Appian's Q4 Earnings Surge: AI Integration Boosts Revenue and Outlook

Appian stock surges on strong quarterly results and better-than-expected outlook - SiliconANGLE

Appian stock surges on strong quarterly results and better-than-expected outlook Shares in Appian Corp. closed regular trading up 16.2% today after the business automation software provider reported better-than-expected earnings and revenue in its fiscal 2024 fourth quarter and smashed earnings expectations for the year ahead. For the fourth quarter that ended on Dec. 31, Appian reported adjusted earnings per share of zero cents - break even, down from six cents per share in the fourth quarter of 2023, on revenue of $166.7 million, up 15% year-over-year. Both figures were just ahead of the one cent per share loss and revenue of $166.35 million expected by analysts. Across Appian's verticals, the company saw cloud subscription revenue of $98.9 million, up 19% year-over-year and total subscription revenue, which includes cloud, on-premises and maintenance support, of $136.8 million, up 18%. Profession services revenue came in at $29.9 million, up 1% year-over-year. Appian's customers are notably sticking around, with the company reporting a cloud subscription revenue retention rate of 116% as of the end of the quarter. Business highlights in the quarter included Appian's December launch of its latest platform release which introduced process automation powered by enterprise artificial intelligence. The update included the launch of Appian Autoscale and enhanced AI insights, both designed for operational efficiency, scalability and process performance. Appian Autoscale allows organizations to manage high-volume, straight-through processes such as real-time claims validation, continuous transaction monitoring and credit risk scoring. The solution also allows users to scale new and existing processes efficiently while providing monitoring tools for better visibility into millions of process instances. The release also included AI advancements, including FedRAMP Moderate compliance for AI Skills and AI Copilot, improved document extraction for multi-page tables and faster response times in AI Copilot for data fabric. The company's Process Insights AI now provides AI-driven key performance indicator suggestions and insight summaries, enhancing collaboration and decision-making. For the full year, Appian reported an adjusted loss of 35 cents per share, up from a loss of 81 cents per share in 2023, on revenue of $617 million, up 13% year-over-year. "In 2024, Appian demonstrated its ability to grow with increasing efficiency," said Matt Calkins, chief executive officer and founder of Appian, in the company's earnings release. "We specialize in creating value with AI, by deploying it in a process. While others bring work to AI, we bring AI to work." For its fiscal 2025 first quarter, Appian expects adjusted earnings per share of two cents to five cents on revenue of $162 million to $164 million. For the full year, the company expects adjusted earnings of 17 cent to 22 cents on revenue of $680 million to $684 million. The earnings per share forecast for the first quarter was smashed out of the park and halfway to the moon, as analysts had expected Appian to forecast a 39 cents per share loss. The margin wasn't quite as large for the full-year outlook but was still a beat, as analysts had forecast earnings of 12 cents per share. Appian's revenue outlooks, however, were a miss and a slight miss at the midpoint -- analysts had forecast revenue of $166.9 million in the first quarter and $682.8 million for the full year. The revenue outlook wasn't enough to dampen investor enthusiasm - at the end of the day, Appian is a company that is switching from years of losses to profitability and its share increase reflects that.

Appian: Revenue Exceeds Expectations | The Motley Fool

Appian (APPN 17.04%), a leader in low-code and process automation platform solutions, recently released its fourth quarter of 2024 earnings on February 19, 2025. The earnings reveal strong cloud subscription revenue growth coupled with operational efficiencies that helped reverse operating losses to operating income. The company reported a breakeven Non-GAAP earnings per share (EPS), overcoming an anticipated loss of $0.01, and total revenue came in at $166.7 million, marginally surpassing expectations of $164 million. Overall, Appian demonstrated resilience and strategic progress despite certain setbacks like professional services stalling and foreign currency losses impacting net income. Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in 2024-11-07 earnings report. Appian is a pioneer in low-code solutions, enabling businesses to rapidly build applications with minimal coding. The company's platform integrates artificial intelligence (AI) and process automation to streamline operations, making it invaluable for enterprises aiming to boost productivity. Appian places a strong emphasis on the integration of AI and data, allowing its customers to enhance workflows and decision-making processes. Recently, Appian has focused on expanding its cloud subscription offerings and enhancing its go-to-market strategies. Key success factors include the platform's reliability and security. Its strategic partnerships in key sectors like government and financial services have furthered its competitive positioning. During the fourth quarter, Appian showcased solid growth in cloud subscriptions as it reported $98.9 million in revenue from this segment, exceeding internal guidance. This performance underlines strong market adoption of Appian's solutions. Overall, the company achieved total revenue of $166.7 million, slightly outpacing both analyst and management expectations. From a profitability perspective, Appian moved from a GAAP operating loss to a GAAP operating income of $5 million in Q4. Enhanced operational strategies were pivotal in this transition. Adjusted EBITDA soared to $21.2 million, a dramatic increase from the previous year, showcasing Appian's financial resilience and operational efficiency. However, not all areas performed as robustly. Professional services revenue showed minimal growth for the quarter, up just 1%, with a decline of 5% for the full year. This area may require focused strategic efforts going forward. The net loss included $14.3 million of foreign currency losses, outlining the impactful external market conditions. Appian maintained a strong liquidity position with cash and equivalents of $159.9 million at year-end, underscoring its capacity to support future growth initiatives. The integration of AI and automation continues to be a hallmark of its innovation strategy, providing significant value to its clients. Looking to 2025, Appian management forecasts a 14% growth in cloud subscription revenue for the upcoming year and anticipates a 10% increase in total revenue. Expectations of further improvements in adjusted EBITDA and non-GAAP net income per share signal confidence in ongoing enhancements and strategic positioning. For investors, areas of focus should include Appian's continuous improvement in professional services, the strategic deployment of automation technologies, and its performance in high-value sectors like government and financial services. Notable changes in guidance reflect optimism for ongoing growth and operational advancements, crucially important for sustained investor interest.

Appian Q4 Earnings: AI-Driven Efficiency Boosts Revenue, Subscription Growth, Issues Strong Outlook - Appian (NASDAQ:APPN)

On Wednesday, Appian Corp (NASDAQ: APPN) reported fiscal fourth-quarter 2024 revenue growth of 15% year-on-year to $166.69 million, beating the analyst consensus estimate of $164.26 million. Adjusted EPS of $0.00 beat the analyst consensus loss of $0.01. The stock price climbed after the results. Also Read: GlobalFoundries Gains Analyst Upgrade, Eyes Growth In Automotive And AI-Powered Data Centers Total subscription revenue increased 18% year over year to $136.8 million. Professional services revenue was $29.9 million, up 1% year over year. Adjusted EBITDA was $21.22 million, up from $1.03 million year-over-year. Appian ended the quarter with cash and equivalents of $159.9 million. CEO and founder Matt Calkins noted in 2024 that Appian demonstrated its ability to grow with increasing efficiency. He said the company specialized in creating value with AI by deploying it in a process. Outlook: Appian expects first-quarter fiscal 2025 revenue of $162.0 million-$164.0 million, up by 8%-9% Y/Y against the consensus of $166.79 million. It projects an adjusted EPS of $0.02-$0.05 versus the $0.00 consensus. The company expects fiscal 2025 revenue of $680.0 million-$684.0 million, up by 10% Y/Y, against the consensus of $682.55 million. It projects an adjusted EPS of $0.17-$0.22 against a consensus of $0.13. Appian stock declined over 11% in the last 12 months despite topping the analysts consensus estimates for at least seven out of last eight quarters. Price Action: APPN stock is up 20.80% at $38.69 at the last check on Wednesday. Also Read: Apple Teams Up With Alibaba for AI, Analyst Says Edge Device Integration Could Boost Growth APPNAppian Corp$38.6820.7%WatchlistOverviewMarket News and Data brought to you by Benzinga APIs