Scotiabank has revised its price target for Appian Corporation (APPN, Financial), reducing it from $37 to $34, while maintaining a Sector Perform rating on its shares. This adjustment comes as part of a broader evaluation of the U.S. software sector in response to recent market setbacks affecting the industry.
The bank noted that its updates are in line with a sector-wide pullback and that potential impacts relating to tariffs are expected to manifest in the second quarter and the latter half of the year. Investors and stakeholders are advised to monitor these developments closely as they could influence future performances and valuations within the software arena.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Appian Corp (APPN, Financial) is $35.83 with a high estimate of $43.00 and a low estimate of $27.00. The average target implies an upside of 18.36% from the current price of $30.28. More detailed estimate data can be found on the Appian Corp (APPN) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, Appian Corp's (APPN, Financial) average brokerage recommendation is currently 2.9, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Appian Corp (APPN, Financial) in one year is $55.96, suggesting a upside of 84.84% from the current price of $30.275. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Appian Corp (APPN) Summary page.
APPN Key Business Developments
Release Date: February 19, 2025
- Cloud Subscription Revenue (Q4 2024): $98.9 million, up 19% year over year.
- Total Subscription Revenue (Q4 2024): $136.8 million, up 18% year over year.
- Total Revenue (Q4 2024): $166.7 million, up 15% year over year.
- Adjusted EBITDA (Q4 2024): $21.2 million.
- Non-GAAP Gross Margin (Q4 2024): 80%.
- Cloud Subscription Revenue Retention Rate (Q4 2024): 116%.
- Professional Services Revenue (Q4 2024): $29.9 million, up 1% year over year.
- Non-GAAP Net Loss (Q4 2024): $2.2 million or $0.00 per share.
- Cash and Cash Equivalents (End of 2024): $159.9 million.
- Cash Provided by Operations (Q4 2024): $13.9 million.
- Total Deferred Revenue (End of 2024): $287.2 million, up 19% year over year.
- Cloud Subscription Revenue (Full Year 2024): $368 million, up 21% year over year.
- Total Revenue (Full Year 2024): $617 million, up 13% year over year.
- Adjusted EBITDA (Full Year 2024): $20.3 million.
- Non-GAAP Net Loss (Full Year 2024): $25.6 million or $0.35 per share.
- Cash Provided by Operating Activities (Full Year 2024): $6.9 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Appian Corp (APPN, Financial) reported a 19% increase in cloud subscription revenue for Q4 2024, reaching $98.9 million.
- The company's total revenue grew by 15% to $166.7 million in the fourth quarter.
- Appian's non-GAAP gross margin reached 80% in Q4, marking its best performance since the IPO.
- The cloud subscription revenue retention rate was strong at 116%, indicating high customer retention.
- Appian continues to upsell its existing customer base, with two-thirds of customers purchasing more software during 2024.
Negative Points
- The cloud subscription revenue retention rate decreased slightly from 119% a year ago to 116%.
- Professional services revenue only increased by 1% year over year, indicating slower growth in this segment.
- Appian experienced $14.3 million in foreign exchange losses in Q4, compared to gains in the previous year.
- The company's non-GAAP net loss was $2.2 million for Q4, compared to a net income of $4.9 million in the same period last year.
- Appian's guidance for Q1 2025 indicates a slower growth rate in cloud subscription revenue, expected to be between 12% and 14%.
