What happened

Shares of Appian (APPN 0.64%) were trading higher on Tuesday, jumping as much as 4.9% in early trading. As of 3:04 p.m. ET, the shares had given back some of the gains but were still up 2%.

While the broader market move provided some fuel for its move higher, the low-code software provider was selected as a leading solutions provider to the insurance industry.

So what

Everest Group, a leading global research firm, selected Appian as a Leader in its inaugural insurance technology report. The Digital Claims in Property and Casualty (P&C) Insurance report for 2023 highlighted Appian's low-code, industry-focused solutions. The report noted that Appian's Connected Claims solution

offers a robust set of applications to streamline claims management; a strong investment roadmap to leverage AI, blockchain, and IoT; low-code capabilities for quick deployment; and a powerful partner ecosystem.

Appian's recognition as a Leader in the report is based on its strong value proposition to fulfill P & C carrier needs across the claims value chain.

Now what

Appian has had a tough time over the past couple of years, with the stock currently down a whopping 83% from its peak in early 2021. The company has continued to generate solid revenue growth, but profits have remained elusive.

In the fourth quarter, Appian's revenue grew 20% year over year to $66 million, led by its cloud-subscription services, which climbed 29%. At the same time, its cloud-revenue retention rate clocked in at a respectable 115%. Unfortunately, the company's losses continued to mount, as its non-GAAP loss per share of $0.28 worsened compared to a per-share loss of $0.16 in the prior-year quarter. Perhaps more concerning was its ongoing problem of cash flow (or lack thereof), as Appian saw an outflow of nearly $13 million from operating activities.

The industry accolades notwithstanding, investors should keep an eye on Appian's financial performance and watch for positive cash flow before initiating or adding to an existing position.