0001433195-24-000127 | 10-Q | XBRL Viewer

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Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Liability to Landlord Insurance We have a wholly owned subsidiary, Terra Mar Insurance Company, Inc., which was established in connection with reinsuring liability to landlord insurance policies offered to our customers by our third-party service provider. We assume a 100% quota share of the liability to landlord insurance policies placed with our customers by our third-party service provider. We accrue for reported claims, and include an estimate of losses incurred but not reported by our property manager customers, in cost of revenue because we bear the risk related to all such claims. Our estimated liability for reported claims and incurred but not reported claims as of September 30, 2024 and December 31, 2023 was $3.5 million and $4.2 million, respectively, and is included in Other current liabilities on our Condensed Consolidated Balance Sheets. Included in Prepaid expenses and other current assets as of September 30, 2024 and December 31, 2023 are $3.8 million and $5.1 million, respectively, of deposits held with a third party related to requirements to maintain collateral for this insurance service. Legal Proceedings From time to time, we are involved in various other investigative inquiries, legal proceedings and disputes arising from or related to matters incident to the ordinary course of our business activities, including actions with respect to intellectual property, employment, labor, regulatory and contractual matters. Although the ultimate outcome of such investigative inquiries, legal proceedings and other disputes cannot be predicted with certainty, we do not believe that any such pending investigative inquiries, legal proceedings and other disputes, 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. Indemnification In the ordinary course of business, we may provide indemnification of varying scope and terms to customers, business partners, investors, directors, officers, and other parties with respect to certain matters, including, but not limited to, losses arising out of our breach of any applicable agreements, intellectual property infringement claims made by third parties, and other liabilities relating to or arising from our services or our acts or omissions. These indemnification provisions may survive termination of the underlying agreement and the maximum potential amount of future payments we could be required to make under these indemnification provisions may not be subject to maximum loss clauses and is indeterminable. We have not incurred any costs as a result of such indemnification obligations and have not recorded any liabilities related to such obligations in the Condensed Consolidated Financial Statements.

Capitalized Software Development Costs, net (Tables)

9 Months Ended

Sep. 30, 2024

Research and Development [Abstract]

Schedule of Capitalized Computer Software

Capitalized software development costs were as follows (in thousands):


	September 30, 2024		December 31, 2023
Capitalized software development costs, gross	$	124,075	$	126,606
Less: Accumulated amortization	(107,745)		(105,044)
Capitalized software development costs, net	$	16,330	$	21,562

Schedule of Capitalized Computer Software Future Amortization Expense

Future amortization expense with respect to capitalized software development costs as of September 30, 2024 is estimated as follows (in thousands):


Years Ending December 31,
2024	$	2,551
2025	7,583
2026	3,965
2027	2,231

Total amortization expense	$	16,330

Revenue and Other Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Total revenue	$ 205,733	$ 165,440	$ 590,538	$ 448,615
Core solutions
Disaggregation of Revenue [Line Items]
Total revenue	46,030	39,756	132,974	115,440
Value Added Services
Disaggregation of Revenue [Line Items]
Total revenue	157,726	123,188	451,677	326,108
Other
Disaggregation of Revenue [Line Items]
Total revenue	$ 1,977	$ 2,496	$ 5,887	$ 7,067

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- 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.

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+ Details

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock Class A common stock	Common Stock Class B common stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Treasury Stock	Retained Earnings
Beginning balance (in shares) at Dec. 31, 2022		20,569	14,746
Beginning balance at Dec. 31, 2022	$ 265,546	$ 2	$ 2	$ 209,704	$ (1,684)	$ (25,756)	$ 83,278
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)		64
Exercise of stock options	834			834
Stock-based compensation	14,075			14,075
Vesting of restricted stock units, net of shares withheld for taxes (in shares)		79
Vesting of restricted stock units, net of shares withheld for taxes	(5,539)			(5,539)
Conversion of Class B common stock to Class A common stock (in shares)		27	(27)
Issuance of restricted stock awards (in shares)		2
Other comprehensive income (loss)	763				763
Net Income (loss)	(35,110)						(35,110)
Ending balance (in shares) at Mar. 31, 2023		20,741	14,719
Ending balance at Mar. 31, 2023	240,569	$ 2	$ 2	219,074	(921)	(25,756)	48,168
Beginning balance (in shares) at Dec. 31, 2022		20,569	14,746
Beginning balance at Dec. 31, 2022	265,546	$ 2	$ 2	209,704	(1,684)	(25,756)	83,278
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income (loss)	1,675
Net Income (loss)	(27,566)
Ending balance (in shares) at Sep. 30, 2023		21,644	14,117
Ending balance at Sep. 30, 2023	262,656	$ 2	$ 2	232,705	(9)	(25,756)	55,712
Beginning balance (in shares) at Mar. 31, 2023		20,741	14,719
Beginning balance at Mar. 31, 2023	240,569	$ 2	$ 2	219,074	(921)	(25,756)	48,168
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)		95
Exercise of stock options	668			668
Stock-based compensation	11,000			11,000
Vesting of restricted stock units, net of shares withheld for taxes (in shares)		82
Vesting of restricted stock units, net of shares withheld for taxes	(7,717)			(7,717)
Issuance of restricted stock awards (in shares)		4
Other comprehensive income (loss)	334				334
Net Income (loss)	(18,901)						(18,901)
Ending balance (in shares) at Jun. 30, 2023		20,922	14,719
Ending balance at Jun. 30, 2023	225,953	$ 2	$ 2	223,025	(587)	(25,756)	29,267
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)		59
Exercise of stock options	683			683
Stock-based compensation	15,508			15,508
Vesting of restricted stock units, net of shares withheld for taxes (in shares)		61
Vesting of restricted stock units, net of shares withheld for taxes	(6,511)			(6,511)
Conversion of Class B common stock to Class A common stock (in shares)		602	(602)
Other comprehensive income (loss)	578				578
Net Income (loss)	26,445						26,445
Ending balance (in shares) at Sep. 30, 2023		21,644	14,117
Ending balance at Sep. 30, 2023	262,656	$ 2	$ 2	232,705	(9)	(25,756)	55,712
Beginning balance (in shares) at Dec. 31, 2023		21,749	14,116
Beginning balance at Dec. 31, 2023	297,312	$ 2	$ 2	236,985	99	(25,756)	85,980
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)		244
Exercise of stock options	3,874			3,874
Stock-based compensation	13,646			13,646
Vesting of restricted stock units, net of shares withheld for taxes (in shares)		89
Vesting of restricted stock units, net of shares withheld for taxes	(14,086)			(14,086)
Conversion of Class B common stock to Class A common stock (in shares)		199	(199)
Other comprehensive income (loss)	(214)				(214)
Net Income (loss)	38,663						38,663
Ending balance (in shares) at Mar. 31, 2024		22,281	13,917
Ending balance at Mar. 31, 2024	339,195	$ 2	$ 2	240,419	(115)	(25,756)	124,643
Beginning balance (in shares) at Dec. 31, 2023		21,749	14,116
Beginning balance at Dec. 31, 2023	$ 297,312	$ 2	$ 2	236,985	99	(25,756)	85,980
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)	250
Other comprehensive income (loss)	$ 376
Net Income (loss)	101,334
Ending balance (in shares) at Sep. 30, 2024		23,079	13,253
Ending balance at Sep. 30, 2024	412,827	$ 2	$ 2	250,790	475	(25,756)	187,314
Beginning balance (in shares) at Mar. 31, 2024		22,281	13,917
Beginning balance at Mar. 31, 2024	339,195	$ 2	$ 2	240,419	(115)	(25,756)	124,643
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)		3
Exercise of stock options	25			25
Stock-based compensation	15,032			15,032
Vesting of restricted stock units, net of shares withheld for taxes (in shares)		71
Vesting of restricted stock units, net of shares withheld for taxes	(12,436)			(12,436)
Conversion of Class B common stock to Class A common stock (in shares)		644	(644)
Other comprehensive income (loss)	(69)				(69)
Net Income (loss)	29,665						29,665
Ending balance (in shares) at Jun. 30, 2024		22,999	13,273
Ending balance at Jun. 30, 2024	371,412	$ 2	$ 2	243,040	(184)	(25,756)	154,308
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)		3
Exercise of stock options	14			14
Stock-based compensation	16,315			16,315
Vesting of restricted stock units, net of shares withheld for taxes (in shares)		57
Vesting of restricted stock units, net of shares withheld for taxes	(8,579)			(8,579)
Conversion of Class B common stock to Class A common stock (in shares)		20	(20)
Other comprehensive income (loss)	659				659
Net Income (loss)	33,006						33,006
Ending balance (in shares) at Sep. 30, 2024		23,079	13,253
Ending balance at Sep. 30, 2024	$ 412,827	$ 2	$ 2	$ 250,790	$ 475	$ (25,756)	$ 187,314

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation and Significant Accounting Policies	Basis of Presentation and Significant Accounting Policies The accompanying unaudited Condensed Consolidated Financial Statements were prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. Accordingly, these Condensed Consolidated Financial Statements should be read in conjunction with our audited consolidated financial statements and the related notes included in our Annual Report, which was filed with the SEC on February 1, 2024. The year-end condensed balance sheet was derived from our audited consolidated financial statements. Our unaudited interim Condensed Consolidated Financial Statements include, in the opinion of management, all adjustments, consisting of normal and recurring items, necessary for the fair statement of our Condensed Consolidated Financial Statements.
Reclassification	Reclassification We reclassified certain amounts in our Condensed Consolidated Statements of Cash Flows within the cash flows from operating activities section in the prior year to conform to the current year's presentation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenue, expenses, other income, and provision for income taxes during the reporting period. Assets and liabilities which are subject to judgment and use of estimates include the fair value of financial instruments, capitalized software development costs, period of benefit associated with deferred costs, incremental borrowing rate used to measure operating lease liabilities, the recoverability of goodwill and long-lived assets, income taxes, useful lives associated with property and equipment and intangible assets, contingencies, assumptions underlying performance-based compensation (whether cash or stock-based), and assumptions underlying stock-based compensation. Actual results could differ from those estimates and any such differences may have a material impact on our Condensed Consolidated Financial Statements.
Net Income (Loss) per Common Share	Net Income (Loss) per Common Share Net income (loss) per common share was the same for shares of our Class A and Class B common stock because they are entitled to the same liquidation and dividend rights and are therefore combined in the table below.

Workforce Reduction - Additional Information (Details) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2024 employee	Dec. 31, 2023 USD ($)	Sep. 30, 2023 employee	Sep. 30, 2024 employee	Sep. 30, 2023 USD ($)
Restructuring and Related Activities [Abstract]
Workforce reduction, expected number of positions eliminated			149
Workforce reduction, number of positions eliminated	0			0
Payments for severance \| $		$ 7,600			$ 1,801

Investment Securities and Fair Value Measurements - Additional Information (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Fair Value Disclosures [Abstract]
Allowance for credit losses, available-for sale investments	$ 0	$ 0
Non-marketable debt securities	$ 1,300,000

Revenue and Other Information

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue and Other Information

The following table presents our revenue categories for the three and nine months ended September 30, 2024 and 2023 (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Core solutions	$	46,030	$	39,756	$	132,974	$	115,440
Value Added Services	157,726		123,188		451,677		326,108
Other	1,977		2,496		5,887		7,067
Total revenue	$	205,733	$	165,440	$	590,538	$	448,615

Our revenue is generated primarily from customers in the United States. All of our property and equipment is located in the United States.

- 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

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+ Details

Accrued Employee Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Compensation Related Costs [Abstract]
Accrued vacation	$ 13,772	$ 12,399
Accrued bonuses	7,256	14,795
Accrued payroll, severance and related personnel cost	12,597	8,373
Total accrued employee expenses	$ 33,625	$ 35,567

Leases

9 Months Ended

Sep. 30, 2024

Leases [Abstract]

Leases

Operating leases for our corporate offices have remaining lease terms ranging from seven years to nine years, some of which include options to extend the leases for up to ten years. These options to extend have not been recognized as part of our operating lease right-of-use assets and lease liabilities as it is not reasonably certain that we will exercise these options. Our lease agreements do not contain any residual value guarantees or material restrictive covenants. Certain leases contain provisions for property-related costs that are variable in nature for which we are responsible, including common area maintenance, which are expensed as incurred.

The components of lease expense recognized in the Condensed Consolidated Statements of Operations were as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Operating lease cost	$	1,024	$	1,027	$	3,167	$	3,303
Variable lease cost	335		372		989		1,393
Total lease cost	$	1,359	$	1,399	$	4,156	$	4,696

Lease-related assets and liabilities were as follows (in thousands):


	September 30, 2024		December 31, 2023
Assets

Operating lease right-of-use assets	$	17,744	$	19,285

Liabilities
Other current liabilities	$	3,141	$	3,626
Operating lease liabilities	38,402		41,114
Total lease liabilities	$	41,543	$	44,740

In January 2023, we entered into an amendment to the lease agreement for our San Diego facility. We remeasured the lease liability and recorded a reduction to the lease liability and right-of-use asset using the discount rate at the modification date, which resulted in a gain of $2.4 million in the Condensed Consolidated Statements of Operations.

In June 2023, we entered into a second amendment to reduce the rentable square footage and our future rental payment obligations under the San Diego Lease pursuant to which we made a one-time payment of $2.9 million. We again remeasured the lease liability and recorded a reduction to the lease liability using the discount rate at the modification date. As a result, we recorded a gain of $1.9 million in the Consolidated Statements of Operations.

In July 2023, we entered into an agreement to sublet one of our office spaces in Santa Barbara through December 31, 2031 (the "Santa Barbara 90 Sublease"). The total rental commitment over the term of the Santa Barbara 90 Sublease is $6.1 million. We performed impairment testing in accordance with ASC 360, and no impairment related to the right-of-use assets was recorded for the three months ended September 30, 2023.

Future minimum lease payments under non-cancellable leases as of September 30, 2024 were as follows (in thousands):


Years ending December 31,
2024	$	526
2025	6,168
2026	6,345
2027	6,528
2028	6,717
Thereafter	24,373
Total future minimum lease payments	50,657
Less: imputed interest	(9,114)
Total	$	41,543

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income tax expenses	$ 13,576	$ (24,973)	$ 21,834	$ 4,634
Effective tax rate, percent	29.10%		17.70%

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

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-Paragraph 1
-Subparagraph (SAB Topic 6.I.7)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 8
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-8

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-10

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(9))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477250/944-220-S99-1

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Section 45
-Paragraph 2
-Subparagraph (a)
-SubTopic 20
-Topic 740
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482659/740-20-45-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h))
-SubTopic 10
-Topic 235
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

+ Details

Workforce Reduction (Tables)

9 Months Ended

Sep. 30, 2024

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs

The following table presents the total severance and related personnel costs by function, for the three and nine months ended September 30, 2023 (in thousands):


	Severance and Related Personnel Cost
Cost of revenue	$	2,367
Sales and marketing	3,795
Research and product development	3,407
General and administrative	2,514
Total(1)	$	12,083

(1) Total severance and related personnel costs include $1.8 million of accelerated stock-based compensation expense recognized during the three months ended September 30, 2023.

Schedule of Restructuring Reserve by Type of Cost

The following is a summary of changes in the accrued severance and related personnel cost, within Accrued Employee Expenses on the Condensed Consolidated Balance Sheets (in thousands):


	Accrued Severance and Related Personnel Cost
Balance as of December 31, 2022	$	—
Severance and related personnel cost	10,278
Cash Payments	(1,801)

Balance as of September 30, 2023	$	8,477

Leases (Tables)

9 Months Ended

Sep. 30, 2024

Leases [Abstract]

Schedule of Components of Lease Expense

The components of lease expense recognized in the Condensed Consolidated Statements of Operations were as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Operating lease cost	$	1,024	$	1,027	$	3,167	$	3,303
Variable lease cost	335		372		989		1,393
Total lease cost	$	1,359	$	1,399	$	4,156	$	4,696

Schedule of Lease Assets and Liabilities

Lease-related assets and liabilities were as follows (in thousands):


	September 30, 2024		December 31, 2023
Assets

Operating lease right-of-use assets	$	17,744	$	19,285

Liabilities
Other current liabilities	$	3,141	$	3,626
Operating lease liabilities	38,402		41,114
Total lease liabilities	$	41,543	$	44,740

Schedule of Minimum Lease Payments Under Leases

Future minimum lease payments under non-cancellable leases as of September 30, 2024 were as follows (in thousands):


Years ending December 31,
2024	$	526
2025	6,168
2026	6,345
2027	6,528
2028	6,717
Thereafter	24,373
Total future minimum lease payments	50,657
Less: imputed interest	(9,114)
Total	$	41,543

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Basis of Presentation and Significant Accounting Policies

The accompanying unaudited Condensed Consolidated Financial Statements were prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. Accordingly, these Condensed Consolidated Financial Statements should be read in conjunction with our audited consolidated financial statements and the related notes included in our Annual Report, which was filed with the SEC on February 1, 2024. The year-end condensed balance sheet was derived from our audited consolidated financial statements. Our unaudited interim Condensed Consolidated Financial Statements include, in the opinion of management, all adjustments, consisting of normal and recurring items, necessary for the fair statement of our Condensed Consolidated Financial Statements. The operating results for the three and nine months ended September 30, 2024 are not necessarily indicative of the results expected for the full year ending December 31, 2024.

Reclassification

We reclassified certain amounts in our Condensed Consolidated Statements of Cash Flows within the cash flows from operating activities section in the prior year to conform to the current year's presentation.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenue, expenses, other income, and provision for income taxes during the reporting period. Assets and liabilities which are subject to judgment and use of estimates include the fair value of financial instruments, capitalized software development costs, period of benefit associated with deferred costs, incremental borrowing rate used to measure operating lease liabilities, the recoverability of goodwill and long-lived assets, income taxes, useful lives associated with property and equipment and intangible assets, contingencies, assumptions underlying performance-based compensation (whether cash or stock-based), and assumptions underlying stock-based compensation. Actual results could differ from those estimates and any such differences may have a material impact on our Condensed Consolidated Financial Statements.

Net Income (Loss) per Common Share

Net income (loss) per common share was the same for shares of our Class A and Class B common stock because they are entitled to the same liquidation and dividend rights and are therefore combined in the table below. The following table sets forth the computation of basic and diluted net income (loss) per common share (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Basic net income (loss) per share:
Numerator
Net income (loss)	$	33,006	$	26,445	$	101,334	$	(27,566)
Less: undistributed earnings to participating securities	—		5		8		—
Net income (loss) attributable to common stockholders	$	33,006	$	26,440	$	101,326	$	(27,566)
Denominator					—		—
Weighted average common shares outstanding	36,306		35,697		36,214		35,574
Less: Weighted average unvested restricted shares subject to repurchase	—		6		3		7
Weighted average common shares outstanding; basic	36,306		35,691		36,211		35,567
Net income (loss) per common share; basic	$	0.91	$	0.74	$	2.80	$	(0.78)
Diluted net income (loss) per share:
Numerator
Net income (loss) attributable to common stockholders	$	33,006	$	26,440	$	101,326	$	(27,566)
Denominator
Weighted average common shares outstanding; basic	36,306		35,691		36,211		35,567
Add: Weighted average dilutive options outstanding	41		306		64		—
Add: Weighted average dilutive RSUs outstanding	409		485		477		—
Weighted average common shares outstanding; diluted	36,756		36,482		36,752		35,567
Net income (loss) per common share; diluted	$	0.90	$	0.72	$	2.76	$	(0.78)

Potentially dilutive securities that are not included in the calculation of diluted net income (loss) per share because doing so would be antidilutive are as follows (in thousands):


	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Unvested Restricted Stock Awards	—	6	—	6
Options	—	120	—	418
Restricted Stock Units	4	—	17	1,214
Total potentially dilutive securities	4	126	17	1,638

Leases - Additional Information (Details) - USD ($)	1 Months Ended		3 Months Ended	9 Months Ended
Leases - Additional Information (Details) - USD ($)	Jun. 30, 2023	Jan. 31, 2023	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Jul. 01, 2023
Lessee, Lease, Description [Line Items]
Lease renewal term				10 years
Gain (loss) on modification of lease	$ 1,900,000	$ 2,400,000		$ 0	$ 4,281,000
Cash paid for amounts included in the measurement of lease liabilities included in operating cash flows	$ 2,900,000			4,421,000	$ 7,253,000
Lessee, operating lease, liability, payments, due				$ 50,657,000
Santa Barbara Office Lease
Lessee, Lease, Description [Line Items]
Lessee, operating lease, liability, payments, due						$ 6,100,000
Lessor, operating lease, payment to be received						$ 6,100,000
Operating lease, impairment loss			$ 0
Minimum
Lessee, Lease, Description [Line Items]
Lease term				7 years
Maximum
Lessee, Lease, Description [Line Items]
Lease term				9 years

Investment Securities and Fair Value Measurements - Available-for-sale Investments, by Remaining Contract Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Amortized Cost
Due in one year or less	$ 268,440	$ 162,062
Amortized Cost	268,440	162,062
Estimated Fair Value
Due in one year or less	268,951	162,196
Estimated Fair Value	$ 268,951	$ 162,196

Accrued Employee Expenses - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2023
Compensation Related Costs [Abstract]
Severance and related personnel cost	$ 10,300	$ 10,278

Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of Stock Option Activity

A summary of activity in connection with our stock options for the nine months ended September 30, 2024, is as follows (number of shares in thousands):


	Number of Shares	Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Life in Years
Options outstanding as of December 31, 2023	381	$	51.49	3.4

Options exercised	(250)	15.64
Options cancelled/forfeited	(1)	3.28
Options outstanding as of September 30, 2024	130	$	120.72	7.8

Schedule of Restricted Stock Units Activity

A summary of activity in connection with our restricted stock units ("RSUs") for the nine months ended September 30, 2024, is as follows (number of shares in thousands):


	Number of Shares	Weighted Average Grant Date Fair Value per Share
Unvested as of December 31, 2023	943	$	121.61
Granted	323	214.65
Vested	(324)	128.23
Forfeited	(41)	135.58
Unvested as of September 30, 2024	901	$	151.95

Accrued Employee Expenses

9 Months Ended

Sep. 30, 2024

Accrued Employee Expenses

Accrued employee expenses consisted of the following (in thousands):


	September 30, 2024		December 31, 2023
Accrued vacation	$	13,772	$	12,399
Accrued bonuses	7,256		14,795

Accrued payroll, severance and related personnel cost	12,597		8,373


Total accrued employee expenses	$	33,625	$	35,567

In the third quarter of 2023, we accrued $10.3 million of severance and related personnel costs associated with our workforce reduction. Refer to Note 12, Workforce Reduction for additional information.

Summary of Significant Accounting Policies - Schedule of Net Income per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Numerator
Net income (loss)	$ 33,006	$ 29,665	$ 38,663	$ 26,445	$ (18,901)	$ (35,110)	$ 101,334	$ (27,566)
Less: undistributed earnings to participating securities	0			5			8	0
Net income (loss) attributable to common stockholders	$ 33,006			$ 26,440			$ 101,326	$ (27,566)
Denominator
Weighted average common shares outstanding (in shares)	36,306			35,697			36,214	35,574
Less: Weighted average unvested restricted shares subject to repurchase (in shares)	0			6			3	7
Weighted average common shares outstanding; basic (in shares)	36,306			35,691			36,211	35,567
Net income (loss) per common share, basic (in dollars per share)	$ 0.91			$ 0.74			$ 2.80	$ (0.78)
Numerator
Net income (loss) attributable to common stockholders	$ 33,006			$ 26,440			$ 101,326	$ (27,566)
Denominator
Weighted average common shares outstanding, basic (in shares)	36,306			35,691			36,211	35,567
Weighted average common shares outstanding; diluted (in shares)	36,756			36,482			36,752	35,567
Net income (loss) per common share, diluted (in dollars per share)	$ 0.90			$ 0.72			$ 2.76	$ (0.78)
Options
Denominator
Add: Weighted average diluted share-based payments outstanding (in shares)	41			306			64	0
Restricted Stock Units
Denominator
Add: Weighted average diluted share-based payments outstanding (in shares)	409			485			477	0

Commitments and Contingencies (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Loss Contingencies [Line Items]
Quota share of tenant liability insurance provided, percent	100.00%
Other current liabilities
Loss Contingencies [Line Items]
Liability for reported claims and claims incurred but not reported	$ 3.5	$ 4.2
Other current assets
Loss Contingencies [Line Items]
Deposits held with a third party related to insurance services collateral	$ 3.8	$ 5.1

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Schedule of Weighted Average Number of Shares

The following table sets forth the computation of basic and diluted net income (loss) per common share (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Basic net income (loss) per share:
Numerator
Net income (loss)	$	33,006	$	26,445	$	101,334	$	(27,566)
Less: undistributed earnings to participating securities	—		5		8		—
Net income (loss) attributable to common stockholders	$	33,006	$	26,440	$	101,326	$	(27,566)
Denominator					—		—
Weighted average common shares outstanding	36,306		35,697		36,214		35,574
Less: Weighted average unvested restricted shares subject to repurchase	—		6		3		7
Weighted average common shares outstanding; basic	36,306		35,691		36,211		35,567
Net income (loss) per common share; basic	$	0.91	$	0.74	$	2.80	$	(0.78)
Diluted net income (loss) per share:
Numerator
Net income (loss) attributable to common stockholders	$	33,006	$	26,440	$	101,326	$	(27,566)
Denominator
Weighted average common shares outstanding; basic	36,306		35,691		36,211		35,567
Add: Weighted average dilutive options outstanding	41		306		64		—
Add: Weighted average dilutive RSUs outstanding	409		485		477		—
Weighted average common shares outstanding; diluted	36,756		36,482		36,752		35,567
Net income (loss) per common share; diluted	$	0.90	$	0.72	$	2.76	$	(0.78)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

Potentially dilutive securities that are not included in the calculation of diluted net income (loss) per share because doing so would be antidilutive are as follows (in thousands):


	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Unvested Restricted Stock Awards	—	6	—	6
Options	—	120	—	418
Restricted Stock Units	4	—	17	1,214
Total potentially dilutive securities	4	126	17	1,638

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2024

Sep. 30, 2023

Sep. 30, 2024

Sep. 30, 2023

Income Statement [Abstract]

Revenue

$ 205,733

$ 165,440

$ 590,538

$ 448,615

Costs and operating expenses:

Cost of revenue (exclusive of depreciation and amortization)

^[1]

71,631

62,739

205,878

176,801

Sales and marketing

^[1]

25,406

29,701

77,161

86,101

Research and product development

^[1]

40,662

41,592

118,079

116,517

General and administrative

^[1]

21,139

23,907

62,525

74,417

Depreciation and amortization

4,327

7,568

14,209

22,055

Total costs and operating expenses

163,165

165,507

477,852

475,891

Income (loss) from operations

42,568

(67)

112,686

(27,276)

Other income (loss), net

(249)

(283)

Interest income, net

4,014

1,788

10,482

4,627

Income (loss) before provision for income taxes

46,582

1,472

123,168

(22,932)

Provision for (benefit from) income taxes

13,576

(24,973)

21,834

4,634

Net income (loss)

$ 33,006

$ 26,445

$ 101,334

$ (27,566)

Net income (loss) per common share:

Net income (loss) per common share, basic (in dollars per share)

$ 0.91

$ 0.74

$ 2.80

$ (0.78)

Net income (loss) per common share, diluted (in dollars per share)

$ 0.90

$ 0.72

$ 2.76

$ (0.78)

Weighted average common shares outstanding:

Weighted average common shares outstanding, basic (in shares)

36,306

35,691

36,211

35,567

Weighted average common shares outstanding, diluted (in shares)

36,756

36,482

36,752

35,567

[1]

Includes stock-based compensation expense as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Stock-based compensation expense included in costs and operating expenses:
Cost of revenue (exclusive of depreciation and amortization)	$	1,126	$	1,149	$	3,261	$	2,905
Sales and marketing	2,071		2,041		5,284		4,902
Research and product development	7,471		6,064		19,625		15,851
General and administrative	5,367		6,003		16,133		16,274
Total stock-based compensation expense	$	16,035	$	15,257	$	44,303	$	39,932

Stock-Based Compensation - Restricted Stock Units Activity (Details) - Restricted Stock Units shares in Thousands	9 Months Ended
	Sep. 30, 2024 $ / shares shares
Number of Shares
Unvested, beginning balance (in shares) \| shares	943
Granted (in shares) \| shares	323
Vested (in shares) \| shares	(324)
Forfeited (in shares) \| shares	(41)
Unvested, ending balance (in shares) \| shares	901
Weighted Average Grant Date Fair Value per Share
Unvested, beginning balance (in dollars per share) \| $ / shares	$ 121.61
Granted (in dollars per share) \| $ / shares	214.65
Vested (in dollars per share) \| $ / shares	128.23
Forfeited (in dollars per share) \| $ / shares	135.58
Unvested, ending balance (in dollars per share) \| $ / shares	$ 151.95

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Total stock-based compensation expense	$ 16,035	$ 15,257	$ 44,303	$ 39,932
Cost of revenue (exclusive of depreciation and amortization)
Total stock-based compensation expense	1,126	1,149	3,261	2,905
Sales and marketing
Total stock-based compensation expense	2,071	2,041	5,284	4,902
Research and product development
Total stock-based compensation expense	7,471	6,064	19,625	15,851
General and administrative
Total stock-based compensation expense	$ 5,367	$ 6,003	$ 16,133	$ 16,274

Leases - Schedule of Minimum Lease Payments Under Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Years ending December 31,
2024	$ 526
2025	6,168
2026	6,345
2027	6,528
2028	6,717
Thereafter	24,373
Total future minimum lease payments	50,657
Less: imputed interest	(9,114)
Total	$ 41,543	$ 44,740

Summary of Significant Accounting Policies - Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from net income (loss) per share computation (in shares)	4	126	17	1,638
Unvested Restricted Stock Awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from net income (loss) per share computation (in shares)	0	6	0	6
Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from net income (loss) per share computation (in shares)	0	120	0	418
Restricted Stock Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from net income (loss) per share computation (in shares)	4	0	17	1,214

Investment Securities and Fair Value Measurements - Fair Value, Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale investment securities:	$ 268,951	$ 162,196
Fair value, recurring measurements
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	313,658	199,296
Fair value, recurring measurements \| U.S. government and agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale investment securities:	268,951	162,196
Fair value, recurring measurements \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	44,707	37,100
Fair value, recurring measurements \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	44,707	37,100
Fair value, recurring measurements \| Level 1 \| U.S. government and agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale investment securities:	0	0
Fair value, recurring measurements \| Level 1 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	44,707	37,100
Fair value, recurring measurements \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	268,951	162,196
Fair value, recurring measurements \| Level 2 \| U.S. government and agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale investment securities:	268,951	162,196
Fair value, recurring measurements \| Level 2 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	$ 0	$ 0

Stock-Based Compensation - Stock Option Activity Additional Information (Details) $ in Millions	9 Months Ended
	Sep. 30, 2024 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Remaining stock-based compensation expense for unvested options, not yet recognized	$ 5.4
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense, weighted average recognition period (in years)	3 years 3 months 18 days
Stock Options \| Tranche one
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage	33.33%
Stock Options \| Tranche two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage	33.33%
Stock Options \| Tranche three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage	33.33%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 1D
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480483/718-10-35-1D

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480483/718-10-35-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
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+ Details

Cover Page - shares	9 Months Ended
Cover Page - shares	Sep. 30, 2024	Oct. 17, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	001-37468
Entity Registrant Name	AppFolio, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	26-0359894
Entity Address, Address Line One	70 Castilian Drive
Entity Address, City or Town	Santa Barbara,
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	93117
City Area Code	805
Local Phone Number	364-6093
Title of 12(b) Security	Class A common stock, $0.0001 par value
Trading Symbol	APPF
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001433195
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false
Class A common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		23,079,878
Class B common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		13,253,438

Subsequent Event	9 Months Ended
Subsequent Event	Sep. 30, 2024
Subsequent Events [Abstract]
Subsequent Event	Subsequent EventOn October 22, 2024, we acquired all of the outstanding shares of Move EZ, Inc., a concierge platform providing moving and home services throughout the resident onboarding process, for approximately $80 million in cash, subject to customary adjustment.

Stock-Based Compensation

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock Options

A summary of activity in connection with our stock options for the nine months ended September 30, 2024, is as follows (number of shares in thousands):


	Number of Shares	Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Life in Years
Options outstanding as of December 31, 2023	381	$	51.49	3.4

Options exercised	(250)	15.64
Options cancelled/forfeited	(1)	3.28
Options outstanding as of September 30, 2024	130	$	120.72	7.8

Our stock-based compensation expense for stock options were not material for the periods presented.

As of September 30, 2024, the total estimated remaining stock-based compensation expense for the aforementioned stock options was $5.4 million, which is expected to be recognized over a weighted average period of 3.3 years.

Restricted Stock Units

A summary of activity in connection with our restricted stock units ("RSUs") for the nine months ended September 30, 2024, is as follows (number of shares in thousands):


	Number of Shares	Weighted Average Grant Date Fair Value per Share
Unvested as of December 31, 2023	943	$	121.61
Granted	323	214.65
Vested	(324)	128.23
Forfeited	(41)	135.58
Unvested as of September 30, 2024	901	$	151.95

Unvested RSUs as of September 30, 2024 were composed of 0.8 million RSUs with only service conditions and 0.1 million performance share units ("PSUs") with both service conditions and performance conditions. RSUs granted with only service conditions generally vest over a four-year period, assuming continued employment through the applicable vesting date. The number of PSUs granted, as included in the above table, assumes achievement of the performance metric at 100% of the performance target. The unvested PSUs as of September 30, 2024, are subject to vesting based on the achievement of pre-established performance metrics for the year ending December 31, 2024 and will vest over a three year period, assuming continued employment through each vesting date. The actual number of shares to be issued at the end of the performance period will range from 0% to 170% of the target number of shares depending on achievement relative to the performance metric over the applicable period.

We recognized stock-based compensation expense for the RSUs and PSUs of $15.9 million and $14.8 million for the three months ended September 30, 2024 and 2023, respectively, and $43.4 million and $39.0 million for the nine months ended September 30, 2024 and 2023, respectively. As of September 30, 2024, the total estimated remaining stock-based compensation expense for the aforementioned RSUs and PSUs was $107.2 million, which is expected to be recognized over a weighted average period of 2.1 years.

Investment Securities and Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Schedule of Available-for-sale Securities

Investment securities classified as available-for-sale consisted of the following as of September 30, 2024 and December 31, 2023 (in thousands):


	September 30, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value


U.S. government and agency securities	268,440		513		(2)		268,951
Total available-for-sale investment securities	$	268,440	$	513	$	(2)	$	268,951


	December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value


U.S. government and agency securities	162,062		193		(59)		162,196
Total available-for-sale investment securities	$	162,062	$	193	$	(59)	$	162,196

Available-for-sale Investments, by Remaining Contract Maturity

The fair values of available-for-sale investment securities, by remaining contractual maturity, are as follows (in thousands):


	September 30, 2024				December 31, 2023
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in one year or less	$	268,440	$	268,951	$	162,062	$	162,196

Total available-for-sale investment securities	$	268,440	$	268,951	$	162,062	$	162,196

Schedule of Sales, Calls, and Maturities

During the nine months ended September 30, 2024 and 2023, we had sales and maturities of investment securities, as follows (in thousands):


	Nine Months Ended September 30, 2024
	Gross Realized Gains		Gross Realized Losses		Gross Proceeds from Sales		Gross Proceeds from Maturities


U.S. government and agency securities	—		—		—		163,755
Total	$	—	$	—	$	—	$	163,755


	Nine Months Ended September 30, 2023
	Gross Realized Gains		Gross Realized Losses		Gross Proceeds from Sales		Gross Proceeds from Maturities
Corporate bonds	$	3	$	—	$	1,013	$	16,497

U.S. government and agency securities	—		—		—		77,755
Total	$	3			$	1,013	$	94,252

Fair Value, Assets Measured on Recurring Basis

The following tables present our financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2024 and December 31, 2023 by level within the fair value hierarchy (in thousands):


	September 30, 2024
	Level 1		Level 2		Total Fair Value
Cash equivalents:
Money market funds	$	44,707	$	—	$	44,707


Available-for-sale investment securities:


U.S. government and agency securities	—		268,951		268,951
Total	$	44,707	$	268,951	$	313,658


	December 31, 2023
	Level 1		Level 2		Total Fair Value
Cash equivalents:
Money market funds	$	37,100	$	—	$	37,100

Available-for-sale investment securities:


U.S. government and agency securities	—		162,196		162,196
Total	$	37,100	$	162,196	$	199,296

Workforce Reduction - Severance Costs (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2023
Restructuring Cost and Reserve [Line Items]
Severance costs	$ 12,083	$ 12,083
Share-based payment arrangement, accelerated cost	1,800
Cost of revenue (exclusive of depreciation and amortization)
Restructuring Cost and Reserve [Line Items]
Severance costs	2,367	2,367
Sales and marketing
Restructuring Cost and Reserve [Line Items]
Severance costs	3,795	3,795
Research and product development
Restructuring Cost and Reserve [Line Items]
Severance costs	3,407	3,407
General and administrative
Restructuring Cost and Reserve [Line Items]
Severance costs	$ 2,514	$ 2,514

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash from operating activities
Net Income (loss)	$ 101,334	$ (27,566)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	12,804	20,115
Amortization of operating lease right-of-use assets	1,541	1,618
Gain on lease modification	0	(4,281)
Stock-based compensation, including as amortized	45,707	41,872
Other	(6,146)	(1,514)
Changes in operating assets and liabilities:
Accounts receivable	(4,872)	(3,857)
Prepaid expenses and other current assets	1,111	(712)
Accounts payable	(291)	(1,485)
Operating lease liabilities	(3,196)	(3,080)
Accrued expenses and other liabilities	3,601	7,990
Net cash provided by operating activities	151,593	29,100
Cash from investing activities
Purchases of available-for-sale investments	(265,319)	(108,919)
Proceeds from sales of available-for-sale investments	0	1,013
Proceeds from maturities of available-for-sale investments	163,755	94,252
Purchases of property and equipment	(1,821)	(5,932)
Capitalization of software development costs	(4,112)	(3,394)
Proceeds from sale of business, net of cash divested	0	629
Net cash used in investing activities	(107,497)	(22,351)
Cash from financing activities
Proceeds from stock option exercises	3,913	2,185
Tax withholding for net share settlement	(35,101)	(19,766)
Net cash used in financing activities	(31,188)	(17,581)
Net increase (decrease) in cash, cash equivalents and restricted cash	12,908	(10,832)
Cash, cash equivalents and restricted cash
Beginning of period	49,759	71,019
End of period	62,667	60,187
Cash and cash equivalents	62,417	59,937
Restricted cash included in prepaid expenses and other current assets	250	250
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows	62,667	60,187
Supplemental disclosure of cash flow information
Cash paid for amounts included in the measurement of lease liabilities included in operating cash flows	$ 4,421	$ 7,253

Stock-Based Compensation - Stock Option Activity (Details) - $ / shares shares in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Number of Shares
Options outstanding, beginning balance (in shares)	381
Options exercised (in shares)	(250)
Options cancelled/forfeited (in shares)	(1)
Options outstanding, ending balance (in shares)	130	381
Weighted Average Exercise Price per Share
Options outstanding, beginning balance (in dollars per share)	$ 51.49
Options exercised (in dollars per share)	15.64
Options cancelled/forfeited (in dollars per share)	3.28
Options outstanding, ending balance (in dollars per share)	$ 120.72	$ 51.49
Weighted Average Remaining Contractual Life in Years	7 years 9 months 18 days	3 years 4 months 24 days

Workforce Reduction - Restructuring Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Sep. 30, 2023	Sep. 30, 2023
Restructuring Reserve [Roll Forward]
Balance as of December 31, 2022	$ 8,477		$ 0
Severance and related personnel cost		$ 10,300	10,278
Cash Payments	$ (7,600)		(1,801)
Balance as of September 30, 2023		$ 8,477	$ 8,477

Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Leases [Abstract]
Operating lease cost	$ 1,024	$ 1,027	$ 3,167	$ 3,303
Variable lease cost	335	372	989	1,393
Total lease cost	$ 1,359	$ 1,399	$ 4,156	$ 4,696

Investment Securities and Fair Value Measurements - Schedule of Sales, Calls and Maturities (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Debt Securities, Available-for-sale [Line Items]
Gross Realized Gains	$ 0	$ 3
Gross Realized Losses	0
Gross Proceeds from Sales	0	1,013
Gross Proceeds from Maturities	163,755	94,252
U.S. government and agency securities
Debt Securities, Available-for-sale [Line Items]
Gross Realized Gains	0	0
Gross Realized Losses	0	0
Gross Proceeds from Sales	0	0
Gross Proceeds from Maturities	$ 163,755	77,755
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Gross Realized Gains		3
Gross Realized Losses		0
Gross Proceeds from Sales		1,013
Gross Proceeds from Maturities		$ 16,497

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Investment Securities and Fair Value Measurements - Schedule of Available-for-sale Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 268,440	$ 162,062
Gross Unrealized Gains	513	193
Gross Unrealized Losses	(2)	(59)
Available-for-sale investment securities:	268,951	162,196
U.S. government and agency securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	268,440	162,062
Gross Unrealized Gains	513	193
Gross Unrealized Losses	(2)	(59)
Available-for-sale investment securities:	$ 268,951	$ 162,196

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets
Cash and cash equivalents	$ 62,417	$ 49,509
Investment securities—current	268,951	162,196
Accounts receivable, net	25,581	20,709
Prepaid expenses and other current assets	38,194	39,943
Total current assets	395,143	272,357
Property and equipment, net	25,478	28,362
Operating lease right-of-use assets	17,744	19,285
Capitalized software development costs, net	16,330	21,562
Goodwill	56,060	56,060
Other long-term assets	12,542	11,263
Total assets	523,297	408,889
Current liabilities
Accounts payable	509	1,141
Accrued employee expenses	33,625	35,567
Accrued expenses	14,899	21,723
Other current liabilities	14,664	11,335
Total current liabilities	63,697	69,766
Operating lease liabilities	38,402	41,114
Other liabilities	8,371	697
Total liabilities	110,470	111,577
Commitments and contingencies (Note 8)
Stockholders’ equity:
Additional paid-in capital	250,790	236,985
Accumulated other comprehensive Income (loss)	475	99
Treasury stock	(25,756)	(25,756)
Retained earnings	187,314	85,980
Total stockholders’ equity	412,827	297,312
Total liabilities and stockholders’ equity	523,297	408,889
Class A common stock
Stockholders’ equity:
Common stock	2	2
Class B common stock
Stockholders’ equity:
Common stock	$ 2	$ 2

Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Other Liabilities Disclosure [Abstract]
Insurance reserves	$ 3,543	$ 4,174
Operating lease liabilities-current	3,141	3,626
Other	7,980	3,535
Total other current liabilities	$ 14,664	$ 11,335

Capitalized Software Development Costs, net - Capitalized Computer Software (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Research and Development [Abstract]
Capitalized software development costs, gross	$ 124,075	$ 126,606
Less: Accumulated amortization	(107,745)	(105,044)
Capitalized software development costs, net	$ 16,330	$ 21,562

Leases - Lease Related Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Leases [Abstract]
Operating lease right-of-use assets	$ 17,744	$ 19,285
Other current liabilities	3,141	3,626
Operating lease liabilities	38,402	41,114
Total lease liabilities	$ 41,543	$ 44,740
Operating lease, liability, current, location	Other current liabilities	Other current liabilities

Other Current Liabilities

9 Months Ended

Sep. 30, 2024

Other Liabilities Disclosure [Abstract]

Other Current Liabilities

Other Current Liabilities consisted of the following (in thousands):


	September 30, 2024		December 31, 2023
Insurance reserves	$	3,543	$	4,174
Operating lease liabilities-current	3,141		3,626
Other	7,980		3,535
Total other current liabilities	$	14,664	$	11,335

For additional information, refer to Note 8, Commitments and Contingencies and Note 7, Leases.

Stock-Based Compensation - Restricted Stock Units Additional Information (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 16,035	$ 15,257	$ 44,303	$ 39,932
RSUs and PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	15,900	$ 14,800	43,400	$ 39,000
Remaining stock-based compensation expense for unvested shares, not yet recognized	$ 107,200		$ 107,200
Stock-based compensation expense, weighted average recognition period (in years)			2 years 1 month 6 days
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested restricted stock units (in shares)	901		901		943
Vesting period			4 years
Restricted Stock Units With Service Conditions
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested restricted stock units (in shares)	800		800
Restricted Stock Units with Service and Performance Conditions
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested performance stock units (in shares)	100		100
PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			3 years
Percent of targeted performance metric	100.00%		100.00%
PSUs \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of targeted performance metric	0.00%		0.00%
PSUs \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of targeted performance metric	170.00%		170.00%

Subsequent Event (Details) $ in Millions	Oct. 22, 2024 USD ($)
Move Easy, Inc. \| Subsequent Event
Business Acquisition [Line Items]
Consideration paid	$ 80

Other Current Liabilities (Tables)

9 Months Ended

Sep. 30, 2024

Other Liabilities Disclosure [Abstract]

Other Current Liabilities

Other Current Liabilities consisted of the following (in thousands):


	September 30, 2024		December 31, 2023
Insurance reserves	$	3,543	$	4,174
Operating lease liabilities-current	3,141		3,626
Other	7,980		3,535
Total other current liabilities	$	14,664	$	11,335

Capitalized Software Development Costs, net - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Research and Development [Abstract]
Capitalized software development costs during the period	$ 1.9	$ 1.6	$ 4.6	$ 3.9
Amortization expense with respect to software development costs during the period	2.9	4.4	9.8	15.2
Fully amortized capitalized software development costs disposed of	$ 3.2	$ 2.8	$ 7.1	$ 6.3

Capitalized Software Development Costs, net - Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Years Ending December 31,
2024	$ 2,551
2025	7,583
2026	3,965
2027	2,231
Capitalized software development costs, net	$ 16,330	$ 21,562

Nature of Business	9 Months Ended
Nature of Business	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business	Nature of Business AppFolio, Inc. ("we," "us" or "our") is a leading provider of cloud business management solutions for the real estate industry. Our solutions are designed to enable our property manager customers to digitally transform their businesses, address critical business operations and deliver a better customer experience. Digital transformation is effectively a requirement for business success in the modern world, and the way we work and live requires powerful software solutions.

Accrued Employee Expenses (Tables)

9 Months Ended

Sep. 30, 2024

Schedule of Accrued Employee Expenses

Accrued employee expenses consisted of the following (in thousands):


	September 30, 2024		December 31, 2023
Accrued vacation	$	13,772	$	12,399
Accrued bonuses	7,256		14,795

Accrued payroll, severance and related personnel cost	12,597		8,373


Total accrued employee expenses	$	33,625	$	35,567

Workforce Reduction

9 Months Ended

Sep. 30, 2024

Restructuring and Related Activities [Abstract]

Workforce Reduction

During the three months ended September 30, 2023, we announced a plan to reduce our workforce by 149 employees in order to scale the business more efficiently. Impacted employees were notified in August 2023. There were no workforce reductions during the three and nine months ended September 30, 2024.

The following table presents the total severance and related personnel costs by function, for the three and nine months ended September 30, 2023 (in thousands):


	Severance and Related Personnel Cost
Cost of revenue	$	2,367
Sales and marketing	3,795
Research and product development	3,407
General and administrative	2,514
Total(1)	$	12,083

(1) Total severance and related personnel costs include $1.8 million of accelerated stock-based compensation expense recognized during the three months ended September 30, 2023.

The following is a summary of changes in the accrued severance and related personnel cost, within Accrued Employee Expenses on the Condensed Consolidated Balance Sheets (in thousands):


	Accrued Severance and Related Personnel Cost
Balance as of December 31, 2022	$	—
Severance and related personnel cost	10,278
Cash Payments	(1,801)

Balance as of September 30, 2023	$	8,477

For the balance as of September 30, 2023, $7.6 million of accrued severance was paid in the fourth quarter of 2023, and the remainder was paid in 2024.

Revenue and Other Information (Tables)

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Schedule of Product Information by Revenue Categories

The following table presents our revenue categories for the three and nine months ended September 30, 2024 and 2023 (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Core solutions	$	46,030	$	39,756	$	132,974	$	115,440
Value Added Services	157,726		123,188		451,677		326,108
Other	1,977		2,496		5,887		7,067
Total revenue	$	205,733	$	165,440	$	590,538	$	448,615

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 33,006	$ 26,445	$ 101,334	$ (27,566)
Other comprehensive income:
Changes in unrealized gains on investment securities, net of tax	659	578	376	1,675
Comprehensive income (loss)	$ 33,665	$ 27,023	$ 101,710	$ (25,891)

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income, attributable to parent entity. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

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

+ References

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+ Details

Investment Securities and Fair Value Measurements

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Investment Securities and Fair Value Measurements

Investment Securities

Investment securities classified as available-for-sale consisted of the following as of September 30, 2024 and December 31, 2023 (in thousands):


	September 30, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value


U.S. government and agency securities	268,440		513		(2)		268,951
Total available-for-sale investment securities	$	268,440	$	513	$	(2)	$	268,951


	December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value


U.S. government and agency securities	162,062		193		(59)		162,196
Total available-for-sale investment securities	$	162,062	$	193	$	(59)	$	162,196

As of September 30, 2024, the decline in fair value below amortized cost basis was not considered other than temporary as it is more likely than not we will hold the securities until maturity or recovery of the cost basis. No allowance for credit losses for available-for-sale investment securities was recorded as of September 30, 2024 or December 31, 2023.

The fair values of available-for-sale investment securities, by remaining contractual maturity, are as follows (in thousands):


	September 30, 2024				December 31, 2023
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in one year or less	$	268,440	$	268,951	$	162,062	$	162,196

Total available-for-sale investment securities	$	268,440	$	268,951	$	162,062	$	162,196

During the nine months ended September 30, 2024 and 2023, we had sales and maturities of investment securities, as follows (in thousands):


	Nine Months Ended September 30, 2024
	Gross Realized Gains		Gross Realized Losses		Gross Proceeds from Sales		Gross Proceeds from Maturities


U.S. government and agency securities	—		—		—		163,755
Total	$	—	$	—	$	—	$	163,755


	Nine Months Ended September 30, 2023
	Gross Realized Gains		Gross Realized Losses		Gross Proceeds from Sales		Gross Proceeds from Maturities
Corporate bonds	$	3	$	—	$	1,013	$	16,497

U.S. government and agency securities	—		—		—		77,755
Total	$	3			$	1,013	$	94,252

The tables above do not include our non-marketable debt securities of $1.3 million, which are recorded in Other long term assets in the Condensed Consolidated Balance Sheet as of September 30, 2024.

Fair Value Measurements

Recurring Fair Value Measurements


	September 30, 2024
	Level 1		Level 2		Total Fair Value
Cash equivalents:
Money market funds	$	44,707	$	—	$	44,707


Available-for-sale investment securities:


U.S. government and agency securities	—		268,951		268,951
Total	$	44,707	$	268,951	$	313,658


	December 31, 2023
	Level 1		Level 2		Total Fair Value
Cash equivalents:
Money market funds	$	37,100	$	—	$	37,100

Available-for-sale investment securities:


U.S. government and agency securities	—		162,196		162,196
Total	$	37,100	$	162,196	$	199,296

The carrying amounts of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities approximate their fair value because of the short maturity of these items.

Fair value for our Level 1 investment securities is based on market prices for identical assets. Our Level 2 securities were priced by a pricing vendor. The pricing vendor utilizes the most recent observable market information in pricing these securities or, if specific prices are not available for these securities, other observable inputs like market transactions involving comparable securities are used.

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes In determining the interim benefit from income taxes for the three and nine months ended September 30, 2024, we utilized the annual estimated effective tax rate applied to the actual year-to-date income and added the tax effects of any discrete items in the reporting period in which they occur. In determining the interim benefit from income taxes for the three and nine months ended September 30, 2023, we utilized the discrete effective tax rate method, as allowed by Accounting Standards Codification (“ASC”) 740-270-30-18, “Income Taxes – Interim Reporting.” For the three and nine months ended September 30, 2024, we recorded income tax expense of $13.6 million and $21.8 million, respectively, representing an effective tax rate of 29.1% and 17.7%, respectively. For the three months ended September 30, 2024, our effective tax rate differs from the U.S. federal statutory rate of 21% primarily due to the change in valuation allowance against deferred tax assets, state income taxes and non-deductible officers' compensation partially offset by excess tax benefits from stock-based compensation. For the nine months ended September 30, 2024, our effective tax rate differs from the U.S. federal statutory rate of 21% primarily due to excess tax benefits from stock-based compensation. We assess our ability to realize our deferred tax assets on a quarterly basis and we establish a valuation allowance if it is more-likely-than-not that some portion of the deferred tax assets will not be realized. We weigh all available positive and negative evidence, including our earnings history and results of recent operations, scheduled reversals of deferred tax liabilities, projected future taxable income and tax planning strategies. Due to a history of cumulative losses, including permanent adjustments, and assessing all available positive and negative evidence, we have determined that it is more likely than not that our federal and state deferred tax assets would not be realized. Accordingly, we have been maintaining full valuation allowance against our deferred tax assets. However, based on our current and projected future earnings, we believe that there is reasonable possibility that sufficient positive evidence of sustained profitability may be achieved during the current year to reach a conclusion that part or all of our deferred tax assets may become realizable, resulting in a possible release of all or a portion of the valuation allowance. Such valuation allowance release may result in a material increase to our deferred tax assets and a corresponding decrease in income tax expense. The exact timing and amount of the valuation allowance release are subject to our projection of earnings and level of profitability. There were no material changes to our unrecognized tax benefits during the three and nine months ended September 30, 2024, and we do not expect to have any significant changes to unrecognized tax benefits through the remainder of the year.

- Definition

The entire disclosure for income tax.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 740
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-Name Accounting Standards Codification
-Section 55
-Paragraph 231
-Publisher FASB
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Paragraph 12C
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-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147477891/740-270-50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Publisher FASB
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
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-Subparagraph (SX 210.4-08(h)(2))
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147482685/740-10-50-14

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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Paragraph 2
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-Topic 740
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-Paragraph 2
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482603/740-30-50-2

+ Details

Capitalized Software Development Costs, net

9 Months Ended

Sep. 30, 2024

Research and Development [Abstract]

Capitalized Software Development Costs, net

Capitalized software development costs were as follows (in thousands):


	September 30, 2024		December 31, 2023
Capitalized software development costs, gross	$	124,075	$	126,606
Less: Accumulated amortization	(107,745)		(105,044)
Capitalized software development costs, net	$	16,330	$	21,562

Capitalized software development costs were $1.9 million and $1.6 million for the three months ended September 30, 2024 and 2023, respectively, and $4.6 million and $3.9 million for the nine months ended September 30, 2024 and 2023, respectively. Amortization expense with respect to capitalized software development costs totaled $2.9 million and $4.4 million for the three months ended September 30, 2024 and 2023, respectively, and $9.8 million and $15.2 million for the nine months ended September 30, 2024 and 2023, respectively. We disposed of fully amortized capitalized software development costs of $3.2 million and $2.8 million, during the three months ended September 30, 2024 and 2023, respectively, and $7.1 million and $6.3 million, during the nine months ended September 30, 2024 and 2023, respectively.

Future amortization expense with respect to capitalized software development costs as of September 30, 2024 is estimated as follows (in thousands):


Years Ending December 31,
2024	$	2,551
2025	7,583
2026	3,965
2027	2,231

Total amortization expense	$	16,330