Company: APPN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001441683-25-000068
Chunk: 17

Company: APPIAN CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 1
Chunk 17
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% of our revenue during the three and nine months ended September 30, 2025, respectively, was generated from international customers. For the three and nine months ended September 30, 2024, revenue generated from government agencies represented 31.0% and 30.6% of total revenue, of which revenue from U.S. federal government agencies was 23.2% and 22.5% of total revenue, respectively. Additionally, 36.3% and 37.2% of our revenue during the three and nine months ended September 30, 2024, respectively, was generated from international customers. No single end-customer accounted for more than 10% of our total revenue in the three and nine months ended September 30, 2025 or 2024. As of September 30, 2025 and December 31, 2024, we had one reseller whose accounts receivable balance comprised 17.3% and 17.5% of total accounts receivable, respectively.Cash and Cash EquivalentsWe consider all highly liquid investments with original maturities of three months or less, as well as overnight repurchase agreements, to be cash equivalents. Allowance for Expected Credit LossesAccounts receivable and unbilled revenue are stated at realizable value, net of an allowance for expected credit losses. The allowance is based on our assessment of the collectability of accounts and incorporates an estimation of expected lifetime credit losses on our receivables. We regularly review the composition of the accounts receivable aging, historical bad debts, changes in payment patterns, customer creditworthiness, current economic trends, and reasonable economic forecasts that affect collectability. If the financial condition of our customers were to deteriorate, resulting in their inability to make required payments, additional provisions for expected credit losses would be required and would increase bad debt expense. The allowance for doubtful accounts totaled $2.9 million and $3.4 million as of September 30, 2025 and December 31, 2024, respectively.Deferred Commissions We capitalize costs of obtaining a contract with a customer, which consist of sales commissions paid to our sales team and the associated incremental payroll taxes. These costs are recorded as deferred commissions in the consolidated balance sheets. Costs to obtain a subscriptions contract for a new customer or upsell an existing customer’s subscriptions are amortized over an estimated economic life of five years as sales commissions on initial sales are not commensurate with sales commissions on contract