Appian (APPN) AI Stock Analysis

• Market Cap: $2.24B
• Dividend Yield: N/A
• Average Volume (3M): 578.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: 13.15%
• EPS Growth: 43.36%
• Country: US
• Employees: 2,033
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Infrastructure
• EPS (TTM): 0.13
• Shares Outstanding: 43,140,083
• 10 Day Avg. Volume: 767,146
• 30 Day Avg. Volume: 578,558
• PEG Ratio: -0.24
• Price to Book (P/B): 16.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -20.40
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 0.99
• Enterprise Value/Gross Profit: 4.98
• Enterprise Value/Ebitda: -9.53
• 1Y Price Target: $34.83
• Price Target Upside: 15.56% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 55 Neutral
• Price Target: $31.00 ▲(2.85%Upside)

Appian's overall stock score of 55 reflects strong revenue growth and positive cash flow improvements, tempered by profitability challenges and financial instability. Neutral technical indicators and a concerning valuation also weigh on the score. Positive developments from the recent earnings call and corporate event provide some optimism, but significant risks remain.

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.

Management Stability

The appointment of Serge Tanjga as the new CFO is seen positively due to his solid background in finance leadership in the enterprise software space.

Negative Factors

Customer Retention

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

Growth Challenges

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

Market Position

Appian trades at a lower multiple compared to its peers, reflecting recent execution challenges and a muted profitability profile.

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 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 demonstrates robust revenue growth and improved cash flow position. However, substantial financial leverage and negative equity pose significant risks, overshadowing 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	633.61M	617.02M	545.36M	467.99M	369.26M	304.57M
Gross Profit	480.52M	466.84M	402.04M	334.69M	265.17M	215.81M
EBITDA	-38.37M	-57.60M	-80.90M	-141.26M	-81.75M	-26.27M
Net Income	-60.52M	-92.26M	-111.44M	-150.92M	-88.64M	-33.48M
Balance Sheet
Total Assets	592.90M	621.04M	627.50M	594.21M	504.52M	512.52M
Cash, Cash Equivalents and Short-Term Investments	199.70M	159.86M	159.00M	196.00M	155.97M	222.29M
Total Debt	312.34M	314.99M	277.35M	184.03M	56.89M	58.12M
Total Liabilities	624.64M	653.68M	575.16M	448.51M	270.60M	215.92M
Stockholders Equity	-31.75M	-32.64M	52.34M	145.70M	233.92M	296.61M
Cash Flow
Free Cash Flow	30.73M	3.08M	-120.08M	-115.65M	-59.98M	-8.87M
Operating Cash Flow	32.98M	6.88M	-110.44M	-106.55M	-53.92M	-7.62M
Investing Cash Flow	-66.93M	-35.39M	28.59M	10.26M	41.94M	-153.36M
Financing Cash Flow	-1.52M	-258.00K	79.17M	142.87M	2.79M	110.47M

Appian Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 30.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 30.14 is above the 20-day moving average (MA) of 30.09, below the 50-day MA of 30.83, and below the 200-day MA of 32.89, indicating a neutral trend. The MACD of -0.42 indicates Negative momentum. The RSI at 50.31 is Neutral, neither overbought nor oversold. The STOCH value of 82.05 is Negative, 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	$8.66B	33.33	30.28%	―	27.39%	115.40%
ZS	72 Outperform	$47.85B	―	-2.68%	―	25.46%	49.20%
CFLT	64 Neutral	$8.71B	―	-34.18%	―	24.11%	21.87%
S	64 Neutral	$6.03B	―	-26.98%	―	32.25%	20.56%
KVYO	61 Neutral	$9.07B	―	-4.73%	―	33.95%	87.03%
APPN	55 Neutral	$2.24B	―	-936.62%	―	13.15%	43.36%
Sector *	49 Neutral	C$2.91B	2.04	-80.91%	2.67%	12.55%	-24.32%

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.