Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 18, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-37468 | |
Entity Registrant Name | AppFolio, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-0359894 | |
Entity Address, Address Line One | 70 Castilian Drive | |
Entity Address, City or Town | Santa Barbara, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 93117 | |
City Area Code | 805 | |
Local Phone Number | 364-6093 | |
Title of 12(b) Security | Class A common stock, $0.0001 par value | |
Trading Symbol | APPF | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001433195 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Class A common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 22,326,649 | |
Class B common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 13,886,648 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 59,214 | $ 49,509 |
Investment securities—current | 184,298 | 162,196 |
Accounts receivable, net | 26,179 | 20,709 |
Prepaid expenses and other current assets | 36,975 | 39,943 |
Total current assets | 306,666 | 272,357 |
Property and equipment, net | 27,709 | 28,362 |
Operating lease right-of-use assets | 18,762 | 19,285 |
Capitalized software development costs, net | 18,974 | 21,562 |
Goodwill | 56,060 | 56,060 |
Other long-term assets | 10,599 | 11,263 |
Total assets | 438,770 | 408,889 |
Current liabilities | ||
Accounts payable | 1,531 | 1,141 |
Accrued employee expenses | 29,202 | 35,567 |
Accrued expenses | 13,531 | 21,723 |
Other current liabilities | 11,793 | 11,335 |
Total current liabilities | 56,057 | 69,766 |
Operating lease liabilities | 40,469 | 41,114 |
Other liabilities | 3,049 | 697 |
Total liabilities | 99,575 | 111,577 |
Commitments and contingencies (Note 8) | ||
Stockholders’ equity: | ||
Additional paid-in capital | 240,419 | 236,985 |
Accumulated other comprehensive Income (loss) | (115) | 99 |
Treasury stock | (25,756) | (25,756) |
Retained earnings | 124,643 | 85,980 |
Total stockholders’ equity | 339,195 | 297,312 |
Total liabilities and stockholders’ equity | 438,770 | 408,889 |
Class A common stock | ||
Stockholders’ equity: | ||
Common stock | 2 | 2 |
Class B common stock | ||
Stockholders’ equity: | ||
Common stock | $ 2 | $ 2 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Income Statement [Abstract] | |||
Revenue | $ 187,430 | $ 136,100 | |
Costs and operating expenses: | |||
Cost of revenue (exclusive of depreciation and amortization) | [1] | 64,646 | 56,208 |
Sales and marketing | [1] | 24,455 | 29,398 |
Research and product development | [1] | 37,895 | 37,662 |
General and administrative | [1] | 21,132 | 31,691 |
Depreciation and amortization | 5,212 | 7,671 | |
Total costs and operating expenses | 153,340 | 162,630 | |
Income (loss) from operations | 34,090 | (26,530) | |
Other income (loss), net | 0 | 20 | |
Interest income, net | 2,992 | 1,361 | |
Income (loss) before provision for income taxes | 37,082 | (25,149) | |
(Benefit from) provision for income taxes | (1,581) | 9,961 | |
Net income (loss) | $ 38,663 | $ (35,110) | |
Net income (loss) per common share: | |||
Net loss per common share, basic (in dollars per share) | $ 1.07 | $ (0.99) | |
Net loss per common share, diluted (in dollars per share) | $ 1.05 | $ (0.99) | |
Weighted average common shares outstanding: | |||
Weighted average common shares outstanding, basic (in shares) | 36,087 | 35,443 | |
Weighted average common shares outstanding, diluted (in shares) | 36,674 | 35,443 | |
[1]Includes stock-based compensation expense as follows: Three Months Ended 2024 2023 Stock-based compensation expense included in costs and operating expenses: Cost of revenue (exclusive of depreciation and amortization) $ 960 $ 768 Sales and marketing 1,510 2,417 Research and product development 5,682 5,439 General and administrative 5,322 5,279 Total stock-based compensation expense $ 13,474 $ 13,903 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Total stock-based compensation expense | $ 13,474 | $ 13,903 |
Cost of revenue (exclusive of depreciation and amortization) | ||
Total stock-based compensation expense | 960 | 768 |
Sales and marketing | ||
Total stock-based compensation expense | 1,510 | 2,417 |
Research and product development | ||
Total stock-based compensation expense | 5,682 | 5,439 |
General and administrative | ||
Total stock-based compensation expense | $ 5,322 | $ 5,279 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 38,663 | $ (35,110) |
Other comprehensive income (loss): | ||
Changes in unrealized (losses) gains on investment securities, net of tax | (214) | 763 |
Comprehensive income (loss) | $ 38,449 | $ (34,347) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock Class A common stock | Common Stock Class B common stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Retained Earnings |
Beginning balance (in shares) at Dec. 31, 2022 | 20,569 | 14,746 | |||||
Beginning balance at Dec. 31, 2022 | $ 265,546 | $ 2 | $ 2 | $ 209,704 | $ (1,684) | $ (25,756) | $ 83,278 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Exercise of stock options (in shares) | 64 | ||||||
Exercise of stock options | 834 | 834 | |||||
Stock-based compensation | 14,075 | 14,075 | |||||
Vesting of restricted stock units, net of shares withheld for taxes (in shares) | 79 | ||||||
Vesting of restricted stock units, net of shares withheld for taxes | (5,539) | (5,539) | |||||
Conversion of Class B common stock to Class A common stock (in shares) | 27 | (27) | |||||
Issuance of restricted stock awards (in shares) | 2 | ||||||
Other comprehensive income (loss) | 763 | 763 | |||||
Net income (Loss) | (35,110) | (35,110) | |||||
Ending balance (in shares) at Mar. 31, 2023 | 20,741 | 14,719 | |||||
Ending balance at Mar. 31, 2023 | 240,569 | $ 2 | $ 2 | 219,074 | (921) | (25,756) | 48,168 |
Beginning balance (in shares) at Dec. 31, 2023 | 21,749 | 14,116 | |||||
Beginning balance at Dec. 31, 2023 | $ 297,312 | $ 2 | $ 2 | 236,985 | 99 | (25,756) | 85,980 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Exercise of stock options (in shares) | 244 | 244 | |||||
Exercise of stock options | $ 3,874 | 3,874 | |||||
Stock-based compensation | 13,646 | 13,646 | |||||
Vesting of restricted stock units, net of shares withheld for taxes (in shares) | 89 | ||||||
Vesting of restricted stock units, net of shares withheld for taxes | (14,086) | (14,086) | |||||
Conversion of Class B common stock to Class A common stock (in shares) | 199 | (199) | |||||
Other comprehensive income (loss) | (214) | (214) | |||||
Net income (Loss) | 38,663 | 38,663 | |||||
Ending balance (in shares) at Mar. 31, 2024 | 22,281 | 13,917 | |||||
Ending balance at Mar. 31, 2024 | $ 339,195 | $ 2 | $ 2 | $ 240,419 | $ (115) | $ (25,756) | $ 124,643 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash from operating activities | ||
Net income (Loss) | $ 38,663 | $ (35,110) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 4,693 | 6,937 |
Amortization of operating lease right-of-use assets | 523 | 568 |
Gain on lease modification | 0 | (2,366) |
Stock-based compensation, including as amortized | 13,992 | 14,637 |
Other | (1,824) | (155) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (5,470) | (914) |
Prepaid expenses and other current assets | 8,849 | (2,399) |
Accounts payable | 733 | (1,777) |
Operating lease liabilities | (475) | (771) |
Accrued expenses and other liabilities | (16,730) | 22,923 |
Net cash provided by operating activities | 42,954 | 1,573 |
Cash from investing activities | ||
Purchases of available-for-sale investments | (57,162) | (1,285) |
Proceeds from sales of available-for-sale investments | 0 | 1,013 |
Proceeds from maturities of available-for-sale investments | 36,670 | 37,890 |
Purchases of property and equipment | (1,420) | (794) |
Capitalization of software development costs | (1,125) | (1,165) |
Proceeds from sale of business, net of cash divested | 0 | 629 |
Net cash (used in) provided by investing activities | (23,037) | 36,288 |
Cash from financing activities | ||
Proceeds from stock option exercises | 3,874 | 834 |
Tax withholding for net share settlement | (14,086) | (5,539) |
Net cash used in financing activities | (10,212) | (4,705) |
Net increase in cash, cash equivalents and restricted cash | 9,705 | 33,156 |
Cash, cash equivalents and restricted cash | ||
Beginning of period | 49,759 | 71,019 |
End of period | 59,464 | 104,175 |
Cash and cash equivalents | 59,214 | 103,925 |
Restricted cash included in prepaid expenses and other current assets | 250 | 250 |
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows | 59,464 | 104,175 |
Supplemental disclosure of cash flow information | ||
Cash paid for amounts included in the measurement of lease liabilities included in operating cash flows | $ 1,483 | $ 1,348 |
Nature of Business
Nature of Business | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | Nature of Business AppFolio, Inc. ("we," "us" or "our") is a leading provider of cloud business management solutions for the real estate industry. Our solutions are designed to enable our property manager customers to digitally transform their businesses, address critical business operations and deliver a better customer experience. Digital transformation is effectively a requirement for business success in the modern world, and the way we work and live requires powerful software solutions. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
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, which was filed with the SEC on February 1, 2024. 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 our Condensed Consolidated Financial Statements. The operating results for the three months ended March 31, 2024 are not necessarily indicative of the results expected for the full year ending December 31, 2024. Reclassification We reclassified certain amounts in our Condensed Consolidated Statements of Cash Flows within the cash flows from operating activities section in the prior year to conform to the current year's presentation. Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenue, expenses, other income, and provision for income taxes during the reporting period. Assets and liabilities which are subject to judgment and use of estimates include the fair value of financial instruments, capitalized software development costs, period of benefit associated with deferred costs, incremental borrowing rate used to measure operating lease liabilities, the recoverability of goodwill and long-lived assets, income taxes, useful lives associated with property and equipment and intangible assets, contingencies, assumptions underlying performance-based compensation (whether cash or stock-based), and assumptions underlying stock-based compensation. Actual results could differ from those estimates and any such differences may have a material impact on our Condensed Consolidated Financial Statements. Net Income (Loss) per Common Share Net income (loss) 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 sets forth the computation of basic and diluted net income (loss) per common share (in thousands): Three Months Ended 2024 2023 Basic net income (loss) per share: Numerator Net income (loss) $ 38,663 $ (35,110) Less: undistributed earnings to participating securities 5 — Net income (loss) attributable to common stockholders $ 38,658 $ (35,110) Denominator Weighted average common shares outstanding 36,092 35,451 Less: Weighted average unvested restricted shares subject to repurchase 5 8 Weighted average common shares outstanding; basic 36,087 35,443 Net income (loss) per common share; basic $ 1.07 $ (0.99) Diluted net income (loss) per share: Numerator Net income (loss) attributable to common stockholders $ 38,658 $ (35,110) Denominator Weighted average common shares outstanding; basic 36,087 35,443 Add: Weighted average dilutive options outstanding 108 — Add: Weighted average dilutive RSUs outstanding 479 — Weighted average common shares outstanding; diluted 36,674 35,443 Net income (loss) per common share; diluted $ 1.05 $ (0.99) Potentially dilutive securities that are not included in the calculation of diluted net income (loss) per share because doing so would be antidilutive are as follows (in thousands): Three Months Ended 2024 2023 Unvested Restricted Stock Awards 4 8 Options — 572 Restricted Stock Units 170 1,620 Total potentially dilutive securities 174 2,200 |
Investment Securities and Fair
Investment Securities and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
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 as of March 31, 2024 and December 31, 2023 (in thousands): March 31, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. government and agency securities 184,377 17 (96) 184,298 Total available-for-sale investment securities $ 184,377 $ 17 $ (96) $ 184,298 December 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. government and agency securities 162,062 193 (59) 162,196 Total available-for-sale investment securities $ 162,062 $ 193 $ (59) $ 162,196 As of March 31, 2024, the decline in fair value below amortized cost basis was not considered other than temporary as it is more likely than not we will hold the securities until maturity or recovery of the cost basis. No allowance for credit losses for available-for-sale investment securities was recorded as of March 31, 2024 or December 31, 2023. The fair values of available-for-sale investment securities, by remaining contractual maturity, are as follows (in thousands): March 31, 2024 December 31, 2023 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due in one year or less $ 184,377 $ 184,298 $ 162,062 $ 162,196 Total available-for-sale investment securities $ 184,377 $ 184,298 $ 162,062 $ 162,196 During the three months ended March 31, 2024 and 2023, we had sales and maturities of investment securities, as follows (in thousands): Three Months Ended March 31, 2024 Gross Realized Gains Gross Realized Losses Gross Proceeds from Sales Gross Proceeds from Maturities U.S. government and agency securities — — — 36,670 Total $ — $ — $ — $ 36,670 Three Months Ended March 31, 2023 Gross Realized Gains Gross Realized Losses Gross Proceeds from Sales Gross Proceeds from Maturities Corporate bonds $ 3 $ — $ 1,013 $ 6,860 U.S. government and agency securities — — — 31,030 Total $ 3 $ 1,013 $ 37,890 Fair Value Measurements Recurring Fair Value Measurements The following tables present our financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023 by level within the fair value hierarchy (in thousands): March 31, 2024 Level 1 Level 2 Total Fair Cash equivalents: Money market funds $ 42,400 $ — $ 42,400 Available-for-sale investment securities: U.S. government and agency securities — 184,298 184,298 Total $ 42,400 $ 184,298 $ 226,698 December 31, 2023 Level 1 Level 2 Total Fair Cash equivalents: Money market funds $ 37,100 $ — $ 37,100 Available-for-sale investment securities: U.S. government and agency securities — 162,196 162,196 Total $ 37,100 $ 162,196 $ 199,296 The carrying amounts of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities approximate their fair value because of the short maturity of these items. Fair value for our Level 1 investment securities is based on market prices for identical assets. 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, other observable inputs like market transactions involving comparable securities are used. |
Capitalized Software Developmen
Capitalized Software Development Costs, net | 3 Months Ended |
Mar. 31, 2024 | |
Research and Development [Abstract] | |
Capitalized Software Development Costs, net | Capitalized Software Development Costs, net Capitalized software development costs were as follows (in thousands): March 31, December 31, Capitalized software development costs, gross $ 125,890 $ 126,606 Less: Accumulated amortization (106,916) (105,044) Capitalized software development costs, net $ 18,974 $ 21,562 Capitalized software development costs were $1.2 million and $1.0 million for the three months ended March 31, 2024 and 2023, respectively. Amortization expense with respect to capitalized software development costs totaled $3.7 million and $5.9 million for the three months ended March 31, 2024 and 2023, respectively. During the three months ended March 31, 2024 and 2023, we disposed of $1.9 million and $2.2 million, respectively, of fully amortized capitalized software development costs. Future amortization expense with respect to capitalized software development costs as of March 31, 2024 is estimated as follows (in thousands): Years Ending December 31, 2024 $ 9,074 2025 6,434 2026 2,816 2027 650 Total amortization expense $ 18,974 |
Accrued Employee Expenses
Accrued Employee Expenses | 3 Months Ended |
Mar. 31, 2024 | |
Compensation Related Costs [Abstract] | |
Accrued Employee Expenses | Accrued Employee Expenses Accrued employee expenses consisted of the following (in thousands): March 31, December 31, Accrued vacation $ 13,258 $ 12,399 Accrued bonuses 5,694 14,795 Accrued payroll, severance and related personnel cost 10,250 8,373 Total accrued employee expenses $ 29,202 $ 35,567 |
Other Current Liabilities
Other Current Liabilities | 3 Months Ended |
Mar. 31, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other Current Liabilities Other Current Liabilities consisted of the following (in thousands): March 31, December 31, Insurance reserves $ 3,314 $ 4,174 Operating lease liabilities-current 3,796 3,626 Other 4,683 3,535 Total other current liabilities $ 11,793 $ 11,335 For additional information, refer to Note 8, Commitments and Contingencies and Note 7, Leases. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | Leases Operating leases for our corporate offices have remaining lease terms ranging from four months to nine years, some of which include options to extend the leases for up to ten years. These options to extend have not been recognized as part of our operating lease right-of-use assets and lease liabilities as it is not reasonably certain that we will exercise these options. Our lease agreements do not contain any residual value guarantees or material restrictive covenants. Certain leases contain provisions for property-related costs that are variable in nature for which we are responsible, including common area maintenance, which are expensed as incurred. The components of lease expense recognized in the Condensed Consolidated Statements of Operations were as follows (in thousands): Three Months Ended March 31, 2024 2023 Operating lease cost $ 1,073 $ 1,145 Variable lease cost 365 573 Total lease cost $ 1,438 $ 1,718 Lease-related assets and liabilities were as follows (in thousands): March 31, December 31, Assets Operating lease right-of-use assets $ 18,762 $ 19,285 Liabilities Other current liabilities $ 3,796 $ 3,626 Operating lease liabilities 40,469 41,114 Total lease liabilities $ 44,265 $ 44,740 In January 2023, we entered into an amendment to the lease agreement for our San Diego facility. We remeasured the lease liability and recorded a reduction to the lease liability and right-of-use asset using the discount rate at the modification date, which resulted in a gain of $2.4 million in the Condensed Consolidated Statements of Operations. Future minimum lease payments under non-cancellable leases as of March 31, 2024 were as follows (in thousands): Years ending December 31, 2024 $ 4,323 2025 6,168 2026 6,345 2027 6,529 2028 6,717 Thereafter 24,373 Total future minimum lease payments 54,455 Less: imputed interest (10,190) Total $ 44,265 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
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 in connection with reinsuring liability to landlord insurance policies offered to our customers by our third-party service provider. We assume a 100% quota share of the liability to landlord insurance policies placed with our customers by our third-party service provider. We accrue for reported claims, and include an estimate of losses incurred but not reported by our property manager customers, in cost of revenue because we bear the risk related to all such claims. Our e stimated liability for reported claims and incurred but not reported claims as of March 31, 2024 and December 31, 2023 was $3.3 million and $4.2 million, respectively, and is included in Other current liabilities on our Condensed Consolidated Balance Sheets. Included in Prepaid expenses and other current assets as of March 31, 2024 and December 31, 2023 are $3.0 million and $5.1 million, respectively, of deposits held with a third party related to requirements to maintain collateral for this insurance service. Legal Proceedings On February 10, 2023, a lawsuit was filed in the First Judicial District Court of New Mexico, Murphy, et al. v. AppFolio, Inc., et al. (No. D-101-CV-2022-02100), naming us as a defendant and alleging certain violations of the New Mexico Unfair Practices Act and negligent misrepresentation in connection with our tenant screening service (the “Murphy Litigation”). In late November 2023, the parties agreed to settle the Murphy Litigation. We did not admit any wrongdoing in connection with the settlement of the Murphy Litigation. The settlement agreement required us to pay $7.0 million, which was covered in full under our existing insurance policies. In April, 2024, the parties filed a stipulation of settlement with the court dismissing all claims against AppFolio with prejudice. As the settlement was paid in March 2024, there is no remaining liability or receivable as of March 31, 2024. In addition to the foregoing, from time to time, we are involved in various other investigative inquiries, legal proceedings and disputes arising from or related to matters incident to the ordinary course of our business activities, including actions with respect to intellectual property, employment, labor, regulatory and contractual matters. Although the ultimate outcome of such investigative inquiries, legal proceedings and other disputes cannot be predicted with certainty, we do not believe that any such pending investigative inquiries, legal proceedings and other disputes, 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, business partners, investors, directors, officers, and other parties with respect to certain matters, including, but not limited to, losses arising out of our breach of any applicable agreements, intellectual property infringement claims made by third parties, and other liabilities relating to or arising from our services or our acts or omissions. 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 not incurred any costs as a result of such indemnification obligations and have not recorded any liabilities related to such obligations in the Condensed Consolidated Financial Statements. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock Options A summary of activity in connection with our stock options for the three months ended March 31, 2024, is as follows (number of shares in thousands): Number of Weighted Weighted Options outstanding as of December 31, 2023 381 $ 51.49 3.4 Options exercised (244) 15.86 Options cancelled/forfeited (1) 3.28 Options outstanding as of March 31, 2024 136 $ 115.58 8.0 Our stock-based compensation expense for stock options were not material for the periods presented. As of March 31, 2024, the total estimated remaining stock-based compensation expense for the aforementioned stock options was $6.3 million, which is expected to be recognized over a weighted average period of 3.8 years. Restricted Stock Units A summary of activity in connection with our restricted stock units ("RSUs") for the three months ended March 31, 2024, is as follows (number of shares in thousands): Number of Shares Weighted Average Grant Date Fair Value per Share Unvested as of December 31, 2023 943 $ 121.61 Granted 270 211.40 Vested (105) 118.27 Forfeited (15) 127.79 Unvested as of March 31, 2024 1,093 $ 144.03 Unvested RSUs as of March 31, 2024 were composed of 1.0 million RSUs with only service conditions and 0.1 million performance share units ("PSUs") with both service conditions and performance conditions. RSUs granted with only service conditions generally vest over a four-year period, assuming continued employment through the applicable vesting date. The number of PSUs granted, as included in the above table, assumes achievement of the performance metric at 100% of the performance target. The unvested PSUs as of March 31, 2024, are subject to vesting based on the achievement of pre-established performance metrics for the year ending December 31, 2024 and will vest over a three year period, assuming continued employment through each vesting date. The actual number of shares to be issued at the end of the performance period will range from 0% to 150% of the target number of shares depending on achievement relative to the performance metric over the applicable period. We recognized stock-based compensation expense for the RSUs and PSUs of $13.0 million and $13.8 million for the three months ended March 31, 2024 and 2023, respectively. Excluded from stock-based compensation expense is capitalized software development costs of $0.2 million and $0.2 million for the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024, the total estimated remaining stock-based compensation expense for the aforementioned RSUs and PSUs was $124.8 million, which is expected to be recognized over a weighted average period of 2.5 years. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We calculate our provision for income taxes on a quarterly basis by applying an estimated annual effective tax rate to income (loss) from operations and by calculating the tax effect of discrete items recognized during the quarter. For the three months ended March 31, 2024, we recorded benefits from income taxes of $1.6 million, representing an effective tax rate of (4.3)%. The effective tax rate as compared to the U.S. federal statutory rate of 21% differs primarily due to excess tax benefits from stock-based compensation, partially offset by change in valuation allowance against deferred tax assets, state income taxes and non-deductible officers' compensation. We assess our ability to realize our deferred tax assets on a quarterly basis and we establish a valuation allowance if it is more-likely-than-not that some portion of the deferred tax assets will not be realized. We weigh all available positive and negative evidence, including our earnings history and results of recent operations, scheduled reversals of deferred tax liabilities, projected future taxable income and tax planning strategies. Due to a history of cumulative losses, including permanent adjustments, and assessing all available positive and negative evidence, we have determined that it is more likely than not that our federal and state deferred tax assets would not be realized. Accordingly, we have been maintaining full valuation allowance against our deferred tax assets. However, based on our current and projected future earnings, we believe that there is reasonable possibility that sufficient positive evidence of sustained profitability may be achieved during the current year to reach a conclusion that part or all of our deferred tax assets may become realizable, resulting in a possible release of valuation allowance. Such valuation allowance release may result in a material increase to our deferred tax assets and a corresponding decrease in income tax expense. The exact timing and amount of the valuation allowance release are subject to our projection of earnings and level of profitability that will be achieved. There were no material changes to our unrecognized tax benefits during the three months ended March 31, 2024, and we do not expect to have any significant changes to unrecognized tax benefits through the remainder of the year. |
Revenue and Other Information
Revenue and Other Information | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue and Other Information | Revenue and Other Information The following table presents our revenue categories for the three months ended March 31, 2024 and 2023 (in thousands): Three Months Ended 2024 2023 Core solutions $ 42,920 $ 37,169 Value Added Services 142,331 96,835 Other 2,179 2,096 Total revenue $ 187,430 $ 136,100 Our revenue is generated primarily from customers in the United States. All of our property and equipment is located in the United States. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income (Loss) | $ 38,663 | $ (35,110) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Andreas von Blottnitz [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On March 15, 2024, Andreas von Blottnitz, a member of our Board of Directors, adopted a Rule 10b5-1 trading arrangement providing for the sale of up to 28,500 shares of the Company's Class A common stock between June 14, 2024 and December 31, 2024. Mr. von Blottnitz's trading plan was entered into during an open insider trading window and is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act. |
Name | Andreas von Blottnitz |
Title | member of our Board of Directors |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 15, 2024 |
Arrangement Duration | 200 days |
Aggregate Available | 28,500 |
Janet Kerr [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On March 15, 2024, Janet Kerr, a member of our Board of Directors, adopted a Rule 10b5-1 trading arrangement providing for the sale of up to 2,500 shares of the Company's Class A common stock between June 14, 2024 and December 31, 2024. Ms. Kerr's trading plan was entered into during an open insider trading window and is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act of 1934. |
Name | Janet Kerr |
Title | member of our Board of Directors |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 15, 2024 |
Arrangement Duration | 200 days |
Aggregate Available | 2,500 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies |
Reclassification | Reclassification We reclassified certain amounts in our Condensed Consolidated Statements of Cash Flows within the cash flows from operating activities section in the prior year to conform to the current year's presentation. |
Use of Estimates | Use of Estimates |
Net Income (Loss) per Common Share | Net Income (Loss) per Common Share |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Weighted Average Number of Shares | The following table sets forth the computation of basic and diluted net income (loss) per common share (in thousands): Three Months Ended 2024 2023 Basic net income (loss) per share: Numerator Net income (loss) $ 38,663 $ (35,110) Less: undistributed earnings to participating securities 5 — Net income (loss) attributable to common stockholders $ 38,658 $ (35,110) Denominator Weighted average common shares outstanding 36,092 35,451 Less: Weighted average unvested restricted shares subject to repurchase 5 8 Weighted average common shares outstanding; basic 36,087 35,443 Net income (loss) per common share; basic $ 1.07 $ (0.99) Diluted net income (loss) per share: Numerator Net income (loss) attributable to common stockholders $ 38,658 $ (35,110) Denominator Weighted average common shares outstanding; basic 36,087 35,443 Add: Weighted average dilutive options outstanding 108 — Add: Weighted average dilutive RSUs outstanding 479 — Weighted average common shares outstanding; diluted 36,674 35,443 Net income (loss) per common share; diluted $ 1.05 $ (0.99) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Potentially dilutive securities that are not included in the calculation of diluted net income (loss) per share because doing so would be antidilutive are as follows (in thousands): Three Months Ended 2024 2023 Unvested Restricted Stock Awards 4 8 Options — 572 Restricted Stock Units 170 1,620 Total potentially dilutive securities 174 2,200 |
Investment Securities and Fai_2
Investment Securities and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Available-for-sale Securities | Investment securities classified as available-for-sale consisted of the following as of March 31, 2024 and December 31, 2023 (in thousands): March 31, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. government and agency securities 184,377 17 (96) 184,298 Total available-for-sale investment securities $ 184,377 $ 17 $ (96) $ 184,298 December 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. government and agency securities 162,062 193 (59) 162,196 Total available-for-sale investment securities $ 162,062 $ 193 $ (59) $ 162,196 |
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, 2024 December 31, 2023 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due in one year or less $ 184,377 $ 184,298 $ 162,062 $ 162,196 Total available-for-sale investment securities $ 184,377 $ 184,298 $ 162,062 $ 162,196 |
Schedule of Sales, Calls, and Maturities | During the three months ended March 31, 2024 and 2023, we had sales and maturities of investment securities, as follows (in thousands): Three Months Ended March 31, 2024 Gross Realized Gains Gross Realized Losses Gross Proceeds from Sales Gross Proceeds from Maturities U.S. government and agency securities — — — 36,670 Total $ — $ — $ — $ 36,670 Three Months Ended March 31, 2023 Gross Realized Gains Gross Realized Losses Gross Proceeds from Sales Gross Proceeds from Maturities Corporate bonds $ 3 $ — $ 1,013 $ 6,860 U.S. government and agency securities — — — 31,030 Total $ 3 $ 1,013 $ 37,890 |
Fair Value, Assets Measured on Recurring Basis | The following tables present our financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023 by level within the fair value hierarchy (in thousands): March 31, 2024 Level 1 Level 2 Total Fair Cash equivalents: Money market funds $ 42,400 $ — $ 42,400 Available-for-sale investment securities: U.S. government and agency securities — 184,298 184,298 Total $ 42,400 $ 184,298 $ 226,698 December 31, 2023 Level 1 Level 2 Total Fair Cash equivalents: Money market funds $ 37,100 $ — $ 37,100 Available-for-sale investment securities: U.S. government and agency securities — 162,196 162,196 Total $ 37,100 $ 162,196 $ 199,296 |
Capitalized Software Developm_2
Capitalized Software Development Costs, net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Research and Development [Abstract] | |
Schedule of Capitalized Computer Software | Capitalized software development costs were as follows (in thousands): March 31, December 31, Capitalized software development costs, gross $ 125,890 $ 126,606 Less: Accumulated amortization (106,916) (105,044) Capitalized software development costs, net $ 18,974 $ 21,562 |
Schedule of Capitalized Computer Software Future Amortization Expense | Future amortization expense with respect to capitalized software development costs as of March 31, 2024 is estimated as follows (in thousands): Years Ending December 31, 2024 $ 9,074 2025 6,434 2026 2,816 2027 650 Total amortization expense $ 18,974 |
Accrued Employee Expenses (Tabl
Accrued Employee Expenses (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Compensation Related Costs [Abstract] | |
Schedule of Accrued Employee Expenses | Accrued employee expenses consisted of the following (in thousands): March 31, December 31, Accrued vacation $ 13,258 $ 12,399 Accrued bonuses 5,694 14,795 Accrued payroll, severance and related personnel cost 10,250 8,373 Total accrued employee expenses $ 29,202 $ 35,567 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other Current Liabilities consisted of the following (in thousands): March 31, December 31, Insurance reserves $ 3,314 $ 4,174 Operating lease liabilities-current 3,796 3,626 Other 4,683 3,535 Total other current liabilities $ 11,793 $ 11,335 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | The components of lease expense recognized in the Condensed Consolidated Statements of Operations were as follows (in thousands): Three Months Ended March 31, 2024 2023 Operating lease cost $ 1,073 $ 1,145 Variable lease cost 365 573 Total lease cost $ 1,438 $ 1,718 |
Schedule of Lease Assets and Liabilities | Lease-related assets and liabilities were as follows (in thousands): March 31, December 31, Assets Operating lease right-of-use assets $ 18,762 $ 19,285 Liabilities Other current liabilities $ 3,796 $ 3,626 Operating lease liabilities 40,469 41,114 Total lease liabilities $ 44,265 $ 44,740 |
Schedule of Minimum Lease Payments Under Leases | Future minimum lease payments under non-cancellable leases as of March 31, 2024 were as follows (in thousands): Years ending December 31, 2024 $ 4,323 2025 6,168 2026 6,345 2027 6,529 2028 6,717 Thereafter 24,373 Total future minimum lease payments 54,455 Less: imputed interest (10,190) Total $ 44,265 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | A summary of activity in connection with our stock options for the three months ended March 31, 2024, is as follows (number of shares in thousands): Number of Weighted Weighted Options outstanding as of December 31, 2023 381 $ 51.49 3.4 Options exercised (244) 15.86 Options cancelled/forfeited (1) 3.28 Options outstanding as of March 31, 2024 136 $ 115.58 8.0 |
Schedule of Restricted Stock Units Activity | A summary of activity in connection with our restricted stock units ("RSUs") for the three months ended March 31, 2024, is as follows (number of shares in thousands): Number of Shares Weighted Average Grant Date Fair Value per Share Unvested as of December 31, 2023 943 $ 121.61 Granted 270 211.40 Vested (105) 118.27 Forfeited (15) 127.79 Unvested as of March 31, 2024 1,093 $ 144.03 |
Revenue and Other Information (
Revenue and Other Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Product Information by Revenue Categories | The following table presents our revenue categories for the three months ended March 31, 2024 and 2023 (in thousands): Three Months Ended 2024 2023 Core solutions $ 42,920 $ 37,169 Value Added Services 142,331 96,835 Other 2,179 2,096 Total revenue $ 187,430 $ 136,100 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedule of Net Income per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator | ||
Net income (loss) | $ 38,663 | $ (35,110) |
Less: undistributed earnings to participating securities | 5 | 0 |
Net income (loss) attributable to common stockholders | $ 38,658 | $ (35,110) |
Denominator | ||
Weighted average common shares outstanding (in shares) | 36,092 | 35,451 |
Less: Weighted average unvested restricted shares subject to repurchase (in shares) | 5 | 8 |
Weighted average common shares outstanding; basic (in shares) | 36,087 | 35,443 |
Net income (loss) per common share, basic (in dollars per share) | $ 1.07 | $ (0.99) |
Numerator | ||
Net income (loss) attributable to common stockholders | $ 38,658 | $ (35,110) |
Denominator | ||
Weighted average common shares outstanding, basic (in shares) | 36,087 | 35,443 |
Weighted average common shares outstanding; diluted (in shares) | 36,674 | 35,443 |
Net income (loss) per common share, diluted (in dollars per share) | $ 1.05 | $ (0.99) |
Options | ||
Denominator | ||
Add: Weighted average diluted share-based payments outstanding (in shares) | 108 | 0 |
Restricted Stock Units | ||
Denominator | ||
Add: Weighted average diluted share-based payments outstanding (in shares) | 479 | 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares excluded from net income (loss) per share computation (in shares) | 174 | 2,200 |
Unvested Restricted Stock Awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares excluded from net income (loss) per share computation (in shares) | 4 | 8 |
Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares excluded from net income (loss) per share computation (in shares) | 0 | 572 |
Restricted Stock Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares excluded from net income (loss) per share computation (in shares) | 170 | 1,620 |
Investment Securities and Fai_3
Investment Securities and Fair Value Measurements - Schedule of Available-for-sale Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 184,377 | $ 162,062 |
Gross Unrealized Gains | 17 | 193 |
Gross Unrealized Losses | (96) | (59) |
Available-for-sale investment securities: | 184,298 | 162,196 |
U.S. government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 184,377 | 162,062 |
Gross Unrealized Gains | 17 | 193 |
Gross Unrealized Losses | (96) | (59) |
Available-for-sale investment securities: | $ 184,298 | $ 162,196 |
Investment Securities and Fai_4
Investment Securities and Fair Value Measurements - Additional Information (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value Disclosures [Abstract] | ||
Allowance for credit losses, available-for sale investments | $ 0 | $ 0 |
Investment Securities and Fai_5
Investment Securities and Fair Value Measurements - Available-for-sale Investments, by Remaining Contract Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Amortized Cost | ||
Due in one year or less | $ 184,377 | $ 162,062 |
Amortized Cost | 184,377 | 162,062 |
Estimated Fair Value | ||
Due in one year or less | 184,298 | 162,196 |
Estimated Fair Value | $ 184,298 | $ 162,196 |
Investment Securities and Fai_6
Investment Securities and Fair Value Measurements - Schedule of Sales, Calls and Maturities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Debt Securities, Available-for-sale [Line Items] | ||
Gross Realized Gains | $ 0 | $ 3 |
Gross Realized Losses | 0 | |
Gross Proceeds from Sales | 0 | 1,013 |
Gross Proceeds from Maturities | 36,670 | 37,890 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Realized Gains | 3 | |
Gross Realized Losses | 0 | |
Gross Proceeds from Sales | 1,013 | |
Gross Proceeds from Maturities | 6,860 | |
U.S. government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Realized Gains | 0 | 0 |
Gross Realized Losses | 0 | 0 |
Gross Proceeds from Sales | 0 | 0 |
Gross Proceeds from Maturities | $ 36,670 | $ 31,030 |
Investment Securities and Fai_7
Investment Securities and Fair Value Measurements - Fair Value, Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities: | $ 184,298 | $ 162,196 |
Fair value, recurring measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 226,698 | 199,296 |
Fair value, recurring measurements | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities: | 184,298 | 162,196 |
Fair value, recurring measurements | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents: | 42,400 | 37,100 |
Fair value, recurring measurements | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 42,400 | 37,100 |
Fair value, recurring measurements | Level 1 | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities: | 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: | 42,400 | 37,100 |
Fair value, recurring measurements | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 184,298 | 162,196 |
Fair value, recurring measurements | Level 2 | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities: | 184,298 | 162,196 |
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 |
Capitalized Software Developm_3
Capitalized Software Development Costs, net - Capitalized Computer Software (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Research and Development [Abstract] | ||
Capitalized software development costs, gross | $ 125,890 | $ 126,606 |
Less: Accumulated amortization | (106,916) | (105,044) |
Capitalized software development costs, net | $ 18,974 | $ 21,562 |
Capitalized Software Developm_4
Capitalized Software Development Costs, net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Research and Development [Abstract] | ||
Capitalized software development costs during the period | $ 1.2 | $ 1 |
Amortization expense with respect to software development costs during the period | 3.7 | 5.9 |
Fully amortized capitalized software development costs disposed of | $ 1.9 | $ 2.2 |
Capitalized Software Developm_5
Capitalized Software Development Costs, net - Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Years Ending December 31, | ||
2024 | $ 9,074 | |
2025 | 6,434 | |
2026 | 2,816 | |
2027 | 650 | |
Capitalized software development costs, net | $ 18,974 | $ 21,562 |
Accrued Employee Expenses - Sch
Accrued Employee Expenses - Schedule of Accrued Employee Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Compensation Related Costs [Abstract] | ||
Accrued vacation | $ 13,258 | $ 12,399 |
Accrued bonuses | 5,694 | 14,795 |
Accrued payroll, severance and related personnel cost | 10,250 | 8,373 |
Total accrued employee expenses | $ 29,202 | $ 35,567 |
Accrued Employee Expenses - Add
Accrued Employee Expenses - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Former Chief Executive Officer | |
Restructuring Cost and Reserve [Line Items] | |
Severance costs | $ 14.9 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Other Liabilities Disclosure [Abstract] | ||
Insurance reserves | $ 3,314 | $ 4,174 |
Operating lease liabilities-current | 3,796 | 3,626 |
Other | 4,683 | 3,535 |
Total other current liabilities | $ 11,793 | $ 11,335 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Jan. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Lessee, Lease, Description [Line Items] | |||
Lease renewal term | 10 years | ||
Gain (loss) on modification of lease | $ 2,400 | $ 0 | $ 2,366 |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lease term | 4 months | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lease term | 9 years |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||
Operating lease cost | $ 1,073 | $ 1,145 |
Variable lease cost | 365 | 573 |
Total lease cost | $ 1,438 | $ 1,718 |
Leases - Lease Related Assets a
Leases - Lease Related Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 18,762 | $ 19,285 |
Other current liabilities | 3,796 | 3,626 |
Operating lease liabilities | 40,469 | 41,114 |
Total lease liabilities | $ 44,265 | $ 44,740 |
Operating lease, liability, current, location | Other current liabilities | Other current liabilities |
Leases - Schedule of Minimum Le
Leases - Schedule of Minimum Lease Payments Under Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Years ending December 31, | ||
2024 | $ 4,323 | |
2025 | 6,168 | |
2026 | 6,345 | |
2027 | 6,529 | |
2028 | 6,717 | |
Thereafter | 24,373 | |
Total future minimum lease payments | 54,455 | |
Less: imputed interest | (10,190) | |
Total | $ 44,265 | $ 44,740 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Nov. 30, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | |
Loss Contingencies [Line Items] | |||
Quota share of tenant liability insurance provided, percent | 100% | ||
Murphy Litigation | |||
Loss Contingencies [Line Items] | |||
Settlement payment | $ 7,000 | ||
Other current liabilities | |||
Loss Contingencies [Line Items] | |||
Liability for reported claims and claims incurred but not reported | $ 3,300 | $ 4,200 | |
Other current assets | |||
Loss Contingencies [Line Items] | |||
Deposits held with a third party related to insurance services collateral | $ 3,000 | $ 5,100 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - $ / shares shares in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Number of Shares | ||
Options outstanding, beginning balance (in shares) | 381 | |
Options exercised (in shares) | (244) | |
Options cancelled/forfeited (in shares) | (1) | |
Options outstanding, ending balance (in shares) | 136 | 381 |
Weighted Average Exercise Price per Share | ||
Options outstanding, beginning balance (in dollars per share) | $ 51.49 | |
Options exercised (in dollars per share) | 15.86 | |
Options cancelled/forfeited (in dollars per share) | 3.28 | |
Options outstanding, ending balance (in dollars per share) | $ 115.58 | $ 51.49 |
Weighted Average Remaining Contractual Life in Years | 8 years | 3 years 4 months 24 days |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Option Activity Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Remaining stock-based compensation expense for unvested options, not yet recognized | $ 6.3 |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based compensation expense, weighted average recognition period (in years) | 3 years 9 months 18 days |
Stock Options | Tranche one | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights, percentage | 33.33% |
Stock Options | Tranche two | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights, percentage | 33.33% |
Stock Options | Tranche three | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights, percentage | 33.33% |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units Activity (Details) - Restricted Stock Units shares in Thousands | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Number of Shares | |
Unvested, beginning balance (in shares) | shares | 943 |
Granted (in shares) | shares | 270 |
Vested (in shares) | shares | (105) |
Forfeited (in shares) | shares | (15) |
Unvested, ending balance (in shares) | shares | 1,093 |
Weighted Average Grant Date Fair Value per Share | |
Unvested, beginning balance (in dollars per share) | $ / shares | $ 121.61 |
Granted (in dollars per share) | $ / shares | 211.40 |
Vested (in dollars per share) | $ / shares | 118.27 |
Forfeited (in dollars per share) | $ / shares | 127.79 |
Unvested, ending balance (in dollars per share) | $ / shares | $ 144.03 |
Stock-Based Compensation - Re_2
Stock-Based Compensation - Restricted Stock Units Narrative (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 13,474 | $ 13,903 | |
RSUs and PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 13,000 | 13,800 | |
Share-based payment arrangement, amount capitalized | 200 | $ 200 | |
Remaining stock-based compensation expense for unvested shares, not yet recognized | $ 124,800 | ||
Stock-based compensation expense, weighted average recognition period (in years) | 2 years 6 months | ||
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unvested restricted stock units (in shares) | 1,093 | 943 | |
Vesting period | 4 years | ||
Restricted Stock Units With Service Conditions | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unvested restricted stock units (in shares) | 1,000 | ||
Restricted Stock Units with Service and Performance Conditions | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unvested performance stock units (in shares) | 100 | ||
PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Percent of targeted performance metric | 100% | ||
PSUs | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percent of targeted performance metric | 0% | ||
PSUs | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percent of targeted performance metric | 150% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Income tax benefit | $ 1,581 | $ (9,961) |
Effective tax rate, percent | (4.30%) |
Revenue and Other Information_2
Revenue and Other Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 187,430 | $ 136,100 |
Core solutions | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 42,920 | 37,169 |
Value Added Services | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 142,331 | 96,835 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 2,179 | $ 2,096 |