Company: APPN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001441683-25-000068
Chunk: 75

Company: APPIAN CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 8
Chunk 75
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 have on our financial statement presentation and disclosures. In July 2025, the FASB issued ASU 2025-05, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient allowing entities to assume the conditions at the balance sheet date remain unchanged over the life of the asset when estimating expected credit losses for current classified accounts receivable and contract assets. The new guidance will be effective for our annual and interim period reporting beginning in fiscal year 2026 on a prospective basis. Early adoption is permitted. We are currently evaluating the impact this standard will have on our financial statement presentation and disclosures. 

11

In September 2025, the FASB issued ASU 2025-06, Targeted Improvements to the Accounting for Internal-Use Software (Subtopic 350-40), which, among other changes, replaces the stage-based capitalization model with a principles-based model clarifying capitalization is to begin when (i) management has authorized and committed to funding a software project and (ii) it is probable the project will be completed and the software will be used to perform the function intended. The new guidance will be effective for our annual and interim period reporting beginning in fiscal year 2028 and can be applied prospectively, retrospectively, or via a modified transition approach. Early adoption is permitted. We are currently evaluating the impact this standard will have on our financial statement presentation and disclosures. 

3. RevenueRevenue Recognition We generate subscriptions revenue primarily through the sale of cloud subscriptions bundled with maintenance and support and hosting services as well as term license subscriptions bundled with maintenance and support. We generate professional services revenue from fees for our consulting services, including application development and deployment assistance as well as training related to our platform.The following table summarizes revenue recorded during the three and nine months ended September 30, 2025 and 2024 (in thousands):Three Months Ended September 30,Nine Months Ended September 30,2025202420252024Cloud subscriptions$113,596 $94,075 $320,337 $269,106 Term license subscriptions24,812 21,265 69,429 62,263 Maintenance and support8,780 7,781 24,431 22,420 Total subscriptions147,188 123,121 414,197 353,789 Professional services39,816 30,931 109,873 96,548