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Appian Corp (APPN)
NASDAQ:APPN
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Appian
(NASDAQ:APPN)
57Neutral
Positive Factors
Earnings
Appian reported solid fourth-quarter results that outperformed consensus estimates on most key metrics.
Revenue Growth
Cloud revenue growth was 19%, surpassing consensus estimates for 15% growth.
Negative Factors
Growth Forecast
Growth is modestly slowing as evidenced by slower cloud revenue growth of +19% in Q4 from +20% in Q3 and guidance which calls for further deceleration in Q1/FY25.
Management Changes
Appian announced CFO Mark Matheos will depart the company and will be replaced in the interim by a board member.
Appian (APPN) vs. S&P 500 (SPY)
Market Cap
$2.17B
Dividend YieldN/A
Average Volume (3M)646.10K
Price to Earnings (P/E)―
Beta (1Y)1.48
Revenue Growth13.14%
EPS Growth17.06%
CountryUS
Employees2,033
SectorTechnology
Sector Strength43
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-1.26
Shares Outstanding42,957,027
10 Day Avg. Volume554,780
30 Day Avg. Volume646,101
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.69
Price to Cash Flow (P/CF)41.10
P/FCF Ratio41.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$41.00Price Target Upside39.74% Upside
Rating ConsensusHold
Number of Analyst Covering8
Appian Business Overview & Revenue Model
Company DescriptionAppian Corporation provides low-code automation platform in the United States and internationally. The company's platform automates the creation of forms, workflows, data structures, reports, user interfaces, and other software elements that are needed to be manually coded. The company also offers professional and customer support services. It serves to financial services, government, life sciences, insurance, manufacturing, energy, healthcare, telecommunications, and transportation industries. The company was incorporated in 1999 and is headquartered in McLean, Virginia.
How the Company Makes MoneyAppian makes money primarily through the sale of subscriptions to its low-code automation platform. These subscriptions provide clients access to the platform's suite of tools for building and managing applications. The company also generates revenue from professional services, which include training, support, and consulting to help customers effectively implement and utilize the platform. Additionally, Appian benefits from strategic partnerships and collaborations that enhance its market reach and product offerings, thus contributing to its overall earnings.
Appian Financial Statement Overview
Summary
Appian shows strong revenue growth but struggles with profitability, as evidenced by persistent negative net income. The balance sheet reveals potential instability with negative equity, though improved cash flow provides a positive outlook.Income Statement
Appian's revenue has shown consistent growth over the past years, increasing from $260.4M in 2019 to $617.0M in 2024. This reflects a strong upward trajectory. However, profitability remains a challenge, as evidenced by persistent negative net income and EBIT margins. Despite an improving gross profit margin, the net profit margin remains negative due to high operating expenses.65
Positive
Balance Sheet
Appian's balance sheet shows a concerning trend with negative stockholders' equity in the latest year, indicating potential financial instability. The debt-to-equity ratio is not meaningful due to negative equity, reflecting high leverage risks. However, the company has maintained a healthy cash position, which could provide some buffer against its liabilities.50
Neutral
Cash Flow
Appian has demonstrated significant improvement in cash flow, with positive free cash flow in the latest year, a remarkable turnaround from previous periods of negative cash flow. The operating cash flow to net income ratio indicates the company's ability to convert its operations into cash, suggesting better cash management despite ongoing net losses.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 617.02M | 545.36M | 467.99M | 369.26M | 304.57M | Gross Profit |
| 466.84M | 402.04M | 334.69M | 265.17M | 215.81M | EBIT |
| -60.85M | -107.97M | -145.01M | -83.91M | -37.90M | EBITDA |
| -57.60M | -80.90M | -141.26M | -81.75M | -26.27M | Net Income Common Stockholders |
| -92.26M | -111.44M | -150.92M | -88.64M | -33.48M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 159.86M | 159.00M | 196.00M | 155.97M | 222.29M | Total Assets |
| 621.04M | 627.50M | 594.21M | 504.52M | 512.52M | Total Debt |
| 305.39M | 277.35M | 184.03M | 56.89M | 58.12M | Net Debt |
| 186.84M | 128.00M | 35.89M | -43.90M | -54.34M | Total Liabilities |
| 653.68M | 575.16M | 448.51M | 270.60M | 215.92M | Stockholders Equity |
| -32.64M | 52.34M | 145.70M | 233.92M | 296.61M |
| Cash Flow | Free Cash Flow | |||
| 3.08M | -120.08M | -115.65M | -59.98M | -8.87M | Operating Cash Flow |
| 6.88M | -110.44M | -106.55M | -53.92M | -7.62M | Investing Cash Flow |
| -35.39M | 28.59M | 10.26M | 41.94M | -153.36M | Financing Cash Flow |
| -258.00K | 79.17M | 142.87M | 2.79M | 110.47M |
Appian Technical Analysis
Negative
29.34
Price Trends
32.61
Negative
34.74
Negative
33.33
Negative
Market Momentum
-0.62
Negative
40.29
Neutral
43.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APPN, the sentiment is Negative. The current price of 29.34 is below the 20-day moving average (MA) of 30.67, below the 50-day MA of 32.61, and below the 200-day MA of 33.33, indicating a bearish trend. The MACD of -0.62 indicates Negative momentum. The RSI at 40.29 is Neutral, neither overbought nor oversold. The STOCH value of 43.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for APPN.
Appian Risk Analysis
Appian disclosed 57 risk factors in its most recent earnings report. Appian reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Appian Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $165.30B | 116.62 | 16.53% | ― | 22.44% | -18.31% | |
70 Neutral | $7.91B | ― | -1.22% | ― | 18.55% | 93.84% | |
68 Neutral | $5.97B | 62.82 | 21.12% | 0.17% | 4.51% | 43.29% | |
59 Neutral | $57.11B | ― | -32.59% | ― | 23.19% | 11.01% | |
58 Neutral | $21.03B | 10.28 | -16.29% | 2.47% | 4.45% | -23.80% | |
57 Neutral | $2.17B | ― | -936.62% | ― | 13.14% | 17.06% | |
56 Neutral | $75.38B | ― | -11.44% | ― | -6.61% | -254.90% |
* Technology Sector Average
Performance Comparison
APPN
Appian
29.34
-8.48
-22.42%
MSTR
Strategy
289.41
125.74
76.83%
PEGA
Pegasystems
69.52
6.95
11.11%
NOW
ServiceNow
797.76
29.39
3.82%
TEAM
Atlassian
217.99
24.62
12.73%
SMAR
Smartsheet
56.47
18.07
47.06%
Appian Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -8.43% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
Appian Corporation demonstrated strong financial performance with significant growth in cloud subscription revenue and positive adjusted EBITDA. The company showed high customer retention and successful upselling, with notable customer wins contributing to positive momentum. However, the slight decline in the revenue retention rate, foreign exchange losses, and uncertainty in US federal spending pose challenges. Overall, the highlights significantly outweigh the lowlights.Highlights
Strong Cloud Subscription Revenue Growth
Appian Corporation's cloud subscription revenue grew 19% in Q4 2024 to $98.9 million and 21% for the full year to $368 million.
Positive Adjusted EBITDA
Adjusted EBITDA was positive $21.2 million in Q4 2024, exceeding guidance, and was $20.3 million for the full year, a significant improvement from a loss of $44.8 million in 2023.
High Customer Retention
Cloud subscription revenue retention rate was 116%, with a gross renewal rate of 99%.
Successful Upselling and Tiered Pricing
Two-thirds of customers purchased more software during 2024 and half of net new customers bought in above the base tier in the new tiered pricing structure.
Significant Customer Wins
A leading US insurance provider generated an additional $2 billion in revenue annually using Appian Corporation, and a medical transportation emergency response company reduced processing times by 88%.
Lowlights
Slight Decline in Cloud Subscription Revenue Retention Rate
Cloud subscription revenue retention rate decreased from 119% a year ago to 116%.
Foreign Exchange Losses
Appian Corporation experienced $14.3 million in foreign exchange losses in Q4 2024.
Uncertainty in US Federal Spending
Concerns about the impact of DOGE and US federal budget environment uncertainty on public sector business.
Company Guidance
During the fourth quarter of 2024, Appian Corporation reported a 19% year-over-year growth in cloud subscription revenue, reaching $98.9 million, and an 18% increase in total subscriptions revenue to $136.8 million. Total revenue for the quarter grew by 15% to $166.7 million, with an adjusted EBITDA of $21.2 million. The company achieved a cloud subscription revenue retention rate of 116% and a non-GAAP gross margin of 80%, marking its best performance since going public. For the full year, cloud subscription revenue rose 21% to $368 million, with total revenue increasing by 13% to $617 million. In 2025, Appian expects cloud subscription revenue to grow between 14% and 15% to $419 million-$421 million, with total revenue anticipated to rise between 10% and 11% to $680 million-$684 million. The company forecasts an adjusted EBITDA of $38 million-$42 million for the year.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.