Company: APPN
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001441683-25-000041
Chunk: 13

Company: APPIAN CORP
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 13
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 and cash flows. All intercompany accounts and transactions have been eliminated in consolidation.The results of operations for the current period are not necessarily indicative of the results for the full year or the results for any future periods. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and related footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (the “SEC”) on February 19, 2025.Use of EstimatesThe preparation of our consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and judgments that affect the amounts reported in these consolidated financial statements and accompanying notes. Although we believe the estimates we use are reasonable, due to the inherent uncertainty involved in making these estimates, actual results reported in future periods could differ from those estimates.Significant estimates embedded in the consolidated financial statements include, but are not limited to, revenue recognition, income taxes and the related valuation allowance established against deferred tax assets, the amortization period of deferred commissions, the amortization period of the cost to obtain the judgment preservation insurance policy (as discussed in Note 12), and stock-based compensation.Revenue RecognitionRefer to Note 3 for a detailed discussion on specific revenue recognition principles related to our major revenue streams.

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Concentration of Credit and Customer RiskOur financial instruments exposed to concentration of credit and customer risk consist primarily of cash, cash equivalents, accounts receivable, and our short-term investments. Deposits held with banks may exceed the amount of insurance provided on such deposits; however, we believe the financial institutions holding our cash deposits are financially sound and, accordingly, minimal credit risk exists with respect to these balances.With regard to our customers, credit evaluation and account monitoring procedures are used to minimize the risk of loss. For the three months ended March 31, 2025, revenue generated from government agencies represented 33.4% of total revenue, of which revenue from U.S. federal government agencies was 23.9% of total revenue. For the three months ended March 31, 2024, revenue generated from government agencies represented 29.5% of total revenue, of which revenue from U.S. federal government agencies was 21.7% of total revenue. Additionally, 36.2% and 37.2% of our revenue during the three months ended March 31, 2025 and 2024, respectively, was generated from international customers. No single end-customer