All Questions

Could you please update investors on the trends in your dollar-based net expansion rate (“DBNE”)?

May 10, 2017

As of December 31, 2016, our annual DBNE was 113% for our property manager customers, and 99% for our law firm customers. This compares to 115% and 99%, respectively, as of December 31, 2015. Our ability to maintain and grow relationships with our existing customers can be measured by our annual DBNE for a given fiscal year, which compares the revenue generated from the sale of our core solutions and Value+ services in that year (e.g., 2016) and the preceding year, or base year (e.g., 2015), from our base customers. For this purpose, we establish our base customers by determining the customers from which we generated revenues during the month of December in the year preceding the base year (e.g., December 2014). We then calculate our annual DBNE for a given fiscal year by dividing (x) revenue generated from the sale of our core solutions and Value+ services in the given fiscal year (e.g., 2016) from our base customers by (y) revenue generated from the sale of our core solutions and Value+ services in the base year (e.g., 2015) from our base customers.

All Questions

Submit a Question

Interested in getting in touch with AppFolio? Fill out the form below.

First Name *
 
Last Name *
 
Company Name *
 
Email Address *
 
Question *