Company: APPF
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001433195-25-000105
Chunk: 55

Company: APPFOLIO INC
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 8
Chunk 55
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 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 EndedJune 30,ChangeSix Months EndedJune 30,Change 20252024Amount%20252024Amount% (dollars in thousands)Cost of revenue (exclusive of depreciation and amortization)$83,827 $69,601 $14,226 20 %$163,325 $134,247 $29,078 22 %Percentage of revenue35.6 %35.3 %36.0 %34.9 %Stock-based compensation, included above$1,419 $1,175 $244 21 %$2,706 $2,135 $571 27 %Percentage of revenue0.6 %0.6 %0.6 %0.6 %

Cost of revenue (exclusive of depreciation and amortization) increased for the three and six months ended June 30, 2025, compared to the same periods in the prior year. The increase was primarily driven by higher third-party service provider costs of $13.0 million and $25.9 million, respectively, due to increased adoption and usage 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.

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Sales and Marketing

 Three Months EndedJune 30,ChangeSix Months EndedJune 30,Change 20252024Amount%20252024Amount% (dollars in thousands)Sales and marketing$36,776 $27,300 $9,476 35 %$67,833 $51,755 $16,078 31 %Percentage of revenue15.6 %13.8 %15.0 %13.4 %Stock-based compensation, included above$3,045 $1,703 $1,342 79 %$5,893 $3,213 $2,680 83 %Percentage of revenue1.3