0001441683-23-000021 | 10-K | XBRL Viewer

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Cover Page - USD ($) $ in Millions	12 Months Ended
Cover Page - USD ($) $ in Millions	Dec. 31, 2022	Feb. 13, 2023	Jun. 30, 2022
Document and Entity Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Current Fiscal Year End Date	--12-31
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 Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
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
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Documents Incorporated by Reference	Portions of the registrant's definitive Proxy Statement for its 2023 Annual Meeting of Stockholders to be filed with the Securities and Exchange Commission pursuant to Regulation 14A not later than 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K are incorporated by reference in Part III, Items 10-14 of this Annual Report on Form 10-K.
Entity Central Index Key	0001441683
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Amendment Flag	false
Class A Common Stock
Document and Entity Information [Line Items]
Entity Public Float			$ 1,025.3
Entity Common Stock, Shares Outstanding		41,338,629
Class B Common Stock
Document and Entity Information [Line Items]
Entity Public Float			$ 95.6
Entity Common Stock, Shares Outstanding		31,497,596

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2022
Audit Information [Abstract]
Auditor Name	BDO USA, LLP
Auditor Location	McLean, Virginia
Auditor Firm ID	243

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents	$ 148,132	$ 100,796
Short-term investments and marketable securities	47,863	55,179
Accounts receivable, net of allowance of $2,125 and $1,400, respectively	165,964	130,049
Deferred commissions, current	30,196	24,668
Prepaid expenses and other current assets	28,093	26,781
Restricted cash, current	2,249	791
Total current assets	422,497	338,264
Property and equipment, net of accumulated depreciation of $18,864 and $14,106, respectively	41,855	36,913
Long-term investments	0	12,044
Goodwill	26,349	27,795
Intangible assets, net of accumulated amortization of $2,715 and $1,260, respectively	5,251	7,144
Operating right-of-use assets	37,248	27,897
Deferred commissions, net of current portion	55,788	49,017
Deferred tax assets	1,940	1,025
Restricted cash, net of current portion	0	2,373
Other assets	3,286	2,047
Total assets	594,214	504,519
Current liabilities
Accounts payable	7,997	5,766
Accrued expenses	12,227	15,483
Accrued compensation and related benefits	40,718	35,126
Deferred revenue, current	194,768	150,169
Debt, current	2,740	0
Operating lease liabilities, current	8,681	8,110
Other current liabilities	3,121	1,067
Total current liabilities	270,252	215,721
Long-term debt	115,379	0
Operating lease liabilities	57,225	48,784
Deferred revenue	5,556	2,430
Deferred tax liabilities	102	209
Other non-current liabilities	0	3,458
Total liabilities	448,514	270,602
Commitments and contingent liabilities (see Note 4 and Note 14)
Stockholders’ equity
Additional paid-in capital	561,390	497,128
Accumulated other comprehensive loss	(7,246)	(5,687)
Accumulated deficit	(408,451)	(257,531)
Total stockholders’ equity	145,700	233,917
Total liabilities and stockholders’ equity	594,214	504,519
Class A Common Stock
Stockholders’ equity
Common stock	4	4
Class B Common Stock
Stockholders’ equity
Common stock	$ 3	$ 3

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Allowance for doubtful accounts	$ 2,125	$ 1,400
Accumulated depreciation	18,864	14,106
Finite-lived intangible assets, accumulated amortization	$ 2,715	$ 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)	41,320,091	39,964,298
Common stock, shares issued (in shares)	41,320,091	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

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenue
Total revenue	$ 467,991	$ 369,259	$ 304,573
Cost of revenue
Total cost of revenue	133,306	104,093	88,766
Gross profit	334,685	265,166	215,807
Operating expenses
Sales and marketing	220,374	167,852	130,316
Research and development	139,210	97,517	70,241
General and administrative	120,111	83,704	53,152
Total operating expenses	479,695	349,073	253,709
Operating loss	(145,010)	(83,907)	(37,902)
Other non-operating expense (income)
Other expense (income), net	3,545	3,584	(5,786)
Interest expense	1,673	372	478
Total other non-operating expense (income)	5,218	3,956	(5,308)
Loss before income taxes	(150,228)	(87,863)	(32,594)
Income tax expense	692	778	883
Net loss	$ (150,920)	$ (88,641)	$ (33,477)
Net loss per share:
Basic (in usd per share)	$ (2.08)	$ (1.25)	$ (0.48)
Diluted (in usd per share)	$ (2.08)	$ (1.25)	$ (0.48)
Weighted average common shares outstanding:
Basic (in shares)	72,455,175	71,036,490	69,050,565
Diluted (in shares)	72,455,175	71,036,490	69,050,565
Subscriptions
Revenue
Total revenue	$ 340,152	$ 263,738	$ 198,710
Cost of revenue
Total cost of revenue	36,005	27,330	20,826
Professional services
Revenue
Total revenue	127,839	105,521	105,863
Cost of revenue
Total cost of revenue	$ 97,301	$ 76,763	$ 67,940

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Net loss	$ (150,920)	$ (88,641)	$ (33,477)
Comprehensive loss, net of income taxes
Foreign currency translation adjustments	(1,559)	(677)	(4,703)
Unrealized losses on available-for-sale securities	0	0	(22)
Total other comprehensive loss, net of income taxes	$ (152,479)	$ (89,318)	$ (38,202)

- 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

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2019		67,468,022
Beginning balance at Dec. 31, 2019	$ 205,237	$ 6	$ 340,929	$ (285)	$ (135,413)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(33,477)				(33,477)
Issuance of common stock from public offering, net of issuance costs (in shares)		1,931,206
Issuance of common stock from public offering, net of issuance costs	$ 107,915	$ 1	107,914
Issuance of common stock to directors (in shares)		7,942
Vesting of restricted stock units (in shares)		270,609
Exercise of stock options (in shares)	1,001,411	1,001,411
Exercise of stock options	$ 6,376		6,376
Stock-based compensation expense	15,279		15,279
Other comprehensive loss	(4,725)			(4,725)
Ending balance (in shares) at Dec. 31, 2020		70,679,190
Ending balance at Dec. 31, 2020	296,605	$ 7	470,498	(5,010)	(168,890)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	$ (88,641)				(88,641)
Issuance of common stock to directors (in shares)		4,950
Vesting of restricted stock units (in shares)		354,130
Exercise of stock options (in shares)	423,824	423,824
Exercise of stock options	$ 2,786		2,786
Stock-based compensation expense	23,844		23,844
Other comprehensive loss	(677)			(677)
Ending balance (in shares) at Dec. 31, 2021		71,462,094
Ending balance at Dec. 31, 2021	233,917	$ 7	497,128	(5,687)	(257,531)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	$ (150,920)				(150,920)
Issuance of common stock to directors (in shares)		14,928
Vesting of restricted stock units (in shares)		403,648
Exercise of stock options (in shares)	937,217	937,217
Exercise of stock options	$ 25,432		25,432
Stock-based compensation expense	38,830		38,830
Other comprehensive loss	(1,559)			(1,559)
Ending balance (in shares) at Dec. 31, 2022		72,817,887
Ending balance at Dec. 31, 2022	$ 145,700	$ 7	$ 561,390	$ (7,246)	$ (408,451)

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities:
Net loss	$ (150,920)	$ (88,641)	$ (33,477)
Adjustments to reconcile net loss to net cash used by operating activities:
Stock-based compensation	38,830	23,844	15,279
Depreciation and amortization of intangible assets	7,297	5,743	5,851
Bad debt expense	1,298	410	984
Amortization of debt issuance costs	43	0	0
Loss on disposal of property and equipment	3	79	22
Change in fair value of available-for-sale securities	0	0	22
Deferred income taxes	(1,089)	(498)	(184)
Changes in assets and liabilities:
Accounts receivable	(37,922)	(33,904)	(33,559)
Prepaid expenses and other assets	(2,027)	2,094	3,740
Deferred commissions	(12,298)	(21,588)	(8,575)
Accounts payable and accrued expenses	(3,289)	11,467	(4,238)
Accrued compensation and related benefits	6,582	12,598	11,801
Other current and non-current liabilities	(264)	(444)	3,681
Deferred revenue	47,534	33,378	27,626
Operating lease assets and liabilities	(329)	1,544	3,407
Net cash used by operating activities	(106,551)	(53,918)	(7,620)
Cash flows from investing activities:
Proceeds from investments	84,642	120,593	0
Purchases of investments	(65,283)	(41,870)	(145,968)
Purchases of property and equipment	(9,095)	(6,058)	(1,251)
Payments for acquisitions, net of cash acquired	0	(30,729)	(6,138)
Net cash provided by (used by) investing activities	10,264	41,936	(153,357)
Cash flows from financing activities:
Proceeds from borrowings	120,000	0	0
Payments for debt issuance costs	(1,940)	0	0
Debt repayments	(625)	0	0
Proceeds from exercise of common stock options	25,432	2,786	6,376
Proceeds from public offerings, net of underwriting discounts	0	0	108,260
Payments of costs related to public offerings	0	0	(346)
Principal payments on finance leases	0	0	(3,822)
Net cash provided by financing activities	142,867	2,786	110,468
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash	(159)	694	3,216
Net increase (decrease) in cash, cash equivalents, and restricted cash	46,421	(8,502)	(47,293)
Cash, cash equivalents, and restricted cash at beginning of period	103,960	112,462	159,755
Cash, cash equivalents, and restricted cash at end of period	150,381	103,960	112,462
Supplemental cash flow information:
Cash paid for interest	1,671	323	165
Cash paid for income taxes	1,239	1,505	1,182
Supplemental non-cash investing and financing information:
Accrued capital expenditures	$ 1,774	$ 379	$ 0

Organization and Description of Business	12 Months Ended
Organization and Description of Business	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [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 software company that automates business processes. The Appian Platform includes everything you need to design, automate, and optimize even the most complex processes, from start to finish. The world's most innovative organizations trust Appian to improve their workflows, unify data, and optimize operations—resulting in better growth and superior customer experiences. 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.

Accounting Policies

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Accounting Policies

2. Accounting Policies

Basis of Presentation

The accompanying 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”).

Use of Estimates

The preparation of our consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and judgments that affect the amounts reported in these consolidated financial statements and accompanying notes. Although we believe the estimates we use are reasonable, due to the inherent uncertainty involved in making these estimates, actual results reported in future periods could differ from those estimates.

Significant estimates embedded in the consolidated financial statements include, but are not limited to, revenue recognition, income taxes and the related valuation allowance, costs to obtain a contract with a customer, and stock-based compensation.

Principles of Consolidation

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

Segment Reporting

Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) for purposes of allocating resources and evaluating financial performance. We have determined our CODM is our Chief Executive Officer.

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 evaluated regularly by our CODM.

Revenue Recognition

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

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. Revenue generated from government agencies represented 19.2%, 19.6%, and 18.1% of our revenue for the years ended December 31, 2022, 2021, and 2020, respectively, of which the top three U.S. federal government agencies generated 4.5%, 5.6%, and 6.6% of our revenue for the years ended December 31, 2022, 2021, and 2020, respectively. Additionally, 33.5%, 34.0%, and 33.8% of our revenue during the years ended December 31, 2022, 2021, and 2020, respectively, was generated from international customers.

Cash, Cash Equivalents, and Restricted Cash

We consider all highly liquid investments with original maturities 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 our acquisition of Lana Labs GmbH (“Lana Labs”). The remaining balance as of December 31, 2022 is due on August 11, 2023.

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


	Year Ended December 31,
	2022		2021		2020
Cash and cash equivalents	$	148,132	$	100,796	$	112,462
Restricted cash, current	2,249		791		—
Restricted cash, non-current	—		2,373		—
Total cash, cash equivalents, and restricted cash	$	150,381	$	103,960	$	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.

Activity in the allowance for doubtful accounts was as follows (in thousands):


	Year Ended December 31,
	2022		2021		2020
Beginning balance	$	1,400	$	1,400	$	600
Additions	1,298		410		984
Less: Write-offs, net of recoveries	(573)		(410)		(184)
Ending balance	$	2,125	$	1,400	$	1,400

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

We capitalize incremental costs of obtaining a contract with a customer, which consists of sales commissions paid to our sales team. 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 customer attrition, expected renewals, product life cycles, and contractual terms. 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. 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 commissions is recorded to sales and marketing expense in our consolidated statements of operations. The following table summarizes the activity of costs to obtain a contract with a customer for the years ended December 31, 2022, and 2021 (in thousands):


	Year Ended December 31,
	2022		2021
Beginning balance	$	73,685	$	52,097
Additional contract costs deferred	49,816		51,283
Amortization of deferred contract costs	(37,517)		(29,695)
Ending balance	$	85,984	$	73,685

Commission expense was $39.4 million, $32.4 million, and $23.3 million for the years ended December 31, 2022, 2021, and 2020, respectively.

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.

Business Combinations

We account for business combinations using the acquisition method of accounting as of the business combination date. Under this method, we allocate the fair value of purchase consideration to identifiable tangible and intangible assets acquired and liabilities assumed at their estimated fair values on the acquisition date. The excess of the consideration transferred over the fair value of the identifiable net assets acquired is recorded as goodwill and represents the future economic benefits expected to arise from other intangible assets acquired that do not qualify for separate recognition, including assembled workforce, non-contractual relationships, and expected future synergies. Determining the fair value of assets acquired and liabilities assumed requires us to use significant judgments and estimates, including the selection of valuation methodologies, estimates of future revenue, costs, and cash flows, and discount rates.

During the measurement period, which can be up to one year from the acquisition date, these estimates may be refined, as necessary, and we may record adjustments to the fair value of tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or the final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our consolidated statements of operations. Acquisition related expenses and post-acquisition integration costs are recognized separately from the business combination and are expensed as incurred.

Impairment of Long-Lived Assets

Long-lived tangible assets and intangible assets with definite useful lives are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable through undiscounted cash flows from the use of the assets. If such assets are considered to be impaired, the assets are written down to their estimated fair value.

Goodwill is accounted for at the segment level and allocated to, and tested for impairment at, a level referred to as the reporting unit. We have determined our one segment consists of a single reporting unit. We test for impairment annually on the first day of our fourth quarter or between annual tests if events or changes in circumstances indicate the fair value of our reporting unit may be below its carrying amount. We have the option to qualitatively assess whether it is more likely than not the fair value our reporting unit is less than its carrying value. If we elect to perform a qualitative assessment and conclude it is more likely than not the fair value of the reporting unit is equal to or greater than its carrying value, no further assessment of that reporting unit’s goodwill is necessary; otherwise, goodwill must be tested for impairment. In 2022, we elected to not perform the optional qualitative assessment of goodwill and instead performed the quantitative impairment test.

When performing the quantitative test, we determine the fair value of the reporting unit and compare it to the carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds the fair value of the reporting unit, the reporting unit’s goodwill is impaired, and we must recognize an impairment loss for the difference between the carrying amount and the fair value of the reporting unit. We estimate the fair value of our reporting unit using a market-based valuation methodology, which is primarily based on our consolidated market capitalization plus a reasonable control premium.

In the fourth quarter of 2022, we completed our annual goodwill impairment test for our reporting unit, and the results of the test indicated the estimated fair value of our reporting unit significantly exceeded the carrying value.

Investments and Fair Value of Financial Instruments

Refer to Note 17 for a detailed discussion on our policies specific to investments and determining fair value.

Stock-Based Compensation

We account for stock-based compensation expense related to stock-based awards based on the estimated fair value of the award on the grant date. We calculate the fair value of stock options containing only a service condition using the Black-Scholes option pricing model. The fair value of restricted stock units (“RSUs”) is based on the closing market price of our common stock on the Nasdaq Global Market on the date of grant. For service-based awards such as RSUs, stock-based compensation expense is recognized on a straight-line basis over the requisite service period. For awards that contain market conditions, compensation expense is measured using a Monte Carlo simulation and is 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. Refer to Note 11 for additional information related to stock-based compensation.

Leases

We combine and account for lease and non-lease components as a single lease component for leases of our facilities. The discount rates related to the our lease liabilities are based on estimates of our incremental borrowing rate on a secured basis, as the discount rates implicit in our lease agreements cannot be readily determined.

Basic and Diluted Loss per Common Share

We compute net loss per common share using the two-class method required for multiple classes of common stock and participating securities. The rights, including the liquidation and dividend rights, of the Class A common stock and Class B common stock are substantially identical, other than voting and conversion rights. Accordingly, the Class A common stock and Class B common stock share equally in our net losses.

Basic net loss per common share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period increased by common shares that could be issued upon the conversion or exercise of other outstanding securities to the extent those additional common shares would be dilutive. The dilutive effect of potentially dilutive securities is reflected in diluted net loss per share by application of the treasury stock method.

Income Taxes

We use the asset and liability method of accounting for income taxes in which deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. We measure deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recoverable or settled. We recognize the effect on deferred tax assets and liabilities of a change in tax rates as income and expense in the period that includes the enactment date. A valuation allowance is established if it is more likely than not that all or a portion of the deferred tax asset will not be realized.

Our tax positions are subject to income tax audits by multiple tax jurisdictions throughout the world. We recognize the tax benefit of an uncertain tax position only if it is more likely than not the position is sustainable upon examination by the taxing authority. We measure the tax benefit recognized as the largest amount of benefit which is more likely than not to be realized upon settlement with the taxing authority. We recognize penalties and interest related to unrecognized tax benefits as income tax expense.

We calculate the current and deferred income tax provision based on estimates and assumptions that could differ from the actual results reflected in income tax returns filed in subsequent years and record adjustments based on filed income tax returns when identified. The amount of income taxes paid is subject to examination by U.S. federal, state, and foreign tax authorities. The estimate of the potential outcome of any uncertain tax issue is subject to our assessment of relevant risks, facts, and circumstances existing at that time. To the extent the assessment of such tax position changes, we record the change in estimate in the period in which we make that determination.

Foreign Currency

Our operations located outside of the United States where the local currency is the functional currency are translated into U.S. dollars using the current rate method. Results of operations are translated at the average rate of exchange for the period. Assets and liabilities are translated at the closing rates on the balance sheet date. Gains and losses on translation of these accounts are accumulated and reported as a separate component of stockholders’ equity and other comprehensive loss.

Gains and losses on foreign currency transactions are recognized in the accompanying consolidated statements of operations as a component of Other expense (income), net. Gains and losses from transactions denominated in foreign currencies resulted in net transaction losses of $6.1 million, net transaction losses of $3.7 million, and net transaction gains of $4.3 million for the years ended December 31, 2022, 2021, and 2020, respectively.

Research and Development

Research and development expenses include payroll, employee benefits, and other headcount-related costs associated with product development. Our product utilizes a common codebase, whether accessed by customers via the cloud or via an on-premises installation. Since our software is sold and licensed externally, we consider our software as external-use software for purposes of applying the capitalized software development guidance. Product development costs are expensed as incurred until

technological feasibility has been established, which is defined as the completion of all planning, designing, coding, and testing activities necessary to establish products that meet design specifications including functions, features, and technical performance requirements. We have determined technological feasibility for our software products is reached shortly before they are released for sale. Costs incurred after technological feasibility is established are not significant, and accordingly we expense all research and development costs when incurred.

Advertising Expenses

We expense advertising costs as they are incurred. Advertising expenses were $5.8 million, $4.4 million, and $6.0 million for the years ended December 31, 2022, 2021, and 2020, respectively.

Recent Accounting Pronouncements

We did not adopt any new accounting guidance in 2022 that had a material impact on our consolidated financial statements or disclosures. Additionally, there is no pending accounting guidance that we expect to have a material impact on our consolidated financial statements.

Revenue

12 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue

3. Revenue

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.

The following table summarizes revenue recorded during the years ended December 31, 2022, 2021, and 2020 (in thousands):


	Year Ended December 31,
	2022		2021		2020
Cloud subscriptions	$	236,922	$	179,415	$	129,219
Term license subscriptions	79,753		63,203		51,415
Maintenance and support	23,477		21,120		18,076
Total subscriptions	340,152		263,738		198,710
Professional services	127,839		105,521		105,863
Total revenue	$	467,991	$	369,259	$	304,573

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. If a cloud agreement includes the right for the customer to take possession of the license, 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.

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 service 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 years ended December 31, 2022, 2021, and 2020 was insignificant. Our estimates of variable consideration are also subject to subsequent true-up adjustments and may result in changes to transaction prices; however, such true-up adjustments are not expected to be material.

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

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

1.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

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 December 31, 2022 and 2021, contract assets of $14.3 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 year ended December 31, 2022, we recognized $147.0 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 December 31, 2022, we had an aggregate transaction price of $376.5 million allocated to unsatisfied performance obligations. We expect to recognize $243.2 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

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

+ Details

Leases

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases

4. Leases

As of December 31, 2022, our lease portfolio consists entirely of operating leases, all 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.

Right-of-Use (“ROU”) Assets and Lease Liabilities

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

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

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 years ended December 31, 2022, 2021 and 2020 (in thousands):


	Year Ended December 31,
	2022		2021		2020
Operating lease cost	$	6,950	$	6,619	$	6,649
Finance lease costs:
Amortization of right-of-use assets	—		—		1,242
Interest on lease liabilities	—		—		150
Short-term lease cost	583		149		565
Variable lease cost	3,817		2,713		281
Total	$	11,350	$	9,481	$	8,887

Supplemental Lease Information

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


	As of December 31,
	2022			2021
Right-of-use assets for operating leases	$	37,248		$	27,897

Operating lease liabilities, current	$	8,681		$	8,110
Operating lease liabilities, net of current portion	57,225			48,784
Total operating lease liabilities	$	65,906		$	56,894

Weighted average remaining lease term (in years)	8.4			9.5

Weighted average discount rate	9.4		%	9.5		%

Supplemental cash flow and expense information related to operating leases for the years ended December 31, 2022 and 2021 is as follows (in thousands):


	Year Ended December 31,
	2022		2021		2020

Operating cash outflows for operating leases	$	7,073	$	7,732	$	3,407
Operating cash outflows for finance leases	—		—		150
Financing cash outflows for finance leases	—		—		3,822

Amortization of operating lease ROU assets	1,495		1,361		1,554
Interest expense on operating lease liabilities	5,406		5,268		1,853

A summary of our future minimum lease commitments under non-cancellable leases as of December 31, 2022 is as follows (in thousands):


	Operating Leases
2023	$	9,076
2024	11,122
2025	11,409
2026	11,666
2027	11,717
Thereafter	42,513
Total lease payments	97,503
Less: imputed interest	(31,597)
Total	$	65,906

Leases

4. Leases

Right-of-Use (“ROU”) Assets and Lease Liabilities

Lease Costs

The following table sets forth the components of lease expense for the years ended December 31, 2022, 2021 and 2020 (in thousands):


	Year Ended December 31,
	2022		2021		2020
Operating lease cost	$	6,950	$	6,619	$	6,649
Finance lease costs:
Amortization of right-of-use assets	—		—		1,242
Interest on lease liabilities	—		—		150
Short-term lease cost	583		149		565
Variable lease cost	3,817		2,713		281
Total	$	11,350	$	9,481	$	8,887

Supplemental Lease Information

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


	As of December 31,
	2022			2021
Right-of-use assets for operating leases	$	37,248		$	27,897

Operating lease liabilities, current	$	8,681		$	8,110
Operating lease liabilities, net of current portion	57,225			48,784
Total operating lease liabilities	$	65,906		$	56,894

Weighted average remaining lease term (in years)	8.4			9.5

Weighted average discount rate	9.4		%	9.5		%

Supplemental cash flow and expense information related to operating leases for the years ended December 31, 2022 and 2021 is as follows (in thousands):


	Year Ended December 31,
	2022		2021		2020

Operating cash outflows for operating leases	$	7,073	$	7,732	$	3,407
Operating cash outflows for finance leases	—		—		150
Financing cash outflows for finance leases	—		—		3,822

Amortization of operating lease ROU assets	1,495		1,361		1,554
Interest expense on operating lease liabilities	5,406		5,268		1,853

A summary of our future minimum lease commitments under non-cancellable leases as of December 31, 2022 is as follows (in thousands):


	Operating Leases
2023	$	9,076
2024	11,122
2025	11,409
2026	11,666
2027	11,717
Thereafter	42,513
Total lease payments	97,503
Less: imputed interest	(31,597)
Total	$	65,906

Business Combinations

12 Months Ended

Dec. 31, 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. The purchase price allocated to goodwill and intangible assets is not deductible for tax purposes. The following table summarizes the fair value of the assets acquired and liabilities assumed in connection with the acquisition (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

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 in 2021 included a $0.8 million adjustment to developed technology and goodwill related to an update to the discount rate utilized in our valuation of intangible assets, a $0.3 million increase in deferred revenue stemming from our early adoption of new accounting guidance relating to deferred revenue recognized pursuant to a business combination, a $0.1 million deferred tax adjustment, and an immaterial adjustment to working capital.

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

6. Goodwill and Intangible Assets

The following table summarizes goodwill balances as of December 31, 2022 and 2021 (in thousands):


	Carrying Amount
Balance as of December 31, 2020	$	4,862
Goodwill acquired, net of measurement period adjustments	24,521
Foreign currency translation adjustments	(1,588)
Balance as of December 31, 2021	$	27,795
Goodwill acquired	—
Foreign currency translation adjustments	(1,446)
Balance as of December 31, 2022	$	26,349

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


	As of December 31,
	2022		2021
Developed technology	$	6,893	$	7,271
Customer relationships - Non-Robotic Process Automation (“RPA”)	827		872
Customer relationships - RPA	246		261
Intangible assets, gross	7,966		8,404
Less: Accumulated amortization	(2,715)		(1,260)
Intangible assets, net	$	5,251	$	7,144

Intangible amortization expense was $1.5 million, $0.8 million, and $0.4 million for the years ended December 31, 2022, 2021, and 2020, respectively. As of December 31, 2022, the weighted average remaining amortization periods for developed technology, non-RPA customer relationships, and RPA customer relationships were approximately 3.4 years, 8.7 years, and 7.0 years, respectively.

The projected annual amortization expense related to amortizable intangible assets as of December 31, 2022 is as follows (in thousands):


Year Ended December 31,
2023	$	1,471
2024	1,471
2025	1,170
2026	753
2027	92
Thereafter	294
Total projected amortization expense	$	5,251

Property and Equipment, net

12 Months Ended

Dec. 31, 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 December 31, 2022 and 2021 (in thousands):


	As of December 31,
	2022		2021
Leasehold improvements	$	45,959	$	41,005
Office furniture and fixtures	3,476		2,536
Computer hardware	9,689		6,001
Computer software	1,353		1,353
Equipment	242		124
Property and equipment, gross	60,719		51,019
Less: Accumulated depreciation	(18,864)		(14,106)
Property and equipment, net	$	41,855	$	36,913

Depreciation expense totaled $5.8 million, $4.9 million, and $5.4 million for the years ended December 31, 2022, 2021, and 2020, respectively. During the year ended December 31, 2022, we retired and disposed of fully depreciated laptops and computer hardware with a gross asset value of approximately $1.0 million. Disposals during the year ended December 31, 2021 were not significant.

Accrued Expenses

12 Months Ended

Dec. 31, 2022

Payables and Accruals [Abstract]

Accrued Expenses

8. Accrued Expenses

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


	As of December 31,
	2022		2021
Hosting costs	$	2,802	$	1,995
Contract labor costs	1,465		891
Marketing and tradeshow expenses	1,000		1,167
Audit and tax expenses	911		439
Taxes payable	827		550
Legal costs	475		5,511
Reimbursable employee expenses	1,004		870
Third party license fees	1,223		1,066
Capital expenditures	744		379
Other accrued expenses	1,776		2,615
Total	$	12,227	$	15,483

Debt

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Debt

9. Debt

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). On December 13, 2022, we executed the first amendment to the credit agreement which increased the aggregate principal amount of the term loan facility by $20.0 million and the limit of the revolving credit facility by $10.0 million. The Credit Agreement matures on November 3, 2027. We will use the proceeds from the $120.0 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 0.50% 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 or from 2.5% to 3.5% in the case of Term SOFR advances, depending on our debt to recurring revenue leverage ratio (as defined in the Credit Agreement). 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 leverage ratio (as defined in the Credit Agreement).

In addition, the Credit Agreement contains other 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 customary events of default, 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 following table summarizes outstanding long-term debt balances (in thousands):


	As of December 31,
	2022		2021

Secured term loan facility	$	119,375	$	—
Less: Debt issuance costs	(1,256)		—
Total long-term debt, net of debt issuance costs	$	118,119	$	—

Long-term debt, current	$	2,740	$	—
Long-term debt, net of current portion	115,379		—
Total long-term debt	$	118,119	$	—

The following table summarizes the annual maturities of the principal amount of total debt due (in thousands):


Repayment schedule of principal long-term debt as of December 31, 2022
2023	$	3,000
2024	3,750
2025	6,000
2026	6,000
2027	100,625
Total	$	119,375

We were in compliance with all covenants as of December 31, 2022. As of December 31, 2022, we had no outstanding borrowings under the revolving credit facility, and we had outstanding letters of credit totaling $12.0 million in connection with securing our leased office space.

- 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.

+ References

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-Publisher FASB
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+ Details

Income Taxes

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

10. Income Taxes

For the years ended December 31, 2022, 2021, and 2020, our loss before income taxes was comprised of the following (in thousands):


	Year Ended December 31,
	2022		2021		2020
Domestic	$	(102,434)	$	(48,743)	$	(25,463)
Foreign	(47,794)		(39,120)		(7,131)
Total	$	(150,228)	$	(87,863)	$	(32,594)

For the years ended December 31, 2022, 2021, and 2020, our income tax expense (benefit) was comprised of the following (in thousands):


	Year Ended December 31,
	2022		2021		2020
Current:
Federal	$	72	$	15	$	11
State	119		79		79
Foreign	1,409		1,156		977
Total current expense	1,600		1,250		1,067
Deferred:
Federal	—		—		—
State	—		—		—
Foreign	(908)		(472)		(184)
Total deferred benefit	(908)		(472)		(184)
Total income tax expense	$	692	$	778	$	883

For the years ended December 31, 2022, 2021, and 2020, the provision for income taxes differs from the amount computed by applying the federal statutory income tax rates to our loss before the provision (benefit) for income taxes as follows:


	Year Ended December 31,
	2022		2021		2020
U.S. federal statutory tax rate	21.0	%	21.0	%	21.0	%
State tax expense	4.1		4.7		18.2
Foreign rate differential	(3.3)		(4.1)		(3.6)
Nondeductible expenses	(0.3)		(0.5)		(0.6)
Foreign tax expense	0.3		(0.2)		—
Equity compensation	1.0		7.0		46.2
Tax credits	4.7		5.0		12.0
Unrecognized tax benefits	(0.9)		(0.9)		(2.2)
Change in tax rate	0.3		(1.2)		—
Other	(0.5)		(0.1)		(1.1)
Deferred adjustments	(0.8)		0.9		(1.7)
Change in valuation allowance	(26.1)		(32.5)		(90.9)
Total	(0.5)	%	(0.9)	%	(2.7)	%

The effective tax rate of (0.5)% in 2022 includes $39.2 million of tax expense attributable to the change in the valuation allowance in the United States, Switzerland, and Germany (Lana Labs GmbH), partially offset by $8.6 million of favorable excess tax benefits for equity compensation and research credits.

Deferred tax assets and liabilities reflect the net tax effects of temporary differences between the carrying amount of the assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. As of December 31, 2022 and 2021, significant components of our deferred tax assets and liabilities were as follows (in thousands):


	As of December 31,
	2022		2021
Deferred tax assets:
Net operating losses	$	85,442	$	81,499
Tax credits	21,215		15,510
Deferred revenue	416		466
Equity compensation	5,314		4,917
Lease liabilities	17,732		15,089
Accrued compensation	4,510		3,390
Bad debt	656		373
Other accrued expense	16		1,452
Capitalized research and development costs	29,991		—
Other	431		301
Gross deferred tax assets	165,723		122,997
Less: Valuation allowance	(132,581)		(94,399)
Total deferred tax assets	33,142		28,598
Deferred tax liabilities:
Prepaid expenses	(15,309)		(12,576)
Right-of-use assets	(10,056)		(7,361)
Unbilled receivables	—		(1,248)
Depreciation	(4,275)		(3,892)
Intangible assets	(1,540)		(2,102)
Other	(123)		(603)
Total deferred tax liabilities	(31,303)		(27,782)
Net deferred tax assets	$	1,839	$	816

As of December 31, 2022 and 2021, we had $237.7 million and $239.9 million of gross net operating loss (“NOL”) carryforwards for U.S. federal tax purposes, respectively. U.S. federal NOL carryforwards in the amount of $16.9 million, gross, generated prior to 2018 will expire, if unused, in 2037. Under the Tax Cuts and Jobs Act of 2017 (the “TCJA”), as modified by the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), federal NOL carryforwards generated in tax years beginning after December 31, 2017 may be carried forward indefinitely. As of December 31, 2022, we had $220.8 million of gross NOL carryforwards generated after 2017 for U.S. federal tax purposes, which may be used to offset 80% of our taxable income annually.

Section 382 of the Internal Revenue Code limits the utilization of NOL carryforwards when ownership changes occur, as defined by that section. A number of states have similar state laws that limit utilization of state NOL carryforwards when ownership changes occur. We have performed an analysis of our Section 382 ownership changes and have determined all U.S. federal and state NOL carryforwards are available for use as of December 31, 2022.

Beginning in 2022, the TCJA eliminated the option to deduct research and development expenditures immediately in the year incurred and requires companies to amortize such expenditures over five or fifteen years for tax purposes, depending on whether the activities were incurred in the U.S. or outside of the U.S. This change resulted in an increase to gross deferred tax assets of approximately $30.0 million in 2022. Due to the full valuation allowance recorded against our U.S. deferred tax assets, there was no impact to net deferred tax assets. Additionally, there was no cash tax impact for 2022 due to our ability to use NOL carryforwards to fully offset taxable income generated by the changes to research and development expenditures.

As of December 31, 2022 and 2021, we had $19.3 million and $13.7 million, respectively, of U.S. federal tax credit carryforwards which will expire, if unused, between 2031 and 2042.

As of December 31, 2022 and 2021, we had U.S. gross state NOL carryforwards of $256.3 million and $249.8 million, respectively. We had tax effected state NOL carryforwards of $14.8 million and $14.1 million as of December 31, 2022 and 2021, respectively. The rules regarding carryforwards vary from state to state, and the ability to utilize NOLs varies based on timing and amount. The majority of state NOL carryforwards generated prior to 2018 will expire, if unused, in 2037. Due to the TCJA, certain state NOL carryforwards generated after 2017 have an indefinite carryforward period.

As of December 31, 2022 and 2021, we had foreign gross NOL carryforwards of $163.4 million and $126.6 million, respectively, primarily attributable to our subsidiary in Switzerland. In 2022, $8.1 million of Swiss NOLs expired related to the 2015 tax year. An additional piece of those NOL carryforwards will expire each year, if unused, between 2023 and 2029.

The net change in the total valuation allowance during the year ended December 31, 2022 was $38.2 million, primarily driven by the valuation allowance recorded against the United States and Switzerland deferred tax assets. The $1.1 million valuation allowance against the Germany (Lana Labs GmbH) deferred tax assets was released in 2022 as a result of post-integration tax planning and the merger of German subsidiaries.

As of December 31, 2022, we continued to maintain a full valuation allowance against U.S. deferred tax assets based on our cumulative operating results as of December 31, 2022, three-year cumulative loss, and an assessment of our expected future results of operations. We have evaluated all evidence, both positive and negative, in assessing the likelihood of realizability, and we determined the negative evidence outweighed the positive evidence.

As of December 31, 2022, we have a valuation allowance of $18.7 million against foreign deferred tax assets at our subsidiary in Switzerland. Based on our cumulative operating results as of December 31, 2022 and assessment of our expected future results of operations, we determined it was not more likely than not we would be able to realize the deferred tax assets prior to expiration.

We plan to distribute previously undistributed earnings of our foreign subsidiaries back to the United States in future years. Upon repatriation of those earnings, if any, we may be subject to taxes, including withholding taxes, net of any applicable foreign tax credits. Determination of the amount of unrecognized deferred U.S. income tax liability is not practicable.

As of December 31, 2022 and 2021, we had unrecognized tax benefits of $4.5 million and $3.1 million, respectively, none of which would affect our effective tax rate if recognized due to the valuation allowance. The following table summarizes the activity related to our unrecognized tax benefit from December 31, 2019 to December 31, 2022 (in thousands):


Balance as of December 31, 2019	$	1,575
Additions for tax positions in current years	702
Additions for tax positions in prior years	—
Reductions due to lapse in statutes of limitations	—
Settlements	—
Balance as of December 31, 2020	2,277
Additions for tax positions in current years	812
Additions for tax positions in prior years	—
Reductions due to lapse in statutes of limitations	—
Settlements	—
Balance as of December 31, 2021	3,089
Additions for tax positions in current years	1,399
Additions for tax positions in prior years	—
Reductions due to lapse in statutes of limitations	—
Settlements	—
Balance as of December 31, 2022	$	4,488

We recognize interest and penalties related to uncertain tax positions in income tax expense. During the years ended December 31, 2022, 2021, and 2020, we recognized nominal amounts in interest. The cumulative balance of interest and penalties as of December 31, 2022 and 2021 were not meaningful. We anticipate total unrecognized tax benefits will not decrease over the next year.

We file income tax returns in the U.S. federal jurisdiction and in various state and foreign jurisdictions. Due to the NOL carryforward, tax years 2016 through 2022 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 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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Stock-Based Compensation

12 Months Ended

Dec. 31, 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, restricted stock units (“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 December 31, 2022, there were 7,196,149 shares of Class A common stock reserved for issuance under the 2017 Plan, of which 2,839,475 were available to be issued.

Stock Options

We estimate the fair value of stock options containing only a service condition using the Black-Scholes option pricing model, which requires the use of subjective assumptions, including the expected term of the option, the current price of the underlying stock, the expected stock price volatility, expected dividend yield, and the risk-free interest rate for the expected term of the option. The expected term represents the period of time the stock options are expected to be outstanding. Due to the lack of sufficient historical exercise data to provide a reasonable basis upon which to 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 years to 4.1 years.

The only stock option awarded during the years ended December 31, 2022, 2021, and 2020 was the 2022 CEO Grant. The following table summarizes the assumptions used to estimate the fair value of the 2022 CEO stock option grant:

Year Ended December 31,

2022

2021

2020

Risk-free interest rate

3.01

Expected term (in years)

Expected volatility

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 years to 4.1 years.

The following table summarizes stock option activity for the years ended December 31, 2022, 2021, and 2020:


	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2019	4,458,611	$	12.30	5.8	$	115,501
Granted	—	—
Exercised	(1,001,411)	6.39			81,181
Expired	(1,380)	11.82
Forfeited	(56,580)	11.33
Outstanding at December 31, 2020	3,399,240	14.06		4.9	503,174
Granted	—	—
Exercised	(423,824)	6.55			43,525
Expired	(4,100)	10.54
Forfeited	(17,960)	11.78
Outstanding at December 31, 2021	2,953,356	15.16		4.0	147,812
Granted	700,000	50.63
Exercised	(937,217)	27.14			32,858
Expired	(7,900)	4.06
Forfeited	(10,280)	12.28
Outstanding at December 31, 2022	2,697,959	$	20.25	5.1	$	45,867

Exercisable at December 31, 2022	1,997,959	$	9.60	3.6	$	45,867

The total fair value of stock options that vested during the years ended December 31, 2022, 2021, and 2020 was $0.9 million, $10.8 million, and $2.8 million, respectively. As of December 31, 2022, the total compensation cost related to unvested stock options not yet recognized, which relates exclusively to the 2022 CEO Grant, was $16.0 million. This amount will be recognized over a weighted average period of 3.19 years.

Restricted Stock Units

The following table summarizes RSU activity for the years ended December 31, 2022, 2021, and 2020:


	Number of Shares	Weighted Average Grant Date Fair Value
Non-vested and outstanding at December 31, 2019	1,022,835	$	31.39
Granted	589,692	60.47
Vested	(270,609)	31.29
Forfeited	(176,915)	32.01
Non-vested and outstanding at December 31, 2020	1,165,003	46.04
Granted	488,462	108.98
Vested	(354,130)	43.39
Forfeited	(89,806)	62.72
Non-vested and outstanding at December 31, 2021	1,209,529	70.99
Granted	606,203	52.63
Vested	(403,648)	58.63
Forfeited	(221,364)	70.30
Non-vested and outstanding at December 31, 2022	1,190,720	$	65.97

As of December 31, 2022, total unrecognized compensation cost related to unvested RSUs was approximately $58.3 million, which will be recognized over a weighted average period of 1.6 years.

The following table summarizes the components of our stock-based compensation expense by instrument type for the years ended December 31, 2022, 2021, and 2020 (in thousands):


	Year Ended December 31,
	2022		2021		2020
RSUs	$	35,290	$	19,382	$	10,745
Stock options	2,790		3,839		4,164
Common stock awards to Board of Directors	750		623		370
Total stock-based compensation expense	$	38,830	$	23,844	$	15,279

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 years ended December 31, 2022, 2021, and 2020 (in thousands):


	Year Ended December 31,
	2022		2021		2020
Cost of revenue
Subscriptions	$	996	$	1,199	$	943
Professional services	5,309		3,131		1,477
Operating expenses
Sales and marketing	9,152		5,426		2,821
Research and development	12,523		5,224		2,718
General and administrative	10,850		8,864		7,320
Total stock-based compensation expense	$	38,830	$	23,844	$	15,279

Stockholders' Equity	12 Months Ended
Stockholders' Equity	Dec. 31, 2022
Equity [Abstract]
Stockholders' Equity	12. Stockholders' Equity As of December 31, 2022, we had authorized 500,000,000 shares of Class A common stock and 100,000,000 shares of Class B common stock, each with a par value of $0.0001 per share, of which 41,320,091 shares of Class A common stock and 31,497,796 shares of Class B common stock were issued and outstanding. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting and conversion rights. The holders of Class A common stock are entitled to one vote per share, and the holders of Class B common stock are entitled to ten votes per share on all matters subject to stockholder vote. The holders of Class B common stock also have approval rights for certain corporate actions. Each share of Class B common stock may be converted into one share of Class A common stock at the option of its holder and will be automatically converted upon transfer thereof, subject to certain exceptions. In addition, upon the date on which the outstanding shares of Class B common stock represent less than 10% of the aggregate voting power of our capital stock, all outstanding shares of Class B common stock shall convert automatically into Class A common stock.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

Basic and Diluted Loss per Common Share

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

Basic and Diluted Loss per Common Share

13. Basic and Diluted Loss per Common Share

The following table sets forth the computation of basic and diluted net loss per share for the years ended December 31, 2022, 2021, and 2020 (in thousands, except share and per share data):


	Year Ended December 31,
	2022		2021		2020
Numerator:
Net loss	$	(150,920)	$	(88,641)	$	(33,477)
Denominator:
Weighted average common shares outstanding, basic and diluted	72,455,175		71,036,490		69,050,565
Net loss per share, basic and diluted	$	(2.08)	$	(1.25)	$	(0.48)

Due to net losses for the years ended December 31, 2022, 2021, and 2020, basic and diluted net loss per share were the same as the effect of potentially dilutive securities would have been antidilutive.

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:


	Year Ended December 31,
	2022	2021	2020
Stock options	2,697,959	2,953,356	3,399,240
Non-vested restricted stock units	1,190,720	1,209,529	1,165,003

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	14. 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 year ended December 31, 2022 totaled $33.1 million. Letters of Credit At December 31, 2022 and 2021, we had outstanding letters of credit totaling $12.0 million and $11.2 million, respectively, in connection with securing our leased office space. All letters of credit are secured by our current or historical borrowing arrangements as described in Note 9. 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, and on February 6, 2023, Pegasystems filed its opening brief with the Court of Appeals of Virginia. Appian expects to file its responsive brief in March 2023, to which Pegasystems will file a reply brief. After submission of the reply brief, the timeline of the case is solely within the control of the Court of Appeals until it rules. 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 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 Annual 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. We do not believe any material liability will be imposed as a result of any of the foregoing matters.

Segment and Geographic Information

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Segment and Geographic Information

15. Segment and Geographic Information

The following table summarizes revenue by geography for the years ended December 31, 2022, 2021, and 2020 (in thousands):


	Year Ended December 31,
	2022		2021		2020
Domestic	$	311,075	$	243,562	$	201,483
International	156,916		125,697		103,090
Total	$	467,991	$	369,259	$	304,573

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 years ended December 31, 2022 and 2021. Revenue from customers attributed to the United Kingdom were 12.5% of our total revenue for the year ended December 31, 2020. Substantially all of our long-lived assets were held in the United States as of December 31, 2022 and 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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Retirement Plans	12 Months Ended
Retirement Plans	Dec. 31, 2022
Retirement Benefits [Abstract]
Retirement Plans	16. Retirement PlansWe have a defined contribution 401(k) retirement and savings plan (the “Plan”) to provide retirement benefits for all eligible employees. With limited exceptions, all employees over the age of 21 on the first day of the month immediately following the month of hiring are eligible to participate in the Plan. The Plan allows eligible employees to make salary-deferred contributions up to 75% of their pre-tax annual compensation, as defined in the Plan, as long as the total contributed does not exceed the annual maximum allowable amount under the Internal Revenue Code. The Company makes a semi-monthly matching contribution of 100% of the employee's contribution for that pay period, up to a maximum of 4% of the employee's eligible gross compensation for that pay period. Company contributions vest ratably based on years of service over a four year period, beginning with the completion of the first year of service. For the years ended December 31, 2022, 2021, and 2020, we incurred $11.5 million, $8.7 million, and $6.8 million, respectively, in contribution expense related to employer matching contributions.

Investments and Fair Value Measurements

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Investments and Fair Value Measurements

17. Investments and Fair Value Measurements

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 during the years ended December 31, 2022 and 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).

The carrying amounts of our cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate fair value as of December 31, 2022 and 2021 because of the relatively short duration of these instruments. Additionally, the carrying value of our debt associated with the term loan facility approximates fair value because the interest rates are variable and reset on a relatively short durations to the then market rates.

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 accumulated other comprehensive loss in our consolidated balance sheets. The components of our investments as of December 31, 2022 and 2021 are as follows (in thousands):


	As of December 31, 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	$	39,469	$	—	$	39,469	$	39,469	$	—
U.S. Treasury bonds	Level 1	9,396		(13)		9,383		—		9,383
Commercial paper	Level 2	26,704		—		26,704		—		26,704
Corporate bonds	Level 2	9,353		(12)		9,341		—		9,341
Agency bonds	Level 2	2,432		3		2,435				2,435

Total investments		$	87,354	$	(22)	$	87,332	$	39,469	$	47,863

As of 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 year ended December 31, 2022 and 2021. Additionally, there were no transfers between Levels 1 and 2 during the years ended December 31, 2022 and 2021. Interest income on our investments totaled $0.9 million for the year ended December 31, 2022.

The amortized cost basis and fair value of debt securities at December 31, 2022 and 2021, by contractual maturity, are as follows (in thousands):


	As of December 31, 2022
	Cost Basis		Fair Value
Due in one year or less	$	87,354	$	87,332
Due after one year through five years	—		—
Total investments	$	87,354	$	87,332


	As of December 31, 2021
	Cost Basis		Fair Value
Due in one year or less	$	93,497	$	93,480
Due after one year through five years	12,049		12,044
Total investments	$	105,546	$	105,524

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

Accounting Policies (Policies)	12 Months Ended
Accounting Policies (Policies)	Dec. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying 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”).
Use of Estimates	Use of Estimates The preparation of our consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and judgments that affect the amounts reported in these consolidated financial statements and accompanying notes. Although we believe the estimates we use are reasonable, due to the inherent uncertainty involved in making these estimates, actual results reported in future periods could differ from those estimates. Significant estimates embedded in the consolidated financial statements include, but are not limited to, revenue recognition, income taxes and the related valuation allowance, costs to obtain a contract with a customer, and stock-based compensation.
Principles of Consolidation	Principles of Consolidation The accompanying consolidated financial statements include the accounts of Appian and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Segment Reporting	Segment Reporting Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) for purposes of allocating resources and evaluating financial performance. We have determined our CODM is our Chief Executive Officer. 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 evaluated regularly by our CODM.
Concentration of Credit and Customer Risk	Concentration of Credit and Customer Risk Our financial instruments exposed to concentration of credit and customer risk consist primarily of cash, 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 original maturities 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 our acquisition of Lana Labs GmbH (“Lana Labs”). The remaining balance as of December 31, 2022 is due on August 11, 2023.
Accounts Receivable and Allowance for Doubtful Accounts and Non-Trade Receivable	Accounts Receivable and Allowance for Doubtful AccountsAccounts receivable are stated at realizable value, net of an allowance for doubtful accounts. The allowance for doubtful accounts is based on our assessment of the collectability of accounts and incorporates an estimation of expected lifetime credit losses on our receivables. We regularly review the composition of the accounts receivable aging, historical bad debts, changes in payment patterns, customer creditworthiness, and current economic trends. If the financial condition of our customers were to deteriorate, resulting in their inability to make required payments, additional provisions for doubtful accounts would be required and would increase bad debt expense.
Assets Recognized from the Costs to Obtain a Contract with a Customer	Assets Recognized from the Costs to Obtain a Contract with a Customer We capitalize incremental costs of obtaining a contract with a customer, which consists of sales commissions paid to our sales team. 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 customer attrition, expected renewals, product life cycles, and contractual terms. 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. 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 commissions is recorded to sales and marketing expense in our consolidated statements of operations.
Property and Equipment	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.
Business Combinations	Business Combinations We account for business combinations using the acquisition method of accounting as of the business combination date. Under this method, we allocate the fair value of purchase consideration to identifiable tangible and intangible assets acquired and liabilities assumed at their estimated fair values on the acquisition date. The excess of the consideration transferred over the fair value of the identifiable net assets acquired is recorded as goodwill and represents the future economic benefits expected to arise from other intangible assets acquired that do not qualify for separate recognition, including assembled workforce, non-contractual relationships, and expected future synergies. Determining the fair value of assets acquired and liabilities assumed requires us to use significant judgments and estimates, including the selection of valuation methodologies, estimates of future revenue, costs, and cash flows, and discount rates. During the measurement period, which can be up to one year from the acquisition date, these estimates may be refined, as necessary, and we may record adjustments to the fair value of tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or the final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our consolidated statements of operations. Acquisition related expenses and post-acquisition integration costs are recognized separately from the business combination and are expensed as incurred.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets Long-lived tangible assets and intangible assets with definite useful lives are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable through undiscounted cash flows from the use of the assets. If such assets are considered to be impaired, the assets are written down to their estimated fair value. Goodwill is accounted for at the segment level and allocated to, and tested for impairment at, a level referred to as the reporting unit. We have determined our one segment consists of a single reporting unit. We test for impairment annually on the first day of our fourth quarter or between annual tests if events or changes in circumstances indicate the fair value of our reporting unit may be below its carrying amount. We have the option to qualitatively assess whether it is more likely than not the fair value our reporting unit is less than its carrying value. If we elect to perform a qualitative assessment and conclude it is more likely than not the fair value of the reporting unit is equal to or greater than its carrying value, no further assessment of that reporting unit’s goodwill is necessary; otherwise, goodwill must be tested for impairment. In 2022, we elected to not perform the optional qualitative assessment of goodwill and instead performed the quantitative impairment test. When performing the quantitative test, we determine the fair value of the reporting unit and compare it to the carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds the fair value of the reporting unit, the reporting unit’s goodwill is impaired, and we must recognize an impairment loss for the difference between the carrying amount and the fair value of the reporting unit. We estimate the fair value of our reporting unit using a market-based valuation methodology, which is primarily based on our consolidated market capitalization plus a reasonable control premium. In the fourth quarter of 2022, we completed our annual goodwill impairment test for our reporting unit, and the results of the test indicated the estimated fair value of our reporting unit significantly exceeded the carrying value.
Stock-Based Compensation	Stock-Based CompensationWe 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 is 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. Refer to Note 11 for additional information related to stock-based compensation.
Leases	Leases We combine and account for lease and non-lease components as a single lease component for leases of our facilities. The discount rates related to the our lease liabilities are based on estimates of our incremental borrowing rate on a secured basis, as the discount rates implicit in our lease agreements cannot be readily determined. At the inception of an arrangement, we determine whether the arrangement is or contains a lease based on the unique facts and circumstances present and the classification of the lease. Operating leases with a term greater than one year are recognized on the consolidated balance sheet as ROU assets, lease liabilities, and, if applicable, long-term lease liabilities. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. We have elected not to recognize on our consolidated balance sheets leases with a term of one year or less. Lease liabilities and their corresponding ROU assets are recorded based on the present value of lease payments over the expected lease term. The implicit rates within most of our leases are generally not determinable; therefore, we estimate our incremental borrowing rate to determine the present value of lease payments. The determination of our incremental borrowing rate requires judgment and is estimated for each lease based on the rate we would have to pay for a collateralized loan with the same terms as the lease. We consider various factors, including our level of collateralization, estimated credit rating, and the currency in which the lease is denominated. Operating lease ROU assets also include any lease prepayments, offset by lease incentives. Certain of our leases include options to extend or terminate the lease. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain we will exercise that option.. 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.
Basic and Diluted Loss per Common Share	Basic and Diluted Loss per Common Share We compute net loss per common share using the two-class method required for multiple classes of common stock and participating securities. The rights, including the liquidation and dividend rights, of the Class A common stock and Class B common stock are substantially identical, other than voting and conversion rights. Accordingly, the Class A common stock and Class B common stock share equally in our net losses. Basic net loss per common share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period increased by common shares that could be issued upon the conversion or exercise of other outstanding securities to the extent those additional common shares would be dilutive. The dilutive effect of potentially dilutive securities is reflected in diluted net loss per share by application of the treasury stock method.
Income Taxes	Income Taxes We use the asset and liability method of accounting for income taxes in which deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. We measure deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recoverable or settled. We recognize the effect on deferred tax assets and liabilities of a change in tax rates as income and expense in the period that includes the enactment date. A valuation allowance is established if it is more likely than not that all or a portion of the deferred tax asset will not be realized. Our tax positions are subject to income tax audits by multiple tax jurisdictions throughout the world. We recognize the tax benefit of an uncertain tax position only if it is more likely than not the position is sustainable upon examination by the taxing authority. We measure the tax benefit recognized as the largest amount of benefit which is more likely than not to be realized upon settlement with the taxing authority. We recognize penalties and interest related to unrecognized tax benefits as income tax expense. We calculate the current and deferred income tax provision based on estimates and assumptions that could differ from the actual results reflected in income tax returns filed in subsequent years and record adjustments based on filed income tax returns when identified. The amount of income taxes paid is subject to examination by U.S. federal, state, and foreign tax authorities. The estimate of the potential outcome of any uncertain tax issue is subject to our assessment of relevant risks, facts, and circumstances existing at that time. To the extent the assessment of such tax position changes, we record the change in estimate in the period in which we make that determination.
Foreign Currency	Foreign Currency Our operations located outside of the United States where the local currency is the functional currency are translated into U.S. dollars using the current rate method. Results of operations are translated at the average rate of exchange for the period. Assets and liabilities are translated at the closing rates on the balance sheet date. Gains and losses on translation of these accounts are accumulated and reported as a separate component of stockholders’ equity and other comprehensive loss. Gains and losses on foreign currency transactions are recognized in the accompanying consolidated statements of operations as a component of Other expense (income), net.
Research and Development	Research and Development Research and development expenses include payroll, employee benefits, and other headcount-related costs associated with product development. Our product utilizes a common codebase, whether accessed by customers via the cloud or via an on-premises installation. Since our software is sold and licensed externally, we consider our software as external-use software for purposes of applying the capitalized software development guidance. Product development costs are expensed as incurred until technological feasibility has been established, which is defined as the completion of all planning, designing, coding, and testing activities necessary to establish products that meet design specifications including functions, features, and technical performance requirements. We have determined technological feasibility for our software products is reached shortly before they are released for sale. Costs incurred after technological feasibility is established are not significant, and accordingly we expense all research and development costs when incurred.
Advertising Expenses	Advertising ExpensesWe expense advertising costs as they are incurred.
Recent Accounting Pronouncements	Recent Accounting Pronouncements We did not adopt any new accounting guidance in 2022 that had a material impact on our consolidated financial statements or disclosures. Additionally, there is no pending accounting guidance that we expect to have a material impact on our consolidated financial statements.
Revenue Recognition	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. If a cloud agreement includes the right for the customer to take possession of the license, 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. 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 service 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 years ended December 31, 2022, 2021, and 2020 was insignificant. Our estimates of variable consideration are also subject to subsequent true-up adjustments and may result in changes to transaction prices; however, such true-up adjustments are not expected to be material. Allocating the Transaction Price Based on Standalone Selling Prices (“SSP”) We allocate the transaction price to each performance obligation in a contract based on its relative SSP. The SSP is the observable price at which we sell the product or service separately. In the absence of observable pricing, we estimate SSP using the residual approach. We establish SSP as follows: 1.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 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.
Fair Value Measurements	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 during the years ended December 31, 2022 and 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 accumulated other comprehensive loss in our consolidated balance sheets.

Accounting Policies (Tables)

12 Months Ended

Dec. 31, 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):


	Year Ended December 31,
	2022		2021		2020
Cash and cash equivalents	$	148,132	$	100,796	$	112,462
Restricted cash, current	2,249		791		—
Restricted cash, non-current	—		2,373		—
Total cash, cash equivalents, and restricted cash	$	150,381	$	103,960	$	112,462

Schedule of Allowance for Doubtful Accounts

Activity in the allowance for doubtful accounts was as follows (in thousands):


	Year Ended December 31,
	2022		2021		2020
Beginning balance	$	1,400	$	1,400	$	600
Additions	1,298		410		984
Less: Write-offs, net of recoveries	(573)		(410)		(184)
Ending balance	$	2,125	$	1,400	$	1,400

Schedule of Capitalized Contract Costs

The following table summarizes the activity of costs to obtain a contract with a customer for the years ended December 31, 2022, and 2021 (in thousands):


	Year Ended December 31,
	2022		2021
Beginning balance	$	73,685	$	52,097
Additional contract costs deferred	49,816		51,283
Amortization of deferred contract costs	(37,517)		(29,695)
Ending balance	$	85,984	$	73,685

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.

Revenue (Tables)

12 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

Schedule of Revenue by Services

The following table summarizes revenue recorded during the years ended December 31, 2022, 2021, and 2020 (in thousands):


	Year Ended December 31,
	2022		2021		2020
Cloud subscriptions	$	236,922	$	179,415	$	129,219
Term license subscriptions	79,753		63,203		51,415
Maintenance and support	23,477		21,120		18,076
Total subscriptions	340,152		263,738		198,710
Professional services	127,839		105,521		105,863
Total revenue	$	467,991	$	369,259	$	304,573

Leases (Tables)

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Schedule of Components of Lease Expense

The following table sets forth the components of lease expense for the years ended December 31, 2022, 2021 and 2020 (in thousands):


	Year Ended December 31,
	2022		2021		2020
Operating lease cost	$	6,950	$	6,619	$	6,649
Finance lease costs:
Amortization of right-of-use assets	—		—		1,242
Interest on lease liabilities	—		—		150
Short-term lease cost	583		149		565
Variable lease cost	3,817		2,713		281
Total	$	11,350	$	9,481	$	8,887

Schedule of Supplemental Balance Sheet Information

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


	As of December 31,
	2022			2021
Right-of-use assets for operating leases	$	37,248		$	27,897

Operating lease liabilities, current	$	8,681		$	8,110
Operating lease liabilities, net of current portion	57,225			48,784
Total operating lease liabilities	$	65,906		$	56,894

Weighted average remaining lease term (in years)	8.4			9.5

Weighted average discount rate	9.4		%	9.5		%

Schedule of Supplemental Cash Flow Information

Supplemental cash flow and expense information related to operating leases for the years ended December 31, 2022 and 2021 is as follows (in thousands):


	Year Ended December 31,
	2022		2021		2020

Operating cash outflows for operating leases	$	7,073	$	7,732	$	3,407
Operating cash outflows for finance leases	—		—		150
Financing cash outflows for finance leases	—		—		3,822

Amortization of operating lease ROU assets	1,495		1,361		1,554
Interest expense on operating lease liabilities	5,406		5,268		1,853

Schedule of Maturities of Operating Lease Liabilities

A summary of our future minimum lease commitments under non-cancellable leases as of December 31, 2022 is as follows (in thousands):


	Operating Leases
2023	$	9,076
2024	11,122
2025	11,409
2026	11,666
2027	11,717
Thereafter	42,513
Total lease payments	97,503
Less: imputed interest	(31,597)
Total	$	65,906

Business Combinations (Tables)

12 Months Ended

Dec. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of Business Acquisitions

The following table summarizes the fair value of the assets acquired and liabilities assumed in connection with the acquisition (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

Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The following table summarizes goodwill balances as of December 31, 2022 and 2021 (in thousands):


	Carrying Amount
Balance as of December 31, 2020	$	4,862
Goodwill acquired, net of measurement period adjustments	24,521
Foreign currency translation adjustments	(1,588)
Balance as of December 31, 2021	$	27,795
Goodwill acquired	—
Foreign currency translation adjustments	(1,446)
Balance as of December 31, 2022	$	26,349

Schedule of Finite-Lived Intangible Assets

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


	As of December 31,
	2022		2021
Developed technology	$	6,893	$	7,271
Customer relationships - Non-Robotic Process Automation (“RPA”)	827		872
Customer relationships - RPA	246		261
Intangible assets, gross	7,966		8,404
Less: Accumulated amortization	(2,715)		(1,260)
Intangible assets, net	$	5,251	$	7,144

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The projected annual amortization expense related to amortizable intangible assets as of December 31, 2022 is as follows (in thousands):


Year Ended December 31,
2023	$	1,471
2024	1,471
2025	1,170
2026	753
2027	92
Thereafter	294
Total projected amortization expense	$	5,251

- 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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
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+ Details

Property and Equipment, net (Tables)

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

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


	As of December 31,
	2022		2021
Leasehold improvements	$	45,959	$	41,005
Office furniture and fixtures	3,476		2,536
Computer hardware	9,689		6,001
Computer software	1,353		1,353
Equipment	242		124
Property and equipment, gross	60,719		51,019
Less: Accumulated depreciation	(18,864)		(14,106)
Property and equipment, net	$	41,855	$	36,913

Accrued Expenses (Tables)

12 Months Ended

Dec. 31, 2022

Payables and Accruals [Abstract]

Schedule of Accrued Expenses

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


	As of December 31,
	2022		2021
Hosting costs	$	2,802	$	1,995
Contract labor costs	1,465		891
Marketing and tradeshow expenses	1,000		1,167
Audit and tax expenses	911		439
Taxes payable	827		550
Legal costs	475		5,511
Reimbursable employee expenses	1,004		870
Third party license fees	1,223		1,066
Capital expenditures	744		379
Other accrued expenses	1,776		2,615
Total	$	12,227	$	15,483

Debt (Tables)

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Schedule of Outstanding Long-Term Debt

The following table summarizes outstanding long-term debt balances (in thousands):


	As of December 31,
	2022		2021

Secured term loan facility	$	119,375	$	—
Less: Debt issuance costs	(1,256)		—
Total long-term debt, net of debt issuance costs	$	118,119	$	—

Long-term debt, current	$	2,740	$	—
Long-term debt, net of current portion	115,379		—
Total long-term debt	$	118,119	$	—

Schedule of Future Long-Term Debt Principal Payments

The following table summarizes the annual maturities of the principal amount of total debt due (in thousands):


Repayment schedule of principal long-term debt as of December 31, 2022
2023	$	3,000
2024	3,750
2025	6,000
2026	6,000
2027	100,625
Total	$	119,375

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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-SubTopic 10
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-Paragraph 1
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+ Details

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Loss Before Income Taxes

For the years ended December 31, 2022, 2021, and 2020, our loss before income taxes was comprised of the following (in thousands):


	Year Ended December 31,
	2022		2021		2020
Domestic	$	(102,434)	$	(48,743)	$	(25,463)
Foreign	(47,794)		(39,120)		(7,131)
Total	$	(150,228)	$	(87,863)	$	(32,594)

Schedule of Components of Income Tax Expense (Benefit)

For the years ended December 31, 2022, 2021, and 2020, our income tax expense (benefit) was comprised of the following (in thousands):


	Year Ended December 31,
	2022		2021		2020
Current:
Federal	$	72	$	15	$	11
State	119		79		79
Foreign	1,409		1,156		977
Total current expense	1,600		1,250		1,067
Deferred:
Federal	—		—		—
State	—		—		—
Foreign	(908)		(472)		(184)
Total deferred benefit	(908)		(472)		(184)
Total income tax expense	$	692	$	778	$	883

Schedule of Reconciliation of Statutory to Effective Income Tax Rate


	Year Ended December 31,
	2022		2021		2020
U.S. federal statutory tax rate	21.0	%	21.0	%	21.0	%
State tax expense	4.1		4.7		18.2
Foreign rate differential	(3.3)		(4.1)		(3.6)
Nondeductible expenses	(0.3)		(0.5)		(0.6)
Foreign tax expense	0.3		(0.2)		—
Equity compensation	1.0		7.0		46.2
Tax credits	4.7		5.0		12.0
Unrecognized tax benefits	(0.9)		(0.9)		(2.2)
Change in tax rate	0.3		(1.2)		—
Other	(0.5)		(0.1)		(1.1)
Deferred adjustments	(0.8)		0.9		(1.7)
Change in valuation allowance	(26.1)		(32.5)		(90.9)
Total	(0.5)	%	(0.9)	%	(2.7)	%

Schedule of Deferred Tax Assets and Liabilities

As of December 31, 2022 and 2021, significant components of our deferred tax assets and liabilities were as follows (in thousands):


	As of December 31,
	2022		2021
Deferred tax assets:
Net operating losses	$	85,442	$	81,499
Tax credits	21,215		15,510
Deferred revenue	416		466
Equity compensation	5,314		4,917
Lease liabilities	17,732		15,089
Accrued compensation	4,510		3,390
Bad debt	656		373
Other accrued expense	16		1,452
Capitalized research and development costs	29,991		—
Other	431		301
Gross deferred tax assets	165,723		122,997
Less: Valuation allowance	(132,581)		(94,399)
Total deferred tax assets	33,142		28,598
Deferred tax liabilities:
Prepaid expenses	(15,309)		(12,576)
Right-of-use assets	(10,056)		(7,361)
Unbilled receivables	—		(1,248)
Depreciation	(4,275)		(3,892)
Intangible assets	(1,540)		(2,102)
Other	(123)		(603)
Total deferred tax liabilities	(31,303)		(27,782)
Net deferred tax assets	$	1,839	$	816

Schedule of Activity Related to Unrecognized Tax Benefit

The following table summarizes the activity related to our unrecognized tax benefit from December 31, 2019 to December 31, 2022 (in thousands):


Balance as of December 31, 2019	$	1,575
Additions for tax positions in current years	702
Additions for tax positions in prior years	—
Reductions due to lapse in statutes of limitations	—
Settlements	—
Balance as of December 31, 2020	2,277
Additions for tax positions in current years	812
Additions for tax positions in prior years	—
Reductions due to lapse in statutes of limitations	—
Settlements	—
Balance as of December 31, 2021	3,089
Additions for tax positions in current years	1,399
Additions for tax positions in prior years	—
Reductions due to lapse in statutes of limitations	—
Settlements	—
Balance as of December 31, 2022	$	4,488

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 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:

Year Ended December 31,

2022

2021

2020

Risk-free interest rate

3.01

Expected term (in years)

Expected volatility

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 years to 4.1 years.

Schedule of Stock Option Activity

The following table summarizes stock option activity for the years ended December 31, 2022, 2021, and 2020:


	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2019	4,458,611	$	12.30	5.8	$	115,501
Granted	—	—
Exercised	(1,001,411)	6.39			81,181
Expired	(1,380)	11.82
Forfeited	(56,580)	11.33
Outstanding at December 31, 2020	3,399,240	14.06		4.9	503,174
Granted	—	—
Exercised	(423,824)	6.55			43,525
Expired	(4,100)	10.54
Forfeited	(17,960)	11.78
Outstanding at December 31, 2021	2,953,356	15.16		4.0	147,812
Granted	700,000	50.63
Exercised	(937,217)	27.14			32,858
Expired	(7,900)	4.06
Forfeited	(10,280)	12.28
Outstanding at December 31, 2022	2,697,959	$	20.25	5.1	$	45,867

Exercisable at December 31, 2022	1,997,959	$	9.60	3.6	$	45,867

Schedule of Restricted Stock Unit Activity

The following table summarizes RSU activity for the years ended December 31, 2022, 2021, and 2020:


	Number of Shares	Weighted Average Grant Date Fair Value
Non-vested and outstanding at December 31, 2019	1,022,835	$	31.39
Granted	589,692	60.47
Vested	(270,609)	31.29
Forfeited	(176,915)	32.01
Non-vested and outstanding at December 31, 2020	1,165,003	46.04
Granted	488,462	108.98
Vested	(354,130)	43.39
Forfeited	(89,806)	62.72
Non-vested and outstanding at December 31, 2021	1,209,529	70.99
Granted	606,203	52.63
Vested	(403,648)	58.63
Forfeited	(221,364)	70.30
Non-vested and outstanding at December 31, 2022	1,190,720	$	65.97

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 years ended December 31, 2022, 2021, and 2020 (in thousands):


	Year Ended December 31,
	2022		2021		2020
RSUs	$	35,290	$	19,382	$	10,745
Stock options	2,790		3,839		4,164
Common stock awards to Board of Directors	750		623		370
Total stock-based compensation expense	$	38,830	$	23,844	$	15,279

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


	Year Ended December 31,
	2022		2021		2020
Cost of revenue
Subscriptions	$	996	$	1,199	$	943
Professional services	5,309		3,131		1,477
Operating expenses
Sales and marketing	9,152		5,426		2,821
Research and development	12,523		5,224		2,718
General and administrative	10,850		8,864		7,320
Total stock-based compensation expense	$	38,830	$	23,844	$	15,279

Basic and Diluted Loss per Common Share (Tables)

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Net Loss Per Share

The following table sets forth the computation of basic and diluted net loss per share for the years ended December 31, 2022, 2021, and 2020 (in thousands, except share and per share data):


	Year Ended December 31,
	2022		2021		2020
Numerator:
Net loss	$	(150,920)	$	(88,641)	$	(33,477)
Denominator:
Weighted average common shares outstanding, basic and diluted	72,455,175		71,036,490		69,050,565
Net loss per share, basic and diluted	$	(2.08)	$	(1.25)	$	(0.48)

Schedule of Securities Excluded From Calculation of Weighted Average Common Shares


	Year Ended December 31,
	2022	2021	2020
Stock options	2,697,959	2,953,356	3,399,240
Non-vested restricted stock units	1,190,720	1,209,529	1,165,003

Segment and Geographic Information (Tables)

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Schedule of Revenue By Geography

The following table summarizes revenue by geography for the years ended December 31, 2022, 2021, and 2020 (in thousands):


	Year Ended December 31,
	2022		2021		2020
Domestic	$	311,075	$	243,562	$	201,483
International	156,916		125,697		103,090
Total	$	467,991	$	369,259	$	304,573

Investments and Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Schedule of Components of Investments

The components of our investments as of December 31, 2022 and 2021 are as follows (in thousands):


	As of December 31, 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	$	39,469	$	—	$	39,469	$	39,469	$	—
U.S. Treasury bonds	Level 1	9,396		(13)		9,383		—		9,383
Commercial paper	Level 2	26,704		—		26,704		—		26,704
Corporate bonds	Level 2	9,353		(12)		9,341		—		9,341
Agency bonds	Level 2	2,432		3		2,435				2,435

Total investments		$	87,354	$	(22)	$	87,332	$	39,469	$	47,863

As of 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 at December 31, 2022 and 2021, by contractual maturity, are as follows (in thousands):


	As of December 31, 2022
	Cost Basis		Fair Value
Due in one year or less	$	87,354	$	87,332
Due after one year through five years	—		—
Total investments	$	87,354	$	87,332


	As of December 31, 2021
	Cost Basis		Fair Value
Due in one year or less	$	93,497	$	93,480
Due after one year through five years	12,049		12,044
Total investments	$	105,546	$	105,524

Accounting Policies - Additional Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) segment agency unit	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Number of operating segments \| segment	1
Number of reportable segments \| segment	1
Number of government agencies \| agency	3
Allowance for doubtful accounts	$ 2,125	$ 1,400	$ 1,400	$ 600
Capitalized contract cost, amortization period	5 years
Commission expense	$ 39,400	32,400	23,300
Number of reporting units \| unit	1
Foreign currency transaction gains (losses)	$ (6,100)	(3,700)	4,300
Advertising expenses	$ 5,800	$ 4,400	$ 6,000
Sales Revenue, Net \| Customer Concentration Risk \| Foreign Customers
Summary Of Significant Accounting Policies [Line Items]
Concentration risk percentage	33.50%	34.00%	33.80%
Sales Revenue, Net \| Customer Concentration Risk \| Government Agencies
Summary Of Significant Accounting Policies [Line Items]
Concentration risk percentage	19.20%	19.60%	18.10%
Sales Revenue, Net \| Customer Concentration Risk \| Federal Government Agencies
Summary Of Significant Accounting Policies [Line Items]
Concentration risk percentage	4.50%	5.60%	6.60%

Accounting Policies - Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Cash and cash equivalents	$ 148,132	$ 100,796	$ 112,462
Restricted cash, current	2,249	791	0
Restricted cash, non-current	0	2,373	0
Total cash, cash equivalents, and restricted cash	$ 150,381	$ 103,960	$ 112,462	$ 159,755

Accounting Policies - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Allowance for Doubtful Accounts Receivable [Roll Forward]
Beginning balance	$ 1,400	$ 1,400	$ 600
Additions	1,298	410	984
Less: Write-offs, net of recoveries	(573)	(410)	(184)
Ending balance	$ 2,125	$ 1,400	$ 1,400

Accounting Policies - Capitalized Contract Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Capitalized Contract Cost [Roll Forward]
Beginning balance	$ 73,685	$ 52,097
Additional contract costs deferred	49,816	51,283
Amortization of deferred contract costs	(37,517)	(29,695)
Ending balance	$ 85,984	$ 73,685

Accounting Policies - Property and Equipment, Useful Life (Details)	12 Months Ended
	Dec. 31, 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

Revenue - Revenue by Services (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 467,991	$ 369,259	$ 304,573
Subscriptions
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	340,152	263,738	198,710
Cloud subscriptions
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	236,922	179,415	129,219
Term license subscriptions
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	79,753	63,203	51,415
Maintenance and support
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	23,477	21,120	18,076
Professional services
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 127,839	$ 105,521	$ 105,863

- 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
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-Subparagraph (b)
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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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

Revenue - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Contract assets balances	$ 14.3	$ 14.0
Revenue recognized	147.0
Unsatisfied performance obligations	376.5
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unsatisfied performance obligations	$ 243.2
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

Leases - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Renewal term (in years)	10 years
Right-of-use assets for operating leases	$ 37,248	$ 27,897
Operating lease liabilities	65,906	56,894
Payments to the finance leases lessor	$ 0	$ 0	$ 3,822

Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Operating lease cost	$ 6,950	$ 6,619	$ 6,649
Amortization of right-of-use assets	0	0	1,242
Interest on lease liabilities	0	0	150
Short-term lease cost	583	149	565
Variable lease cost	3,817	2,713	281
Total	$ 11,350	$ 9,481	$ 8,887

Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Lessee, Operating Lease, Description [Abstract]
Right-of-use assets for operating leases	$ 37,248	$ 27,897
Operating lease liabilities, current	8,681	8,110
Operating lease liabilities, net of current portion	57,225	48,784
Total operating lease liabilities	$ 65,906	$ 56,894
Weighted average remaining lease term (in years)	8 years 4 months 24 days	9 years 6 months
Weighted average discount rate	9.40%	9.50%

Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Operating cash outflows for operating leases	$ 7,073	$ 7,732	$ 3,407
Operating cash outflows for finance leases	0	0	150
Financing cash outflows for finance leases	0	0	3,822
Amortization of operating lease ROU assets	1,495	1,361	1,554
Interest expense on operating lease liabilities	$ 5,406	$ 5,268	$ 1,853

Leases - Future Minimum Operating Lease Commitments (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Operating Leases
2023	$ 9,076
2024	11,122
2025	11,409
2026	11,666
2027	11,717
Thereafter	42,513
Total lease payments	97,503
Less: imputed interest	(31,597)
Total	$ 65,906	$ 56,894

Business Combinations - Additional Information (Details) - Lana Labs - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Aug. 31, 2021	Dec. 31, 2021
Business Combination Segment Allocation [Line Items]
Percentage of interests acquired	100.00%
Acquisition price	$ 30.7
Adjustment to intangibles		$ 0.8
Increase in deferred revenue		0.3
Deferred tax adjustment		0.1
Adjustment to working capital		$ 0.0

Business Combinations - Business Acquisitions (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Aug. 31, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Goodwill	$ 26,349	$ 27,795		$ 4,862
Lana Labs
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 \| Developed technology
Business Acquisition [Line Items]
Finite-lived intangibles			5,974
Lana Labs \| Customer relationships
Business Acquisition [Line Items]
Finite-lived intangibles			$ 750

Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Goodwill [Roll Forward]
Balance as of December 31, 2020	$ 27,795	$ 4,862
Goodwill acquired	0	24,521
Foreign currency translation adjustments	(1,446)	(1,588)
Balance as of December 31, 2022	$ 26,349	$ 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

Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 7,966	$ 8,404
Less: Accumulated amortization	(2,715)	(1,260)
Intangible assets, net	5,251	7,144
Developed technology
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	6,893	7,271
Customer relationships - Non-Robotic Process Automation (“RPA”)
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	827	872
Customer relationships - RPA
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 246	$ 261

Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible amortization expense	$ 1.5	$ 0.8	$ 0.4
Developed technology
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, useful life	3 years 4 months 24 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

Goodwill and Intangible Assets - Amortization of Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
2023	$ 1,471
2024	1,471
2025	1,170
2026	753
2027	92
Thereafter	294
Intangible assets, net	$ 5,251	$ 7,144

Property and Equipment, net - Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 60,719	$ 51,019
Less: Accumulated depreciation	(18,864)	(14,106)
Property and equipment, net of accumulated depreciation of $18,864 and $14,106, respectively	41,855	36,913
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	45,959	41,005
Office furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	3,476	2,536
Computer hardware
Property, Plant and Equipment [Line Items]
Property and equipment, gross	9,689	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	$ 242	$ 124

Property and Equipment, net - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense	$ 5.8	$ 4.9	$ 5.4
Disposal of property plant and equipment		$ 0.0
Computer hardware
Property, Plant and Equipment [Line Items]
Disposal of property plant and equipment	$ 1.0

Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Hosting costs	$ 2,802	$ 1,995
Contract labor costs	1,465	891
Marketing and tradeshow expenses	1,000	1,167
Audit and tax expenses	911	439
Taxes payable	827	550
Legal costs	475	5,511
Reimbursable employee expenses	1,004	870
Third party license fees	1,223	1,066
Capital expenditures	744	379
Other accrued expenses	1,776	2,615
Total	$ 12,227	$ 15,483

Debt - Additional Information (Details) - USD ($)	Nov. 03, 2022	Dec. 31, 2022	Dec. 13, 2022
Revolving Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 50,000,000
Revolving Credit Facility \| Letter of Credit
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	15,000,000
Revolving Credit Facility \| Swingline Sub-facility
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 10,000,000
Secured Debt \| Term Loan Facility
Line of Credit Facility [Line Items]
Debt term	5 years
Aggregate principal amount	$ 100,000,000	$ 120,000,000	$ 20,000,000
Secured Debt \| Term Loan Facility \| Base Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate (as a percent)	0.50%
Line of Credit \| Base Rate \| Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate (as a percent)	1.50%
Line of Credit \| Base Rate \| Minimum \| Measurement Input, EBITDA Multiple
Line of Credit Facility [Line Items]
Basis spread on variable rate (as a percent)	0.50%
Line of Credit \| Base Rate \| Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate (as a percent)	2.50%
Line of Credit \| Base Rate \| Maximum \| Measurement Input, EBITDA Multiple
Line of Credit Facility [Line Items]
Basis spread on variable rate (as a percent)	2.50%
Line of Credit \| SOFR \| Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate (as a percent)	2.50%
Line of Credit \| SOFR \| Minimum \| Measurement Input, EBITDA Multiple
Line of Credit Facility [Line Items]
Basis spread on variable rate (as a percent)	1.50%
Line of Credit \| SOFR \| Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate (as a percent)	3.50%
Line of Credit \| SOFR \| Maximum \| Measurement Input, EBITDA Multiple
Line of Credit Facility [Line Items]
Basis spread on variable rate (as a percent)	3.50%
Line of Credit \| Revolving Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility, additional borrowing capacity			$ 10,000,000

Debt - Outstanding Long-Term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Debt Disclosure [Abstract]
Secured term loan facility	$ 119,375	$ 0
Less: Debt issuance costs	(1,256)	0
Total long-term debt	118,119	0
Long-term debt, current	2,740	0
Long-term debt, net of current portion	$ 115,379	$ 0

- Definition

Amount, excluding unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

Debt - Future Long-Term Debt Principal Payments (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Debt Disclosure [Abstract]
2023	$ 3,000
2024	3,750
2025	6,000
2026	6,000
2027	100,625
Total	$ 119,375	$ 0

Income Taxes - Loss Before Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Domestic	$ (102,434)	$ (48,743)	$ (25,463)
Foreign	(47,794)	(39,120)	(7,131)
Loss before income taxes	$ (150,228)	$ (87,863)	$ (32,594)

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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-Section 25
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=126941158&loc=d3e41242-110953

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(10))
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

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-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(8))
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 1
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Reference 9: http://www.xbrl.org/2003/role/exampleRef
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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(15))
-URI https://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ Details

Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Current:
Federal	$ 72	$ 15	$ 11
State	119	79	79
Foreign	1,409	1,156	977
Total current expense	1,600	1,250	1,067
Deferred:
Federal	0	0	0
State	0	0	0
Foreign	(908)	(472)	(184)
Total deferred benefit	(908)	(472)	(184)
Total income tax expense	$ 692	$ 778	$ 883

Income Taxes - Reconciliation of Statutory to Effective Income Tax Rate (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
U.S. federal statutory tax rate	21.00%	21.00%	21.00%
State tax expense	4.10%	4.70%	18.20%
Foreign rate differential	(3.30%)	(4.10%)	(3.60%)
Nondeductible expenses	(0.30%)	(0.50%)	(0.60%)
Foreign tax expense	0.30%	(0.20%)	0.00%
Equity compensation	1.00%	7.00%	46.20%
Tax credits	4.70%	5.00%	12.00%
Unrecognized tax benefits	(0.90%)	(0.90%)	(2.20%)
Change in tax rate	0.30%	(1.20%)	0.00%
Other	(0.50%)	(0.10%)	(1.10%)
Deferred adjustments	(0.80%)	0.90%	(1.70%)
Change in valuation allowance	(26.10%)	(32.50%)	(90.90%)
Total	(0.50%)	(0.90%)	(2.70%)

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Operating Loss Carryforwards [Line Items]
Effective tax rate	(0.50%)	(0.90%)	(2.70%)
Tax expense attributable to the change in valuation allowance	$ 39,200
Favorable excess tax benefits for equity compensation and research credits	8,600
Federal NOL carryforwards subject to expiration	16,900
Capitalized research and development costs	29,991	$ 0
Operating loss carryforwards, state, tax effected	14,800	14,100
Net change in total valuation allowance	38,200
Valuation allowance	132,581	94,399
Unrecognized tax benefits	4,488	3,089	$ 2,277	$ 1,575
Unrecognized tax benefits that would affect effective tax rate if recognized	0	0
Switzerland \| Tax Year 2015
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	(8,100)
Domestic Tax Authority
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	237,700	239,900
Federal NOL carryforwards not subject to expiration	220,800
Federal tax credit carryforwards	19,300	13,700
State and Local Jurisdiction
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	256,300	249,800
Foreign Tax Authority \| Switzerland
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	163,400	$ 126,600
Valuation allowance	18,700
Foreign Tax Authority \| Germany
Operating Loss Carryforwards [Line Items]
Valuation allowance	$ (1,100)

Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Deferred tax assets:
Net operating losses	$ 85,442	$ 81,499
Tax credits	21,215	15,510
Deferred revenue	416	466
Equity compensation	5,314	4,917
Lease liabilities	17,732	15,089
Accrued compensation	4,510	3,390
Bad debt	656	373
Other accrued expense	16	1,452
Capitalized research and development costs	29,991	0
Other	431	301
Gross deferred tax assets	165,723	122,997
Less: Valuation allowance	(132,581)	(94,399)
Total deferred tax assets	33,142	28,598
Deferred tax liabilities:
Prepaid expenses	(15,309)	(12,576)
Right-of-use assets	(10,056)	(7,361)
Unbilled receivables	0	(1,248)
Depreciation	(4,275)	(3,892)
Intangible assets	(1,540)	(2,102)
Other	(123)	(603)
Total deferred tax liabilities	(31,303)	(27,782)
Net deferred tax assets	$ 1,839	$ 816

Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Reconciliation of Unrecognized Tax Benefits [Roll Forward]
Beginning balance	$ 3,089	$ 2,277	$ 1,575
Additions for tax positions in current years	1,399	812	702
Additions for tax positions in prior years	0	0	0
Reductions due to lapse in statutes of limitations	0	0	0
Settlements	0	0	0
Ending balance	$ 4,488	$ 3,089	$ 2,277

Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	May 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option granted (in shares)		700,000	0	0
Exercise price of stock options granted (in usd per share)		$ 50.63	$ 0	$ 0
Service period (in years)		5 years 1 month 6 days	4 years	4 years 10 months 24 days	5 years 9 months 18 days
Vested in period, value		$ 0.9	$ 10.8	$ 2.8
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		$ 58.3
Weighted average remaining vesting period		1 year 7 months 6 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)		2,839,475
2017 Equity Incentive Plan \| Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option granted (in shares)	700,000
Exercise price of stock options granted (in usd per share)	$ 50.63
Fair value of options at grant date		$ 18.8
Compensation cost related to nonvested stock options not yet recognized		$ 16.0
Unrecognized compensation cost related to nonvested stock option recognized over weighted average period, in years		3 years 2 months 8 days
2017 Equity Incentive Plan \| Chief Executive Officer \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Service period (in years)	4 years 1 month 6 days
2017 Equity Incentive Plan \| Chief Executive Officer \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Service 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 \| Class A Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available to be issued (in shares)		7,196,149				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

Stock-Based Compensation - Assumptions Used to Estimate Fair Value of Stock Options (Details)	1 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Service period (in years)		5 years 1 month 6 days	4 years	4 years 10 months 24 days	5 years 9 months 18 days
2017 Equity Incentive Plan \| Chief Executive Officer \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Service period (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]
Service period (in years)	4 years 1 month 6 days
2017 Equity Incentive Plan \| Stock options \| Chief Executive Officer
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%

Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Number of Shares
Outstanding at beginning of period (in shares)	2,953,356	3,399,240	4,458,611
Granted (in shares)	700,000	0	0
Exercised (in shares)	(937,217)	(423,824)	(1,001,411)
Expired (in shares)	(7,900)	(4,100)	(1,380)
Forfeited (in shares)	(10,280)	(17,960)	(56,580)
Outstanding at ending of period (in shares)	2,697,959	2,953,356	3,399,240	4,458,611
Exercisable at end of period (in shares)	1,997,959
Weighted Average Exercise Price
Outstanding at beginning of period (in usd per shares)	$ 15.16	$ 14.06	$ 12.30
Granted (in usd per share)	50.63	0	0
Exercised (in usd per share)	27.14	6.55	6.39
Expired (in usd per share)	4.06	10.54	11.82
Forfeited (in usd per share)	12.28	11.78	11.33
Outstanding at ending balance (in usd per share)	20.25	$ 15.16	$ 14.06	$ 12.30
Exercisable at end of period (in usd per share)	$ 9.60
Weighted Average Remaining Contractual Term (Years)
Outstanding (in years)	5 years 1 month 6 days	4 years	4 years 10 months 24 days	5 years 9 months 18 days
Exercisable at end of period (in years)	3 years 7 months 6 days
Aggregate Intrinsic Value (in thousands)
Outstanding	$ 45,867	$ 147,812	$ 503,174	$ 115,501
Exercised	32,858	$ 43,525	$ 81,181
Exercisable at end of period	$ 45,867

Stock-Based Compensation - Restricted Stock Unit Activity (Details) - Non-vested restricted stock units - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Number of Shares
Non-vested and outstanding at beginning balance (in shares)	1,209,529	1,165,003	1,022,835
Granted (in shares)	606,203	488,462	589,692
Vested (in shares)	(403,648)	(354,130)	(270,609)
Forfeited (in shares)	(221,364)	(89,806)	(176,915)
Non-vested and outstanding at ending balance (in shares)	1,190,720	1,209,529	1,165,003
Weighted Average Grant Date Fair Value
Non-vested and outstanding at beginning balance (in usd per share)	$ 70.99	$ 46.04	$ 31.39
Granted (in usd per share)	52.63	108.98	60.47
Vested (in usd per share)	58.63	43.39	31.29
Forfeited (in usd per share)	70.30	62.72	32.01
Non-vested and outstanding at ending balance (in usd per share)	$ 65.97	$ 70.99	$ 46.04

Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 38,830	$ 23,844	$ 15,279
RSUs
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	35,290	19,382	10,745
Stock options
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	2,790	3,839	4,164
Common stock awards to Board of Directors
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 750	$ 623	$ 370

Stock-Based Compensation - Stock-based Compensation Expense Included in Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 38,830	$ 23,844	$ 15,279
Subscriptions
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	996	1,199	943
Professional services
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	5,309	3,131	1,477
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	9,152	5,426	2,821
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	12,523	5,224	2,718
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 10,850	$ 8,864	$ 7,320

Stockholders' Equity (Details)	12 Months Ended
Stockholders' Equity (Details)	Dec. 31, 2022 vote $ / shares shares	Dec. 31, 2021 $ / shares shares
Class A Common Stock
Class of Stock [Line Items]
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, par value (in usd per share) \| $ / shares	$ 0.0001	$ 0.0001
Common stock, shares issued (in shares)	41,320,091	39,964,298
Common stock, shares outstanding (in shares)	41,320,091	39,964,298
Number of votes entitled to stockholders per share \| vote	1
Conversion of stock (in shares)	1
Maximum percentage of aggregate voting power of capital stock which triggers conversion of stock	10.00%
Class B Common Stock
Class of Stock [Line Items]
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, par value (in usd per share) \| $ / shares	$ 0.0001	$ 0.0001
Common stock, shares issued (in shares)	31,497,796	31,497,796
Common stock, shares outstanding (in shares)	31,497,796	31,497,796
Number of votes entitled to stockholders per share \| vote	10

Basic and Diluted Loss per Common Share - Computation of Net Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Numerator:
Net loss	$ (150,920)	$ (88,641)	$ (33,477)
Denominator:
Weighted average common shares outstanding, basic (in shares)	72,455,175	71,036,490	69,050,565
Weighted average common shares outstanding, diluted (in shares)	72,455,175	71,036,490	69,050,565
Net loss per share, basic (in usd per share)	$ (2.08)	$ (1.25)	$ (0.48)
Net loss per share, diluted (in usd per share)	$ (2.08)	$ (1.25)	$ (0.48)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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- Definition

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

+ References

+ Details

Basic and Diluted Loss per Common Share - Securities Excluded From Calculation of Weighted Average Common Shares Outstanding (Details) - shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities outstanding (in shares)	2,697,959	2,953,356	3,399,240
Non-vested restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities outstanding (in shares)	1,190,720	1,209,529	1,165,003

Commitments and Contingencies (Details) - USD ($)				12 Months Ended
Commitments and Contingencies (Details) - USD ($)	Sep. 16, 2022	Sep. 15, 2022	May 10, 2022	Dec. 31, 2022	Dec. 31, 2021	Jul. 31, 2021
Loss Contingencies [Line Items]
Purchase obligation						$ 131,000,000
Purchase obligation, to be paid, year one						22,000,000
Purchase obligation, to be paid, year two						25,000,000
Purchase obligation, to be paid, year three						28,000,000
Purchase obligation, to be paid, year four						28,000,000
Purchase obligation, to be paid, year five						$ 28,000,000
Payments for purchase obligation				$ 33,100,000
Outstanding letters of credit				$ 12,000,000	$ 11,200,000
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

Segment and Geographic Information - Additional Information (Details) - segment	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2020
Segment Reporting Information [Line Items]
Number of operating segments	1
Number of reportable segments	1
Sales Revenue, Net \| Geographic Concentration Risk \| United Kingdom
Segment Reporting Information [Line Items]
Concentration risk, percentage		12.50%

Segment and Geographic Information - Revenues By Geography (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 467,991	$ 369,259	$ 304,573
Domestic
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	311,075	243,562	201,483
International
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 156,916	$ 125,697	$ 103,090

- Definition

+ References

+ Details

Retirement Plans (Details) - USD ($) $ in Millions	12 Months Ended
Retirement Plans (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Retirement Benefits [Abstract]
Maximum annual contributions per employee (in percent)	75.00%
Employer matching contribution, percentage of the employee's contribution	100.00%
Employer matching contribution, percentage of the employee's gross compensation	4.00%
Vesting term of employer contribution	4 years
Contribution expense related to employer matching contributions	$ 11.5	$ 8.7	$ 6.8

Investments and Fair Value Measurements - Components of Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Cost Basis	$ 87,354	$ 105,546
Unrealized Gains (Losses)	(22)	(22)
Market Value	87,332	105,524
Cash and Cash Equivalents
Debt Securities, Available-for-sale [Line Items]
Market Value	39,469	38,301
Short-term Investments and Marketable Securities
Debt Securities, Available-for-sale [Line Items]
Market Value	47,863	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	39,469	38,301
Unrealized Gains (Losses)	0	0
Market Value	39,469	38,301
Level 1 \| Money market fund \| Cash and Cash Equivalents
Debt Securities, Available-for-sale [Line Items]
Market Value	39,469	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. Treasury bonds
Debt Securities, Available-for-sale [Line Items]
Cost Basis	9,396	8,171
Unrealized Gains (Losses)	(13)	0
Market Value	9,383	8,171
Level 1 \| U.S. Treasury bonds \| Cash and Cash Equivalents
Debt Securities, Available-for-sale [Line Items]
Market Value	0	0
Level 1 \| U.S. Treasury bonds \| Short-term Investments and Marketable Securities
Debt Securities, Available-for-sale [Line Items]
Market Value	9,383	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	26,704	23,312
Unrealized Gains (Losses)	0	0
Market Value	26,704	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	26,704	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	9,353	20,107
Unrealized Gains (Losses)	(12)	(14)
Market Value	9,341	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	9,341	8,049
Level 2 \| Corporate bonds \| Long-term Investments
Debt Securities, Available-for-sale [Line Items]
Market Value		12,044
Level 2 \| Agency bonds
Debt Securities, Available-for-sale [Line Items]
Cost Basis	2,432
Unrealized Gains (Losses)	3
Market Value	2,435
Level 2 \| Agency bonds \| Cash and Cash Equivalents
Debt Securities, Available-for-sale [Line Items]
Market Value
Level 2 \| Agency bonds \| Short-term Investments and Marketable Securities
Debt Securities, Available-for-sale [Line Items]
Market Value	$ 2,435
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

Investments and Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]
Interest income on investment	$ 0.9
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets	$ 0.0	$ 0.0

Investments and Fair Value Measurements - Amortized Cost Basis and Fair Value of Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Cost Basis
Due in one year or less	$ 87,354	$ 93,497
Due after one year through five years	0	12,049
Cost Basis	87,354	105,546
Fair Value
Due in one year or less	87,332	93,480
Due after one year through five years	0	12,044
Fair Value	$ 87,332	$ 105,524