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Appian (APPN) to Report Q4 Earnings: What's in the Cards?

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Appian (APPN - Free Report) is set to report fourth-quarter 2020 results on Feb 18.

For the quarter, the company projects total revenues between $73 million and $74 million, suggesting growth of 6-8%, year over year. The Zacks Consensus Estimate for revenues is pegged at $73.6 million, indicating an increase of 7.2% from the year-ago quarter’s reported figure.

Moreover, Appian expects non-GAAP net loss in the band of 16-18 cents per share. The consensus mark for loss has remained unchanged at 17 cents per share over the past 30 days.

Notably, the company’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 54.1%.

Let’s see how things have shaped up for this announcement.

 

Appian Corporation Price and EPS Surprise Appian Corporation Price and EPS Surprise

Appian Corporation price-eps-surprise | Appian Corporation Quote

Factors to Watch

Appian’s fourth-quarter performance is expected to reflect continued growth in subscription revenues. Cloud subscription revenues are projected in the range of $35 million and $35.5 million, suggesting year-over-year growth between 33% and 35%.

Remarkably, in the third quarter of 2020, Appian’s cloud subscription revenue jumped 40% year over year to $34.3 million. In addition, as of Sep 30, 2020, Appian’s cloud subscription revenue retention rate was 115%.

Markedly, financial services and life sciences remained two of the largest industries for Appian. Robust adoption of the company’s solutions in these verticals is likely to have driven subscription revenues in the to-be-reported quarter as well.

Steady demand for Appian’s low-code automation platform on the ongoing digital transformation, which has been further accelerated due to the pandemic, is likely to have been a major growth driver.

In the December-end quarter, the company was selected by Accenture (ACN - Free Report) to join its INTIENT Network for life sciences as a core partner. Per the deal, Appian’s low-code automation platform would be utilized to aid research and innovation in drug discovery and provide improved patient outcomes for life-sciences customers.

In addition, continued momentum in the company’s federal business is anticipated to have contributed to top-line growth in the soon-to-be-reported quarter.

Appian teamed up with Accenture Federal Services (AFS) to simplify the federal acquisition process for government and defense organizations with the help of Appian’s low-code platform in collaboration with AFS.

Additionally, this Zacks Rank #4 (Sell) company continues to bring enhancements to its low-code automation platform, which is likely to have attracted new customers and aided top-line growth.

During the quarter under review, Appian launched the latest version of its low-code automation platform, which is a unified platform that provides low-code robotic process automation, AI and process automation.

Apart from this, Appian’s Workforce Safety solution was deployed by Volkswagen Group of America to facilitate the phased return of the latter’s workforce across its offices across the United States amid the coronavirus crisis, along with keeping in mind the health and safety of employees.

Furthermore, the top line is likely to have benefited from higher customer acceptance for Appian’s solutions driven by contributions from a solid partner base, which includes Box (BOX - Free Report) , Alphabet (GOOGL - Free Report) , KPMG, Cognizant and Deloitte.

Additionally, availability of Appian’s Connected Claims, Workforce Safety and CampusPass solutions, along with its professional services, in the Amazon Web Services (AWS) Marketplace is likely to have been a major positive.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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