Shares of Appian (NASDAQ:APPN) gained 33.6% in value last month, according to data provided by S&P Global Market Intelligence, after announcing the acquisition of Noyayre Solutions SL, maker of the highest-rated Jidoka robotic process automation (RPA) software platform.
Investors loved the prospects for this addition to Appian's fast-growing business and wasted no time sending the share price higher.
The company that makes building apps feel more like playing with LEGO blocks instead of a task meant only for computer science geeks just stretched its lead a lot further with this acquisition.
As Appian CEO Matt Calkins explained, "Appian is extending our lead in low-code automation by adding RPA." He added, "Together, the products enable end-to-end process orchestration where humans, software robots, and [artificial intelligence] all work together in a coordinated way."
Appian is on a mission to simplify and save businesses a lot of money by automating much of the process of creating software. Calkins wants app development to be more like drawing a picture, while Appian's platform handles the rest.
It's a huge growth opportunity. The RPA market is estimated to reach $12 billion by 2023, according to market research firm Forrester. This is multiples of what Appian makes in a year. Management has guided for full-year revenue to be between $154 million and $154.5 million, guidance that was issued along with third-quarter earnings in October.
There is plenty of upside for this promising small-cap grower.