APPFOLIO INC Q4 FY2024 earnings call

• Delivered value through differentiated innovation and strong execution, with fourth quarter revenue growth and full year operating margin doubling. - Inaugural Future conference in San Diego with 2,200 attendees showcasing industry leadership and AI vision. - Acquisition of LiveEasy to accelerate resident industry segment, integration progressing well. - Strategic pillars: Differentiate to win with Realm-X and smart maintenance advancements; Deliver value efficiently with customers switching to and growing on AppFolio's plans; Great people and culture recognized by Forbes lists.

Fourth quarter revenue grew 19% year-over-year to $204 million, resulting in a 28% annual increase to $794 million. Core solutions revenue was $47.6 million in the fourth quarter, a 15% year-over-year increase. Fourth quarter revenue from value-added services grew 20% year-over-year to $153 million. Full year value-added services revenue growth was 33%. Other revenue includes revenue from the LiveEasy acquisition. At the end of the year, approximately 8.7 million units were managed from 20,784 customers compared to 8.2 million units from 19,737 customers a year earlier, representing a 6% increase in ending units and a 5% increase in customers. Cost of revenue exclusive of depreciation and amortization in the fourth quarter was 37% of revenue compared to 35% last year. For the full year, operating expenses as a percentage of revenue declined from 46% in 2023 to 38% in 2024.

• 2025 annual revenue guidance: $920 million to $940 million, implying 17% growth midpoint. - Non-GAAP operating margin expected between 24.5% and 26.5%. - Diluted weighted average shares outstanding anticipated to be approximately 37 million. - Expect to continue growing customers and units under management, and ARPU. - High interest rate environment to limit current customers' portfolio expansion. - 2025 revenue seasonality mostly consistent with 2024. - Cost of revenue exclusive of depreciation and amortization expected relatively flat as percentage of revenue. - 2025 ending head count projected to grow with investment in high priority initiatives but at a rate less than revenue growth.

• Comments contain forward-looking statements subject to risks and uncertainties, actual results could differ materially from forward-looking statements. - Risks listed in SEC filings, including those in Form 10-K for fiscal year ended December 31, 2023.