0001433195-23-000053 | 10-Q | XBRL Viewer

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Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 103,925	$ 70,769
Investment securities—current	65,022	89,297
Accounts receivable, net	17,416	16,503
Prepaid expenses and other current assets	25,515	24,899
Total current assets	211,878	201,468
Investment securities—noncurrent	12,723	25,161
Property and equipment, net	25,789	26,110
Operating lease right-of-use assets	20,849	23,485
Capitalized software development costs, net	30,467	35,315
Goodwill	56,060	56,060
Intangible assets, net	4,214	4,833
Other long-term assets	8,720	8,785
Total assets	370,700	381,217
Current liabilities
Accounts payable	740	2,473
Accrued employee expenses	47,087	34,376
Accrued expenses	18,029	15,601
Other current liabilities	13,971	8,893
Total current liabilities	79,827	61,343
Operating lease liabilities	45,257	50,237
Other liabilities	5,047	4,091
Total liabilities	130,131	115,671
Commitments and contingencies (Note 8)
Stockholders’ equity:
Additional paid-in capital	219,074	209,704
Accumulated other comprehensive loss	(921)	(1,684)
Treasury stock	(25,756)	(25,756)
Retained earnings	48,168	83,278
Total stockholders’ equity	240,569	265,546
Total liabilities and stockholders’ equity	370,700	381,217
Class A common stock
Stockholders’ equity:
Common stock	2	2
Class B common stock
Stockholders’ equity:
Common stock	$ 2	$ 2

Summary of Significant Accounting Policies - Schedule of Net Income per Share (Details) - shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Accounting Policies [Abstract]
Weighted average common shares outstanding (in shares)	35,451,000	34,840,000
Less: Weighted average unvested restricted shares subject to repurchase (in shares)	8,000	4,000
Weighted average common shares outstanding; basic (in shares)	35,443,000	34,836,000
Weighted average common shares outstanding; diluted (in shares)	35,443,000	34,836,000

Capitalized Software Development Costs, net - Capitalized Computer Software Future Amortization Expense (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Years Ending December 31,
2023	$ 13,707
2024	11,598
2025	4,567
2026	595
Capitalized software development costs, net	$ 30,467	$ 35,315

Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Leases [Abstract]
Operating lease cost	$ 1,145	$ 1,447
Variable lease cost	573	123
Total lease cost	$ 1,718	$ 1,570

Leases - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Lessee, Lease, Description [Line Items]
Lease renewal term	10 years
Gain (loss) on modification of lease term	$ 2,366	$ 0
Minimum
Lessee, Lease, Description [Line Items]
Lease term	1 year
Maximum
Lessee, Lease, Description [Line Items]
Lease term	10 years

Cover Page - shares	3 Months Ended
Cover Page - shares	Mar. 31, 2023	Apr. 20, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-37468
Entity Registrant Name	AppFolio, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	26-0359894
Entity Address, Address Line One	70 Castilian Drive
Entity Address, City or Town	Santa Barbara,
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	93117
City Area Code	805
Local Phone Number	364-6093
Title of 12(b) Security	Class A common stock, $0.0001 par value
Trading Symbol	APPF
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001433195
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false
Class A common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		20,766,610
Class B common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		14,719,225

Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Total stock-based compensation expense	$ 13,903	$ 7,418
Cost of revenue (exclusive of depreciation and amortization)
Total stock-based compensation expense	768	358
Sales and marketing
Total stock-based compensation expense	2,417	1,460
Research and product development
Total stock-based compensation expense	5,439	2,806
General and administrative
Total stock-based compensation expense	$ 5,279	$ 2,794

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 9,961	$ (285)

- Definition

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

+ References + Details

Investment Securities and Fair Value Measurements - Schedule of Available-for-sale Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 79,139	$ 116,609
Gross Unrealized Gains	0	2
Gross Unrealized Losses	(1,394)	(2,153)
Available-for-sale investment securities:	77,745	114,458
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	9,631	17,497
Gross Unrealized Gains	0	2
Gross Unrealized Losses	(52)	(112)
Available-for-sale investment securities:	9,579	17,387
Agency securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	11,259	17,507
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(317)	(484)
Available-for-sale investment securities:	10,942	17,023
Treasury securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	58,249	81,605
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(1,025)	(1,557)
Available-for-sale investment securities:	$ 57,224	$ 80,048

Stock-Based Compensation - Restricted Stock Units Narrative (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 13,903	$ 7,418
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of targeted performance metric	0.00%
RSUs and PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 13,800	7,800
Stock-based compensation capitalized for software development	200	$ 500
Remaining stock-based compensation expense for unvested shares, not yet recognized	$ 152,700
Stock-based compensation expense, weighted average recognition period	2 years 10 months 24 days
Restricted Stock Units With Service Conditions
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment award, non-option equity instruments, nonvested (in shares)	1,400
Vesting period	4 years
Restricted Stock Units with Service and Performance Conditions
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment award, non-option equity instruments, outstanding (in shares)	200
PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Percent of targeted performance metric	100.00%
Measurement period	3 years
PSUs \| Tranche one
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment award, non-option equity instruments, outstanding (in shares)	100
PSUs \| Tranche two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment award, non-option equity instruments, outstanding (in shares)	100
PSUs \| Minimum \| Tranche one
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of targeted performance metric	0.00%
PSUs \| Minimum \| Tranche two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of targeted performance metric	100.00%
PSUs \| Minimum \| Tranche three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of cash bonus payments on initial targets, percent	0.00%
PSUs \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of targeted performance metric	100.00%
PSUs \| Maximum \| Tranche one
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of targeted performance metric	142.00%
PSUs \| Maximum \| Tranche two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of targeted performance metric	150.00%
PSUs \| Maximum \| Tranche three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of cash bonus payments on initial targets, percent	65.00%
Unvested RSAs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment award, non-option equity instruments, nonvested (in shares)	8		6
Vesting period	1 year
Remaining stock-based compensation expense for unvested shares, not yet recognized	$ 400
Stock-based compensation expense, weighted average recognition period	8 months 12 days

Intangible Assets, net - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2023	$ 1,857
2024	473
2025	471
2026	471
2027	471
Thereafter	471
Net Carrying Value	$ 4,214	$ 4,833

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Liability to Landlord Insurance We have a wholly owned subsidiary, Terra Mar Insurance Company, Inc., which was established in connection with reinsuring liability to landlord insurance policies offered to our customers by our third-party service provider. Each policy has a limit of $100 thousand per incident. 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 March 31, 2023 and December 31, 2022 was $3.4 million and $2.7 million, respectively, and is included in Other current liabilities on our Condensed Consolidated Balance Sheets. Included in Prepaid expenses and other current assets as of March 31, 2023 and December 31, 2022 are $2.8 million and $4.5 million, respectively, of deposits held with a third party related to requirements to maintain collateral for this insurance service. Legal Proceedings From time to time we may become involved in various legal proceedings, investigative inquiries, and other disputes arising from or related to matters incident to the ordinary course of our business activities. We are not currently a party to any matters, nor are we aware of any pending or threatened matters, that we believe would have a material adverse effect on our business, operating results, cash flows or financial condition should such proceedings be resolved unfavorably. Indemnification In the ordinary course of business, we may provide indemnification of varying scope and terms to customers, business partners, investors, directors, officers, and other parties with respect to certain matters, including, but not limited to, losses arising out of our breach of any applicable agreements, intellectual property infringement claims made by third parties, and other liabilities relating to or arising from our services or our acts or omissions. These indemnification provisions may survive termination of the underlying agreement and the maximum potential amount of future payments we could be required to make under these indemnification provisions may not be subject to maximum loss clauses and is indeterminable. We have not incurred any costs as a result of such indemnification obligations and have not recorded any liabilities related to such obligations in the Condensed Consolidated Financial Statements.

Accrued Employee Expenses (Tables)

3 Months Ended

Mar. 31, 2023

Schedule of Accrued Employee Expenses

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


	March 31, 2023		December 31, 2022
Accrued vacation	$	13,263	$	12,067
Accrued bonuses	5,525		13,806
Accrued severance	16,693		496
Accrued payroll and other	11,606		8,007


Total accrued employee expenses	$	47,087	$	34,376

Intangible Assets, net (Tables)

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets

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


	March 31, 2023
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Weighted Average Useful Life in Years
Customer relationships	$	1,670	$	(1,503)	$	167	5.0
Database	4,710		(2,002)		2,708		10.0
Technology	6,539		(6,539)		—		4.0
Trademarks and trade names	1,520		(1,288)		232		5.0
Partner relationships	680		(680)		—		3.0
Non-compete agreements	7,340		(6,239)		1,101		5.0
Domain names	90		(84)		6		5.0
Patents	252		(252)		—		5.0

Total intangible assets, net	$	22,801	$	(18,587)	$	4,214	5.8


	December 31, 2022
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Weighted Average Useful Life in Years
Customer relationships	$	1,670	$	(1,448)	$	222	5.0
Database	4,710		(1,884)		2,826		10.0
Technology	6,539		(6,539)		—		4.0
Trademarks and trade names	1,520		(1,211)		309		5.0
Partner relationships	680		(680)		—		3.0
Non-compete agreements	7,340		(5,872)		1,468		5.0
Domain names	90		(82)		8		5.0
Patents	252		(252)		—		5.0

Total intangible assets, net	$	22,801	$	(17,968)	$	4,833	4.7

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

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


Years Ending December 31,
2023	$	1,857
2024	473
2025	471
2026	471
2027	471
Thereafter	471
Total amortization expense	$	4,214

Accrued Employee Expenses - Additional Information (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Compensation Related Costs [Abstract]
Severance costs	$ 14.9

Revenue and Other Information - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Deferred revenue	$ 1,000		$ 900
Revenue recognized from deferred revenue	600	$ 1,300
Remaining performance obligation, amount	$ 20,000
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01
Disaggregation of Revenue [Line Items]
Remaining performance obligation, percentage	49.00%
Remaining performance obligation, expected timing of satisfaction, period	12 months

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesWe calculate our provision for (benefit from) income taxes on a quarterly basis by applying an estimated annual effective tax rate to income/loss from operations and by calculating the tax effect of discrete items recognized during the quarter. For the three months ended March 31, 2023, we recorded income tax expense of $10.0 million. The effective tax rate as compared to the U.S. federal statutory rate of 21% differs primarily due to the change in valuation allowance against deferred tax assets, non-deductible officers' compensation and state income taxes, partially offset by tax benefits from research and development tax credits. There were no material changes to our unrecognized tax benefits during the three months ended March 31, 2023.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Stock-Based Compensation

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock Options

A summary of activity in connection with our stock options for the three months ended March 31, 2023, 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, 2022	516	$	12.90	2.7
Options granted	120	129.74
Options exercised	(64)	13.05

Options outstanding as of March 31, 2023	572	$	37.38	3.3

During the three months ended March 31, 2023, we granted our Chief Executive Officer 120,000 stock options 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. No stock options were granted during the three months ended March 31, 2022.

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

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 three months ended March 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	—

As of March 31, 2023, the total estimated remaining stock-based compensation expense for the aforementioned stock options was $7.9 million, which is expected to be recognized over a weighted average period of 4.8 years.

Restricted Stock Units

A summary of activity in connection with our RSUs for the three months ended March 31, 2023, is as follows (number of shares in thousands):


	Number of Shares	Weighted Average Grant Date Fair Value per Share
Unvested as of December 31, 2022	1,162	$	116.88
Granted	610	122.08
Vested	(124)	116.45
Forfeited	(28)	112.95
Unvested as of March 31, 2023	1,620	$	118.94

Unvested RSUs as of March 31, 2023 were composed of 1.4 million RSUs with only service conditions and 0.2 million PSUs with both service conditions and performance conditions. RSUs granted with only service conditions generally vest over a four-year period. The number of PSUs granted, as included in the above table, assumes achievement of the performance metric at 100% of the performance target. Of the unvested PSUs as of March 31, 2023, 0.1 million are subject to vesting based on the achievement of pre-established performance metrics for the year ending December 31, 2023 and will vest over a three year period, assuming continued employment through each vesting date. The actual number of shares to be issued at the end of the performance period will range from 0% to 142% of the target number of shares depending on achievement relative to the performance metric over the applicable period. The remaining 0.1 million PSUs unvested as of March 31, 2023 are subject to vesting based on the achievement of pre-established performance metrics for three year measurement periods ending December 31, 2023, assuming continued employment throughout the performance period. The actual number of shares to be issued at the end of the performance period will range from 0% to 100% of the initial target awards. Achievement of the performance metric between 100% and 150% of the performance target will result in a performance-based cash bonus payment between 0% and 65% of the initial target awards.

We recognized stock-based compensation expense for the RSUs and PSUs of $13.8 million and $7.8 million for the three months ended March 31, 2023 and 2022, respectively. Excluded from stock-based compensation expense is capitalized software development costs of $0.2 million and $0.5 million for the three months ended March 31, 2023 and 2022, respectively. As of March 31, 2023, the total estimated remaining stock-based compensation expense for the aforementioned RSUs and PSUs was $152.7 million, which is expected to be recognized over a weighted average period of 2.9 years.

Restricted Stock Awards

A summary of activity in connection with our restricted stock awards ("RSAs") for the three months ended March 31, 2023 is as follows (number of shares in thousands):


	Number of Shares	Weighted Average Grant Date Fair Value per Share
Unvested as of December 31, 2022	6	$	96.33
Granted	2	126.44


Unvested as of March 31, 2023	8	$	103.59

We have the right to repurchase any unvested RSAs subject to certain conditions. RSAs vest over a one-year period. Our stock-based compensation expense for RSAs was not material for the periods presented.

As of March 31, 2023, the total estimated remaining stock-based compensation expense for unvested RSAs with a repurchase right was $0.4 million, which is expected to be recognized over a weighted average period of 0.7 years.

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash from operating activities
Net loss	$ (35,110)	$ (14,287)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	6,937	7,878
Amortization of operating lease right-of-use assets	568	887
Gain on lease modification	(2,366)	0
Deferred income taxes	4	(342)
Stock-based compensation, including as amortized	14,637	7,955
Other	(159)	427
Changes in operating assets and liabilities:
Accounts receivable	(914)	(3,431)
Prepaid expenses and other current assets	(2,465)	(1,942)
Other assets	66	(573)
Accounts payable	(1,777)	2,987
Accrued employee expenses	13,041	(5,016)
Accrued expenses	2,407	1,722
Operating lease liabilities	(771)	(631)
Other liabilities	7,475	2,122
Net cash provided by (used in) operating activities	1,573	(2,244)
Cash from investing activities
Purchases of available-for-sale investments	(1,285)	(23,309)
Proceeds from sales of available-for-sale investments	1,013	0
Proceeds from maturities of available-for-sale investments	37,890	23,343
Purchases of property and equipment	(794)	(1,830)
Capitalization of software development costs	(1,165)	(3,484)
Proceeds from sale of equity-method investment	629	0
Net cash provided by (used in) investing activities	36,288	(5,280)
Cash from financing activities
Proceeds from stock option exercises	834	100
Tax withholding for net share settlement	(5,539)	(1,073)
Net cash used in financing activities	(4,705)	(973)
Net increase (decrease) in cash, cash equivalents and restricted cash	33,156	(8,497)
Cash, cash equivalents and restricted cash
Beginning of period	71,019	58,283
End of period	104,175	49,786
Reconciliation of cash, cash equivalents and restricted cash [Abstract]
Cash and cash equivalents	103,925	49,536
Restricted cash included in other assets	250	250
Total cash, cash equivalents and restricted cash	$ 104,175	$ 49,786

Investment Securities and Fair Value Measurements - Additional Information (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Debt securities, available-for-sale, allowance for credit loss, excluding accrued Interest	$ 0	$ 0

Investment Securities and Fair Value Measurements - Fair Value, Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale investment securities:	$ 77,745	$ 114,458
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale investment securities:	9,579	17,387
Agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale investment securities:	10,942	17,023
Fair value, recurring measurements
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	158,360	157,718
Fair value, recurring measurements \| Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale investment securities:	9,579	17,387
Fair value, recurring measurements \| Agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale investment securities:	10,942	17,023
Fair value, recurring measurements \| Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale investment securities:	57,224	80,048
Fair value, recurring measurements \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	24,442	41,973
Fair value, recurring measurements \| Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	56,173	1,287
Fair value, recurring measurements \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	137,839	123,308
Fair value, recurring measurements \| Level 1 \| Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale investment securities:	0	0
Fair value, recurring measurements \| Level 1 \| Agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale investment securities:	0	0
Fair value, recurring measurements \| Level 1 \| Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale investment securities:	57,224	80,048
Fair value, recurring measurements \| Level 1 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	24,442	41,973
Fair value, recurring measurements \| Level 1 \| Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	56,173	1,287
Fair value, recurring measurements \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	20,521	34,410
Fair value, recurring measurements \| Level 2 \| Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale investment securities:	9,579	17,387
Fair value, recurring measurements \| Level 2 \| Agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale investment securities:	10,942	17,023
Fair value, recurring measurements \| Level 2 \| Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale investment securities:	0	0
Fair value, recurring measurements \| Level 2 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	0	0
Fair value, recurring measurements \| Level 2 \| Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	$ 0	$ 0

Capitalized Software Development Costs, net - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Research and Development [Abstract]
Capitalized software development costs	$ 1.0	$ 4.1
Amortization expense	5.9	6.1
Capitalized computer software, disposals	$ 2.2	$ 0.8

Investment Securities and Fair Value Measurements

3 Months Ended

Mar. 31, 2023

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 March 31, 2023 and December 31, 2022 (in thousands):


	March 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Corporate bonds	$	9,631	$	—	$	(52)	$	9,579
Agency securities	11,259		—		(317)		10,942

Treasury securities	58,249		—		(1,025)		57,224
Total available-for-sale investment securities	$	79,139	$	—	$	(1,394)	$	77,745


	December 31, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Corporate bonds	$	17,497	$	2	$	(112)	$	17,387
Agency securities	17,507		—		(484)		17,023

Treasury securities	81,605		—		(1,557)		80,048
Total available-for-sale investment securities	$	116,609	$	2	$	(2,153)	$	114,458

As of March 31, 2023, 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 March 31, 2023 or December 31, 2022.

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


	March 31, 2023				December 31, 2022
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in one year or less	$	66,348	$	65,022	$	90,822	$	89,297
Due after one year through three years	12,791		12,723		25,787		25,161
Total available-for-sale investment securities	$	79,139	$	77,745	$	116,609	$	114,458

During the three months ended March 31, 2023 and 2022, we had sales and maturities of investment securities, as follows (in thousands):


	Three Months Ended March 31, 2023
	Gross Realized Gains		Gross Realized Losses		Gross Proceeds from Sales		Gross Proceeds from Maturities
Corporate bonds	$	3	$	—	$	1,013	$	6,860
Agency securities	—		—		—		6,250

Treasury securities	—		—		—		24,780
Total	$	3	$	—	$	1,013	$	37,890


	Three Months Ended March 31, 2022
	Gross Realized Gains		Gross Realized Losses		Gross Proceeds from Sales		Gross Proceeds from Maturities
Corporate bonds	$	—	$	—	$	—	$	12,343


Treasury securities	—		—		—		11,000
Total	$	—	$	—	$	—	$	23,343

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 March 31, 2023 and December 31, 2022 by level within the fair value hierarchy (in thousands):


	March 31, 2023
	Level 1		Level 2		Total Fair Value
Cash equivalents:
Money market funds	$	24,442	$	—	$	24,442
Treasury securities	56,173		—		56,173

Available-for-sale investment securities:
Corporate bonds	—		9,579		9,579
Agency securities	—		10,942		10,942

Treasury securities	57,224		—		57,224
Total	$	137,839	$	20,521	$	158,360


	December 31, 2022
	Level 1		Level 2		Total Fair Value
Cash equivalents:
Money market funds	$	41,973	$	—	$	41,973
Treasury securities	1,287		—		1,287
Available-for-sale investment securities:
Corporate bonds	—		17,387		17,387
Agency securities	—		17,023		17,023

Treasury securities	80,048		—		80,048
Total	$	123,308	$	34,410	$	157,718

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

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

Stock-Based Compensation - Assumptions (Details) - Stock Options	3 Months Ended
	Mar. 31, 2023 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date fair value (in USD 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%

Revenue and Other Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Total revenue	$ 136,100	$ 105,296
Core solutions
Disaggregation of Revenue [Line Items]
Total revenue	37,169	30,809
Value Added Services
Disaggregation of Revenue [Line Items]
Total revenue	96,835	71,500
Other
Disaggregation of Revenue [Line Items]
Total revenue	$ 2,096	$ 2,987

- 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

Commitments and Contingencies (Details) - USD ($)	3 Months Ended
Commitments and Contingencies (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Per incident policy limit	$ 100,000
Quota share of tenant liability insurance provided, percent	100.00%
Liability for reported claims and claims incurred but not reported	$ 3,400,000	$ 2,700,000
Deposits held with a third party related to insurance services collateral	$ 2,800,000	$ 4,500,000

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net loss	$ (35,110)	$ (14,287)
Other comprehensive income (loss):
Changes in unrealized gains (losses) on investment securities	763	(1,345)
Comprehensive loss	$ (34,347)	$ (15,632)

- Definition

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

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+ Details

Investment Securities and Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Schedule of Available-for-sale Securities

Investment securities classified as available-for-sale consisted of the following as of March 31, 2023 and December 31, 2022 (in thousands):


	March 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Corporate bonds	$	9,631	$	—	$	(52)	$	9,579
Agency securities	11,259		—		(317)		10,942

Treasury securities	58,249		—		(1,025)		57,224
Total available-for-sale investment securities	$	79,139	$	—	$	(1,394)	$	77,745


	December 31, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Corporate bonds	$	17,497	$	2	$	(112)	$	17,387
Agency securities	17,507		—		(484)		17,023

Treasury securities	81,605		—		(1,557)		80,048
Total available-for-sale investment securities	$	116,609	$	2	$	(2,153)	$	114,458

Available-for-sale Investments, by Remaining Contract Maturity

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


	March 31, 2023				December 31, 2022
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in one year or less	$	66,348	$	65,022	$	90,822	$	89,297
Due after one year through three years	12,791		12,723		25,787		25,161
Total available-for-sale investment securities	$	79,139	$	77,745	$	116,609	$	114,458

Schedule of Sales, Calls, and Maturities

During the three months ended March 31, 2023 and 2022, we had sales and maturities of investment securities, as follows (in thousands):


	Three Months Ended March 31, 2023
	Gross Realized Gains		Gross Realized Losses		Gross Proceeds from Sales		Gross Proceeds from Maturities
Corporate bonds	$	3	$	—	$	1,013	$	6,860
Agency securities	—		—		—		6,250

Treasury securities	—		—		—		24,780
Total	$	3	$	—	$	1,013	$	37,890


	Three Months Ended March 31, 2022
	Gross Realized Gains		Gross Realized Losses		Gross Proceeds from Sales		Gross Proceeds from Maturities
Corporate bonds	$	—	$	—	$	—	$	12,343


Treasury securities	—		—		—		11,000
Total	$	—	$	—	$	—	$	23,343

Fair Value, Assets Measured on Recurring Basis


	March 31, 2023
	Level 1		Level 2		Total Fair Value
Cash equivalents:
Money market funds	$	24,442	$	—	$	24,442
Treasury securities	56,173		—		56,173

Available-for-sale investment securities:
Corporate bonds	—		9,579		9,579
Agency securities	—		10,942		10,942

Treasury securities	57,224		—		57,224
Total	$	137,839	$	20,521	$	158,360


	December 31, 2022
	Level 1		Level 2		Total Fair Value
Cash equivalents:
Money market funds	$	41,973	$	—	$	41,973
Treasury securities	1,287		—		1,287
Available-for-sale investment securities:
Corporate bonds	—		17,387		17,387
Agency securities	—		17,023		17,023

Treasury securities	80,048		—		80,048
Total	$	123,308	$	34,410	$	157,718

Accrued Employee Expenses

3 Months Ended

Mar. 31, 2023

Accrued Employee Expenses

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


	March 31, 2023		December 31, 2022
Accrued vacation	$	13,263	$	12,067
Accrued bonuses	5,525		13,806
Accrued severance	16,693		496
Accrued payroll and other	11,606		8,007


Total accrued employee expenses	$	47,087	$	34,376

Accrued severance as of March 31, 2023 is primarily related to $14.9 million of separation costs associated with our former Chief Executive Officer's Transition and Separation Agreement, dated March 1, 2023 ("Separation Agreement"), which will be paid out in the second quarter of 2023.

Leases (Tables)

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Schedule of Components of Lease Expense

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


	Three Months Ended March 31,
	2023		2022
Operating lease cost	$	1,145	$	1,447
Variable lease cost	573		123
Total lease cost	$	1,718	$	1,570

Lease Assets and Liabilities

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


	March 31, 2023		December 31, 2022
Assets

Operating lease right-of-use assets	$	20,849	$	23,485

Liabilities
Other current liabilities	$	3,132	$	3,357
Operating lease liabilities	45,257		50,237
Total lease liabilities	$	48,389	$	53,594

Schedule of Minimum Lease Payments Under Leases

Future minimum lease payments under non-cancellable leases as of March 31, 2023 were as follows (in thousands):


Years ending December 31,
2023	$	1,077
2024	5,607
2025	6,837
2026	7,035
2027	7,239
Thereafter	35,043
Total future minimum lease payments	62,838
Less: imputed interest	(14,449)
Total	$	48,389

Stock-Based Compensation - Stock Option Activity (Details) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Number of Shares
Options outstanding, beginning balance (in shares)	516,000
Options granted (in shares)	120,000
Options exercised (in shares)	(64,000)
Options outstanding, ending balance (in shares)	572,000	516,000
Weighted Average Exercise Price per Share
Options outstanding, beginning balance (in dollars per share)	$ 12.90
Options granted (in dollars per share)	129.74
Options exercised (in dollars per share)	13.05
Options outstanding, ending balance (in dollars per share)	$ 37.38	$ 12.90
Weighted Average Remaining Contractual Life in Years	3 years 3 months 18 days	2 years 8 months 12 days

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock Class A common stock	Common Stock Class B common stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Treasury Stock	Retained Earnings/(Accumulated Deficit)
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)		17,000
Exercise of stock options	100			100
Stock-based compensation	7,967			7,967
Vesting of restricted stock units, net of shares withheld for taxes (in shares)		17,000
Vesting of restricted stock units, net of shares withheld for taxes	(1,073)			(1,073)
Conversion of Class B common stock to Class A common stock (in shares)		(572,000)	(572,000)
Other comprehensive loss	(1,345)				(1,345)
Net loss	(14,287)						(14,287)
Ending balance (in shares) at Mar. 31, 2022		20,023,000	14,836,000
Ending balance at Mar. 31, 2022	288,743	$ 2	$ 2	178,924	(1,539)	(25,756)	137,110
Beginning balance (in shares) at Dec. 31, 2022		20,569,000	14,746,000
Beginning balance at Dec. 31, 2022	$ 265,546	$ 2	$ 2	209,704	(1,684)	(25,756)	83,278
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)	64,000	64,000
Exercise of stock options	$ 834			834
Stock-based compensation	14,075			14,075
Vesting of restricted stock units, net of shares withheld for taxes (in shares)		79,000
Vesting of restricted stock units, net of shares withheld for taxes	(5,539)			(5,539)
Conversion of Class B common stock to Class A common stock (in shares)		(27,000)	(27,000)
Issuance of restricted stock awards (in shares)		2,000
Other comprehensive loss	763				763
Net loss	(35,110)						(35,110)
Ending balance (in shares) at Mar. 31, 2023		20,741,000	14,719,000
Ending balance at Mar. 31, 2023	$ 240,569	$ 2	$ 2	$ 219,074	$ (921)	$ (25,756)	$ 48,168

Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (in shares)	120,000
Remaining stock-based compensation expense for unvested options, not yet recognized	$ 7.9
Class A common stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (in shares)	120,000	0
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense, weighted average recognition period	4 years 9 months 18 days
Stock Options \| Tranche one
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage	33.33%
Stock Options \| Tranche two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage	33.33%
Stock Options \| Tranche three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage	33.33%

Nature of Business	3 Months Ended
Nature of Business	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business	Nature of BusinessAppFolio, Inc. ("we," "us" or "our") is a leading provider of cloud business management solutions for the real estate industry. Our solutions are designed to enable our customers to digitally transform their businesses, address critical business operations and deliver a better customer experience. Digital transformation is effectively a requirement for business success in the modern world, and the way we work and live requires powerful software solutions.

Leases

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Leases

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

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


	Three Months Ended March 31,
	2023		2022
Operating lease cost	$	1,145	$	1,447
Variable lease cost	573		123
Total lease cost	$	1,718	$	1,570

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


	March 31, 2023		December 31, 2022
Assets

Operating lease right-of-use assets	$	20,849	$	23,485

Liabilities
Other current liabilities	$	3,132	$	3,357
Operating lease liabilities	45,257		50,237
Total lease liabilities	$	48,389	$	53,594

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

Future minimum lease payments under non-cancellable leases as of March 31, 2023 were as follows (in thousands):


Years ending December 31,
2023	$	1,077
2024	5,607
2025	6,837
2026	7,035
2027	7,239
Thereafter	35,043
Total future minimum lease payments	62,838
Less: imputed interest	(14,449)
Total	$	48,389

Revenue and Other Information

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue and Other Information

The following table presents our revenue categories for the three months ended March 31, 2023 and 2022 (in thousands):


	Three Months Ended March 31,
	2023		2022
Core solutions	$	37,169	$	30,809
Value Added Services	96,835		71,500
Other	2,096		2,987
Total revenue	$	136,100	$	105,296

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

Deferred Revenue

Deferred revenue as of March 31, 2023 and December 31, 2022 was $1.0 million and $0.9 million, respectively, and is included in Other current liabilities on our Condensed Consolidated Balance Sheets. During the three months ended March 31, 2023 and 2022, we recognized $0.6 million and $1.3 million of revenue, respectively, which were included in the deferred revenue balances as of December 31, 2022 and 2021, respectively.

Remaining Performance Obligations

As of March 31, 2023, the total non-cancelable remaining performance obligations ("RPO") under our contracts with customers was $20 million, and we expect to recognize revenue on approximately 49% of these RPO over the following 12 months, with the balance to be recognized thereafter.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI https://asc.fasb.org/topic&trid=49130388

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

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

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

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

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

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

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

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

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

+ Details

Condensed Consolidated Statements of Operations - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2023

Mar. 31, 2022

Income Statement [Abstract]

Revenue

$ 136,100

$ 105,296

Costs and operating expenses:

Cost of revenue (exclusive of depreciation and amortization)

^[1]

56,208

43,347

Sales and marketing

^[1]

29,398

24,919

Research and product development

^[1]

37,662

24,320

General and administrative

^[1]

31,691

18,964

Depreciation and amortization

7,671

8,415

Total costs and operating expenses

162,630

119,965

Loss from operations

(26,530)

(14,669)

Other income (loss), net

(10)

Interest income, net

1,361

107

Loss before provision for income taxes

(25,149)

(14,572)

Provision for (benefit from) income taxes

9,961

(285)

Net loss

$ (35,110)

$ (14,287)

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

$ (0.99)

$ (0.41)

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

$ (0.99)

$ (0.41)

Weighted average common shares outstanding, basic (in shares)

35,443,000

34,836,000

Weighted average common shares outstanding, diluted (in shares)

35,443,000

34,836,000

[1]

Includes stock-based compensation expense as follows:


	Three Months Ended March 31,
	2023		2022
Stock-based compensation expense included in costs and operating expenses:
Cost of revenue (exclusive of depreciation and amortization)	$	768	$	358
Sales and marketing	2,417		1,460
Research and product development	5,439		2,806
General and administrative	5,279		2,794
Total stock-based compensation expense	$	13,903	$	7,418

Investment Securities and Fair Value Measurements - Schedule of Sales, Calls and Maturities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Debt Securities, Available-for-sale [Line Items]
Gross Realized Gains	$ 3	$ 0
Gross Realized Losses	0	0
Gross Proceeds from Sales	1,013	0
Gross Proceeds from Maturities	37,890	23,343
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Gross Realized Gains	3	0
Gross Realized Losses	0	0
Gross Proceeds from Sales	1,013	0
Gross Proceeds from Maturities	6,860	12,343
Agency securities
Debt Securities, Available-for-sale [Line Items]
Gross Realized Gains	0
Gross Realized Losses	0
Gross Proceeds from Sales	0
Gross Proceeds from Maturities	6,250
Treasury securities
Debt Securities, Available-for-sale [Line Items]
Gross Realized Gains	0	0
Gross Realized Losses	0	0
Gross Proceeds from Sales	0	0
Gross Proceeds from Maturities	$ 24,780	$ 11,000

Accrued Employee Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Compensation Related Costs [Abstract]
Accrued vacation	$ 13,263	$ 12,067
Accrued bonuses	5,525	13,806
Accrued severance	16,693	496
Accrued payroll and other	11,606	8,007
Total accrued employee expenses	$ 47,087	$ 34,376

Leases - Lease Related Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Operating lease right-of-use assets	$ 20,849	$ 23,485
Other current liabilities	3,132	3,357
Operating lease liabilities	45,257	50,237
Total lease liabilities	$ 48,389	$ 53,594
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Other current liabilities

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Summary of Stock Option Activity

A summary of activity in connection with our stock options for the three months ended March 31, 2023, 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, 2022	516	$	12.90	2.7
Options granted	120	129.74
Options exercised	(64)	13.05

Options outstanding as of March 31, 2023	572	$	37.38	3.3

Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions

The following table summarizes information relating to our stock options granted during three months ended March 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 three months ended March 31, 2023, is as follows (number of shares in thousands):


	Number of Shares	Weighted Average Grant Date Fair Value per Share
Unvested as of December 31, 2022	1,162	$	116.88
Granted	610	122.08
Vested	(124)	116.45
Forfeited	(28)	112.95
Unvested as of March 31, 2023	1,620	$	118.94

Schedule of Restricted Stock Awards Activity

A summary of activity in connection with our restricted stock awards ("RSAs") for the three months ended March 31, 2023 is as follows (number of shares in thousands):


	Number of Shares	Weighted Average Grant Date Fair Value per Share
Unvested as of December 31, 2022	6	$	96.33
Granted	2	126.44


Unvested as of March 31, 2023	8	$	103.59

Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	Mar. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation and Significant Accounting Policies	Basis of Presentation and Significant Accounting PoliciesThe accompanying unaudited Condensed Consolidated Financial Statements were prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. Accordingly, these Condensed Consolidated Financial Statements should be read in conjunction with our audited consolidated financial statements and the related notes included in our Annual Report, which was filed with the SEC on February 9, 2023. The year-end condensed balance sheet was derived from our audited consolidated financial statements. Our unaudited interim Condensed Consolidated Financial Statements include, in the opinion of management, all adjustments, consisting of normal and recurring items, necessary for the fair statement of our Condensed Consolidated Financial Statements.
Use of Estimates	Use of EstimatesThe 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 financial instruments, capitalized software development costs, period of benefit associated with deferred costs, incremental borrowing rate used to measure operating lease liabilities, the recoverability of goodwill and long-lived assets, income taxes, useful lives associated with property and equipment and intangible assets, contingencies, assumptions underlying performance-based compensation (whether cash or stock-based), and assumptions underlying stock-based compensation. Actual results could differ from those estimates and any such differences may have a material impact on our Condensed Consolidated Financial Statements.
Reclassification	Reclassification We reclassified certain amounts in our Condensed Consolidated Statements of Cash Flows within the cash flows from operating activities section in the prior year to conform to the current year's presentation.
Net Loss per Common Share	Net Loss per Common ShareNet 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.
Recent Accounting Pronouncements Not Yet Adopted	Recent Accounting Pronouncements Not Yet Adopted In October 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2021-08, "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers," which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, "Revenue from Contracts with Customers," as if the acquirer had originated the contracts. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. We adopted ASU 2021-08 on January 1, 2023. Adoption did not have an impact on our condensed consolidated financial statements.

Capitalized Software Development Costs, net

3 Months Ended

Mar. 31, 2023

Research and Development [Abstract]

Capitalized Software Development Costs, net

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


	March 31, 2023		December 31, 2022
Capitalized software development costs, gross	$	128,120	$	129,749
Less: Accumulated amortization	(97,653)		(94,434)
Capitalized software development costs, net	$	30,467	$	35,315

Capitalized software development costs were $1.0 million and $4.1 million for the three months ended March 31, 2023 and 2022, respectively. Amortization expense with respect to capitalized software development costs totaled $5.9 million and $6.1 million for the three months ended March 31, 2023 and 2022. During the three months ended March 31, 2023 and 2022, we disposed of $2.2 million and $0.8 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,
2023	$	13,707
2024	11,598
2025	4,567
2026	595
Total amortization expense	$	30,467

Capitalized Software Development Costs, net (Tables)

3 Months Ended

Mar. 31, 2023

Research and Development [Abstract]

Schedule of Capitalized Computer Software

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


	March 31, 2023		December 31, 2022
Capitalized software development costs, gross	$	128,120	$	129,749
Less: Accumulated amortization	(97,653)		(94,434)
Capitalized software development costs, net	$	30,467	$	35,315

Schedule of Capitalized Computer Software Future Amortization Expense

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


Years Ending December 31,
2023	$	13,707
2024	11,598
2025	4,567
2026	595
Total amortization expense	$	30,467

Investment Securities and Fair Value Measurements - Available-for-sale Investments, by Remaining Contract Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Amortized Cost
Due in one year or less	$ 66,348	$ 90,822
Due after one year through three years	12,791	25,787
Amortized Cost	79,139	116,609
Estimated Fair Value
Due in one year or less	65,022	89,297
Due after one year through three years	12,723	25,161
Estimated Fair Value	$ 77,745	$ 114,458

Capitalized Software Development Costs, net - Capitalized Computer Software (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Research and Development [Abstract]
Capitalized software development costs, gross	$ 128,120	$ 129,749
Less: Accumulated amortization	(97,653)	(94,434)
Capitalized software development costs, net	$ 30,467	$ 35,315

Stock-Based Compensation - Restricted Stock Units Activity (Details) - Restricted Stock Units	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Number of Shares
Unvested, beginning balance (in shares) \| shares	1,162,000
Granted (in shares) \| shares	610,000
Vested (in shares) \| shares	(124,000)
Forfeited (in shares) \| shares	(28,000)
Unvested, ending balance (in shares) \| shares	1,620,000
Weighted Average Grant Date Fair Value per Share
Unvested, beginning balance (in dollars per share) \| $ / shares	$ 116.88
Granted (in dollars per share) \| $ / shares	122.08
Vested (in dollars per share) \| $ / shares	116.45
Forfeited (in dollars per share) \| $ / shares	112.95
Unvested, ending balance (in dollars per share) \| $ / shares	$ 118.94

Intangible Assets, net - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 22,801	$ 22,801
Accumulated Amortization	(18,587)	(17,968)
Net Carrying Value	$ 4,214	$ 4,833
Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted Average Useful Life in Years	5 years 9 months 18 days	4 years 8 months 12 days
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 1,670	$ 1,670
Accumulated Amortization	(1,503)	(1,448)
Net Carrying Value	$ 167	$ 222
Customer relationships \| Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted Average Useful Life in Years	5 years	5 years
Database
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 4,710	$ 4,710
Accumulated Amortization	(2,002)	(1,884)
Net Carrying Value	$ 2,708	$ 2,826
Database \| Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted Average Useful Life in Years	10 years	10 years
Technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 6,539	$ 6,539
Accumulated Amortization	(6,539)	(6,539)
Net Carrying Value	$ 0	$ 0
Technology \| Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted Average Useful Life in Years	4 years	4 years
Trademarks and trade names
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 1,520	$ 1,520
Accumulated Amortization	(1,288)	(1,211)
Net Carrying Value	$ 232	$ 309
Trademarks and trade names \| Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted Average Useful Life in Years	5 years	5 years
Partner relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 680	$ 680
Accumulated Amortization	(680)	(680)
Net Carrying Value	$ 0	$ 0
Partner relationships \| Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted Average Useful Life in Years	3 years	3 years
Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 7,340	$ 7,340
Accumulated Amortization	(6,239)	(5,872)
Net Carrying Value	$ 1,101	$ 1,468
Non-compete agreements \| Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted Average Useful Life in Years	5 years	5 years
Domain names
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 90	$ 90
Accumulated Amortization	(84)	(82)
Net Carrying Value	$ 6	$ 8
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

Intangible Assets, net

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets, net

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


	March 31, 2023
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Weighted Average Useful Life in Years
Customer relationships	$	1,670	$	(1,503)	$	167	5.0
Database	4,710		(2,002)		2,708		10.0
Technology	6,539		(6,539)		—		4.0
Trademarks and trade names	1,520		(1,288)		232		5.0
Partner relationships	680		(680)		—		3.0
Non-compete agreements	7,340		(6,239)		1,101		5.0
Domain names	90		(84)		6		5.0
Patents	252		(252)		—		5.0

Total intangible assets, net	$	22,801	$	(18,587)	$	4,214	5.8


	December 31, 2022
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Weighted Average Useful Life in Years
Customer relationships	$	1,670	$	(1,448)	$	222	5.0
Database	4,710		(1,884)		2,826		10.0
Technology	6,539		(6,539)		—		4.0
Trademarks and trade names	1,520		(1,211)		309		5.0
Partner relationships	680		(680)		—		3.0
Non-compete agreements	7,340		(5,872)		1,468		5.0
Domain names	90		(82)		8		5.0
Patents	252		(252)		—		5.0

Total intangible assets, net	$	22,801	$	(17,968)	$	4,833	4.7

Amortization expense with respect to intangible assets totaled $0.6 million and $1.2 million for the three months ended March 31, 2023 and 2022, respectively. Future amortization expense with respect to intangible assets is estimated as follows (in thousands):


Years Ending December 31,
2023	$	1,857
2024	473
2025	471
2026	471
2027	471
Thereafter	471
Total amortization expense	$	4,214

Intangible Assets, net - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 0.6	$ 1.2

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Basis of Presentation and Significant Accounting Policies

The accompanying unaudited Condensed Consolidated Financial Statements were prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. Accordingly, these Condensed Consolidated Financial Statements should be read in conjunction with our audited consolidated financial statements and the related notes included in our Annual Report, which was filed with the SEC on February 9, 2023. The year-end condensed balance sheet was derived from our audited consolidated financial statements. Our unaudited interim Condensed Consolidated Financial Statements include, in the opinion of management, all adjustments, consisting of normal and recurring items, necessary for the fair statement of our Condensed Consolidated Financial Statements. The operating results for the three months ended March 31, 2023 are not necessarily indicative of the results expected for the full year ending December 31, 2023.

Reclassification

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

Use of Estimates

The preparation of financial statements in conformity with GAAP requires 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 financial instruments, capitalized software development costs, period of benefit associated with deferred costs, incremental borrowing rate used to measure operating lease liabilities, the recoverability of goodwill and long-lived assets, income taxes, useful lives associated with property and equipment and intangible assets, contingencies, assumptions underlying performance-based compensation (whether cash or stock-based), and assumptions underlying stock-based compensation. Actual results could differ from those estimates and any such differences may have a material impact on our Condensed Consolidated Financial Statements.

Net Loss per Common Share

Net 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 presents a reconciliation of the weighted average number of shares of our Class A and Class B common stock used to compute net loss per common share (in thousands):


	Three Months Ended March 31,
	2023	2022
Weighted average common shares outstanding	35,451	34,840
Less: Weighted average unvested restricted shares subject to repurchase	8	4
Weighted average common shares outstanding; basic and diluted	35,443	34,836

Because we reported a net loss for all periods presented, all potentially dilutive common shares are anti-dilutive for these periods and have been excluded from the calculation of net loss per share.

Recent Accounting Pronouncements Not Yet Adopted

In October 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2021-08, "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers," which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, "Revenue from Contracts with Customers," as if the acquirer had originated the contracts. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. We adopted ASU 2021-08 on January 1, 2023. Adoption did not have an impact on our condensed consolidated financial statements.

Revenue and Other Information (Tables)

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Schedule of Product Information by Revenue Categories

The following table presents our revenue categories for the three months ended March 31, 2023 and 2022 (in thousands):


	Three Months Ended March 31,
	2023		2022
Core solutions	$	37,169	$	30,809
Value Added Services	96,835		71,500
Other	2,096		2,987
Total revenue	$	136,100	$	105,296

Leases - Schedule of Minimum Lease Payments Under Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Years ending December 31,
2023	$ 1,077
2024	5,607
2025	6,837
2026	7,035
2027	7,239
Thereafter	35,043
Total future minimum lease payments	62,838
Less: imputed interest	(14,449)
Total	$ 48,389	$ 53,594

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Schedule of Weighted Average Number of Shares

The following table presents a reconciliation of the weighted average number of shares of our Class A and Class B common stock used to compute net loss per common share (in thousands):


	Three Months Ended March 31,
	2023	2022
Weighted average common shares outstanding	35,451	34,840
Less: Weighted average unvested restricted shares subject to repurchase	8	4
Weighted average common shares outstanding; basic and diluted	35,443	34,836

Stock-Based Compensation - Restricted Stock Awards (Details) - Restricted Stock Awards shares in Thousands	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Number of Shares
Unvested, beginning balance (in shares) \| shares	6
Granted (in shares) \| shares	2
Unvested, ending balance (in shares) \| shares	8
Weighted Average Grant Date Fair Value per Share
Unvested, beginning balance (in dollars per share) \| $ / shares	$ 96.33
Granted (in dollars per share) \| $ / shares	126.44
Unvested, ending balance (in dollars per share) \| $ / shares	$ 103.59