Company: APPF
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001433195-25-000105
Chunk: 56

Company: APPFOLIO INC
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 8
Chunk 56
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 %0.9 %1.3 %0.8 %

Sales and marketing expense increased for the three and six months ended June 30, 2025, compared to the same periods in the prior year. The increase was primarily due to a $5.2 million and $9.3 million increase in personnel-related costs, including stock-based and performance-based compensation, to support growth in the business, combined with a $2.0 million and $2.7 million increase in advertising and promotion expense due to increased targeted go-to-market investment, for the respective three and six-month periods.

We expect sales and marketing expense for the year ending December 31, 2025 to stay relatively flat as a percentage of revenue compared to the year ended December 31, 2024.

Research and Product Development

 Three Months EndedJune 30,ChangeSix Months EndedJune 30,Change 20252024Amount%20252024Amount% (dollars in thousands)Research and product development$46,674 $39,522 $7,152 18 %$90,432 $77,417 $13,015 17 %Percentage of revenue19.8 %20.0 %20.0 %20.1 %Stock-based compensation, included above$8,176 $6,472 $1,704 26 %$15,107 $12,154 $2,953 24 %Percentage of revenue3.5 %3.3 %3.3 %3.2 %

Research and product development expense increased for the three and six months ended June 30, 2025, compared to the same periods in the prior year. The increase was primarily due to a $5.5 million and $9.2 million increase in personnel-related costs, including stock-based and performance-based compensation, net of capitalized software development costs driven by headcount growth, combined with a $0.8 million and $1.3 million increase in software license fees, for the respective three and six-month periods.

We expect research and product development expenses for the year ending December 31, 2025 to stay relatively flat as a percentage of revenue compared to the year ended December 31, 2024.

General and Administrative Three Months EndedJune 30,ChangeSix Months EndedJune 30,Change 20252024Amount%20252024Amount% (dollars in thousands