Appian Corporation: Initiation of Research Coverage

Monday, November 27, 2017

William Blair & Company initiated research coverage of Appian Corporation (APPN $21.50), a leading provider of a low-code software development platform-as-a-service.

Analyst Bhavan Suri estimated that Appian would generate revenue of $167.9 million in 2017 and $194.5 million in 2018.

"Our top-down analysis indicates that the markets addressed by Appian are expected to grow from $11.0 billion in 2017 to $14.7 billion in 2021," Suri said. "While this is an attractive base of expenditures for the company to target, our bottom-up analysis points to a $25.5 billion longer-term opportunity. Moreover, we believe the estimated $169 billion of annual expenditures on manually coded custom software solutions speaks to the magnitude of the long-term opportunity for low-code platforms. Accordingly, we see ample runway for Appian to sustain its growth trajectory."

Suri added, "We believe that Appian has established multiple competitive differentiators that position it to be a long-term share winner: 1) the company appears to be the only vendor that can accommodate complex workflows while also providing strong low-code capabilities; 2) its patented SAIL technology provides an unmatched level of application portability; and 3) Appian is one of the only vendors offering robust hybrid deployment capabilities."

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Current Ratings Distribution (as of 11/27/17)

Coverage Universe
Outperform (Buy): 63%
Market Perform (Hold): 35%
Underperform (Sell): 1% 

Inv. Banking Relationships*
Outperform (Buy): 20%
Market Perform (Hold): 10%
Underperform (Sell): 0%

* Percentage of companies in each rating category that are investment banking clients, defined as companies for which William Blair has received compensation for investment banking services within the past 12 months.

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