Appian APPN is expanding its footprint into Japan with the recently announced collaboration with Outsourcing Technology of Japan (OSTech).
The partnership aims to achieve efficiency improvements in its business through process automation and low-code development on the Appian Platform.
OSTech expects to reduce the workload by approximately 25% through the Appian platform as it helps eliminate data silos and enables end-to-end visualization, integration, and automation of business processes across systems.
The collaboration helps Protrude, OSTech's dedicated IT integration services, offer enhanced process and digital transformation on the Appian Platform, focusing on BPMS and process automation.
APPN Stock Suffers From Sluggish Cloud Growth
Appian's shares declined 17.6% year to date, underperforming the Zacks Internet Software industry's return of 13.5% and the Zacks Computer and Technology sector's 20.8%.
Appian Corporation Price and Consensus
Appian Corporation price-consensus-chart | Appian Corporation Quote
APPN shares have suffered from sluggish growth expectations for cloud revenue and total revenues. It expects cloud subscription revenues between $358 million and $360 million, suggesting year-over-year growth of 18%. Total revenues are now expected between $610 million and $615 million, indicating year-over-year growth in the 12%-13% range.
The Zacks Consensus Estimate for 2024 total revenues is pegged at $613.54 million, indicating 12.5% growth over 2023.
However, Appian now expects adjusted EBITDA to improve $20 million from its previous guidance. It now expects adjusted EBITDA between negative $3 million and $3 million.
Appian's expanding clientele is expected to boost top-line and bottom-line growth. It has been strengthening its government footprint with its Government Acquisition Management suite. In the first half of 2024, GAM bookings more than doubled.
The addition of ProcureSight, an AI-driven website that consolidates major public procurement datasets, is expected to help GAM maintain its momentum.
The latest collaboration with OSTech enhances Appian's international footprint. International operations contributed 38% of total revenues in the second quarter of 2024.
Zacks Rank & Stocks to Consider
Appian currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are AudioEye AEYE, VTEX VTEX, and Synchronoss SNCR. Each of the three stocks sports a Zacks Rank #1 (Strong Buy) at present.
AudioEye shares have gained 312% in the year-to-date period.
VTEX shares have gained 7.1% year to date.
Synchronoss shares have gained 89.9% in the year-to-date period.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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