"Weak" Guidance for 2020 Means Appian Stock's Wild Ride Continues -- Buy the Dips
Shares of software development company Appian (NASDAQ: APPN) sold off 22% after the company turned in its fourth quarter 2019 report card. It was a solid performance for the small technologist as it continues to convert more large customers and expand relationships with existing ones, but some shareholders may have expected higher growth rates for 2020 than what management forecast.
However, the post-earnings drop has more to do with the 135% run from the start of 2019 to the day of the earnings release than anything else. A breather for the hot stock was inevitable, but there is still plenty to like at the low-code specialist.
Appian's total fourth-quarter revenue grew 17% year over year to $70.5 million, slightly topping the guidance provided a few months prior. Of the total, the important subscription revenue segment (which includes recurring revenue from its cloud computing-based app building software suite) grew 28% to $43.1 million, also topping the figures management provided during the third quarter update.
Source Fool.com
