AppFolio, Inc.

Good afternoon. Thank you for standing by and welcome to AppFolio Inc.' 's first quarter 2026 financial results conference call. Please be advised, today's conference is being recorded and a replay will be available on AppFolio's investor relations website. I would now like to hand the conference over to Lori Barker, investor relations. Thank you, Operator.

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 first quarter 2026 financial results. With me on the call today are Shane Trigg, AppFolio's President and CEO, and Tim Eaton, AppFolio's CFO. This call is simultaneously being webcast on the Investor Relations section of our website at appfolioinc.com. Additionally, an audio replay of the call and a transcript of the prepared comments will be posted to the website. 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, business performance, 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 reason, including those listed on our SEC filings. Abfolio assumes no obligation to update any such forward-looking statements except as required by law. For greater detail about risks and uncertainties, please see our SEC filings, including our Form 10-K for the fiscal year ended December 31, 2025, which was filed with the SEC on February 5, 2026. In addition, this call includes non-GAAP financial measures. Reconciliation of these non-GAAP financial measures and the most directly comparable GAAP measures are included in our first quarter earnings release posted on the investor relations section of our website. With that, I'll turn the call over to Shane Trigg. Shane, please go ahead.

Thanks, Lori, and welcome to everyone joining us today. AppFolio is off to a strong start in 2026. First quarter revenue reached $262 million, a 20% year-over-year increase, and up from the 16% year-over-year increase we delivered in Q1 2025. Non-GAAP operating income grew 36% and was 27.3% of revenue, and GAAP operating income increased 50% and was 19.4% of revenue. We had the best first quarter in company history for residential new business unit acquisition. And units on platform grew to 9.5 million in line with our expectations in typical seasonality. This is an exciting time for our business and our industry. AI is powerful, and we're putting it to work across every dimension of our business, accelerating performance for our customers while driving greater efficiency across our own operations. At our annual future conference last year, we introduced real estate performance management, what we call RPM, a new way of thinking about value creation in real estate. RPM represents a fundamental shift from reactive, task-oriented property management to a holistic practice of delivering value across the entire real estate ecosystem. Residents that love where they live, investors that see consistent, strong returns, property management businesses that grow, serving communities that thrive. Achieving that requires a performance platform that provides the harness for intelligent AI orchestration in real estate with an AI-native architecture of three interconnected systems, a system of record, a system of action, and a system of growth, all accessible through one unified experience. There's a unique advantage in operating a mission-critical platform in a vertical market sitting at the center of how our customers operate their business. Compliance is embedded in how our platform works, not layered on after the fact, and the domain knowledge we've encoded across residential real estate is sharpened by tens of thousands of customers. Our RELMEX performers are fully operational AI agents built directly into the platform, taking ownership of entire workflows and doing the work with and for our customers. And by reimagining the resident experience with the services renters demand, we turn Appfolio from a cost center into a growth driver, one whose value deepens with every customer we serve. The RPM discipline we've introduced and the performance platform we've built are redefining what it means to win in real estate. It's gratifying to see the market embracing RPM and our customers turning it into daily practice. Dan Rubenstein puts it well. He's the CEO of Hampton Management Associates, a 3,000-unit Bay Area property management company that this quarter signed a three-year renewal on our max plan. I quote, AppFolio is attacking the friction in our business by consolidating our tech stack into a single platform. By integrating RealmX performers to automate core workflows, we've transitioned our team from manual administrative tasks to high-value resident engagement. Partnering with AppFolio allows us to spend less time on system maintenance and compliance and reallocate resources towards scaling. It provides one source of truth where everything is simplified. so we can stop reinventing the wheel and get back to the business of bettering our properties, end quote. Dan's experience reflects the type of customer outcomes we pursue through the pillars of our company strategy. Our first strategic pillar is differentiate to win, starting with our system of action. Our AI strategy is producing measurable commercial outcomes at scale. More than 99%, of our nearly 23,000 customers are now using some form of our AI-powered realm suite. AI actions are up 7x year-over-year, and performer adoption has grown almost 500% quarter-over-quarter. The business intelligence group has recognized this momentum, naming AppFolio a 2026 Artificial Intelligence Excellence Award winner in the agentic AI category. Maintenance Performer is a good example since it tackles a workflow that's universal in property management. Resident issues don't stop at 5 p.m., and neither does AppFolio. Over half of all work orders are submitted after hours, and RealmX Maintenance Performer is there to respond to residents in an average of six seconds, triaging and troubleshooting the issue and automatically creating a work order when needed. This quarter, we enhanced the maintenance performer with new vendor follow-up capabilities. It now proactively contacts vendors, monitors open work orders, confirms completions, and logs every interaction automatically. Turning to our system of record, AppFolio Stack is deepening what customers can do directly within AppFolio while continuously expanding the categories it covers, most recently adding cloud communications through Simple VoIP. We've surpassed 5 million units connected on stack, creating a powerful network whose value grows with every connection. The depth of these integrations is what sets them apart. Through our partnership with Avid Exchange, Plus and Max customers can now manage their entire accounts payable life cycle, bill payment, real-time status tracking, reconciliation, and fraud protection directly within AppFolio. This isn't just a data handoff between systems. It's the full workflow inside our platform. In our system of growth, we start with one conviction. The resident is at the center of the real estate ecosystem. When they thrive, so does everyone in the industry. And the data is clear on what that means for business performance. Our national study of more than 3,000 renters confirms that a modern resident experience is a strong driver of satisfaction. The research shows satisfied residents are 72% more likely to renew and 34% less likely to plan a move directly impacting NOI and property performance. But we're measuring something deeper than satisfaction, the impact on the daily lives of renters. Residents on our platform with access to resident services score 14% higher on the Cantrell ladder for life satisfaction. The highest leverage moment to deliver that value is at move-in. It sets the tone for the entire resident journey. It is where offering easy access to the right services becomes a differentiator for property managers. Resident onboarding lift transforms that moment. Rather than a checklist of manual tasks, move-in becomes a streamlined, transparent, digital experience covering renter's insurance, utility setup, and other essential services. The result is a 95% attach rate at move-in compared to 64% without it, and more renters with insurance coverage that protects their personal property. Our recent addition of group rate internet to resident onboarding lift gives residents convenient, affordable connectivity from the moment they move in. In the same rate of research I mentioned a moment ago, 97% of group rate internet users say it saves them money and improves their financial well-being. Brad Randall, the president of Welsh Randall, a nearly 6,000 unit AppFolio customer headquartered in Ogden, Utah, explains it this way, and I quote, residents complete the entire movement on their phone. It walks them through each step clearly. so they understand exactly what they're signing up for and why. The result is faster lease execution, fewer questions, and residents who feel confident and set up for success from day one, end quote. Our second strategic pillar is deliver performance efficiently. Let's start with how we're delivering for our customers. As the industry shifts towards RPM, ambitious operators are choosing Appfolio to drive increased performance. Mandy Management, a New Haven, Connecticut-based operator managing more than 3,000 units, is one of our newest customers. They selected AppFolio to consolidate their disparate systems into one unified platform. By replacing clunky interfaces and manual counting with integrated AI workflows and real-time reporting, they're streamlining everything from maintenance coordination to resident communications to accelerate performance. New customer momentum is one measure of our success. Equally important is the retention and growth we're driving within our own customer base. Since 2017, West Des Moines, Iowa-based Newberry Living has grown its portfolio to 2,300 units on Appfolio. They continue to consolidate new acquisitions under our platform, driven by our high-performance AI tools. Rich overhaul, technology implementation, coordinator at Newberry Living, explains, and I quote, we evaluated a specialized AI leasing solution alongside Romex Leasing Performer and chose AppFolio. What won us over was how much AppFolio already understood about how we operate. Other solutions required us to bring all that context to them. With AppFolio, it was already there. Since deploying Leasing Performer Our inquiry to completed showings conversion rate has increased 20%, and leasing performer is now driving 57% of all completed showings, freeing our on-site team to stay focused on closing high-intent tours, end quote. We're successfully attaching AI products when customers sign, expand, or renew with us, reflecting the growing value they see in our platform and continuing to drive growth for AppFolio. That value is rooted in how AppFolio is built. A unified platform that tightly connects the system of record and the system of action provides the harness for intelligent AI orchestration. Our AI agents operate directly on governed real-time data in transactional workflows, reducing latency, avoiding connector fragility, and improving accuracy and security. AppFolio's AI data architecture gives agentic capabilities native access to the underlying data model and execution layer, enabling more reliable automation, better orchestration, and faster results. The same discipline we bring to our customers' performance, we apply to our own. AI-native engineering is changing how we build. We're compressing the time from concept to deployment, enabling our teams to design, code, test, and refine products with greater speed and precision. That means more value in the hands of our customers faster. This shift is freeing our engineers to pursue the work that compounds long-term platform value, including market and customer opportunities that otherwise may have taken us longer to address. Our growing efficiency is reflected in our financial performance as we reduced R&D as a percentage of revenue year over year, which Tim will speak to shortly. Our third strategic pillar is great people and culture. I'm consistently inspired by our team's ability to innovate at an exceptional pace and make a real difference for our customers. It's their dedication that makes our vision to power the future of real estate a reality. I'm pleased to share that Atfolio has been recertified as a great place to work for 2026. That recognition is a reflection of the people at the heart of this company. AppFoliant to exemplify our values, live the AppFoliant way, and deeply care about our customers. On that note, I'm delighted to announce that Kyle Triplett has been promoted to Chief Product Officer. Many of you know Kyle from his leadership across our product organization, where he's been instrumental in delivering the AppFoliant performance platform and our RealmX AI capabilities. In this expanded role, Kyle will continue to lead our product strategy and design, advancing Appfolio's innovation leadership and ensuring our platform continues to set the standard for our industry. The RPM discipline we've introduced and the performance platform we have built are turning property managers into performance managers. And when they win, everyone in the real estate ecosystem does as well. With that, I will hand it over to Tim to share more about Appfolio's Q1 financial results.