Cloud Computing Firm Appian Stock Nosedives After Q1 Print, What's Going On?
Portfolio Pulse from Anusuya Lahiri
Appian Corp (NASDAQ:APPN) reported a fiscal Q1 2024 revenue increase of 11% Y/Y to $149.84 million, slightly above analyst expectations. However, its adjusted EPS loss of 24 cents was worse than the expected 16 cents loss, causing its stock to drop nearly 20%. Subscription revenue grew by 19%, but professional services revenue fell by 11%. The company's Q2 revenue outlook is below analyst consensus, as is its adjusted EPS forecast. Appian's full-year revenue guidance is also slightly below expectations, with a wider projected EPS loss than previously anticipated. APPN stock has risen over 1% in the past year, and is included in the First Trust Nasdaq Artificial Intelligence And Robotics ETF (NASDAQ:ROBT) and First Trust Cloud Computing ETF (NASDAQ:SKYY).
May 02, 2024 | 2:27 pm
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NEGATIVE IMPACT
Appian's Q1 2024 results showed revenue growth but a wider than expected EPS loss, leading to a nearly 20% stock price drop. The company's outlook for Q2 and FY24 also fell short of analyst expectations.
The significant stock price drop following the earnings report indicates a negative market reaction to the wider than expected EPS loss and disappointing future revenue and EPS guidance.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Investors in the First Trust Nasdaq Artificial Intelligence And Robotics ETF (ROBT), which includes APPN, may see indirect impact due to Appian's stock performance.
As Appian is part of the ROBT ETF, its significant stock price movement could indirectly affect the ETF's performance, though the impact may be diluted due to the diversified nature of the ETF.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
The First Trust Cloud Computing ETF (SKYY), which includes APPN, might experience indirect effects from Appian's recent stock decline.
Given Appian's inclusion in the SKYY ETF, its stock's significant drop could indirectly influence the ETF's performance, although the effect might be mitigated by the ETF's diversified holdings.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50