0001441683-21-000041 | 10-Q | XBRL Viewer

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Significant Accounting Policies (Policies)	3 Months Ended
Significant Accounting Policies (Policies)	Mar. 31, 2021
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements and footnotes have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) as contained in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) for interim financial information. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of the results of operations, financial position, changes in stockholders’ equity, and cash flows. 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 condensed 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, 2020, filed with the Securities and Exchange Commission (the “SEC”) on February 18, 2021.
Use of Estimates	Use of Estimates The preparation of our condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and judgments that affect the amounts reported in these condensed 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 condensed consolidated financial statements include revenue recognition, income taxes and the related valuation allowance, the valuation of goodwill and intangible assets, leases, costs to obtain a contract with a customer, the valuation of financial instruments, and stock-based compensation. The ongoing outbreak of the novel coronavirus disease ("COVID-19") has resulted in the declaration of a global pandemic and introduced a level of disruption and uncertainty into the financial markets and global economy. While we continue to monitor the developments surrounding the pandemic, as of the date of issuance of these financial statements, we are not aware of any specific events or circumstances that would require us to update our estimates, assumptions, and judgments or revise the carrying value of our assets or liabilities. We cannot estimate the impacts COVID-19 will have on our business going forward as such impacts will be largely dependent upon a number of factors outside of our control including the extent and duration of the outbreak as well as any mitigating actions which may be undertaken by global governments and the general public.
Principles of Consolidation	Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of Appian and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Revenue Recognition	Cost of Revenue Subscriptions Cost of subscriptions revenue consists primarily of fees paid to our third-party managed hosting providers and other third-party service providers, personnel costs such as payroll and benefits for our technology operations and customer support teams, and allocated facility costs and overhead. Professional Services Cost of professional services revenue includes all direct and indirect costs to deliver our professional services and training, including employee compensation for our global professional services and training personnel, third-party contractor costs, allocated facility costs and overhead, and the costs of billable expenses such as travel and lodging. The unpredictability of the timing of entering into significant professional services agreements sold on a standalone basis may cause significant fluctuations in our quarterly financial results and allocated facility costs and overhead. Revenue Recognition We generate subscriptions revenue primarily through the sale of software as a service ("SaaS") 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. Performance Obligations and Timing of Revenue Recognition We primarily sell products and services that fall into the categories discussed below. Each category contains one or more performance obligations that are either (1) capable of being distinct (i.e., the customer can benefit from the product or service on its own or together with readily available resources, including those purchased separately from us) and distinct within the context of the contract (i.e., separately identified from other promises in the contract) or (2) a series of distinct products or services that are substantially the same and have the same pattern of transfer to the customer. Our term license subscriptions are delivered at a point in time while our SaaS subscriptions, maintenance and support, and professional services are delivered over time. Subscriptions Revenue Subscriptions revenue is primarily related to (1) SaaS subscriptions bundled with maintenance and support and hosting services and (2) term license subscriptions bundled with maintenance and support. We generally charge subscription fees on a per-user basis and, to a lesser degree, non-user based single application licenses. We bill customers and collect payment for subscriptions to our platform in advance on an annual, quarterly, or monthly basis. In certain instances, our customers have paid their entire contract up front. SaaS Subscriptions We generate cloud-based subscriptions revenue primarily from the sales of subscriptions to access our cloud offering, together with related support services to our customers. We perform all required maintenance and support for our cloud offering. Revenue is recognized on a ratable basis over the contract term beginning on the date the service is made available to the customer. Our cloud-based subscription contracts generally have a term of one to three years in length. We bill customers and collect payment for subscriptions to our platform in advance, and they are non-cancellable. Term License Subscriptions Our term license subscriptions revenue is derived from customers with on-premises installations of our platform pursuant to contracts that were historically one to three years in length. The majority of recent contracts have been one year in length. Although term license subscriptions are sold with maintenance and support, the software is fully functional at the beginning of the subscription and is considered a distinct performance obligation. On rare occasions, a cloud-based subscription may include the right for the customer to take possession of the license and as such, the revenue is treated as a license. Revenue from term license subscriptions is recognized when control of the software license has transferred to the customer, which is the later of delivery or commencement of the contract term. Maintenance and Support Maintenance and support subscriptions include both technical support and when-and-if-available software upgrades, which are treated as a single performance obligation as they are considered a series of distinct services that are substantially the same and have the same duration and measure of progress. Revenue from maintenance and support is recognized ratably over the contract period, which is the period over which the customer has continuous access to maintenance and support. Professional Services Revenue Our professional services revenue is comprised of fees for consulting services, including application development and deployment assistance as well as training services related to our platform. Our professional services are considered distinct performance obligations when sold standalone or with other products. Consulting Services We sell consulting services to assist customers in planning and executing the deployment of our software. Customers are not required to use consulting services to fully benefit from the software. Consulting services are regularly sold on a standalone basis and either (1) under a fixed-fee arrangement or (2) on a time and materials basis. Consulting contracts are each considered separate performance obligations because they do not integrate with each other or with other products and services to deliver a combined output to the customer, do not modify or customize (or are not modified or customized by) each other or other products and services, and do not affect the customer's ability to use the other consulting offerings or other products and services. Revenue under consulting contracts is recognized over time as services are delivered. For time and materials-based consulting contracts, we have elected the practical expedient of recognizing revenue upon invoicing since the invoiced amount corresponds directly to the value of our service to date. Training Services We sell various training services to our customers. Training services are sold in the form of prepaid training credits that are redeemed based on a fixed rate per course. Training revenue is recognized when the associated training services are delivered. Significant Judgments and Estimates Determining the Transaction Price The transaction price includes both fixed and variable consideration. Variable consideration is included in the transaction price to the extent it is probable a significant reversal will not occur. The amount of variable consideration excluded from the transaction price for the three months ended March 31, 2021 and 2020 was insignificant. Our estimates of variable consideration are also subject to subsequent true-up adjustments and may result in changes to transaction prices; however, such true-up adjustments are not expected to be material. Allocating the Transaction Price Based on Standalone Selling Prices ("SSP") We allocate the transaction price to each performance obligation in a contract based on its relative SSP. The SSP is the observable price at which we sell the product or service separately. In the absence of observable pricing, we estimate SSP using the residual approach. We establish SSP as follows: 1.SaaS subscriptions - Given the highly variable selling price of our SaaS subscriptions, we establish the SSP of our SaaS subscriptions using a residual approach after first determining the SSP of consulting and training services. We have concluded the residual approach to estimating SSP of our SaaS subscriptions is an appropriate allocation of the transaction price. 2.Term license subscriptions - Given the highly variable selling price of our term license subscriptions, we have established SSP of term license subscriptions using a residual approach after first determining the SSP of maintenance and support. Maintenance and support is sold on a standalone basis in conjunction with renewals of our legacy perpetual software licenses and within a narrow 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 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 services and training services - The SSP of consulting services and training services is established based on the observable pricing of standalone sales within each geographic region where the services are sold. Contract Balances Timing 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.
Concentration of Credit and Customer Risk	Concentration of Credit and Customer Risk Our financial instruments exposed to concentration of credit and customer risk consist primarily of cash and cash equivalents, trade accounts receivable, and our short- and long-term investments. Deposits held with banks may exceed the amount of insurance provided on such deposits. 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. We believe no additional credit risk beyond amounts provided for collection loss are inherent in accounts receivable.
Cash and Cash Equivalents	Cash and Cash Equivalents We consider all highly liquid investments with an original or remaining maturity of three months or less at the date of purchase, as well as overnight repurchase agreements, to be cash equivalents.
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful AccountsAccounts receivable are stated at realizable value, net of an allowance for doubtful accounts. The allowance for doubtful accounts 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, and current economic trends. If the financial condition of our customers were to deteriorate, resulting in their inability to make required payments, additional provisions for doubtful accounts would be required and would increase bad debt expense.
Assets Recognized from the Costs to Obtain a Contract with a Customer	Assets Recognized from the Costs to Obtain a Contract with a Customer We capitalize the incremental costs of obtaining a contract with a customer, including sales commissions paid to our direct sales force, that are incremental costs to obtaining customer contracts. These costs are recorded as deferred commissions in the condensed consolidated balance sheets. Costs to obtain a contract for a new customer or upsell are amortized over an estimated economic life of five years as sales commissions on initial sales are not commensurate with sales commissions on contract renewals. We determine the estimated economic life based on both qualitative and quantitative factors such as expected renewals, product life cycles, contractual terms, and customer attrition. We periodically review the carrying amount of deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the estimated economic life. Commissions paid relating to contract renewals are deferred and amortized over the related renewal period. We also capitalize the incremental fringe benefits associated with commission expenses paid to our direct sales force. Costs to obtain a contract for professional services arrangements are expensed as incurred as the contractual period of our professional services arrangements are one year or less. Amortization associated with commission expense is recorded to sales and marketing costs in our condensed consolidated statements of operations.
Property and Equipment	Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Significant additions or improvements extending the useful life of an asset are capitalized, while repairs and maintenance costs which do not significantly improve the related assets or extend their useful lives are charged to expense as incurred.
Impairment of Long-Lived Assets	Impairment of Long-Lived AssetsLong-lived assets and certain intangible assets are reviewed for impairment whenever events or circumstances indicate the carrying amount of an asset may not be recoverable through undiscounted cash flows from the use of the assets. If such assets are considered to be impaired, the assets are written down to their estimated fair value.
Stock-Based Compensation	Stock-Based Compensation We account for stock-based compensation expense related to stock-based awards based on the estimated fair value of the award on the grant date. We calculate the fair value of stock options containing only a service condition using the Black-Scholes option pricing model. The fair value of restricted stock units ("RSUs") is based on the closing market price of our common stock on the Nasdaq Global Market on the date of grant. For service-based awards such as RSUs, stock-based compensation expense is recognized on a straight-line basis over the requisite service period. For performance-based awards, stock-based compensation expense is recognized using the accelerated attribution method based on the probability of satisfying the performance condition. For awards that contain market conditions, compensation expense is measured using a Monte Carlo simulation and recognized using the accelerated attribution method over the derived service period based on the expected market performance as of the grant date. We account for forfeitures as they occur rather than estimating expected forfeitures.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Adopted In December 2019, the FASB issued Accounting Standards Update ("ASU") 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which amends and aims to simplify accounting disclosure requirements regarding a number of topics including, but not limited to, intraperiod tax allocations, accounting for deferred taxes when there are changes in the consolidation of certain investments, tax basis step ups in an acquisition, and the application of effective rate changes during interim periods. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The adoption of the new guidance did not have a material impact on our consolidated financial statements. Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848), which provides temporary optional expedients and exceptions to the GAAP guidance on contract modifications to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates such as the Secured Overnight Financing Rate ("SOFR"). This guidance is effective upon issuance and generally can be applied through the end of calendar year 2022. We are currently evaluating the impact and applicability of this new standard.
Leases	At the inception of an arrangement, we determine whether the arrangement is or contains a lease based on the unique facts and circumstances present and the classification of the lease. Operating leases with a term greater than one year are recognized on the balance sheet as right-of-use ("ROU") assets, lease liabilities, and, if applicable, long-term lease liabilities. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. We have elected not to recognize on the balance sheet leases with a term of one year or less. For contracts with lease and non-lease components, we have elected not to allocate the contract consideration and to account for the lease and non-lease components as a single lease component. Lease liabilities and their corresponding ROU assets are recorded based on the present value of lease payments over the expected lease term. The implicit rates within most of our leases are generally not determinable; therefore, we use the incremental borrowing rate at the lease commencement date to determine the present value of lease payments. The determination of our incremental borrowing rate requires judgment and is estimated for each lease based on the rate we would have to pay for a collateralized loan with the same term and payments as the lease. We consider various factors, including our level of collateralization, estimated credit rating, and the currency in which the lease is denominated. Operating lease ROU assets also include any lease prepayments, offset by lease incentives. Certain of our leases include options to extend or terminate the lease. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain we will exercise that option while an option to terminate is considered unless it is reasonably certain we will not exercise the option. For certain equipment leases, we apply a portfolio approach to effectively account for the operating lease ROU assets and liabilities. Expense for operating leases is recognized on a straight-line basis over the lease term as an operating expense while the expense for finance leases is recognized as depreciation expense and interest 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 based on future obligations, are not included in ROU assets or lease liabilities but rather are expensed as incurred and recorded as variable lease expense.
Fair Value Measurements	Fair Value Measurements We use a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires us to use observable inputs when available and to minimize the use of unobservable inputs when determining fair value. The three tiers are defined as follows: •Level 1. Observable inputs based on unadjusted quoted prices in active markets for identical assets or liabilities; •Level 2. Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and •Level 3. Unobservable inputs for which there is little or no market data, which require us to develop our own assumptions. The asset or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques maximize the use of relevant observable inputs and minimize the use of unobservable inputs. There were no instruments measured at fair value on a recurring basis using significant unobservable inputs as of March 31, 2021 and December 31, 2020. The valuation techniques that may be used to measure fair value are as follows: •Market approach - Uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities; •Income approach - Uses valuation techniques to convert future amounts to a single present amount based on current market expectations about those future amounts; •Cost approach - Based on the amount that currently would be required to replace the service capacity of an asset (i.e., replacement cost).
Investments	InvestmentsOur investment portfolio consists largely of debt investments classified as available-for-sale. Changes in the fair value of available-for-sale securities, excluding other-than-temporary impairments, are recorded in other comprehensive income (loss).

Accrued Expenses (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Payables and Accruals [Abstract]
Accrued hosting costs	$ 2,040	$ 1,229
Accrued legal costs	888	760
Accrued contract labor costs	774	908
Accrued audit and tax expenses	549	370
Accrued marketing and tradeshow expenses	286	596
Accrued third party license fees	257	570
Accrued reimbursable employee expenses	138	231
Other accrued expenses	845	1,157
Total	$ 5,777	$ 5,821

Acquisitions - Additional Information (Details) - Robotic Process Automation Platform $ in Millions	1 Months Ended
	Jan. 31, 2020 USD ($)
Business Combination Segment Allocation [Line Items]
Percentage of interests acquired	100.00%
Acquisition price	$ 6.9

Segment and Geographic Information

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Segment and Geographic Information

14. Segment and Geographic Information

The following table summarizes revenue by geography for the three months ended March 31, 2021 and 2020 (in thousands):


	Three Months Ended March 31,
	2021		2020
Domestic	$	60,282	$	52,455
International	28,573		26,409
Total	$	88,855	$	78,864

With respect to geographic information, revenue is attributed to respective geographies based on the contracting address of the customer. There were no individual foreign countries from which more than 10% of our total revenue was attributable for the three months ended March 31, 2021. Revenue from customers attributed to the United Kingdom was 12.5% of our total revenue for the three months ended March 31, 2020. There were no other individual foreign countries from which more than 10% of our total revenue was attributable for the three months ended March 31, 2020. Substantially all of our long-lived assets were held in the United States as of March 31, 2021 and December 31, 2020.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

Stock-Based Compensation - Schedule of Stock-based Compensation Expense Included in Condensed Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 7,894	$ 3,476
Subscriptions
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	297	213
Professional services
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	641	212
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	1,108	753
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	1,015	553
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 4,833	$ 1,745

Revenue - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Contract assets balances	$ 17.4	$ 20.1
Revenue recognized	48.5
Unsatisfied performance obligations	202.5
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unsatisfied performance obligations	$ 184.3
Revenue, remaining performance obligation, period	24 months
Minimum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
SaaS subscriptions contracts term	1 year
Term license subscription contracts term	1 year
Maximum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
SaaS subscriptions contracts term	3 years
Term license subscription contracts term	3 years

Stock-Based Compensation

3 Months Ended

Mar. 31, 2021

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

10. Stock-Based Compensation

Equity Incentive Plans

In May 2017, our Board of Directors adopted, and our stockholders approved, the 2017 Equity Incentive Plan (the “2017 Plan”), which became effective as of the date of the final prospectus for our initial public offering. The 2017 Plan provides for the grant of incentive stock options to employees and for the grant of nonstatutory stock options, restricted stock awards, RSUs, stock appreciation rights, performance-based stock awards, and other forms of equity compensation to employees, including officers, non-employee directors, and consultants. We initially reserved 6,421,442 shares of Class A common stock for issuance under the 2017 Plan, which included 421,442 shares that remained available for issuance under our 2007 Stock Option Plan (the “2007 Plan”) at the time the 2017 Plan became effective. The number of shares reserved under the 2017 Plan increases for any shares subject to outstanding awards originally granted under the 2007 Plan that expire or are forfeited prior to exercise. As a result of the adoption of the 2017 Plan, no further grants may be made under the 2007 Plan. As of March 31, 2021, there were 7,166,609 shares of Class A common stock reserved for issuance under the 2017 Plan, of which 4,259,664 were available to be issued.

Stock Options

We estimate the fair value of stock options containing only a service condition using the Black-Scholes option pricing model, which requires the use of subjective assumptions, including the expected term of the option, the current price of the underlying stock, the expected stock price volatility, expected dividend yield, and the risk-free interest rate for the expected term of the option. The expected term represents the period of time the stock options are expected to be outstanding. Due to the lack of sufficient historical exercise data to provide a reasonable basis upon which to otherwise estimate the expected term of the stock options, we use the simplified method to estimate the expected term for our stock options. Under the simplified method, the expected term of an option is presumed to be the mid-point between the vesting date and the end of the contractual term. Expected volatility is based on historical volatilities for publicly traded stock of comparable companies over the estimated expected term of the stock options. We assume no dividend yield because dividends are not expected to be paid in the near future, which is consistent with our history of not paying dividends.

In May 2019, our Board of Directors granted a stock option to purchase 700,000 shares of our Class A common stock to our Chief Executive Officer (the "2019 CEO Grant") under the 2017 Plan with an exercise price of $33.98 per share. The 2019 CEO Grant is eligible to vest based on the achievement of a stock price appreciation target of our Class A common stock. Specifically, the 2019 CEO Grant vests when shares of our Class A common stock close at or above $84.63 per share for a period equal to or greater than 90 consecutive calendar days or upon the occurrence of a change in control in which the value of our Class A common stock is equal to or greater than $84.63 per share within five years of the grant date. The fair value of the 2019 CEO Grant was determined using a Monte Carlo simulation. The fair value of the award at the grant date was $9.5 million and is amortized over the derived service period of 2.6 years. Effective February 2021, the 2019 CEO Grant has satisfied all of the conditions required to be considered fully vested. As a result, we accelerated the recognition of approximately $3.3 million in stock-based compensation expense in the three months ended March 31, 2021.

The following table summarizes stock option activity for the three months ended March 31, 2021:


	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in thousands)
Outstanding at January 1, 2021	3,399,240	$	14.06	4.9	$	503,174
Granted	—	—			—
Exercised	(88,269)	6.98			14,330
Expired	—	—			—
Canceled	(1,200)	11.02			—
Outstanding at March 31, 2021	3,309,771	$	14.25	4.7	$	392,855

Exercisable at March 31, 2021	2,882,511	$	14.68	4.5	$	340,919

There were no stock options granted during the three months ended March 31, 2021 and 2020. The total fair value of stock options that vested during the three months ended March 31, 2021 and 2020 was $9.7 million and $0.3 million, respectively. As of March 31, 2021, the total compensation cost related to unvested stock options not yet recognized was $0.2 million, which will be recognized over a weighted average period of 1.0 year.

Restricted Stock Units

The following table summarizes RSU activity for the three months ended March 31, 2021:


	Number of Shares	Weighted Average Grant Date Fair Value
Non-vested and outstanding at January 1, 2021	1,165,003	$	46.04
Granted	34,535	211.06
Vested	(56,326)	44.07
Canceled	(17,581)	49.01
Non-vested and outstanding at March 31, 2021	1,125,631	51.15

As of March 31, 2021, total unrecognized compensation cost related to unvested RSUs was approximately $50.4 million, which will be recognized over a weighted average period of 2.2 years.

The following table summarizes the components of our stock-based compensation expense by instrument type for the three months ended March 31, 2021 and 2020 (in thousands):


	Three Months Ended March 31,
	2021		2020
RSUs	$	4,005	$	2,299
Stock options	3,733		1,084
Common stock awards to Board of Directors	156		93
Total stock-based compensation expense	$	7,894	$	3,476

Stock-based compensation expense for RSUs, stock options, and issuances of common stock to the Board of Directors is included in the following line items in the accompanying condensed consolidated statements of operations for the three months ended March 31, 2021 and 2020 (in thousands):


	Three Months Ended March 31,
	2021		2020
Cost of revenue
Subscriptions	$	297	$	213
Professional services	641		212
Operating expenses
Sales and marketing	1,108		753
Research and development	1,015		553
General and administrative	4,833		1,745
Total stock-based compensation expense	$	7,894	$	3,476

Significant Accounting Policies - Property and Equipment, Useful Life (Details)	3 Months Ended
	Mar. 31, 2021
Computer software
Summary Of Significant Accounting Policies [Line Items]
Property, plant and equipment, useful life	3 years
Computer hardware
Summary Of Significant Accounting Policies [Line Items]
Property, plant and equipment, useful life	3 years
Equipment
Summary Of Significant Accounting Policies [Line Items]
Property, plant and equipment, useful life	5 years
Office furniture and fixtures
Summary Of Significant Accounting Policies [Line Items]
Property, plant and equipment, useful life	10 years

Accrued Expenses

3 Months Ended

Mar. 31, 2021

Payables and Accruals [Abstract]

Accrued Expenses

7. Accrued Expenses

Accrued expenses consisted of the following as of March 31, 2021 and December 31, 2020 (in thousands):


	March 31, 2021		December 31, 2020
Accrued hosting costs	$	2,040	$	1,229
Accrued legal costs	888		760
Accrued contract labor costs	774		908
Accrued audit and tax expenses	549		370
Accrued marketing and tradeshow expenses	286		596
Accrued third party license fees	257		570
Accrued reimbursable employee expenses	138		231
Other accrued expenses	845		1,157
Total	$	5,777	$	5,821

Accrued Expenses (Tables)

3 Months Ended

Mar. 31, 2021

Payables and Accruals [Abstract]

Schedule of Accrued Expenses

Accrued expenses consisted of the following as of March 31, 2021 and December 31, 2020 (in thousands):


	March 31, 2021		December 31, 2020
Accrued hosting costs	$	2,040	$	1,229
Accrued legal costs	888		760
Accrued contract labor costs	774		908
Accrued audit and tax expenses	549		370
Accrued marketing and tradeshow expenses	286		596
Accrued third party license fees	257		570
Accrued reimbursable employee expenses	138		231
Other accrued expenses	845		1,157
Total	$	5,777	$	5,821

Property and Equipment, net - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense	$ 1,200,000	$ 1,400,000
Disposal of property plant and equipment	$ 0
Leasehold improvements
Property, Plant and Equipment [Line Items]
Disposal of property plant and equipment		1,300,000
Computer hardware
Property, Plant and Equipment [Line Items]
Disposal of property plant and equipment		100,000
Office furniture and fixtures and equipment
Property, Plant and Equipment [Line Items]
Disposal of property plant and equipment		$ 100,000

Leases

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Leases

4. Leases

At the inception of an arrangement, we determine whether the arrangement is or contains a lease based on the unique facts and circumstances present and the classification of the lease. Operating leases with a term greater than one year are recognized on the balance sheet as right-of-use ("ROU") assets, lease liabilities, and, if applicable, long-term lease liabilities. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. We have elected not to recognize on the balance sheet leases with a term of one year or less. For contracts with lease and non-lease components, we have elected not to allocate the contract consideration and to account for the lease and non-lease components as a single lease component.

Lease liabilities and their corresponding ROU assets are recorded based on the present value of lease payments over the expected lease term. The implicit rates within most of our leases are generally not determinable; therefore, we use the incremental borrowing rate at the lease commencement date to determine the present value of lease payments. The determination of our incremental borrowing rate requires judgment and is estimated for each lease based on the rate we would have to pay for a collateralized loan with the same term and payments as the lease. We consider various factors, including our level of collateralization, estimated credit rating, and the currency in which the lease is denominated. Operating lease ROU assets also include any lease prepayments, offset by lease incentives. Certain of our leases include options to extend or terminate the lease. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain we will exercise that option while an option to terminate is considered unless it is reasonably certain we will not exercise the option. For certain equipment leases, we apply a portfolio approach to effectively account for the operating lease ROU assets and liabilities.

Expense for operating leases is recognized on a straight-line basis over the lease term as an operating expense while the expense for finance leases is recognized as depreciation expense and interest 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 based on future obligations, are not included in ROU assets or lease liabilities but rather are expensed as incurred and recorded as variable lease expense.

As of March 31, 2021, we have operating leases for corporate offices. Our operating leases have remaining lease terms of 1 year to 11 years, some of which include options to extend the leases for up to 10 years.

In April 2018, we entered into a lease agreement with respect to 176,222 square feet of office space in McLean, Virginia for a new corporate headquarters. The initial term of the lease was 150 months. We took initial possession of the first phase of the new headquarters in October 2018 and began to recognize rent expense as of that date. In February 2019, we took possession of an additional 28,805 square feet of adjacent office space.

In January 2020, we entered into an amendment which adjusts the original terms of the headquarters lease. Under this amendment, we exercised an option to expand occupancy, adding 34,158 square feet of office space. Occupancy of the added space commenced on October 14, 2020. Pursuant to the guidance of ASC 842, Leases, the amendment is considered a modification to the original lease and is accounted for as a separate contract because it represents a new ROU asset and the lease costs on the new space are charged at prevailing market rates. Effective July 1, 2020, we took possession of the space, began to recognize rent expense, and recorded a $7.9 million ROU asset and lease liability on our condensed consolidated balance sheets.

In October 2020, we paid the full $2.7 million principal balances outstanding under our finance leases pursuant to an option permitting us to pay such balances in full at any time. As of the date of the paydown, the titles to the assets were transferred to us, the associated lease liabilities were retired, the carrying values of the purchased assets were adjusted, and the assets were reclassified from finance leases to property and equipment, net on the condensed consolidated balance sheets.

The following table sets forth the components of lease expense for the three months ended March 31, 2021 and 2020 (in thousands):


	Three Months Ended March 31,
	2021		2020
Operating lease cost	$	1,630	$	1,868
Finance lease costs:
Amortization of right-of-use assets	—		373
Interest on lease liabilities	—		51
Short-term lease cost	41		185
Variable lease cost	25		183
Total	$	1,696	$	2,660

Supplemental balance sheet information related to operating leases as of March 31, 2021 and December 31, 2020 was as follows (in thousands, except for lease term and discount rate):


	As of
	March 31, 2021			December 31, 2020
Operating right-of-use assets	$	30,610		$	30,659

Operating lease liabilities, current	$	7,664		$	6,923
Operating lease liabilities, net of current portion	50,572			51,194
Total operating lease liabilities	$	58,236		$	58,117

Weighted average remaining lease term (in years)	10.3			10.6

Weighted average discount rate	9.6		%	9.6		%

For the three months ended March 31, 2021 and 2020, amortization of operating ROU assets totaled $0.3 million and $0.7 million, respectively. For both the three months ended March 31, 2021 and 2020, interest expense on operating lease liabilities totaled $0.4 million.

Supplemental cash flow information related to leases for the three months ended March 31, 2021 and 2020 was as follows (in thousands):


	Three Months Ended March 31,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows for operating leases	$	1,749	$	772
Operating cash outflows for finance leases	—		51
Financing cash outflows for finance leases	—		357

A summary of our future minimum lease commitments under non-cancellable leases as of March 31, 2021 is as follows (in thousands):


	Operating Leases
2021 (excluding the three months ended March 31, 2021)	$	5,919
2022	8,177
2023	8,173
2024	8,571
2025	9,267
2026	9,338
Thereafter	48,049
Total lease payments	97,494
Less: imputed interest	(39,258)
Total	$	58,236

Basic and Diluted Loss per Common Share (Tables)

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Summary of Securities Excluded From Calculation of Weighted Average Common Shares

The following outstanding securities, prior to the use of the treasury stock method or the if-converted method, have been excluded from the computation of diluted weighted-average shares outstanding for the respective periods below because they would have been antidilutive:


	Three Months Ended March 31,
	2021	2020
Stock options	3,309,771	4,308,009
Non-vested restricted stock units	1,125,631	1,069,168

Significant Accounting Policies - Additional Information (Detail) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended
	Jun. 30, 2020 USD ($) $ / shares shares	Mar. 31, 2021 USD ($) agency	Mar. 31, 2020 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Number of government agencies \| agency		3
Increase (decrease) in allowance for doubtful accounts \| $		$ 0.0
Capitalized contract cost, amortization period		5 years
Commission expense \| $		$ 6.8	$ 5.3
Customer Concentration Risk \| Sales Revenue, Net \| Foreign Customers
Summary Of Significant Accounting Policies [Line Items]
Concentration risk percentage		32.20%	33.50%
Customer Concentration Risk \| Sales Revenue, Net \| Government Agencies
Summary Of Significant Accounting Policies [Line Items]
Concentration risk percentage		20.90%	14.90%
Customer Concentration Risk \| Sales Revenue, Net \| Federal Government Agencies
Summary Of Significant Accounting Policies [Line Items]
Concentration risk percentage		6.90%	6.00%
Class A Common Stock \| Underwritten Public Offering
Summary Of Significant Accounting Policies [Line Items]
Number of shares issued in public offering (in shares) \| shares	2,500,000
Number of shares issued by the company in public offering (in shares) \| shares	1,931,206
Number of shares issued by shareholders in public offering (in shares) \| shares	568,794
Sale of stock, offering price (in usd per share) \| $ / shares	$ 56.50
Net proceeds from public offering \| $	$ 107.9

Acquisitions (Tables)

3 Months Ended

Mar. 31, 2021

Business Combinations [Abstract]

Schedule of Business Acquisitions

The allocation of the purchase price was based upon the estimated fair values of the assets acquired and liabilities assumed. As of the acquisition date, the purchase price was assigned to the acquired assets and assumed liabilities as follows (in thousands):


Cash acquired	$	731
Other current assets	213
Property and equipment	22
Developed technology	1,537
Customer relationships	406
Goodwill	4,348
Other noncurrent assets	10
Total assets acquired	7,267
Current liabilities	14
Noncurrent liabilities	344
Total liabilities assumed	358
Net assets acquired	$	6,909

Revenue

3 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue

3. Revenue

Revenue Recognition

We generate subscriptions revenue primarily through the sale of software as a service ("SaaS") 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 from contracts with customers for the three months ended March 31, 2021 and 2020 (in thousands):


	Three Months Ended March 31,
	2021		2020
SaaS subscriptions	$	39,053	$	28,390
Term license subscriptions	19,853		17,793
Maintenance and support	4,860		4,253
Professional services	25,089		28,428
Total revenue	$	88,855	$	78,864

Performance Obligations and Timing of Revenue Recognition

We primarily sell products and services that fall into the categories discussed below. Each category contains one or more performance obligations that are either (1) capable of being distinct (i.e., the customer can benefit from the product or service on its own or together with readily available resources, including those purchased separately from us) and distinct within the

context of the contract (i.e., separately identified from other promises in the contract) or (2) a series of distinct products or services that are substantially the same and have the same pattern of transfer to the customer. Our term license subscriptions are delivered at a point in time while our SaaS subscriptions, maintenance and support, and professional services are delivered over time.

Subscriptions Revenue

Subscriptions revenue is primarily related to (1) SaaS subscriptions bundled with maintenance and support and hosting services and (2) term license subscriptions bundled with maintenance and support. We generally charge subscription fees on a per-user basis and, to a lesser degree, non-user based single application licenses. We bill customers and collect payment for subscriptions to our platform in advance on an annual, quarterly, or monthly basis. In certain instances, our customers have paid their entire contract up front.

SaaS Subscriptions

We generate cloud-based subscriptions revenue primarily from the sales of subscriptions to access our cloud offering, together with related support services to our customers. We perform all required maintenance and support for our cloud offering. Revenue is recognized on a ratable basis over the contract term beginning on the date the service is made available to the customer. Our cloud-based subscription contracts generally have a term of one to three years in length. We bill customers and collect payment for subscriptions to our platform in advance, and they are non-cancellable.

Term License Subscriptions

Our term license subscriptions revenue is derived from customers with on-premises installations of our platform pursuant to contracts that were historically one to three years in length. The majority of recent contracts have been one year in length. Although term license subscriptions are sold with maintenance and support, the software is fully functional at the beginning of the subscription and is considered a distinct performance obligation. On rare occasions, a cloud-based subscription may include the right for the customer to take possession of the license and as such, the revenue is treated as a license. Revenue from term license subscriptions is recognized when control of the software license has transferred to the customer, which is the later of delivery or commencement of the contract term.

Maintenance and Support

Maintenance and support subscriptions include both technical support and when-and-if-available software upgrades, which are treated as a single performance obligation as they are considered a series of distinct services that are substantially the same and have the same duration and measure of progress. Revenue from maintenance and support is recognized ratably over the contract period, which is the period over which the customer has continuous access to maintenance and support.

Professional Services Revenue

Our professional services revenue is comprised of fees for consulting services, including application development and deployment assistance as well as training services related to our platform. Our professional services are considered distinct performance obligations when sold standalone or with other products.

Consulting Services

We sell consulting services to assist customers in planning and executing the deployment of our software. Customers are not required to use consulting services to fully benefit from the software. Consulting services are regularly sold on a standalone basis and either (1) under a fixed-fee arrangement or (2) on a time and materials basis. Consulting contracts are each considered separate performance obligations because they do not integrate with each other or with other products and services to deliver a combined output to the customer, do not modify or customize (or are not modified or customized by) each other or other products and services, and do not affect the customer's ability to use the other consulting offerings or other products and services. Revenue under consulting contracts is recognized over time as services are delivered. For time and materials-based

consulting contracts, we have elected the practical expedient of recognizing revenue upon invoicing since the invoiced amount corresponds directly to the value of our service to date.

Training Services

We sell various training services to our customers. Training services are sold in the form of prepaid training credits that are redeemed based on a fixed rate per course. Training revenue is recognized when the associated training services are delivered.

Significant Judgments and Estimates

Determining the Transaction Price

The transaction price includes both fixed and variable consideration. Variable consideration is included in the transaction price to the extent it is probable a significant reversal will not occur. The amount of variable consideration excluded from the transaction price for the three months ended March 31, 2021 and 2020 was insignificant. Our estimates of variable consideration are also subject to subsequent true-up adjustments and may result in changes to transaction prices; however, such true-up adjustments are not expected to be material.

Allocating the Transaction Price Based on Standalone Selling Prices ("SSP")

We allocate the transaction price to each performance obligation in a contract based on its relative SSP. The SSP is the observable price at which we sell the product or service separately. In the absence of observable pricing, we estimate SSP using the residual approach. We establish SSP as follows:

1.SaaS subscriptions - Given the highly variable selling price of our SaaS subscriptions, we establish the SSP of our SaaS subscriptions using a residual approach after first determining the SSP of consulting and training services. We have concluded the residual approach to estimating SSP of our SaaS subscriptions is an appropriate allocation of the transaction price.

2.Term license subscriptions - Given the highly variable selling price of our term license subscriptions, we have established SSP of term license subscriptions using a residual approach after first determining the SSP of maintenance and support. Maintenance and support is sold on a standalone basis in conjunction with renewals of our legacy perpetual software licenses and within a narrow 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 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 services and training services - The SSP of consulting services and training services is established based on the observable pricing of standalone sales within each geographic region where the services are sold.

Contract Balances

Timing 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. As of March 31, 2021 and December 31, 2020, contract assets of $17.4 million and $20.1 million, respectively, are included in the Prepaid expenses and other current assets and Other assets line items in our condensed consolidated balance sheets.

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. For the three months ended March 31, 2021, we recognized $48.5 million of revenue that was included in the deferred revenue balance as of December 31, 2020.

Transaction Price Allocated to the Remaining Performance Obligations

As of March 31, 2021, we had an aggregate transaction price of $202.5 million allocated to unsatisfied performance obligations. We expect to recognize $184.3 million of this balance as revenue over the next 24 months with the remaining amount recognized thereafter.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Investments and Fair Value Measurements

3 Months Ended

Mar. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Investments and Fair Value Measurements

15. Investments and Fair Value Measurements

Fair Value Measurements

We use a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires us to use observable inputs when available and to minimize the use of unobservable inputs when determining fair value. The three tiers are defined as follows:

•Level 1. Observable inputs based on unadjusted quoted prices in active markets for identical assets or liabilities;

•Level 2. Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and

•Level 3. Unobservable inputs for which there is little or no market data, which require us to develop our own assumptions.

The asset or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques maximize the use of relevant observable inputs and minimize the use of unobservable inputs. There were no instruments measured at fair value on a recurring basis using significant unobservable inputs as of March 31, 2021 and December 31, 2020.

The valuation techniques that may be used to measure fair value are as follows:

•Market approach - Uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities;

•Income approach - Uses valuation techniques to convert future amounts to a single present amount based on current market expectations about those future amounts;

•Cost approach - Based on the amount that currently would be required to replace the service capacity of an asset (i.e., replacement cost).

The carrying amounts of our cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate fair value as of March 31, 2021 and December 31, 2020 because of the relatively short duration of these instruments.

Investments

Our investment portfolio consists largely of debt investments classified as available-for-sale. Changes in the fair value of available-for-sale securities, excluding other-than-temporary impairments, are recorded in other comprehensive income (loss). The components of our investments as of March 31, 2021 are as follows (in thousands):


	As of March 31, 2021
	Fair Value Measurement							Balance Sheet Classification
	Fair Value Level	Cost Basis		Unrealized Gains / (Losses)		Market Value		Cash and Cash Equivalents		Short-Term Investments		Long-Term Investments
Money market fund	Level 1	$	49,930	$	—	$	49,930	$	49,930	$	—	$	—
U.S. Treasury bonds	Level 1	24,445		4		24,449		—		24,449		—
Commercial paper	Level 2	60,412		—		60,412		—		60,412		—
Corporate bonds	Level 2	29,113		(15)		29,098		—		27,550		1,548
Asset-backed securities	Level 2	26,373		(3)		26,370		—		5,601		20,769
Total investments		$	190,273	$	(14)	$	190,259	$	49,930	$	118,012	$	22,317

At December 31, 2020, our investments consisted of the following (in thousands):


	As of December 31, 2020
	Fair Value Measurement							Balance Sheet Classification
	Fair Value Level	Cost Basis		Unrealized Gains / (Losses)		Market Value		Cash and Cash Equivalents		Short-Term Investments		Long-Term Investments
Money market fund	Level 1	$	27,150	$	—	$	27,150	$	27,150	$	—	$	—
U.S. Treasury bonds	Level 1	24,445		(3)		24,442		—		16,273		8,169
Commercial paper	Level 2	76,905		—		76,905		16,493		60,412		—
Corporate bonds	Level 2	34,738		(11)		34,727		—		27,542		7,185
Asset-backed securities	Level 2	26,373		(8)		26,365		—		5,599		20,766
Total investments		$	189,611	$	(22)	$	189,589	$	43,643	$	109,826	$	36,120

There were no Level 3 assets held at any point during the three months ended March 31, 2021. Additionally, there were no transfers between Levels 1 and 2 during the three months ended March 31, 2021.

The amortized cost basis and fair value of debt securities at March 31, 2021, by contractual maturity, are as follows (in thousands):


	As of March 31, 2021
	Cost Basis		Fair Value
Due in one year or less	$	167,953	$	167,942
Due after one year through five years	22,320		22,317
Total investments	$	190,273	$	190,259

Actual maturities may differ from the contractual maturities in the table above because borrowers have the right to call or prepay certain obligations.

Commitments and Contingencies -Narrative (Detail) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Outstanding letters of credit	$ 11.2	$ 11.2

Leases - Additional Information (Details) $ in Thousands	1 Months Ended	3 Months Ended
Leases - Additional Information (Details) $ in Thousands	Oct. 31, 2020 USD ($)	Mar. 31, 2021 USD ($)	Mar. 31, 2020 USD ($)	Dec. 31, 2020 USD ($)	Jul. 01, 2020 USD ($)	Jan. 31, 2020 ft²	Feb. 28, 2019 ft²	Apr. 30, 2018 ft²
Debt Instrument [Line Items]
Renewal term		10 years
Number of square feet \| ft²						34,158	28,805	176,222
Lease term (in months)								150 months
Operating right-of-use assets		$ 30,610		$ 30,659	$ 7,900
Financing cash outflows for finance leases	$ 2,700	0	$ 357
Operating lease liabilities		58,236		$ 58,117	$ 7,900
Amortization of operating right-of-use assets		300	700
Interest expense on operating right-of-use liabilities		$ 400	$ 400
Minimum
Debt Instrument [Line Items]
Operating leases, remaining lease term		1 year
Maximum
Debt Instrument [Line Items]
Operating leases, remaining lease term		11 years

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current assets
Cash and cash equivalents	$ 114,752	$ 112,462
Short-term investments and marketable securities	118,012	109,826
Accounts receivable, net of allowance of $1,400 as of each of March 31, 2021 and December 31, 2020	87,424	97,278
Deferred commissions, current	18,749	17,899
Prepaid expenses and other current assets	28,484	27,955
Total current assets	367,421	365,420
Property and equipment, net	34,682	35,404
Long-term investments	22,317	36,120
Goodwill	4,651	4,862
Intangible assets, net of accumulated amortization of $513 and $429 as of March 31, 2021 and December 31, 2020, respectively	1,566	1,744
Operating right-of-use assets	30,610	30,659
Deferred commissions, net of current portion	35,991	34,198
Deferred tax assets	482	489
Other assets	2,875	3,625
Total assets	500,595	512,521
Current liabilities
Accounts payable	4,194	2,967
Accrued expenses	5,777	5,821
Accrued compensation and related benefits	20,919	22,981
Deferred revenue, current	107,893	116,256
Operating lease liabilities, current	7,664	6,923
Other current liabilities	509	940
Total current liabilities	146,956	155,888
Operating lease liabilities, net of current portion	50,572	51,194
Deferred revenue, net of current portion	2,698	3,886
Deferred tax liabilities	65	70
Other non-current liabilities	4,744	4,878
Total liabilities	205,035	215,916
Stockholders’ equity
Additional paid-in capital	479,017	470,498
Accumulated other comprehensive loss	(987)	(5,010)
Accumulated deficit	(182,477)	(168,890)
Total stockholders’ equity	295,560	296,605
Total liabilities and stockholders’ equity	500,595	512,521
Class A Common Stock
Stockholders’ equity
Common stock	4	4
Class B Common Stock
Stockholders’ equity
Common stock	$ 3	$ 3

Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Leases [Abstract]
Operating lease cost	$ 1,630	$ 1,868
Amortization of right-of-use assets	0	373
Interest on lease liabilities	0	51
Short-term lease cost	41	185
Variable lease cost	25	183
Total	$ 1,696	$ 2,660

Investments and Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Components of Investments

The components of our investments as of March 31, 2021 are as follows (in thousands):


	As of March 31, 2021
	Fair Value Measurement							Balance Sheet Classification
	Fair Value Level	Cost Basis		Unrealized Gains / (Losses)		Market Value		Cash and Cash Equivalents		Short-Term Investments		Long-Term Investments
Money market fund	Level 1	$	49,930	$	—	$	49,930	$	49,930	$	—	$	—
U.S. Treasury bonds	Level 1	24,445		4		24,449		—		24,449		—
Commercial paper	Level 2	60,412		—		60,412		—		60,412		—
Corporate bonds	Level 2	29,113		(15)		29,098		—		27,550		1,548
Asset-backed securities	Level 2	26,373		(3)		26,370		—		5,601		20,769
Total investments		$	190,273	$	(14)	$	190,259	$	49,930	$	118,012	$	22,317

At December 31, 2020, our investments consisted of the following (in thousands):


	As of December 31, 2020
	Fair Value Measurement							Balance Sheet Classification
	Fair Value Level	Cost Basis		Unrealized Gains / (Losses)		Market Value		Cash and Cash Equivalents		Short-Term Investments		Long-Term Investments
Money market fund	Level 1	$	27,150	$	—	$	27,150	$	27,150	$	—	$	—
U.S. Treasury bonds	Level 1	24,445		(3)		24,442		—		16,273		8,169
Commercial paper	Level 2	76,905		—		76,905		16,493		60,412		—
Corporate bonds	Level 2	34,738		(11)		34,727		—		27,542		7,185
Asset-backed securities	Level 2	26,373		(8)		26,365		—		5,599		20,766
Total investments		$	189,611	$	(22)	$	189,589	$	43,643	$	109,826	$	36,120

Amortized Cost Basis and Fair Value of Debt Securities by Contractual Maturity

The amortized cost basis and fair value of debt securities at March 31, 2021, by contractual maturity, are as follows (in thousands):


	As of March 31, 2021
	Cost Basis		Fair Value
Due in one year or less	$	167,953	$	167,942
Due after one year through five years	22,320		22,317
Total investments	$	190,273	$	190,259

Stock-Based Compensation - Schedule of Restricted Stock Unit Activity (Detail) - Non-vested restricted stock units	3 Months Ended
	Mar. 31, 2021 $ / shares shares
Number of Shares
Non-vested outstanding at January 1, 2021 (in shares) \| shares	1,165,003
Granted (in shares) \| shares	34,535
Vested (in shares) \| shares	(56,326)
Canceled (in shares) \| shares	(17,581)
Non-vested outstanding at March 31, 2021 (in shares) \| shares	1,125,631
Weighted Average Grant Date Fair Value
Non-vested outstanding at January 1, 2021 (in usd per share) \| $ / shares	$ 46.04
Granted (in usd per share) \| $ / shares	211.06
Vested (in usd per share) \| $ / shares	44.07
Canceled (in usd per share) \| $ / shares	49.01
Non-vested outstanding at March 31, 2021 (in usd per share) \| $ / shares	$ 51.15

Stockholders' Equity (Detail)	3 Months Ended
Stockholders' Equity (Detail)	Mar. 31, 2021 vote $ / shares shares	Dec. 31, 2020 $ / shares shares
Class A Common Stock
Class of Stock [Line Items]
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, par value (in usd per share) \| $ / shares	$ 0.0001	$ 0.0001
Common stock, shares issued (in shares)	39,321,079	38,971,324
Common stock, shares outstanding (in shares)	39,321,079	38,971,324
Number of votes entitled to stockholders per share \| vote	1
Conversion of stock (in shares)	1
Maximum percentage of aggregate voting power of capital stock which triggers conversion of stock	10.00%
Class B Common Stock
Class of Stock [Line Items]
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, par value (in usd per share) \| $ / shares	$ 0.0001	$ 0.0001
Common stock, shares issued (in shares)	31,503,666	31,707,866
Common stock, shares outstanding (in shares)	31,503,666	31,707,866
Number of votes entitled to stockholders per share \| vote	10

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	13. Commitments and Contingencies Contractual Warranty and Indemnification Obligations We provide limited product warranties. Historically, any payments made under these provisions have been immaterial. We also agree to standard indemnification provisions in the ordinary course of business. Pursuant to these provisions, we agree to indemnify, hold harmless, and reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally our customers, in connection with certain intellectual property infringement claims by any third party arising from the use of our products or services in accordance with the agreement. The term of our contractual indemnity provisions often survives termination or expiration of the applicable agreement. We carry insurance that covers certain third-party claims relating to our services and limits our exposure. We have never incurred costs to defend lawsuits or settle claims related to these indemnification provisions. Letters of Credit At each of March 31, 2021 and December 31, 2020, we had outstanding letters of credit totaling $11.2 million in connection with securing our leased office space. All letters of credit are secured by our borrowing arrangement as described in Note 8. Legal From time to time, we are subject to legal, regulatory, and other proceedings and claims that arise in the ordinary course of business. There are no issues or resolutions of any matters expected to have a material adverse impact on our condensed consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Statement of Comprehensive Income [Abstract]
Net loss	$ (13,587)	$ (11,669)
Comprehensive income, net of income taxes
Foreign currency translation adjustment	4,015	17
Unrealized gains on available-for-sale securities	8	0
Total other comprehensive loss, net of income taxes	$ (9,564)	$ (11,652)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Jul. 01, 2020
Operating Leases
2021 (excluding the three months ended March 31, 2021)	$ 5,919
2022	8,177
2023	8,173
2024	8,571
2025	9,267
2026	9,338
Thereafter	48,049
Total lease payments	97,494
Less: imputed interest	(39,258)
Total	$ 58,236	$ 58,117	$ 7,900

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Allowance for doubtful accounts	$ 1,400	$ 1,400
Finite-lived intangible assets, accumulated amortization	$ 513	$ 429
Class A Common Stock
Common stock, par value (in usd per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, shares outstanding (in shares)	39,321,079	38,971,324
Common stock, shares issued (in shares)	39,321,079	38,971,324
Class B Common Stock
Common stock, par value (in usd per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares outstanding (in shares)	31,503,666	31,707,866
Common stock, shares issued (in shares)	31,503,666	31,707,866

Cover Page - shares	3 Months Ended
Cover Page - shares	Mar. 31, 2021	May 03, 2021
Document and Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2021
Document Transition Report	false
Entity File Number	001-38098
Entity Registrant Name	APPIAN CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	54-1956084
Entity Address, Address Line One	7950 Jones Branch Drive
Entity Address, City or Town	McLean
Entity Address, State or Province	VA
Entity Address, Postal Zip Code	22102
City Area Code	(703)
Local Phone Number	442-8844
Title of 12(b) Security	Class A Common Stock
Trading Symbol	APPN
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001441683
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false
Class A Common Stock
Document and Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		39,346,857
Class B Common Stock
Document and Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		31,499,516

Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended		12 Months Ended
	May 31, 2019	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	May 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option granted (in shares)		0
Exercise price of stock options granted (in usd per share)		$ 0
Service period (in years)		4 years 8 months 12 days		4 years 10 months 24 days
Vested in period, value		$ 9.7	$ 0.3
Compensation cost related to nonvested stock options not yet recognized		$ 0.2
Unrecognized compensation cost related to nonvested stock option recognized over weighted average period, in years		1 year
Non-vested restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost related to unvested restricted stock units		$ 50.4
Weighted average remaining vesting period		2 years 2 months 12 days
Grant of RSUs (in shares)		34,535
Fair value of shares granted (in usd per share)		$ 211.06
2017 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available to be issued (in shares)		4,259,664
Vesting, consecutive days (in days)	90 days
Vesting, change in control period (in years)	5 years
2017 Equity Incentive Plan \| Class A Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available to be issued (in shares)		7,166,609			6,421,442
2007 Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available to be issued (in shares)					421,442
Number of shares available for grants (in shares)					0
Chief Executive Officer \| 2017 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option granted (in shares)	700,000
Exercise price of stock options granted (in usd per share)	$ 33.98
Share price (in usd per share)	$ 84.63
Value of award at grant date	$ 9.5
Service period (in years)	2 years 7 months 6 days
Chief Executive Officer \| 2019 CEO Grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognition of stock-based compensation expense accelerated		$ 3.3

Property and Equipment, net

3 Months Ended

Mar. 31, 2021

Property, Plant and Equipment [Abstract]

Property and Equipment, net

6. Property and Equipment, net

Property and equipment, net consisted of the following as of March 31, 2021 and December 31, 2020 (in thousands):


	March 31, 2021		December 31, 2020
Leasehold improvements	$	36,247	$	36,263
Office furniture and fixtures	2,521		2,521
Computer hardware	4,993		4,535
Computer software	1,352		1,352
Equipment	49		49
Property and equipment, gross	45,162		44,720
Less: accumulated depreciation	(10,480)		(9,316)
Property and equipment, net	$	34,682	$	35,404

Depreciation expense totaled $1.2 million for the three months ended March 31, 2021. There were no disposals or retirements recorded during the three months ended March 31, 2021.

Depreciation expense totaled $1.4 million for the three months ended March 31, 2020. During the three months ended March 31, 2020, we retired $1.3 million of leasehold improvements, $0.1 million of computer hardware, and $0.1 million of office furniture and fixtures and equipment. Nominal losses on disposal were recorded for the three months ended March 31, 2020.

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2021

Share-based Payment Arrangement [Abstract]

Summary of the Stock Option Activity

The following table summarizes stock option activity for the three months ended March 31, 2021:


	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in thousands)
Outstanding at January 1, 2021	3,399,240	$	14.06	4.9	$	503,174
Granted	—	—			—
Exercised	(88,269)	6.98			14,330
Expired	—	—			—
Canceled	(1,200)	11.02			—
Outstanding at March 31, 2021	3,309,771	$	14.25	4.7	$	392,855

Exercisable at March 31, 2021	2,882,511	$	14.68	4.5	$	340,919

Schedule of Restricted Stock Unit Activity

The following table summarizes RSU activity for the three months ended March 31, 2021:


	Number of Shares	Weighted Average Grant Date Fair Value
Non-vested and outstanding at January 1, 2021	1,165,003	$	46.04
Granted	34,535	211.06
Vested	(56,326)	44.07
Canceled	(17,581)	49.01
Non-vested and outstanding at March 31, 2021	1,125,631	51.15

Schedule of Components of Stock-based Compensation Expense

The following table summarizes the components of our stock-based compensation expense by instrument type for the three months ended March 31, 2021 and 2020 (in thousands):


	Three Months Ended March 31,
	2021		2020
RSUs	$	4,005	$	2,299
Stock options	3,733		1,084
Common stock awards to Board of Directors	156		93
Total stock-based compensation expense	$	7,894	$	3,476

Schedule of Stock-based Compensation Expense Included in Condensed Consolidated Statements of Operations


	Three Months Ended March 31,
	2021		2020
Cost of revenue
Subscriptions	$	297	$	213
Professional services	641		212
Operating expenses
Sales and marketing	1,108		753
Research and development	1,015		553
General and administrative	4,833		1,745
Total stock-based compensation expense	$	7,894	$	3,476

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Income Taxes	9. Income Taxes The provision for income taxes is based upon the estimated annual effective tax rates for the year applied to the current period income before tax plus the tax effect of any significant or unusual items, discrete events, or changes in tax law. Our operating subsidiaries are exposed to statutory effective tax rates ranging from zero to approximately 32%. Fluctuations in the distribution of pre-tax income among our operating subsidiaries can lead to fluctuations of the effective tax rate in the condensed consolidated financial statements. For the three months ended March 31, 2021 and 2020, the actual effective tax rates were (0.9)% and 1.6%, respectively. We assess uncertain tax positions in accordance with ASC 740-10, Accounting for Uncertainties in Income Taxes. As of March 31, 2021, our net unrecognized tax benefits totaled $2.3 million, which if recognized would result in no net effect on the effective tax rate due to a valuation allowance. The amount of reasonably possible unrecognized tax benefits that could decrease over the next 12 months due to the expiration of certain statutes of limitations or settlements of tax audits is not material to our condensed consolidated financial statements. We file income tax returns in the United States federal jurisdiction and in many states and foreign jurisdictions. The tax years 2017 through 2020 remain open to examination by the major taxing jurisdictions to which we are subject. We are not currently under examination by the Internal Revenue Service for any open tax years. In response to the COVID-19 pandemic, the United States passed the Coronavirus Aid, Relief, and Economic Security ("CARES") Act in March 2020. The CARES Act includes various income and payroll tax measures. Pursuant to these measures, we have elected the option to defer the deposit and payment of our share of social security taxes that would otherwise be due between March 27, 2020 and December 31, 2020. Under the CARES Act, half of these deferred payments are due by the end of fiscal year 2021 while the other half are due by the end of fiscal year 2022. At this time, beyond the above deferral, the CARES Act is not expected to materially impact our financial statements, but we continue to evaluate potential impacts.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Stock-Based Compensation - Summary of the Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Number of Shares
Outstanding at January 1, 2021 (in shares)	3,399,240
Granted (in shares)	0
Exercised (in shares)	(88,269)
Expired (in shares)	0
Canceled (in shares)	(1,200)
Outstanding at March 31, 2021 (in shares)	3,309,771	3,399,240
Exercisable at March 31, 2021 (in shares)	2,882,511
Weighted Average Exercise Price
Outstanding at January 1, 2021 (in usd per share)	$ 14.06
Granted (in usd per share)	0
Exercised (in usd per share)	6.98
Expired (in usd per share)	0
Canceled (in usd per share)	11.02
Outstanding at March 31, 2021 (in usd per share)	14.25	$ 14.06
Exercisable at March 31, 2021 (in usd per share)	$ 14.68
Weighted Average Remaining Contractual Term (Years)
Outstanding	4 years 8 months 12 days	4 years 10 months 24 days
Exercisable at March 31, 2021	4 years 6 months
Aggregate Intrinsic Value (in thousands)
Outstanding	$ 392,855	$ 503,174
Exercised	14,330
Exercisable at March 31, 2021	$ 340,919

Investments and Fair Value Measurements - Amortized Cost Basis and Fair Value of Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Cost Basis
Due in one year or less	$ 167,953
Due after one year through five years	22,320
Cost Basis	190,273	$ 189,611
Fair Value
Due in one year or less	167,942
Due after one year through five years	22,317
Fair Value	$ 190,259	$ 189,589

Leases (Tables)

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Components of Lease Expense

The following table sets forth the components of lease expense for the three months ended March 31, 2021 and 2020 (in thousands):


	Three Months Ended March 31,
	2021		2020
Operating lease cost	$	1,630	$	1,868
Finance lease costs:
Amortization of right-of-use assets	—		373
Interest on lease liabilities	—		51
Short-term lease cost	41		185
Variable lease cost	25		183
Total	$	1,696	$	2,660

Supplemental Balance Sheet Information

Supplemental balance sheet information related to operating leases as of March 31, 2021 and December 31, 2020 was as follows (in thousands, except for lease term and discount rate):


	As of
	March 31, 2021			December 31, 2020
Operating right-of-use assets	$	30,610		$	30,659

Operating lease liabilities, current	$	7,664		$	6,923
Operating lease liabilities, net of current portion	50,572			51,194
Total operating lease liabilities	$	58,236		$	58,117

Weighted average remaining lease term (in years)	10.3			10.6

Weighted average discount rate	9.6		%	9.6		%

Supplemental Cash Flow Information

Supplemental cash flow information related to leases for the three months ended March 31, 2021 and 2020 was as follows (in thousands):


	Three Months Ended March 31,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows for operating leases	$	1,749	$	772
Operating cash outflows for finance leases	—		51
Financing cash outflows for finance leases	—		357

Maturities of Operating Lease Liabilities

A summary of our future minimum lease commitments under non-cancellable leases as of March 31, 2021 is as follows (in thousands):


	Operating Leases
2021 (excluding the three months ended March 31, 2021)	$	5,919
2022	8,177
2023	8,173
2024	8,571
2025	9,267
2026	9,338
Thereafter	48,049
Total lease payments	97,494
Less: imputed interest	(39,258)
Total	$	58,236

Basic and Diluted Loss per Common Share

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Basic and Diluted Loss per Common Share

12. Basic and Diluted Loss per Common Share


	Three Months Ended March 31,
	2021	2020
Stock options	3,309,771	4,308,009
Non-vested restricted stock units	1,125,631	1,069,168

Revenue (Tables)

3 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

Summary of Revenue by Services

The following table summarizes revenue from contracts with customers for the three months ended March 31, 2021 and 2020 (in thousands):


	Three Months Ended March 31,
	2021		2020
SaaS subscriptions	$	39,053	$	28,390
Term license subscriptions	19,853		17,793
Maintenance and support	4,860		4,253
Professional services	25,089		28,428
Total revenue	$	88,855	$	78,864

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenue
Total revenue	$ 88,855	$ 78,864
Cost of revenue
Total cost of revenue	23,529	24,119
Gross profit	65,326	54,745
Operating expenses
Sales and marketing	35,984	34,172
Research and development	20,690	16,038
General and administrative	19,142	13,141
Total operating expenses	75,816	63,351
Operating loss	(10,490)	(8,606)
Other expense
Other expense, net	2,893	3,114
Interest expense	81	143
Total other expense	2,974	3,257
Loss before income taxes	(13,464)	(11,863)
Income tax expense (benefit)	123	(194)
Net loss	$ (13,587)	$ (11,669)
Net loss per share:
Basic (in dollars per share)	$ (0.19)	$ (0.17)
Diluted (in dollars per share)	$ (0.19)	$ (0.17)
Weighted average common shares outstanding:
Basic (in shares)	70,730,235	67,528,331
Diluted (in shares)	70,730,235	67,528,331
Subscriptions
Revenue
Total revenue	$ 63,766	$ 50,436
Cost of revenue
Total cost of revenue	5,854	5,383
Professional services
Revenue
Total revenue	25,089	28,428
Cost of revenue
Total cost of revenue	$ 17,675	$ 18,736

Basic and Diluted Loss per Common Share (Detail) - shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities outstanding (in shares)	3,309,771	4,308,009
Non-vested restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities outstanding (in shares)	1,125,631	1,069,168

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash flows from operating activities:
Net loss	$ (13,587)	$ (11,669)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,278	1,511
Bad debt expense	0	200
Loss on disposal of property and equipment	0	7
Change in fair value of available-for-sale securities	(8)	0
Deferred income taxes	(448)	0
Stock-based compensation	7,894	3,476
Changes in assets and liabilities:
Accounts receivable	12,651	5,751
Prepaid expenses and other assets	(279)	37
Deferred commissions	(2,642)	525
Accounts payable and accrued expenses	1,159	(1,800)
Accrued compensation and related benefits	(1,955)	(399)
Other current and non-current liabilities	151	(154)
Deferred revenue	(7,192)	(2,503)
Operating lease liabilities	168	1,159
Net cash used in operating activities	(2,810)	(3,859)
Cash flows from investing activities:
Proceeds from sale of investments	5,625	0
Payments for acquisitions, net of cash acquired	0	(6,138)
Purchases of property and equipment	(468)	(202)
Net cash provided by (used in) investing activities	5,157	(6,340)
Cash flows from financing activities:
Principal payments on finance leases	0	(357)
Proceeds from exercise of common stock options	625	670
Net cash provided by financing activities	625	313
Effect of foreign exchange rate changes on cash and cash equivalents	(682)	(706)
Net increase (decrease) in cash and cash equivalents	2,290	(10,592)
Cash and cash equivalents, beginning of period	112,462	159,755
Cash and cash equivalents, end of period	114,752	149,163
Supplemental disclosure of cash flow information:
Cash paid for interest	88	49
Cash paid for income taxes	$ 148	$ 43

Debt - Additional Information (Detail) - USD ($)	1 Months Ended
Debt - Additional Information (Detail) - USD ($)	Nov. 30, 2017	Mar. 31, 2021	Dec. 31, 2020
Line of Credit Facility [Line Items]
Outstanding letters of credit		$ 11,200,000	$ 11,200,000
Revolving Credit Facility
Line of Credit Facility [Line Items]
Credit facility	$ 20,000,000.0
Term Loan
Line of Credit Facility [Line Items]
Line of credit, outstanding borrowings		$ 0
Minimum
Line of Credit Facility [Line Items]
Unused credit facility fee	0.15%
Quick ratio	135.00%
Minimum \| London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Interest rate margin	2.00%
Minimum \| Prime Rate
Line of Credit Facility [Line Items]
Interest rate margin	1.00%
Maximum
Line of Credit Facility [Line Items]
Unused credit facility fee	0.25%
Maximum \| London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Interest rate margin	2.50%
Maximum \| Prime Rate
Line of Credit Facility [Line Items]
Interest rate margin	1.50%

Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Oct. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Leases [Abstract]
Operating cash outflows for operating leases		$ 1,749	$ 772
Operating cash outflows for finance leases		0	51
Financing cash outflows for finance leases	$ 2,700	$ 0	$ 357

Stock-Based Compensation - Schedule of Stock-based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 7,894	$ 3,476
RSUs
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	4,005	2,299
Stock options
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	3,733	1,084
Common stock awards to Board of Directors
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 156	$ 93

Acquisitions

3 Months Ended

Mar. 31, 2021

Business Combinations [Abstract]

Acquisitions

5. Acquisitions

Novayre Solutions SL

In January 2020, we acquired 100% of the outstanding common stock of Novayre Solutions SL ("Novayre"), a developer of a robotic process automation platform, for approximately $6.9 million. The acquisition was made due to the attractive nature of the product offerings of Novayre and in furtherance of our objective to enhance our automation platform. The transaction was financed through available cash on hand.


Cash acquired	$	731
Other current assets	213
Property and equipment	22
Developed technology	1,537
Customer relationships	406
Goodwill	4,348
Other noncurrent assets	10
Total assets acquired	7,267
Current liabilities	14
Noncurrent liabilities	344
Total liabilities assumed	358
Net assets acquired	$	6,909

There were no changes to our reportable segments as a result of the acquisition, and revenue and expenses from the date of the acquisition through March 31, 2021 were immaterial. Additionally, acquisition costs incurred in relation to the transaction were immaterial.

Acquired property and equipment is depreciated on a straight-line basis over the assets' respective estimated remaining useful lives. Goodwill is calculated as the excess of the consideration transferred over the fair value of the identifiable net assets acquired and represents the future economic benefits expected to arise from other intangible assets acquired that do not qualify

for separate recognition, including assembled workforce, non-contractual relationships, and expected future synergies. We do not expect the purchase price allocated to goodwill and intangible assets to be deductible for tax purposes.

Organization and Description of Business	3 Months Ended
Organization and Description of Business	Mar. 31, 2021
Accounting Policies [Abstract]
Organization and Description of Business	1. Organization and Description of Business Appian Corporation (together with its subsidiaries, “Appian,” the “Company,” “we,” or “our”) helps organizations build applications and workflows rapidly, with a low-code automation platform. Combining people, technologies, and data in a single workflow, Appian can help companies maximize their resources and improve business results. Many of the world’s largest organizations use Appian applications to improve customer experience, achieve operational excellence, and simplify global risk management and compliance. We were incorporated in the state of Delaware in August 1999. We are headquartered in McLean, Virginia and operate in Canada, Switzerland, the United Kingdom, France, Germany, the Netherlands, Italy, Australia, Spain, Singapore, and Sweden.

Debt	3 Months Ended
Debt	Mar. 31, 2021
Debt Disclosure [Abstract]
Debt	8. Debt Line of Credit In November 2017, we entered into a $20.0 million revolving line of credit with a lender. The facility matures in November 2022. We may elect whether amounts drawn on the revolving line of credit bear interest at a floating rate per annum equal to either LIBOR or the Prime rate plus an additional interest rate margin that is determined by the availability of the borrowings under the revolving line of credit. The additional interest rate margin will range from 2.00% to 2.50% in the case of LIBOR advances and from 1.00% to 1.50% in the case of Prime rate advances. The revolving line of credit contains an unused facility fee in an amount between 0.15% and 0.25% of the average unused portion of the revolving line of credit, which is payable quarterly. The agreement contains certain customary affirmative and negative covenants and requires us to maintain (i) an adjusted quick ratio of at least 1.35 to 1.00 and (ii) minimum adjusted EBITDA, in the amounts and for the periods set forth in the agreement. Any amounts borrowed under the credit facility are collateralized by substantially all of our assets. We were in compliance with all covenants as of March 31, 2021. As of March 31, 2021, we had no outstanding borrowings under this revolving line of credit, and we had outstanding letters of credit totaling $11.2 million in connection with securing our leased office space. We are monitoring the LIBOR to SOFR transition, which may result in modification or amendment of our existing revolving line of credit.

Significant Accounting Policies

3 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

Significant Accounting Policies

2. Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements and footnotes have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) as contained in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) for interim financial information. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of the results of operations, financial position, changes in stockholders’ equity, and cash flows. 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 condensed 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, 2020, filed with the Securities and Exchange Commission (the “SEC”) on February 18, 2021.

Use of Estimates

The preparation of our condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and judgments that affect the amounts reported in these condensed 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 condensed consolidated financial statements include revenue recognition, income taxes and the related valuation allowance, the valuation of goodwill and intangible assets, leases, costs to obtain a contract with a customer, the valuation of financial instruments, and stock-based compensation.

The ongoing outbreak of the novel coronavirus disease ("COVID-19") has resulted in the declaration of a global pandemic and introduced a level of disruption and uncertainty into the financial markets and global economy. While we continue to monitor the developments surrounding the pandemic, as of the date of issuance of these financial statements, we are not aware of any specific events or circumstances that would require us to update our estimates, assumptions, and judgments or revise the carrying value of our assets or liabilities. We cannot estimate the impacts COVID-19 will have on our business going forward as such impacts will be largely dependent upon a number of factors outside of our control including the extent and duration of the outbreak as well as any mitigating actions which may be undertaken by global governments and the general public.

Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of Appian and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

Public Offering

In June 2020, we completed an underwritten public offering of 2,500,000 shares of our Class A common stock, of which 1,931,206 shares of Class A common stock were sold by us and 568,794 shares of Class A common stock were sold by existing stockholders. The underwriter purchased the shares from us and the selling stockholders at a price of $56.50 per share. Our net

proceeds from the offering were $107.9 million, after deducting underwriting discounts and commissions and offering expenses. We did not receive any of the proceeds from the sale of shares by the selling stockholders.

Revenue Recognition

Refer to Note 3 for a detailed discussion on specific revenue recognition principles related to our major revenue streams.

Cost of Revenue

Subscriptions

Cost of subscriptions revenue consists primarily of fees paid to our third-party managed hosting providers and other third-party service providers, personnel costs such as payroll and benefits for our technology operations and customer support teams, and allocated facility costs and overhead.

Professional Services

Cost of professional services revenue includes all direct and indirect costs to deliver our professional services and training, including employee compensation for our global professional services and training personnel, third-party contractor costs, allocated facility costs and overhead, and the costs of billable expenses such as travel and lodging. The unpredictability of the timing of entering into significant professional services agreements sold on a standalone basis may cause significant fluctuations in our quarterly financial results and allocated facility costs and overhead.

Concentration of Credit and Customer Risk

Our financial instruments exposed to concentration of credit and customer risk consist primarily of cash and cash equivalents, trade accounts receivable, and our short- and long-term investments. Deposits held with banks may exceed the amount of insurance provided on such deposits. 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. We believe no additional credit risk beyond amounts provided for collection loss are inherent in accounts receivable. Revenue generated from government agencies represented 20.9% and 14.9% of our revenue for the three months ended March 31, 2021 and 2020, respectively, of which the top three federal government agencies generated 6.9% and 6.0% of our revenue for the three months ended March 31, 2021 and 2020, respectively. Additionally, 32.2% and 33.5% of our revenue during the three months ended March 31, 2021 and 2020, respectively, was generated from foreign customers.

Cash and Cash Equivalents

We consider all highly liquid investments with an original or remaining maturity of three months or less at the date of purchase, as well as overnight repurchase agreements, to be cash equivalents.

Accounts Receivable and Allowance for Doubtful Accounts

Accounts receivable are stated at realizable value, net of an allowance for doubtful accounts. The allowance for doubtful accounts 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, and current economic trends. If the financial condition of our customers were to deteriorate, resulting in their inability to make required payments, additional provisions for doubtful accounts would be required and would increase bad debt expense. There was no increase in the allowance for doubtful accounts from December 31, 2020 to March 31, 2021.

Assets Recognized from the Costs to Obtain a Contract with a Customer

We capitalize the incremental costs of obtaining a contract with a customer, including sales commissions paid to our direct sales force, that are incremental costs to obtaining customer contracts. These costs are recorded as deferred commissions in the condensed consolidated balance sheets. Costs to obtain a contract for a new customer or upsell are amortized over an estimated economic life of five years as sales commissions on initial sales are not commensurate with sales commissions on contract renewals. We determine the estimated economic life based on both qualitative and quantitative factors such as expected renewals, product life cycles, contractual terms, and customer attrition. We periodically review the carrying amount of deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the estimated economic life. Commissions paid relating to contract renewals are deferred and amortized over the related renewal period. We also capitalize the incremental fringe benefits associated with commission expenses paid to our direct sales force. Costs to obtain a contract for professional services arrangements are expensed as incurred as the contractual period of our professional services arrangements are one year or less.

Amortization associated with commission expense is recorded to sales and marketing costs in our condensed consolidated statements of operations. Commission expense was $6.8 million and $5.3 million for the three months ended March 31, 2021 and 2020, respectively.

Property and Equipment

Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Significant additions or improvements extending the useful life of an asset are capitalized, while repairs and maintenance costs which do not significantly improve the related assets or extend their useful lives are charged to expense as incurred.

The following table outlines the useful lives of our major asset categories:


Asset Category						Useful Life (in years)
Computer software						3
Computer hardware						3
Equipment						5
Office furniture and fixtures						10
Leasehold improvements						(a)

(a) Leasehold improvements have an estimated useful life of the shorter of the useful life of the assets or the lease term.

Impairment of Long-Lived Assets

Long-lived assets and certain intangible assets are reviewed for impairment whenever events or circumstances indicate the carrying amount of an asset may not be recoverable through undiscounted cash flows from the use of the assets. If such assets are considered to be impaired, the assets are written down to their estimated fair value. No indicators of impairment were identified for the three months ended March 31, 2021 and 2020.

Investments and Fair Value of Financial Instruments

Refer to Note 15 for a detailed discussion on our policies specific to investments and determining fair value.

Stock-Based Compensation

We account for stock-based compensation expense related to stock-based awards based on the estimated fair value of the award on the grant date. We calculate the fair value of stock options containing only a service condition using the Black-Scholes option pricing model. The fair value of restricted stock units ("RSUs") is based on the closing market price of our common stock on the Nasdaq Global Market on the date of grant. For service-based awards such as RSUs, stock-based compensation expense is recognized on a straight-line basis over the requisite service period. For performance-based awards, stock-based compensation expense is recognized using the accelerated attribution method based on the probability of satisfying

the performance condition. For awards that contain market conditions, compensation expense is measured using a Monte Carlo simulation and recognized using the accelerated attribution method over the derived service period based on the expected market performance as of the grant date. We account for forfeitures as they occur rather than estimating expected forfeitures.

Leases

Refer to Note 4 for a detailed discussion on our policies specific to leasing arrangements.

Recent Accounting Pronouncements

Adopted

In December 2019, the FASB issued Accounting Standards Update ("ASU") 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which amends and aims to simplify accounting disclosure requirements regarding a number of topics including, but not limited to, intraperiod tax allocations, accounting for deferred taxes when there are changes in the consolidation of certain investments, tax basis step ups in an acquisition, and the application of effective rate changes during interim periods. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The adoption of the new guidance did not have a material impact on our consolidated financial statements.

Not Yet Adopted

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848), which provides temporary optional expedients and exceptions to the GAAP guidance on contract modifications to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates such as the Secured Overnight Financing Rate ("SOFR"). This guidance is effective upon issuance and generally can be applied through the end of calendar year 2022. We are currently evaluating the impact and applicability of this new standard.

Segment and Geographic Information - Summary of Revenues By Geography (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 88,855	$ 78,864
Domestic
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	60,282	52,455
International
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 28,573	$ 26,409

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Subparagraph (a)
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 280
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-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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+ Details

Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Jul. 01, 2020
Leases [Abstract]
Operating right-of-use assets	$ 30,610	$ 30,659	$ 7,900
Operating lease liabilities, current	7,664	6,923
Operating lease liabilities, net of current portion	50,572	51,194
Total operating lease liabilities	$ 58,236	$ 58,117	$ 7,900
Operating leases, weighted average remaining lease term (in years)	10 years 3 months 18 days	10 years 7 months 6 days
Operating leases, weighted average remaining discount rate	9.60%	9.60%

Income Taxes (Detail) - USD ($) $ in Millions	3 Months Ended
Income Taxes (Detail) - USD ($) $ in Millions	Mar. 31, 2021	Mar. 31, 2020
Income Taxes [Line Items]
Effective tax rate	(0.90%)	1.60%
Net unrecognized tax benefits which would impact effective tax rate if recognized	$ 2.3
Minimum \| Subsidiaries
Income Taxes [Line Items]
Effective tax rate	0.00%
Maximum \| Subsidiaries
Income Taxes [Line Items]
Effective tax rate	32.00%

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2019		67,468,022
Beginning balance at Dec. 31, 2019	$ 205,237	$ 6	$ 340,929	$ (285)	$ (135,413)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(11,669)				(11,669)
Issuance of common stock to directors (in shares)		1,946
Vesting of restricted stock units (in shares)		46,031
Exercise of stock options (in shares)		129,082
Exercise of stock options	670		670
Stock-based compensation expense	3,476		3,476
Other comprehensive income	17			17
Ending balance (in shares) at Mar. 31, 2020		67,645,081
Ending balance at Mar. 31, 2020	197,731	$ 6	345,075	(268)	(147,082)
Beginning balance (in shares) at Dec. 31, 2020		70,679,190
Beginning balance at Dec. 31, 2020	296,605	$ 7	470,498	(5,010)	(168,890)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	$ (13,587)				(13,587)
Issuance of common stock to directors (in shares)		960
Vesting of restricted stock units (in shares)		56,326
Exercise of stock options (in shares)	88,269	88,269
Exercise of stock options	$ 625		625
Stock-based compensation expense	7,894		7,894
Other comprehensive income	4,023			4,023
Ending balance (in shares) at Mar. 31, 2021		70,824,745
Ending balance at Mar. 31, 2021	$ 295,560	$ 7	$ 479,017	$ (987)	$ (182,477)

Property and Equipment, net (Tables)

3 Months Ended

Mar. 31, 2021

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

Property and equipment, net consisted of the following as of March 31, 2021 and December 31, 2020 (in thousands):


	March 31, 2021		December 31, 2020
Leasehold improvements	$	36,247	$	36,263
Office furniture and fixtures	2,521		2,521
Computer hardware	4,993		4,535
Computer software	1,352		1,352
Equipment	49		49
Property and equipment, gross	45,162		44,720
Less: accumulated depreciation	(10,480)		(9,316)
Property and equipment, net	$	34,682	$	35,404

Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

Property and Equipment, Useful Life

The following table outlines the useful lives of our major asset categories:


Asset Category						Useful Life (in years)
Computer software						3
Computer hardware						3
Equipment						5
Office furniture and fixtures						10
Leasehold improvements						(a)

(a) Leasehold improvements have an estimated useful life of the shorter of the useful life of the assets or the lease term.

Segment and Geographic Information - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2020
Sales Revenue, Net \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Concentration risk, percentage	12.50%

Investments and Fair Value Measurements - Components of Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Cost Basis	$ 190,273	$ 189,611
Unrealized Gains / (Losses)	(14)	(22)
Market Value	190,259	189,589
Cash and Cash Equivalents
Debt Securities, Available-for-sale [Line Items]
Market Value	49,930	43,643
Short-Term Investments
Debt Securities, Available-for-sale [Line Items]
Market Value	118,012	109,826
Long-Term Investments
Debt Securities, Available-for-sale [Line Items]
Market Value	22,317	36,120
Level 1 \| Money market fund
Debt Securities, Available-for-sale [Line Items]
Cost Basis	49,930	27,150
Unrealized Gains / (Losses)	0	0
Market Value	49,930	27,150
Level 1 \| Money market fund \| Cash and Cash Equivalents
Debt Securities, Available-for-sale [Line Items]
Market Value	49,930	27,150
Level 1 \| Money market fund \| Short-Term Investments
Debt Securities, Available-for-sale [Line Items]
Market Value	0	0
Level 1 \| Money market fund \| Long-Term Investments
Debt Securities, Available-for-sale [Line Items]
Market Value	0	0
Level 1 \| U.S. Treasury bonds
Debt Securities, Available-for-sale [Line Items]
Cost Basis	24,445	24,445
Unrealized Gains / (Losses)	4	(3)
Market Value	24,449	24,442
Level 1 \| U.S. Treasury bonds \| Cash and Cash Equivalents
Debt Securities, Available-for-sale [Line Items]
Market Value	0	0
Level 1 \| U.S. Treasury bonds \| Short-Term Investments
Debt Securities, Available-for-sale [Line Items]
Market Value	24,449	16,273
Level 1 \| U.S. Treasury bonds \| Long-Term Investments
Debt Securities, Available-for-sale [Line Items]
Market Value	0	8,169
Level 2 \| Commercial paper
Debt Securities, Available-for-sale [Line Items]
Cost Basis	60,412	76,905
Unrealized Gains / (Losses)	0	0
Market Value	60,412	76,905
Level 2 \| Commercial paper \| Cash and Cash Equivalents
Debt Securities, Available-for-sale [Line Items]
Market Value	0	16,493
Level 2 \| Commercial paper \| Short-Term Investments
Debt Securities, Available-for-sale [Line Items]
Market Value	60,412	60,412
Level 2 \| Commercial paper \| Long-Term Investments
Debt Securities, Available-for-sale [Line Items]
Market Value	0	0
Level 2 \| Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Cost Basis	29,113	34,738
Unrealized Gains / (Losses)	(15)	(11)
Market Value	29,098	34,727
Level 2 \| Corporate bonds \| Cash and Cash Equivalents
Debt Securities, Available-for-sale [Line Items]
Market Value	0	0
Level 2 \| Corporate bonds \| Short-Term Investments
Debt Securities, Available-for-sale [Line Items]
Market Value	27,550	27,542
Level 2 \| Corporate bonds \| Long-Term Investments
Debt Securities, Available-for-sale [Line Items]
Market Value	1,548	7,185
Level 2 \| Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Cost Basis	26,373	26,373
Unrealized Gains / (Losses)	(3)	(8)
Market Value	26,370	26,365
Level 2 \| Asset-backed securities \| Cash and Cash Equivalents
Debt Securities, Available-for-sale [Line Items]
Market Value	0	0
Level 2 \| Asset-backed securities \| Short-Term Investments
Debt Securities, Available-for-sale [Line Items]
Market Value	5,601	5,599
Level 2 \| Asset-backed securities \| Long-Term Investments
Debt Securities, Available-for-sale [Line Items]
Market Value	$ 20,769	$ 20,766

Acquisitions - Schedule of Business Acquisitions (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Jan. 31, 2020
Business Acquisition [Line Items]
Goodwill	$ 4,651	$ 4,862
Robotic Process Automation Platform
Business Acquisition [Line Items]
Cash acquired			$ 731
Other current assets			213
Property and equipment			22
Goodwill			4,348
Other noncurrent assets			10
Total assets acquired			7,267
Current liabilities			14
Noncurrent liabilities			344
Total liabilities assumed			358
Net assets acquired			6,909
Robotic Process Automation Platform \| Developed technology
Business Acquisition [Line Items]
Finite-lived intangibles			1,537
Robotic Process Automation Platform \| Customer relationships
Business Acquisition [Line Items]
Finite-lived intangibles			$ 406

Property and Equipment, net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 45,162	$ 44,720
Less: accumulated depreciation	(10,480)	(9,316)
Property and equipment, net	34,682	35,404
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	36,247	36,263
Office furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	2,521	2,521
Computer hardware
Property, Plant and Equipment [Line Items]
Property and equipment, gross	4,993	4,535
Computer software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,352	1,352
Equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 49	$ 49

Stockholders' Equity	3 Months Ended
Stockholders' Equity	Mar. 31, 2021
Equity [Abstract]
Stockholders' Equity	11. Stockholders' Equity As of March 31, 2021, we had authorized 500,000,000 shares of Class A common stock and 100,000,000 shares of Class B common stock, each with a par value of $0.0001 per share, of which 39,321,079 shares of Class A common stock and 31,503,666 shares of Class B common stock were issued and outstanding. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting and conversion rights. The holders of Class A common stock are entitled to one vote per share, and the holders of Class B common stock are entitled to ten votes per share on all matters subject to stockholder vote. The holders of Class B common stock also have approval rights for certain corporate actions. Each share of Class B common stock may be converted into one share of Class A common stock at the option of its holder and will be automatically converted upon transfer thereof, subject to certain exceptions. In addition, upon the date on which the outstanding shares of Class B common stock represent less than 10% of the aggregate voting power of our capital stock, all outstanding shares of Class B common stock shall convert automatically into Class A common stock.

Segment and Geographic Information (Tables)

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Summary of Revenue By Geography

The following table summarizes revenue by geography for the three months ended March 31, 2021 and 2020 (in thousands):


	Three Months Ended March 31,
	2021		2020
Domestic	$	60,282	$	52,455
International	28,573		26,409
Total	$	88,855	$	78,864

Revenue - Revenue by Services (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 88,855	$ 78,864
SaaS subscriptions
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	39,053	28,390
Term license subscriptions
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	19,853	17,793
Maintenance and support
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	4,860	4,253
Professional services
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 25,089	$ 28,428

- Definition

+ References

+ Details