Appian Q2 Earnings Review: A Beacon of Hope for Automation Software Stocks

Appian (NASDAQ:APPN) reported Q2 revenues of $170.6 million, up 16.5% YoY, exceeding analysts' expectations by 6.7%. The company achieved the highest full-year guidance raise among automation software stocks. Meanwhile, SoundHound AI (NASDAQ:SOUN) reported revenues of $42.68 million, up 217% YoY, outperforming analysts' expectations by 31.2%. The stock is up 52.7% since reporting. Automation software stocks have performed well with share prices up 11.5% on average since the latest earnings results.

Appian (NASDAQ:APPN) and SoundHound AI (NASDAQ:SOUN) have reported strong revenue growth in their Q2 2025 earnings, exceeding analyst expectations and driving the performance of automation software stocks.

Appian reported total revenue of $170.64 million for Q2 2025, a 16.5% increase from the same period last year. The company's subscription revenue, which constitutes its core segment, drove this growth with $132.66 million, reflecting robust demand for its low-code platform. Professional services contributed $37.98 million to the revenue mix. Despite the revenue increase, Appian has yet to turn a profit, with a net loss of $312,000 for the quarter, down 99.3% from the previous year's loss of $43.59 million [1].

Meanwhile, SoundHound AI reported revenues of $42.7 million for Q2 2025, a staggering 217% increase from the same period last year. The company's strong performance was driven by impressive customer wins and expansions, with notable additions including Red Lobster, Applebee's, IHOP, and major Chinese automotive brands. SoundHound's revenue growth has been accelerating, with a 217% year-over-year increase in Q2 following a 151% growth in Q1 2025. The stock has seen a significant rise, up 52.7% since the earnings report [2].

The strong performance of these two companies has contributed to the overall positive sentiment in the automation software sector. According to market data, automation software stocks have seen an average share price increase of 11.5% since the latest earnings results. Appian's stock experienced a decline of 5.87% post-earnings but rebounded with a 5.69% gain for the week. SoundHound AI, on the other hand, has seen a substantial increase in its stock price, driven by its impressive revenue growth.

Both companies have indicated their focus on long-term growth and platform development, with Appian emphasizing cost efficiency and platform innovation, and SoundHound AI expanding its customer base and offerings. Despite their strong revenue growth, both companies are still grappling with profitability, with Appian reporting a net loss and SoundHound AI operating at a loss. However, their aggressive growth strategies and market opportunities suggest that they remain promising investments for long-term investors.

References:
[1] https://www.ainvest.com/news/appian-2025-q2-earnings-narrowed-net-loss-revenue-growth-2508/
[2] https://www.mitrade.com/insights/news/live-news/article-8-1040462-20250814