0001441683-22-000100 | 10-Q | XBRL Viewer

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Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Operating Leases
2022 (excluding the nine months ended September 30, 2022)	$ 2,040
2023	8,367
2024	9,464
2025	10,202
2026	10,603
2027	10,892
Thereafter	44,762
Total lease payments	96,330
Less: imputed interest	(36,186)
Total	$ 60,144	$ 56,894

Business Combinations - Schedule of Business Acquisitions (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021	Aug. 31, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Goodwill	$ 24,045	$ 27,795		$ 4,862
Lana Labs GMBH
Business Acquisition [Line Items]
Cash acquired			$ 256
Other current assets			106
Property and equipment			59
Goodwill			24,521
Other non-current assets			27
Total assets acquired			31,693
Current liabilities			638
Non-current liabilities			38
Total liabilities assumed			676
Net assets acquired			31,017
Lana Labs GMBH \| Developed technology
Business Acquisition [Line Items]
Finite-lived intangibles			5,974
Lana Labs GMBH \| Customer relationships
Business Acquisition [Line Items]
Finite-lived intangibles			$ 750

Goodwill and Intangible Assets - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
2022 (excluding the nine months ended September 30, 2022)	$ 347
2023	1,342
2024	1,342
2025	1,068
2026	687
2027	84
Thereafter	269
Intangible assets, net	$ 5,139	$ 7,144

Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Leases [Abstract]
Operating cash outflows for operating leases	$ 2,099	$ 1,792	$ 6,258	$ 5,295
Amortization of operating lease ROU assets	364	685	995	1,380
Interest expense on operating lease liabilities	$ 1,332	$ 521	$ 3,957	$ 1,448

Goodwill and Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 7,270	$ 8,404
Less: accumulated amortization	(2,131)	(1,260)
Intangible assets, net	5,139	7,144
Developed technology
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	6,290	7,271
Customer relationships - Non-Robotic Process Automation (“RPA”)
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	754	872
Customer relationships - RPA
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 226	$ 261

Property and Equipment, net (Tables)

9 Months Ended

Sep. 30, 2022

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

Property and equipment, net consisted of the following as of September 30, 2022 and December 31, 2021 (in thousands):


	September 30, 2022		December 31, 2021
Leasehold improvements	$	43,308	$	41,005
Office furniture and fixtures	3,224		2,536
Computer hardware	8,761		6,001
Computer software	1,353		1,353
Equipment	235		124
Property and equipment, gross	56,881		51,019
Less: accumulated depreciation	(18,189)		(14,106)
Property and equipment, net	$	38,692	$	36,913

Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Leases [Abstract]
Operating lease cost	$ 1,708	$ 1,659	$ 4,968	$ 4,984
Short-term lease cost	170	23	334	77
Variable lease cost	952	947	2,878	1,744
Total	$ 2,830	$ 2,629	$ 8,180	$ 6,805

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Allowance for doubtful accounts	$ 1,901	$ 1,400
Accumulated depreciation	18,189	14,106
Finite-lived intangible assets, accumulated amortization	$ 2,131	$ 1,260
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)	41,043,099	39,964,298
Common stock, shares issued (in shares)	41,043,099	39,964,298
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)	31,497,796	31,497,796
Common stock, shares issued (in shares)	31,497,796	31,497,796

Segment and Geographic Information

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Segment and Geographic Information

14. Segment and Geographic Information

We operate one operating and reportable segment, representing our consolidated business that helps organizations build applications and workflows rapidly with our low-code platform to maximize their resources and improve business results. Our reportable segment determination is based on our management and internal reporting structure, the nature of the subscriptions and services we offer, and the financial information that is evaluated regularly by our chief operation decision maker.

The following table summarizes revenue by geography for the three and nine months ended September 30, 2022 and 2021 (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Domestic	$	81,004	$	62,815	$	228,610	$	176,801
International	36,872		29,602		113,595		87,470
Total	$	117,876	$	92,417	$	342,205	$	264,271

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 and nine months ended September 30, 2022 or 2021. Substantially all of our long-lived assets were held in the United States as of September 30, 2022 and December 31, 2021.

- 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

Revenue - Additional Information (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Contract assets balances	$ 15.3	$ 14.0
Revenue recognized	134.4
Unsatisfied performance obligations	319.9
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unsatisfied performance obligations	$ 209.6
Revenue, remaining performance obligation, period (in months)	12 months
Minimum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Cloud subscriptions contracts term (in years)	1 year
Maximum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Cloud subscriptions contracts term (in years)	3 years

Segment and Geographic Information (Tables)

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Summary of Revenue By Geography

The following table summarizes revenue by geography for the three and nine months ended September 30, 2022 and 2021 (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Domestic	$	81,004	$	62,815	$	228,610	$	176,801
International	36,872		29,602		113,595		87,470
Total	$	117,876	$	92,417	$	342,205	$	264,271

Stock-Based Compensation - Fair Value Assumptions (Details) - Chief Executive Officer - 2017 Equity Incentive Plan - Stock options	9 Months Ended
	Sep. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	3.01%
Expected volatility	70.00%
Expected dividend yield	0.00%

Debt	9 Months Ended
Debt	Sep. 30, 2022
Debt Disclosure [Abstract]
Debt	9. Debt Line of Credit We have a $20.0 million revolving line of credit with a lender that matures in November 2025. In January 2022, we executed the second loan modification agreement to increase the aggregate amount of funds our foreign subsidiaries are allowed to maintain outside of the United States. We were in compliance with all covenants as of September 30, 2022. As of September 30, 2022, we had no outstanding borrowings under this revolving line of credit, and we had outstanding letters of credit totaling $11.0 million in connection with securing our leased office space. Senior Secured Credit Facilities Credit Agreement On November 3, 2022, we entered into a new Senior Secured Credit Facilities Credit Agreement (the “Credit Agreement”) which provides for a five-year term loan facility in an aggregate principal amount of $100.0 million and, in addition, up to $50.0 million for a revolving credit facility, including a letter of credit sub-facility in the aggregate availability amount of $15.0 million and a swingline sub-facility in the aggregate availability amount of $10.0 million (as a sublimit of the revolving loan facility). The new Credit Agreement matures on November 3, 2027. We will use the proceeds from the $100.0 million term loan to fund the continued growth of our business and support our working capital requirements. Under the agreement, we may elect whether amounts drawn bear interest on the outstanding principal amount at a rate per annum equal to either a) the higher of the Prime rate or the Federal Funds Effective (“Base Rate”) rate plus 0.5%, or b) the forward-looking term rate based on the secured overnight financing rate (“Term SOFR”). An additional interest rate margin is added to the elected interest rates. During the first three years of the Credit Agreement, the additional interest rate margin ranges from 1.5% to 2.5% in the case of Base Rate advances and from 2.5% to 3.5% in the case of Term SOFR advances, depending on our debt to recurring revenue leverage ratio. During the final two years of the Credit Agreement, the interest rate margin ranges from 0.5% to 2.5% in the case of Base Rate advances and from 1.5% to 3.5% in the case of Term SOFR advances, depending on our debt to consolidated adjusted EBITDA (as defined in the Credit Agreement) leverage ratio. Additionally, the Credit Agreement contains customary representations, warranties and covenants, including covenants by us limiting additional indebtedness, guaranties, liens, fundamental changes, mergers and consolidations, dispositions of assets, investments, paying dividends on capital stock or redeeming, repurchasing or retiring capital stock, or prepaying certain junior indebtedness and preferred stock, certain corporate changes, and transactions with affiliates. The Credit Agreement also provides for events of default customary for term loans of this type, including but not limited to non-payment, breaches or defaults in the performance of covenants, insolvency, bankruptcy, and the occurrence of a material adverse effect on us. The new Credit Agreement replaces our existing Line of Credit that was in place as of September 30, 2022.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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+ Details

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities
Net loss	$ (116,503,000)	$ (62,796,000)
Adjustments to reconcile net loss to net cash used by operating activities
Stock-based compensation	27,427,000	17,692,000
Depreciation and amortization	5,332,000	4,071,000
Bad debt expense	561,000	61,000
Loss on disposal of property and equipment	0	78,000
Change in fair value of available-for-sale securities	0	(31,000)
Deferred income taxes	(1,549,000)	(522,000)
Changes in assets and liabilities
Accounts receivable	(9,114,000)	(10,005,000)
Prepaid expenses and other assets	(6,723,000)	2,734,000
Deferred commissions	(5,715,000)	(11,570,000)
Accounts payable and accrued expenses	(3,654,000)	10,797,000
Accrued compensation and related benefits	1,634,000	5,782,000
Other current and non-current liabilities	(383,000)	2,858,000
Deferred revenue	15,414,000	6,829,000
Operating lease liabilities	(685,000)	(476,000)
Net cash used by operating activities	(93,958,000)	(34,498,000)
Cash flows from investing activities
Purchases of investments	(31,214,000)	0
Proceeds from investments	57,417,000	84,592,000
Payments for acquisitions, net of cash acquired	0	(30,729,000)
Purchases of property and equipment	(5,861,000)	(2,473,000)
Net cash provided by investing activities	20,342,000	51,390,000
Cash flows from financing activities
Proceeds from exercise of common stock options	25,205,000	2,375,000
Net cash provided by financing activities	25,205,000	2,375,000
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash	(1,694,000)	(1,367,000)
Net (decrease) increase in cash, cash equivalents, and restricted cash	(50,105,000)	17,900,000
Cash, cash equivalents, and restricted cash at beginning of period	103,960,000	112,462,000
Cash, cash equivalents, and restricted cash at end of period	53,855,000	130,362,000
Supplemental disclosure of cash flow information
Cash paid for interest	243,000	240,000
Cash paid for income taxes	749,000	1,196,000
Supplemental disclosure of non-cash investing and financing activities
Accrued capital expenditures	$ 317,000	$ 0

Accrued Expenses

9 Months Ended

Sep. 30, 2022

Payables and Accruals [Abstract]

Accrued Expenses

8. Accrued Expenses

Accrued expenses consisted of the following as of September 30, 2022 and December 31, 2021 (in thousands):


	September 30, 2022		December 31, 2021
Hosting costs	$	2,917	$	1,995
Legal costs	966		5,511
Marketing and tradeshow expenses	744		1,167
Third party license fees	1,821		1,066
Contract labor costs	1,453		891
Reimbursable employee expenses	1,246		870
Taxes payable	542		550
Audit and tax expenses	539		439
Capital expenditures	—		379
Other accrued expenses	2,482		2,615
Total	$	12,710	$	15,483

Business Combinations (Tables)

9 Months Ended

Sep. 30, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of Business Acquisitions

As of the acquisition date, the purchase price was assigned to the acquired assets and assumed liabilities as follows (in thousands):


Cash acquired	$	256
Other current assets	106
Property and equipment	59
Developed technology	5,974
Customer relationships	750
Goodwill	24,521
Other non-current assets	27
Total assets acquired	31,693
Current liabilities	638
Non-current liabilities	38
Total liabilities assumed	676
Net assets acquired	$	31,017

Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2022

Share-Based Payment Arrangement [Abstract]

Schedule of Assumptions Used to Estimate the Fair Value of Stock Options Granted

The following table summarizes the assumptions used to estimate the fair value of the 2022 CEO stock option grant:

Three Months Ended September 30,

Nine Months Ended September 30,

2022

2021

2022

2021

Risk-free interest rate

3.01%

Expected term (in years)

Expected volatility

70%

Expected dividend yield

—%

* Not applicable because no stock options were granted during the period.

** Each Vesting Price Threshold for the 2022 CEO grant has a unique expected term ranging from 3.4 to 4.1 years.

Summary of the Stock Option Activity

The following table summarizes stock option activity for the nine months ended September 30, 2022:


	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2021	2,953,356	$	15.16	4.0	$	147,812
Granted	700,000	50.63
Exercised	(902,392)	27.93			31,790
Expired	(6,800)	3.65
Forfeited	(10,280)	12.28
Outstanding at September 30, 2022	2,733,884	$	20.07	5.3	$	63,622

Exercisable at September 30, 2022	2,033,684	$	9.55	3.8	$	63,618

Schedule of Restricted Stock Unit Activity

The following table summarizes RSU activity for the nine months ended September 30, 2022:


	Number of Shares	Weighted Average Grant Date Fair Value
Non-vested and outstanding at December 31, 2021	1,209,529	$	70.99
Granted	534,213	52.93
Vested	(166,836)	74.30
Forfeited	(157,732)	73.54
Non-vested and outstanding at September 30, 2022	1,419,174	$	63.52

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 and nine months ended September 30, 2022 and 2021 (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
RSUs	$	9,845	$	4,997	$	25,378	$	13,405
Stock options	1,272		47		1,517		3,820
Common stock awards to the Board of Directors	219		156		532		467
Total stock-based compensation expense	$	11,336	$	5,200	$	27,427	$	17,692

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

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 consolidated statements of operations for the three and nine months ended September 30, 2022 and 2021 (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Cost of revenue
Subscriptions	$	284	$	381	$	712	$	973
Professional services	1,401		777		3,788		2,283
Operating expenses
Sales and marketing	2,667		1,448		6,721		3,753
Research and development	3,454		1,263		8,831		3,347
General and administrative	3,530		1,331		7,375		7,336
Total stock-based compensation expense	$	11,336	$	5,200	$	27,427	$	17,692

Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 0.4	$ 0.3	$ 1.1	$ 0.5
Developed technology
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, useful life			3 years 8 months 12 days
Customer relationships - Non-Robotic Process Automation (“RPA”)
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, useful life			8 years 8 months 12 days
Customer relationships - RPA
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, useful life			7 years 3 months 18 days

Investments and Fair Value Measurements - Amortized Cost Basis and Fair Value of Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Cost Basis
Due in one year or less	$ 41,191
Due after one year through five years	0
Cost Basis	41,191	$ 105,546
Fair Value
Due in one year or less	41,034
Due after one year through five years	0
Market Value	$ 41,034	$ 105,524

Property and Equipment, net - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 1,400,000	$ 1,200,000	$ 4,200,000	$ 3,600,000
Disposal of property plant and equipment	0	0	0	0
Loss on disposal of property and equipment	$ 0	$ 100,000	$ 0	$ 78,000

Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Hosting costs	$ 2,917	$ 1,995
Legal costs	966	5,511
Marketing and tradeshow expenses	744	1,167
Third party license fees	1,821	1,066
Contract labor costs	1,453	891
Reimbursable employee expenses	1,246	870
Taxes payable	542	550
Audit and tax expenses	539	439
Capital expenditures	0	379
Other accrued expenses	2,482	2,615
Total	$ 12,710	$ 15,483

Stock-Based Compensation - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 11,336	$ 5,200	$ 27,427	$ 17,692
RSUs
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	9,845	4,997	25,378	13,405
Stock options
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	1,272	47	1,517	3,820
Common stock awards to the Board of Directors
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 219	$ 156	$ 532	$ 467

Accounting Policies - Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Cash and cash equivalents	$ 51,802	$ 100,796	$ 127,122	$ 112,462
Restricted cash, current	2,053	791	0	0
Restricted cash, net of current portion	0	2,373	3,240	0
Total cash, cash equivalents, and restricted cash	$ 53,855	$ 103,960	$ 130,362	$ 112,462

Basic and Diluted Loss per Share (Details) - shares	3 Months Ended		9 Months Ended
Basic and Diluted Loss per Share (Details) - shares	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities outstanding (in shares)	2,733,884	3,039,860,000	2,733,884	3,039,860,000
Non-vested restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities outstanding (in shares)	1,419,174	1,235,880,000	1,419,174	1,235,880,000

Business Combinations - Additional Information (Details) - Lana Labs GMBH - USD ($) $ in Millions	1 Months Ended	3 Months Ended
	Aug. 31, 2021	Mar. 31, 2022
Business Combination Segment Allocation [Line Items]
Percentage of interests acquired	100.00%
Acquisition price	$ 30.7
Business combination, provisional information, initial accounting incomplete, adjustment, intangibles		$ 0.8
Contract with customer, liability, increase (decrease) for contract acquired in business combination		0.3
Business combination, provisional information, initial accounting incomplete, adjustment, deferred taxes		$ 0.1

Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Leases [Abstract]
Right-of-use assets for operating leases	$ 31,841	$ 27,897
Operating lease liabilities, current	7,434	8,110
Operating lease liabilities, net of current portion	52,710	48,784
Total operating lease liabilities	$ 60,144	$ 56,894
Weighted average remaining lease term (in years)	9 years	9 years 6 months
Weighted average discount rate	9.50%	9.50%

Commitments and Contingencies (Details) - USD ($)				3 Months Ended	9 Months Ended
Commitments and Contingencies (Details) - USD ($)	Sep. 16, 2022	Sep. 15, 2022	May 10, 2022	Sep. 30, 2022	Sep. 30, 2022	Jul. 31, 2021
Loss Contingencies [Line Items]
Purchase obligation						$ 131,000,000
Purchase obligation, year one						22,000,000
Purchase obligation, year two						25,000,000
Purchase obligation, year three						28,000,000
Purchase obligation, year four						28,000,000
Purchase obligation, year five						$ 28,000,000
Payments for purchase obligation				$ 9,000,000	$ 24,800,000
Pegasystems Litigation \| Misappropriation of Trade Secrets
Loss Contingencies [Line Items]
Damages awarded			$ 2,036,000,000.000
Pegasystems Litigation \| Violation of Virginia Computer Crimes Act
Loss Contingencies [Line Items]
Damages awarded			$ 1
Pegasystems Litigation \| Attorney's Fees Associated
Loss Contingencies [Line Items]
Damages awarded	$ 23,600,000
Pegasystems Litigation \| Statutory Post Judgement Interest On Judgmental
Loss Contingencies [Line Items]
Damages awarded	$ 122,000,000
Interest on damages awarded (as a percentage)	6.00%
Youyong Zou Litigation
Loss Contingencies [Line Items]
Amount awarded in settlement		$ 5,000

Revenue (Tables)

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Summary of Revenue by Services

The following table summarizes revenue recorded during the three and nine months ended September 30, 2022 and 2021 (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Cloud subscriptions	$	60,621	$	46,699	$	171,083	$	128,238
Term license subscriptions	19,773		15,114		58,543		44,290
Maintenance and support	6,126		5,427		17,282		15,424
Total subscriptions	86,520		67,240		246,908		187,952
Professional services	31,356		25,177		95,297		76,319
Total revenue	$	117,876	$	92,417	$	342,205	$	264,271

Accrued Expenses (Tables)

9 Months Ended

Sep. 30, 2022

Payables and Accruals [Abstract]

Schedule of Accrued Expenses

Accrued expenses consisted of the following as of September 30, 2022 and December 31, 2021 (in thousands):


	September 30, 2022		December 31, 2021
Hosting costs	$	2,917	$	1,995
Legal costs	966		5,511
Marketing and tradeshow expenses	744		1,167
Third party license fees	1,821		1,066
Contract labor costs	1,453		891
Reimbursable employee expenses	1,246		870
Taxes payable	542		550
Audit and tax expenses	539		439
Capital expenditures	—		379
Other accrued expenses	2,482		2,615
Total	$	12,710	$	15,483

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	13. Commitments and Contingencies Minimum Purchase Commitments In July 2021, we executed a non-cancellable cloud hosting arrangement with Amazon Web Services (“AWS”) that contains provisions for minimum purchase commitments. Specifically, purchase commitments under the agreement total $131.0 million over five years, including $22.0 million in the first year, $25.0 million in the second year, and $28.0 million in each of the third, fourth, and fifth years. The timing of payments under the agreement may vary, and the total amount of payments may exceed the minimum depending on the volume of services utilized. Spending under this agreement for the three and nine months ended September 30, 2022 totaled $9.0 million and $24.8 million, respectively. Exclusive of the AWS contract, we have other non-cancellable agreements for subscription software products that contain provisions stipulating minimum purchase commitments. However, the annual purchase commitments under these contracts are, individually and in the aggregate, immaterial to our condensed consolidated financial statements. Pegasystems Litigation On May 29, 2020, we filed a civil complaint against Pegasystems, Inc. (“Pegasystems”) and Youyong Zou, a Virginia resident, in the Circuit Court for Fairfax County, Virginia. Appian Corp v. Pegasystems Inc. & Youyong Zou, No. 2020-07216 (Fairfax Cty. Ct.). On May 10, 2022, we announced the jury awarded us $2.036 billion in damages for misappropriation of our trade secrets and $1 in damages for violating the Virginia Computer Crimes Act. Pegasystems filed several post-trial motions seeking relief in the form of reducing the damages award or setting aside the jury’s verdict and either granting a new trial or entering judgment in Pegasystems’ favor. All of these motions were denied, and final judgment was entered by the Court on September 15, 2022. The final judgment reaffirmed the $2.036 billion in damages and also ordered Pegasystems to pay Appian $23.6 million in attorney's fees associated with the case as well as statutory post-judgment interest on the judgment at an annual rate of 6%, or approximately $122.0 million per year. Defendant Youyong Zou has satisfied the judgment of $5,000 (plus interest) against him in lieu of appealing that judgment. On September 15, 2022, Pegasystems filed a notice of appeal. Pegasystems is not required to pay us the judgment, attorney’s fees, or post-judgment interest until all appeals are exhausted. We cannot predict the outcome of any appeals or the time it will take to resolve them. Consistent with other judgments, there is no guarantee we will be able to collect all or any portion of the judgment. Consequently, we will not record the award in our condensed consolidated financial statements until all contingencies are resolved and we collect on the judgment. Other Legal Matters From time to time, we are subject to legal, regulatory, and other proceedings and claims that arise in the ordinary course of business. Other than as disclosed elsewhere in this Quarterly Report, we are not presently a party to any legal proceedings that, if determined adversely to us, would individually or taken together have a material adverse effect on our business, operating results, financial condition, or cash flows. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources, and other factors.

Business Combinations

9 Months Ended

Sep. 30, 2022

Business Combination and Asset Acquisition [Abstract]

Business Combinations

5. Business Combinations

In August 2021, we acquired 100% of the outstanding common stock of Lana Labs, a developer of process mining software, for approximately $30.7 million, net of cash acquired and debt. The acquisition was made due to the attractive nature of the product offerings of Lana Labs and in furtherance of our objective to enhance our automation platform. The transaction was financed through available cash on hand.

The allocation of the purchase price was based upon the fair value 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	$	256
Other current assets	106
Property and equipment	59
Developed technology	5,974
Customer relationships	750
Goodwill	24,521
Other non-current assets	27
Total assets acquired	31,693
Current liabilities	638
Non-current liabilities	38
Total liabilities assumed	676
Net assets acquired	$	31,017

There were no changes to our reportable segments as a result of the acquisition, and acquisition costs incurred in relation to the transaction were immaterial. We do not expect the purchase price allocated to goodwill and intangible assets to be deductible for tax purposes.

During the third quarter of 2022, we finalized the fair value of the assets acquired and liabilities assumed in the acquisition, and the amounts presented above are now final. Measurement period adjustments, recorded during the first quarter of 2022, included a $0.8 million adjustment to developed technology and goodwill related to an update to the discount rate utilized in our valuation of intangibles, a $0.3 million increase in deferred revenue stemming from our early adoption of new accounting guidance surrounding deferred revenue recognized pursuant to a business combination, a $0.1 million deferred tax adjustment,

and an immaterial adjustment to working capital. No additional measurement period adjustments were recognized for the nine months ended September 30, 2022.

Investments and Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Schedule of Components of Investments

The components of our investments as of September 30, 2022 are as follows (in thousands):


	As of September 30, 2022
	Fair Value Measurement							Balance Sheet Classification
	Fair Value Level	Cost Basis		Unrealized Gains (Losses)		Market Value		Cash and Cash Equivalents		Short-term Investments and Marketable Securities
Money market fund	Level 1	$	149	$	—	$	149	$	149	$	—
U.S. Treasuries	Level 1	17,985		(70)		17,915		—		17,915
Commercial paper	Level 2	13,134		—		13,134		—		13,134
Corporate bonds	Level 2	9,923		(87)		9,836		—		9,836

Total investments		$	41,191	$	(157)	$	41,034	$	149	$	40,885

At December 31, 2021, our investments consisted of the following (in thousands):


	As of December 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 and Marketable Securities		Long-term Investments
Money market fund	Level 1	$	38,301	$	—	$	38,301	$	38,301	$	—	$	—
U.S. Treasury bonds	Level 1	8,171		—		8,171		—		8,171		—
Commercial paper	Level 2	23,312		—		23,312		—		23,312		—
Corporate bonds	Level 2	20,107		(14)		20,093		—		8,049		12,044
Asset-backed securities	Level 2	15,655		(8)		15,647		—		15,647		—
Total investments		$	105,546	$	(22)	$	105,524	$	38,301	$	55,179	$	12,044

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

The amortized cost basis and fair value of debt securities as of September 30, 2022, by contractual maturity, are as follows (in thousands):


	As of September 30, 2022
	Cost Basis		Fair Value
Due in one year or less	$	41,191	$	41,034
Due after one year through five years	—		—
Total investments	$	41,191	$	41,034

Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Schedule of Cash, Cash Equivalents, and Restricted Cash

The following table presents a reconciliation of cash, cash equivalents, and restricted cash as presented in the consolidated statements of cash flows (in thousands):


	As of
	September 30, 2022		December 31, 2021		September 30, 2021		December 31, 2020
Cash and cash equivalents	$	51,802	$	100,796	$	127,122	$	112,462
Restricted cash, current	2,053		791		—		—
Restricted cash, net of current portion	—		2,373		3,240		—
Total cash, cash equivalents, and restricted cash	$	53,855	$	103,960	$	130,362	$	112,462

Schedule of 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.

Leases (Tables)

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

Schedule of Components of Lease Expense

The following table sets forth the components of lease expense for the three and nine months ended September 30, 2022 and 2021 (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Operating lease cost	$	1,708	$	1,659	$	4,968	$	4,984
Short-term lease cost	170		23		334		77
Variable lease cost	952		947		2,878		1,744
Total	$	2,830	$	2,629	$	8,180	$	6,805

Schedule of Supplemental Balance Sheet Information

Supplemental balance sheet information related to operating leases as of September 30, 2022 and December 31, 2021 was as follows (in thousands, except for lease term and discount rate):


	As of
	September 30, 2022			December 31, 2021
Right-of-use assets for operating leases	$	31,841		$	27,897

Operating lease liabilities, current	$	7,434		$	8,110
Operating lease liabilities, net of current portion	52,710			48,784
Total operating lease liabilities	$	60,144		$	56,894

Weighted average remaining lease term (in years)	9.0			9.5

Weighted average discount rate	9.5		%	9.5		%

Schedule of Supplemental Cash Flow Information

Supplemental cash flow and expense information related to operating leases for the three and nine months ended September 30, 2022 and 2021 was as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Operating cash outflows for operating leases	$	2,099	$	1,792	$	6,258	$	5,295

Amortization of operating lease ROU assets	364		685		995		1,380
Interest expense on operating lease liabilities	1,332		521		3,957		1,448

Schedule of Maturities of Operating Lease Liabilities

A summary of our future minimum lease commitments under non-cancellable leases as of September 30, 2022 is as follows (in thousands):


	Operating Leases
2022 (excluding the nine months ended September 30, 2022)	$	2,040
2023	8,367
2024	9,464
2025	10,202
2026	10,603
2027	10,892
Thereafter	44,762
Total lease payments	96,330
Less: imputed interest	(36,186)
Total	$	60,144

Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2022	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021	May 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)		0	0	700,000
Granted (in usd per share)				$ 50.63
Expected term (in years)				5 years 3 months 18 days		4 years
Vested in period, value				$ 0.9	$ 10.7
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		$ 68.2		$ 68.2
Weighted average remaining vesting period (in years)				1 year 8 months 12 days
2017 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available to be issued (in shares)		2,851,988		2,851,988
2017 Equity Incentive Plan \| Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	700,000
Granted (in usd per share)	$ 50.63
Compensation cost related to nonvested stock options not yet recognized		$ 17.2		$ 17.2
2017 Equity Incentive Plan \| Chief Executive Officer \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	3 years 4 months 24 days
2017 Equity Incentive Plan \| Chief Executive Officer \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	4 years 1 month 6 days
2017 Equity Incentive Plan \| Chief Executive Officer \| Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Value of award at grant date	$ 18.8
Unrecognized compensation cost related to nonvested stock option recognized over weighted average period (in years)				3 years 4 months 24 days
2017 Equity Incentive Plan \| Chief Executive Officer \| Stock options \| Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights percentage	25.00%
Vesting price threshold (in usd per share)	$ 175
2017 Equity Incentive Plan \| Chief Executive Officer \| Stock options \| Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights percentage	25.00%
Vesting price threshold (in usd per share)	$ 200,000,000
2017 Equity Incentive Plan \| Chief Executive Officer \| Stock options \| Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights percentage	25.00%
Vesting price threshold (in usd per share)	$ 225,000,000
2017 Equity Incentive Plan \| Chief Executive Officer \| Stock options \| Tranche Four
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights percentage	25.00%
Vesting price threshold (in usd per share)	$ 250,000,000
2017 Equity Incentive Plan \| Chief Executive Officer \| Stock options \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)				4 years 1 month 6 days
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)		7,195,049		7,195,049			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

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Taxes [Line Items]
Effective tax rate	(0.60%)	(0.30%)	0.80%	(0.70%)
Discrete tax benefit related to release of valuation allowance			$ 1.1
Net unrecognized tax benefits which would impact effective tax rate if recognized	$ 3.1		$ 3.1
Minimum \| Subsidiaries
Income Taxes [Line Items]
Effective tax rate			0.00%
Maximum \| Subsidiaries
Income Taxes [Line Items]
Effective tax rate			35.00%

Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

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 reporting. 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, 2021, filed with the Securities and Exchange Commission (the “SEC”) on February 17, 2022.

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, but are not limited to, revenue recognition, income taxes and the related valuation allowance, leases, costs to obtain a contract with a customer, the valuation of financial instruments, and stock-based compensation.

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 and Cost of Revenue

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, amortization of developed technology, 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 providing services related to significant professional services agreements sold on a standalone basis may cause significant fluctuations in our quarterly financial results.

Revenue Recognition

We generate subscriptions revenue primarily through the sale of cloud subscriptions bundled with maintenance and support and hosting services as well as term license subscriptions bundled with maintenance and support. We generate professional services revenue from fees for our consulting services, including application development and deployment assistance as well as training related to our platform.

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 cloud subscriptions, maintenance and support, and professional services are delivered over time.

Subscriptions Revenue

Subscriptions revenue is primarily related to (1) cloud 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 or through 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.

Cloud 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 subscription revenue is derived from customers with on-premises installations of our platform. The majority of our contracts are 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 term 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 services contracts are 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 is the total amount of consideration we expect to receive in exchange for the service offerings in a contract and may include both fixed and variable components. 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 and nine months ended September 30, 2022 and 2021 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.Cloud subscriptions - Given the highly variable selling price of our cloud subscriptions, we establish the SSP of our cloud 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 cloud 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 and training services - The SSP of consulting and training services is established based on the observable pricing of standalone sales within each geographic region where the services are sold.

Contract Balances

Concentration of Credit and Customer Risk

Our financial instruments exposed to concentration of credit and customer risk consist primarily of cash, cash equivalents, restricted cash, accounts receivable, and our short- and long-term investments. Deposits held with banks may exceed the amount of insurance provided on such deposits; however, we believe the financial institutions holding our cash deposits are financially sound and, accordingly, minimal credit risk exists with respect to these balances.

With regard to our customers, credit evaluation and account monitoring procedures are used to minimize the risk of loss.

Cash , Cash Equivalents, and Restricted Cash

Cash, Cash Equivalents, and Restricted Cash

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. Restricted cash consists of cash designated to settle an escrow liability stemming from a holdback agreement enacted pursuant to our acquisition of Lana Labs GmbH (“Lana Labs”). We paid 25% of the balance on September 28, 2022, and the remaining 75% of the balance is due on August 11, 2023.

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

We capitalize costs of obtaining a contract with a customer, which consists of sales commissions paid to our sales team, that are incremental costs to obtaining customer contracts. These costs are recorded as deferred commissions in the 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 team. 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 deferred commission is recorded to sales and marketing expense in our consolidated statements of operations.

Property and Equipment

Property and equipment are stated at cost less accumulated depreciation. 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.

Stock-Based Compensation Expense

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 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

Adopted

We did not adopt any new accounting guidance in 2022 that had a material impact on our condensed consolidated financial statements or disclosures.

Not Yet Adopted

There is no pending accounting guidance that we expect to have a material impact on our condensed consolidated financial statements or disclosures.

Fair Value Measurements

U.S. GAAP establishes 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 and which require us to develop our own estimates and assumptions reflecting those that a market participant would use.

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 September 30, 2022 and December 31, 2021.

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; and

•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).

Investments and Fair Value Measurements - Components of Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Cost Basis	$ 41,191	$ 105,546
Unrealized Gains (Losses)	(157)	(22)
Market Value	41,034	105,524
Cash and Cash Equivalents
Debt Securities, Available-for-sale [Line Items]
Market Value	149	38,301
Short-term Investments and Marketable Securities
Debt Securities, Available-for-sale [Line Items]
Market Value	40,885	55,179
Long-term Investments
Debt Securities, Available-for-sale [Line Items]
Market Value		12,044
Level 1 \| Money market fund
Debt Securities, Available-for-sale [Line Items]
Cost Basis	149	38,301
Unrealized Gains (Losses)	0	0
Market Value	149	38,301
Level 1 \| Money market fund \| Cash and Cash Equivalents
Debt Securities, Available-for-sale [Line Items]
Market Value	149	38,301
Level 1 \| Money market fund \| Short-term Investments and Marketable Securities
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
Level 1 \| U.S. Treasuries
Debt Securities, Available-for-sale [Line Items]
Cost Basis	17,985
Unrealized Gains (Losses)	(70)
Market Value	17,915
Level 1 \| U.S. Treasuries \| Cash and Cash Equivalents
Debt Securities, Available-for-sale [Line Items]
Market Value	0
Level 1 \| U.S. Treasuries \| Short-term Investments and Marketable Securities
Debt Securities, Available-for-sale [Line Items]
Market Value	17,915
Level 1 \| U.S. Treasury bonds
Debt Securities, Available-for-sale [Line Items]
Cost Basis		8,171
Unrealized Gains (Losses)		0
Market Value		8,171
Level 1 \| U.S. Treasury bonds \| Cash and Cash Equivalents
Debt Securities, Available-for-sale [Line Items]
Market Value		0
Level 1 \| U.S. Treasury bonds \| Short-term Investments and Marketable Securities
Debt Securities, Available-for-sale [Line Items]
Market Value		8,171
Level 1 \| U.S. Treasury bonds \| Long-term Investments
Debt Securities, Available-for-sale [Line Items]
Market Value		0
Level 2 \| Commercial paper
Debt Securities, Available-for-sale [Line Items]
Cost Basis	13,134	23,312
Unrealized Gains (Losses)	0	0
Market Value	13,134	23,312
Level 2 \| Commercial paper \| Cash and Cash Equivalents
Debt Securities, Available-for-sale [Line Items]
Market Value	0	0
Level 2 \| Commercial paper \| Short-term Investments and Marketable Securities
Debt Securities, Available-for-sale [Line Items]
Market Value	13,134	23,312
Level 2 \| Commercial paper \| Long-term Investments
Debt Securities, Available-for-sale [Line Items]
Market Value		0
Level 2 \| Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Cost Basis	9,923	20,107
Unrealized Gains (Losses)	(87)	(14)
Market Value	9,836	20,093
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 and Marketable Securities
Debt Securities, Available-for-sale [Line Items]
Market Value	$ 9,836	8,049
Level 2 \| Corporate bonds \| Long-term Investments
Debt Securities, Available-for-sale [Line Items]
Market Value		12,044
Level 2 \| Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Cost Basis		15,655
Unrealized Gains (Losses)		(8)
Market Value		15,647
Level 2 \| Asset-backed securities \| Cash and Cash Equivalents
Debt Securities, Available-for-sale [Line Items]
Market Value		0
Level 2 \| Asset-backed securities \| Short-term Investments and Marketable Securities
Debt Securities, Available-for-sale [Line Items]
Market Value		15,647
Level 2 \| Asset-backed securities \| Long-term Investments
Debt Securities, Available-for-sale [Line Items]
Market Value		$ 0

Basic and Diluted Loss per Share

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Basic and Diluted Loss per Share

12. Basic and Diluted Loss per Share

Basic net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding during the reporting period. Diluted loss per share is computed similar to basic, except the weighted average number of common shares outstanding are increased to include additional outstanding shares from the assumed exercise of stock options and vesting of RSUs, if dilutive. The dilutive effect, if any, of convertible shares is calculated using the treasury stock method. As we reported net losses for all periods presented, all outstanding shares would be considered antidilutive if they were to be assumed as vested or exercised.

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


	Three and Nine Months Ended September 30,
	2022	2021
Stock options	2,733,884	3,039,860
Non-vested restricted stock units	1,419,174	1,235,880

Property and Equipment, net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 56,881	$ 51,019
Less: accumulated depreciation	(18,189)	(14,106)
Property and equipment, net	38,692	36,913
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	43,308	41,005
Office furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	3,224	2,536
Computer hardware
Property, Plant and Equipment [Line Items]
Property and equipment, gross	8,761	6,001
Computer software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,353	1,353
Equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 235	$ 124

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents	$ 51,802	$ 100,796
Short-term investments and marketable securities	40,885	55,179
Accounts receivable, net of allowance of $1,901 and $1,400, respectively	143,385	130,049
Deferred commissions, current	27,874	24,668
Prepaid expenses and other current assets	31,976	26,781
Restricted cash, current	2,053	791
Total current assets	297,975	338,264
Property and equipment, net of accumulated depreciation of $18,189 and $14,106, respectively	38,692	36,913
Long-term investments	0	12,044
Goodwill	24,045	27,795
Intangible assets, net of accumulated amortization of $2,131 and $1,260, respectively	5,139	7,144
Right-of-use assets for operating leases	31,841	27,897
Deferred commissions, net of current portion	51,526	49,017
Deferred tax assets	2,518	1,025
Restricted cash, net of current portion	0	2,373
Other assets	2,824	2,047
Total assets	454,560	504,519
Current liabilities
Accounts payable	5,082	5,766
Accrued expenses	12,710	15,483
Accrued compensation and related benefits	35,408	35,126
Deferred revenue, current	161,154	150,169
Operating lease liabilities, current	7,434	8,110
Other current liabilities	2,603	1,067
Total current liabilities	224,391	215,721
Operating lease liabilities, net of current portion	52,710	48,784
Deferred revenue, net of current portion	3,408	2,430
Deferred tax liabilities	153	209
Other non-current liabilities	956	3,458
Total liabilities	281,618	270,602
Stockholders’ equity
Additional paid-in capital	549,760	497,128
Accumulated other comprehensive loss	(2,790)	(5,687)
Accumulated deficit	(374,035)	(257,531)
Total stockholders’ equity	172,942	233,917
Total liabilities and stockholders’ equity	454,560	504,519
Class A Common Stock
Stockholders’ equity
Common stock	4	4
Class B Common Stock
Stockholders’ equity
Common stock	$ 3	$ 3

Property and Equipment, net

9 Months Ended

Sep. 30, 2022

Property, Plant and Equipment [Abstract]

Property and Equipment, net

7. Property and Equipment, net

Property and equipment, net consisted of the following as of September 30, 2022 and December 31, 2021 (in thousands):


	September 30, 2022		December 31, 2021
Leasehold improvements	$	43,308	$	41,005
Office furniture and fixtures	3,224		2,536
Computer hardware	8,761		6,001
Computer software	1,353		1,353
Equipment	235		124
Property and equipment, gross	56,881		51,019
Less: accumulated depreciation	(18,189)		(14,106)
Property and equipment, net	$	38,692	$	36,913

Depreciation expense totaled $1.4 million and $4.2 million for the three and nine months ended September 30, 2022, respectively. Depreciation expense totaled $1.2 million and $3.6 million for the three and nine months ended September 30, 2021, respectively. We had no disposals or retirements and recorded no gains or losses on disposal during each of the three and nine months ended September 30, 2022. We recorded $0.1 million in losses on disposal for the three and nine months ended September 30, 2021.

Stock-Based Compensation - Schedule of Restricted Stock Unit Activity (Details) - Non-vested restricted stock units	9 Months Ended
	Sep. 30, 2022 $ / shares shares
Number of Shares
Non-vested outstanding at beginning of period (in shares) \| shares	1,209,529
Granted (in shares) \| shares	534,213
Vested (in shares) \| shares	(166,836)
Forfeited (in shares) \| shares	(157,732)
Non-vested outstanding at end of period (in shares) \| shares	1,419,174
Weighted Average Grant Date Fair Value
Non-vested outstanding at beginning of period (in usd per share) \| $ / shares	$ 70.99
Granted (in usd per share) \| $ / shares	52.93
Vested (in usd per share) \| $ / shares	74.30
Forfeited (in usd per share) \| $ / shares	73.54
Non-vested outstanding at end of period (in usd per share) \| $ / shares	$ 63.52

Investments and Fair Value Measurements

9 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Investments and Fair Value Measurements

15. Investments and Fair Value Measurements

Fair Value Measurements

•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 and which require us to develop our own estimates and assumptions reflecting those that a market participant would use.

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; and

•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 September 30, 2022 and December 31, 2021 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 September 30, 2022 are as follows (in thousands):


	As of September 30, 2022
	Fair Value Measurement							Balance Sheet Classification
	Fair Value Level	Cost Basis		Unrealized Gains (Losses)		Market Value		Cash and Cash Equivalents		Short-term Investments and Marketable Securities
Money market fund	Level 1	$	149	$	—	$	149	$	149	$	—
U.S. Treasuries	Level 1	17,985		(70)		17,915		—		17,915
Commercial paper	Level 2	13,134		—		13,134		—		13,134
Corporate bonds	Level 2	9,923		(87)		9,836		—		9,836

Total investments		$	41,191	$	(157)	$	41,034	$	149	$	40,885

At December 31, 2021, our investments consisted of the following (in thousands):


	As of December 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 and Marketable Securities		Long-term Investments
Money market fund	Level 1	$	38,301	$	—	$	38,301	$	38,301	$	—	$	—
U.S. Treasury bonds	Level 1	8,171		—		8,171		—		8,171		—
Commercial paper	Level 2	23,312		—		23,312		—		23,312		—
Corporate bonds	Level 2	20,107		(14)		20,093		—		8,049		12,044
Asset-backed securities	Level 2	15,655		(8)		15,647		—		15,647		—
Total investments		$	105,546	$	(22)	$	105,524	$	38,301	$	55,179	$	12,044

There were no Level 3 assets held at any point during the three and nine months ended September 30, 2022 and 2021. Additionally, there were no transfers between Levels 1 and 2 during the three and nine months ended September 30, 2022 and 2021.

The amortized cost basis and fair value of debt securities as of September 30, 2022, by contractual maturity, are as follows (in thousands):


	As of September 30, 2022
	Cost Basis		Fair Value
Due in one year or less	$	41,191	$	41,034
Due after one year through five years	—		—
Total investments	$	41,191	$	41,034

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

Segment and Geographic Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
Segment and Geographic Information (Details) $ in Thousands	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) segment	Sep. 30, 2021 USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of operating segments \| segment			1
Number of reportable segments \| segment			1
Total revenue	$ 117,876	$ 92,417	$ 342,205	$ 264,271
Domestic
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	81,004	62,815	228,610	176,801
International
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 36,872	$ 29,602	$ 113,595	$ 87,470

- 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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI https://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Stock-Based Compensation - Summary of the Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Dec. 31, 2021
Number of Shares
Outstanding at beginning of period (in shares)			2,953,356
Granted (in shares)	0	0	700,000
Exercised (in shares)			(902,392)
Expired (in shares)			(6,800)
Forfeited (in shares)			(10,280)
Outstanding at ending of period (in shares)	2,733,884		2,733,884	2,953,356
Exercisable at end of period (in shares)	2,033,684		2,033,684
Weighted Average Exercise Price
Outstanding at beginning of period (in usd per share)			$ 15.16
Granted (in usd per share)			50.63
Exercised (in usd per share)			27.93
Expired (in usd per share)			3.65
Forfeited (in usd per share)			12.28
Outstanding at ending of period (in usd per share)	$ 20.07		20.07	$ 15.16
Exercisable at end of period (in usd per share)	$ 9.55		$ 9.55
Weighted Average Remaining Contractual Term (Years)
Outstanding (in years)			5 years 3 months 18 days	4 years
Exercisable at end of period (in years)			3 years 9 months 18 days
Aggregate Intrinsic Value (in thousands)
Outstanding	$ 63,622		$ 63,622	$ 147,812
Exercised			31,790
Exercisable at end of period	$ 63,618		$ 63,618

Debt (Details) - USD ($)	Nov. 03, 2022	Sep. 30, 2022
Line of Credit Facility [Line Items]
Outstanding letters of credit		$ 11,000,000
Secured Debt \| Term Loan Facility \| Subsequent Event
Line of Credit Facility [Line Items]
Debt term	5 years
Aggregate principal amount	$ 100,000,000
Secured Debt \| Term Loan Facility \| Subsequent Event \| Base Rate
Line of Credit Facility [Line Items]
Interest rate margin	0.50%
Line of Credit \| Subsequent Event \| Minimum \| Base Rate
Line of Credit Facility [Line Items]
Interest rate margin	1.50%
Line of Credit \| Subsequent Event \| Minimum \| Base Rate \| EBITDA
Line of Credit Facility [Line Items]
Interest rate margin	0.50%
Line of Credit \| Subsequent Event \| Minimum \| SOFR
Line of Credit Facility [Line Items]
Interest rate margin	2.50%
Line of Credit \| Subsequent Event \| Minimum \| SOFR \| EBITDA
Line of Credit Facility [Line Items]
Interest rate margin	1.50%
Line of Credit \| Subsequent Event \| Maximum \| Base Rate
Line of Credit Facility [Line Items]
Interest rate margin	2.50%
Line of Credit \| Subsequent Event \| Maximum \| Base Rate \| EBITDA
Line of Credit Facility [Line Items]
Interest rate margin	2.50%
Line of Credit \| Subsequent Event \| Maximum \| SOFR
Line of Credit Facility [Line Items]
Interest rate margin	3.50%
Line of Credit \| Subsequent Event \| Maximum \| SOFR \| EBITDA
Line of Credit Facility [Line Items]
Interest rate margin	3.50%
Revolving Credit Facility
Line of Credit Facility [Line Items]
Credit facility		20,000,000
Line of credit, outstanding borrowings		$ 0
Revolving Credit Facility \| Subsequent Event
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 50,000,000
Revolving Credit Facility \| Letter of Credit \| Subsequent Event
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	15,000,000
Revolving Credit Facility \| Swingline Sub-facility \| Subsequent Event
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 10,000,000

Goodwill and Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

Goodwill was comprised of the following as of September 30, 2022 and December 31, 2021 (in thousands):


	Carrying Amount
Balance as of December 31, 2020	$	4,862
Goodwill acquired	24,521
Foreign currency translation adjustments	(1,588)
Balance as of December 31, 2021	27,795
Goodwill acquired	—
Foreign currency translation adjustments	(3,750)
Balance as of September 30, 2022	$	24,045

Schedule of Finite-Lived Intangible Assets

Intangible assets, net consisted of the following as of September 30, 2022 and December 31, 2021 (in thousands):


	As of
	September 30, 2022		December 31, 2021
Developed technology	$	6,290	$	7,271
Customer relationships - Non-Robotic Process Automation (“RPA”)	754		872
Customer relationships - RPA	226		261
Intangible assets, gross	7,270		8,404
Less: accumulated amortization	(2,131)		(1,260)
Intangible assets, net	$	5,139	$	7,144

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The projected annual amortization expense related to amortizable intangible assets as of September 30, 2022 is as follows (in thousands):


	Projected Amortization
2022 (excluding the nine months ended September 30, 2022)	$	347
2023	1,342
2024	1,342
2025	1,068
2026	687
2027	84
Thereafter	269
Total projected amortization expense	$	5,139

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
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+ Details

Accounting Policies - Property and Equipment, Useful Life (Details)	9 Months Ended
	Sep. 30, 2022
Computer software
Summary Of Significant Accounting Policies [Line Items]
Property, plant and equipment, useful life (in years)	3 years
Computer hardware
Summary Of Significant Accounting Policies [Line Items]
Property, plant and equipment, useful life (in years)	3 years
Equipment
Summary Of Significant Accounting Policies [Line Items]
Property, plant and equipment, useful life (in years)	5 years
Office furniture and fixtures
Summary Of Significant Accounting Policies [Line Items]
Property, plant and equipment, useful life (in years)	10 years

Cover Page - shares	9 Months Ended
Cover Page - shares	Sep. 30, 2022	Oct. 31, 2022
Document and Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
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
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Class A Common Stock
Document and Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		41,049,803
Class B Common Stock
Document and Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		31,497,796

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenue
Total revenue	$ 117,876	$ 92,417	$ 342,205	$ 264,271
Cost of revenue
Total cost of revenue	33,760	26,507	98,076	75,871
Gross profit	84,116	65,910	244,129	188,400
Operating expenses
Sales and marketing	54,912	42,071	157,104	118,575
Research and development	37,623	26,510	101,401	71,062
General and administrative	29,357	20,226	90,014	56,726
Total operating expenses	121,892	88,807	348,519	246,363
Operating loss	(37,776)	(22,897)	(104,390)	(57,963)
Other non-operating expense
Other expense, net	5,876	2,329	12,815	4,141
Interest expense	89	72	222	233
Total other non-operating expense	5,965	2,401	13,037	4,374
Loss before income taxes	(43,741)	(25,298)	(117,427)	(62,337)
Income tax expense (benefit)	255	86	(924)	459
Net loss	$ (43,996)	$ (25,384)	$ (116,503)	$ (62,796)
Net loss per share:
Basic (in usd per share)	$ (0.61)	$ (0.36)	$ (1.61)	$ (0.89)
Diluted (in usd per share)	$ (0.61)	$ (0.36)	$ (1.61)	$ (0.89)
Weighted average common shares outstanding:
Basic (in shares)	72,503,000	71,119,000	72,372,000	70,936,000
Diluted (in shares)	72,503,000	71,119,000	72,372,000	70,936,000
Subscriptions
Revenue
Total revenue	$ 86,520	$ 67,240	$ 246,908	$ 187,952
Cost of revenue
Total cost of revenue	9,313	7,092	26,065	19,806
Professional services
Revenue
Total revenue	31,356	25,177	95,297	76,319
Cost of revenue
Total cost of revenue	$ 24,447	$ 19,415	$ 72,011	$ 56,065

Revenue - Revenue by Services (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 117,876	$ 92,417	$ 342,205	$ 264,271
Subscriptions
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	86,520	67,240	246,908	187,952
Cloud subscriptions
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	60,621	46,699	171,083	128,238
Term license subscriptions
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	19,773	15,114	58,543	44,290
Maintenance and support
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	6,126	5,427	17,282	15,424
Professional services
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 31,356	$ 25,177	$ 95,297	$ 76,319

- Definition

+ References

+ Details

Revenue

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue

3. Revenue

Revenue Recognition

The following table summarizes revenue recorded during the three and nine months ended September 30, 2022 and 2021 (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Cloud subscriptions	$	60,621	$	46,699	$	171,083	$	128,238
Term license subscriptions	19,773		15,114		58,543		44,290
Maintenance and support	6,126		5,427		17,282		15,424
Total subscriptions	86,520		67,240		246,908		187,952
Professional services	31,356		25,177		95,297		76,319
Total revenue	$	117,876	$	92,417	$	342,205	$	264,271

Performance Obligations and Timing of Revenue Recognition

Subscriptions Revenue

Cloud Subscriptions

Term License Subscriptions

Maintenance and Support

Professional Services Revenue

Consulting Services

Training Services

Significant Judgments and Estimates

Determining the Transaction Price

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”)

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 September 30, 2022 and December 31, 2021, contract assets of $15.3 million and $14.0 million, respectively, are included in the Prepaid expenses and other current assets and Other assets line items in our 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 nine months ended September 30, 2022, we recognized $134.4 million of revenue that was included in the deferred revenue balance as of December 31, 2021.

Transaction Price Allocated to the Remaining Performance Obligations

As of September 30, 2022, we had an aggregate transaction price of $319.9 million allocated to unsatisfied performance obligations. We expect to recognize $209.6 million of this balance as revenue over the next 12 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 https://asc.fasb.org/topic&trid=49130388

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+ Details

Accounting Policies

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Accounting Policies

2. Accounting Policies

Basis of Presentation

Use of Estimates

Principles of Consolidation

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

Professional Services

Concentration of Credit and Customer Risk

With regard to our customers, credit evaluation and account monitoring procedures are used to minimize the risk of loss. Revenue generated from government agencies represented 21.2% and 19.2% of our revenue for the three and nine months ended September 30, 2022, respectively, of which the top three U.S. federal government agencies generated 5.5% and 4.8% of our revenue for the three and nine months ended September 30, 2022, respectively. Additionally, 31.3% and 33.2% of our revenue during the three and nine months ended September 30, 2022, respectively, was generated from foreign customers. Revenue generated from government agencies represented 19.2% and 20.0% of our revenue for the three and nine months ended September 30, 2021, respectively, of which the top three U.S. federal government agencies generated 7.5% and 6.3% of our revenue for the three and nine months ended September 30, 2021, respectively. Additionally, 32.0% and 33.1% of our revenue during the three and nine months ended September 30, 2021, respectively, was generated from foreign customers.

Cash, Cash Equivalents, and Restricted Cash

The following table presents a reconciliation of cash, cash equivalents, and restricted cash as presented in the consolidated statements of cash flows (in thousands):


	As of
	September 30, 2022		December 31, 2021		September 30, 2021		December 31, 2020
Cash and cash equivalents	$	51,802	$	100,796	$	127,122	$	112,462
Restricted cash, current	2,053		791		—		—
Restricted cash, net of current portion	—		2,373		3,240		—
Total cash, cash equivalents, and restricted cash	$	53,855	$	103,960	$	130,362	$	112,462

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. The allowance for doubtful accounts totaled $1.9 million and $1.4 million as of September 30, 2022 and December 31, 2021.

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

Amortization associated with deferred commission is recorded to sales and marketing expense in our consolidated statements of operations. Commission expense was $9.5 million and $26.5 million for the three and nine months ended September 30, 2022, respectively. Commission expense was $8.2 million and $22.5 million for the three and nine months ended September 30, 2021, respectively.

Property and Equipment

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.

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

Refer to Note 11 for a detailed discussion on our policies related to stock-based compensation.

Recent Accounting Pronouncements

Adopted

We did not adopt any new accounting guidance in 2022 that had a material impact on our condensed consolidated financial statements or disclosures.

Not Yet Adopted

There is no pending accounting guidance that we expect to have a material impact on our condensed consolidated financial statements or disclosures.

Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Goodwill [Roll Forward]
Beginning balance	$ 27,795	$ 4,862
Goodwill acquired	0	24,521
Foreign currency translation adjustments	(3,750)	(1,588)
Ending balance	$ 24,045	$ 27,795

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Stock-Based Compensation

9 Months Ended

Sep. 30, 2022

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

11. 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 September 30, 2022, there were 7,195,049 shares of Class A common stock reserved for issuance under the 2017 Plan, of which 2,851,988 were available to be issued.

Stock-Based Compensation Expense

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 derive an estimate, 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 the historical volatility of our publicly traded stock over the estimated expected term of the stock options. We assume zero dividend yield because we have historically not paid dividends and do not anticipate paying dividends in the near future.

In June 2022, 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 “2022 CEO Grant”) under the 2017 Plan with an exercise price of $50.63 per share. The 2022 CEO Grant is eligible to vest based on the achievement of various stock price appreciation targets of our Class A common stock. Specifically, the 2022 CEO Grant vests in four installments of 25% each if the average closing price per share for a 365 day calendar period equals each of $175, $200, $225, and $250, respectively (the “Vesting Price Threshold”), prior to June 7, 2030. The option also vests if the Company engages in a Corporate Transaction, as defined in the Plan, in which the Company’s Class A common stock is valued at or above the Vesting Price Threshold. The fair value of the 2022 CEO Grant was determined using a Monte Carlo simulation. The fair value of the award at the grant date was $18.8 million and is being amortized over derived service periods ranging from 3.4 to 4.1 years.

No stock options were issued during the three months ended September 30, 2022 and 2021. The only stock option awarded during the nine months ended September 30, 2022 and 2021 was the 2022 CEO Grant. The following table summarizes the assumptions used to estimate the fair value of the 2022 CEO stock option grant:

Three Months Ended September 30,

Nine Months Ended September 30,

2022

2021

2022

2021

Risk-free interest rate

3.01%

Expected term (in years)

Expected volatility

70%

Expected dividend yield

—%

* Not applicable because no stock options were granted during the period.

** Each Vesting Price Threshold for the 2022 CEO grant has a unique expected term ranging from 3.4 to 4.1 years.

The following table summarizes stock option activity for the nine months ended September 30, 2022:


	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2021	2,953,356	$	15.16	4.0	$	147,812
Granted	700,000	50.63
Exercised	(902,392)	27.93			31,790
Expired	(6,800)	3.65
Forfeited	(10,280)	12.28
Outstanding at September 30, 2022	2,733,884	$	20.07	5.3	$	63,622

Exercisable at September 30, 2022	2,033,684	$	9.55	3.8	$	63,618

The total fair value of stock options that vested during the nine months ended September 30, 2022 and 2021 was $0.9 million and $10.7 million, respectively. As of September 30, 2022, the total compensation cost related to unvested stock options not yet recognized, which relates exclusively to the 2022 CEO Grant, was $17.2 million and will be recognized over a weighted average period of 3.4 years.

Restricted Stock Units

The following table summarizes RSU activity for the nine months ended September 30, 2022:


	Number of Shares	Weighted Average Grant Date Fair Value
Non-vested and outstanding at December 31, 2021	1,209,529	$	70.99
Granted	534,213	52.93
Vested	(166,836)	74.30
Forfeited	(157,732)	73.54
Non-vested and outstanding at September 30, 2022	1,419,174	$	63.52

As of September 30, 2022, total unrecognized compensation cost related to unvested RSUs was approximately $68.2 million, which will be recognized over a weighted average period of 1.7 years.

The following table summarizes the components of our stock-based compensation expense by instrument type for the three and nine months ended September 30, 2022 and 2021 (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
RSUs	$	9,845	$	4,997	$	25,378	$	13,405
Stock options	1,272		47		1,517		3,820
Common stock awards to the Board of Directors	219		156		532		467
Total stock-based compensation expense	$	11,336	$	5,200	$	27,427	$	17,692


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Cost of revenue
Subscriptions	$	284	$	381	$	712	$	973
Professional services	1,401		777		3,788		2,283
Operating expenses
Sales and marketing	2,667		1,448		6,721		3,753
Research and development	3,454		1,263		8,831		3,347
General and administrative	3,530		1,331		7,375		7,336
Total stock-based compensation expense	$	11,336	$	5,200	$	27,427	$	17,692

Leases - Additional Information (Details)	Sep. 30, 2022
Leases [Abstract]
Renewal term (in years)	10 years

Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

6. Goodwill and Intangible Assets

Goodwill was comprised of the following as of September 30, 2022 and December 31, 2021 (in thousands):


	Carrying Amount
Balance as of December 31, 2020	$	4,862
Goodwill acquired	24,521
Foreign currency translation adjustments	(1,588)
Balance as of December 31, 2021	27,795
Goodwill acquired	—
Foreign currency translation adjustments	(3,750)
Balance as of September 30, 2022	$	24,045

Intangible assets, net consisted of the following as of September 30, 2022 and December 31, 2021 (in thousands):


	As of
	September 30, 2022		December 31, 2021
Developed technology	$	6,290	$	7,271
Customer relationships - Non-Robotic Process Automation (“RPA”)	754		872
Customer relationships - RPA	226		261
Intangible assets, gross	7,270		8,404
Less: accumulated amortization	(2,131)		(1,260)
Intangible assets, net	$	5,139	$	7,144

Intangible amortization expense was $0.4 million and $1.1 million for the three and nine months ended September 30, 2022, respectively. Intangible amortization expense was $0.3 million and $0.5 million for the three and nine months ended September 30, 2021, respectively. As of September 30, 2022, the weighted average remaining amortization periods for developed technology, non-RPA customer relationships, and RPA customer relationships were approximately 3.7 years, 8.7 years, and 7.3 years, respectively.

The projected annual amortization expense related to amortizable intangible assets as of September 30, 2022 is as follows (in thousands):


	Projected Amortization
2022 (excluding the nine months ended September 30, 2022)	$	347
2023	1,342
2024	1,342
2025	1,068
2026	687
2027	84
Thereafter	269
Total projected amortization expense	$	5,139

Organization and Description of Business	9 Months Ended
Organization and Description of Business	Sep. 30, 2022
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”) is a unified platform for change. We accelerate customers’ businesses by discovering, designing, and automating their most important processes. The Appian Low-Code Platform combines the key capabilities needed to get work done faster, Process Mining + Workflow + Automation, in a unified low-code platform. Appian is open, enterprise grade, and trusted by industry leaders. We are headquartered in McLean, Virginia and operate both in the U.S. and internationally, including Australia, Canada, France, Germany, India, Italy, Japan, Mexico, the Netherlands, Singapore, Spain, Sweden, Switzerland, and the United Kingdom.

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive (Loss) Income	Accumulated Deficit
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
Exercise of stock options	625		625
Stock-based compensation expense	7,894		7,894
Other comprehensive income (loss)	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)
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	(62,796)
Ending balance (in shares) at Sep. 30, 2021		71,166,833
Ending balance at Sep. 30, 2021	256,476	$ 7	490,565	(2,410)	(231,686)
Beginning balance (in shares) at Mar. 31, 2021		70,824,745
Beginning balance at Mar. 31, 2021	295,560	$ 7	479,017	(987)	(182,477)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(23,825)				(23,825)
Issuance of common stock to directors (in shares)		1,175
Vesting of restricted stock units (in shares)		43,024
Exercise of stock options (in shares)		211,651
Exercise of stock options	1,464		1,464
Stock-based compensation expense	4,598		4,598
Other comprehensive income (loss)	(1,451)			(1,451)
Ending balance (in shares) at Jun. 30, 2021		71,080,595
Ending balance at Jun. 30, 2021	276,346	$ 7	485,079	(2,438)	(206,302)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(25,384)				(25,384)
Issuance of common stock to directors (in shares)		1,130
Vesting of restricted stock units (in shares)		38,148
Exercise of stock options (in shares)		46,960
Exercise of stock options	286		286
Stock-based compensation expense	5,200		5,200
Other comprehensive income (loss)	28			28
Ending balance (in shares) at Sep. 30, 2021		71,166,833
Ending balance at Sep. 30, 2021	256,476	$ 7	490,565	(2,410)	(231,686)
Beginning balance (in shares) at Dec. 31, 2021		71,462,094
Beginning balance at Dec. 31, 2021	233,917	$ 7	497,128	(5,687)	(257,531)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(23,154)				(23,154)
Issuance of common stock to directors (in shares)		2,395
Vesting of restricted stock units (in shares)		47,038
Exercise of stock options (in shares)		815,833
Exercise of stock options	24,404		24,404
Stock-based compensation expense	6,943		6,943
Other comprehensive income (loss)	646			646
Ending balance (in shares) at Mar. 31, 2022		72,327,360
Ending balance at Mar. 31, 2022	242,756	$ 7	528,475	(5,041)	(280,685)
Beginning balance (in shares) at Dec. 31, 2021		71,462,094
Beginning balance at Dec. 31, 2021	233,917	$ 7	497,128	(5,687)	(257,531)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	$ (116,503)
Exercise of stock options (in shares)	902,392
Ending balance (in shares) at Sep. 30, 2022		72,540,895
Ending balance at Sep. 30, 2022	$ 172,942	$ 7	549,760	(2,790)	(374,035)
Beginning balance (in shares) at Mar. 31, 2022		72,327,360
Beginning balance at Mar. 31, 2022	242,756	$ 7	528,475	(5,041)	(280,685)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(49,354)				(49,354)
Issuance of common stock to directors (in shares)		2,565
Vesting of restricted stock units (in shares)		52,634
Exercise of stock options (in shares)		61,955
Exercise of stock options	626		626
Stock-based compensation expense	9,148		9,148
Other comprehensive income (loss)	1,884			1,884
Ending balance (in shares) at Jun. 30, 2022		72,444,514
Ending balance at Jun. 30, 2022	205,060	$ 7	538,249	(3,157)	(330,039)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(43,996)				(43,996)
Issuance of common stock to directors (in shares)		4,613
Vesting of restricted stock units (in shares)		67,164
Exercise of stock options (in shares)		24,604
Exercise of stock options	175		175
Stock-based compensation expense	11,336		11,336
Other comprehensive income (loss)	367			367
Ending balance (in shares) at Sep. 30, 2022		72,540,895
Ending balance at Sep. 30, 2022	$ 172,942	$ 7	$ 549,760	$ (2,790)	$ (374,035)

Leases

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

Leases

4. Leases

As of September 30, 2022, our lease portfolio consists entirely of operating leases, most of which are for corporate offices. Our operating leases have remaining lease terms with various expiration dates through 2031, and some leases include options to extend the term for up to an additional 10 years.

Lease Costs

Expense for operating leases is recognized on a straight-line basis over the lease term as an operating expense. We have lease agreements which require payments for lease and non-lease components (i.e., common area maintenance) that are accounted for as a single lease component. Variable lease payment amounts that cannot be determined at the commencement of the lease, such as maintenance costs 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.

The following table sets forth the components of lease expense for the three and nine months ended September 30, 2022 and 2021 (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Operating lease cost	$	1,708	$	1,659	$	4,968	$	4,984
Short-term lease cost	170		23		334		77
Variable lease cost	952		947		2,878		1,744
Total	$	2,830	$	2,629	$	8,180	$	6,805

Supplemental Lease Information

Supplemental balance sheet information related to operating leases as of September 30, 2022 and December 31, 2021 was as follows (in thousands, except for lease term and discount rate):


	As of
	September 30, 2022			December 31, 2021
Right-of-use assets for operating leases	$	31,841		$	27,897

Operating lease liabilities, current	$	7,434		$	8,110
Operating lease liabilities, net of current portion	52,710			48,784
Total operating lease liabilities	$	60,144		$	56,894

Weighted average remaining lease term (in years)	9.0			9.5

Weighted average discount rate	9.5		%	9.5		%

Supplemental cash flow and expense information related to operating leases for the three and nine months ended September 30, 2022 and 2021 was as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Operating cash outflows for operating leases	$	2,099	$	1,792	$	6,258	$	5,295

Amortization of operating lease ROU assets	364		685		995		1,380
Interest expense on operating lease liabilities	1,332		521		3,957		1,448

A summary of our future minimum lease commitments under non-cancellable leases as of September 30, 2022 is as follows (in thousands):


	Operating Leases
2022 (excluding the nine months ended September 30, 2022)	$	2,040
2023	8,367
2024	9,464
2025	10,202
2026	10,603
2027	10,892
Thereafter	44,762
Total lease payments	96,330
Less: imputed interest	(36,186)
Total	$	60,144

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	10. 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 35%. 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 and nine months ended September 30, 2022, the actual effective tax rates were (0.6)% and 0.8%, respectively. For the three and nine months ended September 30, 2021, the actual effective tax rates were (0.3)% and (0.7)%, respectively. The-year-to date tax benefit for the nine months ended September 30, 2022 was primarily driven by a discrete benefit of $1.1 million related to the release of a valuation allowance for Lana Labs as a result of post-integration tax planning and the merger of German subsidiaries. As of September 30, 2022, our net unrecognized tax benefits totaled $3.1 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 U.S. federal jurisdiction and in various state and foreign jurisdictions. Due to our net operating loss carryforward, the tax years 2016 through 2021 remain open to examination by the major taxing jurisdictions to which we are subject. There are no open examinations that would have a meaningful impact to our condensed consolidated financial statements.

- 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

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+ Details

Stock-Based Compensation - Schedule of Stock-based Compensation Expense Included in Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 11,336	$ 5,200	$ 27,427	$ 17,692
Subscriptions
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	284	381	712	973
Professional services
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	1,401	777	3,788	2,283
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	2,667	1,448	6,721	3,753
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	3,454	1,263	8,831	3,347
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 3,530	$ 1,331	$ 7,375	$ 7,336

Basic and Diluted Loss per Share (Tables)

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Schedule of Securities Excluded From Calculation of Weighted Average Common Shares


	Three and Nine Months Ended September 30,
	2022	2021
Stock options	2,733,884	3,039,860
Non-vested restricted stock units	1,419,174	1,235,880

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Net loss	$ (43,996)	$ (25,384)	$ (116,503)	$ (62,796)
Comprehensive income (loss), net of income taxes
Foreign currency translation adjustments	308	28	3,032	2,569
Unrealized gains (losses) on available-for-sale securities	59	0	(135)	31
Total other comprehensive loss, net of income taxes	$ (43,629)	$ (25,356)	$ (113,606)	$ (60,196)

- 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

Accounting Policies - Additional Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($) agency	Sep. 30, 2021 USD ($) agency	Sep. 30, 2022 USD ($) agency	Sep. 30, 2021 USD ($) agency	Dec. 31, 2021 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Number of government agencies \| agency	3	3	3	3
Allowance for doubtful accounts	$ 1,901		$ 1,901		$ 1,400
Capitalized contract cost, amortization period (in years)	5 years		5 years
Commission expense	$ 9,500	$ 8,200	$ 26,500	$ 22,500
September 28, 2022
Summary Of Significant Accounting Policies [Line Items]
Percentage of restricted cash balance			0.25
August 11, 2023
Summary Of Significant Accounting Policies [Line Items]
Percentage of restricted cash balance			0.75
Sales Revenue, Net \| Customer Concentration Risk \| Foreign Customers
Summary Of Significant Accounting Policies [Line Items]
Concentration risk percentage	31.30%	32.00%	33.20%	33.10%
Sales Revenue, Net \| Customer Concentration Risk \| Government Agencies
Summary Of Significant Accounting Policies [Line Items]
Concentration risk percentage	21.20%	19.20%	19.20%	20.00%
Sales Revenue, Net \| Customer Concentration Risk \| Federal Government Agencies
Summary Of Significant Accounting Policies [Line Items]
Concentration risk percentage	5.50%	7.50%	4.80%	6.30%