0001433195-25-000013 | 10-K | XBRL Viewer

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Insider Trading Policies and Procedures	12 Months Ended
Insider Trading Policies and Procedures	Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]
Insider Trading Policies and Procedures Adopted	true

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of Stock Option Activity

A summary of activity in connection with our stock options for the year ended December 31, 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 granted	—	—
Options exercised	(251)	15.62
Options cancelled/forfeited	(1)	3.28
Options outstanding as of December 31, 2024	129	$	121.50	7.6

At December 31, 2024:
Options vested and expected to vest	129	$	121.50	7.6
Options exercisable	9	$	14.75	0.6

Schedule of Information Related to Stock Options Granted

The fair value of stock options granted is estimated on the date of grant using the Black-Scholes option-pricing model. The following table summarizes information relating to our stock options granted during the year ended December 31, 2023:




Weighted average grant-date fair value per share	$	67.23
Weighted average Black-Scholes model assumptions:
Risk-free interest rate	4.06		%
Expected term (in years)	6.92
Expected volatility	44		%
Expected dividend yield	—

Schedule of Restricted Stock Units Activity

A summary of activity in connection with our RSUs for the year ended December 31, 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	376	214.99
Vested	(449)	129.57
Forfeited	(85)	137.95
Unvested as of December 31, 2024	785	$	159.98

Investment Securities and Fair Value Measurements

12 Months Ended

Dec. 31, 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 December 31, 2024 and 2023 (in thousands):


	December 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value


U.S. government and agency securities	$	235,509	$	261	$	(25)	$	235,745
Total available-for-sale investment securities	$	235,509	$	261	$	(25)	$	235,745


	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 December 31, 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 December 31, 2024 or 2023.

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


	December 31, 2024				December 31, 2023
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in one year or less	$	235,509	$	235,745	$	162,062	$	162,196

Total available-for-sale investment securities	$	235,509	$	235,745	$	162,062	$	162,196

During the years ended December 31, 2024 and 2023, we had sales and maturities (which include calls) of investment securities, as follows (in thousands):


	Year Ended December 31, 2024
	Gross Realized Gains		Gross Realized Losses		Gross Proceeds from Sales		Gross Proceeds from Maturities
U.S. government and agency securities	4		(1)		9,984		240,035
	$	4	$	(1)	$	9,984	$	240,035


	Year Ended December 31, 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	—		—		—		135,885
	$	3	$	—	$	1,013	$	152,382

The tables above do not include our non-marketable equity securities of $2.0 million, which are recorded in Other long term assets in the Consolidated Balance Sheet as of December 31, 2024.

Fair Value Measurements

Recurring Fair Value Measurements

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


	December 31, 2024
	Level 1		Level 2		Total Fair Value
Cash equivalents:
Money market funds	$	25,167	$	—	$	25,167

Available-for-sale investment securities:



U.S. government and agency securities	—		235,745		235,745
Total	$	25,167	$	235,745	$	260,912


	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.

There were no changes to our valuation techniques used to measure asset and liability fair values on a recurring basis during the year ended December 31, 2024. The valuation techniques for the financial assets in the tables above are as follows:

Cash Equivalents

As of December 31, 2024 and 2023, cash equivalents include cash invested in money market funds with a maturity of three months or less. Fair value is based on market prices for identical assets.

Available-for-Sale Investment Securities

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.

Cover - USD ($) $ in Millions	12 Months Ended
Cover - USD ($) $ in Millions	Dec. 31, 2024	Jan. 30, 2025	Jun. 30, 2024
Document Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2024
Current Fiscal Year End Date	--12-31
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, par value $0.0001 per share
Trading Symbol	APPF
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
Document Financial Statement Error Correction [Flag]	false
Entity Shell Company	false
Entity Public Float			$ 6,634
Documents Incorporated by Reference	Portions of the registrant’s definitive Proxy Statement for the 2025 Annual Meeting of Stockholders (the “Proxy Statement”), to be filed with the Securities and Exchange Commission (the “SEC”) 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 (this “Annual Report”), are incorporated by reference in Part III, Items 10-14 of this Annual Report. Except for the portions of the Proxy Statement specifically incorporated by reference in this Annual Report, the Proxy Statement shall not be deemed to be filed as part hereof.
Entity Central Index Key	0001433195
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	FY
Amendment Flag	false
Class A common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		23,241,750
Class B common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		13,163,007

Stockholders' Equity - Amended and Restated Certificate of Incorporation (Narrative) (Details) - $ / shares	Dec. 31, 2024	Dec. 31, 2023
Class of Stock [Line Items]
Preferred stock, shares authorized (in shares)	25,000,000	25,000,000
Class A common stock
Class of Stock [Line Items]
Common stock, shares authorized (in shares)	250,000,000	250,000,000
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Class B common stock
Class of Stock [Line Items]
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common Stock \| Class A common stock
Class of Stock [Line Items]
Common stock, shares authorized (in shares)	250,000,000
Common stock, par value (in dollars per share)	$ 0.0001
Common Stock \| Class B common stock
Class of Stock [Line Items]
Common stock, shares authorized (in shares)	50,000,000
Common stock, par value (in dollars per share)	$ 0.0001
Preferred stock
Class of Stock [Line Items]
Preferred stock, shares authorized (in shares)	25,000,000

- 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.

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+ Details

Accrued Employee Expenses - Schedule of Accrued Employee Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Compensation Related Costs [Abstract]
Accrued vacation	$ 1,100	$ 12,399
Accrued bonuses	17,092	14,795
Accrued severance and related personnel cost	0	1,098
Accrued payroll and other	11,965	7,275
Total accrued employee expenses	$ 30,157	$ 35,567

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2024	Dec. 31, 2023
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	25,000,000	25,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Class A common stock
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	250,000,000	250,000,000
Common stock, shares issued (in shares)	23,660,000	22,168,000
Common stock, shares outstanding (in shares)	23,241,000	21,749,000
Treasury stock (in shares)	419,000	419,000
Class B common stock
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	13,163,000	14,116,000
Common stock, shares outstanding (in shares)	13,163,000	14,116,000

Goodwill and Intangible Assets, Net - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 2.1	$ 2.5	$ 4.4

Summary of Significant Accounting Policies - Narrative (Details)	12 Months Ended
	Dec. 31, 2024 USD ($) segment	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Finite-Lived Intangible Assets [Line Items]
Number of operating segments \| segment	1
Number of reportable segments \| segment	1
Allowance for credit losses, available-for sale investments	$ 0	$ 0
Impairment losses for goodwill	0	0	$ 0
Impairment, long-lived asset, held-for-use	$ 0	0	$ 22,000,000
Impairment, long-lived asset, held-for-use, location			Impairment, net
Amortization period of deferred cost (in years)	3 years
Deferred costs	$ 16,800,000	15,900,000
Deferred costs, current	9,900,000	8,700,000
Deferred costs, noncurrent	6,900,000	7,200,000
Amortization expense	10,000,000.0	9,500,000	$ 8,100,000
Capitalized contract cost, impairment loss	0	0
Advertising expenses	$ 10,600,000	$ 8,600,000	$ 9,200,000
Capitalized Software Development Costs
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives (in years)	3 years
Accounts Receivable \| Customer Concentration Risk \| Third-Party Risk Mitigation Provider
Finite-Lived Intangible Assets [Line Items]
Concentration risk, percentage	25.00%

Income Taxes - Schedule of Unrecognized Tax Benefits from Uncertain Tax Positions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Unrecognized Tax Benefits [Roll Forward]
Unrecognized tax benefit beginning of year	$ 12,315	$ 9,455	$ 7,816
Increases-tax positions in prior year	1,203	0	0
Increases-tax positions in current year	3,732	2,860	1,639
Statute of limitation expiration	(2,315)	0	0
Unrecognized tax benefit end of year	$ 14,935	$ 12,315	$ 9,455

Other Current Liabilities (Tables)

12 Months Ended

Dec. 31, 2024

Other Liabilities Disclosure [Abstract]

Schedule of Other Current Liabilities

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


	December 31,
	2024		2023
Unearned premium liabilities	$	5,455	$	2,605
Insurance reserves	3,908		4,174
Operating lease liabilities-current	4,273		3,626
Others	2,451		930
Total other current liabilities	$	16,087	$	11,335

Property and Equipment, net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Gross property and equipment	$ 40,961	$ 43,427
Less: Accumulated depreciation	(16,478)	(15,065)
Total property and equipment, net	24,483	28,362
Computer equipment
Property, Plant and Equipment [Line Items]
Gross property and equipment	2,796	4,438
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Gross property and equipment	5,292	5,521
Office equipment
Property, Plant and Equipment [Line Items]
Gross property and equipment	3,729	3,761
Leasehold improvements
Property, Plant and Equipment [Line Items]
Gross property and equipment	28,787	24,208
Construction in process
Property, Plant and Equipment [Line Items]
Gross property and equipment	$ 357	$ 5,499

Income Taxes - Schedule of Change in the Valuation Allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Changes In Valuation Allowance [Roll Forward]
Valuation allowance, at beginning of year	$ 62,380	$ 43,776	$ 17,217
Increase (decrease) in valuation allowance	(62,380)	18,604	26,559
Valuation allowance, at end of year	$ 0	$ 62,380	$ 43,776

Revenue and Other Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Total revenue	$ 794,202	$ 620,445	$ 471,883
Core solutions
Disaggregation of Revenue [Line Items]
Total revenue	180,605	156,692	132,541
Value Added Services
Disaggregation of Revenue [Line Items]
Total revenue	605,011	454,098	327,636
Other
Disaggregation of Revenue [Line Items]
Total revenue	$ 8,586	$ 9,655	$ 11,706

- 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

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Decrease in valuation allowance	$ 62,380	$ (18,604)	$ (26,559)
Unrecognized tax benefits	14,935	$ 12,315	$ 9,455	$ 7,816
Federal
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Decrease in valuation allowance	31,100
Net operating loss carryforwards	14,400
Federal \| Research Tax Credit Carryforward
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Credit carryforwards	900
State
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Decrease in valuation allowance	31,300
Net operating loss carryforwards	85,100
State \| Research Tax Credit Carryforward
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Credit carryforwards	$ 31,400

Goodwill and Intangible Assets, Net (Tables)

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets, Net

Intangible assets, net consisted of the following (in thousands, except years):


	December 31, 2024
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Weighted Average Useful Life in Years
Customer relationships	39,000		(1,300)		37,700		5.0
Developed technology	9,800		(327)		9,473		5.0
Database	4,710		(2,826)		1,884		10.0
Domain names	90		(90)		—		5.0
Patents	252		(252)		—		5.0
Total intangible assets, net	$	53,852	$	(4,795)	$	49,057	5.4


	December 31, 2023
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Weighted Average Useful Life in Years
Database	4,710		(2,355)		2,355		10.0
Domain names	90		(88)		2		5.0
Patents	252		(252)		—		5.0
Total intangible assets, net	$	5,052	$	(2,695)	$	2,357	9.7

Scheduled of Future Amortization Expense of Intangible Assets

Future amortization expense with respect to intangible assets is estimated as follows (in thousands):


Years Ending December 31,
2025	$	10,231
2026	10,231
2027	10,231
2028	10,231

2029	8,133
Total	$	49,057

Schedule of Change in the Carrying Amount of Goodwill

The change in the carrying amount of goodwill during the years ended December 31, 2024, 2023 and 2022 is as follows (in thousands):


Goodwill at December 31, 2022	$	56,060
Goodwill at December 31, 2023	56,060
Acquisition of LiveEasy	40,350
Goodwill at December 31, 2024	$	96,410

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 24
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482548/350-20-55-24

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
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-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
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-Subparagraph (c)
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-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

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-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
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-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1A
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1A

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-2

+ Details

Accrued Employee Expenses (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of Accrued Employee Expenses

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


	December 31,
	2024		2023
Accrued vacation	$	1,100	$	12,399
Accrued bonuses	17,092		14,795
Accrued severance and related personnel cost	—		1,098
Accrued payroll and other	11,965		7,275
Total accrued employee expenses	$	30,157	$	35,567

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies 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 a 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 December 31, 2024 and 2023 was $3.9 million and $4.2 million, respectively, and is included in Other current liabilities on our Consolidated Balance Sheets. Included in Prepaid expenses and other current assets as of December 31, 2024 and 2023 are $6.7 million and $5.1 million, respectively, of deposits held with a third party related to requirements to maintain collateral for this risk mitigation service. Legal Proceedings On February 10, 2023, a lawsuit was filed in the First Judicial District Court of New Mexico, Murphy, et al. v. AppFolio, Inc., et al. (No. D-101-CV-2022-02100), naming us as a defendant and alleging certain violations of the New Mexico Unfair Practices Act and negligent misrepresentation in connection with our tenant screening service (the “Murphy Litigation”). In late November 2023, the parties agreed to settle the Murphy Litigation. We did not admit any wrongdoing in connection with the settlement of the Murphy Litigation. The settlement agreement required us to pay $7.0 million, which was covered in full under our existing insurance policies. As of December 31, 2023, we recorded a liability of $7.0 million within Accrued Expenses and a corresponding receivable amount within Prepaid expenses and other current assets. In April, 2024, the parties filed a stipulation of settlement with the court dismissing all claims against AppFolio with prejudice. As the settlement was paid in March 2024, there is no remaining liability or receivable as of December 31, 2024 In addition to the foregoing, 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 investigative inquires, 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 Consolidated Financial Statements.

Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Property and Equipment (Details)	Dec. 31, 2024
Computer equipment
Property, Plant and Equipment [Line Items]
Depreciation Period	3 years
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Depreciation Period	7 years
Office equipment \| Minimum
Property, Plant and Equipment [Line Items]
Depreciation Period	3 years
Office equipment \| Maximum
Property, Plant and Equipment [Line Items]
Depreciation Period	5 years

Goodwill and Intangible Assets, Net

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, Net

Intangible assets, net consisted of the following (in thousands, except years):


	December 31, 2024
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Weighted Average Useful Life in Years
Customer relationships	39,000		(1,300)		37,700		5.0
Developed technology	9,800		(327)		9,473		5.0
Database	4,710		(2,826)		1,884		10.0
Domain names	90		(90)		—		5.0
Patents	252		(252)		—		5.0
Total intangible assets, net	$	53,852	$	(4,795)	$	49,057	5.4


	December 31, 2023
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Weighted Average Useful Life in Years
Database	4,710		(2,355)		2,355		10.0
Domain names	90		(88)		2		5.0
Patents	252		(252)		—		5.0
Total intangible assets, net	$	5,052	$	(2,695)	$	2,357	9.7

Amortization expense with respect to intangible assets totaled $2.1 million, $2.5 million and $4.4 million for the years ended December 31, 2024, 2023 and 2022, respectively. Future amortization expense with respect to intangible assets is estimated as follows (in thousands):


Years Ending December 31,
2025	$	10,231
2026	10,231
2027	10,231
2028	10,231

2029	8,133
Total	$	49,057

Our goodwill balance is solely attributed to acquisitions. The change in the carrying amount of goodwill during the years ended December 31, 2024, 2023 and 2022 is as follows (in thousands):


Goodwill at December 31, 2022	$	56,060
Goodwill at December 31, 2023	56,060
Acquisition of LiveEasy	40,350
Goodwill at December 31, 2024	$	96,410

Business Combination

12 Months Ended

Dec. 31, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Business Combination

Acquisition of Move EZ, Inc.

On October 22, 2024, we acquired all of the outstanding shares of Move EZ, Inc., d/b/a LiveEasy (“LiveEasy”) for a total cash purchase consideration of $78.5 million. LiveEasy is a concierge platform providing moving and home services throughout the resident onboarding process. As of December 31, 2024, $0.8 million of the purchase consideration remains outstanding and is expected to be settled in 2025.

The transaction was accounted for using the acquisition method, and as a result, assets acquired and liabilities assumed were recorded at their estimated fair values as of the acquisition date.

The following table summarizes the final purchase price allocation (in thousands) as well as the estimated useful lives of the acquired intangible assets over which they are amortized on a straight-line basis, as this approximates the pattern in which economic benefits are consumed:


	Estimated Fair Value		Estimated Useful Life (in years)
Cash and cash equivalents	272
Identified intangible assets:
Customer relationships	39,000		5
Developed technology	9,800		5
Goodwill	40,350
Deferred tax liabilities	(8,874)
Other net tangible liabilities	(2,047)
Net assets acquired	$	78,501

Customer relationships represent the fair value of the underlying contracts and related relationships with LiveEasy's customers and service providers. Developed technology represents the fair value of the technologies that pertain to a customer-

facing concierge platform that provides moving and home services. We used a replacement cost method to determine the fair value of both intangible assets. The assumptions used are development costs, the time required to recreate the assets and profit margin a market participant would receive, and rate of return.

The excess of purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill, which is not deductible for tax purposes. Goodwill is primarily attributed to the assembled workforce of LiveEasy and anticipated operational synergies.

We incurred a total of $0.7 million in transaction costs related to the acquisition and expensed all transaction costs incurred during the period in which such service was received in General and Administrative in the Consolidated Statement of Operations. The results of the acquired operations were included in our consolidated financial statements from the date of acquisition, October 22, 2024. For the period from October 22, 2024 through December 31, 2024, LiveEasy contributed an immaterial amount of revenue and loss before taxes. Pro forma revenue and earnings amounts on a combined basis have not been presented as the historical financial results are immaterial. The pro forma amortization expense adjustment from acquired intangible assets would be $8.1 million, and $9.8 million for the years ended December 31, 2024 and 2023, respectively.

Sales of Subsidiary Business (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Aug. 31, 2022	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on sale of business		$ 0	$ 0	$ 4,156
WegoWise \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Consideration for disposal of subsidiary	$ 5,200
Gain on sale of business	4,200
Disposal group, intangible assets	2,500
Deferred revenue	$ 1,700

Commitments and Contingencies (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Nov. 30, 2023	Dec. 31, 2024	Dec. 31, 2023
Loss Contingencies [Line Items]
Quota share of tenant liability insurance provided, percent		100.00%
Murphy Litigation
Loss Contingencies [Line Items]
Amount required to pay	$ 7.0
Loss contingency, accrual		$ 0.0	$ 7.0
Insurance settlements receivable		0.0	7.0
Other current liabilities
Loss Contingencies [Line Items]
Liability for reported claims and incurred but not reported claims		3.9	4.2
Other current assets
Loss Contingencies [Line Items]
Deposits held with a third party related to insurance services collateral		$ 6.7	$ 5.1

Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Operating lease cost	$ 4,188	$ 4,362	$ 5,403
Variable lease cost	1,479	1,737	1,058
Total lease cost	$ 5,667	$ 6,099	$ 6,461

Goodwill and Intangible Assets, Net - Schedule of Change in the Carrying Amount of Goodwill (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2024 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 56,060
Acquisition of LiveEasy	40,350
Goodwill, ending balance	$ 96,410

- Definition

Amount, after accumulated impairment loss, of asset representing future economic benefit arising from other asset acquired in business combination or from joint venture formation or both, that is not individually identified and separately recognized.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 49
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-49

Reference 2: http://www.xbrl.org/2003/role/exampleRef
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Reference 3: http://www.xbrl.org/2003/role/exampleRef
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Reference 4: http://www.xbrl.org/2003/role/exampleRef
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-URI https://asc.fasb.org/1943274/2147480566/210-10-S99-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
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-Subparagraph (SX 210.9-03(10)(1))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478546/942-210-S99-1

+ Details

Leases (Tables)

12 Months Ended

Dec. 31, 2024

Leases [Abstract]

Schedule of Components of Lease Expense

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


	Year Ended December 31,
	2024		2023		2022
Operating lease cost	$	4,188	$	4,362	$	5,403
Variable lease cost	1,479		1,737		1,058
Total lease cost	$	5,667	$	6,099	$	6,461

Schedule of Lease-Related Assets and Liabilities

Lease-related assets and liabilities were as follows (in thousands, except years and %):


	December 31,
	2024			2023
Assets

Operating lease right-of-use assets	17,472			19,285

Liabilities
Other current liabilities	$	4,273		$	3,626
Operating lease liabilities	37,476			41,114
Total lease liabilities	$	41,749		$	44,740

Weighted-average remaining lease term (years)	7.4			8.3
Weighted-average discount rate	5.1		%	5.1		%

Schedule of Future Minimum Lease Payments Under Non-Cancellable Leases

Future minimum lease payments under non-cancellable leases as of December 31, 2024 were as follows (in thousands):


Years ending December 31,
2025	$	6,251
2026	6,430
2027	6,583
2028	6,717
2029	6,910
Thereafter	17,463
Total future minimum lease payments	50,354
Less: imputed interest	(8,605)
Total	$	41,749

Stockholders' Equity	12 Months Ended
Stockholders' Equity	Dec. 31, 2024
Equity [Abstract]
Stockholders' Equity	Stockholders' Equity Amended and Restated Certificate of Incorporation Under our Amended and Restated Certificate of Incorporation, we are authorized to issue 250,000,000 shares of Class A common stock, 50,000,000 shares of Class B common stock and 25,000,000 shares of undesignated preferred stock, each with a par value of $0.0001 per share. Class A Common Stock and Class B Common Stock Holders of our Class A common stock and Class B common stock are entitled to dividends when, as, and if declared by our Board of Directors, subject to the rights of the holders of all classes of stock outstanding having priority rights to dividends. As of December 31, 2024, we have not declared any dividends. The holder of each share of Class A common stock is entitled to one vote, while the holder of each share of Class B common stock is entitled to ten votes. Each share of our Class B common stock is convertible at any time at the option of the holder into one share of our Class A common stock and generally converts into a share of our Class A common stock upon transfer. Class A common stock and Class B common stock are collectively referred to as common stock throughout the notes to these financial statements, unless otherwise noted. Preferred Stock Our Board of Directors, subject to the limitations prescribed by Delaware law, has the authority to issue up to 25,000,000 shares of preferred stock and to determine the price, rights, preferences, privileges and restrictions, including voting rights, of those shares without any further vote or action by the stockholders. Share Repurchase Program On February 20, 2019, our Board of Directors authorized a $100.0 million share repurchase program (the "Share Repurchase Program") relating to our outstanding shares of Class A common stock. Under the Share Repurchase Program, share repurchases may be made from time to time, as directed by a committee consisting of three directors, in open market purchases or in privately negotiated transactions at a repurchase price that the members of the committee unanimously believe is below intrinsic value conservatively determined. The Share Repurchase Program does not obligate us to repurchase any specific dollar amount or number of shares, and there is no expiration date for the Share Repurchase Program, which may be modified, suspended or terminated at any time and for any reason. We have not made any repurchases under the Share Repurchase Program during the years ended December 31, 2024, 2023 and 2022.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
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-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-14

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-14

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 16
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-16

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-18

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Name Accounting Standards Codification
-Section 50
-Paragraph 18
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-Publisher FASB
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-18

+ Details

Investment Securities and Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Available-for-sale investment securities:	$ 235,745	$ 162,196
Fair Value, Recurring
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Total	260,912	199,296
Fair Value, Recurring \| U.S. government and agency securities
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Available-for-sale investment securities:	235,745	162,196
Fair Value, Recurring \| Money market funds
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Cash equivalents	25,167	37,100
Fair Value, Recurring \| Level 1
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Total	25,167	37,100
Fair Value, Recurring \| Level 1 \| U.S. government and agency securities
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Available-for-sale investment securities:	0	0
Fair Value, Recurring \| Level 1 \| Money market funds
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Cash equivalents	25,167	37,100
Fair Value, Recurring \| Level 2
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Total	235,745	162,196
Fair Value, Recurring \| Level 2 \| U.S. government and agency securities
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Available-for-sale investment securities:	235,745	162,196
Fair Value, Recurring \| Level 2 \| Money market funds
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Cash equivalents	$ 0	$ 0

Stockholders' Equity - Share Repurchase Program (Narrative) (Details)	Feb. 20, 2019 USD ($) director
Equity [Abstract]
Authorized amount under share repurchase program \| $	$ 100,000,000
Number of directors to authorized repurchases \| director	3

Workforce Reduction - Schedule of Changes in the Accrued Severance and Related Personnel Cost (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2024	Dec. 31, 2023
Restructuring Reserve [Roll Forward]
Beginning balance		$ 853	$ 0
Severance and related personnel cost	$ 10,300		10,278
Cash Payments		(853)	(9,425)
Ending balance		$ 0	$ 853

Capitalized Software Development Costs, net (Tables)

12 Months Ended

Dec. 31, 2024

Research and Development [Abstract]

Schedule of Capitalized Software Development Costs, Net

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


	December 31,
	2024		2023
Capitalized software development costs, gross	$	117,480	$	126,606
Less: Accumulated amortization	(102,051)		(105,044)
Capitalized software development costs, net	$	15,429	$	21,562

Schedule of Future Amortization Expense of Capitalized Software Development Costs

Future amortization expense with respect to capitalized software development costs is estimated as follows (in thousands):


Years Ending December 31,
2025	$	8,077
2026	4,459
2027	2,893

Total amortization expense	$	15,429

Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details)	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Income Tax Disclosure [Abstract]
U.S. federal statutory income tax rate	21.00%	21.00%	21.00%
State and local income taxes, net of federal benefit	(2.00%)	(44.00%)	9.00%
Change in valuation allowance	(37.00%)	215.00%	(37.00%)
Stock-based compensation expense	(13.00%)	(108.00%)	7.00%
Federal research and development tax credits	(10.00%)	(93.00%)	5.00%
Non-deductible officers' compensation	5.00%	79.00%	(6.00%)
Other permanent differences	0.00%	(4.00%)	(1.00%)
(Benefit from) provision for income taxes	(36.00%)	66.00%	(2.00%)

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Class A common stock	Class B common stock	Common Stock Class A common stock	Common Stock Class B common stock	Additional Paid-in Capital	Accumulated Other Comprehensive (Loss) Income	Treasury Stock	Retained Earnings
Beginning balance (in shares) at Dec. 31, 2021				19,417,000	15,408,000
Beginning balance at Dec. 31, 2021	$ 297,381			$ 2	$ 2	$ 171,930	$ (194)	$ (25,756)	$ 151,397
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)				303,000	27,000
Exercise of stock options	4,474					4,474
Stock-based compensation	43,937					43,937
Vesting of restricted stock units, net of shares withheld for taxes (in shares)				154,000
Vesting of restricted stock units, net of shares withheld for taxes	(10,637)					(10,637)
Conversion of Class B common stock to Class A common stock (in shares)				689,000	(689,000)
Issuance of restricted stock awards (in shares)				6,000
Other comprehensive (loss) income	(1,490)						(1,490)
Net (loss) income	(68,119)								(68,119)
Ending balance (in shares) at Dec. 31, 2022				20,569,000	14,746,000
Ending 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)				255,000
Exercise of stock options	2,595					2,595
Stock-based compensation	53,240					53,240
Vesting of restricted stock units, net of shares withheld for taxes (in shares)				289,000
Vesting of restricted stock units, net of shares withheld for taxes	(28,554)					(28,554)
Conversion of Class B common stock to Class A common stock (in shares)				630,000	(630,000)
Issuance of restricted stock awards (in shares)				6,000
Other comprehensive (loss) income	1,783						1,783
Net (loss) income	2,702								2,702
Ending balance (in shares) at Dec. 31, 2023		21,749,000	14,116,000	21,749,000	14,116,000
Ending 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)	251,000			251,000
Exercise of stock options	$ 3,924					3,924
Stock-based compensation	61,239					61,239
Vesting of restricted stock units, net of shares withheld for taxes (in shares)				288,000
Vesting of restricted stock units, net of shares withheld for taxes	(47,327)					(47,327)
Conversion of Class B common stock to Class A common stock (in shares)				953,000	(953,000)
Other comprehensive (loss) income	74						74
Net (loss) income	204,068								204,068
Ending balance (in shares) at Dec. 31, 2024		23,241,000	13,163,000	23,241,000	13,163,000
Ending balance at Dec. 31, 2024	$ 519,290			$ 2	$ 2	$ 254,821	$ 173	$ (25,756)	$ 290,048

Stock-Based Compensation - Narrative (Details)	12 Months Ended
Stock-Based Compensation - Narrative (Details)	Dec. 31, 2024 plan shares	Dec. 31, 2015 shares
Share-Based Payment Arrangement [Abstract]
Number of stock incentive plans \| plan	2
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of shares reserved for stock incentive plan (in shares)		2,000,000
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of shares reserved for stock incentive plan (in shares)	1,250,000
Purchase price of common stock (as a percent)	85.00%
Purchase period	6 months
Number of additional shares allowable under the plan (in shares)	1,250,000

- 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

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-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

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-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2024

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Basis of Presentation

The accompanying Consolidated Financial Statements were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

Reclassification

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

Principles of Consolidation

The accompanying Consolidated Financial Statements include the operations of AppFolio, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management 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 assets and liabilities assumed in business combinations, the fair value of financial instruments, useful lives of property and equipment and intangible assets, capitalized software development costs, incremental borrowing rate applied in lease accounting, impairment of goodwill and long-lived assets, the period of benefit associated with deferred costs, stock-based compensation, income taxes, and contingencies. Actual results could differ from those estimates and any such differences may have a material impact on our Consolidated Financial Statements.

Segment Information

Our chief operating decision maker ("CODM"), the Chief Executive Officer, allocates resources and assesses financial performance based upon discrete financial information at the consolidated level. There are no segment managers who are held accountable by our CODM, or anyone else, for operations, operating results and planning for levels or components below the consolidated unit level. Accordingly, we have determined that we operate as a single operating and reportable segment.

Our CODM uses consolidated net income (loss) as the sole measure of segment profit or loss. Significant segment expenses include cost of revenue (excluding depreciation and amortization), sales and marketing, research and product development, general and administrative expenses, and depreciation and amortization. For expenses incurred during the years ended December 31, 2024, 2023, and 2022, refer to our Consolidated Statements of Operations. Stock-based compensation expense is also recognized as a significant segment expense. Details regarding this expense for the years ended December 31, 2024, 2023, and 2022 was included in the parenthetical note to the respective Consolidated Statements of Operations.

Concentrations of Credit Risk

Financial instruments that potentially subject us to credit risk consist principally of cash, cash equivalents, restricted cash, accounts receivable, and investment securities. We maintain cash balances at financial institutions in excess of amounts insured by United States government agencies or payable by the United States government directly. We place our cash with high credit, quality financial institutions. We invest in investment securities with a minimum rating of A by Standard & Poor's or A-1 by Moody's and regularly monitor our investment security portfolio for changes in credit ratings.

Concentrations of credit risk with respect to accounts receivable and revenue are limited due to a large, diverse customer base. As of December 31, 2024, (i) no individual customer exceeded 10% of our total revenues in any of the periods presented, and (ii) 25% of our accounts receivable balance was attributable to amounts due from a risk mitigation provider. For

purposes of assessing concentration of credit risk and significant customers, a group of residents that are receiving services from a third party that controls and transfers the specified services are regarded as one single customer.

Business Combinations

The results of a business acquired in a business combination are included in our Consolidated Financial Statements from the date of acquisition. We allocate the purchase price to the identifiable assets and liabilities of the acquired business at their acquisition date fair values. The excess of the purchase price over the amount allocated to the identifiable assets and liabilities, if any, is recorded as goodwill.

Determining the fair value of assets acquired and liabilities assumed requires management to make significant judgments and estimates, including the selection of valuation methodologies and assumptions. Critical estimates used in valuing certain intangible assets include, but are not limited to, development costs, the time required to recreate the assets and profit margin a market participant would receive, and rate of return. These estimates are based on information obtained from the management of the acquired companies, our assessment of the information, and historical experience. Our estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period of up to one year from the acquisition date, we may record adjustments to the preliminary fair value of the assets acquired and liabilities assumed with a corresponding offset to goodwill for these business combinations.

Acquisition-related transaction costs are not included as a component of consideration transferred, but are accounted for as an operating expense in the period in which the costs are incurred.

Fair Value Measurements

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We use a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, which are the following:

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, in the marketplace.

Level 3 - Unobservable inputs that are supported by little or no market activity.

Cash, Cash Equivalents and Restricted Cash

We consider all highly liquid investments, readily convertible to cash, and which have a remaining maturity date of three months or less at the date of purchase, to be cash equivalents. Cash and cash equivalents are recorded at fair value and consist primarily of bank deposits, and money market funds.

Investment Securities

Our investment securities currently consist of United States government and agency securities. We classify investment securities as available-for-sale at the time of purchase and reevaluate such classification at each balance sheet date. All investments are recorded at estimated fair value and investments with original maturities of less than one year at the time of purchase are classified as short-term. Unrealized gains and losses for available-for-sale investment securities are included in accumulated other comprehensive income, a component of stockholders' equity.

For available-for-sale debt securities in an unrealized loss position, we first assess whether we intend to sell, or whether it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. If either of these criteria is met, the security’s amortized cost basis is written down to fair value through income. For securities in an unrealized loss position that do not meet these criteria, we evaluate whether the decline in fair value has resulted from credit loss or other factors. If this assessment indicates a credit loss exists, the credit-related portion of the loss is recorded as an allowance for losses on the security. No allowance for credit losses for available-for-sale investment securities was recorded as of December 31, 2024 and 2023.

Accounts Receivable

Accounts receivable are recorded at the invoiced amount, net of an allowance for credit losses. The allowance for credit losses is based on historical loss experience, the number of days that receivables are past due, and an evaluation of the potential risk of loss associated with delinquent accounts. Accounts receivable considered uncollectible are charged against the allowance for credit losses when identified. We do not have any off-balance sheet credit exposure related to our customers. As of December 31, 2024 and 2023, our allowance for credit losses was not material.

Property and Equipment

Property and equipment is stated at cost net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of assets as follows:


Asset Type						Depreciation Period
Computer equipment						3 years
Furniture and fixtures						7 years
Office equipment						3 to 5 years
Leasehold improvements						Shorter of remaining life of lease or asset life

Leases

We determine if an arrangement is a lease at inception. Operating lease right-of-use ("ROU") assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments, over the lease term at commencement date. As none of our leases provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU assets also include any lease payments made to the lessor before or at the lease commencement date and excludes lease incentives received and initial direct costs incurred. Our lease terms may include options to extend the lease when it is reasonably certain that we will exercise that option.

Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. We have lease arrangements with lease and non-lease components, which are generally accounted for as a single lease component. Leases with an initial term of twelve months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term.

Capitalized Software Development Costs

Software development costs consist of certain payroll and stock-based compensation costs incurred to develop functionality of our internal-use software solutions. We capitalize certain software development costs for new offerings as well as significant upgrades and enhancements to our existing software solutions. Capitalized software development costs are amortized using the straight-line method over an estimated useful life of three years. We do not transfer ownership of our software, license, or lease our software to third parties.

Goodwill and Intangible Assets, Net

Goodwill is tested for impairment at least annually at the reporting unit level or at other times whenever events or changes in circumstances indicate that goodwill might be impaired. A qualitative assessment is performed to determine whether it is more likely than not that the fair value of its reporting unit is less than its carrying amount. A quantitative assessment is performed if the qualitative assessment results in a more-likely-than-not determination or if a qualitative assessment is not performed. The quantitative assessment considers whether the carrying amount of a reporting unit exceeds its fair value, in which case an impairment charge is recorded to the extent that the reporting unit’s carrying value exceeds its fair value.

We test for goodwill impairment annually during the fourth quarter of the calendar year. Based on the annual assessment performed at November 1, 2024, we determined it was not more likely than not that our reporting unit fair value was less than its carrying value and no quantitative impairment test assessment was required. No impairment losses were recorded for goodwill during the years ended December 31, 2024, 2023 and 2022.

Intangible assets primarily consist of customer relationships, developed technology, acquired database, domain names and patents, which are recorded at cost, less accumulated amortization. We determine the appropriate useful life of our intangible assets by performing an analysis of expected cash flows of the acquired assets. Intangible assets are amortized over their estimated useful lives on a straight-line basis, which approximates the pattern in which the economic benefits of the assets are consumed.

Impairment of Long-Lived Assets

We assess the recoverability of our long-lived assets when events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability is measured by comparing the carrying amount of the asset or asset group to the future undiscounted cash flows we expect the asset or asset group to generate. Any excess of the carrying value of the asset or asset group above its fair value is recognized as an impairment loss. We recorded net lease-related impairment charges of $22.0 million for the year ended December 31, 2022. Refer to Note 11, Leases for additional information. There were no impairment charges related to the identified long-lived assets for the years ended December 31, 2024 and 2023.

Revenue Recognition

We generate revenue from our customers primarily for subscriptions to access our core solutions and Value Added Services. Revenue is recognized upon transfer of control of promised services in an amount that reflects the consideration we expect to receive in exchange for those services. We enter into contracts that can include various combinations of services, which are generally capable of being distinct, distinct within the context of the contract, and accounted for as separate performance obligations. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. We recognize revenue in proportion to the amount that we have the right to invoice for certain core solutions and Value Added Services, as that amount corresponds directly with our performance completed to date. Refer to Note 16, Revenue and Other Information for the disaggregated breakdown of revenue between Core solutions, Value Added Services and Other revenue.

Core Solutions

We charge our customers on a subscription basis for our core solutions. Our customers do not have rights to the underlying software code of our solutions, and, accordingly, we recognize subscription revenue over time on a straight-line basis over the contract term beginning on the date that our service is made available to the customer. The terms of our subscription agreements are monthly, annual, and multiyear and we typically invoice our customers for subscription services in monthly or annual installments, in advance of the subscription period.

Value Added Services

We primarily charge our customers on a usage basis for our Value Added Services. Usage-based fees are charged either as a percentage of the transaction amount (e.g., for certain of our electronic payment services) or on a flat fee per transaction basis with no minimum usage commitments (e.g., for our tenant screening and risk mitigation services). We recognize revenue for usage-based services in the period the service is rendered. Our electronic payments services fees are recorded gross of interchange and payment processing related fees. We generally invoice our customers for usage-based services on a monthly basis or collect the fee at the time of service. We also have certain Value Added Services which are charged on a subscription basis. We typically invoice our customers for subscription-based services in monthly installments, in advance of the subscription period. We recognize revenue for subscription-based services over time on a straight-line basis over the contract term beginning on the date that our service is made available to the customer. Some subscription or usage-based Value Added Services, such as fees for electronic payment services, are paid by either our customers or our customers' stakeholders at the time the services are rendered.

We work with third-party partners to provide certain of our Value Added Services. For these Value Added Services, we evaluate whether we are the principal, and report revenue on a gross basis, or the agent, and report revenue on a net basis. In this assessment we consider if we obtain control of the specified services before they are transferred to the customer, as well as other indicators such as whether we are the party primarily responsible for fulfillment, and whether we have discretion in establishing price.

Other Revenue

Other revenue include fees from one-time services related to the implementation of our software solutions and other recurring or one-time fees related to our customers who are not otherwise using our core solutions. This includes legacy customers of businesses we have acquired where the customers haven't migrated to our core solutions. The fees for implementation and data migration services are billed upon signing our core subscription contract and are recognized as revenue in the period the service is rendered. Other services are billed when the services rendered are completed and delivered to the customer or billed in advance and deferred over the subscription period.

Deferred Costs

Deferred costs, which primarily consist of sales commissions, are considered incremental and recoverable costs of obtaining a contract with a customer. These costs are deferred and then amortized on a straight-line basis over a period of benefit that we have determined to be three years. We typically do not pay commissions for contract renewals. We determined the period of benefit by taking into consideration our customer contract term, the useful life of our internal-use software, average customer life, and other factors. Amortization expense for deferred costs is included within sales and marketing expense in the accompanying Consolidated Statements of Operations.

Deferred costs were $16.8 million and $15.9 million as of December 31, 2024 and 2023, respectively, of which $9.9 million and $8.7 million, respectively, are included in Prepaid expenses and other current assets and $6.9 million and $7.2 million, respectively, are included in Other long-term assets in the accompanying Consolidated Balance Sheets. Amortization expense for deferred costs was $10.0 million, $9.5 million, and $8.1 million for the years ended December 31, 2024, 2023, and 2022, respectively. For the years ended December 31, 2024 and 2023, no impairments were identified in relation to the costs capitalized for the periods presented.

Cost of Revenue (Exclusive of Depreciation and Amortization)

Many of our Value Added Services are facilitated by third-party service providers. Cost of revenue paid to these third-party service providers includes, without limitation, the cost of electronic interchange and payment processing-related services to support our payments services, the cost of credit reporting services for our tenant screening services, and various costs associated with our risk mitigation service providers. These third-party costs vary both in amount and as a percent of revenue for each Value Added Service offering. Cost of revenue also consists of personnel-related costs for our employees focused on customer service and the support of our operations (including salaries, cash bonuses, benefits, and stock-based compensation), platform infrastructure costs (such as data center operations and hosting-related costs), and allocated shared and other costs. Cost of revenue excludes depreciation of property and equipment, amortization of capitalized software development costs and amortization of intangible assets.

Sales and Marketing

Sales and marketing expense consists of personnel-related costs for our employees focused on sales and marketing (including salaries, sales commissions, cash bonuses, benefits, and stock-based compensation), costs associated with sales and marketing activities, and allocated shared and other costs. Marketing activities include advertising, online lead generation, lead nurturing, customer and industry events, and the creation of industry-related content and collateral. We focus our sales and marketing efforts on generating awareness of our software solutions, creating sales leads, establishing and promoting our brands, and cultivating an educated community of successful and vocal customers. Advertising expenses were $10.6 million, $8.6 million and $9.2 million for each of the years ended December 31, 2024, 2023 and 2022, respectively, and are expensed as incurred.

Research and Product Development

Research and product development expense consists of personnel-related costs for our employees focused on research and product development (including salaries, cash bonuses, benefits, and stock-based compensation), fees for third-party development resources, and allocated shared and other costs. Our research and product development efforts are focused on expanding functionality and the ease of use of our existing software solutions by adding new core functionality, Value Added Services and other improvements, as well as developing new products and services. We capitalize our software development costs which meet the criteria for capitalization. Amortization of capitalized software development costs is included in depreciation and amortization expense.

General and Administrative

General and administrative expense consists of personnel-related costs for employees in our executive, finance, information technology, human resources, legal, compliance, and administrative organizations (including salaries, cash bonuses, benefits, and stock-based compensation). In addition, general and administrative expense includes fees for third-party professional services (including audit, legal, compliance, and tax services), transaction costs related to business combination, sales of subsidiary businesses, regulatory fines and penalties, other corporate expenses, impairment of long-lived assets, and allocated shared costs.

Depreciation and Amortization

Depreciation and amortization expense includes depreciation of property and equipment, amortization of capitalized software development costs, and amortization of intangible assets. We depreciate or amortize property and equipment, software development costs, and intangible assets over their expected useful lives on a straight-line basis, which approximates the pattern in which the economic benefits of the assets are consumed.

Stock-Based Compensation

We recognize stock-based compensation expense for restricted stock awards ("RSAs") and restricted stock units ("RSUs") with only service conditions on a straight-line basis over the requisite service period. For RSUs with both service and performance conditions ("PSUs"), compensation cost is recorded on a graded-vesting method, if it is probable that the performance condition will be achieved. Adjustments to compensation expense are made each period based on changes in our estimate of the number of PSUs that are probable of vesting. PSUs will vest on the vesting date and upon achievement of the relevant performance metric once such calculation is finalized in accordance with our internal policies. We estimate a forfeiture rate to calculate our stock-based compensation expense for our stock-based awards.

Income Taxes

We recognize deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the Consolidated

Statements of Operations in the period that includes the enactment date. A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized. In evaluating the need for a valuation allowance at each reporting period, we consider the weighting of all available positive and negative evidence, which includes, among other things, the nature, frequency and severity of current and cumulative taxable income or losses, future projections of profitability, timing of the future reversal of existing temporary differences and the duration of statutory carryforward periods.

Net Income (Loss) per Common Share

Basic net income (loss) per share includes no dilution and is computed by dividing net income (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing net income for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding during the period. The dilutive effect of outstanding options and equity incentive awards is reflected in diluted net income per share by application of the treasury stock method. The calculation of diluted net income per share excludes all anti-dilutive common shares.

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):


	Year Ended December 31,
	2024		2023		2022
Basic net income (loss) per share:
Numerator
Net income (loss)	$	204,068	$	2,702	$	(68,119)
Less: undistributed earnings to participating securities	12		—		—
Net income (loss) attributable to common stockholders	$	204,056	$	2,702	$	(68,119)
Denominator
Weighted average common shares outstanding	36,254		35,636		35,015
Less: Weighted average unvested restricted shares subject to repurchase	2		7		5
Weighted average common shares outstanding; basic	36,252		35,629		35,010
Net income (loss) per common share; basic	$	5.63	$	0.08	$	(1.95)
Diluted net income (loss) per share:
Numerator
Net income (loss) attributable to common stockholders	$	204,056	$	2,702	$	(68,119)
Denominator
Weighted average common shares outstanding; basic	36,252		35,629		35,010
Add: Weighted average dilutive options outstanding	58		333		—
Add: Weighted average dilutive RSUs outstanding	472		455		—
Weighted average common shares outstanding; diluted	36,782		36,417		35,010
Net income (loss) per common share; diluted	$	5.55	$	0.07	$	(1.95)

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):


	Year Ended December 31,
	2024	2023	2022
Unvested Restricted Stock Awards	—	6	6
Options	—	120	516
Restricted Stock Units	2	20	1,162
Total potentially dilutive securities	2	146	1,684

Recent Accounting Pronouncements Adopted

In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The amendments “improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.” In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. ASU 2023-07 is effective for calendar year-end public business entities in the 2024 annual period and in 2025 for interim periods. We adopted ASU 2023-07 for the 2024 annual period on a retrospective basis. This adopted ASU results in us including the additional required disclosures. Refer to Segment Information in this note for more information.

Recent Accounting Pronouncements Not Yet Adopted

In December 2023, FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, which requires that an entity, on an annual basis, disclose additional income tax information, primarily related to the rate reconciliation and income taxes are paid. The amendment in the ASU is intended to enhance the transparency and decision usefulness of income tax disclosures. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively and is effective for calendar year-end public business entities in the 2025 annual period and in 2026 for interim periods with early adoption permitted. We plan to adopt the standard in our fiscal year 2025 annual financial statements, and we expect the adoption of the standard will impact certain of our income tax disclosures.

In November 2024, FASB issued ASU 2024-03, Disaggregation of Income Statement Expense. The new standard requires additional disclosures about specific types of expenses included in the expense captions presented on the face of income statements as well as disclosures about selling expenses. The guidance applies prospectively with the option to apply the standard retrospectively and is effective for calendar year-end public business entities in the 2027 annual period and in 2028 for interim periods with early adoption permitted. We are currently evaluating the impact of this ASU on our Consolidated Financial Statements.

Investment Securities and Fair Value Measurements - Narrative (Details) - USD ($)	Dec. 31, 2024	Dec. 31, 2023
Fair Value Disclosures [Abstract]
Allowance for credit losses, available-for sale investments	$ 0	$ 0
Non-marketable debt securities	$ 2,000,000.0

Accrued Employee Expenses

12 Months Ended

Dec. 31, 2024

Accrued Employee Expenses

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


	December 31,
	2024		2023
Accrued vacation	$	1,100	$	12,399
Accrued bonuses	17,092		14,795
Accrued severance and related personnel cost	—		1,098
Accrued payroll and other	11,965		7,275
Total accrued employee expenses	$	30,157	$	35,567

During the year ended December 31, 2023, we expensed and paid $14.9 million of severance related to separation costs associated with our former Chief Executive Officer's Transition and Separation Agreement, dated March 1, 2023.

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 17, Workforce Reduction for additional information.

Summary of Significant Accounting Policies - Schedule of Computation of Basic and Diluted Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Numerator
Net income (loss)	$ 204,068	$ 2,702	$ (68,119)
Less: undistributed earnings to participating securities	12	0	0
Net income (loss) attributable to common stockholders	$ 204,056	$ 2,702	$ (68,119)
Denominator
Weighted average common shares outstanding (in shares)	36,254	35,636	35,015
Less: weighted average unvested restricted shares subject to repurchase (in shares)	2	7	5
Weighted average common shares outstanding; basic (in shares)	36,252	35,629	35,010
Net income (loss) per common share; basic (in dollars per share)	$ 5.63	$ 0.08	$ (1.95)
Numerator
Net income (loss) attributable to common stockholders	$ 204,056	$ 2,702	$ (68,119)
Denominator
Weighted average common shares outstanding; basic (in shares)	36,252	35,629	35,010
Weighted average common shares outstanding; diluted (in shares)	36,782	36,417	35,010
Net income (loss) per common share; diluted (in dollars per share)	$ 5.55	$ 0.07	$ (1.95)
Options
Denominator
Add: weighted average diluted awards outstanding (in shares)	58	333	0
Restricted Stock Units
Denominator
Add: weighted average diluted awards outstanding (in shares)	472	455	0

Accrued Employee Expenses - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2023
Restructuring Cost and Reserve [Line Items]
Severance costs		$ 12,083
Severance and related personnel cost	$ 10,300	10,278
Former Chief Executive Officer
Restructuring Cost and Reserve [Line Items]
Severance costs		$ 14,900

- 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

Income Taxes - Schedule of Components of Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Deferred income tax assets:
Net operating loss carryforwards	$ 9,201	$ 6,502
Research and development tax credits	24,326	19,513
Capitalized research and software costs	66,090	33,958
Stock-based compensation	413	2,894
Lease liability	11,139	11,914
Other	1,495	3,384
Total deferred tax assets	112,664	78,165
Valuation allowance	0	(62,380)	$ (43,776)	$ (17,217)
Deferred tax assets, net of valuation allowance	112,664	15,785
Deferred tax liabilities:
Property and equipment	(3,351)	(4,189)
Intangible assets	(15,387)	(2,921)
Capitalized commissions	(4,463)	(4,237)
State taxes	(7,749)	0
Lease asset	(4,695)	(5,135)
Other	(109)	0
Total deferred tax liabilities	(35,754)	(16,482)
Total net deferred tax liabilities	$ 76,910
Total net deferred tax liabilities		$ (697)

Other Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Other Liabilities Disclosure [Abstract]
Unearned premium liabilities	$ 5,455	$ 2,605
Insurance reserves	3,908	4,174
Operating lease liabilities-current	4,273	3,626
Others	2,451	930
Total other current liabilities	$ 16,087	$ 11,335

Leases - Schedule of Future Minimum Lease Payments Under Non-Cancellable Leases (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Leases [Abstract]
2025	$ 6,251
2026	6,430
2027	6,583
2028	6,717
2029	6,910
Thereafter	17,463
Total future minimum lease payments	50,354
Less: imputed interest	(8,605)
Total	$ 41,749	$ 44,740

Stockholders' Equity - Preferred Stock (Narrative) (Details) - shares	Dec. 31, 2024	Dec. 31, 2023
Equity [Abstract]
Preferred stock, shares authorized (in shares)	25,000,000	25,000,000

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

12 Months Ended

Dec. 31, 2024

Dec. 31, 2023

Dec. 31, 2022

Income Statement [Abstract]

Revenue

$ 794,202

$ 620,445

$ 471,883

Costs and operating expenses:

Cost of revenue (exclusive of depreciation and amortization)

^[1]

282,067

238,076

191,826

Sales and marketing

^[1]

110,597

107,602

107,398

Research and product development

^[1]

160,375

151,364

111,118

General and administrative

^[1]

85,974

93,452

100,792

Depreciation and amortization

19,545

28,988

33,119

Total costs and operating expenses

658,558

619,482

544,253

Income (loss) from operations

135,644

963

(72,370)

Other income (loss), net

697

4,469

Interest income, net

13,981

7,031

1,184

Income (loss) before provision for income taxes

150,322

7,997

(66,717)

(Benefit from) provision for income taxes

(53,746)

5,295

1,402

Net income (loss)

$ 204,068

$ 2,702

$ (68,119)

Net income (loss) per common share:

Basic (in dollars per share)

$ 5.63

$ 0.08

$ (1.95)

Diluted (in dollars per share)

$ 5.55

$ 0.07

$ (1.95)

Weighted average common shares outstanding:

Basic (in shares)

36,252

35,629

35,010

Diluted (in shares)

36,782

36,417

35,010

[1]

(1) Includes stock-based compensation expense as follows:


	Year Ended December 31,
	2024		2023		2022
Stock-based compensation expense included in costs and operating expenses:
Cost of revenue (exclusive of depreciation and amortization)	$	4,522	$	3,703	$	2,640
Sales and marketing	8,030		5,983		8,681
Research and product development	25,414		20,974		16,030
General and administrative	22,361		21,704		13,584
Total stock-based compensation expense	$	60,327	$	52,364	$	40,935

Investment Securities and Fair Value Measurements - Schedule of Fair Values of Available-for-Sale Investment Securities, by Remaining Contractual Maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Amortized Cost
Due in one year or less	$ 235,509	$ 162,062
Amortized Cost	235,509	162,062
Estimated Fair Value
Due in one year or less	235,745	162,196
Available-for-sale investment securities:	$ 235,745	$ 162,196

Business Combination - Narrative (Details) - USD ($) $ in Thousands		12 Months Ended
	Oct. 22, 2024	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Net income (loss)		$ 204,068	$ 2,702	$ (68,119)
Move EZ, Inc., d/b/a LiveEasy
Business Acquisition [Line Items]
Cash purchase consideration	$ 78,500
Consideration payable		800
Acquisition transaction costs	$ 700
Move EZ, Inc., d/b/a LiveEasy \| Amortization Expense Adjustment
Business Acquisition [Line Items]
Net income (loss)		$ (8,100)	$ (9,800)

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-6

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
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-URI https://asc.fasb.org/1943274/2147483443/250-10-50-9

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-SubTopic 60
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
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-Publisher FASB
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-Section 65
-Paragraph 2
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-URI https://asc.fasb.org/1943274/2147478666/740-323-65-2

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-Name Accounting Standards Codification
-Section S99
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483621/220-10-S99-2

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-URI https://asc.fasb.org/1943274/2147482907/825-10-50-28

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-Section 65
-Paragraph 1
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-URI https://asc.fasb.org/1943274/2147480175/815-40-65-1

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+ Details

Leases - Schedule of Lease-Related Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Assets
Operating lease right-of-use assets	$ 17,472	$ 19,285
Liabilities
Other current liabilities	$ 4,273	$ 3,626
Operating lease liability, current, location	Other current liabilities	Other current liabilities
Operating lease liabilities	$ 37,476	$ 41,114
Total lease liabilities	$ 41,749	$ 44,740
Weighted-average remaining lease term (years)	7 years 4 months 24 days	8 years 3 months 18 days
Weighted-average discount rate	5.10%	5.10%

Revenue and Other Information

12 Months Ended

Dec. 31, 2024

Revenue from Contract with Customer [Abstract]

Revenue and Other Information

The following table presents our revenue categories (in thousands):


	Year Ended December 31,
	2024		2023		2022
Core solutions	$	180,605	$	156,692	$	132,541
Value Added Services	605,011		454,098		327,636
Other	8,586		9,655		11,706
Total revenue	$	794,202	$	620,445	$	471,883

Our revenue is generated primarily from United States customers. 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

Workforce Reduction - Schedule of Total Severance and Related Personnel Costs by Function (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($)
Restructuring Cost and Reserve [Line Items]
Severance costs	$ 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
Sales and marketing
Restructuring Cost and Reserve [Line Items]
Severance costs	3,795
Research and product development
Restructuring Cost and Reserve [Line Items]
Severance costs	3,407
General and administrative
Restructuring Cost and Reserve [Line Items]
Severance costs	$ 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

Capitalized Software Development Costs, net - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Research and Development [Abstract]
Capitalized software development costs during the period	$ 6.1	$ 5.5	$ 17.7
Amortization expense with respect to software development costs during the period	12.2	19.2	$ 23.6
Fully amortized capitalized software development costs disposed of	$ 15.2	$ 8.2

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Dec. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Income Taxes

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Set forth below is a reconciliation of the components that caused our (benefit from) provision for income taxes to differ from amounts computed by applying the United States federal statutory rate:


	Year Ended December 31,
	2024		2023		2022
U.S. federal statutory income tax rate	21	%	21	%	21	%
State and local income taxes, net of federal benefit	(2)		(44)		9
Change in valuation allowance	(37)		215		(37)
Stock-based compensation expense	(13)		(108)		7
Federal research and development tax credits	(10)		(93)		5
Non-deductible officers' compensation	5		79		(6)
Other permanent differences	—		(4)		(1)
(Benefit from) provision for income taxes	(36)	%	66	%	(2)	%

The (benefit from) provision for income tax consists of the following (in thousands):


	Year Ended December 31,
	2024		2023		2022
Current
Federal	$	26,452	$	3,485	$	1,313
State and local	6,280		2,299		686
Foreign	30		—		—
Total current	32,762		5,784		1,999
Deferred
Federal	(46,578)		(477)		(854)
State and local	(39,930)		(12)		257
Total deferred	(86,508)		(489)		(597)
Total (benefit from) provision for income taxes	$	(53,746)	$	5,295	$	1,402

The components of deferred tax assets (liabilities) were as follows (in thousands):


	December 31,
	2024		2023
Deferred income tax assets:
Net operating loss carryforwards	$	9,201	$	6,502
Research and development tax credits	24,326		19,513
Capitalized research and software costs	66,090		33,958
Stock-based compensation	413		2,894
Lease liability	11,139		11,914
Other	1,495		3,384
Total deferred tax assets	112,664		78,165
Valuation allowance	—		(62,380)
Deferred tax assets, net of valuation allowance	$	112,664	$	15,785
Deferred tax liabilities:
Property and equipment	$	(3,351)	$	(4,189)
Intangible assets	(15,387)		(2,921)
Capitalized commissions	(4,463)		(4,237)
State taxes	(7,749)		—
Lease asset	(4,695)		(5,135)
Other	(109)		—
Total deferred tax liabilities	(35,754)		(16,482)
Total net deferred tax liabilities	$	76,910	$	(697)

As of December 31, 2024, the decrease in our valuation allowance of $62.4 million is comprised of decrease in our federal and state valuation allowance of $31.1 million and $31.3 million respectively. In evaluating the need for a valuation allowance at each reporting period, we consider the weighting of all available positive and negative evidence, which includes, among other things, the nature, frequency and severity of current and cumulative taxable income or losses, future projections of profitability, timing of the future reversal of existing temporary differences, and the duration of statutory carryforward periods. In assessing all available evidence, we determined that there was sufficient positive evidence to overcome the negative evidence, including our past and current financial results, growth demonstrated in our top-line performance, as well as projected profitability. Accordingly, we determined it is more likely than not that the deferred tax assets will be realized and we released our valuation allowance at December 31, 2024.

As of December 31, 2024, we had federal and state net operating loss carryforwards $14.4 million and $85.1 million, respectively. The federal net operating loss carryovers do not expire and state net operating losses will begin to expire in 2025. As of December 31, 2024, we also had federal and state research and development credit carryforwards of $0.9 million and $31.4 million, respectively. The federal credit carryforwards will begin to expire in 2044, while the state credit carryforwards

apply indefinitely. Utilization of our net operating loss and credit carryforwards may be subject to annual limitation due to the ownership change limitations provided by the Internal Revenue Code and similar state provisions.

The change in the valuation allowance are as follows (in thousands):


	Year Ended December 31,
	2024		2023		2022
Valuation allowance, at beginning of year	$	62,380	$	43,776	$	17,217
Increase in valuation allowance	—		18,604		26,559
Decrease in valuation allowance	(62,380)		—		—
Valuation allowance, at end of year	$	—	$	62,380	$	43,776

The following is a reconciliation of the total amounts of reserves for unrecognized tax benefits from uncertain tax positions (in thousands):


	Year Ended December 31,
	2024		2023		2022
Unrecognized tax benefit beginning of year	$	12,315	$	9,455	$	7,816
Increases-tax positions in prior year	1,203		—		—
Increases-tax positions in current year	3,732		2,860		1,639
Statute of limitation expiration	$	(2,315)	$	—	$	—
Unrecognized tax benefit end of year	$	14,935	$	12,315	$	9,455

As of December 31, 2024, we recorded gross uncertain tax benefits of $14.9 million a majority of which would impact our effective tax rate, if recognized. We accrued interest and penalties related to our uncertain income tax positions in our income tax expense and accrued no interest and penalties for the year ended December 31, 2024 and 2023. We do not anticipate that the amount of unrecognized tax benefits will significantly increase or decrease within the next twelve months.

We file income tax returns in the U.S. federal jurisdiction and various state and local jurisdictions. While the applicable statute of limitations are generally open for three to four years for the jurisdictions we file in, we remain subject to income tax examinations for years ended after December 31, 2019 for federal taxes and all years for most state jurisdictions due to the usage of carryforward attributes, such as net operating losses and research and development credits. As of December 31, 2024, we have not been notified for audit by the Internal Revenue Service or any significant state jurisdiction.

- Definition

The entire disclosure for income tax.

+ References

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-Topic 740
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+ Details

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 204,068	$ 2,702	$ (68,119)
Other comprehensive income (loss):
Changes in unrealized gains (losses) on investment securities, net of tax	74	1,783	(1,490)
Comprehensive income (loss)	$ 204,142	$ 4,485	$ (69,609)

- 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

+ Details

Nature of Business	12 Months Ended
Nature of Business	Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business	Nature of Business AppFolio, Inc. ("we," "us" or "our") is a technology leader powering the future of the real estate industry. We provide a cloud-based platform on which our customers operate their businesses. Our services enable our customers to connect communities, increase operational efficiency, deliver exceptional customer experiences, and improve financial and operational performance.

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Schedule of Effective Income Tax Rate Reconciliation

Set forth below is a reconciliation of the components that caused our (benefit from) provision for income taxes to differ from amounts computed by applying the United States federal statutory rate:


	Year Ended December 31,
	2024		2023		2022
U.S. federal statutory income tax rate	21	%	21	%	21	%
State and local income taxes, net of federal benefit	(2)		(44)		9
Change in valuation allowance	(37)		215		(37)
Stock-based compensation expense	(13)		(108)		7
Federal research and development tax credits	(10)		(93)		5
Non-deductible officers' compensation	5		79		(6)
Other permanent differences	—		(4)		(1)
(Benefit from) provision for income taxes	(36)	%	66	%	(2)	%

Schedule of (Benefit From) Provision for Income Tax

The (benefit from) provision for income tax consists of the following (in thousands):


	Year Ended December 31,
	2024		2023		2022
Current
Federal	$	26,452	$	3,485	$	1,313
State and local	6,280		2,299		686
Foreign	30		—		—
Total current	32,762		5,784		1,999
Deferred
Federal	(46,578)		(477)		(854)
State and local	(39,930)		(12)		257
Total deferred	(86,508)		(489)		(597)
Total (benefit from) provision for income taxes	$	(53,746)	$	5,295	$	1,402

Schedule of Components of Deferred Tax Assets (Liabilities)

The components of deferred tax assets (liabilities) were as follows (in thousands):


	December 31,
	2024		2023
Deferred income tax assets:
Net operating loss carryforwards	$	9,201	$	6,502
Research and development tax credits	24,326		19,513
Capitalized research and software costs	66,090		33,958
Stock-based compensation	413		2,894
Lease liability	11,139		11,914
Other	1,495		3,384
Total deferred tax assets	112,664		78,165
Valuation allowance	—		(62,380)
Deferred tax assets, net of valuation allowance	$	112,664	$	15,785
Deferred tax liabilities:
Property and equipment	$	(3,351)	$	(4,189)
Intangible assets	(15,387)		(2,921)
Capitalized commissions	(4,463)		(4,237)
State taxes	(7,749)		—
Lease asset	(4,695)		(5,135)
Other	(109)		—
Total deferred tax liabilities	(35,754)		(16,482)
Total net deferred tax liabilities	$	76,910	$	(697)

Schedule of Change in the Valuation Allowance

The change in the valuation allowance are as follows (in thousands):


	Year Ended December 31,
	2024		2023		2022
Valuation allowance, at beginning of year	$	62,380	$	43,776	$	17,217
Increase in valuation allowance	—		18,604		26,559
Decrease in valuation allowance	(62,380)		—		—
Valuation allowance, at end of year	$	—	$	62,380	$	43,776

Schedule of Unrecognized Tax Benefits from Uncertain Tax Positions

The following is a reconciliation of the total amounts of reserves for unrecognized tax benefits from uncertain tax positions (in thousands):


	Year Ended December 31,
	2024		2023		2022
Unrecognized tax benefit beginning of year	$	12,315	$	9,455	$	7,816
Increases-tax positions in prior year	1,203		—		—
Increases-tax positions in current year	3,732		2,860		1,639
Statute of limitation expiration	$	(2,315)	$	—	$	—
Unrecognized tax benefit end of year	$	14,935	$	12,315	$	9,455

Property and Equipment, net - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Depreciation expense on property and equipment	$ 5.2	$ 7.3	$ 5.1
Impairment of leased office property and equipment			$ 4.4

Retirement Plans (Details) - USD ($) $ in Millions	12 Months Ended
Retirement Plans (Details) - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Retirement Benefits [Abstract]
Cash contributions to the plan	$ 7.4	$ 7.3	$ 5.9

Investment Securities and Fair Value Measurements - Schedule of Sales and Maturities of Investment Securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Debt Securities, Available-for-sale [Line Items]
Gross Realized Gains	$ 4	$ 3
Gross Realized Losses	(1)	0
Gross Proceeds from Sales	9,984	1,013	$ 994
Gross Proceeds from Maturities	240,035	152,382	$ 87,883
U.S. government and agency securities
Debt Securities, Available-for-sale [Line Items]
Gross Realized Gains	4	0
Gross Realized Losses	(1)	0
Gross Proceeds from Sales	9,984	0
Gross Proceeds from Maturities	$ 240,035	135,885
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
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

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

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
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-Subparagraph (aa)
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-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
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-Subparagraph (aaa)
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
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-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Subparagraph (c)
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-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
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-Name Accounting Standards Codification
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-Subparagraph (d)
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 10
-Name Accounting Standards Codification
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-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
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-Name Accounting Standards Codification
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-Paragraph 3
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-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
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-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

+ Details

Retirement Plans	12 Months Ended
Retirement Plans	Dec. 31, 2024
Retirement Benefits [Abstract]
Retirement Plans	Retirement PlansWe have a 401(k) retirement and savings plan made available to all employees. We may, at our discretion, make matching contributions to the 401(k) plan. Cash contributions to the plan were $7.4 million, $7.3 million, and $5.9 million for the years ended December 31, 2024, 2023 and 2022, respectively.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 70
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480794/715-70-50-1

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 715
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-Name Accounting Standards Codification
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-Paragraph 17
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480482/715-20-55-17

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
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-Name Accounting Standards Codification
-Section S99
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480126/715-20-S99-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 60
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480266/715-60-50-3

+ Details

Summary of Significant Accounting Policies - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive securities (in shares)	2	146	1,684
Unvested Restricted Stock Awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive securities (in shares)	0	6	6
Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive securities (in shares)	0	120	516
Restricted Stock Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive securities (in shares)	2	20	1,162

Stock-Based Compensation

12 Months Ended

Dec. 31, 2024

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

We currently have two stock incentive plans: the 2015 Stock Incentive Plan (the "2015 Plan") and, the 2025 Omnibus Incentive Plan (the "2025 Plan").

At our annual meeting of stockholders held on June 14, 2024 (the “2024 Annual Meeting”), our stockholders approved the 2025 Plan.

We did not grant any awards under the 2025 Plan in 2024. On January 1, 2025, the 2025 Plan superseded and replaced the 2015 Plan and no further awards will be granted under the 2015 Plan, but the 2015 Plan will continue to govern outstanding awards granted under the 2015 Plan.

Under the 2015 Plan, 2,000,000 shares of our Class A common stock were initially reserved and available for grant and issuance. On January 1 of each subsequent calendar year during the term of the 2015 Plan, the number of shares available for grant and issuance under the 2015 Plan increased by the lesser of (i) the number of shares of our Class A common stock subject to awards granted under the 2015 Plan during the preceding calendar year and (ii) such lesser number of shares of our Class A common stock determined by our Board of Directors. The number of shares of our Class A common stock is also subject to adjustment in the event of a recapitalization, stock split, reclassification, stock dividend or other change in our capitalization. The 2015 Plan authorized the award of stock options, stock appreciation rights, restricted stock, restricted stock units ("RSUs"), performance awards (including performance stock units ("PSUs")) and stock bonuses to our employees, directors, consultants and independent contractors, subject to certain exceptions. We granted RSUs and PSUs during 2024 pursuant to the 2015 Plan.

RSUs and PSUs represent the right on the part of the holder to receive shares of our Class A common stock at a specified date in the future and/or upon the achievement of performance conditions at the discretion of our compensation committee, subject to forfeiture of that right due to termination of employment.

Our 2025 Employee Stock Purchase Plan (the “ESPP”) authorizes the issuance of shares of our Class A common stock pursuant to purchase rights granted to our employees. The purchase price for shares purchased under the 2025 ESPP with respect to any offering period is an amount equal to 85% of the fair market value of a share of our Class A Common Stock on the applicable purchase date (i.e., the last trading day of the applicable offering period). Offering periods are six months long

and begin on February 16 and August 16 of each year. The first offering period under the ESPP will begin on Monday, February 17, 2025. 1,250,000 shares of Class A Common Stock are authorized for issuance under the ESPP, subject to adjustment in accordance with the terms of the ESPP. In addition, commencing on January 31, 2026 and on each January 31st thereafter during the term of the ESPP, the number of shares of Class A Common Stock authorized for issuance under the ESPP will be increased by the lesser of (i) the number of shares of Class A Common Stock issued or transferred pursuant to rights granted under the ESPP during the preceding calendar year, (ii) such lesser number of shares of Class A Common Stock as determined by our compensation committee, or (iii) 1,250,000 shares of Class A Common Stock.

Stock Options

A summary of activity in connection with our stock options for the year ended December 31, 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 granted	—	—
Options exercised	(251)	15.62
Options cancelled/forfeited	(1)	3.28
Options outstanding as of December 31, 2024	129	$	121.50	7.6

At December 31, 2024:
Options vested and expected to vest	129	$	121.50	7.6
Options exercisable	9	$	14.75	0.6

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

During the year ended December 31, 2023, we granted our Chief Executive Officer options to purchase 120,000 shares of our Class A common stock. These stock options vest based on service conditions with one-third vesting at the end of each of the years ending December 31, 2025, 2026 and 2027 (assuming continued employment through the applicable vesting date). No stock options were granted during the years ended December 31, 2024 or 2022.




Weighted average grant-date fair value per share	$	67.23
Weighted average Black-Scholes model assumptions:
Risk-free interest rate	4.06		%
Expected term (in years)	6.92
Expected volatility	44		%
Expected dividend yield	—

The total intrinsic value of options exercised in 2024, 2023 and 2022 was $52.2 million, $36.4 million, and $31.1 million, respectively. This intrinsic value represents the difference between the fair value of our Class A common stock on the date of exercise and the exercise price of each option. Based on the fair value of our Class A common stock as of December 31, 2024, the total intrinsic value of all outstanding options, exercisable options, and options vested and expected to vest was $16.2 million.

Restricted Stock Units

A summary of activity in connection with our RSUs for the year ended December 31, 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	376	214.99
Vested	(449)	129.57
Forfeited	(85)	137.95
Unvested as of December 31, 2024	785	$	159.98

Unvested RSUs as of December 31, 2024 were composed of 0.7 million RSUs with only service conditions and 0.1 million 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 December 31, 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 applicable 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 $59.2 million, $51.0 million and $43.3 million for the years ended December 31, 2024, 2023 and 2022, respectively. As of December 31, 2024, the total estimated remaining stock-based compensation expense for the aforementioned RSUs and PSUs was $96.2 million, which is expected to be recognized over a weighted average period of 2.1 years. The total fair value of RSUs and PSUs vested during the years ended December 31, 2024, 2023 and 2022 was approximately $111.8 million, $82.2 million and $27.5 million, respectively.

Stock-Based Compensation - Schedule of Restricted Stock Units Activity (Details) - Restricted Stock Units shares in Thousands	12 Months Ended
	Dec. 31, 2024 $ / shares shares
Number of Shares
Unvested, beginning balance (in shares) \| shares	943
Granted (in shares) \| shares	376
Vested (in shares) \| shares	(449)
Forfeited (in shares) \| shares	(85)
Unvested, ending balance (in shares) \| shares	785
Weighted Average Grant Date Fair Value per Share
Unvested, beginning balance (in dollars per share) \| $ / shares	$ 121.61
Granted (in dollars per share) \| $ / shares	214.99
Vested (in dollars per share) \| $ / shares	129.57
Forfeited (in dollars per share) \| $ / shares	137.95
Unvested, ending balance (in dollars per share) \| $ / shares	$ 159.98

Other Current Liabilities

12 Months Ended

Dec. 31, 2024

Other Liabilities Disclosure [Abstract]

Other Current Liabilities

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


	December 31,
	2024		2023
Unearned premium liabilities	$	5,455	$	2,605
Insurance reserves	3,908		4,174
Operating lease liabilities-current	4,273		3,626
Others	2,451		930
Total other current liabilities	$	16,087	$	11,335

Unearned premium liabilities are the refundable portion of commissions received in connection with the sale of renters insurance policies to residents through AppFolio Insurance Services, Inc., our wholly owned subsidiary. In the event a resident cancels their renters insurance policy prior to the end of such policy, we may be required to refund a pro rata portion of the commission paid on such policy.

For additional information for insurance reserves and operating lease liabilities, refer to Note 12, Commitments and Contingencies and Note 11, Leases, respectively.

Property and Equipment, net

12 Months Ended

Dec. 31, 2024

Property, Plant and Equipment [Abstract]

Property and Equipment, net

Property and equipment, net consists of the following (in thousands):


	December 31,
	2024		2023
Computer equipment	$	2,796	$	4,438
Furniture and fixtures	5,292		5,521
Office equipment	3,729		3,761
Leasehold improvements	28,787		24,208
Construction in process	357		5,499
Gross property and equipment	40,961		43,427
Less: Accumulated depreciation	(16,478)		(15,065)
Total property and equipment, net	$	24,483	$	28,362

Depreciation expense for property and equipment totaled $5.2 million, $7.3 million, and $5.1 million for the years ended December 31, 2024, 2023 and 2022, respectively. During the year ended December 31, 2022, we recorded an impairment of $4.4 million related to property and equipment associated with our leased office spaces. For additional information, see Note 11, Leases.

Investment Securities and Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2024

Fair Value Disclosures [Abstract]

Schedule of Investment Securities Available-for-Sale

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


	December 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value


U.S. government and agency securities	$	235,509	$	261	$	(25)	$	235,745
Total available-for-sale investment securities	$	235,509	$	261	$	(25)	$	235,745


	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

Schedule of Fair Values of Available-for-Sale Investment Securities, by Remaining Contractual Maturity

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


	December 31, 2024				December 31, 2023
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in one year or less	$	235,509	$	235,745	$	162,062	$	162,196

Total available-for-sale investment securities	$	235,509	$	235,745	$	162,062	$	162,196

Schedule of Sales and Maturities of Investment Securities

During the years ended December 31, 2024 and 2023, we had sales and maturities (which include calls) of investment securities, as follows (in thousands):


	Year Ended December 31, 2024
	Gross Realized Gains		Gross Realized Losses		Gross Proceeds from Sales		Gross Proceeds from Maturities
U.S. government and agency securities	4		(1)		9,984		240,035
	$	4	$	(1)	$	9,984	$	240,035


	Year Ended December 31, 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	—		—		—		135,885
	$	3	$	—	$	1,013	$	152,382

Schedule of Financial Assets Measured at Fair Value on a Recurring Basis

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


	December 31, 2024
	Level 1		Level 2		Total Fair Value
Cash equivalents:
Money market funds	$	25,167	$	—	$	25,167

Available-for-sale investment securities:



U.S. government and agency securities	—		235,745		235,745
Total	$	25,167	$	235,745	$	260,912


	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

Schedule of Financial Liabilities Measured at Fair Value on a Recurring Basis

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


	December 31, 2024
	Level 1		Level 2		Total Fair Value
Cash equivalents:
Money market funds	$	25,167	$	—	$	25,167

Available-for-sale investment securities:



U.S. government and agency securities	—		235,745		235,745
Total	$	25,167	$	235,745	$	260,912


	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

12 Months Ended

Dec. 31, 2024

Restructuring and Related Activities [Abstract]

Workforce Reduction

During the year ended December 31, 2023, we implemented a plan to reduce our workforce by 149 employees in order to scale our business more efficiently. Impacted employees were notified in August 2023. There were no workforce reductions during the years ended December 31, 2024 and 2022.

The following table presents the total severance and related personnel costs by function, for the year ended December 31, 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 year ended December 31, 2023.

The following is a summary of changes in the accrued severance and related personnel cost, within Accrued Employee Expenses on the 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	(9,425)
Balance as of December 31, 2023	$	853
Cash Payments	(853)
Balance as of December 31, 2024	$	—

Workforce Reduction (Tables)

12 Months Ended

Dec. 31, 2024

Restructuring and Related Activities [Abstract]

Schedule of Total Severance and Related Personnel Costs by Function

The following table presents the total severance and related personnel costs by function, for the year ended December 31, 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 year ended December 31, 2023.

Schedule of Changes in the Accrued Severance and Related Personnel Cost

The following is a summary of changes in the accrued severance and related personnel cost, within Accrued Employee Expenses on the 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	(9,425)
Balance as of December 31, 2023	$	853
Cash Payments	(853)
Balance as of December 31, 2024	$	—

Stockholders' Equity - Class A Common Stock and Class B Common Stock (Narrative) (Details)	12 Months Ended
	Dec. 31, 2024 vote shares
Common Class B to Common Class A
Class of Stock [Line Items]
Number of shares to be issued per share upon conversion (in shares) \| shares	1
Class A common stock
Class of Stock [Line Items]
Common stock, number of votes	1
Class B common stock
Class of Stock [Line Items]
Common stock, number of votes	10

- 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

Sales of Subsidiary Business	12 Months Ended
Sales of Subsidiary Business	Dec. 31, 2024
Discontinued Operations and Disposal Groups [Abstract]
Sales of Subsidiary Business	Sales of Subsidiary Business Sale of WegoWise In August 2022, we completed the sale of AppFolio Utility Management, Inc., dba WegoWise ("WegoWise"), a former wholly owned subsidiary of the Company that provided cloud-based utility analytics reporting software solutions to our customers. We sold WegoWise for $5.2 million (the “WegoWise Transaction”) and recognized a pre-tax gain on the sale of $4.2 million. Net assets divested are primarily comprised of intangible assets of $2.5 million and deferred revenue of $1.7 million. The gain on the sale is included within Other income, net in our Consolidated Statements of Operations.

Capitalized Software Development Costs, net

12 Months Ended

Dec. 31, 2024

Research and Development [Abstract]

Capitalized Software Development Costs, net

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


	December 31,
	2024		2023
Capitalized software development costs, gross	$	117,480	$	126,606
Less: Accumulated amortization	(102,051)		(105,044)
Capitalized software development costs, net	$	15,429	$	21,562

Capitalized software development costs were $6.1 million, $5.5 million and $17.7 million for the years ended December 31, 2024, 2023 and 2022, respectively. Amortization expense with respect to software development costs totaled $12.2 million, $19.2 million and $23.6 million for the years ended December 31, 2024, 2023 and 2022, respectively. During the years ended December 31, 2024 and 2023, we disposed of $15.2 million and $8.2 million, respectively, of fully amortized capitalized software development costs.

Future amortization expense with respect to capitalized software development costs is estimated as follows (in thousands):


Years Ending December 31,
2025	$	8,077
2026	4,459
2027	2,893

Total amortization expense	$	15,429

Pay vs Performance Disclosure - USD ($) $ in Thousands	12 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Pay vs Performance Disclosure
Net (loss) income	$ 204,068	$ 2,702	$ (68,119)

- Definition

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

+ References

+ Details

Goodwill and Intangible Assets, Net - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 53,852	$ 5,052
Accumulated Amortization	(4,795)	(2,695)
Net Carrying Value	$ 49,057	$ 2,357
Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted Average Useful Life in Years	5 years 4 months 24 days	9 years 8 months 12 days
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 39,000
Accumulated Amortization	(1,300)
Net Carrying Value	$ 37,700
Customer relationships \| Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted Average Useful Life in Years	5 years
Developed technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 9,800
Accumulated Amortization	(327)
Net Carrying Value	$ 9,473
Developed technology \| Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted Average Useful Life in Years	5 years
Database
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 4,710	$ 4,710
Accumulated Amortization	(2,826)	(2,355)
Net Carrying Value	$ 1,884	$ 2,355
Database \| Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted Average Useful Life in Years	10 years	10 years
Domain names
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 90	$ 90
Accumulated Amortization	(90)	(88)
Net Carrying Value	$ 0	$ 2
Domain names \| Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted Average Useful Life in Years	5 years	5 years
Patents
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 252	$ 252
Accumulated Amortization	(252)	(252)
Net Carrying Value	$ 0	$ 0
Patents \| Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted Average Useful Life in Years	5 years	5 years

Business Combination (Tables)

12 Months Ended

Dec. 31, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Schedule of Purchase Price Allocation


	Estimated Fair Value		Estimated Useful Life (in years)
Cash and cash equivalents	272
Identified intangible assets:
Customer relationships	39,000		5
Developed technology	9,800		5
Goodwill	40,350
Deferred tax liabilities	(8,874)
Other net tangible liabilities	(2,047)
Net assets acquired	$	78,501

Goodwill and Intangible Assets, Net - Scheduled of Future Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
2025	$ 10,231
2026	10,231
2027	10,231
2028	10,231
2029	8,133
Net Carrying Value	$ 49,057	$ 2,357

Stock-Based Compensation - Schedule of Stock Option Activity (Details) - $ / shares	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Number of Shares
Options outstanding, beginning balance (in shares)	381,000
Options granted (in shares)	0		0
Options exercised (in shares)	(251,000)
Options cancelled/forfeited (in shares)	(1,000)
Options outstanding, ending balance (in shares)	129,000	381,000
Options vested and expected to vest (in shares)	129,000
Options exercisable (in shares)	9,000
Weighted Average Exercise Price per Share
Options outstanding, beginning balance (in dollars per share)	$ 51.49
Options granted (in dollars per share)	0
Options exercised (in dollars per share)	15.62
Options cancelled/forfeited (in dollars per share)	3.28
Options outstanding, ending balance (in dollars per share)	121.50	$ 51.49
Options vested and expected to vest (in dollars per share)	121.50
Options exercisable (in dollars per share)	$ 14.75
Weighted Average Remaining Contractual Life in Years
Options outstanding (in years)	7 years 7 months 6 days	3 years 4 months 24 days
Options vested and expected to vest (in years)	7 years 7 months 6 days
Options exercisable (in years)	7 months 6 days

Revenue and Other Information (Tables)

12 Months Ended

Dec. 31, 2024

Revenue from Contract with Customer [Abstract]

Schedule of Product Information by Revenue Categories

The following table presents our revenue categories (in thousands):


	Year Ended December 31,
	2024		2023		2022
Core solutions	$	180,605	$	156,692	$	132,541
Value Added Services	605,011		454,098		327,636
Other	8,586		9,655		11,706
Total revenue	$	794,202	$	620,445	$	471,883

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2024
Audit Information [Abstract]
Auditor Firm ID	238
Auditor Name	PricewaterhouseCoopers LLP
Auditor Location	Los Angeles, California

Leases

12 Months Ended

Dec. 31, 2024

Leases [Abstract]

Leases

Operating leases for our corporate offices have remaining lease terms ranging from 2.6 years to 8.1 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 ROU 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 Consolidated Statements of Operations were as follows (in thousands):


	Year Ended December 31,
	2024		2023		2022
Operating lease cost	$	4,188	$	4,362	$	5,403
Variable lease cost	1,479		1,737		1,058
Total lease cost	$	5,667	$	6,099	$	6,461

Lease-related assets and liabilities were as follows (in thousands, except years and %):


	December 31,
	2024			2023
Assets

Operating lease right-of-use assets	17,472			19,285

Liabilities
Other current liabilities	$	4,273		$	3,626
Operating lease liabilities	37,476			41,114
Total lease liabilities	$	41,749		$	44,740

Weighted-average remaining lease term (years)	7.4			8.3
Weighted-average discount rate	5.1		%	5.1		%

During the year ended December 31, 2022, we decided to exit and make available for sublease certain of our leased office spaces. As a result, we reassessed our asset groupings and evaluated the recoverability of our ROU and other lease related assets, and determined that the carrying value of the respective asset groups was not fully recoverable. We utilized discounted cash flow models to estimate the fair value of the asset groups taking into consideration the time period it will take to obtain a sublessee, the applicable discount rates and the anticipated sublease income and calculated the corresponding impairment loss. We used prices and other relevant information generated primarily by recent market transactions involving similar or comparable assets, as well as our historical experience in real estate transactions. When available, we use valuation inputs from independent valuation experts, such as real estate appraisers and brokers, to corroborate our estimates of fair value. We recorded a net impairment of $22.0 million consisting of $17.6 million related to ROU assets and $4.4 million related to property and equipment associated with our leased office spaces. These amounts were recorded within General and administrative in our Consolidated Statements of Operations.

In January 2023, we entered into an amendment to the lease agreement for our San Diego facility (the "San Diego Lease"). We remeasured the lease liability and recorded a reduction to the lease liability and ROU asset using the discount rate at the modification date, which resulted in a gain of $2.4 million in the 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 ROU assets was recorded for the year ended December 31, 2023.

Future minimum lease payments under non-cancellable leases as of December 31, 2024 were as follows (in thousands):


Years ending December 31,
2025	$	6,251
2026	6,430
2027	6,583
2028	6,717
2029	6,910
Thereafter	17,463
Total future minimum lease payments	50,354
Less: imputed interest	(8,605)
Total	$	41,749

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Current assets
Cash and cash equivalents	$ 42,504	$ 49,509
Investment securities—current	235,745	162,196
Accounts receivable, net	24,346	20,709
Prepaid expenses and other current assets	32,807	39,943
Total current assets	335,402	272,357
Property and equipment, net	24,483	28,362
Operating lease right-of-use assets	17,472	19,285
Capitalized software development costs, net	15,429	21,562
Goodwill	96,410	56,060
Intangible assets, net	49,057	2,357
Deferred income taxes	76,910	0
Other long-term assets	11,515	8,906
Total assets	626,678	408,889
Current liabilities
Accounts payable	2,378	1,141
Accrued employee expenses	30,157	35,567
Accrued expenses	14,658	21,723
Other current liabilities	16,087	11,335
Total current liabilities	63,280	69,766
Operating lease liabilities	37,476	41,114
Deferred tax liabilities	0	697
Other liabilities	6,632	0
Total liabilities	107,388	111,577
Commitments and contingencies (Note 12)
Stockholders’ equity:
Preferred stock, $0.0001 par value, 25,000 shares authorized and no shares issued and outstanding as of December 31, 2024 and December 31, 2023	0	0
Additional paid-in capital	254,821	236,985
Accumulated other comprehensive Income (loss)	173	99
Treasury stock, at cost, 419 shares of Class A common stock as of December 31, 2024 and December 31, 2023	(25,756)	(25,756)
Retained earnings	290,048	85,980
Total stockholders’ equity	519,290	297,312
Total liabilities and stockholders’ equity	626,678	408,889
Class A common stock
Stockholders’ equity:
Common stock	2	2
Class B common stock
Stockholders’ equity:
Common stock	$ 2	$ 2

Leases - Narrative (Details) - USD ($)	1 Months Ended		12 Months Ended
Leases - Narrative (Details) - USD ($)	Jun. 30, 2023	Jan. 31, 2023	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Jul. 31, 2023
Lessee, Lease, Description [Line Items]
Lease renewal term			10 years
Impairment, long-lived asset, held-for-use			$ 0	$ 0	$ 22,000,000
Impairment related to ROU assets					17,600,000
Impairment of leased office property and equipment					4,400,000
Gain on lease modification	$ 1,900,000	$ 2,400,000	0	4,281,000	0
Cash paid for amounts included in the measurement of lease liabilities included in operating cash flows	$ 2,900,000		5,828,000	4,732,000	$ 3,933,000
Operating lease, liability, to be paid			$ 50,354,000
Minimum
Lessee, Lease, Description [Line Items]
Lease term			2 years 7 months 6 days
Maximum
Lessee, Lease, Description [Line Items]
Lease term			8 years 1 month 6 days
Santa Barbara Office Lease
Lessee, Lease, Description [Line Items]
Operating lease, liability, to be paid						$ 6,100,000
Operating lease, payment to be received						$ 6,100,000
Operating lease, impairment loss				$ 0

Investment Securities and Fair Value Measurements - Schedule of Investment Securities Available-for-Sale (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 235,509	$ 162,062
Gross Unrealized Gains	261	193
Gross Unrealized Losses	(25)	(59)
Estimated Fair Value	235,745	162,196
U.S. government and agency securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	235,509	162,062
Gross Unrealized Gains	261	193
Gross Unrealized Losses	(25)	(59)
Estimated Fair Value	$ 235,745	$ 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

Capitalized Software Development Costs, net - Schedule of Capitalized Software Development Costs, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Research and Development [Abstract]
Capitalized software development costs, gross	$ 117,480	$ 126,606
Less: Accumulated amortization	(102,051)	(105,044)
Capitalized software development costs, net	$ 15,429	$ 21,562

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Cash from operating activities
Net income (loss)	$ 204,068	$ 2,702	$ (68,119)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	17,790	26,500	30,820
Amortization of operating lease right-of-use assets	2,030	2,132	3,187
Impairment, net	0	0	22,022
Gain on lease modification	0	(4,281)	0
Deferred income taxes	(76,937)	(490)	(993)
Stock-based compensation, including as amortized	62,081	54,852	43,234
Gain on sale of business	0	0	(4,156)
Other	(8,220)	(3,108)	135
Changes in operating assets and liabilities:
Accounts receivable	(3,383)	(4,206)	(4,198)
Prepaid expenses and other assets	4,126	(13,493)	(7,281)
Accounts payable	1,559	(1,565)	1,176
Operating lease liabilities	(3,143)	(2,504)	(2,524)
Accrued expenses and other liabilities	(11,812)	3,744	12,062
Net cash provided by operating activities	188,159	60,283	25,365
Cash from investing activities
Purchases of available-for-sale investments	(317,173)	(195,740)	(79,279)
Proceeds from sales of available-for-sale investments	9,984	1,013	994
Proceeds from maturities of available-for-sale investments	240,035	152,382	87,883
Purchases of property and equipment	(2,016)	(9,041)	(6,540)
Capitalization of software development costs	(5,170)	(4,825)	(14,688)
Proceeds from sale of business, net of cash divested	0	0	5,124
Proceeds from equity-method investment	0	629	40
Cash paid in business acquisition, net of cash acquired	(77,421)	0	0
Net cash used in investing activities	(151,761)	(55,582)	(6,466)
Cash from financing activities
Proceeds from stock option exercises	3,924	2,595	4,474
Tax withholding for net share settlement	(47,327)	(28,556)	(10,637)
Net cash used in financing activities	(43,403)	(25,961)	(6,163)
Net (decrease) increase in cash, cash equivalents and restricted cash	(7,005)	(21,260)	12,736
Beginning of period	49,759	71,019	58,283
End of period	42,754	49,759	71,019
Cash, cash equivalents and restricted cash
Cash and cash equivalents	42,504	49,509	70,769
Restricted cash included in prepaid expenses and other current assets	250	250	250
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows	42,754	49,759	71,019
Supplemental disclosure of cash flow information
Cash paid for income taxes	14,022	8,086	3,338
Cash paid for amounts included in the measurement of lease liabilities included in operating cash flows	$ 5,828	$ 4,732	$ 3,933

Property and Equipment, net (Tables)

12 Months Ended

Dec. 31, 2024

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment, Net

Property and equipment is stated at cost net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of assets as follows:


Asset Type						Depreciation Period
Computer equipment						3 years
Furniture and fixtures						7 years
Office equipment						3 to 5 years
Leasehold improvements						Shorter of remaining life of lease or asset life

Property and equipment, net consists of the following (in thousands):


	December 31,
	2024		2023
Computer equipment	$	2,796	$	4,438
Furniture and fixtures	5,292		5,521
Office equipment	3,729		3,761
Leasehold improvements	28,787		24,208
Construction in process	357		5,499
Gross property and equipment	40,961		43,427
Less: Accumulated depreciation	(16,478)		(15,065)
Total property and equipment, net	$	24,483	$	28,362

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2024

Accounting Policies [Abstract]

Basis of Presentation

The accompanying Consolidated Financial Statements were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

Reclassification

Principles of Consolidation

Use of Estimates

Segment Information

Concentrations of Credit Risk

Concentrations of credit risk with respect to accounts receivable and revenue are limited due to a large, diverse customer base.

Business Combinations

Acquisition-related transaction costs are not included as a component of consideration transferred, but are accounted for as an operating expense in the period in which the costs are incurred.

Fair Value Measurements

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, in the marketplace.

Level 3 - Unobservable inputs that are supported by little or no market activity.

Cash, Cash Equivalents and Restricted Cash

Investment Securities

Accounts Receivable

Property and Equipment

Property and equipment is stated at cost net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of assets as follows:


Asset Type						Depreciation Period
Computer equipment						3 years
Furniture and fixtures						7 years
Office equipment						3 to 5 years
Leasehold improvements						Shorter of remaining life of lease or asset life

Leases

Capitalized Software Development Costs

Goodwill and Intangible Assets, Net

Impairment of Long-Lived Assets

Revenue Recognition and Deferred Costs

Revenue Recognition

Core Solutions

Value Added Services

Other Revenue

Deferred Costs

Cost of Revenue (Exclusive of Depreciation and Amortization)

Sales and Marketing, and General and Administrative

Sales and Marketing

General and Administrative

Research and Product Development

Depreciation and Amortization

Stock-Based Compensation

Income Taxes

Net Income (Loss) per Common Share

Recent Accounting Pronouncements Adopted and Not Yet Adopted

Recent Accounting Pronouncements Adopted

Recent Accounting Pronouncements Not Yet Adopted

Stock-Based Compensation - Schedule of Information Related to Stock Options Granted (Details) - Options	12 Months Ended
	Dec. 31, 2023 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant-date fair value per share (in dollars per share)	$ 67.23
Risk-free interest rate	4.06%
Expected term (in years)	6 years 11 months 1 day
Expected volatility	44.00%
Expected dividend yield	0.00%

- 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

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Total stock-based compensation expense	$ 60,327	$ 52,364	$ 40,935
Cost of revenue (exclusive of depreciation and amortization)
Total stock-based compensation expense	4,522	3,703	2,640
Sales and marketing
Total stock-based compensation expense	8,030	5,983	8,681
Research and product development
Total stock-based compensation expense	25,414	20,974	16,030
General and administrative
Total stock-based compensation expense	$ 22,361	$ 21,704	$ 13,584

Business Combination - Schedule of Purchase Price Allocation (Details) - USD ($) $ in Thousands	Oct. 22, 2024	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Goodwill		$ 96,410	$ 56,060	$ 56,060
Move EZ, Inc., d/b/a LiveEasy
Business Acquisition [Line Items]
Cash and cash equivalents	$ 272
Goodwill	40,350
Deferred tax liabilities	(8,874)
Other net tangible liabilities	(2,047)
Net assets acquired	78,501
Move EZ, Inc., d/b/a LiveEasy \| Customer relationships
Business Acquisition [Line Items]
Identified intangible assets	$ 39,000
Estimated Useful Life (in years)	5 years
Move EZ, Inc., d/b/a LiveEasy \| Developed technology
Business Acquisition [Line Items]
Identified intangible assets	$ 9,800
Estimated Useful Life (in years)	5 years

Capitalized Software Development Costs, net - Schedule of Future Amortization Expense of Capitalized Software Development Costs (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Research and Development [Abstract]
2025	$ 8,077
2026	4,459
2027	2,893
Capitalized software development costs, net	$ 15,429	$ 21,562

Stock-Based Compensation - Restricted Stock Units (Narrative) (Details) - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 60,327	$ 52,364	$ 40,935
RSUs and PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	59,200	51,000	43,300
Remaining stock-based compensation expense for unvested shares, not yet recognized	$ 96,200
Stock-based compensation expense, weighted average recognition period (in years)	2 years 1 month 6 days
Fair value of shares vested	$ 111,800	$ 82,200	$ 27,500
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested restricted stock units (in shares)	785	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)	700
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
PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Percent of award target performance metric	100.00%
PSUs \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of award target performance metric	0.00%
PSUs \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of award target performance metric	170.00%

Income Taxes - Schedule of (Benefit From) Provision for Income Tax (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Current
Federal	$ 26,452	$ 3,485	$ 1,313
State and local	6,280	2,299	686
Foreign	30	0	0
Total current	32,762	5,784	1,999
Deferred
Federal	(46,578)	(477)	(854)
State and local	(39,930)	(12)	257
Total deferred	(86,508)	(489)	(597)
Total (benefit from) provision for income taxes	$ (53,746)	$ 5,295	$ 1,402

Stock-Based Compensation - Stock Options (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (in shares)	0		0
Intrinsic value of options exercised	$ 52.2	$ 36.4	$ 31.1
Intrinsic value of options outstanding	$ 16.2
Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of shares to vest		33.33%
Common Class A
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (in shares)		120,000

- 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

Workforce Reduction - Narrative (Details) - position	12 Months Ended
Workforce Reduction - Narrative (Details) - position	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Restructuring and Related Activities [Abstract]
Restructuring and related cost, number of positions eliminated	0	149	0
Restructuring and related cost, location not disclosed		severance and related personnel costs

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2024

Accounting Policies [Abstract]

Schedule of Estimated Useful Lives of Property and Equipment

Property and equipment is stated at cost net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of assets as follows:


Asset Type						Depreciation Period
Computer equipment						3 years
Furniture and fixtures						7 years
Office equipment						3 to 5 years
Leasehold improvements						Shorter of remaining life of lease or asset life

Property and equipment, net consists of the following (in thousands):


	December 31,
	2024		2023
Computer equipment	$	2,796	$	4,438
Furniture and fixtures	5,292		5,521
Office equipment	3,729		3,761
Leasehold improvements	28,787		24,208
Construction in process	357		5,499
Gross property and equipment	40,961		43,427
Less: Accumulated depreciation	(16,478)		(15,065)
Total property and equipment, net	$	24,483	$	28,362

Schedule of Computation of Basic and Diluted Net Income (Loss) Per Common Share

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


	Year Ended December 31,
	2024		2023		2022
Basic net income (loss) per share:
Numerator
Net income (loss)	$	204,068	$	2,702	$	(68,119)
Less: undistributed earnings to participating securities	12		—		—
Net income (loss) attributable to common stockholders	$	204,056	$	2,702	$	(68,119)
Denominator
Weighted average common shares outstanding	36,254		35,636		35,015
Less: Weighted average unvested restricted shares subject to repurchase	2		7		5
Weighted average common shares outstanding; basic	36,252		35,629		35,010
Net income (loss) per common share; basic	$	5.63	$	0.08	$	(1.95)
Diluted net income (loss) per share:
Numerator
Net income (loss) attributable to common stockholders	$	204,056	$	2,702	$	(68,119)
Denominator
Weighted average common shares outstanding; basic	36,252		35,629		35,010
Add: Weighted average dilutive options outstanding	58		333		—
Add: Weighted average dilutive RSUs outstanding	472		455		—
Weighted average common shares outstanding; diluted	36,782		36,417		35,010
Net income (loss) per common share; diluted	$	5.55	$	0.07	$	(1.95)

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):


	Year Ended December 31,
	2024	2023	2022
Unvested Restricted Stock Awards	—	6	6
Options	—	120	516
Restricted Stock Units	2	20	1,162
Total potentially dilutive securities	2	146	1,684