Appian (APPN) AI Stock Analysis

• Market Cap: $2.22B
• Dividend Yield: N/A
• Average Volume (3M): 841.14K
• 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: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.00
• Shares Outstanding: 42,943,870
• 10 Day Avg. Volume: 593,828
• 30 Day Avg. Volume: 841,140
• 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: 1.05
• Enterprise Value/Revenue: 3.56
• Enterprise Value/Gross Profit: 4.66
• Enterprise Value/Ebitda: 121.30
• 1Y Price Target: $33.80
• Price Target Upside: 12.59% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 56 Neutral
• Price Target: $32.00 ▲(6.60% Upside)

Appian's overall stock score reflects strong revenue growth and strategic positioning in AI and the federal sector, as highlighted in the earnings call. However, significant financial challenges, including high leverage and ongoing profitability issues, weigh heavily on the score. Technical indicators suggest neutral momentum, while valuation metrics highlight concerns due to negative earnings and lack of dividends.

Positive Factors

Revenue Growth

Strong revenue growth in cloud subscriptions indicates robust demand for Appian's platform, supporting long-term business expansion and market penetration.

AI-Driven Opportunities

Leveraging AI enhances Appian's product offerings, creating new revenue streams and strengthening its competitive position in the tech industry.

Federal Business Growth

Strong performance in the federal sector underscores Appian's strategic positioning and ability to capture significant government contracts, ensuring stable growth.

Negative Factors

High Leverage

High leverage poses financial risks, potentially limiting Appian's ability to invest in growth opportunities and impacting long-term financial stability.

Profitability Challenges

Persistent profitability issues highlight operational inefficiencies, which may hinder Appian's ability to achieve sustainable long-term financial health.

Decline in Revenue Retention

A decline in revenue retention suggests challenges in maintaining customer loyalty, which could impact future revenue growth and market share.

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 effective cost management with a gross profit margin of 76.34%. However, profitability challenges persist with negative net profit and EBIT margins, and high leverage indicated by a debt-to-equity ratio of -5.74. Improved cash flow metrics suggest better liquidity, but financial stability is hindered by persistent losses.

Income Statement

Appian's revenue has shown consistent growth, with a TTM growth rate of 3.82%. However, the company is struggling with profitability, as evidenced by negative net profit margins and EBIT margins over the years. The gross profit margin remains strong at 76.34% in TTM, indicating effective cost management in production. Despite revenue growth, the persistent negative net income and EBIT margins highlight challenges in achieving operational profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of -5.74 in TTM, indicating significant leverage and financial risk. The negative stockholders' equity suggests potential solvency issues. Return on equity has improved to 41.06% in TTM, but this is primarily due to negative equity, which distorts the metric. The equity ratio is negative, reflecting the company's reliance on debt financing.

Cash Flow

Appian's cash flow situation has improved, with a significant increase in free cash flow growth of 49.67% in TTM. The operating cash flow to net income ratio is positive at 0.14, indicating some level of cash generation relative to net income. The free cash flow to net income ratio is strong at 0.95, suggesting efficient cash conversion despite net losses. This improvement in cash flow metrics is a positive sign for liquidity.

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: 30.02
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 30.02 is below the 20-day moving average (MA) of 31.58, below the 50-day MA of 30.17, and below the 200-day MA of 31.11, indicating a bearish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 43.24 is Neutral, neither overbought nor oversold. The STOCH value of 21.78 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
FOUR	73 Outperform	$6.80B	28.48	19.00%	―	23.86%	79.35%
AKAM	72 Outperform	$11.12B	27.50	9.21%	―	3.98%	-31.18%
OKTA	69 Neutral	$16.73B	110.01	2.61%	―	12.68%	―
CFLT	66 Neutral	$7.00B	―	-32.18%	―	23.02%	21.01%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
APPN	56 Neutral	$2.22B	―	-936.62%	―	13.67%	84.35%
RBRK	51 Neutral	$16.35B	―	218.28%	―	47.72%	61.95%

Appian Corporate Events

Appian Announces $10 Million Share Repurchase Program

Appian Corporation’s Board of Directors has approved a Share Repurchase Program, allowing the company to buy back up to $10 million of its common stock. This initiative, effective immediately and running through August 28, 2027, offers flexibility in the repurchase methods and is influenced by factors such as market conditions and investment opportunities, potentially impacting the company’s financial strategies and shareholder value.

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.