2446

Appian Reports Q4: Everything You Need To Know Ahead Of Earnings


Radek Strnad /
2022/02/16 6:00 am EST
Add to Watchlist

Low code software development platform provider Appian (Nasdaq: APPN) will be reporting results tomorrow after market hours. Here's what you need to know.

Last quarter Appian reported revenues of $92.4 million, up 19.5% year on year, beating analyst revenue expectations by 1.49%. It was a mixed quarter for the company, with a significant improvement in gross margin but a decline in net revenue retention rate.

Is Appian buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Appian's revenue to grow 13.2% year on year to $95.3 million, slowing down from the 18.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.23 per share.

Appian Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 6.8%.

Looking at Appian's peers in the productivity software segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. ServiceNow (NYSE:NOW) delivered top-line growth of 29% year on year, beating analyst estimates by 0.6% and 8x8 (NYSE:EGHT) reported revenues up 14.7% year on year, exceeding estimates by 2.07%. ServiceNow traded up 9.6% on results, 8x8 was down 7.05%. Read our full analysis of ServiceNow's results here and 8x8's results here.

The sentiment among investors in the software segment has been improving, with the stocks up on average 5.07% over the last month. Appian is up 10% during the same time, and is heading into the earnings with analyst price target of $69.3, compared to share price of $57.1.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.