AppFolio, Inc. (NASDAQ:APPF) Q3 2023 Earnings Conference Call October 26, 2023 5:00 PM ET

Company Participants

Lori Barker - Investor Relations

Shane Trigg - President & Chief Executive Officer

Fay Sien Goon - Chief Financial Officer

Conference Call Participants

Operator

Good afternoon. Thank you for standing by, and welcome to AppFolio Inc.'s Third Quarter 2023 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.

Lori Barker

Thank you, Gigi. Good afternoon, everyone. I'm Lori Barker, Investor Relations for AppFolio, and I'd like to thank you for joining us today as we report AppFolio's Third Quarter 2023 Financial Results. With me on the call today are Shane Trigg, AppFolio's President and CEO; and Fay Sien Goon, AppFolio's Chief Financial Officer. This call is simultaneously being webcast on the Investor Relations section of our website at appfolioinc.com.

Before we get started, I would like to remind everyone the 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 or future product enhancements or development is a forward-looking statement.

AppFolio's actual 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, 2022 which has been filed with the SEC on February 9, 2023. 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 third quarter earnings release posted on the Investor Relations section of our website.

With that, I'd like to turn the call over to Shane Trigg. Shane, please go ahead.

Shane Trigg

Thanks, Lori, and welcome to our third quarter 2023 earnings call. This quarter, we continued to execute our strategy, while delivering profitable growth. I'm pleased to report that, revenue was up 32% year-over-year to $165 million and we now serve more than 7.8 million units. In addition, we improved our margins driving non-GAAP operating margin to 16% and non-GAAP free cash flow margin to 20%. These results are a reflection of our commitment to delivering industry-leading innovation to our customers while being disciplined operators.