AppFolio (APPF) 10-Q 2 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	Apr. 25, 2019
Document Information [Line Items]
Entity Registrant Name	APPFOLIO INC
Entity Central Index Key	0001433195
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity emerging growth company	false
Entity small business	false
Class A common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		15,944,323
Class B common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		18,061,471

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Current assets
Cash and cash equivalents	$ 16,783	$ 74,076
Investment securities—current	17,712	16,631
Accounts receivable, net	7,966	5,516
Prepaid expenses and other current assets	15,086	11,775
Total current assets	57,547	107,998
Investment securities—noncurrent	6,300	11,256
Property and equipment, net	7,169	6,871
Operating lease right-of-use assets	16,004
Capitalized software, net	22,396	20,485
Goodwill	57,496	15,548
Intangible assets, net	26,644	5,895
Other long-term assets	7,026	7,688
Total assets	200,582	175,741
Current liabilities
Accounts payable	1,557	1,481
Accrued employee expenses	10,795	12,377
Accrued expenses	9,450	8,281
Deferred revenue	4,045	3,414
Other current liabilities	11,099	1,447
Long-term debt, net—current portion	1,213	1,213
Total current liabilities	38,159	28,213
Operating lease liabilities	19,064
Long-term debt, net	48,290	48,602
Other long-term liabilities	14	7,080
Total liabilities	105,527	83,895
Commitments and contingencies (Note 9)
Stockholders’ equity:
Preferred stock, $0.0001 par value, 25,000 authorized and no shares issued and outstanding at March 31, 2019 and December 31, 2018	0	0
Additional paid-in capital	157,253	157,898
Accumulated other comprehensive loss	(49)	(178)
Treasury stock, at cost, 370 Class A shares at March 31, 2019 and December 31, 2018	(21,562)	(21,562)
Accumulated deficit	(40,591)	(44,316)
Total stockholders’ equity	95,055	91,846
Total liabilities and stockholders’ equity	200,582	175,741
Class A common stock
Stockholders’ equity:
Common stock	2	2
Class B common stock
Stockholders’ equity:
Common stock	$ 2	$ 2

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
Preferred stock, par value (usd per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Treasury stock (in shares)	370,000,000	370,000,000
Class A common stock
Common stock, par value (usd per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	16,269,000	16,159,000
Common stock, shares outstanding	15,899,000	15,789,000
Class B common stock
Common stock, par value (usd per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	18,071,000	18,109,000
Common stock, shares outstanding	18,071,000	18,109,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Statement [Abstract]
Revenue	$ 57,091	$ 42,340
Costs and operating expenses:
Cost of revenue (exclusive of depreciation and amortization)	24,181	16,613
Sales and marketing	11,219	7,405
Research and product development	8,481	5,333
General and administrative	8,192	5,316
Depreciation and amortization	5,076	3,500
Total costs and operating expenses	57,149	38,167
Income (loss) from operations	(58)	4,173
Other expense, net	(1)	(3)
Interest income (expense), net	(497)	176
Income (loss) before provision for (benefit from) income taxes	(556)	4,346
Provision for (benefit from) income taxes	(4,281)	26
Net income	$ 3,725	$ 4,320
Net income per common share:
Basic (in dollars per share)	$ 0.11	$ 0.13
Diluted (in dollars per share)	$ 0.11	$ 0.12
Weighted average common shares outstanding:
Basic (in shares)	33,913	34,070
Diluted (in shares)	35,342	35,300

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 3,725	$ 4,320
Other comprehensive income (loss):
Changes in unrealized gains (losses) on investment securities	129	(148)
Comprehensive income	$ 3,854	$ 4,172

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common stockClass A common stock	Common stockClass B common stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Treasury Stock	Accumulated Deficit
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative-effect adjustment resulting from adoption of ASU 2014-09	$ 2,964						$ 2,964
Beginning balance at Dec. 31, 2017	85,079	$ 1	$ 3	$ 152,531	$ (209)	$ 0	(67,247)
Beginning balance (in shares) at Dec. 31, 2017		14,879	19,102
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options	470			470
Exercise of stock options (in shares)		98
Stock-based compensation	1,495			1,495
Vesting of restricted stock units, net of shares withheld for taxes	(1,650)	$ 0		(1,650)
Vesting of restricted stock units, net of shares withheld for taxes (in shares)		68
Vesting of early exercised shares	9			9
Conversion of Class B stock to Class A stock	0	$ 0
Conversion of Class B stock to Class A stock (in shares)		47	(47)
Other comprehensive income (loss)	(148)				(148)
Net income	4,320						4,320
Ending balance at Mar. 31, 2018	92,539	$ 1	$ 3	152,855	(357)	0	(59,963)
Ending balance (in shares) at Mar. 31, 2018		15,092	19,055
Beginning balance at Dec. 31, 2018	91,846	$ 2	$ 2	157,898	(178)	(21,562)	(44,316)
Beginning balance (in shares) at Dec. 31, 2018		15,789	18,109
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options	$ 90			90
Exercise of stock options (in shares)	14	14
Stock-based compensation	$ 1,831			1,831
Vesting of restricted stock units, net of shares withheld for taxes	(2,572)	$ 0		(2,572)
Vesting of restricted stock units, net of shares withheld for taxes (in shares)		58
Vesting of early exercised shares	6			6
Conversion of Class B stock to Class A stock	0	$ 0
Conversion of Class B stock to Class A stock (in shares)		38	(38)
Other comprehensive income (loss)	129				129
Net income	3,725						3,725
Ending balance at Mar. 31, 2019	$ 95,055	$ 2	$ 2	$ 157,253	$ (49)	$ (21,562)	$ (40,591)
Ending balance (in shares) at Mar. 31, 2019		15,899	18,071

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash from operating activities
Net income	$ 3,725	$ 4,320
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	5,076	3,500
Stock-based compensation	1,552	1,318
Deferred income taxes	(4,281)	0
Other	27	79
Changes in operating assets and liabilities:
Accounts receivable	(2,051)	(1,148)
Prepaid expenses and other current assets	(3,340)	441
Other long-term assets	1,365	(766)
Accounts payable	100	415
Accrued employee expenses	(2,867)	(3,842)
Accrued expenses	1,580	611
Deferred revenue	268	(1,334)
Other long-term liabilities	(859)	(252)
Net cash provided by operating activities	295	3,342
Cash from investing activities
Purchases of property and equipment	(1,030)	(263)
Additions to capitalized software	(4,658)	(2,936)
Purchases of investment securities	0	(15,573)
Sales of investment securities	1,750	5
Maturities of investment securities	2,250	8,296
Acquisition, net of cash acquired	(54,004)	0
Net cash used in investing activities	(55,692)	(10,471)
Cash from financing activities
Proceeds from stock option exercises	90	470
Tax withholding for net share settlement	(1,315)	(901)
Proceeds from issuance of debt	597	32
Principal payments on debt	(909)	(32)
Payment of debt issuance costs	(360)	0
Net cash used in financing activities	(1,897)	(431)
Net decrease in cash, cash equivalents and restricted cash	(57,294)	(7,560)
Cash, cash equivalents and restricted cash
Beginning of period	74,506	16,537
End of period	17,212	8,977
Noncash investing and financing activities
Purchases of property and equipment included in accounts payable and accrued expenses	445	114
Additions of capitalized software included in accrued and accrued employee expenses	391	243
Stock-based compensation capitalized for software development	338	235
Tax withholding for net share settlement included in accrued employee expenses	1,258	749
Purchase consideration for acquisitions included in other current liabilities	$ 6,000	$ 0

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows - Cash Reconciliation - USD ($) $ in Thousands	Mar. 31, 2019	Mar. 31, 2018
Statement of Cash Flows [Abstract]
Cash and cash equivalents	$ 16,783	$ 8,549
Restricted cash included in other assets	429	428
Total cash, cash equivalents and restricted cash	$ 17,212	$ 8,977

Nature of Business

Nature of Business	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business	Nature of Business AppFolio, Inc. (“we,” "us" or "our") provides industry-specific, cloud-based business software solutions, services and data analytics to the real estate market, which comprises a significant majority of our revenue, and, to a lesser extent, to the legal market. Our mission is to revolutionize vertical industry businesses by providing great software and services. We believe we accomplish this mission by providing our customers with a system of record to automate essential business processes, a system of engagement to enhance business interactions between our customers and their clients and other stakeholders, and a system of intelligence designed to leverage data to predict and optimize business workflows in order to enable superior customer experiences and increase efficiency across our customers' businesses. Customers in our real estate market directly and indirectly account for more than 90% of our annual revenue. Real estate customers include third-party property managers, owner-operators and real estate investment managers who manage and/or invest in single- and multi-family residences, commercial properties, community associations, student housing, as well as mixed real estate portfolios. Our legal customers are typically small law firms that directly and indirectly account for less than 10% of our annual revenue. Recent Developments Acquisition of Dynasty Marketplace, Inc. On January 7, 2019, we completed the acquisition of Dynasty Marketplace, Inc. ("Dynasty"), a provider of advanced artificial intelligence ("AI") solutions for the real estate market. Dynasty offers advanced conversational AI solutions that automate leasing communications, replace manual tasks and help customers grow their portfolios. Dynasty’s technology is designed to enable operational efficiency in the leasing process including consistent prospect experience, lead conversion, and improved market insights. For additional information regarding this acquisition, refer to Note 3, Business Combinations .

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation and Significant Accounting Policies The accompanying unaudited Condensed Consolidated Financial Statements were prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. Accordingly, these Condensed Consolidated Financial Statements should be read in conjunction with our audited consolidated financial statements and the related notes included in our Annual Report filed with the Securities and Exchange Commission ("SEC") on February 28, 2019. The year-end condensed balance sheet was derived from our audited consolidated financial statements. Our unaudited interim Condensed Consolidated Financial Statements include, in the opinion of management, all adjustments, consisting of normal and recurring items, necessary for the fair statement of the Condensed Consolidated Financial Statements. The operating results for the three months ended March 31, 2019 are not necessarily indicative of the results expected for the full year ending December 31, 2019 . Changes in Accounting Policies On January 1, 2019, we adopted Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") No. 2016-02, Leases (as amended, "ASU 2016-02" or the "new lease standard"), and have revised certain related accounting policies as follows: Leases We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities, and operating lease liabilities on our Condensed Consolidated Balance Sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As none of our leases provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU assets also include any lease payments made and excludes lease incentives and initial direct costs incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. We have lease arrangements with lease and non-lease components, which are generally accounted for as a single lease component. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. On an ongoing basis, management evaluates its estimates based on historical data and experience, as well as various other factors that management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Net Income per Common Share The net income per common share was the same for shares of our Class A and Class B common stock because they are entitled to the same liquidation and dividend rights and are therefore combined in the table below. The following table presents a reconciliation of our weighted average number of shares of our Class A and Class B common stock used to compute net income per common share (in thousands): Three Months Ended 2019 2018 Weighted average common shares outstanding 33,918 34,085 Less: Weighted average unvested restricted shares subject to repurchase 5 15 Weighted average common shares outstanding; basic 33,913 34,070 Plus: Weighted average options, restricted stock units and restricted shares used to compute diluted net income per common share 1,429 1,230 Weighted average common shares outstanding; diluted 35,342 35,300 For the three months ended March 31, 2019 and 2018 , an aggregate of approximately 362,000 and 607,000 shares, respectively, underlying performance based options ("PSOs") and performance based restricted stock units ("PSUs"), are not included in the computations of diluted and anti-dilutive shares as they are considered contingently issuable upon the satisfaction of pre-defined performance measures and their respective performance measures have not been met. The following table presents the number of anti-dilutive common shares excluded from the calculation of weighted average number of shares used to compute diluted net income per common share for the three months ended March 31, 2019 and 2018 (in thousands): Three Months Ended 2019 2018 Unvested restricted stock units 24 16 Contingent restricted stock units (1) — 6 Total shares excluded from diluted net income per common share 24 22 (1) The reported shares are based on fixed price restricted stock unit (“RSU”) commitments for which the number of shares was not determined at the grant date. For the purposes of this table, the number of shares has been determined by dividing the fixed price commitment to issue shares in the future by the closing price of our common stock as of the applicable reporting period date. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, which requires an entity to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. ASU 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements ("ASU 2018-11"). Among other things, ASU 2018-11 provides administrative relief by allowing entities to implement the lease standard on a modified retrospective basis (the "Optional Transition Method"). Effectively, the Optional Transition Method permits us to adopt the lease standard through a cumulative effect adjustment to our opening balance sheet as of January 1, 2019, and report under the new lease standard on a post-adoption basis. We adopted ASU 2016-02 effective January 1, 2019 using the Optional Transition Method. We elected the package of practical expedients permitted under the transition guidance, which allows us to carry forward our historical lease classification, our assessment of whether a contract is or contains a lease, and our initial direct costs for any leases that existed prior to adoption of the lease new standard. We also elected to combine lease and non-lease components and to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the Consolidated Statements of Operations on a straight-line basis over the lease term. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. We updated our accounting policies, processes, internal controls and information systems that were required to meet the new lease standard's reporting and disclosure requirements. The adoption of ASU 2016-02 had a material impact on our Condensed Consolidated Balance Sheets, but did not have an impact on our Condensed Consolidated Statements of Operations or our Condensed Consolidated Statements of Cash Flows. The most significant impact was the recognition of ROU assets and lease liabilities for operating leases. We also reclassified prepaid and deferred rent to the ROU asset balance as of January 1, 2019. The cumulative effect of the changes made to our Condensed Consolidated Balance Sheet at January 1, 2019 for the adoption of the new lease standard was as follows (in thousands): Balance at Adjustments Balance at Assets Prepaid expenses and other current assets $ 11,775 $ (317 ) $ 11,458 Operating lease right-of-use assets — 16,945 16,945 Liabilities and Stockholders’ Equity Other current liabilities $ 1,447 $ 3,493 $ 4,940 Operating lease liabilities — 20,056 20,056 Other long-term liabilities 7,080 (6,921 ) 159 In March 2017, the FASB issued ASU No. 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities (“ASU 2017-08”). ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium. Specifically, ASU 2017-08 requires the premium to be amortized to the earliest call date. ASU 2017-08 does not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amendments should be applied on a modified retrospective basis, with a cumulative-effect adjustment made directly to retained earnings at the beginning of the period of adoption. The adoption of this guidance did not have a material impact on our financial condition, results of operations, cash flows or disclosures. In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting ("ASU 2018-07"). This amendment expands the scope of Topic 718, Compensation—Stock Compensation (which only included share-based payments to employees) to include share-based payments issued to nonemployees for goods or services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. The adoption of this guidance did not have a material impact on our financial condition, results of operations, cash flows or disclosures. Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"), which amends the current accounting guidance and requires the measurement of all expected losses based on historical experience, current conditions and reasonable and supportable forecasts. This guidance amends the accounting for credit losses for available-for-sale investment securities and purchased financial assets with credit deterioration. ASU 2016-13 is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Early adoption is permitted for any interim or annual period after December 15, 2018. We are currently evaluating the effect of the adoption of ASU 2016-13 on our Consolidated Financial Statements. The effect will largely depend on the composition and credit quality of our investment portfolio and the economic conditions at the time of adoption. In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, a series of amendments which align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by these amendments. For public business entities, the amendments are effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2019. We have not yet determined the effect of this guidance on our financial condition, results of operations, cash flows or disclosures.

Business Combinations

Business Combinations	3 Months Ended
	Mar. 31, 2019
Business Combinations [Abstract]
Business Combinations	Business Combinations Acquisition of Dynasty On January 7, 2019, we acquired 100% of the voting equity interest of Dynasty, a provider of advanced artificial intelligence ("AI") solutions for the real estate market. Dynasty offers advanced conversational AI solutions that automate leasing communications, replace manual tasks and help customers grow their portfolios. Dynasty’s technology is designed to enable operational efficiency in the leasing process including consistent prospect experience, lead conversion, and improved market insights. The total purchase consideration was $60.2 million , subject to certain adjustments, of which $6.0 million (the "Holdback Amount") was retained by the Company to satisfy any such adjustments, including without limitation certain indemnification claims. The balance of the Holdback Amount, less any amount retained (the “Retained Amount”) with respect to any unresolved indemnification claims (each, an “Unresolved Claim”), will be released to the stockholders of Dynasty, within three business days after the one-year anniversary of the Closing Date (the “Holdback Release Date”). If an Unresolved Claim is finally resolved after the Holdback Release Date, then, within three business days after the final resolution of such Unresolved Claim, the balance of the Retained Amount after satisfying such Unresolved Claim, less any amounts associated with all remaining Unresolved Claims, will be released to the Stockholders. The Holdback Amount is recorded in other current liabilities on the Condensed Consolidated Balance Sheet as of March 31, 2019 . The transaction was accounted for using the acquisition method, and as a result, assets acquired and liabilities assumed were recorded at their estimated fair values as of the acquisition date. We are in the process of finalizing the valuation of the assets. The following table summarizes the preliminary purchase price allocation (in thousands) as well as the estimated useful lives of the acquired intangible assets over which they are amortized on a straight-line basis, as this approximates the pattern in which economic benefits are consumed: Amount Estimated Useful Life (in years) Total current assets $ 305 Identified intangible assets: Technology 7,450 4.0 Database 4,710 10.0 Customer relationships 1,110 5.0 Backlog 100 1.0 Trademark & trade name 1,390 10.0 Non-compete agreement 7,340 5.0 Total intangible assets subject to amortization 22,100 6.0 Goodwill 41,948 Indefinite Other noncurrent assets 35 Total assets acquired 64,388 Accrued and other liabilities 48 Deferred tax liability, net 4,109 Total liabilities assumed 4,157 Purchase consideration $ 60,231 Goodwill is mainly attributable to synergies expected from the acquisition and assembled workforce and is non-deductible for U.S. federal income tax purposes. We incurred a total of $291,000 in transaction costs related to the acquisition and expensed all transaction costs incurred during the period in which such service was received. The results of operations of Dynasty since the acquisition are included in our Condensed Consolidated Statements of Operations for the three months ended March 31, 2019 . Revenue and net loss attributable to Dynasty, in the period from the acquisition date of January 7, 2019 through March 31, 2019 , was $0.5 million and $1.9 million , respectively. Acquisition of WegoWise On August 31, 2018, we completed the acquisition of substantially all of the assets of WegoWise, Inc. ("WegoWise"), a provider of cloud-based utility analytics software solutions serving the real estate market. The WegoWise platform empowers building owners and third-party property managers to better manage operating and capital expenditures relating to utilities, and we expect that the acquisition will provide enhanced functionality to our real estate customers over time, such as a future utility analytics and management Value+ services. The consideration paid in cash for the assets was $14.4 million , of which $2.0 million will be held in escrow for 12 months to satisfy WegoWise’s indemnity obligations. The transaction was accounted for using the acquisition method, and as a result, assets acquired and liabilities assumed were recorded at their estimated fair values as of the acquisition date. The following table summarizes the final purchase price allocation (in thousands) as well as the estimated useful lives of the acquired intangible assets over which they are amortized on a straight-line basis, as this approximates the pattern in which economic benefits are consumed: Amount Estimated Useful Life (in years) Net tangible assets $ 270 Identified intangible assets: Customer relationships 1,170 5.0 Database 3,620 10.0 Trademark and trade name 370 10.0 Non-compete agreement 60 5.0 Backlog 140 1.0 Total intangible assets subject to amortization 5,360 8.6 Goodwill 8,811 Indefinite Purchase consideration, paid in cash $ 14,441 Goodwill is mainly attributable to synergies expected from the acquisition and assembled workforce and is deductible for U.S. federal income tax purposes. We incurred a total of $240,000 in transaction costs related to the acquisition and expensed all transaction costs incurred during the period in which such service was received. Pro Forma Results of Acquisitions The following unaudited pro forma information has been prepared for illustrative purposes only, and assumes that the aforementioned Dynasty and WegoWise acquisitions occurred on January 1, 2018 and January 1, 2017, respectively, and includes pro forma adjustments related to the amortization of acquired intangible assets, elimination of historical interest and amortization expense, income taxes, compensation arrangements, and the transaction costs incurred. The unaudited pro forma results have been prepared based on estimates and assumptions, which we believe are reasonable; however, they are not necessarily indicative of the consolidated results of operations had the acquisitions occurred at the beginning of the periods presented, or of future results of operations. The unaudited pro forma results are as follows (in thousands): Three Months Ended 2019 2018 Revenue $ 57,126 $ 43,058 Net income (loss) $ (546 ) $ 4,798 Net income (loss) per common share: Basic $ (0.02 ) $ 0.14 Diluted $ (0.02 ) $ 0.14

Investment Securities and Fair

Investment Securities and Fair Value Measurements	3 Months Ended
	Mar. 31, 2019
Fair Value Disclosures [Abstract]
Investment Securities and Fair Value Measurements	Investment Securities and Fair Value Measurements Investment Securities Investment securities classified as available-for-sale consisted of the following at March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Corporate bonds $ 19,711 $ 19 $ (66 ) $ 19,664 Agency securities 4,350 8 (10 ) 4,348 Total available-for-sale investment securities $ 24,061 $ 27 $ (76 ) $ 24,012 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Corporate bonds $ 23,720 $ — $ (163 ) $ 23,557 Agency securities 4,345 4 (19 ) 4,330 Total available-for-sale investment securities $ 28,065 $ 4 $ (182 ) $ 27,887 At March 31, 2019 , the unrealized losses on investment securities which have been in a net loss position for 12 months or greater were not material. These unrealized losses are considered temporary and there were no impairments considered to be "other-than-temporary" based on our evaluation of available evidence, which includes our intent to hold these investments to maturity or until a recovery of the cost basis. At March 31, 2019 and December 31, 2018 , the contractual maturities of our investments did not exceed 36 months . The fair values of available-for-sale investment securities, by remaining contractual maturity, are as follows (in thousands): March 31, 2019 December 31, 2018 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due in one year or less $ 17,761 $ 17,712 $ 16,738 $ 16,631 Due after one year through three years 6,300 6,300 11,327 11,256 Total available-for-sale investment securities $ 24,061 $ 24,012 $ 28,065 $ 27,887 During the three months ended March 31, 2019 and 2018 , we had sales and maturities (which include calls) of investment securities, as follows (in thousands): Three Months Ended March 31, 2019 Gross Realized Gains Gross Realized Losses Gross Proceeds from Sales Gross Proceeds from Maturities Corporate bonds $ — $ (1 ) $ 1,750 $ 2,250 Three Months Ended March 31, 2018 Gross Realized Gains Gross Realized Losses Gross Proceeds from Sales Gross Proceeds from Maturities Corporate bonds $ — $ — $ — $ 6,300 Agency securities — — — 1,000 Certificates of deposit — — — 996 Treasury securities — — 5 — $ — $ — $ 5 $ 8,296 Interest income, net of the amortization and accretion of the premium and discount was $0.2 million for the three months ended March 31, 2019 and 2018 . Fair Value Measurements Recurring Fair Value Measurements Financial assets and financial liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following tables summarize our financial assets measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2018 by level within the fair value hierarchy (in thousands): March 31, 2019 Level 1 Level 2 Level 3 Total Fair Cash equivalents: Money market funds $ 2,617 $ — $ — $ 2,617 Available-for-sale investment securities: Corporate bonds — 19,664 — 19,664 Agency securities — 4,348 — 4,348 Total $ 2,617 $ 24,012 $ — $ 26,629 December 31, 2018 Level 1 Level 2 Level 3 Total Fair Cash equivalents: Money market funds $ 10,694 $ — $ — $ 10,694 Available-for-sale investment securities: Corporate bonds — 23,557 — 23,557 Agency securities — 4,330 — 4,330 Total $ 10,694 $ 27,887 $ — $ 38,581 The carrying amounts of cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities approximate fair value because of the short maturity of these items. The estimated fair value of the Term Loan approximates its carrying value due to the variable interest rates. We consider the fair value of the Term Loan to be a Level 2 measurement as the Term Loan is not actively traded. We carry the Term Loan at face value less the unamortized discount on our Consolidated Balance Sheets. Refer to Note 8, Long-term Debt of our Condensed Consolidated Financial Statements for more information about the Term Loan. There were no changes to our valuation techniques used to measure financial asset and financial liability fair values on a recurring basis during the three months ended March 31, 2019 . The valuation techniques for the financial assets in the tables above are as follows: Cash Equivalents As of March 31, 2019 and December 31, 2018 , cash equivalents include cash invested in money market funds. Fair value is based on market prices for identical assets. Available-for-Sale Investment Securities Our Level 2 securities were priced by a pricing vendor. The pricing vendor utilizes the most recent observable market information in pricing these securities or, if specific prices are not available for these securities, use of other observable inputs like market transactions involving comparable securities. The fair value of our certificates of deposit is based on market prices for identical assets. Non-Recurring Fair Value Measurements Certain assets, including goodwill, intangible assets and our note receivable with SecureDocs, are also subject to measurement at fair value on a non-recurring basis using Level 3 measurement, but only when they are deemed to be impaired as a result of an impairment review. For the three months ended March 31, 2019 and 2018 , no impairments were identified on those assets required to be measured at fair value on a non-recurring basis.

Internal-Use Software Developme

Internal-Use Software Development Costs	3 Months Ended
	Mar. 31, 2019
Research and Development [Abstract]
Internal-Use Software Development Costs	Internal-Use Software Development Costs Internal-use software development costs as of March 31, 2019 and December 31, 2018 were as follows (in thousands): March 31, December 31, Internal use software development costs, gross $ 63,189 $ 58,237 Less: Accumulated amortization (40,793 ) (37,752 ) Internal use software development costs, net $ 22,396 $ 20,485 Capitalized software development costs for the three months ended March 31, 2019 and 2018 were $5.0 million and $3.0 million , respectively. Amortization expense with respect to software development costs totaled $3.0 million and $2.6 million for the three months ended March 31, 2019 and 2018 , respectively. Future amortization expense with respect to capitalized software development costs as of March 31, 2019 is estimated as follows (in thousands): Years Ending December 31, 2019 $ 8,847 2020 8,498 2021 4,603 2022 448 Total amortization expense $ 22,396

Intangible Assets and Goodwill

Intangible Assets and Goodwill	3 Months Ended
	Mar. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets and Goodwill	Intangible Assets and Goodwill Intangible assets consisted of the following as of March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 Gross Carrying Accumulated Net Carrying Weighted Customer relationships $ 3,070 $ (870 ) $ 2,200 5.0 Database 8,330 (329 ) 8,001 10.0 Technology 12,261 (5,006 ) 7,255 5.0 Trademarks and trade names 2,690 (706 ) 1,984 10.0 Partner relationships 680 (680 ) — 3.0 Non-compete agreements 7,440 (414 ) 7,026 5.0 Domain names 273 (273 ) — 5.0 Patents 285 (240 ) 45 5.0 Backlog 240 (107 ) 133 1.0 $ 35,269 $ (8,625 ) $ 26,644 6.4 December 31, 2018 Gross Carrying Accumulated Net Carrying Weighted Average Useful Life in Years Customer relationships $ 1,960 $ (728 ) $ 1,232 5.0 Database 3,620 (121 ) 3,499 10.0 Technology 4,811 (4,506 ) 305 8.0 Trademarks & trade names 1,300 (642 ) 658 9.0 Partner relationships 680 (680 ) — 3.0 Non-compete agreements 100 (44 ) 56 4.0 Domain names 273 (273 ) — 5.0 Patents 285 (233 ) 52 5.0 Backlog 140 (47 ) 93 1.0 $ 13,169 $ (7,274 ) $ 5,895 7.0 Amortization expense with respect to intangible assets for the three months ended March 31, 2019 and 2018 was $1.4 million and $0.3 million , respectively. Future amortization expense with respect to intangible assets as of March 31, 2019 is estimated as follows (in thousands): Years Ending December 31, 2019 $ 4,003 2020 5,066 2021 4,931 2022 4,869 2023 2,863 Thereafter 4,912 Total amortization expense $ 26,644 Our goodwill balance is solely attributable to acquisitions. There have been no impairment charges recorded against goodwill. Goodwill recorded during the three months ended March 31, 2019 related to the acquisition of Dynasty was allocated to our one operating segment. The change in the carrying amount of goodwill is as follows (in thousands): Goodwill at December 31, 2018 $ 15,548 Goodwill from acquisition of Dynasty 41,948 Goodwill at March 31, 2019 $ 57,496

Leases

Leases	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Leases	Leases We have operating leases for our corporate offices and data centers. Our leases have remaining lease terms ranging from one to nine years, with various term extensions available. Our lease agreements do not contain any residual value guarantees or material restrictive covenants. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. The total lease cost associated with our operating leases for the three months ended March 31, 2019 was $1.2 million . Lease-related assets and liabilities were as follows at March 31, 2019 (in thousands): Assets Operating lease right-of-use assets $ 16,004 Liabilities Other current liabilities $ 4,013 Operating lease liabilities 19,064 Total lease liabilities $ 23,077 Weighted-average remaining lease term (years) 6.6 Weighted-average discount rate 4.1 % Supplemental cash flow information related to leases was as follows for the three months ended March 31, 2019 (in thousands): Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 970 Future minimum lease payments under non-cancellable leases as of March 31, 2019 were as follows (in thousands): Years ending December 31, 2019 $ 3,677 2020 5,171 2021 4,048 2022 2,717 2023 2,053 Thereafter 9,128 Total future minimum lease payments 26,794 Less: imputed interest (3,717 ) Total $ 23,077 A summary of our future minimum payments for obligations under non-cancellable operating leases as of December 31, 2018 was as follows (in thousands): Years Ending December 31, 2019 $ 4,211 2020 4,889 2021 4,038 2022 2,717 2023 2,053 Thereafter 9,128 Total lease commitments $ 27,036 At March 31, 2019 we have additional leases that have not yet commenced with a total commitment of $0.7 million . These leases will commence in 2019 with lease terms of two to three years. On January 22, 2019, we signed a new sublease for approximately 10,500 square feet of office space located at 130 Castilian Drive, Santa Barbara, California. The sublease is for 32 months commencing on April 1, 2019 and ending on February 28, 2021. The total commitment under this sublease is $0.45 million . On January 28, 2019, we signed an amendment to our existing lease at 9201 Spectrum Center Boulevard in San Diego, California which increased the square footage leased by approximately 4,500 square feet. The total commitment under this lease extension is $0.7 million . All other terms and conditions from the original lease remain the same. On April 1, 2019, we signed a new lease with Rose Studios, LLC to lease approximately 5,000 square feet of office space located at 215-221 Rose Avenue, Venice, California. The lease is for a five -year term commencing August 1, 2019 and ending on July 31, 2024. The total commitment under this lease is $2.0 million .

Long-Term Debt

Long-Term Debt	3 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt The following is a summary of our long-term debt at March 31, 2019 (in thousands): Principal amounts due under term loan $ 49,688 Less: Debt financing costs (185 ) Long-term debt, net of unamortized debt financing costs 49,503 Less: Current portion of long-term debt (1,213 ) Total long-term debt, net of current portion $ 48,290 Scheduled principal payments for the Term Loan at March 31, 2019 are as follows (in thousands): Years Ending December 31, 2019 $ 938 2020 1,250 2021 2,500 2022 2,500 2023 42,500 Total principal payments $ 49,688 Credit Agreement On December 24, 2018, we amended our credit agreement (Amendment Number Two to the Credit Agreement, or "Second Amendment") with Wells Fargo Bank, National Association ("Wells Fargo"), as administrative agent, and the lenders that are parties thereto (as amended, the "Credit Agreement"). Under the terms of the Second Amendment, the lenders made available to us a $50.0 million term loan (the "Term Loan") and increased the existing revolving line of credit from $25.0 million to $50.0 million ("Revolving Credit Agreement"). The maturity date of the Term Loan and Revolving Facility is December 24, 2023. In addition, the Second Amendment permits us to make certain restricted junior payments, including without limitation stock repurchases and enter into acquisitions in which we are the purchaser ("Acquisitions"), with no dollar cap on such Acquisitions, so long as we maintain certain specified liquidity requirements and leverage ratios. The Second Amendment also modifies certain financial covenants by, among other things, requiring us to maintain (i) an EBITDA to interest expense ratio of not less than 3.0 to 1.0, and (ii) a funded indebtedness to EBITDA ratio of not more than 3.5 :1.0 (the "Required Leverage Ratio") (decreasing by 0.25 per year until the Required Leverage Ratio is 2.5 to 1.0); provided, however, that we are not required to maintain the foregoing ratios if our liquidity (sum of remaining borrowing capacity and available cash) has equaled or exceeded the greater of $20.0 million and 20% of the sum of the outstanding principal amount of the Term Loan and commitments under the Revolving Facility. If we enter into an Acquisition with a purchase price greater than or equal to $20.0 million , then the Required Leverage Ratio will be increased by 0.5 for the 12-month period immediately following the consummation of such Acquisition. The Credit Agreement contains customary affirmative, negative and financial covenants. The affirmative covenants require us to, among other things, disclose financial and other information to the lenders, maintain our business and properties, and maintain adequate insurance. The negative covenants restrict us from, among other things, incurring additional indebtedness, prepaying certain types of indebtedness, encumbering or disposing of our assets, making fundamental changes to our corporate structure, and making certain dividends and distributions. At March 31, 2019 , we were in compliance with the financial covenants under the Credit Agreement. Under the terms of the Second Amendment, borrowings under the Credit Agreement bear interest at a fluctuating rate per annum equal to, at our option, (i) the adjusted London Interbank Offered Rate ("LIBOR") or (ii) an alternate base rate, in each case plus the applicable interest rate margin. The interest rate will fluctuate between adjusted LIBOR plus 1.5% per annum and adjusted LIBOR plus 2.0% per annum (or between the alternate base rate plus 0.5% per annum and the alternate base rate plus 1.0% per annum), based upon our leverage ratio. The average interest rate during the three months ended March 31, 2019 was 4.4% . Fees payable on the unused portion of the Revolving Facility are 25 basis points per annum, unless the average usage of the Revolving Facility is equal to or less than $30.0 million for the applicable period, in which case the fees on the unused portion of the Revolving Facility are 0.375% per annum. At March 31, 2019 and December 31, 2018 , there was no outstanding balance under the Revolving Facility. Debt Financing Costs As a result of the Second Amendment, we incurred $0.4 million in financing fees that were capitalized and will be amortized over the remaining life of the related debt, $0.2 million of which was related to the Term Loan and $0.2 million of which was related to the Revolving Facility. The Second Amendment is accounted for as a debt modification, and as a result, the unamortized deferred debt financing costs related to the Revolving Facility prior to the Second Amendment were added to the $0.2 million of deferred debt financing costs related to the Second Amendment and are amortized over the remaining life of the Revolving Facility. Debt financing costs are deferred and amortized using the straight-line method, which approximates the effective interest method, for costs related to the Term Loan and the straight-line method for costs related to the Revolving Facility over the term of the debt arrangement; such amortization is included in interest expense in the Condensed Consolidated Statements of Operations. Amortization of deferred debt financing costs was $24,000 and $16,000 for the three months ended March 31, 2019 and 2018 , respectively. At March 31, 2019 and December 31, 2018 , the remaining unamortized deferred debt financing costs were $0.5 million , of which $0.2 million was offset against debt. At March 31, 2019 and December 31, 2018 , $0.3 million of the remaining unamortized deferred debt financing costs were recorded in Prepaid expenses and other current assets and Other assets on the Condensed Consolidated Balance Sheets, as they pertained to the Revolving Facility.

Commitment and Contingencies

Commitment and Contingencies	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Liability to Landlord Insurance We have a wholly owned subsidiary, Terra Mar Insurance Company, Inc., which was established to provide our customers with the option to purchase legal liability to landlord insurance. If our customers choose to use this insurance service, they are issued an insurance policy underwritten by our third-party service provider. The policy has a limit of $100,000 per incident for each insured residence. We have entered into a reinsurance agreement with our third-party service provider and, as a result, we assume a 100% quota share of the legal liability to landlord insurance provided to our customers through our third-party service provider. Included in cost of revenue we accrue for reported claims, and an estimate of losses incurred but not reported by our property manager customers, as we bear the risk related to all such claims. Our liability for reported claims and incurred but not reported claims as of March 31, 2019 and December 31, 2018 was $0.7 million and $0.6 million , respectively, and is included in Other current liabilities on the Condensed Consolidated Balance Sheets. Included in Prepaid expenses and o ther current assets as of March 31, 2019 and December 31, 2018 , are $1.7 million and $1.8 million , respectively, of deposits held with a third party related to requirements to maintain collateral for this insurance service. Litigation In December 2018, we received a Civil Investigative Demand ("CID") from the Federal Trade Commission ("FTC") requesting certain information relating to our compliance with the Fair Credit Reporting Act ("FCRA") in connection with our tenant screening Value+ service. We continue to fully cooperate with the FTC, and do not presently have sufficient information to predict the outcome of, or any potential costs or penalties associated with, the investigation. In September 2017, a putative federal class action styled Leo v. AppFolio, Inc. (Civ. No. 3:17-cv-05771; W.D. Wash.) was filed naming us as a defendant and alleging certain violations of the FCRA in connection with our tenant screening Value+ service (the "Leo Litigation"). The parties reached an agreement to settle the Leo Litigation on a class-wide basis in the fourth quarter of 2018. The court has approved the proposed settlement on a preliminary basis, and the parties continue to work through the class settlement process. We have not admitted and will not admit any liability whatsoever in connection with the claims and allegations in the Leo Litigation. The final settlement will be subject to court approval. From time to time, we are involved in various other legal proceedings arising from or related to claims incident to the ordinary course of our business activities, including without limitation actions involving intellectual property, employment and contractual matters. Although the results of such legal proceedings and claims cannot be predicted with certainty, we believe that we are not currently a party to any legal proceeding(s) which, if determined adversely to us, would, individually or taken together, have a material adverse effect on our business, operating results, financial condition or cash flows. Indemnification In the ordinary course of business, we may provide indemnification of varying scope and terms to customers, investors, directors and officers with respect to certain matters, including, but not limited to, losses arising out of our breach of any applicable agreements, services to be provided by us, or intellectual property infringement claims made by third parties. These indemnification provisions may survive termination of the underlying agreement and the maximum potential amount of future payments we could be required to make under these indemnification provisions may not be subject to maximum loss clauses and is indeterminable. We have never paid a material claim, nor have any legal claims been brought against us in connection with these indemnification arrangements. As of March 31, 2019 and December 31, 2018 , we had not accrued a liability for these indemnification arrangements because we determined that the likelihood of incurring any payment obligation, in connection with these indemnification arrangements is not probable or reasonably possible and the amount or range of amounts of any such liability is not reasonably estimable.

Share Repurchase Program

Share Repurchase Program	3 Months Ended
	Mar. 31, 2019
Equity [Abstract]
Share Repurchase Program	Share Repurchase Program On February 20, 2019, the Board of Directors authorized a $100.0 million Share Repurchase Program (the "Program") of our outstanding Class A Common Stock. Under the Program, share repurchases may be made from time to time as directed by a Committee consisting of three Directors, in open market purchases or privately negotiated transactions at a repurchase price that the members of the Committee unanimously believe is below intrinsic value conservatively determined. The Program does not obligate us to repurchase any specific dollar amount or number of shares, there is no expiration date to the Program, and it may be modified, suspended or terminated at any time and for any reason. We did not repurchase any Class A Common Stock under the Program during the three months ended March 31, 2019 .

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation Stock Options A summary of our stock option activity for the three months ended March 31, 2019 , is as follows (number of shares in thousands): Number of Shares Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Life in Years Options outstanding at December 31, 2018 1,513 $ 11.31 6.4 Options granted — — Options exercised (14 ) 6.35 Options cancelled/forfeited (50 ) 13.43 Options outstanding at March 31, 2019 1,449 $ 11.29 6.3 Included in the options outstanding as of March 31, 2019 are 172,000 PSOs granted in 2017. Vesting of these PSOs is based on the achievement of pre-established performance targets for the year ending December 31, 2019 and continued employment throughout the performance period. Of these PSOs, 132,000 shares vest based on the achievement of a pre-established free cash flow performance target for the year ending December 31, 2019, assuming achievement of the performance metric at the maximum level, which is 150% of the performance target, resulting in a maximum payout of 100% of the initial target award. The remaining 40,000 PSOs have a pre-established adjusted gross margin target for the year ending December 31, 2019. PSOs tied to the gross margin performance target have two levels of vesting, with 50% vesting based on the achievement of 110% of the targeted amount and the remaining 50% vesting based on the achievement of 115% of the targeted amount. During the three months ended March 31, 2019 , 200,000 PSOs vested based on the achievement of 120% of the pre-established free cash flow performance target for the year ended December 31, 2018. We recognize expense for the PSOs based on the grant date fair value of the PSOs that we determine are probable of vesting. Adjustments to compensation expense are made each period based on changes in our estimate of the number of PSOs that are probable of vesting. Our stock-based compensation expense for stock options, including the PSOs, for the three months ended March 31, 2019 and 2018 , was $0.2 million and $0.3 million , respectively. The fair value of stock options is estimated on their date of grant using the Black-Scholes option-pricing model. No stock options were granted during the three months ended March 31, 2019 or the three months ended March 31, 2018 . At March 31, 2019 , the total estimated remaining stock-based compensation expense for unvested stock options, including the PSOs, was $0.5 million , which is expected to be recognized over a weighted average period of 1.1 years . Restricted Stock Units A summary of activity in connection with our RSUs for the three months ended March 31, 2019 is as follows (number of shares in thousands): Number of Shares Weighted Average Grant Date Fair Value per Share Unvested at December 31, 2018 674 $ 32.61 Granted 109 71.40 Vested (93 ) 14.86 Forfeited (14 ) 33.89 Unvested at March 31, 2019 676 $ 41.26 During the three months ended March 31, 2019 , we granted a total of 109,000 RSUs and PSUs: 99,000 RSUs are subject to time-based vesting in equal annual installments over four years ; 4,000 PSUs vest based on the achievement of a pre-established consolidated net revenue growth target for the year ending December 31, 2021 and continued employment throughout the performance period; and 6,000 PSUs were granted and vested as a result of the achievement of a pre-established free cash flow performance target for the year ended December 31, 2018. The number of PSUs granted, as included in the above table, assumes achievement of the performance metric at 100% of the performance target. The actual number of shares to be issued at the end of the performance period will range from 0% to 100% of the initial target awards. Achievement of the performance target between 100% and 150% of the performance target will result in a performance based cash bonus payment between 100% and 165% of the initial target awards. During the three months ended March 31, 2019 , 29,000 of the PSUs vested and an additional 6,000 PSUs were granted and vested based on the achievement of 120% of the pre-established free cash flow performance target for the year ended December 31, 2018. Included in the unvested RSUs as of March 31, 2019 are 102,000 and 88,000 PSUs granted in 2018 and 2017, respectively. Of the PSUs granted in 2018, 54,000 vest based on the achievement of a pre-established consolidated net revenue growth target for the year ending December 31, 2020 and 48,000 vest based on the achievement of a pre-established consolidated net revenue growth target for the year ending December 31, 2021. Vesting of the PSUs granted in 2017 is based on the achievement of pre-established free cash flow performance targets for the year ending December 31, 2019, and continued employment throughout the performance period. The number of PSUs granted assumes achievement of the performance metric at 100% of the performance target. For the PSUs granted in 2018, the actual number of shares to be issued at the end of the performance period will range from 0% to 100% of the initial target awards. Achievement of the performance target between 100% and 150% of the performance target will result in a performance based cash bonus payment between 100% and 165% of the initial target awards. For the PSUs granted in 2017, the actual number of shares to be issued at the end of the performance period will range from 0% to 165% of the initial target award. We recognize expense for the PSUs based on the grant date fair value of the PSUs that we determine are probable of vesting. Adjustments to compensation expense are made each period based on changes in our estimate of the number of PSUs that are probable of vesting. Our stock-based compensation expense for the RSUs and PSUs for the three months ended March 31, 2019 and 2018 was $1.6 million and $1.1 million , respectively. As of March 31, 2019 , the total estimated remaining stock-based compensation expense for the RSUs and PSUs was $19.1 million , which is expected to be recognized over a weighted average period of 2.4 years . Restricted Stock Awards A summary of activity in connection with our restricted stock awards for the three months ended March 31, 2019 , is as follows (number of shares in thousands): Number of Weighted Average Unvested at December 31, 2018 6 $ 51.36 Granted — — Vested (1 ) 5.64 Forfeited — — Unvested at March 31, 2019 5 $ 61.05 We have the right to repurchase any unvested restricted stock awards subject to certain conditions. Restricted stock awards vest over a four -year period for employees and a one -year period for non-employee directors. We recognized stock-based compensation expense for restricted stock awards of $0.1 million for each of the three months ended March 31, 2019 and 2018 . As of March 31, 2019 , the total estimated remaining stock-based compensation expense for unvested restricted stock awards with a repurchasing right was $0.1 million which is expected to be recognized over a weighted average period of 0.2 years .

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes For the three months ended March 31, 2019 , we recorded an income tax benefit of $4.3 million . The tax benefit recorded and the difference between the US federal statutory rate of 21% and our tax rate is primarily due to changes in the deferred tax asset valuation allowance resulting from $4.1 million of deferred tax liabilities acquired through the Dynasty acquisition. The acquired deferred tax liabilities are expected to provide a source of income to support realizability of AppFolio's existing deferred tax assets. For the three months ended March 31, 2018 , we recorded income tax expense of $26,000 on pre-tax income of $4.3 million for an effective tax rate of 0.6% . The income tax expense was based on our payments of state minimum and franchise taxes, and the amortization of tax deductible goodwill that was not an available source of income to realize the deferred tax asset. We have recorded a full valuation allowance related to our NOLs, credit carryforwards, and other net deferred tax assets due to the uncertainty of the ultimate realization of the future benefits of those assets. To the extent we determine that all, or a portion of, our valuation allowance is no longer necessary, we will reverse the valuation allowance and recognize an income tax benefit in the reported financial statement earnings in that period. Once the valuation allowance is eliminated or reduced, its reversal will no longer be available to offset our current financial statement tax provision in future periods. We believe that there is a possibility that, within the next three to 12 months, sufficient positive evidence may become available to allow us to reach a conclusion that some or all of the valuation allowance will no longer be needed. Release of the valuation allowance would result in the recognition of certain net deferred tax assets and a decrease to income tax expense for the period the release is recorded. However, the timing and amount of the valuation allowance release are subject to change on the basis of the level of our profitability and other factors.

Revenue and Other Information

Revenue and Other Information	3 Months Ended
	Mar. 31, 2019
Segment Reporting [Abstract]
Revenue and Other Information	Revenue and Other Information The following table presents our revenue categories for the three months ended March 31, 2019 and 2018 (in thousands): Three Months Ended 2019 2018 Core solutions $ 20,822 $ 16,205 Value+ services 33,698 24,640 Other 2,571 1,495 Total revenue $ 57,091 $ 42,340 During the three months ended March 31, 2019 and 2018 , we recognized $1.7 million and $3.7 million of revenues, respectively, that were included in the deferred revenue balances at December 31, 2018 and 2017 , respectively. Our revenue is generated primarily from customers in the United States. All of our property and equipment is located in the United States.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2019
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On April 1, 2019, we entered into a new lease with Rose Studios, LLC to lease approximately 5,000 square feet of office space located at 215-221 Rose Avenue, Venice, California. The lease is for five years commencing August 1, 2019 and ending on July 31, 2024. The total commitment under this lease is $2.0 million .

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Basis of Presentation and Significant Accounting Policies	Basis of Presentation and Significant Accounting Policies The accompanying unaudited Condensed Consolidated Financial Statements were prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. Accordingly, these Condensed Consolidated Financial Statements should be read in conjunction with our audited consolidated financial statements and the related notes included in our Annual Report filed with the Securities and Exchange Commission ("SEC") on February 28, 2019. The year-end condensed balance sheet was derived from our audited consolidated financial statements. Our unaudited interim Condensed Consolidated Financial Statements include, in the opinion of management, all adjustments, consisting of normal and recurring items, necessary for the fair statement of the Condensed Consolidated Financial Statements.
Leases	Leases We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities, and operating lease liabilities on our Condensed Consolidated Balance Sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As none of our leases provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU assets also include any lease payments made and excludes lease incentives and initial direct costs incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. We have lease arrangements with lease and non-lease components, which are generally accounted for as a single lease component. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. On an ongoing basis, management evaluates its estimates based on historical data and experience, as well as various other factors that management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources.
Recent Accounting Pronouncements	Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, which requires an entity to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. ASU 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements ("ASU 2018-11"). Among other things, ASU 2018-11 provides administrative relief by allowing entities to implement the lease standard on a modified retrospective basis (the "Optional Transition Method"). Effectively, the Optional Transition Method permits us to adopt the lease standard through a cumulative effect adjustment to our opening balance sheet as of January 1, 2019, and report under the new lease standard on a post-adoption basis. We adopted ASU 2016-02 effective January 1, 2019 using the Optional Transition Method. We elected the package of practical expedients permitted under the transition guidance, which allows us to carry forward our historical lease classification, our assessment of whether a contract is or contains a lease, and our initial direct costs for any leases that existed prior to adoption of the lease new standard. We also elected to combine lease and non-lease components and to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the Consolidated Statements of Operations on a straight-line basis over the lease term. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. We updated our accounting policies, processes, internal controls and information systems that were required to meet the new lease standard's reporting and disclosure requirements. The adoption of ASU 2016-02 had a material impact on our Condensed Consolidated Balance Sheets, but did not have an impact on our Condensed Consolidated Statements of Operations or our Condensed Consolidated Statements of Cash Flows. The most significant impact was the recognition of ROU assets and lease liabilities for operating leases. We also reclassified prepaid and deferred rent to the ROU asset balance as of January 1, 2019. The cumulative effect of the changes made to our Condensed Consolidated Balance Sheet at January 1, 2019 for the adoption of the new lease standard was as follows (in thousands): Balance at Adjustments Balance at Assets Prepaid expenses and other current assets $ 11,775 $ (317 ) $ 11,458 Operating lease right-of-use assets — 16,945 16,945 Liabilities and Stockholders’ Equity Other current liabilities $ 1,447 $ 3,493 $ 4,940 Operating lease liabilities — 20,056 20,056 Other long-term liabilities 7,080 (6,921 ) 159 In March 2017, the FASB issued ASU No. 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities (“ASU 2017-08”). ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium. Specifically, ASU 2017-08 requires the premium to be amortized to the earliest call date. ASU 2017-08 does not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amendments should be applied on a modified retrospective basis, with a cumulative-effect adjustment made directly to retained earnings at the beginning of the period of adoption. The adoption of this guidance did not have a material impact on our financial condition, results of operations, cash flows or disclosures. In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting ("ASU 2018-07"). This amendment expands the scope of Topic 718, Compensation—Stock Compensation (which only included share-based payments to employees) to include share-based payments issued to nonemployees for goods or services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. The adoption of this guidance did not have a material impact on our financial condition, results of operations, cash flows or disclosures. Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"), which amends the current accounting guidance and requires the measurement of all expected losses based on historical experience, current conditions and reasonable and supportable forecasts. This guidance amends the accounting for credit losses for available-for-sale investment securities and purchased financial assets with credit deterioration. ASU 2016-13 is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Early adoption is permitted for any interim or annual period after December 15, 2018. We are currently evaluating the effect of the adoption of ASU 2016-13 on our Consolidated Financial Statements. The effect will largely depend on the composition and credit quality of our investment portfolio and the economic conditions at the time of adoption. In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, a series of amendments which align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by these amendments. For public business entities, the amendments are effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2019. We have not yet determined the effect of this guidance on our financial condition, results of operations, cash flows or disclosures.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Schedule of Weighted Average Number of Shares	The following table presents a reconciliation of our weighted average number of shares of our Class A and Class B common stock used to compute net income per common share (in thousands): Three Months Ended 2019 2018 Weighted average common shares outstanding 33,918 34,085 Less: Weighted average unvested restricted shares subject to repurchase 5 15 Weighted average common shares outstanding; basic 33,913 34,070 Plus: Weighted average options, restricted stock units and restricted shares used to compute diluted net income per common share 1,429 1,230 Weighted average common shares outstanding; diluted 35,342 35,300
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following table presents the number of anti-dilutive common shares excluded from the calculation of weighted average number of shares used to compute diluted net income per common share for the three months ended March 31, 2019 and 2018 (in thousands): Three Months Ended 2019 2018 Unvested restricted stock units 24 16 Contingent restricted stock units (1) — 6 Total shares excluded from diluted net income per common share 24 22 (1) The reported shares are based on fixed price restricted stock unit (“RSU”) commitments for which the number of shares was not determined at the grant date. For the purposes of this table, the number of shares has been determined by dividing the fixed price commitment to issue shares in the future by the closing price of our common stock as of the applicable reporting period date.
Schedule of Impact of Adoption of New Revenue Standard Impact on Financial Statements	The cumulative effect of the changes made to our Condensed Consolidated Balance Sheet at January 1, 2019 for the adoption of the new lease standard was as follows (in thousands): Balance at Adjustments Balance at Assets Prepaid expenses and other current assets $ 11,775 $ (317 ) $ 11,458 Operating lease right-of-use assets — 16,945 16,945 Liabilities and Stockholders’ Equity Other current liabilities $ 1,447 $ 3,493 $ 4,940 Operating lease liabilities — 20,056 20,056 Other long-term liabilities 7,080 (6,921 ) 159

Business Combinations (Tables)

Business Combinations (Tables)	3 Months Ended
	Mar. 31, 2019
Business Combinations [Abstract]
Schedule of Purchase Price Allocation	The following table summarizes the final purchase price allocation (in thousands) as well as the estimated useful lives of the acquired intangible assets over which they are amortized on a straight-line basis, as this approximates the pattern in which economic benefits are consumed: Amount Estimated Useful Life (in years) Net tangible assets $ 270 Identified intangible assets: Customer relationships 1,170 5.0 Database 3,620 10.0 Trademark and trade name 370 10.0 Non-compete agreement 60 5.0 Backlog 140 1.0 Total intangible assets subject to amortization 5,360 8.6 Goodwill 8,811 Indefinite Purchase consideration, paid in cash $ 14,441 The following table summarizes the preliminary purchase price allocation (in thousands) as well as the estimated useful lives of the acquired intangible assets over which they are amortized on a straight-line basis, as this approximates the pattern in which economic benefits are consumed: Amount Estimated Useful Life (in years) Total current assets $ 305 Identified intangible assets: Technology 7,450 4.0 Database 4,710 10.0 Customer relationships 1,110 5.0 Backlog 100 1.0 Trademark & trade name 1,390 10.0 Non-compete agreement 7,340 5.0 Total intangible assets subject to amortization 22,100 6.0 Goodwill 41,948 Indefinite Other noncurrent assets 35 Total assets acquired 64,388 Accrued and other liabilities 48 Deferred tax liability, net 4,109 Total liabilities assumed 4,157 Purchase consideration $ 60,231
Schedule of Pro Forma Information	The unaudited pro forma results are as follows (in thousands): Three Months Ended 2019 2018 Revenue $ 57,126 $ 43,058 Net income (loss) $ (546 ) $ 4,798 Net income (loss) per common share: Basic $ (0.02 ) $ 0.14 Diluted $ (0.02 ) $ 0.14

Investment Securities and Fai_2

Investment Securities and Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2019
Fair Value Disclosures [Abstract]
Schedule of Available-for-sale Securities	Investment securities classified as available-for-sale consisted of the following at March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Corporate bonds $ 19,711 $ 19 $ (66 ) $ 19,664 Agency securities 4,350 8 (10 ) 4,348 Total available-for-sale investment securities $ 24,061 $ 27 $ (76 ) $ 24,012 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Corporate bonds $ 23,720 $ — $ (163 ) $ 23,557 Agency securities 4,345 4 (19 ) 4,330 Total available-for-sale investment securities $ 28,065 $ 4 $ (182 ) $ 27,887
Available-for-sale Investments, by Remaining Contract Maturity	The fair values of available-for-sale investment securities, by remaining contractual maturity, are as follows (in thousands): March 31, 2019 December 31, 2018 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due in one year or less $ 17,761 $ 17,712 $ 16,738 $ 16,631 Due after one year through three years 6,300 6,300 11,327 11,256 Total available-for-sale investment securities $ 24,061 $ 24,012 $ 28,065 $ 27,887
Schedule of Sales, Calls, and Maturities	During the three months ended March 31, 2019 and 2018 , we had sales and maturities (which include calls) of investment securities, as follows (in thousands): Three Months Ended March 31, 2019 Gross Realized Gains Gross Realized Losses Gross Proceeds from Sales Gross Proceeds from Maturities Corporate bonds $ — $ (1 ) $ 1,750 $ 2,250 Three Months Ended March 31, 2018 Gross Realized Gains Gross Realized Losses Gross Proceeds from Sales Gross Proceeds from Maturities Corporate bonds $ — $ — $ — $ 6,300 Agency securities — — — 1,000 Certificates of deposit — — — 996 Treasury securities — — 5 — $ — $ — $ 5 $ 8,296
Fair Value, Assets Measured on Recurring Basis	The following tables summarize our financial assets measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2018 by level within the fair value hierarchy (in thousands): March 31, 2019 Level 1 Level 2 Level 3 Total Fair Cash equivalents: Money market funds $ 2,617 $ — $ — $ 2,617 Available-for-sale investment securities: Corporate bonds — 19,664 — 19,664 Agency securities — 4,348 — 4,348 Total $ 2,617 $ 24,012 $ — $ 26,629 December 31, 2018 Level 1 Level 2 Level 3 Total Fair Cash equivalents: Money market funds $ 10,694 $ — $ — $ 10,694 Available-for-sale investment securities: Corporate bonds — 23,557 — 23,557 Agency securities — 4,330 — 4,330 Total $ 10,694 $ 27,887 $ — $ 38,581

Internal-Use Software Develop_2

Internal-Use Software Development Costs (Tables)	3 Months Ended
	Mar. 31, 2019
Research and Development [Abstract]
Schedule of Capitalized Computer Software	Internal-use software development costs as of March 31, 2019 and December 31, 2018 were as follows (in thousands): March 31, December 31, Internal use software development costs, gross $ 63,189 $ 58,237 Less: Accumulated amortization (40,793 ) (37,752 ) Internal use software development costs, net $ 22,396 $ 20,485
Schedule of Capitalized Computer Software Future Amortization Expense	Future amortization expense with respect to capitalized software development costs as of March 31, 2019 is estimated as follows (in thousands): Years Ending December 31, 2019 $ 8,847 2020 8,498 2021 4,603 2022 448 Total amortization expense $ 22,396

Intangible Assets and Goodwill

Intangible Assets and Goodwill (Tables)	3 Months Ended
	Mar. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets	Intangible assets consisted of the following as of March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 Gross Carrying Accumulated Net Carrying Weighted Customer relationships $ 3,070 $ (870 ) $ 2,200 5.0 Database 8,330 (329 ) 8,001 10.0 Technology 12,261 (5,006 ) 7,255 5.0 Trademarks and trade names 2,690 (706 ) 1,984 10.0 Partner relationships 680 (680 ) — 3.0 Non-compete agreements 7,440 (414 ) 7,026 5.0 Domain names 273 (273 ) — 5.0 Patents 285 (240 ) 45 5.0 Backlog 240 (107 ) 133 1.0 $ 35,269 $ (8,625 ) $ 26,644 6.4 December 31, 2018 Gross Carrying Accumulated Net Carrying Weighted Average Useful Life in Years Customer relationships $ 1,960 $ (728 ) $ 1,232 5.0 Database 3,620 (121 ) 3,499 10.0 Technology 4,811 (4,506 ) 305 8.0 Trademarks & trade names 1,300 (642 ) 658 9.0 Partner relationships 680 (680 ) — 3.0 Non-compete agreements 100 (44 ) 56 4.0 Domain names 273 (273 ) — 5.0 Patents 285 (233 ) 52 5.0 Backlog 140 (47 ) 93 1.0 $ 13,169 $ (7,274 ) $ 5,895 7.0
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	Future amortization expense with respect to intangible assets as of March 31, 2019 is estimated as follows (in thousands): Years Ending December 31, 2019 $ 4,003 2020 5,066 2021 4,931 2022 4,869 2023 2,863 Thereafter 4,912 Total amortization expense $ 26,644
Schedule of Goodwill	The change in the carrying amount of goodwill is as follows (in thousands): Goodwill at December 31, 2018 $ 15,548 Goodwill from acquisition of Dynasty 41,948 Goodwill at March 31, 2019 $ 57,496

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Schedule of Components of Lease Expense	Lease-related assets and liabilities were as follows at March 31, 2019 (in thousands): Assets Operating lease right-of-use assets $ 16,004 Liabilities Other current liabilities $ 4,013 Operating lease liabilities 19,064 Total lease liabilities $ 23,077 Weighted-average remaining lease term (years) 6.6 Weighted-average discount rate 4.1 % Supplemental cash flow information related to leases was as follows for the three months ended March 31, 2019 (in thousands): Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 970
Schedule of Minimum Lease Payments Under Leases	Future minimum lease payments under non-cancellable leases as of March 31, 2019 were as follows (in thousands): Years ending December 31, 2019 $ 3,677 2020 5,171 2021 4,048 2022 2,717 2023 2,053 Thereafter 9,128 Total future minimum lease payments 26,794 Less: imputed interest (3,717 ) Total $ 23,077
Summary of Future Minimum Payments for Obligations	A summary of our future minimum payments for obligations under non-cancellable operating leases as of December 31, 2018 was as follows (in thousands): Years Ending December 31, 2019 $ 4,211 2020 4,889 2021 4,038 2022 2,717 2023 2,053 Thereafter 9,128 Total lease commitments $ 27,036

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
Summary of Long-term Debt	The following is a summary of our long-term debt at March 31, 2019 (in thousands): Principal amounts due under term loan $ 49,688 Less: Debt financing costs (185 ) Long-term debt, net of unamortized debt financing costs 49,503 Less: Current portion of long-term debt (1,213 ) Total long-term debt, net of current portion $ 48,290
Schedule of Principal payments for Term Loan	Scheduled principal payments for the Term Loan at March 31, 2019 are as follows (in thousands): Years Ending December 31, 2019 $ 938 2020 1,250 2021 2,500 2022 2,500 2023 42,500 Total principal payments $ 49,688

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Stock Option Activity	A summary of our stock option activity for the three months ended March 31, 2019 , is as follows (number of shares in thousands): Number of Shares Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Life in Years Options outstanding at December 31, 2018 1,513 $ 11.31 6.4 Options granted — — Options exercised (14 ) 6.35 Options cancelled/forfeited (50 ) 13.43 Options outstanding at March 31, 2019 1,449 $ 11.29 6.3
Schedule of Restricted Stock Units Activity	A summary of activity in connection with our RSUs for the three months ended March 31, 2019 is as follows (number of shares in thousands): Number of Shares Weighted Average Grant Date Fair Value per Share Unvested at December 31, 2018 674 $ 32.61 Granted 109 71.40 Vested (93 ) 14.86 Forfeited (14 ) 33.89 Unvested at March 31, 2019 676 $ 41.26
Schedule of Restricted Stock Awards Activity	A summary of activity in connection with our restricted stock awards for the three months ended March 31, 2019 , is as follows (number of shares in thousands): Number of Weighted Average Unvested at December 31, 2018 6 $ 51.36 Granted — — Vested (1 ) 5.64 Forfeited — — Unvested at March 31, 2019 5 $ 61.05

Revenue and Other Information (

Revenue and Other Information (Tables)	3 Months Ended
	Mar. 31, 2019
Segment Reporting [Abstract]
Schedule of Product Information by Revenue Categories	The following table presents our revenue categories for the three months ended March 31, 2019 and 2018 (in thousands): Three Months Ended 2019 2018 Core solutions $ 20,822 $ 16,205 Value+ services 33,698 24,640 Other 2,571 1,495 Total revenue $ 57,091 $ 42,340

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Net Income per Share Schedule of Weighted Average Number of Shares (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average common shares outstanding (in shares)	33,918	34,085
Less: Weighted average unvested restricted shares subject to repurchase (in shares)	5	15
Weighted average common shares outstanding; basic (in shares)	33,913	34,070
Plus: Weighted average options, restricted stock units and restricted shares used to compute diluted net income per common share (in shares)	1,429	1,230
Weighted average common shares outstanding; diluted (in shares)	35,342	35,300
Shares excluded from net loss per share attributable to common stockholders (in shares)	24	22
PSUs and PSOs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from net loss per share attributable to common stockholders (in shares)	362	607

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Net (Income) Loss Schedule of Antidilutive Securities (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from net income (loss) per common share (in shares)	24	22
Unvested restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from net income (loss) per common share (in shares)	24	16
Contingent restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from net income (loss) per common share (in shares)	0	6

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Impact of Adoption of New Revenue Standard on the Condensed Consolidated Balance Sheet and Statement of Operations (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Assets
Prepaid expenses and other current assets	$ 15,086	$ 11,458	$ 11,775
Operating lease right-of-use assets	16,004	16,945
Liabilities and Stockholders’ Equity
Other current liabilities	11,099	4,940	1,447
Operating lease liabilities	23,077	20,056	0
Other long-term liabilities	$ 14	159	$ 7,080
ASU 2016-02
Assets
Prepaid expenses and other current assets		(317)
Operating lease right-of-use assets		16,945
Liabilities and Stockholders’ Equity
Other current liabilities		3,493
Operating lease liabilities		20,056
Other long-term liabilities		$ (6,921)

Business Combinations (Details)

Business Combinations (Details) - USD ($) $ in Thousands	Jan. 07, 2019	Aug. 31, 2018	Mar. 31, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Goodwill			$ 57,496	$ 15,548
Dynasty Marketplace, Inc.
Business Acquisition [Line Items]
Consideration total, gross	$ 60,200
Escrow consideration	6,000
Net tangible assets	305
Identified intangible assets	22,100
Goodwill	41,948
Other noncurrent assets	35
Purchase consideration, paid in cash	$ 64,388
Estimated Useful Life (in years)	6 years 7 days
Accrued and other liabilities	$ 48
Deferred tax liability, net	4,109
Total liabilities assumed	4,157
Purchase consideration	60,231
Acquisition related expenses	291
Revenue from acquiree			500
Net income (loss) from acquiree			1,900
Dynasty Marketplace, Inc. | Technology
Business Acquisition [Line Items]
Identified intangible assets	$ 7,450
Estimated Useful Life (in years)	4 years
Dynasty Marketplace, Inc. | Customer relationships
Business Acquisition [Line Items]
Identified intangible assets	$ 1,110
Estimated Useful Life (in years)	5 years
Dynasty Marketplace, Inc. | Database
Business Acquisition [Line Items]
Identified intangible assets	$ 4,710
Estimated Useful Life (in years)	10 years
Dynasty Marketplace, Inc. | Trademark and trade name
Business Acquisition [Line Items]
Identified intangible assets	$ 1,390
Estimated Useful Life (in years)	10 years
Dynasty Marketplace, Inc. | Non-compete agreements
Business Acquisition [Line Items]
Identified intangible assets	$ 7,340
Estimated Useful Life (in years)	5 years
Dynasty Marketplace, Inc. | Backlog
Business Acquisition [Line Items]
Identified intangible assets	$ 100
Estimated Useful Life (in years)	1 year
WegoWise, Inc.
Business Acquisition [Line Items]
Consideration total, gross		$ 14,400
Escrow consideration		2,000
Net tangible assets		270
Identified intangible assets		5,360
Goodwill		$ 8,811
Estimated Useful Life (in years)		8 years 7 months 10 days
Purchase consideration		$ 14,441
Acquisition related expenses			$ 240
WegoWise, Inc. | Customer relationships
Business Acquisition [Line Items]
Identified intangible assets		$ 1,170
Estimated Useful Life (in years)		5 years
WegoWise, Inc. | Database
Business Acquisition [Line Items]
Identified intangible assets		$ 3,620
Estimated Useful Life (in years)		10 years
WegoWise, Inc. | Trademark and trade name
Business Acquisition [Line Items]
Identified intangible assets		$ 370
Estimated Useful Life (in years)		10 years
WegoWise, Inc. | Non-compete agreements
Business Acquisition [Line Items]
Identified intangible assets		$ 60
Estimated Useful Life (in years)		5 years
WegoWise, Inc. | Backlog
Business Acquisition [Line Items]
Identified intangible assets		$ 140
Estimated Useful Life (in years)		1 year

Business Combinations - Pro For

Business Combinations - Pro Forma Information (Details) - WegoWise, Inc. - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Business Acquisition [Line Items]
Revenue	$ 57,126	$ 43,058
Net income (loss)	$ (546)	$ 4,798
Net income (loss) per common share:
Basic (in dollars per share)	$ (0.02)	$ 0.14
Diluted (in dollars per share)	$ (0.02)	$ 0.14

Investment Securities and Fai_3

Investment Securities and Fair Value Measurements - Investment Securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Available-for-sale Securities, Amortized Cost Basis [Abstract] (Deprecated 2018-01-31)
Total available-for-sale investment securities	$ 24,061		$ 28,065
Gross Unrealized Gains	27		4
Gross Unrealized Losses	(76)		(182)
Estimated Fair Value	$ 24,012		27,887
Maximum contractual maturity period	36 months	36 months
Corporate bonds
Available-for-sale Securities, Amortized Cost Basis [Abstract] (Deprecated 2018-01-31)
Total available-for-sale investment securities	$ 19,711		23,720
Gross Unrealized Gains	19		0
Gross Unrealized Losses	(66)		(163)
Estimated Fair Value	19,664		23,557
Agency securities
Available-for-sale Securities, Amortized Cost Basis [Abstract] (Deprecated 2018-01-31)
Total available-for-sale investment securities	4,350		4,345
Gross Unrealized Gains	8		4
Gross Unrealized Losses	(10)		(19)
Estimated Fair Value	$ 4,348		$ 4,330

Investment Securities and Fai_4

Investment Securities and Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Amortized Cost
Due in 1 year or less	$ 17,761	$ 16,738
Due after 1 year through 3 years	6,300	11,327
Total available-for-sale investment securities	24,061	28,065
Estimated Fair Value
Due in one year or less	17,712	16,631
Due after one year through three years	6,300	11,256
Total available-for-sale investment securities	$ 24,012	$ 27,887

Investment Securities and Fai_5

Investment Securities and Fair Value Measurements - Sales, Calls and Maturities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Gross Realized Gains		$ 0
Gross Realized Losses		0
Gross Proceeds from Sales	$ 1,750	5
Gross Proceeds from Maturities	2,250	8,296
Accretion (amortization) of discounts and premiums	200	200
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Gross Realized Gains	0	0
Gross Realized Losses	(1)	0
Gross Proceeds from Sales	1,750	0
Gross Proceeds from Maturities	$ 2,250	1,000
Agency securities
Debt Securities, Available-for-sale [Line Items]
Gross Realized Gains		0
Gross Realized Losses		0
Gross Proceeds from Sales		0
Gross Proceeds from Maturities		6,300
Certificates of deposit
Debt Securities, Available-for-sale [Line Items]
Gross Realized Gains		0
Gross Realized Losses		0
Gross Proceeds from Sales		0
Gross Proceeds from Maturities		996
Treasury securities
Debt Securities, Available-for-sale [Line Items]
Gross Realized Gains		0
Gross Realized Losses		0
Gross Proceeds from Sales		5
Gross Proceeds from Maturities		$ 0

Investment Securities and Fai_6

Investment Securities and Fair Value Measurements - Fair Value Measurements (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	$ 24,012	$ 27,887
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	19,664	23,557
Agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	4,348	4,330
Fair value, recurring measurements
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	26,629	38,581
Fair value, recurring measurements | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	19,664	23,557
Fair value, recurring measurements | Agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	4,348	4,330
Fair value, recurring measurements | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	2,617	10,694
Fair value, recurring measurements | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	2,617	10,694
Fair value, recurring measurements | Level 1 | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	0	0
Fair value, recurring measurements | Level 1 | Agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	0	0
Fair value, recurring measurements | Level 1 | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	2,617	10,694
Fair value, recurring measurements | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	24,012	27,887
Fair value, recurring measurements | Level 2 | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	19,664	23,557
Fair value, recurring measurements | Level 2 | Agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	4,348	4,330
Fair value, recurring measurements | Level 2 | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Fair value, recurring measurements | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0	0
Fair value, recurring measurements | Level 3 | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	0	0
Fair value, recurring measurements | Level 3 | Agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	0	0
Fair value, recurring measurements | Level 3 | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	$ 0	$ 0

Internal-Use Software Develop_3

Internal-Use Software Development Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Research and Development [Abstract]
Internal use software development costs, gross	$ 63,189		$ 58,237
Less: Accumulated amortization	(40,793)		(37,752)
Internal use software development costs, net	22,396		$ 20,485
Capitalized software development costs during the period	5,000	$ 3,000
Amortization expense with respect to software development costs during the period	$ 3,000	$ 2,600

Internal-Use Software Develop_4

Internal-Use Software Development Costs - Capitalized Computer Software Future Amortization Expense (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Research and Development [Abstract]
2019	$ 8,847
2020	8,498
2021	4,603
2022	448
Internal use software development costs, net	$ 22,396	$ 20,485

Intangible Assets and Goodwil_2

Intangible Assets and Goodwill - Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 35,269		$ 13,169
Accumulated Amortization	(8,625)		(7,274)
Net Carrying Value	26,644		$ 5,895
Amortization expense	$ 1,400	$ 300
Weighted average
Finite-Lived Intangible Assets [Line Items]
Weighted Average Useful Life in Years	6 years 4 months 21 days		7 years 4 days
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 3,070		$ 1,960
Accumulated Amortization	(870)		(728)
Net Carrying Value	$ 2,200		$ 1,232
Customer relationships | Weighted average
Finite-Lived Intangible Assets [Line Items]
Weighted Average Useful Life in Years	5 years		5 years
Database
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 8,330		$ 3,620
Accumulated Amortization	(329)		(121)
Net Carrying Value	$ 8,001		$ 3,499
Database | Weighted average
Finite-Lived Intangible Assets [Line Items]
Weighted Average Useful Life in Years	10 years		10 years
Technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 12,261		$ 4,811
Accumulated Amortization	(5,006)		(4,506)
Net Carrying Value	$ 7,255		$ 305
Technology | Weighted average
Finite-Lived Intangible Assets [Line Items]
Weighted Average Useful Life in Years	5 years		8 years
Trademark and trade name
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 2,690		$ 1,300
Accumulated Amortization	(706)		(642)
Net Carrying Value	$ 1,984		$ 658
Trademark and trade name | Weighted average
Finite-Lived Intangible Assets [Line Items]
Weighted Average Useful Life in Years	10 years		9 years
Partner relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 680		$ 680
Accumulated Amortization	(680)		(680)
Net Carrying Value	$ 0		$ 0
Partner relationships | Weighted average
Finite-Lived Intangible Assets [Line Items]
Weighted Average Useful Life in Years	3 years		3 years
Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 7,440		$ 100
Accumulated Amortization	(414)		(44)
Net Carrying Value	$ 7,026		$ 56
Non-compete agreements | Weighted average
Finite-Lived Intangible Assets [Line Items]
Weighted Average Useful Life in Years	5 years		4 years
Domain names
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 273		$ 273
Accumulated Amortization	(273)		(273)
Net Carrying Value	$ 0		$ 0
Domain names | Weighted average
Finite-Lived Intangible Assets [Line Items]
Weighted Average Useful Life in Years	5 years		5 years
Patents
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 285		$ 285
Accumulated Amortization	(240)		(233)
Net Carrying Value	$ 45		$ 52
Patents | Weighted average
Finite-Lived Intangible Assets [Line Items]
Weighted Average Useful Life in Years	5 years		5 years
Backlog
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 240		$ 140
Accumulated Amortization	(107)		(47)
Net Carrying Value	$ 133		$ 93
Backlog | Weighted average
Finite-Lived Intangible Assets [Line Items]
Weighted Average Useful Life in Years	1 year		1 year

Intangible Assets and Goodwil_3

Intangible Assets and Goodwill - Future Amortization (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2019	$ 4,003
2020	5,066
2021	4,931
2022	4,869
2023	2,863
Thereafter	4,912
Net Carrying Value	$ 26,644	$ 5,895

Intangible Assets and Goodwil_4

Intangible Assets and Goodwill - Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Goodwill [Roll Forward]
Goodwill at December 31, 2018	$ 15,548
Goodwill from acquisition of Dynasty	41,948
Goodwill at March 31, 2019	$ 57,496

Leases (Details)

Leases (Details) $ in Thousands	Apr. 01, 2019USD ($)ft²	Jan. 28, 2019USD ($)ft²	Jan. 22, 2019USD ($)ft²	Mar. 31, 2019USD ($)	Jan. 01, 2019USD ($)	Dec. 31, 2018USD ($)
Lease, Cost [Abstract]
Operating lease cost				$ 1,200
Assets and Liabilities, Lessee [Abstract]
Operating lease right-of-use assets				16,004	$ 16,945
Other current liabilities				4,013
Operating lease liabilities				19,064
Total operating lease liabilities				$ 23,077	20,056	$ 0
Weighted-average remaining lease term (years)				6 years 7 months 24 days
Weighted-average discount rate				4.10%
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases				$ 970
Operating Lease Liabilities, Payments Due [Abstract]
2019				3,677
2020				5,171
2021				4,048
2022				2,717
2023				2,053
Thereafter				9,128
Total future minimum lease payments				26,794
Less: imputed interest				(3,717)
Operating lease liabilities				23,077	$ 20,056	0
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2019						4,211
2020						4,889
2021						4,038
2022						2,717
2023						2,053
Thereafter						9,128
Total lease commitments						$ 27,036
Liabilities for additional leases that have not yet commenced				$ 700
130 Castilian Drive Santa Barbara, California
Lessee, Lease, Description [Line Items]
Lease term			32 months
Assets and Liabilities, Lessee [Abstract]
Total operating lease liabilities			$ 450
Operating Lease Liabilities, Payments Due [Abstract]
Operating lease liabilities			$ 450
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
Square feet of leased area | ft²			10,500
9201 Spectrum Center Boulevard in San Diego, California
Assets and Liabilities, Lessee [Abstract]
Total operating lease liabilities		$ 700
Operating Lease Liabilities, Payments Due [Abstract]
Operating lease liabilities		$ 700
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
Square feet of leased area | ft²		4,500
215-221 Rose Avenue, Venice, California | Subsequent Event
Lessee, Lease, Description [Line Items]
Lease term	5 years
Assets and Liabilities, Lessee [Abstract]
Total operating lease liabilities	$ 2,000
Operating Lease Liabilities, Payments Due [Abstract]
Operating lease liabilities	$ 2,000
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
Square feet of leased area | ft²	5,000
Minimum
Lessee, Lease, Description [Line Items]
Lease term				1 year
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
Lease not yet commenced, term				2 years
Maximum
Lessee, Lease, Description [Line Items]
Lease term				9 years
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
Lease not yet commenced, term				3 years

Long-Term Debt (Details)

Long-Term Debt (Details)	Dec. 24, 2018USD ($)	Oct. 09, 2015USD ($)	Mar. 31, 2019USD ($)	Mar. 31, 2018USD ($)	Dec. 31, 2018USD ($)
Debt Instrument [Line Items]
Long-term debt - current portion			$ (1,213,000)		$ (1,213,000)
Long-term debt, net			48,290,000		48,602,000
Other Assets
Long-term Debt, Fiscal Year Maturity [Abstract]
Capitalized deferred financing costs			$ 300,000		300,000
Credit Facility
Long-term Debt, Fiscal Year Maturity [Abstract]
EBITDA to interest expense ratio	3
Funded indebtedness to EBITDA ratio	3.5
Annual decrease in required leverage ratio	0.25
Required leverage ratio	2.5
Floor plus 20% of the sum of the combined outstanding principal amounts	$ 20,000,000
Acquisition purchase price floor for 0.5 increase in required leverage ratio for 12 month period following the close date	20,000,000
Average interest rate			4.40%
Capitalized deferred financing costs	$ 400,000
Credit Facility | Federal Funds Rate | Minimum
Long-term Debt, Fiscal Year Maturity [Abstract]
Variable rate, basis spread percent	0.50%
Credit Facility | Federal Funds Rate | Maximum
Long-term Debt, Fiscal Year Maturity [Abstract]
Variable rate, basis spread percent	1.00%
Credit Facility | LIBOR | Minimum
Long-term Debt, Fiscal Year Maturity [Abstract]
Variable rate, basis spread percent	1.50%
Credit Facility | LIBOR | Maximum
Long-term Debt, Fiscal Year Maturity [Abstract]
Variable rate, basis spread percent	2.00%
Credit Facility | Term Loan
Debt Instrument [Line Items]
Principal amounts due under term loan			$ 49,688,000
Less: Debt financing costs			185,000
Long-term debt, net of unamortized debt financing costs			49,503,000
Long-term debt - current portion			(1,213,000)
Long-term debt, net			48,290,000
Long-term Debt, Fiscal Year Maturity [Abstract]
2019			938,000
2020			1,250,000
2021			2,500,000
2022			2,500,000
2023			42,500,000
Principal amounts due under term loan			49,688,000
Line of credit, amount outstanding	$ 50,000,000
Capitalized deferred financing costs	200,000		500,000		$ 200,000
Amortization of deferred debt financing costs			$ 24,000	$ 16,000
Credit Facility | Revolving Credit Facility
Long-term Debt, Fiscal Year Maturity [Abstract]
Maximum borrowing capacity	$ 50,000,000
Commitment fee percentage	0.25%
Commitment fee, usage threshold for 37.5 basis points commitment fee, percentage	$ 30,000,000
Unused portion of the Revolving Facility, percentage	0.375%
Capitalized deferred financing costs	$ 200,000
Credit Facility | Revolving Credit Facility | Federal Funds Rate
Long-term Debt, Fiscal Year Maturity [Abstract]
Variable rate, basis spread percent		0.50%
Credit Facility | Revolving Credit Facility | Wells Fargo
Long-term Debt, Fiscal Year Maturity [Abstract]
Maximum borrowing capacity		$ 25,000,000

Commitment and Contingencies (D

Commitment and Contingencies (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Loss Contingencies [Line Items]
Per incident policy limit	$ 100,000
Quota share of tenant liability insurance provided, percent	100.00%
Other current liabilities
Loss Contingencies [Line Items]
Liability for reported claims and claims incurred but not reported	$ 700,000	$ 600,000
Other current assets
Loss Contingencies [Line Items]
Deposits held with a third party related to insurance services collateral	$ 1,700,000	$ 1,800,000

Share Repurchase Program (Detai

Share Repurchase Program (Details)	Feb. 20, 2019USD ($)
Equity [Abstract]
Share repurchase program, authorized amount	$ 100,000,000

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options outstanding, beginning balance (in shares)	1,513,000
Options granted (in shares)	0	0
Options exercised (in shares)	(14,000)
Options cancelled/forfeited (in shares)	(50,000)
Options outstanding, ending balance (in shares)	1,449,000		1,513,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Options outstanding, weighted average exercise price, beginning balance (in dollars per share)	$ 11.31
Options granted, weighted average exercise price (in dollars per share)	0
Options exercised, weighted average exercise price (in dollars per share)	6.35
Options cancelled/forfeited, weighted average exercise price (in dollars per share)	13.43
Options outstanding, weighted average exercise price, ending balance (in dollars per share)	$ 11.29		$ 11.31
Weighted average remaining contractual life, in years	6 years 3 months 24 days		6 years 4 months 24 days
Stock Options and PSOs
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Stock-based compensation expense	$ 0.2	$ 0.3
PSOs | 2019 and 2018 Performance Metric Granted in 2017
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options outstanding, ending balance (in shares)	172,000
PSOs | 2019 Performance Metric, Targeted Free Cash Flow Performance Metric
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options granted (in shares)	132,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Percent of targeted awards that will vest	150.00%
Percent of targeted performance metric	100.00%
PSOs | 2019 Performance Metric, Adjusted Gross Margin Target
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options granted (in shares)	40,000
PSOs | 2019 Performance Metric, Adjusted Gross Margin Target | Vesting Tranche One
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Percent of targeted awards that will vest	110.00%
Percent of targeted performance metric	50.00%
PSOs | 2019 Performance Metric, Adjusted Gross Margin Target | Vesting Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Percent of targeted awards that will vest	115.00%
Percent of targeted performance metric	50.00%
PSOs | 2017 Performance Metric, Targeted Free Cash Flow Performance Metric
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Share-based compensation options vested (in shares)	200,000
Percent of achievement of award target performance metric	120.00%

Stock-Based Compensation - Valu

Stock-Based Compensation - Valuation Assumptions (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (in shares)	0	0
Stock Options and PSOs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Remaining stock-based compensation expense for unvested options, not yet recognized	$ 0.5
Stock-based compensation expense, weighted average recognition period	1 year 29 days

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted Stock Units Activity (Details) - RSUs and PSUs shares in Thousands	3 Months Ended
	Mar. 31, 2019$ / sharesshares
Number of Shares
Unvested, beginning balance (in shares) | shares	674
Granted (in shares) | shares	109
Vested (in shares) | shares	(93)
Forfeited (in shares) | shares	(14)
Unvested, ending balance (in shares) | shares	676
Weighted- Average Grant Date Fair Value per Share
Unvested, beginning balance (in dollars per share) | $ / shares	$ 32.61
Granted (in dollars per share) | $ / shares	71.40
Vested (in dollars per share) | $ / shares	14.86
Forfeited (in dollars per share) | $ / shares	33.89
Unvested, ending balance (in dollars per share) | $ / shares	$ 41.26

Stock-Based Compensation - Re_2

Stock-Based Compensation - Restricted Stock Units (Details) - USD ($) shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
RSUs and PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted in period (in shares)	109
Share-based compensation options vested in period (in shares)	93
Stock-based compensation expense	$ 1.6	$ 1.1
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted in period (in shares)	99
Vesting period	4 years
PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted in period (in shares)	4
Percent of targeted performance metric	100.00%
Share-based compensation options vested in period (in shares)	29
Percent of achievement of award target performance metric			120.00%
PSUs | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of targeted performance metric	0.00%
PSUs | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of targeted performance metric	100.00%
PSUs | Vesting Tranche One | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of targeted performance metric	100.00%
Performance based cash bonus payment percent	100.00%
PSUs | Vesting Tranche One | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of targeted performance metric	150.00%
Performance based cash bonus payment percent	165.00%
PSUs | 2017 Performance Metric
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted in period (in shares)	6
PSUs | 2016 Performance Metric
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted in period (in shares)	6
PSUs Granted in 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted in period (in shares)	102
Percent of targeted performance metric	100.00%
PSUs Granted in 2018 | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of targeted performance metric	0.00%
Percent of cash bonus payments on initial targets, percent	100.00%
PSUs Granted in 2018 | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of targeted performance metric	100.00%
Percent of cash bonus payments on initial targets, percent	165.00%
PSUs Granted in 2018 | Vesting Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation options vested in period (in shares)	54
PSUs Granted in 2018 | Vesting Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation options vested in period (in shares)	48
PSUs Granted in 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted in period (in shares)	88
PSUs Granted in 2017 | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of targeted performance metric	0.00%
PSUs Granted in 2017 | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of targeted performance metric	165.00%
PSUs Granted in 2019 | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of targeted performance metric	100.00%
PSUs Granted in 2019 | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of targeted performance metric	150.00%

Stock-Based Compensation - Re_3

Stock-Based Compensation - Restricted Stock Awards (Details) - Restricted Stock Awards - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Number of Shares
Unvested, beginning balance (in shares)	6
Granted (in shares)	0
Vested (in shares)	(1)
Forfeited (in shares)	0
Unvested, ending balance (in shares)	5		6
Weighted Average Grant Date Fair Value per Share
Unvested, beginning balance (in dollars per share)	$ 51.36
Granted (in dollars per share)	0
Vested (in dollars per share)	5.64
Forfeited (in dollars per share)	0
Unvested, ending balance (in dollars per share)	$ 61.05		$ 51.36
Stock-based compensation expense	$ 0.1	$ 0.1
Remaining stock-based compensation expense for unvested shares, not yet recognized			$ 0.1
Stock-based compensation expense, weighted average recognition period			2 months 27 days
Employee
Weighted Average Grant Date Fair Value per Share
Vesting period	4 years
Non-Employee Director
Weighted Average Grant Date Fair Value per Share
Vesting period	1 year

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Income tax expense	$ (4,281)	$ 26
Deferred tax liabilities acquired through Dynasty acquisition	4,100
Pre-tax income	$ (556)	$ 4,346
Effective tax rate		0.60%

Revenue and Other Information_2

Revenue and Other Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Disaggregation of Revenue [Line Items]
Revenue	$ 57,091	$ 42,340
Revenue recognized in deferred revenue	1,700	3,700
Core solutions
Disaggregation of Revenue [Line Items]
Revenue	20,822	16,205
Value plus services
Disaggregation of Revenue [Line Items]
Revenue	33,698	24,640
Other
Disaggregation of Revenue [Line Items]
Revenue	$ 2,571	$ 1,495

Subsequent Events (Details)

Subsequent Events (Details) $ in Thousands	Apr. 01, 2019USD ($)ft²	Mar. 31, 2019USD ($)	Jan. 01, 2019USD ($)	Dec. 31, 2018USD ($)
Subsequent Event [Line Items]
Operating lease liabilities		$ 23,077	$ 20,056	$ 0
215-221 Rose Avenue, Venice, California | Subsequent Event
Subsequent Event [Line Items]
Square feet of leased area | ft²	5,000
Lease term	5 years
Operating lease liabilities	$ 2,000