Appian Cloud secures FedRAMP High and IL5 authorizations

MCLEAN, Va. - Appian (NASDAQ: APPN), a $2.08 billion market cap software company with impressive gross profit margins of ~76%, announced today that its Appian Government Cloud (AGC) has achieved Federal Risk and Authorization Management Program (FedRAMP) High authorization, a standard required to handle the United States government's most sensitive unclassified data. According to InvestingPro data, the company has maintained strong revenue growth of ~13% over the last twelve months, positioning it well in the government sector. This upgrade allows AGC to securely manage data that, if compromised, could have severe consequences, including threats to life and financial stability.

In parallel, AGC has renewed its Impact Level 5 (IL5) Provisional Authority to Operate (PA) from the Defense Information Systems Agency (DISA) for a three-year term. This certification permits AGC to host Controlled Unclassified Information (CUI) for mission-critical operations, indicating a high level of trust from defense agencies in Appian's security capabilities.

FedRAMP High is a rigorous certification that cloud service providers must earn by partnering with a federal agency and successfully passing a third-party security assessment. The designation assures that AGC can securely process law enforcement, emergency services, financial, and health system data.

Michael Beckley, Founder and Chief Technology Officer of Appian, stated that the FedRAMP High and IL5 authorizations enable government customers to implement AI across their business processes securely in line with the administration's Executive Order on Federal Agency AI Use.

Appian's cloud offering, serving both federal civilian and Department of Defense organizations, aims to improve operational efficiency, reduce costs, and enhance citizen experiences within a secure environment. With IL5 authorization, Appian provides a secure computing environment, allowing DoD mission owners to concentrate on application development rather than infrastructure security.

This year also marks a decade of FedRAMP authorization for Appian Cloud, maintaining its FedRAMP Moderate status since 2015. Appian Cloud is utilized by 22 federal agencies, including the Department of Health and Human Services and the Securities and Exchange Commission, demonstrating the company's broad adoption across federal operations. While currently operating with moderate debt levels, InvestingPro analysts suggest the company could turn profitable this year, with earnings forecasts showing positive expectations. For detailed insights and additional ProTips about Appian's financial health and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro.

The recent achievements highlight Appian's long-term commitment to security and compliance in cloud services, with a 25-year history of collaboration with the US government. In 2024, Appian expanded its government portfolio by adding the US Department of Interior, solidifying its presence across all cabinet-level agencies. With the next earnings report due on May 1st, investors following Appian can access detailed financial analysis and six additional exclusive ProTips through InvestingPro's comprehensive coverage of over 1,400 US stocks.

The information is based on a press release statement from Appian.

In other recent news, Appian Corporation has been involved in several notable developments. The Supreme Court of Virginia has agreed to hear Appian's petition to reinstate a $2.036 billion verdict against Pegasystems, Inc., concerning a trade secret misappropriation case. This legal battle, which centers on allegations of Pegasystems using a "spy" to enhance its products, could potentially restore a jury's original unanimous verdict. Additionally, Appian has introduced a significant update to its platform, Appian 25.1, which enhances document processing capabilities and integrates advanced AI features to improve scalability and performance. This update is designed to manage large volumes of documents more efficiently and improve user interface experiences. In another development, Morgan Stanley has raised its price target for Appian to $35 from $32, maintaining an Equal-weight rating. This adjustment follows Appian's better-than-expected quarterly results, although analysts noted a deceleration in cloud segment growth, countered by improved profitability. Furthermore, Appian has faced scrutiny over its relationship with Raiffeisen Bank, a client criticized for its operations in Russia, raising concerns about compliance and financial transparency.

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