What To Expect From Appian’s (APPN) Q2 Earnings

Adam Hejl /
2022/08/03 4:20 am EDT

Low code software development platform provider Appian (Nasdaq: APPN) will be reporting earnings tomorrow after market hours. Here's what investors should know.

Last quarter Appian reported revenues of $114.2 million, up 28.5% year on year, beating analyst revenue expectations by 6.6%. It was a strong quarter for the company, with a solid beat of analyst estimates and a very optimistic guidance for the next quarter.

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 25.2% year on year to $103.9 million, in line with the 24.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.34 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 7.53%.

Looking at Appian's peers in the productivity software segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. ServiceNow delivered top-line growth of 24.3% year on year, missing analyst estimates by 0.62% and RingCentral reported revenues up 28.3% year on year, exceeding estimates by 1.01%. ServiceNow traded down 6.41% on the results, and RingCentral traded up 8.67%. Read our full analysis of ServiceNow's results here and RingCentral's results here.

Investors in the software segment have had steady hands going into the earnings, with the stocks down on average 0.79% over the last month. Appian is down 0.74% during the same time, and is heading into the earnings with analyst price target of $56.7, compared to share price of $50.43.

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.