Appian Earnings: Good Quarter With Marketing Events Weighing Down the EBITDA Outlook

No-moat Appian reported strong third-quarter results, with slightly better-than-expected revenue and much better-than-expected profitability. Guidance was mixed, with in-line revenue and lower profitability. Management believes recent pricing changes, artificial intelligence introductions, and selling strategies are bearing fruit. Based on results and guidance, we have fine-tuned our near-term assumptions and are maintaining our fair value estimate of $35 per share. We see shares as slightly overvalued and continue to prefer moatier names under our coverage.