Appian (APPN) AI Stock Analysis

• Market Cap: $2.19B
• Dividend Yield: N/A
• Average Volume (3M): 643.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.27
• Revenue Growth: 13.15%
• EPS Growth: 43.36%
• Country: US
• Employees: 2,033
• Sector: Technology
• Sector Strength: 90
• Industry: Software - Infrastructure
• EPS (TTM): 0.13
• Shares Outstanding: 43,140,083
• 10 Day Avg. Volume: 712,981
• 30 Day Avg. Volume: 643,505
• PEG Ratio: -1.04
• Price to Book (P/B): -67.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 69.91
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 0.95
• Enterprise Value/Gross Profit: 4.79
• Enterprise Value/Ebitda: -9.17
• 1Y Price Target: $34.83
• Price Target Upside: 17.63% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 56 Neutral
• Price Target: $30.00 ▲(1.32%Upside)

Appian's overall stock score reflects strong revenue growth and positive sentiment from strategic advances in AI and sales efficiency. However, the score is tempered by significant financial stability concerns, negative valuation metrics, and bearish technical indicators.

Positive Factors

AI Monetization

Appian is experiencing nice demand for its new AI solutions, with AI usage growing by 7.9 times, and nearly half of new customers are adopting the company’s premium AI SKUs at their initial purchase.

Earnings

Appian reported solid first-quarter results that outperformed consensus on most key metrics.

Public Sector Growth

Public sector bookings grew 59% year-over-year and management noted that it has yet to feel any impact from macro uncertainty.

Negative Factors

Customer Retention

Cloud NRR declined attributed to prior quarter impacts, indicating potential challenges in maintaining customer retention rates.

Growth and Macroeconomic Headwinds

Billings miss and NRR contraction are seen as indications of growth or macroeconomic headwinds.

Appian Business Overview & Revenue Model

Company Description

Appian Corporation is a software company specializing in low-code automation platforms that enable organizations to develop applications rapidly. Founded in 1999 and headquartered in McLean, Virginia, Appian operates within the technology and software sectors, providing solutions that streamline business operations and enhance productivity. The company's core products and services include process automation, case management, and application development solutions, catering to industries such as financial services, healthcare, manufacturing, and government.

How the Company Makes Money

Appian generates revenue primarily through the sale of subscriptions to its low-code automation platform. These subscriptions are offered on a recurring basis, providing customers with access to its cloud-based services and software updates. Additionally, Appian earns revenue from professional services, which include consulting, training, and support services that help clients implement and optimize their use of the platform. The company also occasionally derives income from perpetual license sales, though this is a smaller part of its overall revenue model. Appian's strategic partnerships with other technology firms and system integrators further enhance its market presence and contribute to its revenue streams.

Appian Financial Statement Overview

Summary

Appian's financials reflect strong revenue growth and cash flow improvements but are overshadowed by significant profitability and financial stability challenges. The negative equity and substantial leverage pose risks that must be addressed, despite 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	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
EBITDA	-57.60M	-80.90M	-141.26M	-81.75M	-26.27M
Net Income	-92.26M	-111.44M	-150.92M	-88.64M	-33.48M
Balance Sheet
Total Assets	621.04M	627.50M	594.21M	504.52M	512.52M
Cash, Cash Equivalents and Short-Term Investments	159.86M	159.00M	196.00M	155.97M	222.29M
Total Debt	314.99M	277.35M	184.03M	56.89M	58.12M
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

• Technical Analysis Sentiment: Neutral
• Last Price: 29.61
• 50DMA: Negative
• 100DMA: Negative
• 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 29.61 is below the 20-day moving average (MA) of 29.72, below the 50-day MA of 30.43, and below the 200-day MA of 32.57, indicating a bearish trend. The MACD of -0.22 indicates Negative momentum. The RSI at 49.25 is Neutral, neither overbought nor oversold. The STOCH value of 73.28 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	79 Outperform	$9.17B	36.12	30.28%	―	27.39%	115.40%
ZS	72 Outperform	$44.26B	―	-2.68%	―	25.46%	49.20%
CFLT	66 Neutral	$9.05B	―	-34.18%	―	24.11%	21.87%
KVYO	65 Neutral	$9.04B	―	-4.73%	―	33.95%	87.03%
S	64 Neutral	$6.47B	―	-26.98%	―	32.25%	20.56%
Sector *	63 Neutral	$34.70B	5.15	-11.38%	1.67%	5.54%	-17.15%
APPN	56 Neutral	$2.19B	―	-936.62%	―	13.15%	43.36%

Appian Corporate Events

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.

The most recent analyst rating on (APPN) stock is a Sell with a $37.00 price target. To see the full list of analyst forecasts on Appian stock, see the APPN Stock Forecast page.

Appian Announces $10M Share Repurchase Program

Appian Corporation’s Board of Directors has approved a Share Repurchase Program to buy back up to $10 million of its common stock from May 2025 to December 31, 2025. This initiative aims to offset shares issued to employees as part of a new compensation program, with the flexibility to repurchase shares through various methods depending on market conditions.

The most recent analyst rating on (APPN) stock is a Buy with a $41.00 price target. To see the full list of analyst forecasts on Appian stock, see the APPN Stock Forecast page.