Appian (APPN) AI Stock Analysis

• Market Cap: $3.02B
• Dividend Yield: N/A
• Average Volume (3M): 829.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.27
• Revenue Growth: 15.97%
• EPS Growth: 91.88%
• Country: US
• Employees: 2,033
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.32
• Shares Outstanding: 42,735,085
• 10 Day Avg. Volume: 584,392
• 30 Day Avg. Volume: 829,896
• PEG Ratio: 1.53
• Price to Book (P/B): -73.75
• Price to Sales (P/S): 3.90
• P/FCF Ratio: 781.54
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 3.47
• Enterprise Value/Gross Profit: 4.54
• Enterprise Value/Ebitda: 84.60
• 1Y Price Target: $39.40
• Price Target Upside: -3.81% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 6
• EPS Forecast (FY): 0.5
• Revenue Forecast (FY): $710.66M

• Rating: 58 Neutral
• Price Target: $47.00 ▲(14.75% Upside)

Appian's overall stock score is driven by strong technical indicators and positive earnings call sentiment, reflecting robust growth in cloud subscriptions and AI integration. However, financial performance and valuation concerns, such as high leverage and a negative P/E ratio, weigh down the score. Continued focus on improving profitability and financial stability will be crucial for future performance.

Positive Factors

Revenue Growth

Strong revenue growth in cloud subscriptions indicates robust demand for Appian's solutions, enhancing its market position and providing a solid foundation for future expansion.

AI Integration Success

Successful AI integration enhances Appian's competitive edge, offering innovative solutions that improve client operations, potentially leading to higher customer retention and new customer acquisition.

Improved Efficiency Metrics

Consistent improvement in efficiency metrics suggests effective management and operational strategies, which can lead to sustained profitability and better resource allocation.

Negative Factors

High Leverage

High leverage poses a risk to financial stability, potentially limiting Appian's ability to invest in growth opportunities and increasing vulnerability to economic downturns.

Profitability Challenges

Ongoing profitability challenges may hinder Appian's ability to reinvest in its business and maintain competitive pricing, affecting long-term growth prospects.

Decline in Revenue Retention

A decline in revenue retention could indicate customer churn or reduced spending by existing clients, potentially impacting future revenue stability and growth.

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 its subscription-based model, which includes licensing fees for its software platform, maintenance, and support services. The company offers different tiers of service, catering to a range of business needs from small enterprises to large organizations, thereby diversifying its customer base. Additionally, Appian earns revenue through professional services, such as training, consulting, and implementation support, which help clients maximize the value of their investments in Appian's solutions. Strategic partnerships with other technology providers and system integrators also play a crucial role in enhancing Appian's market presence and driving further revenue growth.

Appian Financial Statement Overview

Summary

Appian demonstrates strong revenue growth and effective cash management, but faces challenges with profitability and financial stability. The high leverage and negative equity are significant risks, while improving cash flows offer some optimism. Continued focus on cost control and reducing leverage will be crucial for future financial health.

Income Statement

Appian's revenue has shown consistent growth, with a TTM revenue growth rate of 5.01%. However, the company is struggling with profitability, as indicated by a negative net profit margin of -2.62% in the TTM. The gross profit margin remains strong at 76.34%, but the EBIT and EBITDA margins are low at 1.40% and 2.93%, respectively, reflecting challenges in controlling operating expenses.

Balance Sheet

The balance sheet reveals significant financial leverage, with a negative debt-to-equity ratio due to negative stockholders' equity. This indicates potential financial instability. The return on equity is positive at 41.06% in the TTM, but this is skewed by the negative equity. The equity ratio is negative, highlighting a concerning financial structure.

Cash Flow

Appian's cash flow situation has improved, with a substantial free cash flow growth rate of 57.96% in the TTM. The operating cash flow to net income ratio is 0.14, indicating some ability to convert earnings into cash. The free cash flow to net income ratio is high at 0.95, suggesting effective cash management despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	690.75M	617.02M	545.36M	467.99M	369.26M	304.57M
Gross Profit	526.94M	466.84M	402.04M	334.69M	265.17M	215.81M
EBITDA	28.31M	-57.60M	-80.90M	-141.26M	-81.75M	-26.27M
Net Income	-7.31M	-92.26M	-111.44M	-150.92M	-88.64M	-33.48M
Balance Sheet
Total Assets	611.74M	621.04M	627.50M	594.21M	504.52M	512.52M
Cash, Cash Equivalents and Short-Term Investments	191.56M	159.86M	159.00M	196.00M	155.97M	222.29M
Total Debt	306.60M	314.99M	277.35M	184.03M	56.89M	58.12M
Total Liabilities	660.28M	653.68M	575.16M	448.51M	270.60M	215.92M
Stockholders Equity	-48.54M	-32.64M	52.34M	145.70M	233.92M	296.61M
Cash Flow
Free Cash Flow	72.65M	3.08M	-120.08M	-115.65M	-59.98M	-8.87M
Operating Cash Flow	75.61M	6.88M	-110.44M	-106.55M	-53.92M	-7.62M
Investing Cash Flow	-28.55M	-35.39M	28.59M	10.26M	41.94M	-153.36M
Financing Cash Flow	-21.90M	-258.00K	79.17M	142.87M	2.79M	110.47M

Appian Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 40.96 is below the 20-day moving average (MA) of 41.54, above the 50-day MA of 34.65, and above the 200-day MA of 31.33, indicating a neutral trend. The MACD of 1.53 indicates Positive momentum. The RSI at 58.20 is Neutral, neither overbought nor oversold. The STOCH value of 33.10 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
AKAM	75 Outperform	$12.01B	24.48	10.64%	―	4.21%	-0.63%
FOUR	74 Outperform	$6.10B	32.33	15.52%	―	23.16%	27.38%
OKTA	67 Neutral	$15.22B	78.86	2.96%	―	12.12%	―
CFLT	63 Neutral	$8.09B	―	-29.62%	―	21.58%	18.88%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
APPN	58 Neutral	$3.02B	-410.83	―	―	15.97%	91.88%
RBRK	50 Neutral	$17.03B	-44.06	―	―	48.93%	69.39%

Appian Corporate Events

Appian’s General Counsel Announces Retirement Plans

On September 29, 2025, Christopher Winters, General Counsel and Secretary of Appian Corporation, announced his retirement plans effective during the company’s fourth fiscal quarter ending December 31, 2025. Winters will continue in his role until November 4, 2025, and assist in the transition to his successor, impacting the company’s leadership continuity.