Company: APPN
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001441683-25-000041
Chunk: 66

Company: APPIAN CORP
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 66
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 table sets forth our contract asset and contract liability balances (in thousands):As ofMarch 31, 2025December 31, 2024March 31, 2024December 31, 2023Contract assets, current*$8,868 $12,933 $10,371 $12,052 Contract assets, non-current*331 643 1,192 915 Total contract assets$9,199 $13,576 $11,563 $12,967 Deferred revenue, current$258,582 $281,760 $220,943 $235,992 Deferred revenue, non-current3,944 5,477 5,216 4,700 Total contract liabilities$262,526 $287,237 $226,159 $240,692 * 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 $118.2 million and $94.2 million for the three months ended March 31, 2025 and 2024, respectively. Transaction Price Allocated to the Remaining Performance ObligationsAs of March 31, 2025, we had an aggregate transaction price of $519.1 million allocated to unsatisfied performance obligations. We expect to recognize $331.9 million of this balance as revenue over the next 12 months with the remaining amount recognized thereafter.

4. LeasesAs of March 31, 2025, our lease portfolio consists entirely of operating leases for corporate offices. Our operating leases have remaining lease terms with various expiration dates through 2031, and some leases include options to extend the term for up to an additional 10 years.Lease CostsExpense for operating leases is recognized on a straight-line basis over the lease term as an operating expense. We have lease agreements which require payments for lease and non-lease components (i.e., common area maintenance) that are accounted for as a single lease component. Variable lease payment amounts that cannot be determined at the commencement of the lease such as maintenance costs, utilities, and service charges, are not included in right-of-use (“ROU”) assets or lease liabilities but rather are expensed as incurred and recorded as variable lease expense. We often receive customary incentives from our landlords such as tenant improvement allowances (“TI