Company: APPN
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001441683-25-000017
Chunk: 126

Company: APPIAN CORP
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 126
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 range of the net license fee. Because an economic relationship exists between the license and maintenance and support, we have concluded the residual approach to estimating the SSP of term license subscriptions is an appropriate allocation of the transaction price.3.Maintenance and support - We establish the SSP of maintenance and support as a percentage of the stated net subscription fee based on observable pricing of maintenance and support renewals from our legacy perpetual software licenses. 4.Consulting and training services - The SSP of consulting and training services is established based on the observable pricing of standalone sales within each geographic region where the services are sold. Contract BalancesTiming may differ between the satisfaction of performance obligations and the invoicing and collection of amounts related to our contracts with customers. Contract assets primarily relate to unbilled amounts for contracts with customers for which the amount of revenue recognized exceeds the amount billed to the customer. Contract assets are transferred to accounts receivable when the right to invoice becomes unconditional. Contract liabilities consist of deferred revenue and include payments received in advance of the satisfaction of performance obligations. Deferred revenue is then recognized as the revenue recognition criteria are met. Deferred revenue that will be recognized during the succeeding 12-month period is recorded as current, and the remaining deferred revenue is recorded as non-current.The following table sets forth contract asset and contract liability balances as of December 31, 2024, 2023, and 2022 (in thousands):As of December 31,202420232022Contract assets, current*$12,933 $12,052 $12,540 Contract assets, non-current*643 915 1,720 Total contract assets$13,576 $12,967 $14,260 Deferred revenue, current$281,760 $235,992 $194,768 Deferred revenue, non-current5,477 4,700 5,556 Total contract liabilities$287,237 $240,692 $200,324 * Current and non-current contract assets are reported as components of the ‘Prepaid expenses and other current assets’ and ‘Other assets’ line items, respectively, in our consolidated balance sheets.Revenue recognized from amounts included in contract liabilities at the beginning of the period totaled $234.5 million, $196.5 million, and $147.0 million for the years ended December 31, 2024, 2023, and 2022, respectively. Transaction Price Allocated to the Remaining Performance ObligationsAs of December 31,