APPN Stock Overview
Appian Corporation provides low-code automation platform in the United States and internationally.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$41.49|
|52 Week High||US$107.50|
|52 Week Low||US$38.78|
|1 Month Change||-14.40%|
|3 Month Change||-24.62%|
|1 Year Change||-61.26%|
|3 Year Change||-10.25%|
|5 Year Change||45.78%|
|Change since IPO||176.42%|
Recent News & Updates
Appian: Under-Recognized Potential
Shares of Appian have dropped 20% this year to a very buyable valuation. Appian's fundamentals have held up well amid a tightening macro environment. Appian has preserved 30%+ growth rates. Though profits have dropped slightly, Appian's new larger subscription revenue mix and higher gross margins should help the business to scale. An impending $2 billion windfall from Appian's court victory against Pegasystems is hardly factored into the stock price. This year's market chaos has called what I would call "dislocation" in the growth stock segment. Investors have sold off high-valued growth stocks, especially in the tech sector, in an almost indiscriminate fashion. Fear bred selling momentum, and just like in the tech run-up of the pandemic when fundamentals were ignored in sharp rallies, fundamentals were also ignored on the way down. It's a good time, in my view, to buy into shares of high-quality tech stocks on these pullbacks, and Appian (APPN) is a great candidate here. This business process management (BPM) software company is capitalizing on a post-pandemic surge in demand for business transformation and automation. But in spite of continued strong results, the stock has followed the rest of the market in a downtrend this year, and has shed 20% of its value to date. APPN data by YCharts Though I haven't always been bullish on Appian, I remain a solid buy here. The company's management has an interesting stance on the state of the macroeconomy - while Appian is officially "bearish" and has seen some signs of deal cycles elongating, it's so far citing no impact from macro conditions on its results. More on this regard from CEO Matt Calkins' prepared remarks on the Q2 earnings call: Appian is officially bearish on the economy. I'm bearish. I think inflation will persist and economy-wide demand will slow, and the U.S. will probably end up accommodating an unhealthy level of inflation while suffering the penalties of reduced growth as well, essentially the opposite of the soft landing theory. I say this upfront because I want to be clear that while my forecast informs Appian's plans, it stands apart from Appian's experience. Appian is not seeing any evidence of a downturn. None of the symptoms I just described are visible from the perspective of our business. We saw some deals slip out of the second quarter, which could be taken as a sign that deal cycles are lengthening but we always see a few deals slip, and Q2 wasn't unusual." Looking ahead to the longer term, as a reminder for investors who are newer to this name, here are what I view to be the key bullish drivers for Appian: Broad use cases and deeply greenfield market. Appian estimates its TAM at roughly $37 billion, indicating that its present ~$500 million annual revenue run rate is only a fraction penetrated into the BPM space (business process management). Automation is a benefit to any industry, any department, and any workflow - and with the dearth and expense of technical workers to go solve these problems, businesses are finding it faster and easier to have line-of-business users automate their own processes instead, as long as limited technical knowledge is needed. $2 billion court decision against Pegasystems in Appian's favor. The quick background here: Pegasystems (PEGA), one of Appian's key rivals in BPM, was found guilty of hiring a worker as a government contractor to remit back Appian's internal software secrets back to Pegasystems. Needless to say, a $2 billion windfall would be quite substantial for a company like Appian that generates shy of $500 million in revenue and whose market cap is less than $4 billion. Stellar growth is now coming from subscriptions. Appian continues to generate >30% y/y subscription revenue growth, and its mix of low-margin professional services revenue continues to shrink, which has pushed up Appian's gross margins to be closer in line with software peers. High levels of government authorization. As software investors are aware, selling software into the U.S. federal government requires hard-earned approvals, but can command some of the highest contract values in the industry. Appian Government Cloud received provisional authorization at "Impact Level 5", which broadens its scope with the Department of Defense. According to Appian, it is one of the first companies ever to receive this level of authorization. Checking in on valuation: at current share prices near $52, Appian trades at a market cap of $3.79 billion. After we net off the $138.0 million of cash on Appian's most recent balance sheet, the company's resulting enterprise value is $3.66 billion. For the current fiscal year, Appian has guided to $466-$470 million in revenue, representing 26-27% y/y growth. This is an increase from the company's prior outlook of 23-24% y/y growth - a refreshing instance of a tech companies boosting its forecast when guidance cuts are more the norm during the Q2 earnings cycle. Appian outlook (Appian Q2 earnings deck) Against this revenue outlook, Appian trades at 7.8x EV/FY22 revenue. If we look ahead to FY23, where Wall Street consensus is calling for Appian to grow revenue 16% y/y to $542.9 million (data from Yahoo Finance), Appian's revenue multiple goes to 6.7x EV/FY23 revenue. Note that it seems the market is heavily discounting the $2.036 billion in damages awarded to Appian in the Pegasystems case. Now, here's the fine print on the press release announcing the court victory: The jury's verdict and the court's entry of judgment is subject to appeal by Pegasystems. Pegasystems is not required to pay Appian the amount awarded by the jury until all appeals are exhausted and the judgment is final. Appian cannot predict the outcome of any appeals or the time it will take to resolve them. While it's certainly possible that the outcome will be appealed and the total damages reduced, this victory represents a giant windfall for Appian. Even if, say, ~$1 billion or half of the damages were ultimately awarded, Appian's enterprise value would fall to $2.66 billion and trade at a ~4.9x multiple of FY23 revenue. The bottom line here: there's a lot to like about Appian in the current market. It has successfully pulled off a beat-and-raise quarter in Q2 at a time that many companies are voicing slowdown concerns. Its high mix of high-margin subscription revenue will eventually tip the company into profitability, and it is supported by secular tailwinds toward software-driven business transformation. Stay long here and wait on a full rebound. Q2 download Let's now cover Appian's latest Q2 results in greater detail. The Q2 earnings summary is shown below: Appian Q2 results (Appian Q2 earnings deck)
|APPN||US Software||US Market|
Return vs Industry: APPN underperformed the US Software industry which returned -34.5% over the past year.
Return vs Market: APPN underperformed the US Market which returned -21.6% over the past year.
|APPN Average Weekly Movement||8.9%|
|Software Industry Average Movement||9.0%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.9%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: APPN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.
Volatility Over Time: APPN's weekly volatility (9%) has been stable over the past year.
About the Company
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.
Appian Fundamentals Summary
|APPN fundamental statistics|
Is APPN overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|APPN income statement (TTM)|
|Cost of Revenue||US$119.04m|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||-1.71|
|Net Profit Margin||-29.34%|
How did APPN perform over the long term?See historical performance and comparison
Is APPN undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 0/6
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for APPN?
Other financial metrics that can be useful for relative valuation.
|What is APPN's n/a Ratio?|
Price to Sales Ratio vs Peers
How does APPN's PS Ratio compare to its peers?
|APPN PS Ratio vs Peers|
|Company||PS||Estimated Growth||Market Cap|
VRNS Varonis Systems
TENB Tenable Holdings
PING Ping Identity Holding
Price-To-Sales vs Peers: APPN is expensive based on its Price-To-Sales Ratio (7.1x) compared to the peer average (6.3x).
Price to Earnings Ratio vs Industry
How does APPN's PE Ratio compare vs other companies in the US Software Industry?
Price-To-Sales vs Industry: APPN is expensive based on its Price-To-Sales Ratio (7.1x) compared to the US Software industry average (4.3x)
Price to Sales Ratio vs Fair Ratio
What is APPN's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PS Ratio||7.1x|
|Fair PS Ratio||6.9x|
Price-To-Sales vs Fair Ratio: APPN is expensive based on its Price-To-Sales Ratio (7.1x) compared to the estimated Fair Price-To-Sales Ratio (6.9x).
Share Price vs Fair Value
What is the Fair Price of APPN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: APPN ($41.49) is trading above our estimate of fair value ($12.5)
Significantly Below Fair Value: APPN is trading above our estimate of fair value.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.
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How is Appian forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
Future Growth Score1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: APPN is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: APPN is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: APPN is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: APPN's revenue (17% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: APPN's revenue (17% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: APPN is forecast to be unprofitable in 3 years.
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How has Appian performed over the past 5 years?
Past Performance Score0/6
Past Performance Score 0/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: APPN is currently unprofitable.
Growing Profit Margin: APPN is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: APPN is unprofitable, and losses have increased over the past 5 years at a rate of 21.7% per year.
Accelerating Growth: Unable to compare APPN's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: APPN is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (18.3%).
Return on Equity
High ROE: APPN has a negative Return on Equity (-60.34%), as it is currently unprofitable.
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How is Appian's financial position?
Financial Health Score5/6
Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Stable Cash Runway
Forecast Cash Runway
Financial Position Analysis
Short Term Liabilities: APPN's short term assets ($315.4M) exceed its short term liabilities ($212.3M).
Long Term Liabilities: APPN's short term assets ($315.4M) exceed its long term liabilities ($52.2M).
Debt to Equity History and Analysis
Debt Level: APPN is debt free.
Reducing Debt: APPN had no debt 5 years ago.
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: APPN has sufficient cash runway for more than a year based on its current free cash flow.
Forecast Cash Runway: Insufficient data to determine if APPN has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.
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What is Appian current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
Dividend Yield vs Market
Notable Dividend: Unable to evaluate APPN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate APPN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if APPN's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if APPN's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as APPN has not reported any payouts.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Matt Calkins (49 yo)
Mr. Matthew W. Calkins, also known as Matt, has been the Chief Executive Officer and President of Appian Corporation since August 1999. Mr. Calkins co-founded Appian Corporation in August 1999 and has been...
CEO Compensation Analysis
Compensation vs Market: Matt's total compensation ($USD981.85K) is below average for companies of similar size in the US market ($USD6.80M).
Compensation vs Earnings: Matt's compensation has increased whilst the company is unprofitable.
Experienced Management: APPN's management team is seasoned and experienced (6.7 years average tenure).
Experienced Board: APPN's board of directors are seasoned and experienced ( 13.9 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
|22 Jun 22||BuyUS$4,596,979||Abdiel Capital Advisors, LP||Company||104,552||US$44.77|
|03 Jun 22||BuyUS$1,832,527||Abdiel Capital Advisors, LP||Company||38,351||US$48.86|
|31 May 22||BuyUS$3,886,532||Abdiel Capital Advisors, LP||Company||81,825||US$48.47|
|24 May 22||BuyUS$7,180,218||Abdiel Capital Advisors, LP||Company||163,390||US$51.00|
|19 May 22||BuyUS$14,345,483||Abdiel Capital Advisors, LP||Company||289,966||US$52.00|
|10 May 22||BuyUS$36,976,644||Abdiel Capital Advisors, LP||Company||650,000||US$59.42|
|10 May 22||BuyUS$36,976,644||Abdiel Capital Advisors, LP||Company||650,000||US$59.42|
|09 May 22||BuyUS$38,015,757||Abdiel Capital Advisors, LP||Company||843,000||US$50.29|
|06 May 22||BuyUS$20,699,131||Abdiel Capital Advisors, LP||Company||443,000||US$50.29|
|04 May 22||BuyUS$993,651||Abdiel Capital Advisors, LP||Company||16,762||US$59.28|
|04 May 22||BuyUS$7,568,834||Abdiel Capital Advisors, LP||Company||157,000||US$51.00|
|08 Apr 22||BuyUS$2,632,744||Abdiel Capital Advisors, LP||Company||47,500||US$57.00|
|04 Apr 22||SellUS$228,025||Albert Biddle||Individual||3,500||US$65.15|
|18 Mar 22||BuyUS$59,000||Abdiel Capital Advisors, LP||Company||1,000||US$59.00|
|17 Mar 22||BuyUS$7,396,817||Abdiel Capital Advisors, LP||Company||140,000||US$59.28|
|14 Mar 22||BuyUS$5,429,543||Abdiel Capital Advisors, LP||Company||105,500||US$57.00|
|09 Mar 22||BuyUS$5,954,530||Abdiel Capital Advisors, LP||Company||110,000||US$56.26|
|01 Mar 22||BuyUS$1,381,162||Abdiel Capital Advisors, LP||Company||22,875||US$61.28|
|24 Feb 22||BuyUS$6,611,695||Abdiel Capital Advisors, LP||Company||126,231||US$56.00|
|01 Feb 22||BuyUS$7,371,402||Abdiel Capital Advisors, LP||Company||126,350||US$59.15|
|25 Jan 22||BuyUS$1,918,165||Abdiel Capital Advisors, LP||Company||39,500||US$52.52|
|03 Dec 21||BuyUS$26,476||Michael Devine||Individual||400||US$66.19|
|22 Nov 21||BuyUS$30,432||Michael Devine||Individual||400||US$76.08|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Appian Corporation's employee growth, exchange listings and data sources
- Name: Appian Corporation
- Ticker: APPN
- Exchange: NasdaqGM
- Founded: 1999
- Industry: Systems Software
- Sector: Software
- Implied Market Cap: US$3.006b
- Shares outstanding: 72.45m
- Website: https://www.appian.com
Number of Employees
- Appian Corporation
- 7950 Jones Branch Drive
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|APPN||NasdaqGM (Nasdaq Global Market)||Yes||Class A Common Stock||US||USD||May 2017|
|910||DB (Deutsche Boerse AG)||Yes||Class A Common Stock||DE||EUR||May 2017|
|0HGM||LSE (London Stock Exchange)||Yes||Class A Common Stock||GB||USD||May 2017|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/23 00:00|
|End of Day Share Price||2022/09/23 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.