Company: APPF
Filing Date: 2025-04-24
Form Type: 10-Q
Source: 0001433195-25-000055
Chunk: 54

Company: APPFOLIO INC
Filing Date: 2025-04-24
Form: 10-Q
Item: Part I, Item 2
Chunk 54
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 usage-based services.

Our payment services experienced increased usage during the comparative periods as residents and property managers transacted more business online.

We expect total revenue for the year ending December 31, 2025 to increase compared to the year ended December 31, 2024 as we continue to add new customers and property management units under management, along with increased adoption and usage of our Value Added Services.

Cost of Revenue (Exclusive of Depreciation and Amortization)

 Three Months EndedMarch 31,Change 20252024Amount% (dollars in thousands)Cost of revenue (exclusive of depreciation and amortization)$79,498 $64,646 $14,852 23 %Percentage of revenue36.5 %34.5 %Stock-based compensation, included above$1,287 $960 $327 34 %Percentage of revenue0.6 %0.5 %

Cost of revenue (exclusive of depreciation and amortization) for the three months ended March 31, 2025 increased, compared to the same period in the prior year, primarily due to a $12.9 million increase in third-party service provider costs, driven by greater adoption and utilization of our Value Added Services.

We expect cost of revenue (exclusive of depreciation and amortization) for the year ending December 31, 2025, to stay relatively flat as a percentage of revenue compared to the year ended December 31, 2024.

Sales and Marketing

 Three Months EndedMarch 31,Change 20252024Amount% (dollars in thousands)Sales and marketing$31,057 $24,455 $6,602 27 %Percentage of revenue14.3 %13.0 %Stock-based compensation, included above$2,848 $1,510 $1,338 89 %Percentage of revenue1.3 %0.8 %

Sales and marketing expense for the three months ended March 31, 2025 increased, compared to the same period in the prior year, primarily due to a $4.1 million increase in personnel-related costs, including stock-based and performance-based compensation, necessary to support growth in the business, and a $0.7 million increase in advertising costs due to increased targeted go-to-market investment.

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We expect sales and marketing expense for the year ending December 31, 2025 to increase as a percentage of revenue compared to the year ended December 31,