Appian (APPN) AI Stock Analysis

• Market Cap: $2.20B
• Dividend Yield: N/A
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.32
• 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: 1,578,990
• 30 Day Avg. Volume: 1,069,317
• 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: 1.06
• Enterprise Value/Revenue: 3.56
• Enterprise Value/Gross Profit: 4.66
• Enterprise Value/Ebitda: 121.30
• 1Y Price Target: $35.00
• Price Target Upside: 20.65% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 57 Neutral
• Price Target: $30.00 ▲(3.41% Upside)

Appian's overall stock score is driven by strong revenue growth and improved cash flow metrics, indicating effective cost management and strategic investments. However, persistent profitability challenges and high leverage weigh heavily on financial stability. The earnings call reflects optimism in AI-driven growth and federal sector performance, but valuation concerns and retention rate declines present risks.

Positive Factors

AI Offerings

APPN's AI offerings are driving pipeline growth across verticals and that most $1m+ deals included AI licenses.

Cloud Revenue and Growth

An acceleration in cloud revenue growth to 21%, which was above the consensus estimate of 16%.

Government Revenue Growth

Gov't revenues were up 76% year-over-year, and management remains cautiously optimistic about future opportunities.

Negative Factors

Billings and Growth Concerns

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

Management's Cautious Guidance

Management indicated that while it has seen no material impact to overall pipelines, given macro uncertainties, it is taking a more prudent approach to guide for the rest of the year.

Net Revenue Retention Challenges

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

Appian Business Overview & Revenue Model

Company Description

Appian 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 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: Negative
• Last Price: 29.01
• 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 Negative. The current price of 29.01 is above the 20-day moving average (MA) of 28.83, below the 50-day MA of 29.30, and below the 200-day MA of 32.24, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 49.23 is Neutral, neither overbought nor oversold. The STOCH value of 48.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for APPN.

Appian Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZS	73 Outperform	$42.80B	―	-2.68%	―	25.46%	49.20%
FOUR	73 Outperform	$7.98B	33.53	19.00%	―	23.86%	79.35%
KVYO	66 Neutral	$9.48B	―	-6.42%	―	33.17%	82.85%
S	64 Neutral	$5.64B	―	-26.98%	―	28.19%	-31.34%
Sector *	61 Neutral	$35.38B	6.84	-10.82%	1.97%	8.74%	-8.28%
APPN	57 Neutral	$2.20B	―	-936.62%	―	13.67%	84.35%
CFLT	57 Neutral	$5.99B	―	-32.18%	―	23.02%	21.01%

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.

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.