AppFolio, Inc. (NASDAQ:APPF) Q3 2023 Earnings Call Transcript

Through our leasing CRM introduced at customer conference, we give customers visibility into everything that’s happening in the leasing funnel, enabling leasing agents to have conversations at the prospect level instead of the property level critical for customers with multifamily properties and on-site teams. Our AI leasing assistant, Lisa, seamlessly integrates with leasing CRM empowering customers to have complete control over when to engage with potential residents. Expanding our coverage of additional property types also contributes to our ability to win and retain upmarket customers. Affordable housing is now available as part of AppFolio Property Manager Plus. From project based Section 8 to LIHTC and HUD, AppFolio has tools for customers that need to track compliance and manage their affordable housing and conventional units all on one platform.

Jessica Hoff Berzac, co-owner in principle of UPholdings with 2300 units across four states on AppFolio says and I quote “Before AppFolio, we had a variety of technological solutions. One of the biggest things that AppFolio has done for us is bring all of that under one umbrella. It is all an AppFolio now.” In addition to adding property types, we are powering mixed portfolios by extending the value of our platform to scale with complex operations whether built natively or delivered by our integration partners. Take our new bulk actions functionality. Instead of completing one move out after another customers can now efficiently set dates, take necessary accounting actions, and download disposition letters, all in one streamlined workflow.

This is important to our upmarket customers, particularly those with student housing in their portfolio. Another key component of our strategy is to unlock unit growth upmarket with AppFolio Stack. With 48 partners and 1.3 million connected units, our integration partner ecosystem continues to expand, offering customers increased flexibility to integrate their favorite Proptech solutions into their workflows. One of our newest partners is Birdeye, a leader in digital customer experiences, which offers tools for reputation and review management, online listings, messaging, surveys, and competitive benchmarking. This integration will equip connected AppFolio customers with actionable AI-powered insights they can use to find and convert more leads.

The third pillar of our strategy is to expand customer adoption AppFolio Property Manager Plus and our value-added services. In the third quarter, we expanded our customer education program to better help customers and their teams build critical AppFolio expertise. These capabilities empower our customers to quickly adopt and use our products and services leading to more meaningful business outcomes. The expanded program has three components; first the new and improved AppFolio Academy, a 24/7 on-demand learning center with educational content tailored to ramp new hires quickly and assist more experienced employees when they need help with advanced topics. Second, academy training, customized training sessions led by our product — a team of product experts, specifically designed to meet the needs of customers who require a personalized and immersive learning experience.

The third and newest component is academy certifications, which are dedicated self-guided courses designed to up-level and certify our customers AppFolio expertise. Our expanded education program aims to provide comprehensive support. However, there still may be occasions when our customers need to seek specialized skills outside of their organization. In such situations finding high-quality partners with the right expertise can be challenging. We’ve set up to solve this problem by recently launching AppFolio Stack Solution Partners, a network of industry experts ready to help customers achieve their business goals. Through this new category we can now offer customers easy access to some of the best accounting and consulting solution providers in the industry which only further helps our customers succeed on our platform and inspires expanded use and adoption.

In summary, we are pleased with our continued strategic execution and resulting profitable revenue growth in the third quarter. Thank you to our customers, partners, and team members who help make the customer conference a huge success. We remain focused on creating exceptional value that powers the future of the real estate industry and sets our customers apart from the rest. I will now hand it over to Fay Sien.