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

Company: APPFOLIO INC
Filing Date: 2025-04-24
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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 year, primarily due to a $2.8 million increase in personnel-related costs, including stock-based and performance-based compensation, primarily due to headcount growth.

We expect general and administrative expenses for the year ending December 31, 2025 to decrease as a percentage of revenue compared to the year ended December 31, 2024 as we continue to leverage headcount efficiencies.

17

Depreciation and Amortization

 Three Months EndedMarch 31,Change 20252024Amount% (dollars in thousands)Depreciation and amortization$6,255 $5,212 $1,043 20 %Percentage of revenue2.9 %2.8 %

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