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Appian (APPN) Updates Platform for AI Process Automation

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Appian (APPN - Free Report) is strengthening its portfolio with the launch of the latest version of the Appian Platform for AI process automation. The solution aims to improve end-to-end automation and data-driven decisions using self-service analytics (SSA) and generative Private AI.

The availability of the new version of the Appian platform will help business and IT leaders optimize processes, improve user experiences and deliver better business outcomes.

The platform update includes a preview version of Appian's SSA capabilities, allowing any user to access insights from Appian's Data Fabric with ease.

Appian's Data Fabric combines data from many sources into a safe, uniform data model without moving the data. Appian users use SSA to explore and analyze their data, utilizing the capabilities of Appian AI Copilot, which leverages the power of generative AI to assist users in gaining new insights from their reports, even recommending the next activities to solve business needs based on report data.

The additional features in the latest version of the Appian platform include document extraction with high precision, faster language translations for apps and expanded UI controls.

 

Appian’s Robust Portfolio Aids Prospects

Appian reported third-quarter 2023 revenues of $137.1 million, which increased 16% year over year. Increased number of customers and improvement in revenues from subscriptions and professional services were growth drivers. The company’s cloud subscription revenues grew 27% year over year to $77.2 million.

The company’s strong portfolio has been benefiting its top line. It recently launched the latest version of Appian AI Copilot, which includes increased data fabric scalability and security, a more unified Appian robotic process automation and an improved AI skill designer experience.

Appian accelerated end-to-end application development capabilities, decreased implementation times, lowered total cost of ownership and enabled developers to become actual business value-added consultants.

In July 2023, Appian introduced its Insight to Action program for process mining, which assists firms in improving business processes by providing mining preparation, analysis and service hours. It combines with automation on a low-code platform, making simple changes.

Appian also benefited from an expanded partner base, resulting in increased income from subscriptions and on-premise licenses.

The company’s focus on strengthening its unique product range, driving digital transformation for its customers and utilizing AI-based solutions, is expected to boost its prospects.

Q4 View Strong

For the fourth quarter of 2023, Appian expects total revenues between $138 million and $143 million, indicating year-over-year growth of 10% to 14%

The Zacks Consensus Estimate for fourth-quarter 2023 revenues is pegged at $140.41 million, indicating 11.6% year-over-year growth.

For fiscal 2023, the company expects total revenues between $538 million and $543 million, indicating year-over-year growth of 15% to 16%.

The Zacks Consensus Estimate for fiscal 2023 revenue is pegged at $540.45 million, indicating 15.5% year-over-year growth.

Zacks Rank & Stocks to Consider

Appian currently has a Zacks Rank #3 (Hold).

Appian shares have gained 12.9% year to date, underperforming the Zacks Internet Software industry’s rise of 53.6%.

Some top-ranked stocks in the broader technology sector are NVIDIA (NVDA - Free Report) , Flex (FLEX - Free Report) , and Badger Meter (BMI - Free Report) . NVIDIA, Flex, and Badger Meter each sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

NVIDIA shares have gained 237.3% in the year-to-date period. NVIDIA's long-term earnings growth rate is currently projected at 13.50%.

Flex shares have gained 22.3% in the year-to-date period. Flex’s long-term earnings growth rate is currently projected at 12.39%.

Badger Meter’s shares have gained 36.1% in the year-to-date period. Badger Meter’s long-term earnings growth rate is currently projected at 20.39%.

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