Low-code automation software company Appian (NASDAQ:APPN) will be reporting earnings this Thursday before market open. Here’s what investors should know.
Appian beat analysts’ revenue expectations last quarter, reporting revenues of $202.9 million, up 21.7% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ billings estimates and EBITDA guidance for next quarter exceeding analysts’ expectations.
Is Appian a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Appian’s revenue to grow 15.1% year on year, improving from the 11.1% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Appian has a history of exceeding Wall Street’s expectations.
Looking at Appian’s peers in the automation software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. ServiceNow delivered year-on-year revenue growth of 22.1%, beating analysts’ expectations by 0.6%, and Microsoft reported revenues up 18.3%, topping estimates by 1.7%. ServiceNow traded down 17.7% following the results while Microsoft was also down 3.9%.
Read our full analysis of ServiceNow’s results here and Microsoft’s results here.
There has been positive sentiment among investors in the automation software segment, with share prices up 12.4% on average over the last month. Appian is down 8% during the same time and is heading into earnings with an average analyst price target of $27.20 (compared to the current share price of $22.58).
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