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Appian Corp A APPN

Morningstar Rating
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Stock XNAS Rating as of
$31.98 +0.95 (3.06%)
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As of Delayed Price Post-Trading: $31.67 −0.30
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Company Report

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Appian Earnings: Shares Tank Excessively as Foreign Exchange Headwinds Weigh on Earnings

Emma Williams

No moat Appian’s first-quarter 2024 results met our top-line expectations but exceeded our adjusted EBITDA forecast. Appian foreshadowed this result by providing preliminary results at its annual customer conference in April. Despite the firm delivering a reasonable quarter, shares crumbled around 20% after release as foreign exchange losses weighed on net income and resulted in an earnings per share miss relative to FactSet consensus. We believe Appian is executing well on a path to future profitability supported by solid retention metrics, and that the market has overreacted to this near-term nonoperating headwind. Appian does not hedge foreign exchange risk, so is expected to report fluctuations in net earnings as result of gains or losses on remeasurement.

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Price vs Fair Value

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APPN is trading at a 18% discount.
Price
$31.03
Fair Value
$74.00
Uncertainty
Very High
1-Star Price
$77.80
5-Star Price
$58.00
Economic Moat
Pgg
Capital Allocation
Xmgcfptx

Bulls Say, Bears Say

Bulls

Appian’s cloud retention metrics are strong, indicating that once customers are on the platform, they rarely leave.

Bears

Appian has yet to turn a GAAP profit, and faces continued competition from Pegasystems, as well as larger companies such as Salesforce and ServiceNow.

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News

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Trading Information

Previous Close Price
$31.03
Day Range
$30.95–32.54
52-Week Range
$28.22–54.26
Bid/Ask
$31.03 / $32.30
Market Cap
$2.31 Bil
Volume/Avg
795,544 / 564,043

Key Statistics

Price/Earnings (Normalized)
—
Price/Sales
4.92
Dividend Yield (Trailing)
—
Dividend Yield (Forward)
—
Total Yield
—

Company Profile

Appian is a low-code enterprise platform-as-a-service company focusing on business process management. The Appian platform is an integrated automation platform providing tools for organizations to design, automate, and optimize end-to-end processes and complex business operations. Capabilities include case management, robotic process automation, artificial intelligence, data fabric, and process mining. Most of Appian’s revenue is subscription based with the remainder from services, with much of its subscription revenue being derived from its cloud-based platform, Appian Cloud.
Sector
Technology
Industry
Software - Infrastructure
Stock Style Box
Small Core
Total Number of Employees
2,243
Website
https://www.appian.com

Competitors

Valuation

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Metric
APPN
NOW
CRM
Price/Earnings (Normalized)
 —66.5432.61
Price/Book Value
 51.4818.164.37
Price/Sales
 4.9215.627.59
Price/Cash Flow
 —39.2820.21
Price/Earnings
APPN
NOW
CRM

Financial Strength

Metric
APPN
NOW
CRM
Quick Ratio
 0.890.940.96
Current Ratio
 1.121.061.09
Interest Coverage
 −5.0630.4218.87
Quick Ratio
APPN
NOW
CRM

Profitability

Metric
APPN
NOW
CRM
Return on Assets (Normalized)
 −9.63%14.90%8.50%
Return on Equity (Normalized)
 −63.93%34.22%13.87%
Return on Invested Capital (Normalized)
 −12.85%22.89%11.66%
Return on Assets
APPN
NOW
CRM
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