Low code software development platform provider Appian (Nasdaq: APPN) will be reporting earnings tomorrow before the bell. Here's what to look for.

Appian beat analysts' revenue expectations by 3.2% last quarter, reporting revenues of $145.3 million, up 15.5% year on year. It was a good quarter for the company, with a solid beat of analysts' billings estimates and a significant improvement in its gross margin.

Is Appian a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Appian's revenue to grow 10.8% year on year to $149.8 million, slowing from the 18.4% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.16 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Appian has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 3.3% on average.

Looking at Appian's peers in the productivity software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. ServiceNow delivered year-on-year revenue growth of 24.2%, meeting analysts' expectations, and Pegasystems reported revenues up 1.4%, falling short of estimates by 2.1%. ServiceNow traded down 4.1% following the results while Pegasystems's stock price was unchanged.

Read our full analysis of ServiceNow's results here and Pegasystems's results here.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 thanks to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and while some of the productivity software stocks have fared somewhat better, they have not been spared, with share prices down 4% on average over the last month. Appian's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $44.8 (compared to the current share price of $37.3).

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