Company: APPF
Filing Date: 2025-04-24
Form Type: 10-Q
Source: 0001433195-25-000055
Chunk: 56

Company: APPFOLIO INC
Filing Date: 2025-04-24
Form: 10-Q
Item: Part I, Item 2
Chunk 56
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Depreciation and amortization expense for the three months ended March 31, 2025 increased, compared to the same period in the prior year, primarily due to amortization of the intangible assets recognized from the acquisition of Move EZ, Inc. in the fourth quarter of 2024.

We expect depreciation and amortization expenses for the year ending December 31, 2025 to increase as a percentage of revenue compared to the year ended December 31, 2024 due to amortization of the intangible assets recognized from the acquisition of Move EZ, Inc. in the fourth quarter of 2024. 

Interest Income, Net

Three Months EndedMarch 31,Change20252024Amount%(dollars in thousands)Interest income, net$2,953 $2,992 $(39)(1)%Percentage of revenue1.4 %1.6 %

Interest income for the three months ended March 31, 2025 was relatively flat, compared to the same period in the prior year.

Provision (benefit from) for income taxes

 Three Months EndedMarch 31,Change 20252024Amount% (dollars in thousands)Income before provision for income taxes$36,792 $37,082 $(290)(1)%Provision for (benefit from) income taxes$5,409 $(1,581)$6,990 *Effective tax rate14.7 %(4.3)%

*Percentage not meaningful

For the three months ended March 31, 2025, we recorded income tax expense of $5.4 million, representing an effective tax rate of 14.7%. Our effective tax rate differs from the U.S. federal statutory rate of 21% primarily due to excess tax benefits from stock-based compensation and research & development tax credits, partially offset by state income taxes and non-deductible officers' compensation. For the three months ended March 31, 2024, our effective tax rate as compared to the U.S. federal statutory rate of 21% differs primarily due to excess tax benefits from stock-based compensation, partially offset by change in valuation allowance against deferred tax assets, state income taxes and non-deductible officers' compensation. 

Our effective tax rate for the three months ended March 31, 2025, as compared to the same period in 2024, is significantly higher primarily due to the substantial decrease in excess tax benefits from stock-based compensation and changes in valuation allowance.

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