Earnings To Watch: Appian (APPN) Reports Q1 Results Tomorrow

Radek Strnad /
2022/05/04 7:45 am EDT
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Low code software development platform provider Appian (Nasdaq: APPN) will be reporting results tomorrow after the bell. Here's what to look for.

Last quarter Appian reported revenues of $104.9 million, up 28.6% year on year, beating analyst revenue expectations by 10.1%. It was a very strong quarter for the company, with an impressive beat of analyst estimates and a full year guidance beating analysts' expectations.

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 20.6% year on year to $107.1 million, improving on the 12.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.13 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 has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 8.28%.

Looking at Appian's peers in the productivity software segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect.  ServiceNow reported revenues up 26.6% year on year, exceeding estimates by 1.34%. Servicenow traded up 4.4% on the results. Read our full analysis of ServiceNow's results here.

The whole tech sector has been facing a sell-off since late last year and software stocks have not been spared, with share price down on average 16.6% over the last month. Appian is down 22.7% during the same time, and is heading into the earnings with analyst price target of $60, compared to share price of $49.69.

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.