Here are 1-3 brief analogies to describe AppFolio (APPF):

• Shopify for property managers: AppFolio provides an all-in-one cloud-based platform for landlords and property managers to run their entire business, similar to how Shopify empowers e-commerce businesses.
• Square for property management and legal firms: AppFolio offers a comprehensive suite of software tools (covering operations, payments, and accounting) tailored for specific industries like property management and legal practices, much like Square provides diverse business solutions for small businesses.

• AppFolio Property Manager: Provides comprehensive cloud-based property management software for landlords and property managers to streamline operations across various property types.
• AppFolio Investment Management: Offers cloud-based software for real estate investment managers to simplify operations, manage assets, and enhance investor communication.
• AppFolio Property Manager PLUS: Delivers an advanced cloud-based property management platform specifically designed for larger and more complex real estate businesses.
• Value+ Services: A suite of integrated add-on services, including payment processing, tenant screening, and professional websites, that enhance the core property management platform.

AppFolio (symbol: APPF) primarily sells its cloud-based business management software to other companies.

Due to its Software-as-a-Service (SaaS) business model, AppFolio serves a highly fragmented and diverse customer base consisting of many small to medium-sized businesses. This means that AppFolio does not have individual "major customers" (i.e., specific companies that account for a significant portion, typically 10% or more, of its revenue) that are publicly disclosed in its financial filings.

Instead of naming specific major customer companies, AppFolio's customer base can be described by the categories of businesses it serves:

• Property Management Companies: These range from small independent managers to larger firms managing a portfolio of residential and commercial properties, including single-family homes, multi-family units, and community associations.
• Real Estate Investors: Individuals or groups who manage their own investment properties.
• Small to Medium-sized Law Firms: Through its MyCase platform, AppFolio provides practice management software for legal professionals.

• Amazon Web Services (subsidiary of Amazon.com, Inc.) (AMZN)

Shane Trigg
President and Chief Executive Officer

Shane Trigg is the President and Chief Executive Officer of AppFolio. He has over 25 years of leadership experience across sales and marketing, product and engineering, mergers and acquisitions, and general management within publicly-traded SaaS businesses. Prior to his current role, he served as AppFolio's General Manager, Real Estate, and President of Real Estate. Before joining AppFolio in April 2020, he was a Senior Vice President for both Commerce Cloud and Marketing Cloud at Salesforce from 2012 to 2020. Earlier in his career (2004-2011), he held various positions at MRI Software (formerly Intuit Real Estate Solutions, Inc.), eventually serving as Vice President of Global Sales and Marketing.

Tim Eaton
Chief Financial Officer

Tim Eaton was appointed Chief Financial Officer of AppFolio, effective July 30, 2025. He previously served as Interim CFO since October 2024. Eaton joined AppFolio in 2020 and has held several key positions, including Chief of Staff to the CEO. Before his tenure at AppFolio, he gained extensive experience in financial, strategic, and operational roles at Visa, Google, and Goldman Sachs.

Matthew Baird
Chief Technology Officer

Matthew Baird serves as the Chief Technology Officer at AppFolio. He is responsible for empowering AppFolio's software engineering initiatives.

Elizabeth Barat
Chief People Officer

Elizabeth Barat is the Chief People Officer for AppFolio, where she is responsible for ensuring AppFolio is a desirable workplace for employees.

Matt Mazza
Chief Trust Officer and Corporate Secretary

Matt Mazza holds the titles of Chief Trust Officer and Corporate Secretary at AppFolio, leading the company's legal, compliance, and governance functions.

The public company AppFolio (APPF) faces several key business risks, primarily stemming from intense market competition, its dependence on the cyclical U.S. real estate market, and inherent data security challenges.

1. Intense Competition: AppFolio operates in a highly competitive market against larger and well-capitalized rivals such as Yardi and RealPage. This competitive landscape necessitates substantial investment in research and development to maintain innovation and differentiate its platform, which can put pressure on operating margins. The competition can also lead to pricing pressures and challenges in securing larger enterprise-level customers.

2. Reliance on the U.S. Real Estate Market: AppFolio's business is largely tied to the health and cyclical nature of the U.S. real estate and rental market, with nearly all its revenue generated domestically. Economic downturns, fluctuations in interest rates, and employment trends directly impact the financial stability of AppFolio's property management customers, which can adversely affect the company's revenue growth, especially from its value-added services and new customer acquisition efforts.

3. Data Security and Privacy Risks: As a provider of cloud-based property management solutions, AppFolio handles a significant amount of sensitive property and tenant data. Consequently, the business is exposed to risks associated with data breaches, cyber threats, and the security practices of its third-party service providers. Any major security incident could damage the company's brand reputation, trigger regulatory scrutiny, and result in compliance and litigation expenses.

AppFolio (symbol: APPF) primarily offers software solutions for the real estate industry, with its main product focusing on property management. The company also provides solutions for investment management.

For its main product, Property Management Software, the addressable market is substantial within the United States. The U.S. housing cloud projects market, which encompasses the technology solutions AppFolio provides for property management, is projected to be approximately $2 billion in 2025. This market is expected to grow significantly, reaching an estimated $16.8 billion by 2035.

Additionally, a broader total addressable market for small business management software, which AppFolio's offerings could be considered a part of, is estimated at $16.5 billion as of 2024 in the U.S.

For AppFolio's investment management products, specific addressable market sizes were not identified in the available information, therefore, the market size is null.

AppFolio (APPF) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

1. Customer Acquisition and Unit Growth: AppFolio continues to expand its customer base and increase the total number of units managed on its platform. In Q3 2025, the company reported a 7% growth in total units under management, reaching 9.1 million, and a 7% increase in customers. Similarly, Q3 2024 saw a 5% increase in customers and a 9% increase in ending units managed. This consistent expansion of its customer base and units under management remains a fundamental driver for both its core solutions and overall revenue.
2. Increased Adoption of Higher-Tier Products and Value-Added Services: A significant driver of revenue growth comes from customers adopting premium product tiers like AppFolio Property Manager Plus and Max, as well as greater utilization of value-added services. Revenue from value-added services grew 28% year-over-year in Q3 2024, primarily due to increased usage of its online payments platform and the discontinuation of eCheck fee waivers in August 2023. This trend is expected to continue, supported by momentum in Plus and Max offerings and the early monetization of resident services.
3. Innovation with AI-Powered Solutions and Resident Experience Offerings: AppFolio is heavily investing in innovation, particularly in AI-powered solutions like Realm-X and new resident experience platforms such as FolioSpace. Realm-X automates routine tasks and workflows, receiving positive feedback from beta customers. FolioSpace, along with the acquisition of LiveEasy, aims to enhance the resident experience, differentiate AppFolio in the market, and drive further adoption. The company's AI-native platform has already secured significant customer adoption, with 96% of customers using at least one AI-powered solution. Continued investment in AI and resident experience capabilities is anticipated to fuel future growth.
4. Strategic Partnerships and Ecosystem Expansion: AppFolio is expanding its integrated ecosystem through partnerships, including AppFolio Stack, fintech solutions, and other third-party integrations. These partnerships provide customers with more seamless, end-to-end experiences, increasing platform stickiness and average revenue per user (ARPU), which supports long-term recurring revenue growth. Strategic investments, such as the $75 million investment in Second Nature, and the integration of LiveEasy, are contributing to value-added services and differentiation.
5. Effective Pricing Strategies and ARPU Growth: The company has demonstrated a focus on increasing its Average Revenue Per User (ARPU). This is evident through the higher usage of its online payments platform and the decision to stop waiving eCheck fees, which contributed to the growth in value-added services revenue. Analyst confidence in AppFolio's ARPU growth story has led to raised long-term growth estimates.

1. Share Repurchases

• AppFolio authorized a new $300.0 million share repurchase program on April 23, 2025.
• This new program replaced a previous $100.0 million stock repurchase program that had been substantially exhausted.
• As of March 31, 2025, the company reported $95.68 million in stock buybacks.

2. Share Issuance

• AppFolio's diluted weighted average shares outstanding are expected to be approximately 37 million for the full fiscal year 2025.
• The number of shares outstanding decreased by approximately 2.06% in the last year (as of a report likely from late 2024 or early 2025).
• Stock-based compensation expense was $62.1 million in 2024, $54.9 million in 2023, and $43.2 million in 2022.

4. Outbound Investments

• AppFolio completed the acquisition of Move EZ, Inc. (also referred to as LiveEasy) for $78.5 million in October 2024.
• The company has an approximate $77 million investment in Second Nature Holdings, L.P., in addition to other non-marketable equity investments.

5. Capital Expenditures

• Capital expenditures (cash outflows) were $2.0 million in 2024, $9.0 million in 2023, and $6.5 million in 2022.
• Expected capital expenditures are projected at $60 million for 2025, rising to $71 million in 2026.
• These expenditures are primarily focused on purchases of property and equipment and capitalized software development costs, supporting innovation in AI-powered tools and resident experience capabilities.