AppFolio, Inc.

Good afternoon. Thank you for standing by and welcome to AppFolio, Inc.' 's second quarter 2022 financial results conference call. Please be advised that today's conference is being recorded and a replay will be available on AppFolio Investors Relations website. I would now like to hand the conference over to Lori Barker, Investor Relations. Ms. Barker, please go ahead.

Thank you. Good afternoon, everyone. I'm Lori Barker, investor relations for AppFolio, and I'd like to thank you for joining us today as we report AppFolio's second quarter 2022 financial results. With me on the call today are Jason Randall, AppFolio's president and CEO, and Fei-Hsien Nguyen, AppFolio's chief financial officer. This call is being simultaneously webcast on the investor relations section of our website, at www.appfolioinc.com. Before we get started, I would like to remind everyone of Appfolio's Safe Harbor Policy. Comments made during this conference call and webcast contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties. Any statement that refers to expectations, projections, or other characterizations of future events including financial projections, future market conditions, or future product enhancements or development, is a forward-looking statement. AppFolio's actual future results could differ materially from those expressed in such forward-looking statements for any reasons, including those listed on our SEC filings. AppFolio assumes no obligation to update any such forward-looking statements except as required by law. For greater detail about risk, and uncertainties, please see our filings with the SEC, including our form 10-K for the year ended December 31st, 2021, which was filed with the SEC on February 28th, 2022, as well as the company's other filings with the SEC. With that, I will turn the call over to Jason Randall, Appfolio's President and CEO. Jason, please go ahead.

thank you laurie and welcome to everyone joining us for app folio's second quarter 2022 financial results i'm pleased to report that revenue is up 32 percent to 117 million dollars in the second quarter and we now serve more than 6.8 million units this is the first time we've added more than one million million units on a year-over-year basis and these results reflect our continued focus on delivering a powerful property management solution and exceptional experiences to our growing base of real estate industry customers. Our long-term investments, customer focus, innovative products, and dedicated team have delivered sustained revenue growth and resilience even during times of constant change in the rental market. I'll highlight two specific second quarter execution highlights. I'll start with our June announcement about FolioStack, our new integration marketplace, and how it reinforces our strategy to move upmarket. Then I'll dig deeper into workflows and how we've recently developed new and innovative ways to make it easier for property managers to automate their workflows and increase productivity. Increasing productivity is an ongoing challenge for all our customers. As we continue to extend beyond our residential SMB routes by adding new upmarket customers, we continue to focus carefully on their unique needs. The rise of SaaS providers like AppFolio accelerated the centralization of workflows onto a single platform. Now we are offering customers the choice and the ability to integrate into a single system of record, which is especially important to larger property management customers. To address getting the best of both, at the National Apartment Association's annual conference in June, Apartmentalize, we announced AppFolio Stack, our new integration marketplace designed to seamlessly integrate our customers' preferred software applications with AppFolio Property Manager. AppfolioStack allows our certified partners to design and build their integrations around a variety of API endpoints using our modern architecture to provide our customers with a reliable experience. Integrations are particularly important to the mid-market and corporate segments to enable users to manage complex portfolios and run their entire business from a centralized hub. And AppfolioStack gives our customers more choices as they focus on boosting productivity and improving resident experiences. New stack partnerships include ButterflyMX, Conservice, HappyCo, NOC, Lowe's, and PropertyMeld. Last quarter, we talked about how customers can streamline maintenance tasks and how Appolio's new partner, Lowe's, helps solve this challenge. Now we have many more examples of integrations. Our new partnership with Conservice provides residents with the ability to pay the utilities and automates the utility billing process. freeing up property management teams to handle utility management, reduce costs, and meet sustainability goals, all while focusing on regulatory compliance. Happy Fill provides AppFolio Property Manager customers access to property, unit, and resident data to simplify and improve the average turn time and inspection process and create a better staff and resident experience. Data is automatically synced, so move-in and move-out inspections and make-ready workflows are triggered based on those moving dates in AppFolio Property Manager. Another integration example is Appfolio's partnership with Knox User-Friendly CRM. This integration helps our customers facilitate a bi-directional record for each of their prospective residents. The intuitive workflow helps prospective residents submit inquiries, then it generates a lead, and once the prospect is ready, the system provides a link to the online application in Appfolio Property Manager. All of these trusted partner integration choices use Appfolio's API to enable streamlined and simplified The partners are required to pass a readiness certification check, and all integrations are tested and validated to deliver a seamless experience for our customers. We are just getting started with integration partnerships, and AtfolioStack gives our customers a choice to continue using familiar tools. Here's what customer Michael Krause, partner at Atrium Management Company in Orlando, with approximately 3,000 units on Atfolio Property Manager says, quote, we have always used best-in-class software for specific functions, And we are so excited that Appfolio is integrating with more partners. This is truly a sign that Appfolio is dedicated to partnering with property managers and best-in-class software vendors to provide the end user with the best experience possible. Michael is correct. The primary goal of these new Appfolio stack integrations is to provide our customers with access to best-in-class point solutions, while Appfolio Property Manager remains their system of record. Customers using the base Appfolio Property Manager products may upgrade to Appfolio Property Manager Plus, or they can pay an incremental 50 cents per connected unit per month for Appolio Stack. Appolio Stack is one way that we are investing to differentiate ourselves. It's easy for customers to add partner connections with certified integrations backed by our dedicated customer support. We believe Stack is one of, if not the best, integrated customer experiences in real estate property management, and we see strong early interest from customers and other potential partnerships. Look for more announcements. In addition to rolling out Appolio's stack, we took important steps in the second quarter on our mission to make our products easier to use. One recent example is our new capability for property managers to return renters' security deposits via e-check. By reducing manual check writing, we've simplified the move-out process and improved the property manager's ability to be efficient. Residents can get their funds faster and track the status of the return in their tenant portal thereby reducing time-consuming back-and-forth communications for our property manager customers. Another example of our progress here is our modernized automated bank reconciliation functionality. Reconciling bank accounts is a core accounting task for property managers, and completing the task manually each month is time-consuming and error-prone, particularly for large companies with complex banking structures. Our goal is to make it easy for property managers to securely connect their bank accounts to AppFolio and automate their bank reconciliations, enabling them to eliminate the manual work and associated risk of error inherent in manually completing bank reconciliations. We are now integrated with Plaid, a leading fintech known for helping people securely connect consumer bank accounts to financial applications, supporting more than 12,000 financial institutions. This new integration with Plaid allows customers to link bank accounts to AppFolio with a higher success rate so they can go on to use our auto bank reconciliation functionality. Another new ease of use enhancement I want to highlight is our liabilities landlord insurance program. In the future, our customers can set it and forget it as a system automatically verifies tenant provided insurance documents to ensure they are properly approved and that there is adequate liability coverage. This task was previously a manual burden for property managers. Our AI power technology while still giving them access to this critical workflow. This program will be included with AppFolio Property Manager and is another milestone in the area of automated workflows. Customer support is a crucial part of making our products easier to use. We continue to grow and refine our wealth of on-demand, self-service resources to help customers more quickly receive and access customer support when needed. One area of recent focus is evolving our chat support request intake strategy from ticket-based to live interactions. This allows us to resolve simple issues in the moment, which reserves the follow-up queue for more advanced issues that require research and troubleshooting. This capability is designed to decrease our response times and improve customer sentiment. As we head into the second half of 2022 and beyond, I'm grateful for our employees' dedication to serving our customers' evolving needs. We are committed to creating a diverse, inclusive, feedback from our own people in summary in addition to moving up market with differentiated solutions such as that polio stack we continue to invest in developing innovative ways to streamline customer workflows like e-check for renter security deposits and additional automation of bank statements and renter's insurance these are the types of strategies that have resulted in our revenue growth and more than 1 million year-over-year unit increase This is what has propelled the Appolio team and our growth through constantly changing economic conditions. I will now turn the call over to Becien for more detail on Appolio's second quarter financial results.