Appian (APPN) AI Stock Analysis

• Market Cap: $2.33B
• Dividend Yield: N/A
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.31
• Revenue Growth: 13.67%
• EPS Growth: 84.35%
• Country: US
• Employees: 2,033
• Sector: Technology
• Sector Strength: 85
• Industry: Software - Infrastructure
• EPS (TTM): 0.00
• Shares Outstanding: 42,943,870
• 10 Day Avg. Volume: 1,028,339
• 30 Day Avg. Volume: 1,143,406
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 3.56
• Enterprise Value/Gross Profit: 4.66
• Enterprise Value/Ebitda: 121.30
• 1Y Price Target: $35.00
• Price Target Upside: 13.71% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 58 Neutral
• Price Target: $32.00 ▲(3.96% Upside)

Appian's overall stock score reflects strong revenue growth and strategic initiatives, particularly in cloud subscriptions and AI. However, persistent profitability challenges, high leverage, and valuation concerns weigh on the score. The positive momentum in technical indicators and the share repurchase program provide some support, but financial stability remains a key risk.

Positive Factors

Revenue Growth

Strong revenue growth in cloud subscriptions and total revenue demonstrates Appian's successful market expansion and product adoption, enhancing its competitive position in the industry.

AI-Driven Growth

AI-driven growth and new business opportunities highlight Appian's strategic focus on innovation, positioning it well for future market demands and enhancing its value proposition.

Federal Business Outperformance

Strong performance in the federal sector underscores Appian's ability to secure high-value contracts and expand its footprint in a lucrative market, supporting long-term revenue stability.

Negative Factors

Profitability Challenges

Ongoing profitability issues, indicated by negative net profit and EBIT margins, could hinder Appian's ability to reinvest in growth and maintain financial health over the long term.

High Leverage

Significant leverage poses financial risks, potentially limiting Appian's operational flexibility and increasing vulnerability to economic downturns, impacting future growth prospects.

Decline in Cloud Revenue Retention

A decline in cloud revenue retention rates suggests challenges in maintaining customer loyalty and revenue consistency, which could affect long-term growth and market competitiveness.

Appian Business Overview & Revenue Model

Company Description

Appian Corporation (APPN) is a leading provider of low-code automation platforms that enable organizations to build applications quickly and efficiently. Operating primarily in the technology sector, Appian focuses on digital transformation and business process automation, offering solutions that streamline operations across various industries, including financial services, healthcare, and government. Its core products include the Appian Platform, which integrates low-code development, business process management, and artificial intelligence, allowing users to create custom applications to meet their specific needs.

How the Company Makes Money

Appian generates revenue primarily through software subscriptions and professional services. The company's subscription model allows customers to pay for access to its platform on a recurring basis, which provides a stable and predictable revenue stream. Additionally, Appian offers tiered pricing based on the number of users and the features utilized, which can scale with the customer's needs. Professional services, including implementation, training, and support, represent another significant revenue stream as businesses often require assistance in integrating Appian's solutions into their existing workflows. Appian also benefits from strategic partnerships with leading technology firms and consulting companies, which help expand its market reach and drive additional sales through co-selling initiatives and joint marketing efforts.

Appian Financial Statement Overview

Summary

Appian shows strong revenue growth and cash flow improvements, but faces significant profitability and financial stability challenges. The negative equity and substantial leverage are risks that overshadow the company's operational progress.

Income Statement

Appian has demonstrated a consistent revenue growth trajectory, with a TTM revenue of $633.6M representing a 2.7% increase from the previous annual figure. However, profitability remains a challenge, evidenced by a negative net profit margin of -9.6% and negative EBIT and EBITDA margins of -5.6% and -6.1%, respectively. Despite strong gross profit margins of 75.8%, the company continues to face operational losses.

Balance Sheet

The balance sheet reveals significant financial leverage, with a concerning negative stockholders' equity of -$31.7M, resulting in an unfavourable debt-to-equity ratio. The equity ratio is also negative due to accumulated losses. These factors indicate financial instability and potential risks, despite having substantial cash and short-term investments of $199.7M.

Cash Flow

Appian's cash flow position shows improvement, with a positive operating cash flow of $32.98M TTM and a free cash flow growth rate of 897.6% compared to the previous year. The operating cash flow to net income ratio is positive, indicating better cash management compared to reported net losses. However, the free cash flow to net income ratio remains negative, reflecting ongoing profitability challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	657.80M	617.02M	545.36M	467.99M	369.26M	304.57M
Gross Profit	502.19M	466.84M	402.04M	334.69M	265.17M	215.81M
EBITDA	19.29M	-57.60M	-80.90M	-141.26M	-81.75M	-26.27M
Net Income	-17.24M	-92.26M	-111.44M	-150.92M	-88.64M	-33.48M
Balance Sheet
Total Assets	590.75M	621.04M	627.50M	594.21M	504.52M	512.52M
Cash, Cash Equivalents and Short-Term Investments	184.75M	159.86M	159.00M	196.00M	155.97M	222.29M
Total Debt	308.49M	314.99M	277.35M	184.03M	56.89M	58.12M
Total Liabilities	644.49M	653.68M	575.16M	448.51M	270.60M	215.92M
Stockholders Equity	-53.74M	-32.64M	52.34M	145.70M	233.92M	296.61M
Cash Flow
Free Cash Flow	45.99M	3.08M	-120.08M	-115.65M	-59.98M	-8.87M
Operating Cash Flow	48.65M	6.88M	-110.44M	-106.55M	-53.92M	-7.62M
Investing Cash Flow	-46.85M	-35.39M	28.59M	10.26M	41.94M	-153.36M
Financing Cash Flow	-12.53M	-258.00K	79.17M	142.87M	2.79M	110.47M

Appian Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 30.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APPN, the sentiment is Neutral. The current price of 30.78 is above the 20-day moving average (MA) of 30.29, above the 50-day MA of 29.61, and below the 200-day MA of 31.64, indicating a neutral trend. The MACD of 0.59 indicates Negative momentum. The RSI at 52.95 is Neutral, neither overbought nor oversold. The STOCH value of 49.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for APPN.

Appian Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOUR	73 Outperform	$7.69B	32.21	19.00%	―	23.86%	79.35%
AKAM	72 Outperform	$11.36B	27.24	9.21%	―	3.98%	-31.18%
OKTA	63 Neutral	$16.21B	106.52	2.61%	―	12.68%	―
Sector *	61 Neutral	$36.80B	12.38	-10.20%	1.85%	8.54%	-7.31%
APPN	58 Neutral	$2.33B	―	-936.62%	―	13.67%	84.35%
CFLT	57 Neutral	$6.71B	―	-32.18%	―	23.02%	21.01%
RBRK	51 Neutral	$15.40B	―	218.28%	―	47.72%	61.95%

Appian Corporate Events

Appian Announces $10 Million Share Repurchase Program

Appian Corporation’s Board of Directors has approved a Share Repurchase Program, allowing the company to buy back up to $10 million of its common stock. This initiative, effective immediately and running through August 28, 2027, offers flexibility in the repurchase methods and is influenced by factors such as market conditions and investment opportunities, potentially impacting the company’s financial strategies and shareholder value.

Appian Holds Virtual Annual Stockholders Meeting

On June 4, 2025, Appian held its virtual annual meeting of stockholders with a quorum of approximately 92.72% voting power present. During the meeting, stockholders elected seven directors, ratified the appointment of BDO USA, P.C. as the independent auditor for 2025, and approved the executive compensation on an advisory basis.