APPN - This Growth Stock Is Going All-In on Private AI. Here's What That Means
2023-08-10 09:35:00 ET
Like the rest of the software industry, Appian (NASDAQ: APPN) struggled through most of 2021 and 2022 as valuations came down in the sector.
However, shares of the low-code specialist have rebounded this year, up 50% so far in 2023 as the company has continued to deliver strong growth in cloud subscriptions, guided toward narrower losses, and mapped out a new strategy in artificial intelligence (AI) as excitement builds for new generative AI technologies.
Appian just reported second-quarter earnings, topping estimates on the top and bottom lines. Cloud-subscription revenue rose 30% to $74.4 million, and overall revenue was up 16% to $127.7 million, while its loss per share improved year over year from $0.68 to $0.58. The company continues to spend aggressively on sales and marketing and R&D to drive growth in its cloud-subscription business, which generates gross margins of around 90%.
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This Growth Stock Is Going All-In on Private AI. Here's What That Means