DA Davidson Initiates Neutral Rating on Appian with $30 Price Target Following Q2 Earnings Beat

Appian Corporation (APPN) has reported Q2 2025 earnings that beat expectations on both revenue and earnings, with results significantly above guidance. DA Davidson analyst Gil Luria has initiated a Neutral rating and a price target of $30. The firm highlighted two factors driving significant increases to its full-year guidance: new business demand and a larger pipeline. Appian provides an automation platform that helps businesses design, automate, and optimize processes using AI, process mining, and data integration.

Appian Corporation (APPN) has reported its financial results for the second quarter of 2025, which exceeded both revenue and earnings expectations. The company's results were significantly above its guidance, with notable improvements in cloud subscriptions and overall revenue. DA Davidson analyst Gil Luria has initiated a Neutral rating and set a price target of $30 for the stock.

Key financial highlights for the second quarter include:
- Cloud subscriptions revenue increased by 21% year-over-year to $106.9 million [3].
- Total revenue grew by 17% year-over-year to $170.6 million [3].
- The company reported a GAAP operating loss of $(11.0) million, a significant improvement from $(39.2) million in Q2 2024 [1].
- Non-GAAP operating income was $5.6 million, compared to a non-GAAP operating loss of $(13.1) million in Q2 2024 [1].
- GAAP net loss was $(0.3) million, a turnaround from $(43.6) million in Q2 2024 [1].
- Non-GAAP net income was $0.3 million, compared to a non-GAAP net loss of $(18.2) million in Q2 2024 [1].
- Adjusted EBITDA was $8.1 million, compared to an adjusted EBITDA loss of $(10.5) million in Q2 2024 [1].
- Net cash used by operating activities was $(1.9) million, a significant improvement from $(17.6) million in Q2 2024 [1].

Appian's strong performance can be attributed to the successful implementation of Appian AI, which has driven higher prices and expanded the sales pipeline. The company's recognition as a leader in the 2025 Gartner® Magic Quadrant™ for Enterprise Low-Code Application Platforms, Chartis for AI-Powered Process Orchestration, and inclusion in the 2025 AIFinTech100 List further underscores its market position [1].

Appian has also launched Appian Connected Claims 2.0, aiming to revolutionize insurance claims management with AI. Additionally, the company has appointed David Crozier as Chief Marketing Officer to bolster its marketing efforts [1].

For the third quarter and full year of 2025, Appian has provided guidance:
- Q3 2025: Cloud subscriptions revenue is expected to be between $109.0 million and $111.0 million, representing year-over-year growth of 16% to 18%. Total revenue is expected to be between $172.0 million and $176.0 million, representing a year-over-year growth of 12% to 14% [3].
- Full Year 2025: Cloud subscriptions revenue is expected to be between $429.0 million and $433.0 million, representing year-over-year growth of 17% to 18%. Total revenue is expected to be between $695.0 million and $703.0 million, representing year-over-year growth of 13% to 14% [3].

References:
[1] https://www.tradingview.com/news/tradingview:c2f8f9a304d3d:0-appian-corporation-q2-2025-financial-results/
[2] https://www.tradingview.com/news/tradingview:692701f0b960b:0-appian-corp-sec-10-q-report/
[3] https://investors.appian.com/news-releases/news-release-details/appian-announces-second-quarter-2025-financial-results