APPF - NASDAQ

Good afternoon. Thank you for standing by and welcome to AppFolio, Inc.'s First Quarter 2025 Financial Results Conference Call. Please be advised today's conference is being recorded, and a replay will be available on AppFolio's Investor Relations website. I would now like to hand the conference over to Lori Barker, Investor Relations. You may begin.

Thank you. Good afternoon, everyone. I am Lori Barker, Investor Relations for AppFolio, and I would like to thank you for joining us today as we report AppFolio's first quarter 2025 financial results. With me on the call today is Shane Trigg, AppFolio's President and CEO. This call is being simultaneously webcast on the Investor Relations section of our website at appfolioinc.com. Before we get started, I would like to remind everyone of AppFolio's safe harbor policy. Comments made during this conference call and webcast contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties. Any statement that refers to expectations, projections, or other characterizations of future events, including financial projections, future market conditions, business performance, or future product enhancements or development, is a forward-looking statement. AppFolio's actual future results could differ materially from those expressed in such forward-looking statements for any reason, including those listed in our SEC filings. AppFolio assumes no obligation to update any such forward-looking statements except as required by law. For greater detail about risks and uncertainties, please see our SEC filings, including our Form 10-K for the fiscal year ended December 31, 2024, which was filed with the SEC on February 6, 2025. In addition, this call includes non-GAAP financial measures. Reconciliations of these non-GAAP financial measures with the most directly comparable GAAP measures are included in our fourth quarter earnings release posted on the Investor Relations section of our website. With that, I will turn the call over to Shane Trigg. Shane, please go ahead.

Thanks, Lori, and welcome to everyone joining us for AppFolio's first quarter 2025 financial results. Revenue grew 16% year over year to $218 million in the first quarter as we continue to drive increased customer value in ARPU, growth in new customer units, and increased adoption of our services. I am proud to say that we had a strong start to the year in winning new business, demonstrating our success in the market, as more and more customers choose AppFolio. Also, GAAP operating margin was 24% and net cash provided by operating activities was 18%, positioning us well to continue investing in differentiated industry-leading innovation. Achieving our mission to build the platform where the real estate industry comes to do business requires us to create value for all stakeholders. Last week, we announced a strategic partnership with Second Nature to enhance the resident experience. Through the AppFolio Stack Partner ecosystem, our property management customers will have the ability to offer Second Nature's robust suite of services to their residents. I am excited about how this combination will create a simpler, more personalized experience for residents, enhancing the service our property managers are able to provide while improving their bottom line. In today's competitive market, renters have high expectations when it comes to where they live, making resident satisfaction a priority. Property managers know that meeting residents' needs and preferences is key to maintaining high occupancy rates. When choosing a place to live, prospective renters will evaluate properties based on the quality of the rental experience. Increasingly, they are demanding services that save them money and enhance their lives. Our upcoming AppFolio research report shows that 71% of renters consider resident benefits important when evaluating new rentals, yet only 42% currently have access to them. This highlights the need to meet and exceed resident expectations to stay competitive, supporting our first strategic pillar of differentiate to win. We are redefining how property managers and renters connect throughout the entire resident journey. That starts with attracting residents and eliminating barriers that slow the leasing process. We recently announced that