Why Appian Stock Popped Today

Core Insights - Appian's stock rose 14.4% following a strong fourth-quarter earnings report, which included a surprise adjusted profit and better-than-expected revenue [1] Financial Performance - Cloud subscription revenue increased by 26% to $83.1 million, contributing to an overall revenue rise of 16% to $145.3 million, surpassing estimates of $140.9 million [2] - The company achieved a record gross margin of 78%, with subscription gross margin improving to 91%, marking its strongest result in over a year [2] - The net retention rate reached 119%, indicating the fastest growth rate in at least a year [2] - Adjusted EBITDA profit was reported at $1 million, a significant improvement from an adjusted EBITDA loss of $24.8 million in the same quarter last year [3] - Adjusted profit per share was $0.06, up from a loss of $0.28 a year ago, and better than the expected loss of $0.24 [3] Future Outlook - For 2024, Appian's guidance is slightly below analyst consensus, expecting cloud revenue growth of 20% to $364 million-$366 million and total revenue to rise 13% to $615 million-$617 million [4] - The company anticipates an adjusted EBITDA loss of $20 million-$25 million for 2024 [4] - CEO Matt Calkins indicated that the company is on track to achieve EBITDA profitability by 2025 and emphasized initiatives around artificial intelligence and low-code data fabric [5] - An Investor Day conference is scheduled for April, where further details on AI and data fabric initiatives will be shared [5]