Company: APPF
Filing Date: 2025-02-06
Form Type: 10-K
Source: 0001433195-25-000013
Chunk: 60

Company: APPFOLIO INC
Filing Date: 2025-02-06
Form: 10-K
Item: Item 7
Chunk 60
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.8 million increase in allocated shared and other costs. The decrease in personnel-related costs was primarily due to the $14.9 million separation costs incurred in the first quarter of 2023 in connection with our former Chief Executive Officer's separation and the $2.5 million severance related expenses from a workforce reduction in the third quarter of 2023. For additional information, see Note 9, Accrued Employee Expenses, and Note 17, Workforce Reduction, of the Notes to Consolidated Financial Statements included in Part II, Item 8 of this Annual Report. The increase in allocated shared and other costs was primarily due to a $4.3 million lease modifications gain recognized in 2023 and a $3.5 million increase in technology and professional services expenses to support our growth in 2024.

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.

26

Depreciation and Amortization

Year Ended December 31, Change20242023Amount%(dollars in thousands)Depreciation and amortization$19,545 $28,988 $(9,443)(33)%Percentage of revenue2.5 %4.7 %

Depreciation and amortization expense for the year ended December 31, 2024 decreased, compared to the prior year, primarily due to decreased amortization expense associated with capitalized software development and intangible balances.

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. For additional information, see Note 7, Business Combination, and Note 8, Goodwill and Intangible Assets, Net, of the Notes to Consolidated Financial Statements included in Part II, Item 8 of this Annual Report. 

Interest Income, Net

Year Ended December 31,Change20242023Amount%Interest income, net$13,981 $7,031 $6,950 99 %Percentage of revenue1.8 %1.1 %

Interest income for the year ended December 31, 2024 increased, compared to the prior year, primarily due to higher interest rates