Company: APPF
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001433195-25-000142
Chunk: 39

Company: APPFOLIO INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 8
Chunk 39
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 months ended September 30, 2025 and 2024 was included in the parenthetical note to the respective Condensed Consolidated Statements of Operations.Deferred Costs Deferred costs, which primarily consist of sales commissions, are considered incremental and recoverable costs of obtaining a contract with a customer. These costs are deferred and then amortized on a straight-line basis over a period of benefit that we have determined to be three years. We typically do not pay commissions for contract renewals. We determined the period of benefit by taking into consideration our customer contract term, the useful life of our internal-use software, average customer life, and other factors. Amortization expense for deferred costs is included within sales and marketing expense in the accompanying Condensed Consolidated Statements of Operations.Deferred costs were $19.6 million and $16.8 million as of September 30, 2025 and December 31, 2024, respectively, of which $9.9 million and $9.9 million, respectively, are included in Prepaid expenses and other current assets and $9.7 million and $6.9 million, respectively, are included in Other long-term assets in the accompanying Condensed Consolidated Balance Sheets. Amortization expense for deferred costs was $2.8 million, and $2.5 million for three months ended September 30, 2025 and 2024, respectively, and $8.2 million, and $7.5 million for the nine months ended September 30, 2025 and 2024, respectively. For the nine months ended September 30, 2025 and 2024, no impairments were identified in relation to the costs capitalized for the periods presented.

9

Net Income per Common ShareNet income per common share was the same for shares of our Class A and Class B common stock because they are entitled to the same liquidation and dividend rights and are therefore combined in the table below. The following table sets forth the computation of basic and diluted net income per common share (in thousands): Three Months EndedSeptember 30,Nine Months EndedSeptember 30, 2025202420252024Basic net income per share:NumeratorNet income$33,646 $33,006 $101,009 $101,334 Less: undistributed earnings to participating securities— — — 8 Net income attributable to common stockholders$33,646 $33,006 $101,009 $101,326 Denominator