What To Expect From Appian’s (APPN) Q1 Earnings

Low code software development platform provider Appian (Nasdaq: APPN) will be announcing earnings results this Thursday before market open. Here’s what investors should know.

Appian beat analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $166.7 million, up 14.7% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ billings estimates.

Is Appian a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Appian’s revenue to grow 8.9% year on year to $163.2 million, slowing from the 10.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.03 per share.

Analysts covering the company have generally 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, beating revenue estimates every single time over the past two years by 2% on average.

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. Pegasystems delivered year-on-year revenue growth of 44.1%, beating analysts’ expectations by 33.1%, and Microsoft reported revenues up 13.3%, topping estimates by 2.3%. Pegasystems traded up 28.8% following the results while Microsoft was also up 8.4%.

Read our full analysis of Pegasystems’s results here and Microsoft’s results here.

There has been positive sentiment among investors in the automation software segment, with share prices up 13.8% on average over the last month. Appian is up 17.8% during the same time and is heading into earnings with an average analyst price target of $32.33 (compared to the current share price of $30.50).

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