Appian (APPN) AI Stock Analysis

• Market Cap: $2.39B
• Dividend Yield: N/A
• Average Volume (3M): 578.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.28
• Revenue Growth: 13.15%
• EPS Growth: 43.36%
• Country: US
• Employees: 2,033
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Infrastructure
• EPS (TTM): 0.13
• Shares Outstanding: 43,140,083
• 10 Day Avg. Volume: 518,076
• 30 Day Avg. Volume: 578,555
• PEG Ratio: 7.75
• Price to Book (P/B): -71.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 764.22
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 1.08
• Enterprise Value/Gross Profit: 5.52
• Enterprise Value/Ebitda: -8.85
• 1Y Price Target: $34.83
• Price Target Upside: 8.23% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 59 Neutral
• Price Target: $33.00 ▲(2.55%Upside)

Appian's overall stock score is driven by strong revenue growth and cash flow improvements but is hindered by profitability challenges and financial instability. Positive technical trends and strategic executive changes provide some support, while valuation concerns persist due to negative earnings.

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.

Revenue Growth

Appian delivered a 2% revenue beat translating to 11% overall growth driven by 15% cloud growth and 14% growth in subscription revenue.

Negative Factors

Billing and Growth Concerns

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

Customer Retention

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

Market Risks

Risks to the outlook include the rate of market adoption for low-code solutions, a delayed payment from the PEGA lawsuit, and competition from larger software providers.

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 has demonstrated consistent revenue growth, indicating a strong upward trajectory. However, profitability remains elusive due to persistent negative net income and high operating expenses. The balance sheet raises concerns with negative equity reflecting potential financial instability, despite a healthy cash position. The improvement in cash flow, turning positive, suggests better financial management.

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.

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.

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.

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
314.99M	277.35M	184.03M	56.89M	58.12M
	Net Debt
196.44M	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

• Technical Analysis Sentiment: Positive
• Last Price: 32.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APPN, the sentiment is Positive. The current price of 32.18 is above the 20-day moving average (MA) of 31.87, above the 50-day MA of 30.09, and below the 200-day MA of 33.02, indicating a neutral trend. The MACD of 0.31 indicates Positive momentum. The RSI at 57.59 is Neutral, neither overbought nor oversold. The STOCH value of 65.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for APPN.

Appian Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOUR	77 Outperform	$8.35B	31.93	30.28%	―	27.39%	115.40%
ZS	74 Outperform	$46.85B	―	-2.68%	―	25.46%	49.20%
KVYO	68 Neutral	$9.40B	―	-4.73%	―	33.95%	87.03%
S	64 Neutral	$6.02B	―	-26.98%	―	32.25%	20.56%
Sector *	62 Neutral	$11.80B	10.37	-7.29%	2.91%	7.39%	-7.96%
CFLT	60 Neutral	$8.29B	―	-34.18%	―	24.11%	21.87%
APPN	59 Neutral	$2.39B	―	-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.

Appian Appoints New CFO Serge Tanjga

On April 21, 2025, Appian Corporation announced the appointment of Serge Tanjga as Chief Financial Officer, effective May 27, 2025. Tanjga, who brings over 20 years of financial experience, including roles at MongoDB and Emerging Sovereign Group, will succeed Mark Lynch and report directly to CEO Matt Calkins. His appointment is expected to strengthen Appian’s financial leadership and strategic planning capabilities, potentially impacting its market positioning positively.