We feel now is a pretty good time to analyse Appian Corporation's (NASDAQ:APPN) business as it appears the company may be on the cusp of a considerable accomplishment. Appian Corporation, a software company that provides low-code design platform in the United States, Mexico, Portugal, and internationally. With the latest financial year loss of US$111m and a trailing-twelve-month loss of US$108m, the US$2.0b market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on Appian's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Appian is bordering on breakeven, according to the 9 American Software analysts. They expect the company to post a final loss in 2025, before turning a profit of US$722m in 2026. The company is therefore projected to breakeven around 2 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 35%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Appian's growth isn't the focus of this broad overview, though, take into account that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there's one issue worth mentioning. Appian currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

This article is not intended to be a comprehensive analysis on Appian, so if you are interested in understanding the company at a deeper level, take a look at Appian's company page on Simply Wall St. We've also compiled a list of relevant factors you should further examine:

1. Valuation: What is Appian worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Appian is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Appian's board and the CEO's background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com