
Stock-based compensation		294			190			842			557
Non-GAAP professional services gross profit		1,101			435			2,535			2,031
GAAP professional services gross margin		10.7	%		3.4	%		7.3	%		6.9	%
Non-GAAP professional services gross margin		14.5	%		5.9	%		10.9	%		9.6	%
GAAP gross profit		33,066			26,638			92,284			76,509
Non-GAAP adjustment:
Stock-based compensation		624			422			1,769			1,121
Non-GAAP gross profit	$	33,690		$	27,060		$	94,053		$	77,630
GAAP  gross margin		70.4	%		65.6	%		67.8	%		65.8	%
Non-GAAP gross margin		71.7	%		66.6	%		69.1	%		66.8	%
Operating expenses reconciliation:
GAAP research and development	$	10,139		$	9,015		$	30,060		$	26,072
Non-GAAP adjustment:
Stock-based compensation		(1,179	)		(698	)		(3,332	)		(1,965	)
Non-GAAP research and development		8,960			8,317			26,728			24,107
As a % of total revenue, non-GAAP		19.1	%		20.5	%		19.6	%		20.7	%
GAAP sales and marketing		20,863			18,300			60,983			54,256
Non-GAAP adjustment:
Stock-based compensation		(1,239	)		(735	)		(3,316	)		(2,176	)
Non-GAAP sales and marketing		19,624			17,565			57,667			52,080
As a % of total revenue, non-GAAP		41.8	%		43.2	%		42.4	%		44.8	%
GAAP General and administrative		7,188			6,285			20,342			16,969
Non-GAAP adjustment:
Stock-based compensation		(1,315	)		(632	)		(3,250	)		(1,640	)
Non-GAAP general and administrative		5,873			5,653			17,092			15,329
As a % of total revenue, non-GAAP		12.5	%		13.9	%		12.6	%		13.2	%

Loss from operations reconciliation:
GAAP loss from operations		(5,124	)		(6,962	)		(19,101	)		(20,788	)
Non-GAAP adjustment:
Stock-based compensation		4,357			2,487			11,667			6,902
Non-GAAP loss from operations	$	(767	)	$	(4,475	)	$	(7,434	)	$	(13,886	)
Loss from operations as a percentage of revenue:
GAAP loss from operations		(10.9	%)		(17.1	%)		(14.0	%)		(17.9	%)
Non-GAAP loss from operations		(1.6	%)		(11.0	%)		(5.5	%)		(11.9	%)
Net loss reconciliation:
GAAP	$	(5,171	)	$	(8,755	)	$	(18,731	)	$	(23,636	)
Non-GAAP adjustment:
Stock-based compensation		4,357			2,487			11,667			6,902
Non-GAAP Net loss	$	(814	)	$	(6,268	)	$	(7,064	)	$	(16,734	)
Basic and diluted net loss per share
reconciliation:
GAAP	$	(0.13	)	$	(0.63	)	$	(0.48	)	$	(1.78	)
Non-GAAP	$	(0.02	)	$	(0.45	)	$	(0.18	)	$	(1.26	)
Shares used to compute basic and diluted GAAP
and Non-GAAP net loss per share		40,120			13,884			39,240			13,307

Apptio, Inc.

Free Cash Flow Non-GAAP Reconciliation

(In thousands)

(Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2017			2016			2017			2016
Net cash provided by (used in) operating activities	$	9,141		$	(779	)	$	10,876		$	(2,188	)
Less: purchases of property and equipment		(601	)		(1,198	)		(2,837	)		(3,518	)
Free cash flow	$	8,540		$	(1,977	)	$	8,039		$	(5,706	)

Apptio, Inc.

Free Cash Flow Non-GAAP Reconciliation

(In thousands)

(Unaudited)

	Three Months Ended												Twelve Months Ended
	December 31,			March 31,			June 30,			September 30,			September 30,
	2016			2017			2017			2017			2017
Net cash (used in) provided by operating activities	$	(1,806	)	$	11,913		$	(10,178	)	$	9,141		$	9,070
Less: purchases of property and equipment		(1,884	)		(1,545	)		(691	)		(601	)		(4,721	)
Free cash flow	$	(3,690	)	$	10,368		$	(10,869	)	$	8,540		$	4,349

© 2017 Apptio, Inc. All rights reserved. Apptio and the Apptio logo are registered trademarks of Apptio, Inc. All other brand and product names are trademarks or registered trademarks of their respective holders.

Investor Contact:

Susanna Morgan

(425) 279-6101

ir@apptio.com

Media Contact:

Sarah Vreugdenhil

(425) 279-6097  

pr@apptio.com