Company: APPF
Filing Date: 2025-04-24
Form Type: 10-Q
Source: 0001433195-25-000055
Chunk: 42

Company: APPFOLIO INC
Filing Date: 2025-04-24
Form: 10-Q
Item: Part I, Item 8
Chunk 42
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, as we seek to increase brand awareness and presence through targeted go-to-market investment.

Research and Product Development

 Three Months EndedMarch 31,Change 20252024Amount% (dollars in thousands)Research and product development$43,758 $37,895 $5,863 15 %Percentage of revenue20.1 %20.2 %Stock-based compensation, included above$6,931 $5,682 $1,249 22 %Percentage of revenue3.2 %3.0 %

Research and product development expense increased for the three months ended March 31, 2025, compared to the same period in the prior year, primarily due to a $3.7 million increase in personnel-related costs, including stock-based and performance-based compensation,  net of capitalized software development costs. The increase in personnel-related costs was primarily due to headcount growth within our research and product development organization.

We expect research and product development 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.

General and Administrative Three Months EndedMarch 31,Change 20252024Amount% (dollars in thousands)General and administrative$23,351 $21,132 $2,219 11 %Percentage of revenue10.7 %11.3 %Stock-based compensation, included above$5,305 $5,322 $(17)— %Percentage of revenue2.4 %2.8 %

General and administrative expense increased for the three months ended March 31, 2025, compared to the same period in the prior 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