Company: APPF
Filing Date: 2025-02-06
Form Type: 10-K
Source: 0001433195-25-000013
Chunk: 59

Company: APPFOLIO INC
Filing Date: 2025-02-06
Form: 10-K
Item: Item 7
Chunk 59
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 revenue compared to the year ended December 31, 2024 as we increase awareness and presence through targeted go-to-market investment.

25

Research and Product Development

Year Ended December 31, Change20242023Amount%(dollars in thousands)Research and product development$160,375 $151,364 $9,011 6 %Percentage of revenue20.2 %24.4 %Stock-based compensation, included above$25,414 $20,974 $4,440 21 %Percentage of revenue3.2 %3.4 %

Research and product development expense for the year ended December 31, 2024 increased compared to the prior year. The increase was mainly due to a $4.8 million rise in personnel-related costs, including cash bonuses and stock-based compensation. These costs, net of capitalized software development costs, were driven by headcount growth and higher salaries as we continued to invest in innovation. Additionally, there was a $4.2 million increase in allocated shared and other costs, largely due to higher technology expense. The increase in personnel costs was partially offset by $3.4 million in severance and related expenses from a workforce reduction in the third quarter of 2023. For additional information, see Note 17, Workforce Reduction, of the Notes to Consolidated Financial Statements included in Part II, Item 8 of this Annual Report. 

For the year ended December 31, 2024, stock-based compensation increased due to additional grants to current and new employees with higher grant date fair value.

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 AdministrativeYear Ended December 31, Change20242023Amount%(dollars in thousands)General and administrative$85,974 $93,452 $(7,478)(8)%Percentage of revenue10.8 %15.1 %Stock-based compensation, included above$22,361 $21,704 $657 3 %Percentage of revenue2.8 %3.5 %

General and administrative expense for the year ended December 31, 2024 decreased compared to the prior year, primarily due to a $15.4 million decrease in personnel-related costs, including cash bonuses and stock-based compensation, which was partially offset by a $7